Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 01, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 0-22208 | |
Entity Registrant Name | QCR HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1397595 | |
Entity Address, Address Line One | 3551 7th Street | |
Entity Address, City or Town | Moline | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 61265 | |
City Area Code | 309 | |
Local Phone Number | 736-3580 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | QCRH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 15,769,161 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000906465 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 55,598 | $ 61,329 |
Federal funds sold | 1,340 | 9,080 |
Interest-bearing deposits at financial institutions | 87,440 | 86,596 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 473,159 | 476,165 |
Securities available for sale, at fair value | 337,286 | 361,966 |
Total securities | 810,445 | 838,131 |
Loans receivable held for sale | 4,459 | 3,758 |
Loans/leases receivable held for investment | 4,413,246 | 4,247,371 |
Gross loans/leases receivable | 4,417,705 | 4,251,129 |
Less allowance for credit losses | (78,894) | (84,376) |
Net loans/leases receivable | 4,338,811 | 4,166,753 |
Bank-owned life insurance | 61,509 | 60,586 |
Premises and equipment, net | 74,765 | 72,693 |
Restricted investment securities | 20,337 | 18,103 |
Other real estate owned, net | 1,820 | 20 |
Goodwill | 74,066 | 74,066 |
Intangibles | 10,365 | 11,381 |
Derivatives | 193,395 | 222,757 |
Other assets | 75,274 | 61,302 |
Total assets | 5,805,165 | 5,682,797 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,258,885 | 1,145,378 |
Interest-bearing | 3,430,050 | 3,453,759 |
Total deposits | 4,688,935 | 4,599,137 |
Short-term borrowings | 7,070 | 5,430 |
Federal Home Loan Bank advances | 40,000 | 15,000 |
Subordinated notes | 113,771 | 118,691 |
Junior subordinated debentures | 38,067 | 37,993 |
Derivatives | 196,092 | 229,270 |
Other liabilities | 90,754 | 83,483 |
Total liabilities | 5,174,689 | 5,089,004 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 June 2021 and December 2020 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 June 2021 - 15,763,522 shares issued and outstanding December 2020 - 15,805,711 shares issued and outstanding | 15,764 | 15,806 |
Additional paid-in capital | 275,485 | 275,807 |
Retained earnings | 335,424 | 300,804 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | 8,244 | 9,008 |
Derivatives | (4,441) | (7,632) |
Total stockholders' equity | 630,476 | 593,793 |
Total liabilities and stockholders' equity | $ 5,805,165 | $ 5,682,797 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 15,763,522 | 15,805,711 |
Common stock, outstanding (in shares) | 15,763,522 | 15,805,711 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income: | ||||
Loans/leases, including fees | $ 42,448 | $ 42,614 | $ 83,781 | $ 85,774 |
Securities: | ||||
Taxable | 2,132 | 2,048 | 4,174 | 3,775 |
Nontaxable | 4,052 | 3,565 | 7,986 | 7,024 |
Interest-bearing deposits at financial institutions | 34 | 134 | 71 | 495 |
Restricted investment securities | 237 | 288 | 456 | 546 |
Federal funds sold | 1 | 18 | ||
Total interest and dividend income | 48,903 | 48,650 | 96,468 | 97,632 |
Interest expense: | ||||
Deposits | 3,235 | 5,766 | 6,662 | 14,972 |
Short-term borrowings | 2 | 22 | 3 | 86 |
Federal Home Loan Bank advances | 16 | 347 | 25 | 796 |
Subordinated notes | 1,570 | 994 | 3,164 | 1,988 |
Junior subordinated debentures | 564 | 573 | 1,123 | 1,144 |
Total interest expense | 5,387 | 7,702 | 10,977 | 18,986 |
Net interest income | 43,516 | 40,948 | 85,491 | 78,646 |
Provision for credit losses | 19,915 | 6,713 | 28,282 | |
Net interest income after provision for loan/lease losses | 43,516 | 21,033 | 78,778 | 50,364 |
Noninterest income: | ||||
Revenue | 68,199 | 77,276 | 139,253 | 141,454 |
Gains on sales of residential real estate loans, net | 1,184 | 1,196 | 2,521 | 1,848 |
Swap fee income/capitals markets revenue | 9,568 | 19,927 | 23,125 | 26,731 |
Securities gains (losses), net | (88) | 65 | (88) | 65 |
Earnings on bank-owned life insurance | 451 | 612 | 922 | 941 |
Other | 1,449 | 941 | 3,135 | 1,863 |
Total noninterest income | 19,296 | 28,626 | 42,785 | 43,822 |
Noninterest expenses: | ||||
Salaries and employee benefits | 23,044 | 21,304 | 47,891 | 39,823 |
Occupancy and equipment expense | 3,965 | 3,748 | 8,073 | 7,780 |
Professional and data processing fees | 3,702 | 3,646 | 7,145 | 7,015 |
Post-acquisition compensation, transition and integration costs | 70 | 221 | ||
Disposition costs | (83) | 8 | 434 | |
FDIC insurance, other insurance and regulatory fees | 986 | 908 | 2,051 | 1,591 |
Loan/lease expense | 457 | 339 | 757 | 567 |
Net income from and gains/losses on operations of other real estate | (113) | (332) | (74) | (319) |
Advertising and marketing | 853 | 552 | 1,480 | 1,234 |
Bank service charges | 572 | 501 | 1,095 | 1,005 |
Losses on liability extinguishment | 429 | 576 | ||
Correspondent banking expense | 198 | 212 | 398 | 428 |
Intangibles amortization | 508 | 548 | 1,016 | 1,097 |
Goodwill impairment | 500 | |||
Other | 1,503 | 1,280 | 3,063 | 2,585 |
Total noninterest expenses | 35,675 | 33,122 | 72,903 | 64,537 |
Net income before income taxes | 27,137 | 16,537 | 48,660 | 29,649 |
Federal and state income tax expense | 4,788 | 2,798 | 8,329 | 4,682 |
Net income | $ 22,349 | $ 13,739 | $ 40,331 | $ 24,967 |
Basic earnings per common share | $ 1.41 | $ 0.87 | $ 2.55 | $ 1.58 |
Diluted earnings per common share | $ 1.39 | $ 0.86 | $ 2.52 | $ 1.56 |
Weighted average common shares outstanding | 15,813,932 | 15,747,056 | 15,808,788 | 15,771,926 |
Weighted average common and common equivalent shares outstanding | 16,045,239 | 15,895,336 | 16,035,394 | 15,956,958 |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Trust department fees | ||||
Noninterest income: | ||||
Revenue | $ 2,848 | $ 2,227 | $ 5,649 | $ 4,539 |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 1,039 | 1,399 | 1,979 | 3,126 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 1,492 | 1,286 | 2,900 | 2,763 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 1,084 | 775 | 2,059 | 1,533 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 269 | $ 198 | $ 583 | $ 413 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22,349 | $ 13,739 | $ 40,331 | $ 24,967 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during the period before tax | 4,663 | 5,336 | (1,096) | 7,817 |
Less reclassification adjustment for gains (losses) included in net income before tax | (88) | 65 | (88) | 65 |
Unrealized gains (losses) on securities available for sale | 4,751 | 5,271 | (1,008) | 7,752 |
Unrealized holding gains (losses) arising during the period before tax | 492 | (654) | 3,725 | (7,815) |
Less reclassification adjustment for caplet amortization before tax | (163) | (124) | (314) | (234) |
Unrealized gains (losses) on derivatives | 655 | (530) | 4,039 | (7,581) |
Other comprehensive income, before tax | 5,406 | 4,741 | 3,031 | 171 |
Tax expense | 1,227 | 1,119 | 603 | 240 |
Other comprehensive income (loss), net of tax | 4,179 | 3,622 | 2,428 | (69) |
Comprehensive income | $ 26,528 | $ 17,361 | $ 42,759 | $ 24,898 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2019 | $ 15,828 | $ 274,785 | $ 245,836 | $ (1,098) | $ 535,351 |
Net income | 11,228 | 11,228 | |||
Other comprehensive income (loss), net of tax | (3,691) | (3,691) | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (101) | (1,844) | (1,835) | (3,780) | |
Common cash dividends declared | (942) | (942) | |||
Stock-based compensation expense | 641 | 641 | |||
Issuance of common stock under employee benefit plans | 47 | 285 | 332 | ||
Balance at Mar. 31, 2020 | 15,774 | 273,867 | 254,287 | (4,789) | 539,139 |
Balance at Dec. 31, 2019 | 15,828 | 274,785 | 245,836 | (1,098) | 535,351 |
Net income | 24,967 | ||||
Other comprehensive income (loss), net of tax | (69) | ||||
Balance at Jun. 30, 2020 | 15,791 | 274,315 | 267,081 | (1,167) | 556,020 |
Balance at Mar. 31, 2020 | 15,774 | 273,867 | 254,287 | (4,789) | 539,139 |
Net income | 13,739 | 13,739 | |||
Other comprehensive income (loss), net of tax | 3,622 | 3,622 | |||
Common cash dividends declared | (945) | (945) | |||
Stock-based compensation expense | 423 | 423 | |||
Issuance of common stock under employee benefit plans | 17 | 25 | 42 | ||
Balance at Jun. 30, 2020 | 15,791 | 274,315 | 267,081 | (1,167) | 556,020 |
Impact of adoption of ASU 2016-13 | 300,804 | ||||
Balance at Dec. 31, 2020 | 15,806 | 275,807 | 300,804 | 1,376 | 593,793 |
Net income | 17,982 | 17,982 | |||
Other comprehensive income (loss), net of tax | (1,751) | (1,751) | |||
Common cash dividends declared | (949) | (949) | |||
Stock-based compensation expense | 841 | 841 | |||
Issuance of common stock under employee benefit plans | (38) | 298 | 260 | ||
Balance at Mar. 31, 2021 | 15,844 | 276,350 | 316,900 | (375) | 608,719 |
Balance at Dec. 31, 2020 | 15,806 | 275,807 | 300,804 | 1,376 | 593,793 |
Net income | 40,331 | ||||
Other comprehensive income (loss), net of tax | 2,428 | ||||
Balance at Jun. 30, 2021 | 15,764 | 275,485 | 335,424 | 3,803 | 630,476 |
Impact of adoption of ASU 2016-13 | Accounting Standards Update 2016-13 | 937 | 937 | |||
Balance at Mar. 31, 2021 | 15,844 | 276,350 | 316,900 | (375) | 608,719 |
Net income | 22,349 | 22,349 | |||
Other comprehensive income (loss), net of tax | 4,179 | 4,179 | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (100) | (1,826) | (2,874) | (4,800) | |
Common cash dividends declared | (951) | (951) | |||
Stock-based compensation expense | 520 | 520 | |||
Issuance of common stock under employee benefit plans | 20 | 440 | 460 | ||
Balance at Jun. 30, 2021 | $ 15,764 | $ 275,485 | $ 335,424 | $ 3,803 | 630,476 |
Impact of adoption of ASU 2016-13 | $ 335,424 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | ||
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 100,000 | 100,932 | ||
Common Stock [Member] | ||||
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 40,331 | $ 24,967 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,701 | 2,690 |
Provision for credit losses | 6,713 | 28,282 |
Stock-based compensation expense | 1,361 | 1,064 |
Deferred compensation expense accrued | 2,302 | 1,705 |
Gains on other real estate owned, net | (389) | (369) |
Amortization of premiums on securities, net | 1,092 | 557 |
Caplet amortization | 314 | 234 |
Mark to market gains on unhedged derivatives, net | (91) | |
Securities (gains) losses, net | 88 | (65) |
Loans originated for sale | (115,649) | (98,837) |
Proceeds on sales of loans | 117,469 | 96,031 |
Gains on sales of residential real estate loans | (2,521) | (1,848) |
Loss on liability extinguishment, net | 576 | |
Gains on sales of premises and equipment | (22) | (8) |
Amortization of intangibles | 1,016 | 1,097 |
Accretion of acquisition fair value adjustments, net | (795) | (1,361) |
Increase in cash value of bank-owned life insurance | (922) | (941) |
Goodwill impairment | 500 | |
Increase in other assets | (14,322) | (2,255) |
Decrease in other liabilities | (5,941) | (12,729) |
Net cash provided by operating activities | 32,735 | 39,290 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net decrease in federal funds sold | 7,740 | 7,675 |
Net decrease (increase) in interest-bearing deposits at financial institutions | (844) | 7,116 |
Proceeds from sales of other real estate owned | 1,407 | 4,341 |
Activity in securities portfolio: | ||
Purchases | (108,565) | (166,743) |
Calls, maturities and redemptions | 70,539 | 11,946 |
Paydowns | 40,395 | 22,541 |
Sales | 23,874 | 4,592 |
Activity in restricted investment securities: | ||
Purchases | (2,280) | (4,274) |
Redemptions | 46 | 4,317 |
Net increase in loans/leases originated and held for investment | (170,969) | (447,385) |
Purchase of premises and equipment | (4,773) | (1,828) |
Proceeds from sales of premises and equipment | 22 | 88 |
Net cash used in investing activities | (143,408) | (557,614) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposit accounts | 89,798 | 408,849 |
Net increase in short-term borrowings | 1,640 | 111,395 |
Activity in Federal Home Loan Bank advances: | ||
Term advances | 85,000 | |
Calls and maturities | (40,000) | |
Net change in short-term and overnight advances | 25,000 | (59,300) |
Activity in other borrowings: | ||
Prepayments on brokered and public time deposits | 29,359 | |
Prepayments of subordinated notes | (5,000) | |
Payment of cash dividends on common stock | (1,896) | (1,884) |
Proceeds from issuance of common stock, net | 200 | 1,008 |
Repurchase and cancellation of shares | (4,800) | (3,780) |
Net cash provided by financing activities | 104,942 | 530,647 |
Net increase (decrease) in cash and due from banks | (5,731) | 12,323 |
Cash and due from banks, beginning | 61,329 | 76,254 |
Cash and due from banks, ending | 55,598 | 88,577 |
Supplemental disclosure of cash flow information, cash payments for: | ||
Interest | 12,257 | 19,377 |
Income/franchise taxes | 21,310 | (1,099) |
Supplemental schedule of noncash investing activities: | ||
Change in accumulated other comprehensive income, unrealized gains (losses) on securities available for sale and derivative instruments, net | 2,427 | (69) |
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (636) | |
Transfers of loans to other real estate owned | 2,812 | |
Due to broker for purchases of securities | 1,000 | 4,338 |
Due from broker for sales of securities | 1,735 | |
Increase (decrease) in the fair value of back-to-back interest rate swap assets and liabilities | (31,297) | 140,048 |
Dividends payable | $ 951 | $ 945 |
NOTE 1 - SUMMARY OF SIGNIFICANT
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report. ACL: Allowance for credit losses Allowance: Allowance for credit losses GAAP: Generally Accepted Accounting Principles HTM: Held to maturity AOCI: Accumulated other comprehensive income (loss) LIBOR: London Inter-Bank Offered Rate AFS: Available for sale LRP: Loan Relief Program ASC: Accounting Standards Codification m2: m2 Equipment Finance, LLC ASU: Accounting Standards Update MSELF: Main Street Expanded Loan Facility Bates Companies: Bates Financial Advisors, Inc., Bates MSNLF: Main Street New Loan Facility Financial Services, Inc., Bates Securities, Inc. and NIM: Net interest margin Bates Financial Group, Inc. NPA: Nonperforming asset BOLI: Bank-owned life insurance NPL: Nonperforming loan Caps: Interest rate cap derivatives OBS: Off-balance sheet CARES Act: Coronavirus Aid, Relief and Economy OREO: Other real estate owned Security Act OTTI: Other-than-temporary impairment CECL: Current Expected Credit Losses PCAOB: Public Company Accounting Oversight Board Community National: Community National Bancorporation PCD: Purchased credit deteriorated loan COVID-19: Coronavirus Disease 2019 PCI: Purchased credit impaired CRBT: Cedar Rapids Bank & Trust Company PPP: Paycheck Protection Program CRE: Commercial real estate Provision: Provision for credit losses CSB: Community State Bank QCBT: Quad City Bank & Trust Company C&I: Commercial and industrial RB&T: Rockford Bank & Trust Company EPS: Earnings per share ROAA: Return on average assets Exchange Act: Securities Exchange Act of 1934, as SBA: U.S. Small Business Administration amended SEC: Securities and Exchange Commission FASB: Financial Accounting Standards Board SFCB: Springfield First Community Bank FDIC: Federal Deposit Insurance Corporation Springfield Bancshares: Springfield Bancshares, Inc. Federal Reserve: Board of Governors of the Federal TA: Tangible assets Reserve System TCE: Tangible common equity FHLB: Federal Home Loan Bank TDRs: Troubled debt restructurings FRB: Federal Reserve Bank of Chicago TEY: Tax equivalent yield The Company: QCR Holdings, Inc. The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and SFCB. All are state-chartered commercial banks and all are members of the Federal Reserve system. The Company engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation. Recent accounting developments Financial Instruments – Credit Losses (Topic 326) On March 27, 2020, the CARES Act, a stimulus package designed in response to the economic disruption created by COVID-19, was signed into law. The CARES Act includes provisions that, if elected, temporarily delay the required implementation date of ASU 2016-13. Section 4014 of the CARES Act stipulates that no insured depository institution, bank holding company, or affiliate would be required to comply with ASU 2016-13, beginning on the date of CARES Act’s enactment and continuing until the earlier of: (1) the date on which the national emergency related to the COVID-19 outbreak is terminated or (2) December 31, 2020. On December 27, 2020, former President Trump signed the Consolidated Appropriations Act, which extended this relief to the earlier of the first day of the Company’s fiscal year after the date the national emergency terminates or January 1, 2022. Based upon guidance from regulators, it was determined the Company could adopt ASU 2016-13 on January 1, 2021, and the Company did adopt on January 1, 2021. The Company has developed a CECL allowance model which calculates allowances over the life of a loan and is largely driven by portfolio characteristics, risk-grading, economic outlook, and other key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given the default framework. The Company utilizes economic and other forecasts over a reasonable and supportable forecast period and then fully reverts back to average historical losses. Results for reporting periods beginning after December 31, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP, which includes a change in terminology from “Allowance for estimated losses on loans/leases” to “Allowance for credit losses.” The Company adopted the standard using a modified retrospective approach and recorded an after tax decrease to retained earnings of $937 thousand as of January 1, 2021 due to the adoption of ASU 2016-13. This transition adjustment included an $8.1 million decrease in the allowance related to loans and leases, established an ACL on held to maturity debt securities of $183 thousand and established an ACL on OBS credit exposures of $9.1 million. The company did not record an ACL on available for sale securities upon adoption of ASU 2016-13. The Company elected to not measure an ACL on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. The Company elected not to include accrued interest within the presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the financial statements and notes included on the following pages of this Form 10-Q. The Company elected not to utilize the regulatory transition relief issued by federal regulatory authorities in the first quarter of 2020, which allowed banking institutions to delay the impact of CECL on regulatory capital, because the impact on the capital ratios of the Company and its subsidiary banks was not significant. The following table illustrates the impact of ASU 2016-13 as of January 1, 2021: As Reported Pre- Impact of Under ASU 2016-13 ASU 2016-13 ASU 2016-13 Adoption Adoption Assets: Allowance for credit losses HTM securities $ 183 $ — $ 183 Loans*: C&I — 35,421 (35,421) C&I - revolving 2,982 — 2,982 C&I - other 29,130 — 29,130 CRE — 42,161 (42,161) CRE - owner occupied 8,696 — 8,696 CRE - non owner occupied 11,428 — 11,428 Construction & Land Development 11,999 — 11,999 Multi-family 5,836 — 5,836 Direct financing leases — 1,764 (1,764) 1-4 family real estate 5,042 — 5,042 Residential real estate — 3,732 (3,732) Consumer 1,161 1,298 (137) Allowance for credit losses on loans 76,274 84,376 (8,102) Liabilities: Allowance for credit losses on OBS credit exposures 9,117 — 9,117 * Loan segmentation under ASU 2016-13 follows different methodology where that segmentation is collateral driven, causing certain segments to contain commercial and non-commercial borrowers, whereas pre-ASU 2016-13 segments were borrower driven. Further discussion contained in this quarterly report regarding the loan and lease portfolio as well as ACL on HTM securities and OBS exposures is only relevant for the year 2021 and forward. Discission in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 is still applicable for years prior to 2021. Loans receivable, held for sale Loans receivable, held for investment The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company discloses the ACL (also known as the allowance) by portfolio segment, and credit quality information, nonaccrual status, and past due status by class of financing receivable. A portfolio segment is the level at which the Company develops and documents a systematic methodology to determine its ACL. A class of financing receivable is a further disaggregation of a portfolio segment based on risk characteristics and the Company’s method for monitoring and assessing credit risk. See the following information and Note 3. The Company’s portfolio segments and class of loans receivable are as follows: ● C&I – revolving ● C&I – other ● CRE – owner occupied ● CRE – non-owner occupied ● Construction and land development ● Multi-family ● 1-4 family real estate ● Consumer The Company’s classes of loans receivable are as follows: ● C&I – revolving ● C&I – other ● CRE – owner occupied ● CRE – non-owner occupied ● Construction and land development ● Multi-family ● Direct financing leases ● 1-4 family real estate ● Consumer Direct financing leases are considered a class of financing receivable within the overall loan/lease portfolio and are included in the C&I other loan segments for ACL. The accounting policies for direct financing leases are disclosed below. Generally, for all classes of loans receivable, loans are considered past due when contractual payments are delinquent for 31 days or greater. For all classes of loans receivable, loans will generally be placed on nonaccrual status when the loan has become 90 days past due (unless the loan is well secured and in the process of collection); or if any of the following conditions exist: ● It becomes evident that the borrower will not make payments, or will not or cannot meet the terms for renewal of a matured loan; ● When full repayment of principal and interest is not expected; ● When the loan is graded “doubtful”; ● When the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future; or ● When foreclosure action is initiated. When a loan is placed on nonaccrual status, income recognition is ceased. Previously recorded but uncollected amounts of interest on nonaccrual loans are reversed at the time the loan is placed on nonaccrual status. Generally, cash collected on nonaccrual loans is applied to principal. Should full collection of principal be expected, cash collected on nonaccrual loans can be recognized as interest income. For all classes of loans receivable, nonaccrual loans may be restored to accrual status provided the following criteria are met: ● The loan is current, and all principal and interest amounts contractually due have been made; ● All principal and interest amounts contractually due, including past due payments, are reasonably assured of repayment within a reasonable period; and ● There is a period of minimum repayment performance, as follows, by the borrower in accordance with contractual terms: o Six months of repayment performance for contractual monthly payments, or o One year of repayment performance for contractual quarterly or semi-annual payments. Direct finance leases receivable, held for investment recorded as lease receivables when the lease is signed and the lease property delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at the lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s estimates are reviewed continuously to ensure reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other-than temporary. If the decline in estimated unguaranteed residual value is judged to be other-than-temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and nonaccrual for direct financing leases are materially consistent with those described above for all classes of loan receivables. TDRs The following criteria, related to granting a concession, together or separately, create a TDR: ● A modification of terms of a debt such as one or a combination of: o The reduction of the stated interest rate to a rate lower than the current market rate for new debt with similar risk. o The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. o The reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. o The reduction of accrued interest. ● A transfer from the borrower/lessee to the Company of receivables from third parties, real estate, other assets, or an equity position in the borrower to fully or partially satisfy a loan. ● The issuance or other granting of an equity position to the Company to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. Allowance Allowance for Credit Losses on Loans and Leases The ACL on loans is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the eight portfolio segments at which the allowance will be measured. For all portfolio segments, the allowance is established as losses are estimated to have occurred through a provision that is charged to earnings. Credit losses on loans and leases, for all portfolio segments, are charged against the allowance when management believes the uncollectibility of a loan/lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company’s methodologies for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions that are expected to exist through the contractual lives of the financial assets and that are reasonable and supportable -- to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company will immediately and fully revert back to average historical losses when it can no longer develop reasonable and supportable forecasts. A discussion of the risk characteristics and the allowance by each loan portfolio segment follows: For C&I loans, both revolving lines of credit and other C&I, the Company focuses on small and mid-sized businesses with primary operations as wholesalers, manufacturers, building contractors, business services companies, other banks, and retailers. The Company provides a wide range of C&I loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of facilities, equipment and other purposes. Approval is generally based on the following factors: ● Ability and stability of current management of the borrower; ● Stable earnings with positive financial trends; ● Sufficient cash flow to support debt repayment; ● Earnings projections based on reasonable assumptions; ● Financial strength of the industry and business; and ● Value and marketability of collateral. Collateral for C&I loans generally includes accounts receivable, inventory, equipment and real estate. The Company’s lending policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans must exceed the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash. The Company’s lending policy specifies maximum term limits for C&I loans. For term loans, the maximum term is generally 7 years with average terms ranging from 3 In addition, the Company often takes personal guarantees or cosigners to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower. CRE is segmented into the following categories generally based on source of repayment: Owner occupied CRE, non-owner occupied CRE and multi-family. CRE loans are also embedded in the following segments: construction and land development and 1-4 family real estate. CRE loans are subject to underwriting standards and processes similar to C&I loans, in addition to those standards and processes specific to real estate loans. Collateral for CRE loans generally includes the underlying real estate and improvements, and may include additional assets of the borrower. The Company’s lending policy specifies maximum loan-to-value limits based on the category of CRE (CRE loans on improved property, raw land, land development, and commercial construction). These limits are the same limits established by regulatory authorities. Multi-family loans provide a source of repayment from rental income. The Company’s lending policy also includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. In addition, the Company often takes personal guarantees to help assure repayment. Construction loans include any loans to finance the construction of any new residential property, CRE property or major rehabilitation or expansion of existing commercial structures. Construction lending carries a high degree of risk because of the difficulty of protecting the bank against a myriad of pitfalls. The following factors are evaluated when underwriting these types of loans: ● Borrowers/contractors experience and ability is analyzed with the type and size of project being considered. ● Financial ability to cover cost overruns. ● Reliability and thoroughness of cost projections and reasonable assurance that significant provisions are made for contingencies for soft costs especially interest and operating deficits. ● Reliability of the estimate of time to complete the project. The land development portfolio also includes other land loans such as raw land. The raw land component involves considerable risk to the bank and is reserved for the Bank’s most credit worthy borrowers. Land development loans are typically only made to experienced local developers with successful track records. For all loans the allowance consists of pooled and individually analyzed components. Pooled loan allowances consist of quantitative and qualitative factors and cover loan classes that share similar risk characteristics with other assets in the segmented pool. Quantitative Factors: The quantitative factors are based on the probability of default and loss given default derived from historical net charge-off experience, repayment activity and default, remaining life, and current economic conditions as well as economic outlook. Qualitative Factors: The Company’s allowance methodology also has a qualitative component, the purpose of which is to provide management with a means to take into consideration changes in current conditions that could potentially have an effect, up or down, on the level of recognized loan losses, that, for whatever reason, fail to show up in the quantitative analysis performed in determining its base loan loss rates. The Company utilizes the following qualitative factors: ● National and local economy ● Loan volume and trend ● Loan quality ● Loan policies and procedures ● Management and staff experience ● Concentrations ● Collateral ● Loan review system ● Regulatory environment and oversight The qualitative adjustments are based on the current condition and applied as a percentage adjustment in addition to the calculated historical loss rates. The adjustment amount can be either positive or negative depending whether or not the current condition is better or worse than the historical average. These adjustments reflect the extent to which the Company expects current conditions to differ from the conditions that existed for the period over which historical information was evaluated. Economic Forecasting: The Company uses reasonable and supportable forecasts over the contractual term of the financial assets for each entity. This measurement is based upon relevant past events, historical experience and current conditions to determine the forecasted data which requires significant judgement. When management no longer has sufficient information to make a reasonable and supportable forecast, the data will then immediately revert back to the average historical performance for each entity. It is expected that actual economic conditions will, in many circumstances, turn out differently than forecasted because the ultimate outcomes during the forecast period may be affected by events that were unforeseen, such as economic disruption and fiscal or monetary policy actions, which are exacerbated by longer forecasting periods. This uncertainty would be relevant to the entity’s confidence level as to the outcomes being forecasted. That is, an entity is likely less confident in the ultimate outcome of events that will occur at the end of the forecast period as compared to the beginning. As a result, actual future economic conditions may not be an effective indicator of the quality of the Company’s forecasting process, including the length of the forecast period. Loans are determined to no longer share similar risk characteristics with other assets in the segmented pool when their scheduled payments of principal and interest according to the contractual terms of the loan agreement, have a greater probability of uncollectibility based on current information and events. Such events include past due status of 90 days or more, non-accrual status or classification of a substandard or doubtful risk rating. Factors considered by management in determining risk rating and non-accrual status include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered low quality. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Allowances for these low quality loans are measured on a case-by-case basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Some loans that are determined to no longer share risk characteristics with other assets in the segmented pool, may be deemed collateral dependent. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When it is determined that foreclosure is probable, the collateral’s fair value is used to estimate the financial assets expected credit losses for the current reporting period. This fair value is then reduced by the present value of estimated costs to sell. If it is determined that the asset is collateral-dependent but foreclosure is not probable, an institution can elect to apply the practical expedient to use the collateral’s fair value to estimate the asset’s expected credit loss. The Company is choosing to utilize the practical expedient. When using the practical expedient on a collateral dependent loan where repayment is reliant upon the sale of the collateral, the fair value of that collateral will be adjusted for estimated costs to sell. However if the repayment is dependent on the operations of the company the fair market value less estimated cost to sell cannot be used. Thus the net present value of the cash-flow will be utilized. For non-homogenous loans, the Company utilizes the following internal risk rating scale: 1. Highest Quality (Pass) – loans of the highest quality with no credit risk, including those fully secured by subsidiary bank certificates of deposit and U.S. government securities. 2. Superior Quality (Pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Satisfactory Quality (Pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including credit quality, earnings, liquidity, capital and cash flow coverage. Management is capable and experienced. Collateral coverage and guarantor support, if applicable, are more than adequate. Includes loans secured by personal assets and business assets, including equipment, accounts receivable, inventory, and real estate. 4. Fair Quality (Pass) – loans with moderate but still acceptable credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management or unproven performance records in relation to peers, or borrowers operating in highly cyclical or declining industries. 5. Early Warning (Pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. 6. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating, therefore, it is generally not assigned to a borrower for a period of more than one year . 7. Substandard – loans which are inadequately protected by the current worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 8. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, on the basis of current facts, conditions and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including principal and interest, applied to principal reduction. For term C&I and CRE loans greater than $1,000,000, a loan review is required within 15 months of the most recent credit review. The review is completed in enough detail to, at a minimum, validate the risk rating. Additionally, the review shall include an analysis of debt service requirements, covenant compliance, if applicable, and collateral adequacy. The frequency of the review is generally accelerated for loans with poor risk ratings. The Company’s Loan Quality area performs a documentation review of a sampling of C&I and CRE loans, the primary purpose of which is to ensure the credit is properly documented and closed in accordance with approval authorities and conditions. A review is also performed by the Company’s Internal Audit Department of a sampling of C&I and CRE loans for proper documentation, according to an approved schedule. Validation of the risk rating is also part of Internal Audit’s review (performed by Internal Loan Review). Additionally, over the past several years, the Company has contracted an independent outside third party to review a sampling of C&I and CRE loans. Validation of the risk rating is part of this review as well. The Company leases machinery and equipment to C&I customers under direct financing leases. All lease requests are subject to the credit requirements and criteria as set forth in the lending/leasing policy. In all cases, a formal independent credit analysis of the lessee is performed. Direct financing leases are included in the C&I – Other segment and allowance is established in the same manner as C&I loans. Generally, the Company’s residential real estate loans conform to the underwriting requirements of Freddie Mac and Fannie Mae to allow the subsidiary banks to resell loans in the secondary market. The subsidiary banks structure most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one The Company provides many types of installment and other consumer loans including motor vehicle, home improvement, home equity, signature loans and small personal credit lines. The Company’s lending policy addresses specific credit guidelines by consumer loan type. For residential real estate loans, and installment and other consumer loans, these large groups of smaller balance homogenous loans follow the same methodology as commercial loans in terms of evaluation of risk characteristics, other than these may not be risk rated due to homogenous nature. TDRs follow the same allowance methodology as described above for all loans. Once a loan is classified as a TDR, it will remain a TDR until the loan is paid off, charged off, moved to OREO or restructured into a new note without a concession. TDR status may also be removed if the TDR was restructured in a prior calendar year, is current, accruing interest and shows sustained performance. Allowance for Credit Losses on Off-Balance Sheet Exposures The Company estimates expected credit losses over the contractual te |
NOTE 2 - INVESTMENT SECURITIES
NOTE 2 - INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
INVESTMENT SECURITIES | NOTE 2– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of June 30, 2021 and December 31, 2020 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) June 30, 2021: Securities HTM: Municipal securities $ 472,283 $ 50,129 $ (20) $ 522,392 Other securities 1,050 — — 1,050 $ 473,333 $ 50,129 $ (20) $ 523,442 Securities AFS: U.S. govt. sponsored agency securities $ 14,310 $ 504 $ (144) $ 14,670 Residential mortgage-backed and related securities 102,625 4,094 (581) 106,138 Municipal securities 163,607 5,861 (148) 169,320 Asset-backed securities 30,707 1,072 — 31,779 Other securities 15,139 250 (10) 15,379 $ 326,388 $ 11,781 $ (883) $ 337,286 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 475,115 $ 45,360 $ (248) $ 520,227 Other securities 1,050 — — 1,050 $ 476,165 $ 45,360 $ (248) $ 521,277 Securities AFS: U.S. govt. sponsored agency securities $ 14,936 $ 447 $ (47) $ 15,336 Residential mortgage-backed and related securities 127,670 5,510 (338) 132,842 Municipal securities 147,241 5,215 (48) 152,408 Asset-backed securities 39,663 1,111 (91) 40,683 Other securities 20,550 147 — 20,697 $ 350,060 $ 12,430 $ (524) $ 361,966 * HTM securities shown on the balance sheet of $473.2 million represents amortized cost of $473.3 million, net of allowance for credit losses of $174 thousand as of June 30, 2021. The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020, are summarized as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2021: Securities HTM: Municipal securities $ 14,440 $ (20) $ — $ — $ 14,440 $ (20) Securities AFS: U.S. govt. sponsored agency securities $ 3,067 $ (144) $ — $ — $ 3,067 $ (144) Residential mortgage-backed and related securities 26,967 (580) 153 (1) 27,120 (581) Municipal securities 13,608 (148) — — 13,608 (148) Other securities 4,207 (10) — — 4,207 (10) $ 47,849 $ (882) $ 153 $ (1) $ 48,002 $ (883) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 8,407 $ (248) $ — $ — $ 8,407 $ (248) Securities AFS: U.S. govt. sponsored agency securities $ 3,199 $ (47) $ — $ — $ 3,199 $ (47) Residential mortgage-backed and related securities 37,549 (338) — — 37,549 (338) Municipal securities 10,110 (48) — — 10,110 (48) Asset-backed securities 6,884 (52) 9,945 (39) 16,829 (91) $ 57,742 $ (485) $ 9,945 $ (39) $ 67,687 $ (524) At June 30, 2021, the investment portfolio included 630 securities. Of this number, 44 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 0.11% of the total amortized cost of the portfolio. Of these 44 securities, there were four securities that had an unrealized loss for twelve months or more. Asset-backed securities are comprised of collateralized loan obligations, which are debt securities backed by pools of senior secured commercial loans to a diverse group of companies across a broad spectrum of industries. At June 30, 2021, the Company only owned collateralized loan obligations that were AAA rated. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company lacks the intent to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. On January 1, 2021, the Company adopted ASU 2016-13, which replaced the legacy GAAP OTTI model with a credit loss model. ASU 2016-13 requires an allowance on lifetime expected credit losses on held to maturity debt securities. The following table presents the activity in the allowance for credit losses for held to maturity securities by major security type for the six months ended June 30, 2021. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Municipal Other Municipal Other securities securities Total securities securities Total Allowance for credit losses: Beginning balance $ 173 $ 1 $ 174 $ — $ — $ — Impact of adopting ASU 2016-13 — — — 182 1 183 Provision for credit loss expense — — — (9) — (9) Balance, ending $ 173 $ 1 $ 174 $ 173 $ 1 $ 174 The credit loss model under ASU 2016-13, applicable to AFS debt securities, requires the recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. See Note 1, “Summary of Significant Accounting Policies” to the consolidated financial statement included in this Form 10-Q, for a discussion of the impact of the adoption of ASU 2016-13. All sales of securities for the three and six months ended June 30, 2021 and June 30, 2020 were securities identified as AFS. Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (dollars in thousands) Proceeds from sales of securities $ 4,334 $ 6,327 $ 23,874 $ 6,327 Gross gains from sales of securities — 134 — 134 Gross losses from sales of securities (88) (69) (88) (69) The amortized cost and fair value of securities as of June 30, 2021 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,882 $ 2,910 Due after one year through five years 29,592 30,281 Due after five years 440,859 490,251 $ 473,333 $ 523,442 Securities AFS: Due in one year or less $ 1,471 $ 1,492 Due after one year through five years 11,927 12,175 Due after five years 179,658 185,702 193,056 199,369 Residential mortgage-backed and related securities 102,625 106,139 Asset-backed securities 30,707 31,778 $ 326,388 $ 337,286 Portions of the U.S. government sponsored agency securities, municipal securities and other securities contain call options, which, at the discretion of the issuer, terminate the security at par and at predetermined dates prior to the stated maturity. These callable securities are summarized as follows: Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 272,039 $ 283,607 Securities AFS: Municipal securities 158,149 163,595 Other securities 15,139 15,379 $ 173,288 $ 178,974 As of June 30, 2021, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 117 issuers with fair values totaling $116.6 million and revenue bonds issued by 175 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $575.1 million. The Company also held investments in general obligation bonds in 21 states, including eight states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 25 states, including 13 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2020, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 117 issuers with fair values totaling $116.7 million and revenue bonds issued by 191 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $555.9 million. The Company also held investments in general obligation bonds in 21 states, including eight Both general obligation and revenue bonds are diversified across many issuers. As of June 30, 2021 and as of December 31, 2020, the Company held revenue bonds of two issuers, located in Ohio, of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. The issuer’s financial condition is strong and the source of repayment is diversified. The Company monitors the investments and concentration closely. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities. The Company's municipal securities are owned by the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of June 30, 2021, all were within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital. As of June 30, 2021, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards. |
NOTE 3 - LOANS_LEASES RECEIVABL
NOTE 3 - LOANS/LEASES RECEIVABLE | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
LOANS/LEASES RECEIVABLE | NOTE 3 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio by classes of loans/leases as of June 30, 2021 and December 31, 2020 is presented as follows: June 30, 2021 (dollars in thousands) C&I: C&I - revolving $ 182,882 C&I - other * 1,505,384 1,688,266 CRE - owner occupied 427,734 CRE - non-owner occupied 618,879 Construction and land development 708,289 Multi-family 466,804 Direct financing leases** 56,153 1-4 family real estate*** 382,142 Consumer 69,438 4,417,705 Allowance for credit losses (78,894) $ 4,338,811 ** Direct financing leases: Net minimum lease payments to be received $ 61,781 Estimated unguaranteed residual values of leased assets 165 Unearned lease/residual income (5,793) 56,153 Plus deferred lease origination costs, net of fees 783 56,936 Less allowance for credit losses (1,976) $ 54,960 December 31, 2020 C&I loans* $ 1,726,723 CRE loans Owner-occupied CRE 496,471 Commercial construction, land development, and other land 541,455 Other non owner-occupied CRE 1,069,703 2,107,629 Direct financing leases ** 66,016 Residential real estate loans *** 252,121 Installment and other consumer loans 91,302 4,243,791 Plus deferred loan/lease origination costs, net of fees 7,338 4,251,129 Less allowance (84,376) $ 4,166,753 ** Direct financing leases: Net minimum lease payments to be received $ 72,940 Estimated unguaranteed residual values of leased assets 239 Unearned lease/residual income (7,163) 66,016 Plus deferred lease origination costs, net of fees 1,072 67,088 Less allowance (1,764) $ 65,324 * Includes equipment financing agreements outstanding at m2, totaling $202.4 million and $171.5 million as of June 30, 2021 and December 31, 2020, respectively and PPP loans totaling $147.5 million and $273.1 million as of June 30, 2021 and December 31, 2020, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. *** Includes residential real estate loans held for sale totaling $4.5 million and $3.8 million as of June 30, 2021 and December 31, 2020, respectively. Changes in accretable yield for acquired loans were as follows: Three months ended June 30, 2021 Six months ended June 30, 2021 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ — $ (2,530) $ (2,530) $ — $ (3,139) $ (3,139) Accretion recognized — 341 341 — 950 950 Balance at the end of the period $ — $ (2,189) $ (2,189) $ — $ (2,189) $ (2,189) Three months ended June 30, 2020 Six months ended June 30, 2020 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (59) $ (5,725) $ (5,784) $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable — — — (30) — (30) Accretion recognized 1 790 791 29 1,443 1,472 Balance at the end of the period $ (58) $ (4,935) $ (4,993) $ (58) $ (4,935) $ (4,993) The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2021 and December 31, 2020 is presented as follows: As of June 30, 2021 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I: C&I - revolving $ 182,882 $ — $ — $ — $ — $ 182,882 C&I - other 1,498,911 1,252 205 57 4,959 1,505,384 CRE - owner occupied 426,603 865 266 — — 427,734 CRE - non-owner occupied 618,483 — 396 — — 618,879 Construction and land development 708,214 — — — 75 708,289 Multi-family 466,804 — — — — 466,804 Direct financing leases 55,779 76 137 — 161 56,153 1-4 family real estate 378,314 228 631 — 2,969 382,142 Consumer 69,320 52 — — 66 69,438 $ 4,405,310 $ 2,473 $ 1,635 $ 57 $ 8,230 $ 4,417,705 As a percentage of total loan/lease portfolio 99.72 % 0.05 % 0.04 % 0.00 % 0.19 % 100.00 % As of December 31, 2020 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,720,058 $ 1,535 $ 323 $ — $ 4,807 $ 1,726,723 CRE Owner-occupied CRE 496,459 — — — 12 496,471 Commercial construction, land development, and other land 541,455 — — — — 541,455 Other non-owner occupied CRE 1,062,215 — — — 7,488 1,069,703 Direct financing leases 64,918 501 191 — 406 66,016 Residential real estate 249,364 1,512 223 — 1,022 252,121 Installment and other consumer 91,047 43 4 3 205 91,302 $ 4,225,516 $ 3,591 $ 741 $ 3 $ 13,940 $ 4,243,791 As a percentage of total loan/lease portfolio 99.57 % 0.08 % 0.02 % 0.00 % 0.33 % 100.00 % NPLs by classes of loans/leases as of June 30, 2021 and December 31, 2020 are presented as follows: As of June 30, 2021 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 57 4,736 223 5,016 60.52 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 75 — 75 0.91 Multi-family — — — — - Direct financing leases — 110 51 161 1.94 1-4 family real estate — 2,969 — 2,969 35.83 Consumer — 66 — 66 0.80 $ 57 $ 7,956 $ 274 $ 8,287 100.00 % The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2021. As of December 31, 2020 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 4,807 $ 606 $ 5,413 36.87 % CRE Owner-occupied CRE — 12 — 12 0.08 % Commercial construction, land development, and other land — — — — - % Other non-owner occupied CRE — 7,488 — 7,488 50.99 % Direct financing leases — 406 135 541 3.68 % Residential real estate — 1,022 — 1,022 6.96 % Installment and other consumer 3 205 — 208 1.42 % $ 3 $ 13,940 $ 741 $ 14,684 100.00 % * Nonaccrual loans/leases included $984 thousand of TDRs, including $836 thousand in CRE loans, $100 thousand in direct financing leases, $48 thousand in installment loans. Changes in the ACL-loans/leases by portfolio segment for the three and six months ended June 30, 2021 and 2020, respectively, are presented as follows: Three Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other* CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,547 $ 33,167 $ — $ 9,147 $ 11,155 $ 12,327 $ 6,278 $ — $ — $ 5,165 $ 1,045 $ 81,831 Provision — (370) (2) — (1,121) (376) 1,313 849 — — (105) (329) (141) Charge-offs — — (998) — — (1,876) — (150) — — (646) (4) (3,674) Recoveries — — 158 — (6) 8 — — — — 511 207 878 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 Six Months Ended June 30, 2021 CRE - CRE - Construction Direct Residential C&I - C&I - Owner Non-Owner and Land Multi Financing Real 1-4 C&I Revolving Other** CRE Occupied Occupied Development Family Leases Estate Family Consumer Total (dollars in thousands) Balance, beginning $ 35,421 $ — $ — $ 42,161 $ — $ — $ — $ — $ 1,764 $ 3,732 $ — $ 1,298 $ 84,376 Adoption of ASU 2016-13 (35,421) 2,982 29,130 (42,161) 8,696 11,428 11,999 5,836 (1,764) (3,732) 5,042 (137) (8,102) Provision — 195 4,547 — (670) (662) 1,641 1,291 — — 56 (546) 5,852 Charge-offs — — (1,666) — — (1,876) — (150) — — (690) (5) (4,387) Recoveries — — 314 — (6) 21 — — — — 517 309 1,155 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 * Included within the C&I – Other column are ACL on leases with a beginning balance of $2.2 million, negative provision of $144 thousand, charge-offs of $130 thousand and recoveries of $58 thousand. ACL on leases was $2.0 million as of June 30, 2021. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $1.8 million, adoption impact of $685 thousand, negative provision of $279 thousand, charge-offs of $328 thousand and recoveries of $134 thousand. ACL on leases was $2.0 million as of June 30, 2021. Three Months Ended June 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 18,151 $ 19,269 $ 1,303 $ 2,313 $ 1,197 $ 42,233 Provision 7,859 10,365 887 697 107 19,915 Charge-offs (340) (511) (595) — (4) (1,450) Recoveries 78 — 44 — 7 129 Balance, ending $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 Six Months Ended June 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions 11,556 14,181 1,281 1,033 231 28,282 Charge-offs (1,979) (511) (1,195) — (100) (3,785) Recoveries 99 74 89 29 38 329 Balance, ending $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 The composition of the ACL-loans/leases by portfolio segment based on evaluation method are as follows: As of June 30, 2021 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I – Revolving $ 2,725 $ 180,157 $ 182,882 $ 189 $ 2,988 $ 3,177 C&I - Other* 40,175 1,521,362 1,561,537 3,762 28,563 32,325 42,900 1,701,519 1,744,419 3,951 31,551 35,502 CRE - owner occupied 5,425 422,309 427,734 283 7,737 8,020 CRE - non-owner occupied 19,879 599,000 618,879 46 8,865 8,911 Construction and Land Development 10,553 697,736 708,289 12 13,628 13,640 Multi-family — 466,804 466,804 — 6,977 6,977 1-4 family real estate 4,683 377,459 382,142 491 4,434 4,925 Consumer 271 69,167 69,438 36 883 919 $ 83,711 $ 4,333,994 $ 4,417,705 $ 4,819 $ 74,075 $ 78,894 * Included within the C&I – Other category are leases individually evaluated of $161 thousand with a related allowance for credit losses of $33 thousand and leases collectively evaluated of $56.0 million with a related allowance for credit losses of $1.9 million. Information for impaired loans/leases prior to adoption of ASU 2016-13 on January 1, 2021, is presented in the tables below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs. Loans/leases, by classes of financing receivable, considered to be impaired as of and for the six months ended June 30, 2020 are presented as follows: Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,978 $ 2,051 $ — $ 1,512 $ 25 $ 25 CRE Owner-occupied CRE 320 577 — 128 — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 965 965 — 742 14 14 Direct financing leases 1,364 1,364 — 1,379 11 11 Residential real estate 624 652 — 474 — — Installment and other consumer 562 562 — 525 — — $ 5,813 $ 6,171 $ — $ 4,760 $ 50 $ 50 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 569 $ 569 $ 341 $ 479 $ — $ — CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 6,530 6,530 1,692 5,329 — — Direct financing leases 55 55 20 59 — — Residential real estate 260 260 23 206 — — Installment and other consumer 78 78 78 67 — — $ 7,492 $ 7,492 $ 2,154 $ 6,140 $ — $ — Total Impaired Loans/Leases: C&I $ 2,547 $ 2,620 $ 341 $ 1,991 $ 25 $ 25 CRE Owner-occupied CRE 320 577 — 128 — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 7,495 7,495 1,692 6,071 14 14 Direct financing leases 1,419 1,419 20 1,438 11 11 Residential real estate 884 912 23 680 — — Installment and other consumer 640 640 78 592 — — $ 13,305 $ 13,663 $ 2,154 $ 10,900 $ 50 $ 50 Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended June 30, 2020 are presented as follows: Three Months Ended June 30, 2020 Interest Income Average Recognized for Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Recognized Received Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,742 $ 13 $ 13 CRE Owner-Occupied CRE 174 — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 978 7 7 Direct Financing Leases 1,411 6 6 Residential Real Estate 524 — — Installment and Other Consumer 550 — — $ 5,379 $ 26 $ 26 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 568 $ — $ — CRE Owner-Occupied CRE — — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 6,560 — — Direct Financing Leases 57 — — Residential Real Estate 220 — — Installment and Other Consumer 70 — — $ 7,475 $ — $ — Total Impaired Loans/Leases: C&I $ 2,310 $ 13 $ 13 CRE Owner-Occupied CRE 174 — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 7,538 7 7 Direct Financing Leases 1,468 6 6 Residential Real Estate 744 — — Installment and Other Consumer 620 — — $ 12,854 $ 26 $ 26 Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2020 are presented as follows: December 31, 2020 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,361 $ 1,441 $ — $ 1,002 $ 33 $ 33 CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 1,133 1,933 — 494 29 29 Direct financing leases 578 578 — 483 17 17 Residential real estate 719 719 — 476 — — Installment and other consumer 133 133 — 121 — — $ 3,924 $ 4,804 $ — $ 2,576 $ 79 $ 79 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 4,020 $ 4,020 $ 650 $ 1,555 $ — $ — CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 6,354 6,354 1,938 5,726 — — Direct financing leases — — — — — — Residential real estate 258 258 20 227 — — Installment and other consumer 72 72 72 70 — — $ 10,704 $ 10,704 $ 2,680 $ 7,578 $ — $ — Total Impaired Loans/Leases: C&I $ 5,381 $ 5,461 $ 650 $ 2,557 $ 33 $ 33 CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 7,487 8,287 1,938 6,220 29 29 Direct financing leases 578 578 — 483 17 17 Residential real estate 977 977 20 703 — — Installment and other consumer 205 205 72 191 — — $ 14,628 $ 15,508 $ 2,680 $ 10,154 $ 79 $ 79 Impaired loans/leases prior to adoption of ASU 2016-13 and those individually evaluated under ASU 2016-13 for which no allowance has been provided have adequate collateral, based on management’s current estimates. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses: As of June 30, 2021 Non Commercial Owner-Occupied Owner Occupied Assets Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - Revolving $ 2,475 $ — $ — $ — $ 250 $ — $ 2,725 C&I - Other* 852 — 2,591 6,224 30,508 — 40,175 3,327 — 2,591 6,224 30,758 — 42,900 CRE - owner occupied — — 5,425 — — — 5,425 CRE - non-owner occupied — 19,879 — — — — 19,879 Construction and Land Development — 10,478 75 — — — 10,553 Multi-family — — — — — — — 1-4 Family Real Estate — 2,532 2,151 — — — 4,683 Consumer — — 248 — — 23 271 $ 3,327 $ 32,889 $ 10,490 $ 6,224 $ 30,758 $ 23 $ 83,711 * Included within the C&I – Other category are leases individually evaluated of $161 thousand with primary collateral of equipment. For certain C&I loans, all CRE loans, certain construction and land development loans, all multifamily loans and certain 1-4 family residential loans, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan. For certain C&I loans (including equipment financing agreements and direct financing leases), certain construction and land development, certain 1-4 family real estate loans, and all consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Prior to adoption of ASU 2016-13, this included C&I equipment financing agreements, direct financing leases, residential real estate loans, and installment and other consumer loans. Delinquency status is updated daily by the Company’s loan system. The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2021: As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 177,045 $ 177,045 Special Mention (Rating 6) — — — — — — 3,112 3,112 Substandard (Rating 7) — — — — — — 2,725 2,725 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 182,882 $ 182,882 C&I - other Pass (Ratings 1 through 5) $ 316,725 $ 437,339 $ 208,611 $ 125,116 $ 117,406 $ 56,478 $ — $ 1,261,675 Special Mention (Rating 6) 146 693 — 69 495 1,259 — 2,662 Substandard (Rating 7) 8,481 6,952 16,690 366 60 6,131 — 38,680 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 325,352 $ 444,984 $ 225,301 $ 125,551 $ 117,961 $ 63,868 $ — $ 1,303,017 CRE - owner occupied Pass (Ratings 1 through 5) $ 65,781 $ 159,219 $ 63,344 $ 32,677 $ 23,452 $ 64,232 $ 10,344 $ 419,049 Special Mention (Rating 6) 901 — 178 244 672 1,266 — 3,261 Substandard (Rating 7) 214 — 1,921 1,261 2,028 — — 5,424 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 66,896 $ 159,219 $ 65,443 $ 34,182 $ 26,152 $ 65,498 $ 10,344 $ 427,734 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 81,897 $ 177,081 $ 91,579 $ 76,121 $ 72,401 $ 51,555 $ 6,570 $ 557,204 Special Mention (Rating 6) 5,019 8,617 1,846 15,288 4,201 5,673 1,151 41,795 Substandard (Rating 7) 419 — 17,000 499 957 — 1,005 19,880 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 87,335 $ 185,698 $ 110,425 $ 91,908 $ 77,559 $ 57,228 $ 8,726 $ 618,879 Construction and land development Pass (Ratings 1 through 5) $ 144,416 $ 231,399 $ 171,796 $ 117,381 $ 7,770 $ 2,613 $ 8,634 $ 684,009 Special Mention (Rating 6) — — — 593 — — — 593 Substandard (Rating 7) — — 10,478 — — — — 10,478 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 144,416 $ 231,399 $ 182,274 $ 117,974 $ 7,770 $ 2,613 $ 8,634 $ 695,080 Multi-family Pass (Ratings 1 through 5) $ 125,743 $ 206,255 $ 66,161 $ 47,105 $ 7,420 $ 11,359 $ 2,761 $ 466,804 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 125,743 $ 206,255 $ 66,161 $ 47,105 $ 7,420 $ 11,359 $ 2,761 $ 466,804 1-4 family real estate Pass (Ratings 1 through 5) $ 27,769 $ 33,721 $ 19,874 $ 12,928 $ 7,333 $ 8,990 $ 6,122 $ 116,737 Special Mention (Rating 6) 38 — — — 152 — — 190 Substandard (Rating 7) 2,532 — — — — — — 2,532 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 30,339 $ 33,721 $ 19,874 $ 12,928 $ 7,485 $ 8,990 $ 6,122 $ 119,459 Total $ 780,081 $ 1,261,276 $ 669,478 $ 429,648 $ 244,347 $ 209,556 $ 219,469 $ 3,813,855 As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 63,299 $ 65,043 $ 43,563 $ 21,207 $ 7,542 $ 751 $ — $ 201,405 Nonperforming 69 290 423 72 85 23 — 962 Total C&I - other $ 63,368 $ 65,333 $ 43,986 $ 21,279 $ 7,627 $ 774 $ — $ 202,367 Direct financing leases Performing $ 4,358 $ 15,240 $ 15,002 $ 12,725 $ 6,349 $ 2,318 $ — $ 55,992 Nonperforming — — — 57 31 73 — 161 Total Direct financing leases $ 4,358 $ 15,240 $ 15,002 $ 12,782 $ 6,380 $ 2,391 $ — $ 56,153 Construction and land development Performing $ 3,111 $ 9,299 $ 213 $ 511 $ — $ — $ — $ 13,134 Nonperforming — — — — 75 — — 75 Total Construction and land development $ 3,111 $ 9,299 $ 213 $ 511 $ 75 $ — $ — $ 13,209 1-4 family real estate Performing $ 67,843 $ 86,487 $ 24,356 $ 13,340 $ 13,954 $ 56,239 $ 28 $ 262,247 Nonperforming — — 72 — — 364 — 436 Total 1-4 family real estate $ 67,843 $ 86,487 $ 24,428 $ 13,340 $ 13,954 $ 56,603 $ 28 $ 262,683 Consumer Performing $ 3,418 $ 6,882 $ 2,788 $ 2,321 $ 848 $ 3,034 $ 50,081 $ 69,372 Nonperforming 47 — — — 17 1 1 66 Total Consumer $ 3,465 $ 6,882 $ 2,788 $ 2,321 $ 865 $ 3,035 $ 50,082 $ 69,438 Total $ 142,145 $ 183,241 $ 86,417 $ 50,233 $ 28,901 $ 62,803 $ 50,110 $ 603,850 * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due. For each class of financing receivable, the following table presents the recorded investment by credit quality indicator as of December 31, 2020: As of December 31, 2020 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,506,578 $ 488,478 $ 530,297 $ 999,931 $ 3,525,284 96.25 % Special Mention (Rating 6) 23,929 3,087 680 43,785 71,481 1.95 % Substandard (Rating 7) 24,710 4,906 10,478 25,987 66,081 1.80 % Doubtful (Rating 8) — — — — — — % $ 1,555,217 $ 496,471 $ 541,455 $ 1,069,703 $ 3,662,846 100.00 % As of December 31, 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 170,712 $ 65,475 $ 251,099 $ 91,094 $ 578,380 99.56 % Nonperforming 794 541 1,022 208 2,565 0.44 % $ 171,506 $ 66,016 $ 252,121 $ 91,302 $ 580,945 100.00 % * Prior to Adoption of ASU 2016-13: Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing TDRs. As of June 30, 2021 and December 31, 2020, TDRs totaled $3.1 million and $1.7 million, respectively. For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the three and six months ended June 30, 2021 and June 30, 2020. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring. For the three months ended June 30, 2021 For the six months ended June 30, 2021 Pre- Post- Pre- Post- Number of Modification Modification Number of Modification Modification Loans/ Recorded Recorded Specific Loans/ Recorded Recorded Specific Classes of Loans/Leases Leases Investment Investment Allowance Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Extensio |
NOTE 4 - DERIVATIVES AND HEDGIN
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 4 – DERIVATIVES AND HEDGING ACTIVITIES Derivatives are summarized as follows as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 (dollars in thousands) Assets: Interest rate caps - hedged $ 613 $ 259 Interest rate caps 158 67 Interest rate swaps - hedged 1,490 — Interest rate swaps 191,134 222,431 $ 193,395 $ 222,757 Liabilities: Interest rate swaps - hedged $ (4,958) $ (6,839) Interest rate swaps (191,134) (222,431) $ (196,092) $ (229,270) The Company uses interest rate swap and cap instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates. The Company entered into interest rate caps to hedge against the risk of rising interest rates on liabilities. The liabilities consist of $300.0 million of deposits and the benchmark rates hedged vary at 1-month LIBOR, 3-month LIBOR and the Prime Rate. The interest rate caps are designated as cash flow hedges in accordance with ASC 815. An initial premium of $3.5 million was paid upfront for the caps executed. The details of the interest rate caps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2021 December 31, 2020 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ 3 $ 3 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 8 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 3 3 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 35 15 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 73 31 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 37 15 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 110 46 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 229 94 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 115 47 $ 300,000 $ 613 $ 259 In December 2020, the Company redesignated three of its interest rate caps, which had been purchased in 2019 for $800 thousand. The caps, which were designated as cash flow hedges at the time of purchase, were redesignated as unhedged. For derivative instruments that are designated as unhedged, the change in fair value of the derivative instrument is recognized into current earnings. The details of the unhedged interest rate caps are as follows: Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2021 December 31, 2020 (dollars in thousands) 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.90 % $ 3 $ 2 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 35 15 3/1/2020 3/1/2025 Derivatives - Assets 25,000 1.90 120 50 $ 75,000 $ 158 $ 67 The Company has entered into interest rate swaps to hedge against the risk of declining interest rates on floating rate loans. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2021 December 31, 2020 (dollars in thousands) QCBT - Loans 7/1/2021 7/1/2031 Derivatives - Assets 35,000 1.40 % 2.81 % 351 N/A CRBT - Loans 7/1/2021 7/1/2031 Derivatives - Assets 50,000 1.40 % 2.81 % 502 N/A CSB - Loans 7/1/2021 7/1/2031 Derivatives - Assets 40,000 1.40 % 2.81 % 386 N/A SFCB - Loans 7/1/2021 7/1/2031 Derivatives - Assets 25,000 1.40 % 2.81 % 251 N/A $ 150,000 $ 1,490 $ N/A The Company has entered into interest rate swaps to hedge against the risk of rising rates on its rolling fixed rate short-term FHLB advances or brokered CDs and its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2021 December 31, 2020 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.00 % 5.85 % (1,282) (1,767) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.00 % 5.85 % (1,025) (1,414) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.74 % 4.54 % (1,246) (1,721) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.30 % 5.17 % (383) (529) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 1.87 % 4.75 % (447) (616) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 1.87 % 4.75 % (575) (792) $ 39,000 $ (4,958) $ (6,839) Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of AOCI. The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an equal and offsetting interest rate swap with a third party financial institution counterparty. Additionally, the Company receives an upfront fee from the financial institution counterparty, dependent upon the pricing that is recognized upon receipt from the financial institution counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. Interest rate swaps that are not designated as hedging instruments are summarized as follows: June 30, 2021 December 31, 2020 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 3,149,265 $ 191,134 $ 1,539,602 $ 222,431 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 3,149,265 $ 191,134 $ 1,539,602 $ 222,431 Swap fee income totaled $9.6 million and $19.9 million for the three months ended June 30, 2021 and 2020, respectively. Swap fee income totaled $23.1 million and $26.7 million for the six months ended June 30, 2021 and 2020, respectively. The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: June 30, 2021 December 31, 2020 (dollars in thousands) Cash $ 22,660 $ 45,719 U.S govt. sponsored agency securities 3,612 3,628 Municipal securities 85,895 85,937 Residential mortgage-backed and related securities 78,733 89,646 $ 190,900 $ 224,930 The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. Additionally, the Company enters into interest rate derivatives only with primary and highly rated counterparties, and uses ISDA master agreements, central clearing mechanisms and counterparty limits. The ISDA master agreements contain bilateral collateral agreements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower/customer counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company underwrites the combination of the base loan amount and potential swap exposure and focuses on high quality borrowers with strong collateral values. For the majority of the Company’s swapped loan portfolio, the loan-to-value including the potential swap exposure is below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
NOTE 5 - INCOME TAXES
NOTE 5 - INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Income Taxes | NOTE 5 – IN COME TAXES A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income is as follows for the three and six months ended June 30, 2021 and June 30, 2020: For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 5,699 21.0 % $ 3,472 21.0 % $ 10,219 21.0 % $ 6,226 21.0 % Tax exempt income, net (1,802) (6.6) (1,247) (7.5) (3,521) (7.2) (2,472) (8.3) Bank-owned life insurance (95) (0.4) (115) (0.7) (194) (0.4) (170) (0.6) State income taxes, net of federal benefit, current year 1,247 4.6 776 4.7 2,271 4.7 1,453 4.9 Tax credits (57) (0.2) (116) (0.7) (114) (0.2) (232) (0.8) Excess tax benefit on stock options exercised and restricted stock awards vested (40) (0.1) 2 — (204) (0.4) (262) (0.9) Other (164) (0.6) 26 0.1 (128) (0.3) 139 0.5 Federal and state income tax expense $ 4,788 17.6 % $ 2,798 16.9 % $ 8,329 17.2 % $ 4,682 15.8 % |
NOTE 6 - EARNINGS PER SHARE
NOTE 6 - EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 6 - EARNINGS PER SHARE The following information was used in the computation of EPS on a basic and diluted basis: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands, except share data) Net income $ 22,349 $ 13,739 $ 40,331 $ 24,967 Basic EPS $ 1.41 $ 0.87 $ 2.55 $ 1.58 Diluted EPS $ 1.39 $ 0.86 $ 2.52 $ 1.56 Weighted average common shares outstanding 15,813,932 15,747,056 15,808,788 15,771,926 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 231,307 148,280 226,606 185,032 Weighted average common and common equivalent shares outstanding 16,045,239 15,895,336 16,035,394 15,956,958 |
NOTE 7 - FAIR VALUE
NOTE 7 - FAIR VALUE | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value | |
FAIR VALUE | NOTE 7 – FAIR VALUE Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: ● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; ● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and ● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring basis comprise the following at June 30, 2021 and December 31, 2020: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 14,670 $ — $ 14,670 $ — Residential mortgage-backed and related securities 106,138 — 106,138 — Municipal securities 169,320 — 169,320 — Asset-backed securities 31,779 — 31,779 — Other securities 15,379 — 15,379 — Derivatives 193,395 — 193,395 — Total assets measured at fair value $ 530,681 $ — $ 530,681 $ — Derivatives $ 196,092 $ — $ 196,092 $ — Total liabilities measured at fair value $ 196,092 $ — $ 196,092 $ — December 31, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 15,336 $ — $ 15,336 $ — Residential mortgage-backed and related securities 132,842 — 132,842 — Municipal securities 152,408 — 152,408 — Asset-backed securities 40,683 — 40,683 — Other securities 20,697 — 20,697 — Derivatives 222,757 — 222,757 — Total assets measured at fair value $ 584,723 $ — $ 584,723 $ — Derivatives $ 229,270 $ — $ 229,270 $ — Total liabilities measured at fair value $ 229,270 $ — $ 229,270 $ — The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Interest rate caps are used for the purpose of hedging interest rate risk. The interest rate caps are further described in Note 4 to the Consolidated Financial Statements. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs). Interest rate swaps are used for the purpose of hedging interest rate risk on loans, FHLB advances, brokered deposits and junior subordinated debt. The interest rate swaps are further described in Note 4 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Interest rate swaps are also executed for select commercial customers. The interest rate swaps are further described in Note 4 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when a loan/lease is collaterally dependent). Assets measured at fair value on a non-recurring basis comprise the following at June 30, 2021 and December 31, 2020: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2021: Loans/leases evaluated individually $ 85,276 $ — $ — $ 85,276 OREO 1,966 — — 1,966 $ 87,242 $ — $ — $ 87,242 December 31, 2020: Loans/leases evaluated individually $ 9,926 $ — $ — $ 9,926 OREO 22 — — 22 $ 9,948 $ — $ — $ 9,948 The increase in loans/leases evaluated individually is due to the change in ACL methodology with the adoption of ASU 2016-13 as well as the downgrading of one large relationship. Loans/leases evaluated individually are valued at the lower of cost or fair value, and are classified as Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. OREO in the table above consists of property acquired through foreclosures and settlements of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as Level 3 in the fair value hierarchy. The estimated fair value of the property is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the property. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2021 2020 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 85,276 $ 9,926 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 1,966 22 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % For the loans/leases evaluated individually and OREO, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs. There have been no changes in valuation techniques used for any assets or liabilities measured at fair value during the three and six months ended June 30, 2021 and 2020. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: Fair Value As of June 30, 2021 As of December 31, 2020 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 55,598 $ 55,598 $ 61,329 $ 61,329 Federal funds sold Level 2 1,340 1,340 9,080 9,080 Interest-bearing deposits at financial institutions Level 2 87,440 87,440 86,596 86,596 Investment securities: HTM Level 2 473,159 523,442 476,165 521,277 AFS Level 2 337,286 337,286 361,966 361,966 Loans/leases receivable, net Level 3 78,959 85,276 9,191 9,926 Loans/leases receivable, net Level 2 4,259,852 4,174,761 4,157,562 4,112,735 Derivatives Level 2 193,395 193,395 222,757 222,757 Deposits: Nonmaturity deposits Level 2 4,232,439 4,232,439 4,138,478 4,138,478 Time deposits Level 2 456,496 453,483 460,659 465,681 Short-term borrowings Level 2 7,070 7,070 5,430 5,430 FHLB advances Level 2 40,000 39,996 15,000 14,998 Subordinated notes Level 2 113,771 116,441 118,691 112,406 Junior subordinated debentures Level 2 38,067 30,799 37,993 30,618 Derivatives Level 2 196,092 196,092 229,270 229,270 |
NOTE 8 - BUSINESS SEGMENT INFOR
NOTE 8 - BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
BUSINESS SEGMENT INFORMATION | NOTE 8 – BUSINESS SEGMENT INFORMATION Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company's internal organization, focusing on the financial information that the Company's operating decision-makers routinely use to make decisions about operating matters. The Company's Commercial Banking business, is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFCB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2021 and 2020. Commercial Banking Intercompany Consolidated QCBT CRBT CSB SFCB All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2021 Total revenue $ 21,676 $ 26,498 $ 10,809 $ 9,181 $ 137 $ (102) $ 68,199 Net interest income 16,152 14,005 8,672 6,479 (2,119) 327 43,516 Provision for credit losses 136 (692) 756 (200) — — — Net income (loss) from continuing operations 8,679 11,145 3,109 3,685 22,320 (26,589) 22,349 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Three Months Ended June 30, 2020 Total revenue $ 21,712 $ 35,505 $ 9,853 $ 9,533 $ 18,461 $ (17,788) $ 77,276 Net interest income 15,653 12,820 7,538 6,201 (1,509) 245 40,948 Provision for loan/lease losses 7,539 7,160 2,811 2,405 — — 19,915 Net income (loss) from continuing operations 3,999 11,043 569 1,899 13,650 (17,421) 13,739 Goodwill 3,223 14,980 9,888 45,975 182 — 74,248 Intangibles — 2,437 3,643 6,344 1,448 — 13,872 Total assets 1,984,245 2,021,043 903,648 745,470 715,740 (765,385) 5,604,761 Six Months Ended June 30, 2021 Total revenue $ 42,960 $ 56,855 $ 21,232 $ 17,927 $ 503 $ (224) $ 139,253 Net interest income 31,938 27,611 17,040 12,548 (4,221) 575 85,491 Provision for loan/lease losses 2,248 1,492 2,122 851 — — 6,713 Net income (loss) 15,843 22,541 5,171 5,954 40,268 (49,446) 40,331 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Six Months Ended June 30, 2020 Total revenue $ 43,399 $ 58,384 $ 20,074 $ 18,224 $ 34,875 $ (33,502) $ 141,454 Net interest income 30,080 24,206 15,038 11,843 (2,998) 477 78,646 Provision for loan/lease losses 10,722 9,410 4,775 3,375 — — 28,282 Net income (loss) from continuing operations 9,723 17,504 1,635 4,105 24,674 (32,674) 24,967 Goodwill 3,223 14,980 9,888 45,975 182 — 74,248 Intangibles — 2,437 3,643 6,344 1,448 — 13,872 Total assets 1,984,245 2,021,043 903,648 745,470 715,740 (765,385) 5,604,761 |
NOTE 9 - REGULATORY CAPITAL REQ
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 9 – REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and subsidiary banks' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of June 30, 2021 and December 31, 2020, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of June 30, 2021 and December 31, 2020 are presented in the following tables (dollars in thousands). As of June 30, 2021 and December 31, 2020, each of the subsidiary banks met the requirements to be “well capitalized”. For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of June 30, 2021: Company: Total risk-based capital $ 760,593 14.72 % $ 413,445 > 8.00 % $ 542,647 > 10.50 % $ 516,806 > 10.00 % Tier 1 risk-based capital 581,919 11.26 310,084 > 6.00 439,285 > 8.50 413,445 > 8.00 Tier 1 leverage 581,919 10.29 226,250 > 4.00 226,250 > 4.00 282,812 > 5.00 Common equity Tier 1 543,852 10.52 232,563 > 4.50 361,764 > 7.00 335,924 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 228,180 13.15 % $ 138,799 > 8.00 % $ 182,174 > 10.50 % $ 173,499 > 10.00 % Tier 1 risk-based capital 206,355 11.89 104,099 > 6.00 147,474 > 8.50 138,799 > 8.00 Tier 1 leverage 206,355 9.75 84,699 > 4.00 84,699 > 4.00 105,874 > 5.00 Common equity Tier 1 206,355 11.89 78,075 > 4.50 121,449 > 7.00 112,774 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 243,211 13.86 % $ 140,431 > 8.00 % $ 184,316 > 10.50 % $ 175,539 > 10.00 % Tier 1 risk-based capital 221,202 12.60 105,323 > 6.00 149,208 > 8.50 140,431 > 8.00 Tier 1 leverage 221,202 11.95 74,072 > 4.00 74,072 > 4.00 92,590 > 5.00 Common equity Tier 1 221,202 12.60 78,992 > 4.50 122,877 > 7.00 114,100 > 6.50 Community State Bank: Total risk-based capital $ 114,512 11.99 % $ 76,389 > 8.00 % $ 100,261 > 10.50 % $ 95,487 > 10.00 % Tier 1 risk-based capital 102,521 10.74 57,292 > 6.00 81,164 > 8.50 76,389 > 8.00 Tier 1 leverage 102,521 9.78 41,943 > 4.00 41,943 > 4.00 52,429 > 5.00 Common equity Tier 1 102,521 10.74 42,969 > 4.50 66,841 > 7.00 62,066 > 6.50 Springfield First Community Bank: Total risk-based capital $ 91,663 12.60 % $ 58,189 > 8.00 % $ 76,373 > 10.50 % $ 72,736 > 10.00 % Tier 1 risk-based capital 82,554 11.35 43,641 > 6.00 61,825 > 8.50 58,189 > 8.00 Tier 1 leverage 82,554 10.53 31,351 > 4.00 31,351 > 4.00 39,189 > 5.00 Common equity Tier 1 82,554 11.35 32,731 > 4.50 50,915 > 7.00 47,278 > 6.50 For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Company: Total risk-based capital $ 721,004 14.95 % $ 385,832 > 8.00 % $ 506,404 > 10.50 % $ 482,290 > 10.00 % Tier 1 risk-based capital 546,729 11.34 289,374 > 6.00 409,946 > 8.50 385,832 > 8.00 Tier 1 leverage 546,729 9.49 230,345 > 4.00 230,345 > 4.00 287,931 > 5.00 Common equity Tier 1 508,736 10.55 217,030 > 4.50 337,603 > 7.00 313,488 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 213,608 12.24 % $ 139,581 > 8.00 % $ 183,200 > 10.50 % $ 174,477 > 10.00 % Tier 1 risk-based capital 191,693 10.99 104,686 > 6.00 148,305 > 8.50 139,581 > 8.00 Tier 1 leverage 191,693 8.48 90,430 > 4.00 90,430 > 4.00 113,038 > 5.00 Common equity Tier 1 191,693 10.99 78,514 > 4.50 122,134 > 7.00 113,410 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 217,227 13.14 % $ 132,269 > 8.00 % $ 173,603 > 10.50 % $ 165,336 > 10.00 % Tier 1 risk-based capital 196,438 11.88 99,202 > 6.00 140,536 > 8.50 132,269 > 8.00 Tier 1 leverage 196,438 10.01 78,535 > 4.00 78,535 > 4.00 98,169 > 5.00 Common equity Tier 1 196,438 11.88 74,401 > 4.50 115,735 > 7.00 107,469 > 6.50 Community State Bank: Total risk-based capital $ 108,040 12.69 % $ 68,117 > 8.00 % $ 89,404 > 10.50 % $ 85,146 > 10.00 % Tier 1 risk-based capital 97,350 11.43 51,088 > 6.00 72,374 > 8.50 68,117 > 8.00 Tier 1 leverage 97,350 10.27 37,930 > 4.00 37,930 > 4.00 47,412 > 5.00 Common equity Tier 1 97,350 11.43 38,316 > 4.50 59,602 > 7.00 55,345 > 6.50 Springfield First Community Bank: Total risk-based capital $ 90,334 14.35 % $ 50,357 > 8.00 % $ 66,094 > 10.50 % $ 62,947 > 10.00 % Tier 1 risk-based capital 77,668 12.34 37,768 > 6.00 53,505 > 8.50 50,357 > 8.00 Tier 1 leverage 77,668 10.87 28,575 > 4.00 28,575 > 4.00 35,719 > 5.00 Common equity Tier 1 77,668 12.34 28,326 > 4.50 44,063 > 7.00 40,915 > 6.50 |
NOTE 1 - SUMMARY OF SIGNIFICA_2
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies | |
Basis of presentation | Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report. ACL: Allowance for credit losses Allowance: Allowance for credit losses GAAP: Generally Accepted Accounting Principles HTM: Held to maturity AOCI: Accumulated other comprehensive income (loss) LIBOR: London Inter-Bank Offered Rate AFS: Available for sale LRP: Loan Relief Program ASC: Accounting Standards Codification m2: m2 Equipment Finance, LLC ASU: Accounting Standards Update MSELF: Main Street Expanded Loan Facility Bates Companies: Bates Financial Advisors, Inc., Bates MSNLF: Main Street New Loan Facility Financial Services, Inc., Bates Securities, Inc. and NIM: Net interest margin Bates Financial Group, Inc. NPA: Nonperforming asset BOLI: Bank-owned life insurance NPL: Nonperforming loan Caps: Interest rate cap derivatives OBS: Off-balance sheet CARES Act: Coronavirus Aid, Relief and Economy OREO: Other real estate owned Security Act OTTI: Other-than-temporary impairment CECL: Current Expected Credit Losses PCAOB: Public Company Accounting Oversight Board Community National: Community National Bancorporation PCD: Purchased credit deteriorated loan COVID-19: Coronavirus Disease 2019 PCI: Purchased credit impaired CRBT: Cedar Rapids Bank & Trust Company PPP: Paycheck Protection Program CRE: Commercial real estate Provision: Provision for credit losses CSB: Community State Bank QCBT: Quad City Bank & Trust Company C&I: Commercial and industrial RB&T: Rockford Bank & Trust Company EPS: Earnings per share ROAA: Return on average assets Exchange Act: Securities Exchange Act of 1934, as SBA: U.S. Small Business Administration amended SEC: Securities and Exchange Commission FASB: Financial Accounting Standards Board SFCB: Springfield First Community Bank FDIC: Federal Deposit Insurance Corporation Springfield Bancshares: Springfield Bancshares, Inc. Federal Reserve: Board of Governors of the Federal TA: Tangible assets Reserve System TCE: Tangible common equity FHLB: Federal Home Loan Bank TDRs: Troubled debt restructurings FRB: Federal Reserve Bank of Chicago TEY: Tax equivalent yield The Company: QCR Holdings, Inc. |
Principles of consolidation | The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and SFCB. All are state-chartered commercial banks and all are members of the Federal Reserve system. The Company engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation. |
Recent accounting developments | Recent accounting developments Financial Instruments – Credit Losses (Topic 326) On March 27, 2020, the CARES Act, a stimulus package designed in response to the economic disruption created by COVID-19, was signed into law. The CARES Act includes provisions that, if elected, temporarily delay the required implementation date of ASU 2016-13. Section 4014 of the CARES Act stipulates that no insured depository institution, bank holding company, or affiliate would be required to comply with ASU 2016-13, beginning on the date of CARES Act’s enactment and continuing until the earlier of: (1) the date on which the national emergency related to the COVID-19 outbreak is terminated or (2) December 31, 2020. On December 27, 2020, former President Trump signed the Consolidated Appropriations Act, which extended this relief to the earlier of the first day of the Company’s fiscal year after the date the national emergency terminates or January 1, 2022. Based upon guidance from regulators, it was determined the Company could adopt ASU 2016-13 on January 1, 2021, and the Company did adopt on January 1, 2021. The Company has developed a CECL allowance model which calculates allowances over the life of a loan and is largely driven by portfolio characteristics, risk-grading, economic outlook, and other key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given the default framework. The Company utilizes economic and other forecasts over a reasonable and supportable forecast period and then fully reverts back to average historical losses. Results for reporting periods beginning after December 31, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP, which includes a change in terminology from “Allowance for estimated losses on loans/leases” to “Allowance for credit losses.” The Company adopted the standard using a modified retrospective approach and recorded an after tax decrease to retained earnings of $937 thousand as of January 1, 2021 due to the adoption of ASU 2016-13. This transition adjustment included an $8.1 million decrease in the allowance related to loans and leases, established an ACL on held to maturity debt securities of $183 thousand and established an ACL on OBS credit exposures of $9.1 million. The company did not record an ACL on available for sale securities upon adoption of ASU 2016-13. The Company elected to not measure an ACL on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. The Company elected not to include accrued interest within the presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the financial statements and notes included on the following pages of this Form 10-Q. The Company elected not to utilize the regulatory transition relief issued by federal regulatory authorities in the first quarter of 2020, which allowed banking institutions to delay the impact of CECL on regulatory capital, because the impact on the capital ratios of the Company and its subsidiary banks was not significant. The following table illustrates the impact of ASU 2016-13 as of January 1, 2021: As Reported Pre- Impact of Under ASU 2016-13 ASU 2016-13 ASU 2016-13 Adoption Adoption Assets: Allowance for credit losses HTM securities $ 183 $ — $ 183 Loans*: C&I — 35,421 (35,421) C&I - revolving 2,982 — 2,982 C&I - other 29,130 — 29,130 CRE — 42,161 (42,161) CRE - owner occupied 8,696 — 8,696 CRE - non owner occupied 11,428 — 11,428 Construction & Land Development 11,999 — 11,999 Multi-family 5,836 — 5,836 Direct financing leases — 1,764 (1,764) 1-4 family real estate 5,042 — 5,042 Residential real estate — 3,732 (3,732) Consumer 1,161 1,298 (137) Allowance for credit losses on loans 76,274 84,376 (8,102) Liabilities: Allowance for credit losses on OBS credit exposures 9,117 — 9,117 * Loan segmentation under ASU 2016-13 follows different methodology where that segmentation is collateral driven, causing certain segments to contain commercial and non-commercial borrowers, whereas pre-ASU 2016-13 segments were borrower driven. Further discussion contained in this quarterly report regarding the loan and lease portfolio as well as ACL on HTM securities and OBS exposures is only relevant for the year 2021 and forward. Discission in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 is still applicable for years prior to 2021. |
Loans receivable, held for sale | Loans receivable, held for sale |
Loans receivable, held for investment | Loans receivable, held for investment The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company discloses the ACL (also known as the allowance) by portfolio segment, and credit quality information, nonaccrual status, and past due status by class of financing receivable. A portfolio segment is the level at which the Company develops and documents a systematic methodology to determine its ACL. A class of financing receivable is a further disaggregation of a portfolio segment based on risk characteristics and the Company’s method for monitoring and assessing credit risk. See the following information and Note 3. The Company’s portfolio segments and class of loans receivable are as follows: ● C&I – revolving ● C&I – other ● CRE – owner occupied ● CRE – non-owner occupied ● Construction and land development ● Multi-family ● 1-4 family real estate ● Consumer The Company’s classes of loans receivable are as follows: ● C&I – revolving ● C&I – other ● CRE – owner occupied ● CRE – non-owner occupied ● Construction and land development ● Multi-family ● Direct financing leases ● 1-4 family real estate ● Consumer Direct financing leases are considered a class of financing receivable within the overall loan/lease portfolio and are included in the C&I other loan segments for ACL. The accounting policies for direct financing leases are disclosed below. Generally, for all classes of loans receivable, loans are considered past due when contractual payments are delinquent for 31 days or greater. For all classes of loans receivable, loans will generally be placed on nonaccrual status when the loan has become 90 days past due (unless the loan is well secured and in the process of collection); or if any of the following conditions exist: ● It becomes evident that the borrower will not make payments, or will not or cannot meet the terms for renewal of a matured loan; ● When full repayment of principal and interest is not expected; ● When the loan is graded “doubtful”; ● When the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future; or ● When foreclosure action is initiated. When a loan is placed on nonaccrual status, income recognition is ceased. Previously recorded but uncollected amounts of interest on nonaccrual loans are reversed at the time the loan is placed on nonaccrual status. Generally, cash collected on nonaccrual loans is applied to principal. Should full collection of principal be expected, cash collected on nonaccrual loans can be recognized as interest income. For all classes of loans receivable, nonaccrual loans may be restored to accrual status provided the following criteria are met: ● The loan is current, and all principal and interest amounts contractually due have been made; ● All principal and interest amounts contractually due, including past due payments, are reasonably assured of repayment within a reasonable period; and ● There is a period of minimum repayment performance, as follows, by the borrower in accordance with contractual terms: o Six months of repayment performance for contractual monthly payments, or o One year of repayment performance for contractual quarterly or semi-annual payments. Direct finance leases receivable, held for investment recorded as lease receivables when the lease is signed and the lease property delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at the lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s estimates are reviewed continuously to ensure reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other-than temporary. If the decline in estimated unguaranteed residual value is judged to be other-than-temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and nonaccrual for direct financing leases are materially consistent with those described above for all classes of loan receivables. |
Troubled debt restructuring | TDRs The following criteria, related to granting a concession, together or separately, create a TDR: ● A modification of terms of a debt such as one or a combination of: o The reduction of the stated interest rate to a rate lower than the current market rate for new debt with similar risk. o The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. o The reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. o The reduction of accrued interest. ● A transfer from the borrower/lessee to the Company of receivables from third parties, real estate, other assets, or an equity position in the borrower to fully or partially satisfy a loan. ● The issuance or other granting of an equity position to the Company to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. |
Allowance | Allowance Allowance for Credit Losses on Loans and Leases The ACL on loans is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the eight portfolio segments at which the allowance will be measured. For all portfolio segments, the allowance is established as losses are estimated to have occurred through a provision that is charged to earnings. Credit losses on loans and leases, for all portfolio segments, are charged against the allowance when management believes the uncollectibility of a loan/lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company’s methodologies for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions that are expected to exist through the contractual lives of the financial assets and that are reasonable and supportable -- to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company will immediately and fully revert back to average historical losses when it can no longer develop reasonable and supportable forecasts. A discussion of the risk characteristics and the allowance by each loan portfolio segment follows: For C&I loans, both revolving lines of credit and other C&I, the Company focuses on small and mid-sized businesses with primary operations as wholesalers, manufacturers, building contractors, business services companies, other banks, and retailers. The Company provides a wide range of C&I loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of facilities, equipment and other purposes. Approval is generally based on the following factors: ● Ability and stability of current management of the borrower; ● Stable earnings with positive financial trends; ● Sufficient cash flow to support debt repayment; ● Earnings projections based on reasonable assumptions; ● Financial strength of the industry and business; and ● Value and marketability of collateral. Collateral for C&I loans generally includes accounts receivable, inventory, equipment and real estate. The Company’s lending policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans must exceed the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash. The Company’s lending policy specifies maximum term limits for C&I loans. For term loans, the maximum term is generally 7 years with average terms ranging from 3 In addition, the Company often takes personal guarantees or cosigners to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower. CRE is segmented into the following categories generally based on source of repayment: Owner occupied CRE, non-owner occupied CRE and multi-family. CRE loans are also embedded in the following segments: construction and land development and 1-4 family real estate. CRE loans are subject to underwriting standards and processes similar to C&I loans, in addition to those standards and processes specific to real estate loans. Collateral for CRE loans generally includes the underlying real estate and improvements, and may include additional assets of the borrower. The Company’s lending policy specifies maximum loan-to-value limits based on the category of CRE (CRE loans on improved property, raw land, land development, and commercial construction). These limits are the same limits established by regulatory authorities. Multi-family loans provide a source of repayment from rental income. The Company’s lending policy also includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. In addition, the Company often takes personal guarantees to help assure repayment. Construction loans include any loans to finance the construction of any new residential property, CRE property or major rehabilitation or expansion of existing commercial structures. Construction lending carries a high degree of risk because of the difficulty of protecting the bank against a myriad of pitfalls. The following factors are evaluated when underwriting these types of loans: ● Borrowers/contractors experience and ability is analyzed with the type and size of project being considered. ● Financial ability to cover cost overruns. ● Reliability and thoroughness of cost projections and reasonable assurance that significant provisions are made for contingencies for soft costs especially interest and operating deficits. ● Reliability of the estimate of time to complete the project. The land development portfolio also includes other land loans such as raw land. The raw land component involves considerable risk to the bank and is reserved for the Bank’s most credit worthy borrowers. Land development loans are typically only made to experienced local developers with successful track records. For all loans the allowance consists of pooled and individually analyzed components. Pooled loan allowances consist of quantitative and qualitative factors and cover loan classes that share similar risk characteristics with other assets in the segmented pool. Quantitative Factors: The quantitative factors are based on the probability of default and loss given default derived from historical net charge-off experience, repayment activity and default, remaining life, and current economic conditions as well as economic outlook. Qualitative Factors: The Company’s allowance methodology also has a qualitative component, the purpose of which is to provide management with a means to take into consideration changes in current conditions that could potentially have an effect, up or down, on the level of recognized loan losses, that, for whatever reason, fail to show up in the quantitative analysis performed in determining its base loan loss rates. The Company utilizes the following qualitative factors: ● National and local economy ● Loan volume and trend ● Loan quality ● Loan policies and procedures ● Management and staff experience ● Concentrations ● Collateral ● Loan review system ● Regulatory environment and oversight The qualitative adjustments are based on the current condition and applied as a percentage adjustment in addition to the calculated historical loss rates. The adjustment amount can be either positive or negative depending whether or not the current condition is better or worse than the historical average. These adjustments reflect the extent to which the Company expects current conditions to differ from the conditions that existed for the period over which historical information was evaluated. Economic Forecasting: The Company uses reasonable and supportable forecasts over the contractual term of the financial assets for each entity. This measurement is based upon relevant past events, historical experience and current conditions to determine the forecasted data which requires significant judgement. When management no longer has sufficient information to make a reasonable and supportable forecast, the data will then immediately revert back to the average historical performance for each entity. It is expected that actual economic conditions will, in many circumstances, turn out differently than forecasted because the ultimate outcomes during the forecast period may be affected by events that were unforeseen, such as economic disruption and fiscal or monetary policy actions, which are exacerbated by longer forecasting periods. This uncertainty would be relevant to the entity’s confidence level as to the outcomes being forecasted. That is, an entity is likely less confident in the ultimate outcome of events that will occur at the end of the forecast period as compared to the beginning. As a result, actual future economic conditions may not be an effective indicator of the quality of the Company’s forecasting process, including the length of the forecast period. Loans are determined to no longer share similar risk characteristics with other assets in the segmented pool when their scheduled payments of principal and interest according to the contractual terms of the loan agreement, have a greater probability of uncollectibility based on current information and events. Such events include past due status of 90 days or more, non-accrual status or classification of a substandard or doubtful risk rating. Factors considered by management in determining risk rating and non-accrual status include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered low quality. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Allowances for these low quality loans are measured on a case-by-case basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Some loans that are determined to no longer share risk characteristics with other assets in the segmented pool, may be deemed collateral dependent. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When it is determined that foreclosure is probable, the collateral’s fair value is used to estimate the financial assets expected credit losses for the current reporting period. This fair value is then reduced by the present value of estimated costs to sell. If it is determined that the asset is collateral-dependent but foreclosure is not probable, an institution can elect to apply the practical expedient to use the collateral’s fair value to estimate the asset’s expected credit loss. The Company is choosing to utilize the practical expedient. When using the practical expedient on a collateral dependent loan where repayment is reliant upon the sale of the collateral, the fair value of that collateral will be adjusted for estimated costs to sell. However if the repayment is dependent on the operations of the company the fair market value less estimated cost to sell cannot be used. Thus the net present value of the cash-flow will be utilized. For non-homogenous loans, the Company utilizes the following internal risk rating scale: 1. Highest Quality (Pass) – loans of the highest quality with no credit risk, including those fully secured by subsidiary bank certificates of deposit and U.S. government securities. 2. Superior Quality (Pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Satisfactory Quality (Pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including credit quality, earnings, liquidity, capital and cash flow coverage. Management is capable and experienced. Collateral coverage and guarantor support, if applicable, are more than adequate. Includes loans secured by personal assets and business assets, including equipment, accounts receivable, inventory, and real estate. 4. Fair Quality (Pass) – loans with moderate but still acceptable credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management or unproven performance records in relation to peers, or borrowers operating in highly cyclical or declining industries. 5. Early Warning (Pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. 6. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating, therefore, it is generally not assigned to a borrower for a period of more than one year . 7. Substandard – loans which are inadequately protected by the current worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 8. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, on the basis of current facts, conditions and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including principal and interest, applied to principal reduction. For term C&I and CRE loans greater than $1,000,000, a loan review is required within 15 months of the most recent credit review. The review is completed in enough detail to, at a minimum, validate the risk rating. Additionally, the review shall include an analysis of debt service requirements, covenant compliance, if applicable, and collateral adequacy. The frequency of the review is generally accelerated for loans with poor risk ratings. The Company’s Loan Quality area performs a documentation review of a sampling of C&I and CRE loans, the primary purpose of which is to ensure the credit is properly documented and closed in accordance with approval authorities and conditions. A review is also performed by the Company’s Internal Audit Department of a sampling of C&I and CRE loans for proper documentation, according to an approved schedule. Validation of the risk rating is also part of Internal Audit’s review (performed by Internal Loan Review). Additionally, over the past several years, the Company has contracted an independent outside third party to review a sampling of C&I and CRE loans. Validation of the risk rating is part of this review as well. The Company leases machinery and equipment to C&I customers under direct financing leases. All lease requests are subject to the credit requirements and criteria as set forth in the lending/leasing policy. In all cases, a formal independent credit analysis of the lessee is performed. Direct financing leases are included in the C&I – Other segment and allowance is established in the same manner as C&I loans. Generally, the Company’s residential real estate loans conform to the underwriting requirements of Freddie Mac and Fannie Mae to allow the subsidiary banks to resell loans in the secondary market. The subsidiary banks structure most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one The Company provides many types of installment and other consumer loans including motor vehicle, home improvement, home equity, signature loans and small personal credit lines. The Company’s lending policy addresses specific credit guidelines by consumer loan type. For residential real estate loans, and installment and other consumer loans, these large groups of smaller balance homogenous loans follow the same methodology as commercial loans in terms of evaluation of risk characteristics, other than these may not be risk rated due to homogenous nature. TDRs follow the same allowance methodology as described above for all loans. Once a loan is classified as a TDR, it will remain a TDR until the loan is paid off, charged off, moved to OREO or restructured into a new note without a concession. TDR status may also be removed if the TDR was restructured in a prior calendar year, is current, accruing interest and shows sustained performance. Allowance for Credit Losses on Off-Balance Sheet Exposures The Company estimates expected credit losses over the contractual term of the loan for the unfunded portion of the loan commitment that is not unconditionally cancellable by the Company. Management uses an estimated average utilization rate to determine the exposure of default. The allowance on unfunded commitments is calculated using probability of default and loss given default using the same segmentation and qualitative factors used for loans and leases. The allowance for OBS exposures is recorded in the Accrued Expenses and Other Liabilities section of the consolidated balance sheet. Allowance for Credit Losses on Held to Maturity Debt Securities The Company measures expected credit losses on held to maturity debt securities on a collective basis based on security type. The estimate of expected credit losses considers historical credit information from external sources. The Company’s held to maturity debt securities consist primarily of investment grade obligations of states and political subdivisions. Allowance for Credit Losses on Available for Sale Debt Securities ASU 2016-13 modifies the impairment model for available for sale debt securities. Available for sale debt securities in unrealized loss positions are evaluated for credit related loss at least quarterly. The decline in fair value of an available for sale debt security due to credit loss results in recording an ACL to the extent the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an ACL, such as declines due to changes in market interest rates, are recorded through other comprehensive income, net of applicable taxes. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally considered to not be related to credit when the fair value of the security is below the carrying value primarily due to changes in risk-free interest rates, there has not been significant deterioration in the financial condition of the issuer, and the Company does not intend to sell nor does it believe it will be required to sell the security before the recovery of its cost basis. The Company did not record an allowance for credit losses on AFS debt securities upon adoption of ASU 2016-13. |
Risks and uncertainties | Risks and Uncertainties: On January 30, 2020, the World Health Organization declared the COVID-19 outbreak a “Public Health Emergency of International Concern” and on March 11, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. COVID-19 and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. On March 27, 2020, the CARES Act was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. Pending accounting developments In March 2020, the FASB issued ASU 2020-4, “ Reference Rate Reform |
Pending accounting developments | Pending accounting developments In March 2020, the FASB issued ASU 2020-4, “ Reference Rate Reform |
NOTE 1 - SUMMARY OF SIGNIFICA_3
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of accounting standards update and change in accounting principle | As Reported Pre- Impact of Under ASU 2016-13 ASU 2016-13 ASU 2016-13 Adoption Adoption Assets: Allowance for credit losses HTM securities $ 183 $ — $ 183 Loans*: C&I — 35,421 (35,421) C&I - revolving 2,982 — 2,982 C&I - other 29,130 — 29,130 CRE — 42,161 (42,161) CRE - owner occupied 8,696 — 8,696 CRE - non owner occupied 11,428 — 11,428 Construction & Land Development 11,999 — 11,999 Multi-family 5,836 — 5,836 Direct financing leases — 1,764 (1,764) 1-4 family real estate 5,042 — 5,042 Residential real estate — 3,732 (3,732) Consumer 1,161 1,298 (137) Allowance for credit losses on loans 76,274 84,376 (8,102) Liabilities: Allowance for credit losses on OBS credit exposures 9,117 — 9,117 |
NOTE 2 - INVESTMENT SECURITIES
NOTE 2 - INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) June 30, 2021: Securities HTM: Municipal securities $ 472,283 $ 50,129 $ (20) $ 522,392 Other securities 1,050 — — 1,050 $ 473,333 $ 50,129 $ (20) $ 523,442 Securities AFS: U.S. govt. sponsored agency securities $ 14,310 $ 504 $ (144) $ 14,670 Residential mortgage-backed and related securities 102,625 4,094 (581) 106,138 Municipal securities 163,607 5,861 (148) 169,320 Asset-backed securities 30,707 1,072 — 31,779 Other securities 15,139 250 (10) 15,379 $ 326,388 $ 11,781 $ (883) $ 337,286 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 475,115 $ 45,360 $ (248) $ 520,227 Other securities 1,050 — — 1,050 $ 476,165 $ 45,360 $ (248) $ 521,277 Securities AFS: U.S. govt. sponsored agency securities $ 14,936 $ 447 $ (47) $ 15,336 Residential mortgage-backed and related securities 127,670 5,510 (338) 132,842 Municipal securities 147,241 5,215 (48) 152,408 Asset-backed securities 39,663 1,111 (91) 40,683 Other securities 20,550 147 — 20,697 $ 350,060 $ 12,430 $ (524) $ 361,966 |
Securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2021: Securities HTM: Municipal securities $ 14,440 $ (20) $ — $ — $ 14,440 $ (20) Securities AFS: U.S. govt. sponsored agency securities $ 3,067 $ (144) $ — $ — $ 3,067 $ (144) Residential mortgage-backed and related securities 26,967 (580) 153 (1) 27,120 (581) Municipal securities 13,608 (148) — — 13,608 (148) Other securities 4,207 (10) — — 4,207 (10) $ 47,849 $ (882) $ 153 $ (1) $ 48,002 $ (883) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 8,407 $ (248) $ — $ — $ 8,407 $ (248) Securities AFS: U.S. govt. sponsored agency securities $ 3,199 $ (47) $ — $ — $ 3,199 $ (47) Residential mortgage-backed and related securities 37,549 (338) — — 37,549 (338) Municipal securities 10,110 (48) — — 10,110 (48) Asset-backed securities 6,884 (52) 9,945 (39) 16,829 (91) $ 57,742 $ (485) $ 9,945 $ (39) $ 67,687 $ (524) |
Activity in allowance for credit losses | Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Municipal Other Municipal Other securities securities Total securities securities Total Allowance for credit losses: Beginning balance $ 173 $ 1 $ 174 $ — $ — $ — Impact of adopting ASU 2016-13 — — — 182 1 183 Provision for credit loss expense — — — (9) — (9) Balance, ending $ 173 $ 1 $ 174 $ 173 $ 1 $ 174 |
Realized gain (loss) on investments | Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (dollars in thousands) Proceeds from sales of securities $ 4,334 $ 6,327 $ 23,874 $ 6,327 Gross gains from sales of securities — 134 — 134 Gross losses from sales of securities (88) (69) (88) (69) |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,882 $ 2,910 Due after one year through five years 29,592 30,281 Due after five years 440,859 490,251 $ 473,333 $ 523,442 Securities AFS: Due in one year or less $ 1,471 $ 1,492 Due after one year through five years 11,927 12,175 Due after five years 179,658 185,702 193,056 199,369 Residential mortgage-backed and related securities 102,625 106,139 Asset-backed securities 30,707 31,778 $ 326,388 $ 337,286 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 272,039 $ 283,607 Securities AFS: Municipal securities 158,149 163,595 Other securities 15,139 15,379 $ 173,288 $ 178,974 |
NOTE 3 - LOANS_LEASES RECEIVA_2
NOTE 3 - LOANS/LEASES RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Composition of the loan/lease portfolio | June 30, 2021 (dollars in thousands) C&I: C&I - revolving $ 182,882 C&I - other * 1,505,384 1,688,266 CRE - owner occupied 427,734 CRE - non-owner occupied 618,879 Construction and land development 708,289 Multi-family 466,804 Direct financing leases** 56,153 1-4 family real estate*** 382,142 Consumer 69,438 4,417,705 Allowance for credit losses (78,894) $ 4,338,811 ** Direct financing leases: Net minimum lease payments to be received $ 61,781 Estimated unguaranteed residual values of leased assets 165 Unearned lease/residual income (5,793) 56,153 Plus deferred lease origination costs, net of fees 783 56,936 Less allowance for credit losses (1,976) $ 54,960 December 31, 2020 C&I loans* $ 1,726,723 CRE loans Owner-occupied CRE 496,471 Commercial construction, land development, and other land 541,455 Other non owner-occupied CRE 1,069,703 2,107,629 Direct financing leases ** 66,016 Residential real estate loans *** 252,121 Installment and other consumer loans 91,302 4,243,791 Plus deferred loan/lease origination costs, net of fees 7,338 4,251,129 Less allowance (84,376) $ 4,166,753 ** Direct financing leases: Net minimum lease payments to be received $ 72,940 Estimated unguaranteed residual values of leased assets 239 Unearned lease/residual income (7,163) 66,016 Plus deferred lease origination costs, net of fees 1,072 67,088 Less allowance (1,764) $ 65,324 * Includes equipment financing agreements outstanding at m2, totaling $202.4 million and $171.5 million as of June 30, 2021 and December 31, 2020, respectively and PPP loans totaling $147.5 million and $273.1 million as of June 30, 2021 and December 31, 2020, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. *** Includes residential real estate loans held for sale totaling $4.5 million and $3.8 million as of June 30, 2021 and December 31, 2020, respectively. |
Changes in accretable yield for acquired loans | Three months ended June 30, 2021 Six months ended June 30, 2021 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ — $ (2,530) $ (2,530) $ — $ (3,139) $ (3,139) Accretion recognized — 341 341 — 950 950 Balance at the end of the period $ — $ (2,189) $ (2,189) $ — $ (2,189) $ (2,189) Three months ended June 30, 2020 Six months ended June 30, 2020 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (59) $ (5,725) $ (5,784) $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable — — — (30) — (30) Accretion recognized 1 790 791 29 1,443 1,472 Balance at the end of the period $ (58) $ (4,935) $ (4,993) $ (58) $ (4,935) $ (4,993) |
Aging of the loan/lease portfolio by classes of loans/leases | As of June 30, 2021 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I: C&I - revolving $ 182,882 $ — $ — $ — $ — $ 182,882 C&I - other 1,498,911 1,252 205 57 4,959 1,505,384 CRE - owner occupied 426,603 865 266 — — 427,734 CRE - non-owner occupied 618,483 — 396 — — 618,879 Construction and land development 708,214 — — — 75 708,289 Multi-family 466,804 — — — — 466,804 Direct financing leases 55,779 76 137 — 161 56,153 1-4 family real estate 378,314 228 631 — 2,969 382,142 Consumer 69,320 52 — — 66 69,438 $ 4,405,310 $ 2,473 $ 1,635 $ 57 $ 8,230 $ 4,417,705 As a percentage of total loan/lease portfolio 99.72 % 0.05 % 0.04 % 0.00 % 0.19 % 100.00 % As of December 31, 2020 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,720,058 $ 1,535 $ 323 $ — $ 4,807 $ 1,726,723 CRE Owner-occupied CRE 496,459 — — — 12 496,471 Commercial construction, land development, and other land 541,455 — — — — 541,455 Other non-owner occupied CRE 1,062,215 — — — 7,488 1,069,703 Direct financing leases 64,918 501 191 — 406 66,016 Residential real estate 249,364 1,512 223 — 1,022 252,121 Installment and other consumer 91,047 43 4 3 205 91,302 $ 4,225,516 $ 3,591 $ 741 $ 3 $ 13,940 $ 4,243,791 As a percentage of total loan/lease portfolio 99.57 % 0.08 % 0.02 % 0.00 % 0.33 % 100.00 % |
NPLs by classes of loans/leases | As of June 30, 2021 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 57 4,736 223 5,016 60.52 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 75 — 75 0.91 Multi-family — — — — - Direct financing leases — 110 51 161 1.94 1-4 family real estate — 2,969 — 2,969 35.83 Consumer — 66 — 66 0.80 $ 57 $ 7,956 $ 274 $ 8,287 100.00 % As of December 31, 2020 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 4,807 $ 606 $ 5,413 36.87 % CRE Owner-occupied CRE — 12 — 12 0.08 % Commercial construction, land development, and other land — — — — - % Other non-owner occupied CRE — 7,488 — 7,488 50.99 % Direct financing leases — 406 135 541 3.68 % Residential real estate — 1,022 — 1,022 6.96 % Installment and other consumer 3 205 — 208 1.42 % $ 3 $ 13,940 $ 741 $ 14,684 100.00 % * Nonaccrual loans/leases included $984 thousand of TDRs, including $836 thousand in CRE loans, $100 thousand in direct financing leases, $48 thousand in installment loans. |
Allowance for credit losses on financing receivables | Three Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other* CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,547 $ 33,167 $ — $ 9,147 $ 11,155 $ 12,327 $ 6,278 $ — $ — $ 5,165 $ 1,045 $ 81,831 Provision — (370) (2) — (1,121) (376) 1,313 849 — — (105) (329) (141) Charge-offs — — (998) — — (1,876) — (150) — — (646) (4) (3,674) Recoveries — — 158 — (6) 8 — — — — 511 207 878 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 Six Months Ended June 30, 2021 CRE - CRE - Construction Direct Residential C&I - C&I - Owner Non-Owner and Land Multi Financing Real 1-4 C&I Revolving Other** CRE Occupied Occupied Development Family Leases Estate Family Consumer Total (dollars in thousands) Balance, beginning $ 35,421 $ — $ — $ 42,161 $ — $ — $ — $ — $ 1,764 $ 3,732 $ — $ 1,298 $ 84,376 Adoption of ASU 2016-13 (35,421) 2,982 29,130 (42,161) 8,696 11,428 11,999 5,836 (1,764) (3,732) 5,042 (137) (8,102) Provision — 195 4,547 — (670) (662) 1,641 1,291 — — 56 (546) 5,852 Charge-offs — — (1,666) — — (1,876) — (150) — — (690) (5) (4,387) Recoveries — — 314 — (6) 21 — — — — 517 309 1,155 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 * Included within the C&I – Other column are ACL on leases with a beginning balance of $2.2 million, negative provision of $144 thousand, charge-offs of $130 thousand and recoveries of $58 thousand. ACL on leases was $2.0 million as of June 30, 2021. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $1.8 million, adoption impact of $685 thousand, negative provision of $279 thousand, charge-offs of $328 thousand and recoveries of $134 thousand. ACL on leases was $2.0 million as of June 30, 2021. Three Months Ended June 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 18,151 $ 19,269 $ 1,303 $ 2,313 $ 1,197 $ 42,233 Provision 7,859 10,365 887 697 107 19,915 Charge-offs (340) (511) (595) — (4) (1,450) Recoveries 78 — 44 — 7 129 Balance, ending $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 Six Months Ended June 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions 11,556 14,181 1,281 1,033 231 28,282 Charge-offs (1,979) (511) (1,195) — (100) (3,785) Recoveries 99 74 89 29 38 329 Balance, ending $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 As of June 30, 2021 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I – Revolving $ 2,725 $ 180,157 $ 182,882 $ 189 $ 2,988 $ 3,177 C&I - Other* 40,175 1,521,362 1,561,537 3,762 28,563 32,325 42,900 1,701,519 1,744,419 3,951 31,551 35,502 CRE - owner occupied 5,425 422,309 427,734 283 7,737 8,020 CRE - non-owner occupied 19,879 599,000 618,879 46 8,865 8,911 Construction and Land Development 10,553 697,736 708,289 12 13,628 13,640 Multi-family — 466,804 466,804 — 6,977 6,977 1-4 family real estate 4,683 377,459 382,142 491 4,434 4,925 Consumer 271 69,167 69,438 36 883 919 $ 83,711 $ 4,333,994 $ 4,417,705 $ 4,819 $ 74,075 $ 78,894 |
Impaired financing receivables | Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,978 $ 2,051 $ — $ 1,512 $ 25 $ 25 CRE Owner-occupied CRE 320 577 — 128 — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 965 965 — 742 14 14 Direct financing leases 1,364 1,364 — 1,379 11 11 Residential real estate 624 652 — 474 — — Installment and other consumer 562 562 — 525 — — $ 5,813 $ 6,171 $ — $ 4,760 $ 50 $ 50 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 569 $ 569 $ 341 $ 479 $ — $ — CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 6,530 6,530 1,692 5,329 — — Direct financing leases 55 55 20 59 — — Residential real estate 260 260 23 206 — — Installment and other consumer 78 78 78 67 — — $ 7,492 $ 7,492 $ 2,154 $ 6,140 $ — $ — Total Impaired Loans/Leases: C&I $ 2,547 $ 2,620 $ 341 $ 1,991 $ 25 $ 25 CRE Owner-occupied CRE 320 577 — 128 — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 7,495 7,495 1,692 6,071 14 14 Direct financing leases 1,419 1,419 20 1,438 11 11 Residential real estate 884 912 23 680 — — Installment and other consumer 640 640 78 592 — — $ 13,305 $ 13,663 $ 2,154 $ 10,900 $ 50 $ 50 Three Months Ended June 30, 2020 Interest Income Average Recognized for Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Recognized Received Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,742 $ 13 $ 13 CRE Owner-Occupied CRE 174 — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 978 7 7 Direct Financing Leases 1,411 6 6 Residential Real Estate 524 — — Installment and Other Consumer 550 — — $ 5,379 $ 26 $ 26 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 568 $ — $ — CRE Owner-Occupied CRE — — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 6,560 — — Direct Financing Leases 57 — — Residential Real Estate 220 — — Installment and Other Consumer 70 — — $ 7,475 $ — $ — Total Impaired Loans/Leases: C&I $ 2,310 $ 13 $ 13 CRE Owner-Occupied CRE 174 — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 7,538 7 7 Direct Financing Leases 1,468 6 6 Residential Real Estate 744 — — Installment and Other Consumer 620 — — $ 12,854 $ 26 $ 26 December 31, 2020 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,361 $ 1,441 $ — $ 1,002 $ 33 $ 33 CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 1,133 1,933 — 494 29 29 Direct financing leases 578 578 — 483 17 17 Residential real estate 719 719 — 476 — — Installment and other consumer 133 133 — 121 — — $ 3,924 $ 4,804 $ — $ 2,576 $ 79 $ 79 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 4,020 $ 4,020 $ 650 $ 1,555 $ — $ — CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 6,354 6,354 1,938 5,726 — — Direct financing leases — — — — — — Residential real estate 258 258 20 227 — — Installment and other consumer 72 72 72 70 — — $ 10,704 $ 10,704 $ 2,680 $ 7,578 $ — $ — Total Impaired Loans/Leases: C&I $ 5,381 $ 5,461 $ 650 $ 2,557 $ 33 $ 33 CRE Owner-occupied CRE — — — — — — Commercial construction, land development, and other land — — — — — — Other non-owner occupied CRE 7,487 8,287 1,938 6,220 29 29 Direct financing leases 578 578 — 483 17 17 Residential real estate 977 977 20 703 — — Installment and other consumer 205 205 72 191 — — $ 14,628 $ 15,508 $ 2,680 $ 10,154 $ 79 $ 79 |
Schedule of loans receivable by collateral type | As of June 30, 2021 Non Commercial Owner-Occupied Owner Occupied Assets Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - Revolving $ 2,475 $ — $ — $ — $ 250 $ — $ 2,725 C&I - Other* 852 — 2,591 6,224 30,508 — 40,175 3,327 — 2,591 6,224 30,758 — 42,900 CRE - owner occupied — — 5,425 — — — 5,425 CRE - non-owner occupied — 19,879 — — — — 19,879 Construction and Land Development — 10,478 75 — — — 10,553 Multi-family — — — — — — — 1-4 Family Real Estate — 2,532 2,151 — — — 4,683 Consumer — — 248 — — 23 271 $ 3,327 $ 32,889 $ 10,490 $ 6,224 $ 30,758 $ 23 $ 83,711 |
Schedule of financing receivable credit quality indicators based on internally assigned Risk rating | As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 177,045 $ 177,045 Special Mention (Rating 6) — — — — — — 3,112 3,112 Substandard (Rating 7) — — — — — — 2,725 2,725 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 182,882 $ 182,882 C&I - other Pass (Ratings 1 through 5) $ 316,725 $ 437,339 $ 208,611 $ 125,116 $ 117,406 $ 56,478 $ — $ 1,261,675 Special Mention (Rating 6) 146 693 — 69 495 1,259 — 2,662 Substandard (Rating 7) 8,481 6,952 16,690 366 60 6,131 — 38,680 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 325,352 $ 444,984 $ 225,301 $ 125,551 $ 117,961 $ 63,868 $ — $ 1,303,017 CRE - owner occupied Pass (Ratings 1 through 5) $ 65,781 $ 159,219 $ 63,344 $ 32,677 $ 23,452 $ 64,232 $ 10,344 $ 419,049 Special Mention (Rating 6) 901 — 178 244 672 1,266 — 3,261 Substandard (Rating 7) 214 — 1,921 1,261 2,028 — — 5,424 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 66,896 $ 159,219 $ 65,443 $ 34,182 $ 26,152 $ 65,498 $ 10,344 $ 427,734 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 81,897 $ 177,081 $ 91,579 $ 76,121 $ 72,401 $ 51,555 $ 6,570 $ 557,204 Special Mention (Rating 6) 5,019 8,617 1,846 15,288 4,201 5,673 1,151 41,795 Substandard (Rating 7) 419 — 17,000 499 957 — 1,005 19,880 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 87,335 $ 185,698 $ 110,425 $ 91,908 $ 77,559 $ 57,228 $ 8,726 $ 618,879 Construction and land development Pass (Ratings 1 through 5) $ 144,416 $ 231,399 $ 171,796 $ 117,381 $ 7,770 $ 2,613 $ 8,634 $ 684,009 Special Mention (Rating 6) — — — 593 — — — 593 Substandard (Rating 7) — — 10,478 — — — — 10,478 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 144,416 $ 231,399 $ 182,274 $ 117,974 $ 7,770 $ 2,613 $ 8,634 $ 695,080 Multi-family Pass (Ratings 1 through 5) $ 125,743 $ 206,255 $ 66,161 $ 47,105 $ 7,420 $ 11,359 $ 2,761 $ 466,804 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 125,743 $ 206,255 $ 66,161 $ 47,105 $ 7,420 $ 11,359 $ 2,761 $ 466,804 1-4 family real estate Pass (Ratings 1 through 5) $ 27,769 $ 33,721 $ 19,874 $ 12,928 $ 7,333 $ 8,990 $ 6,122 $ 116,737 Special Mention (Rating 6) 38 — — — 152 — — 190 Substandard (Rating 7) 2,532 — — — — — — 2,532 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 30,339 $ 33,721 $ 19,874 $ 12,928 $ 7,485 $ 8,990 $ 6,122 $ 119,459 Total $ 780,081 $ 1,261,276 $ 669,478 $ 429,648 $ 244,347 $ 209,556 $ 219,469 $ 3,813,855 |
Schedule of financing receivable credit quality indicators based on delinquency status | As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 63,299 $ 65,043 $ 43,563 $ 21,207 $ 7,542 $ 751 $ — $ 201,405 Nonperforming 69 290 423 72 85 23 — 962 Total C&I - other $ 63,368 $ 65,333 $ 43,986 $ 21,279 $ 7,627 $ 774 $ — $ 202,367 Direct financing leases Performing $ 4,358 $ 15,240 $ 15,002 $ 12,725 $ 6,349 $ 2,318 $ — $ 55,992 Nonperforming — — — 57 31 73 — 161 Total Direct financing leases $ 4,358 $ 15,240 $ 15,002 $ 12,782 $ 6,380 $ 2,391 $ — $ 56,153 Construction and land development Performing $ 3,111 $ 9,299 $ 213 $ 511 $ — $ — $ — $ 13,134 Nonperforming — — — — 75 — — 75 Total Construction and land development $ 3,111 $ 9,299 $ 213 $ 511 $ 75 $ — $ — $ 13,209 1-4 family real estate Performing $ 67,843 $ 86,487 $ 24,356 $ 13,340 $ 13,954 $ 56,239 $ 28 $ 262,247 Nonperforming — — 72 — — 364 — 436 Total 1-4 family real estate $ 67,843 $ 86,487 $ 24,428 $ 13,340 $ 13,954 $ 56,603 $ 28 $ 262,683 Consumer Performing $ 3,418 $ 6,882 $ 2,788 $ 2,321 $ 848 $ 3,034 $ 50,081 $ 69,372 Nonperforming 47 — — — 17 1 1 66 Total Consumer $ 3,465 $ 6,882 $ 2,788 $ 2,321 $ 865 $ 3,035 $ 50,082 $ 69,438 Total $ 142,145 $ 183,241 $ 86,417 $ 50,233 $ 28,901 $ 62,803 $ 50,110 $ 603,850 |
Financing receivable credit quality indicators | As of December 31, 2020 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,506,578 $ 488,478 $ 530,297 $ 999,931 $ 3,525,284 96.25 % Special Mention (Rating 6) 23,929 3,087 680 43,785 71,481 1.95 % Substandard (Rating 7) 24,710 4,906 10,478 25,987 66,081 1.80 % Doubtful (Rating 8) — — — — — — % $ 1,555,217 $ 496,471 $ 541,455 $ 1,069,703 $ 3,662,846 100.00 % |
Financing receivable credit quality indicators performance status | As of December 31, 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 170,712 $ 65,475 $ 251,099 $ 91,094 $ 578,380 99.56 % Nonperforming 794 541 1,022 208 2,565 0.44 % $ 171,506 $ 66,016 $ 252,121 $ 91,302 $ 580,945 100.00 % |
Number and recorded investment of TDRs, by type of concession | For the three months ended June 30, 2021 For the six months ended June 30, 2021 Pre- Post- Pre- Post- Number of Modification Modification Number of Modification Modification Loans/ Recorded Recorded Specific Loans/ Recorded Recorded Specific Classes of Loans/Leases Leases Investment Investment Allowance Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Extension of Maturity Consumer 1 $ 2,532 $ 2,532 $ 182 1 $ 2,532 $ 2,532 $ 182 CONCESSION - Interest Rate Adjusted Below Market 1-4 Family 1 $ 54 $ 54 $ 6 1 $ 54 $ 54 $ 6 Consumer 1 13 13 1 1 13 13 1 2 $ 67 $ 67 $ 7 2 $ 67 $ 67 $ 7 TOTAL 3 $ 2,599 $ 2,599 $ 189 3 $ 2,599 $ 2,599 $ 189 For the three months ended June 30, 2020 For the six months ended June 30, 2020 Pre- Post- Pre- Post- Number of Modification Modification Number of Modification Modification Loans/ Recorded Recorded Specific Loans/ Recorded Recorded Specific Classes of Loans/Leases Leases Investment Investment Allowance Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I — $ — $ — $ — 2 $ 111 $ 111 $ — Direct Financing Leases 2 78 78 — 3 145 145 — 2 $ 78 $ 78 $ — 5 $ 256 $ 256 $ — TOTAL 2 $ 78 $ 78 $ — 5 $ 256 $ 256 $ — |
Unfunded Loan Commitment | |
Notes Tables | |
Financing receivable credit quality indicators | Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (dollars in thousands) Balance, beginning $ 9,846 $ — $ — $ — Impact of adopting ASU 2016-13 — — 9,117 — Provisions charged to expense 141 — 870 — Balance, ending $ 9,987 $ — $ 9,987 $ — |
NOTE 4 - DERIVATIVES AND HEDG_2
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Summary of derivatives | June 30, 2021 December 31, 2020 (dollars in thousands) Assets: Interest rate caps - hedged $ 613 $ 259 Interest rate caps 158 67 Interest rate swaps - hedged 1,490 — Interest rate swaps 191,134 222,431 $ 193,395 $ 222,757 Liabilities: Interest rate swaps - hedged $ (4,958) $ (6,839) Interest rate swaps (191,134) (222,431) $ (196,092) $ (229,270) |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | June 30, 2021 December 31, 2020 (dollars in thousands) Cash $ 22,660 $ 45,719 U.S govt. sponsored agency securities 3,612 3,628 Municipal securities 85,895 85,937 Residential mortgage-backed and related securities 78,733 89,646 $ 190,900 $ 224,930 |
Interest rate cap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2021 December 31, 2020 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ 3 $ 3 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 8 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 3 3 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 35 15 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 73 31 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 37 15 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 110 46 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 229 94 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 115 47 $ 300,000 $ 613 $ 259 |
Changes in the fair value of the underlying derivative contracts | Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2021 December 31, 2020 (dollars in thousands) 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.90 % $ 3 $ 2 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 35 15 3/1/2020 3/1/2025 Derivatives - Assets 25,000 1.90 120 50 $ 75,000 $ 158 $ 67 |
Interest rate swap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2021 December 31, 2020 (dollars in thousands) QCBT - Loans 7/1/2021 7/1/2031 Derivatives - Assets 35,000 1.40 % 2.81 % 351 N/A CRBT - Loans 7/1/2021 7/1/2031 Derivatives - Assets 50,000 1.40 % 2.81 % 502 N/A CSB - Loans 7/1/2021 7/1/2031 Derivatives - Assets 40,000 1.40 % 2.81 % 386 N/A SFCB - Loans 7/1/2021 7/1/2031 Derivatives - Assets 25,000 1.40 % 2.81 % 251 N/A $ 150,000 $ 1,490 $ N/A Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2021 December 31, 2020 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.00 % 5.85 % (1,282) (1,767) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.00 % 5.85 % (1,025) (1,414) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.74 % 4.54 % (1,246) (1,721) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.30 % 5.17 % (383) (529) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 1.87 % 4.75 % (447) (616) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 1.87 % 4.75 % (575) (792) $ 39,000 $ (4,958) $ (6,839) |
Changes in the fair value of the underlying derivative contracts | June 30, 2021 December 31, 2020 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 3,149,265 $ 191,134 $ 1,539,602 $ 222,431 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 3,149,265 $ 191,134 $ 1,539,602 $ 222,431 |
NOTE 5 - INCOME TAXES (Tables)
NOTE 5 - INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Reconciliation of the expected federal income tax expense | For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 5,699 21.0 % $ 3,472 21.0 % $ 10,219 21.0 % $ 6,226 21.0 % Tax exempt income, net (1,802) (6.6) (1,247) (7.5) (3,521) (7.2) (2,472) (8.3) Bank-owned life insurance (95) (0.4) (115) (0.7) (194) (0.4) (170) (0.6) State income taxes, net of federal benefit, current year 1,247 4.6 776 4.7 2,271 4.7 1,453 4.9 Tax credits (57) (0.2) (116) (0.7) (114) (0.2) (232) (0.8) Excess tax benefit on stock options exercised and restricted stock awards vested (40) (0.1) 2 — (204) (0.4) (262) (0.9) Other (164) (0.6) 26 0.1 (128) (0.3) 139 0.5 Federal and state income tax expense $ 4,788 17.6 % $ 2,798 16.9 % $ 8,329 17.2 % $ 4,682 15.8 % |
NOTE 6 - EARNINGS PER SHARE (Ta
NOTE 6 - EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings per Share | |
Schedule of computation of earnings per share on a basic and diluted basis | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands, except share data) Net income $ 22,349 $ 13,739 $ 40,331 $ 24,967 Basic EPS $ 1.41 $ 0.87 $ 2.55 $ 1.58 Diluted EPS $ 1.39 $ 0.86 $ 2.52 $ 1.56 Weighted average common shares outstanding 15,813,932 15,747,056 15,808,788 15,771,926 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 231,307 148,280 226,606 185,032 Weighted average common and common equivalent shares outstanding 16,045,239 15,895,336 16,035,394 15,956,958 |
NOTE 7 - FAIR VALUE (Tables)
NOTE 7 - FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of assets measured at fair value | Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 14,670 $ — $ 14,670 $ — Residential mortgage-backed and related securities 106,138 — 106,138 — Municipal securities 169,320 — 169,320 — Asset-backed securities 31,779 — 31,779 — Other securities 15,379 — 15,379 — Derivatives 193,395 — 193,395 — Total assets measured at fair value $ 530,681 $ — $ 530,681 $ — Derivatives $ 196,092 $ — $ 196,092 $ — Total liabilities measured at fair value $ 196,092 $ — $ 196,092 $ — December 31, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 15,336 $ — $ 15,336 $ — Residential mortgage-backed and related securities 132,842 — 132,842 — Municipal securities 152,408 — 152,408 — Asset-backed securities 40,683 — 40,683 — Other securities 20,697 — 20,697 — Derivatives 222,757 — 222,757 — Total assets measured at fair value $ 584,723 $ — $ 584,723 $ — Derivatives $ 229,270 $ — $ 229,270 $ — Total liabilities measured at fair value $ 229,270 $ — $ 229,270 $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2021: Loans/leases evaluated individually $ 85,276 $ — $ — $ 85,276 OREO 1,966 — — 1,966 $ 87,242 $ — $ — $ 87,242 December 31, 2020: Loans/leases evaluated individually $ 9,926 $ — $ — $ 9,926 OREO 22 — — 22 $ 9,948 $ — $ — $ 9,948 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2021 2020 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 85,276 $ 9,926 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 1,966 22 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % |
Schedule of assets and liabilities measured at fair value | Fair Value As of June 30, 2021 As of December 31, 2020 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 55,598 $ 55,598 $ 61,329 $ 61,329 Federal funds sold Level 2 1,340 1,340 9,080 9,080 Interest-bearing deposits at financial institutions Level 2 87,440 87,440 86,596 86,596 Investment securities: HTM Level 2 473,159 523,442 476,165 521,277 AFS Level 2 337,286 337,286 361,966 361,966 Loans/leases receivable, net Level 3 78,959 85,276 9,191 9,926 Loans/leases receivable, net Level 2 4,259,852 4,174,761 4,157,562 4,112,735 Derivatives Level 2 193,395 193,395 222,757 222,757 Deposits: Nonmaturity deposits Level 2 4,232,439 4,232,439 4,138,478 4,138,478 Time deposits Level 2 456,496 453,483 460,659 465,681 Short-term borrowings Level 2 7,070 7,070 5,430 5,430 FHLB advances Level 2 40,000 39,996 15,000 14,998 Subordinated notes Level 2 113,771 116,441 118,691 112,406 Junior subordinated debentures Level 2 38,067 30,799 37,993 30,618 Derivatives Level 2 196,092 196,092 229,270 229,270 |
NOTE 8 - BUSINESS SEGMENT INF_2
NOTE 8 - BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Intercompany Consolidated QCBT CRBT CSB SFCB All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2021 Total revenue $ 21,676 $ 26,498 $ 10,809 $ 9,181 $ 137 $ (102) $ 68,199 Net interest income 16,152 14,005 8,672 6,479 (2,119) 327 43,516 Provision for credit losses 136 (692) 756 (200) — — — Net income (loss) from continuing operations 8,679 11,145 3,109 3,685 22,320 (26,589) 22,349 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Three Months Ended June 30, 2020 Total revenue $ 21,712 $ 35,505 $ 9,853 $ 9,533 $ 18,461 $ (17,788) $ 77,276 Net interest income 15,653 12,820 7,538 6,201 (1,509) 245 40,948 Provision for loan/lease losses 7,539 7,160 2,811 2,405 — — 19,915 Net income (loss) from continuing operations 3,999 11,043 569 1,899 13,650 (17,421) 13,739 Goodwill 3,223 14,980 9,888 45,975 182 — 74,248 Intangibles — 2,437 3,643 6,344 1,448 — 13,872 Total assets 1,984,245 2,021,043 903,648 745,470 715,740 (765,385) 5,604,761 Six Months Ended June 30, 2021 Total revenue $ 42,960 $ 56,855 $ 21,232 $ 17,927 $ 503 $ (224) $ 139,253 Net interest income 31,938 27,611 17,040 12,548 (4,221) 575 85,491 Provision for loan/lease losses 2,248 1,492 2,122 851 — — 6,713 Net income (loss) 15,843 22,541 5,171 5,954 40,268 (49,446) 40,331 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Six Months Ended June 30, 2020 Total revenue $ 43,399 $ 58,384 $ 20,074 $ 18,224 $ 34,875 $ (33,502) $ 141,454 Net interest income 30,080 24,206 15,038 11,843 (2,998) 477 78,646 Provision for loan/lease losses 10,722 9,410 4,775 3,375 — — 28,282 Net income (loss) from continuing operations 9,723 17,504 1,635 4,105 24,674 (32,674) 24,967 Goodwill 3,223 14,980 9,888 45,975 182 — 74,248 Intangibles — 2,437 3,643 6,344 1,448 — 13,872 Total assets 1,984,245 2,021,043 903,648 745,470 715,740 (765,385) 5,604,761 |
NOTE 9 - REGULATORY CAPITAL R_2
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of the company and the subsidiary banks actual capital amounts and ratios | For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of June 30, 2021: Company: Total risk-based capital $ 760,593 14.72 % $ 413,445 > 8.00 % $ 542,647 > 10.50 % $ 516,806 > 10.00 % Tier 1 risk-based capital 581,919 11.26 310,084 > 6.00 439,285 > 8.50 413,445 > 8.00 Tier 1 leverage 581,919 10.29 226,250 > 4.00 226,250 > 4.00 282,812 > 5.00 Common equity Tier 1 543,852 10.52 232,563 > 4.50 361,764 > 7.00 335,924 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 228,180 13.15 % $ 138,799 > 8.00 % $ 182,174 > 10.50 % $ 173,499 > 10.00 % Tier 1 risk-based capital 206,355 11.89 104,099 > 6.00 147,474 > 8.50 138,799 > 8.00 Tier 1 leverage 206,355 9.75 84,699 > 4.00 84,699 > 4.00 105,874 > 5.00 Common equity Tier 1 206,355 11.89 78,075 > 4.50 121,449 > 7.00 112,774 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 243,211 13.86 % $ 140,431 > 8.00 % $ 184,316 > 10.50 % $ 175,539 > 10.00 % Tier 1 risk-based capital 221,202 12.60 105,323 > 6.00 149,208 > 8.50 140,431 > 8.00 Tier 1 leverage 221,202 11.95 74,072 > 4.00 74,072 > 4.00 92,590 > 5.00 Common equity Tier 1 221,202 12.60 78,992 > 4.50 122,877 > 7.00 114,100 > 6.50 Community State Bank: Total risk-based capital $ 114,512 11.99 % $ 76,389 > 8.00 % $ 100,261 > 10.50 % $ 95,487 > 10.00 % Tier 1 risk-based capital 102,521 10.74 57,292 > 6.00 81,164 > 8.50 76,389 > 8.00 Tier 1 leverage 102,521 9.78 41,943 > 4.00 41,943 > 4.00 52,429 > 5.00 Common equity Tier 1 102,521 10.74 42,969 > 4.50 66,841 > 7.00 62,066 > 6.50 Springfield First Community Bank: Total risk-based capital $ 91,663 12.60 % $ 58,189 > 8.00 % $ 76,373 > 10.50 % $ 72,736 > 10.00 % Tier 1 risk-based capital 82,554 11.35 43,641 > 6.00 61,825 > 8.50 58,189 > 8.00 Tier 1 leverage 82,554 10.53 31,351 > 4.00 31,351 > 4.00 39,189 > 5.00 Common equity Tier 1 82,554 11.35 32,731 > 4.50 50,915 > 7.00 47,278 > 6.50 For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Company: Total risk-based capital $ 721,004 14.95 % $ 385,832 > 8.00 % $ 506,404 > 10.50 % $ 482,290 > 10.00 % Tier 1 risk-based capital 546,729 11.34 289,374 > 6.00 409,946 > 8.50 385,832 > 8.00 Tier 1 leverage 546,729 9.49 230,345 > 4.00 230,345 > 4.00 287,931 > 5.00 Common equity Tier 1 508,736 10.55 217,030 > 4.50 337,603 > 7.00 313,488 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 213,608 12.24 % $ 139,581 > 8.00 % $ 183,200 > 10.50 % $ 174,477 > 10.00 % Tier 1 risk-based capital 191,693 10.99 104,686 > 6.00 148,305 > 8.50 139,581 > 8.00 Tier 1 leverage 191,693 8.48 90,430 > 4.00 90,430 > 4.00 113,038 > 5.00 Common equity Tier 1 191,693 10.99 78,514 > 4.50 122,134 > 7.00 113,410 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 217,227 13.14 % $ 132,269 > 8.00 % $ 173,603 > 10.50 % $ 165,336 > 10.00 % Tier 1 risk-based capital 196,438 11.88 99,202 > 6.00 140,536 > 8.50 132,269 > 8.00 Tier 1 leverage 196,438 10.01 78,535 > 4.00 78,535 > 4.00 98,169 > 5.00 Common equity Tier 1 196,438 11.88 74,401 > 4.50 115,735 > 7.00 107,469 > 6.50 Community State Bank: Total risk-based capital $ 108,040 12.69 % $ 68,117 > 8.00 % $ 89,404 > 10.50 % $ 85,146 > 10.00 % Tier 1 risk-based capital 97,350 11.43 51,088 > 6.00 72,374 > 8.50 68,117 > 8.00 Tier 1 leverage 97,350 10.27 37,930 > 4.00 37,930 > 4.00 47,412 > 5.00 Common equity Tier 1 97,350 11.43 38,316 > 4.50 59,602 > 7.00 55,345 > 6.50 Springfield First Community Bank: Total risk-based capital $ 90,334 14.35 % $ 50,357 > 8.00 % $ 66,094 > 10.50 % $ 62,947 > 10.00 % Tier 1 risk-based capital 77,668 12.34 37,768 > 6.00 53,505 > 8.50 50,357 > 8.00 Tier 1 leverage 77,668 10.87 28,575 > 4.00 28,575 > 4.00 35,719 > 5.00 Common equity Tier 1 77,668 12.34 28,326 > 4.50 44,063 > 7.00 40,915 > 6.50 |
NOTE 1 - SUMMARY OF SIGNIFICA_4
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended | ||||||
Jun. 30, 2021USD ($)subsidiarysegment | Mar. 31, 2021USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Retained earnings | $ 335,424,000 | $ 300,804,000 | |||||
Less allowance | 78,894,000 | $ 81,831,000 | $ 84,376,000 | 84,376,000 | $ 60,827,000 | $ 42,233,000 | $ 36,001,000 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 174,000 | 174,000 | |||||
Number of subsidiaries commercial banks | subsidiary | 4 | ||||||
Number of portfolio segments | segment | 8 | ||||||
Number of years borrower classified to special mention class | 1 year | ||||||
Lending Threshold Requiring Additional Loan Review | $ 1,000,000 | ||||||
Other Assets | |||||||
Accrued investment income receivable | 17,000,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Less allowance | (8,102,000) | ||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 183,000 | ||||||
Off-Balance Sheet, Credit Loss, Liability | 9,117,000 | ||||||
Accounting Standards Update 2016-13 | |||||||
Retained earnings | $ 937,000 | ||||||
Less allowance | (8,102,000) | ||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 183,000 | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Retained earnings | 937,000 | ||||||
Less allowance | (8,100,000) | ||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 183,000 | ||||||
Off-Balance Sheet, Credit Loss, Liability | 9,100,000 | ||||||
Subsidiaries [Member] | Fixed Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 15 years | ||||||
Commercial Portfolio Segment [Member] | |||||||
Less allowance | $ 35,502,000 | 35,421,000 | 35,421,000 | $ 25,748,000 | $ 18,151,000 | $ 16,072,000 | |
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Less allowance | $ (35,421,000) | ||||||
Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||||
Less allowance | $ (35,421,000) | ||||||
Minimum | |||||||
Minimum number of months of repayment performance to restore to accrual status, monthly payment loans | 6 months | ||||||
Residual Value Percent of Cost | 3.00% | ||||||
Minimum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 1 year | ||||||
Minimum | Commercial Portfolio Segment [Member] | Term Loan [Member] | |||||||
Financing receivable, average term | 3 years | ||||||
Maximum | |||||||
Minimum number of years of repayment performance to restore to accrual status, quarterly or semi-monthly payment loans | 1 year | ||||||
Residual Value Percent of Cost | 25.00% | ||||||
Maximum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 5 years | ||||||
Maximum | Low Income Housing Tax Credit Permanent Loans [Member] | |||||||
Financing receivable, term | 20 years | ||||||
Maximum | Lines Of Credit [Member] | |||||||
Financing receivable, term | 365 days | ||||||
Maximum | Commercial Portfolio Segment [Member] | Term Loan [Member] | |||||||
Financing receivable, term | 7 years | ||||||
Financing receivable, average term | 5 years |
NOTE 1 - SUMMARY OF SIGNIFICA_5
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASU 2016-13 (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 174 | $ 174 | |||||
Less allowance for estimated losses on loans/leases | 78,894 | 81,831 | $ 84,376 | $ 84,376 | $ 60,827 | $ 42,233 | $ 36,001 |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 183 | ||||||
Less allowance for estimated losses on loans/leases | 76,274 | ||||||
Off-Balance Sheet, Credit Loss, Liability | 9,117 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 183 | ||||||
Less allowance for estimated losses on loans/leases | (8,102) | ||||||
Off-Balance Sheet, Credit Loss, Liability | 9,117 | ||||||
Commercial Portfolio Segment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 35,502 | 35,421 | 35,421 | 25,748 | 18,151 | 16,072 | |
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | (35,421) | ||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 42,161 | 42,161 | 29,123 | 19,269 | 15,379 | ||
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | (42,161) | ||||||
Construction and Land Development [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 13,640 | ||||||
Multi-family | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 6,977 | 6,278 | |||||
Multi-family | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 5,836 | ||||||
Multi-family | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 5,836 | ||||||
Direct financing leases | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 1,976 | 1,764 | 1,764 | 1,639 | 1,303 | 1,464 | |
Direct financing leases | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | (1,764) | ||||||
1-4 family real estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 4,925 | 5,165 | |||||
1-4 family real estate | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 5,042 | ||||||
1-4 family real estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 5,042 | ||||||
Residential real estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 3,732 | 3,732 | 3,010 | 2,313 | 1,948 | ||
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | (3,732) | ||||||
Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 919 | 1,045 | 1,298 | 1,298 | |||
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 1,161 | ||||||
Consumer | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | (137) | ||||||
Installment and other consumer loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | $ 1,307 | $ 1,197 | $ 1,138 | ||||
C&I - revolving | Commercial Portfolio Segment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 3,177 | 3,547 | |||||
C&I - revolving | Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 2,982 | ||||||
C&I - revolving | Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 2,982 | ||||||
C&I - other | Commercial Portfolio Segment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 32,325 | 33,167 | |||||
C&I - other | Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 29,130 | ||||||
C&I - other | Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 29,130 | ||||||
C&I - other | Direct financing leases | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 685 | 2,200 | $ 1,800 | ||||
CRE - owner occupied | Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 8,696 | ||||||
CRE - owner occupied | Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 8,696 | ||||||
CRE - non owner occupied | Commercial Real Estate Portfolio Segment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 8,911 | 11,155 | |||||
CRE - non owner occupied | Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 11,428 | ||||||
CRE - non owner occupied | Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 11,428 | ||||||
Construction Loans [Member] | Construction and Land Development [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | $ 13,640 | $ 12,327 | |||||
Construction Loans [Member] | Construction and Land Development [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | 11,999 | ||||||
Construction Loans [Member] | Construction and Land Development [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Less allowance for estimated losses on loans/leases | $ 11,999 |
NOTE 2 - INVESTMENT SECURITIE_2
NOTE 2 - INVESTMENT SECURITIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)itemissuerstate | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)itemissuerstate | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)stateissueritem | |
Number of securities | item | 630 | 630 | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | item | 44 | 44 | |||
Aggregate losses of securities (as a percent) | 0.11% | 0.11% | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | item | 4 | 4 | |||
Sale of securities | $ | $ 4,334 | $ 6,327 | $ 23,874 | $ 6,327 | |
Gain on sale | $ | $ 134 | $ 134 | |||
Number Of Charters Owning Municipal Securities | item | 4 | ||||
Revenue Bonds | |||||
Number of issuers | issuer | 2 | 2 | 2 | ||
Percentage threshold | 5.00% | 5.00% | 5.00% | ||
Municipal securities | General Obligation Bonds | |||||
Number of issuers | item | 117 | 117 | 117 | ||
Other investments | $ | $ 116,600 | $ 116,600 | $ 116,700 | ||
Number of states holding investments | state | 21 | 21 | 21 | ||
Municipal securities | General Obligation Bonds | Minimum | |||||
Other investments | $ | $ 5,000 | $ 5,000 | $ 5,000 | ||
Municipal securities | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | state | 8 | 8 | 8 | ||
Municipal securities | Revenue Bonds | |||||
Number of issuers | item | 175 | 175 | 191 | ||
Other investments | $ | $ 575,100 | $ 575,100 | $ 555,900 | ||
Number of states holding investments | 25 | 25 | 26 | ||
Municipal securities | Revenue Bonds | Minimum | |||||
Other investments | $ | $ 5,000 | $ 5,000 | $ 5,000 | ||
Municipal securities | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | 13 | 13 | 12 |
NOTE 2 - INVESTMENT SECURITIE_3
NOTE 2 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Securities held to maturity: | |||
Securities held to maturity, at amortized cost | $ 473,333 | $ 476,165 | |
Securities held to maturity, gross unrealized gains | 50,129 | 45,360 | |
Securities held to maturity, gross unrealized (losses) | (20) | (248) | |
Securities held to maturity, fair value | 523,442 | 521,277 | |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 473,159 | 476,165 | |
Allowance for credit losses HTM securities | 174 | $ 174 | |
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 326,388 | 350,060 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11,781 | 12,430 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (883) | (524) | |
Debt Securities, Available-for-sale | 337,286 | 361,966 | |
Municipal securities. | |||
Securities held to maturity: | |||
Securities held to maturity, at amortized cost | 472,283 | 475,115 | |
Securities held to maturity, gross unrealized gains | 50,129 | 45,360 | |
Securities held to maturity, gross unrealized (losses) | (20) | (248) | |
Securities held to maturity, fair value | 522,392 | 520,227 | |
Allowance for credit losses HTM securities | 173 | 173 | |
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 163,607 | 147,241 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5,861 | 5,215 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (148) | (48) | |
Debt Securities, Available-for-sale | 169,320 | 152,408 | |
U.S. govt. sponsored agency securities | |||
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 14,310 | 14,936 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 504 | 447 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (144) | (47) | |
Debt Securities, Available-for-sale | 14,670 | 15,336 | |
Residential mortgage-backed and related securities | |||
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 102,625 | 127,670 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,094 | 5,510 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (581) | (338) | |
Debt Securities, Available-for-sale | 106,138 | 132,842 | |
Asset-backed securities | |||
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 30,707 | 39,663 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,072 | 1,111 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (91) | ||
Debt Securities, Available-for-sale | 31,779 | 40,683 | |
Other Securities | |||
Securities held to maturity: | |||
Securities held to maturity, at amortized cost | 1,050 | 1,050 | |
Securities held to maturity, fair value | 1,050 | 1,050 | |
Allowance for credit losses HTM securities | 1 | $ 1 | |
Securities available for sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 15,139 | 20,550 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 250 | 147 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (10) | ||
Debt Securities, Available-for-sale | $ 15,379 | $ 20,697 |
NOTE 2 - INVESTMENT SECURITIE_4
NOTE 2 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | $ 47,849 | $ 57,742 |
Securities available for sale, less than 12 months, gross unrealized losses | (882) | (485) |
Securities available for sale, 12 months or more, fair value | 153 | 9,945 |
Securities available for sale, 12 months or more, gross unrealized losses | (1) | (39) |
Securities available for sale, fair value | 48,002 | 67,687 |
Securities available for sale, gross unrealized losses | (883) | (524) |
Municipal securities. | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 14,440 | 8,407 |
Securities held to maturity, less than 12 months, gross unrealized losses | (20) | (248) |
Securities held to maturity, fair value | 14,440 | 8,407 |
Securities held to maturity, gross unrealized losses | (20) | (248) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 13,608 | 10,110 |
Securities available for sale, less than 12 months, gross unrealized losses | (148) | (48) |
Securities available for sale, fair value | 13,608 | 10,110 |
Securities available for sale, gross unrealized losses | (148) | (48) |
U.S. govt. sponsored agency securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 3,067 | 3,199 |
Securities available for sale, less than 12 months, gross unrealized losses | (144) | (47) |
Securities available for sale, fair value | 3,067 | 3,199 |
Securities available for sale, gross unrealized losses | (144) | (47) |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 26,967 | 37,549 |
Securities available for sale, less than 12 months, gross unrealized losses | (580) | (338) |
Securities available for sale, 12 months or more, fair value | 153 | |
Securities available for sale, 12 months or more, gross unrealized losses | (1) | |
Securities available for sale, fair value | 27,120 | 37,549 |
Securities available for sale, gross unrealized losses | (581) | (338) |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 6,884 | |
Securities available for sale, less than 12 months, gross unrealized losses | (52) | |
Securities available for sale, 12 months or more, fair value | 9,945 | |
Securities available for sale, 12 months or more, gross unrealized losses | (39) | |
Securities available for sale, fair value | 16,829 | |
Securities available for sale, gross unrealized losses | $ (91) | |
Other Securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 4,207 | |
Securities available for sale, less than 12 months, gross unrealized losses | (10) | |
Securities available for sale, fair value | 4,207 | |
Securities available for sale, gross unrealized losses | $ (10) |
NOTE 2 - INVESTMENT SECURITIE_5
NOTE 2 - INVESTMENT SECURITIES - Activity in Allowance for Credit Losses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Provision for credit loss expense | $ (9) |
Balance, ending | 174 |
Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 183 |
Municipal securities. | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Provision for credit loss expense | (9) |
Balance, ending | 173 |
Municipal securities. | Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 182 |
Other Securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 1 |
Other Securities | Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | $ 1 |
NOTE 2 - INVESTMENT SECURITIE_6
NOTE 2 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INVESTMENT SECURITIES | ||||
Proceeds from sales of securities | $ 4,334 | $ 6,327 | $ 23,874 | $ 6,327 |
Gross gains from sales of securities | 134 | 134 | ||
Gross losses from sales of securities | $ (88) | $ (69) | $ (88) | $ (69) |
NOTE 2 - INVESTMENT SECURITIE_7
NOTE 2 - INVESTMENT SECURITIES - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities held to maturity: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 2,882 | |
Securities held to maturity, due in one year or less, fair value | 2,910 | |
Securities held to maturity, due after one year through five years, amortized cost | 29,592 | |
Securities held to maturity, due after one year through five years, fair value | 30,281 | |
Securities held to maturity, due after five years, amortized cost | 440,859 | |
Securities held to maturity, due after five years, fair value | 490,251 | |
Securities held to maturity, amortized cost | 473,333 | |
Securities held to maturity, fair value | 523,442 | $ 521,277 |
Securities available for sale: | ||
Securities available for sale, due in one year or less, amortized cost | 1,471 | |
Securities available for sale, Due in one year or less, fair value | 1,492 | |
Securities available for sale, due after one year through five years, amortized cost | 11,927 | |
Securities available for sale, Due after one year through five years, fair value | 12,175 | |
Securities available for sale, due after five years, amortized cost | 179,658 | |
Securities available for sale, due after five years, fair value | 185,702 | |
Securities available for sale, single maturity, amortized cost | 193,056 | |
Securities available for sale, single maturity, fair value | 199,369 | |
Securities available for sale, amortized cost | 326,388 | 350,060 |
Securities available for sale, fair value | 337,286 | 361,966 |
Securities available for sale, callable, amortized cost | 326,388 | |
Securities available for sale, callable, fair value | 337,286 | |
Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 173,288 | |
Securities available for sale, fair value | 178,974 | |
Municipal securities. | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 522,392 | 520,227 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 163,607 | 147,241 |
Securities available for sale, fair value | 169,320 | 152,408 |
Municipal securities. | Callable Securities [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 272,039 | |
Securities held to maturity, callable, fair value | 283,607 | |
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 158,149 | |
Securities available for sale, callable, fair value | 163,595 | |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 30,707 | 39,663 |
Securities available for sale, fair value | 31,779 | 40,683 |
Securities available for sale, callable, amortized cost | 30,707 | |
Securities available for sale, callable, fair value | 31,778 | |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 102,625 | 127,670 |
Securities available for sale, fair value | 106,138 | 132,842 |
Securities available for sale, callable, amortized cost | 102,625 | |
Securities available for sale, callable, fair value | 106,139 | |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 1,050 | 1,050 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 15,139 | 20,550 |
Securities available for sale, fair value | 15,379 | $ 20,697 |
Other Securities | Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 15,139 | |
Securities available for sale, callable, fair value | $ 15,379 |
NOTE 3 - LOANS_LEASES RECEIVA_3
NOTE 3 - LOANS/LEASES RECEIVABLE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($)itemloan | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)item | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2021USD ($)loan | Jun. 30, 2021USD ($)contract | Jun. 30, 2020USD ($)itemloan | Mar. 31, 2021USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Loans and leases | $ 4,417,705 | $ 4,417,705 | $ 4,417,705 | $ 4,417,705 | $ 4,417,705 | $ 4,243,791 | |||||||
Loans receivable held for sale | 4,459 | 4,459 | 4,459 | 4,459 | 4,459 | 3,758 | |||||||
Accruing TDRs | 3,100 | 3,100 | 3,100 | 3,100 | 3,100 | 1,700 | |||||||
Nonaccrual Loans/Leases | 8,230 | 8,230 | 8,230 | 8,230 | 8,230 | 13,940 | |||||||
Accruing Past Due 90 Days or More | $ 57 | 57 | $ 57 | 57 | 57 | 3 | |||||||
Number of nonaccrual restructured loans | loan | 0 | 0 | |||||||||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 2 | 93 | 1 | 0 | 3 | |||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 2,599 | $ 78 | 2,599 | $ 256 | |||||||||
Number of TDRs restructured and written off | item | 7 | ||||||||||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 354 | ||||||||||||
Less allowance for estimated losses on loans/leases | 78,894 | 60,827 | $ 36,001 | $ 36,001 | 78,894 | $ 78,894 | 78,894 | 78,894 | 60,827 | $ 81,831 | $ 84,376 | 84,376 | $ 42,233 |
Provision for Loan, Lease, and Other Losses | 19,915 | 6,713 | 28,282 | ||||||||||
Allowance for Loan and Lease Losses, Write-offs | 3,674 | 1,450 | 4,387 | 3,785 | |||||||||
Recoveries on loans/leases previously charged off | $ 878 | $ 129 | $ 1,155 | $ 329 | |||||||||
Number of Loans / Leases | 3 | 2 | 3 | 5 | |||||||||
m2 Lease Funds, LLC | |||||||||||||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | $ 4,700 | $ 4,700 | $ 4,700 | $ 4,700 | $ 4,700 | ||||||||
Loan Relief Program | |||||||||||||
Financing Receivable, Modification, Number of Contracts | 29,000,000 | 0 | |||||||||||
Financial Receivables Loan Modification, Percent | 0.11% | 0.11% | 0.11% | 0.11% | 0.11% | ||||||||
One Customer [Member] | |||||||||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 55 | ||||||||||||
Nonaccrual [Member] | |||||||||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 2,600 | $ 2,600 | |||||||||||
Number of Loans / Leases | item | 2 | 2 | |||||||||||
Troubled Debt Restructurings [Member] | |||||||||||||
Nonaccrual Loans/Leases | 984 | ||||||||||||
Residential real estate | |||||||||||||
Loans and leases | 252,121 | ||||||||||||
Residential real estate loan held for sale | $ 4,500 | $ 4,500 | $ 4,500 | $ 4,500 | $ 4,500 | 3,800 | |||||||
Nonaccrual Loans/Leases | 1,022 | ||||||||||||
Less allowance for estimated losses on loans/leases | $ 3,010 | 1,948 | 1,948 | $ 3,010 | 3,732 | 3,732 | 2,313 | ||||||
Provision for Loan, Lease, and Other Losses | 697 | 1,033 | |||||||||||
Recoveries on loans/leases previously charged off | 29 | ||||||||||||
Commercial Portfolio Segment [Member] | |||||||||||||
Loans and leases | 1,688,266 | 1,688,266 | 1,688,266 | 1,688,266 | 1,688,266 | 1,726,723 | |||||||
Nonaccrual Loans/Leases | 4,807 | ||||||||||||
Less allowance for estimated losses on loans/leases | 35,502 | 25,748 | 16,072 | 16,072 | 35,502 | 35,502 | 35,502 | 35,502 | 25,748 | 35,421 | 35,421 | 18,151 | |
Provision for Loan, Lease, and Other Losses | 7,859 | 11,556 | |||||||||||
Allowance for Loan and Lease Losses, Write-offs | 340 | 1,979 | |||||||||||
Recoveries on loans/leases previously charged off | 78 | 99 | |||||||||||
Commercial Portfolio Segment [Member] | C&I - other | |||||||||||||
Loans and leases | 1,505,384 | 1,505,384 | 1,505,384 | 1,505,384 | 1,505,384 | ||||||||
Nonaccrual Loans/Leases | 4,959 | 4,959 | 4,959 | 4,959 | 4,959 | ||||||||
Accruing Past Due 90 Days or More | 57 | 57 | 57 | 57 | 57 | ||||||||
Less allowance for estimated losses on loans/leases | 32,325 | 32,325 | 32,325 | 32,325 | 32,325 | 33,167 | |||||||
Allowance for Loan and Lease Losses, Write-offs | 998 | 1,666 | |||||||||||
Recoveries on loans/leases previously charged off | 158 | 314 | |||||||||||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC | |||||||||||||
Loans and leases | 202,400 | 202,400 | 202,400 | 202,400 | 202,400 | 171,500 | |||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||||
Loans and leases | 2,107,629 | ||||||||||||
Less allowance for estimated losses on loans/leases | 29,123 | 15,379 | 15,379 | 29,123 | 42,161 | 42,161 | 19,269 | ||||||
Provision for Loan, Lease, and Other Losses | 10,365 | 14,181 | |||||||||||
Allowance for Loan and Lease Losses, Write-offs | 511 | 511 | |||||||||||
Recoveries on loans/leases previously charged off | 74 | ||||||||||||
Commercial Real Estate Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | |||||||||||||
Nonaccrual Loans/Leases | 836 | ||||||||||||
Direct financing leases | |||||||||||||
Loans and leases | 56,153 | 56,153 | 56,153 | 56,153 | 56,153 | 66,016 | |||||||
Nonaccrual Loans/Leases | 161 | 161 | 161 | 161 | 161 | 406 | |||||||
Less allowance for estimated losses on loans/leases | 1,976 | 1,639 | 1,464 | 1,464 | 1,976 | 1,976 | 1,976 | 1,976 | 1,639 | 1,764 | 1,764 | 1,303 | |
Provision for Loan, Lease, and Other Losses | 887 | 1,281 | |||||||||||
Allowance for Loan and Lease Losses, Write-offs | 595 | 1,195 | |||||||||||
Recoveries on loans/leases previously charged off | 44 | 89 | |||||||||||
Direct financing leases | PPP loans | |||||||||||||
Loans and leases | 147,500 | 147,500 | 147,500 | 147,500 | 147,500 | 273,100 | |||||||
Direct financing leases | C&I - other | |||||||||||||
Less allowance for estimated losses on loans/leases | 685 | 685 | 685 | 685 | 685 | 2,200 | 1,800 | ||||||
Provision for Loan, Lease, and Other Losses | 144 | 279 | |||||||||||
Allowance for Loan and Lease Losses, Write-offs | 130 | (328) | |||||||||||
Recoveries on loans/leases previously charged off | 58 | 134 | |||||||||||
Threshold for Related Party Loans Evaluated | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | ||||||||
Direct financing leases | Troubled Debt Restructurings [Member] | |||||||||||||
Nonaccrual Loans/Leases | 100 | ||||||||||||
Consumer | |||||||||||||
Loans and leases | 69,438 | 69,438 | 69,438 | 69,438 | 69,438 | ||||||||
Nonaccrual Loans/Leases | 66 | 66 | 66 | 66 | 66 | ||||||||
Less allowance for estimated losses on loans/leases | 919 | 919 | $ 919 | $ 919 | $ 919 | $ 1,045 | $ 1,298 | 1,298 | |||||
Allowance for Loan and Lease Losses, Write-offs | 4 | 5 | |||||||||||
Recoveries on loans/leases previously charged off | $ 207 | $ 309 | |||||||||||
Installment and other consumer loans | |||||||||||||
Loans and leases | 91,302 | ||||||||||||
Nonaccrual Loans/Leases | 205 | ||||||||||||
Accruing Past Due 90 Days or More | 3 | ||||||||||||
Less allowance for estimated losses on loans/leases | 1,307 | $ 1,138 | $ 1,138 | 1,307 | $ 1,197 | ||||||||
Provision for Loan, Lease, and Other Losses | 107 | 231 | |||||||||||
Allowance for Loan and Lease Losses, Write-offs | 4 | 100 | |||||||||||
Recoveries on loans/leases previously charged off | $ 7 | $ 38 | |||||||||||
Installment and other consumer loans | Troubled Debt Restructurings [Member] | |||||||||||||
Nonaccrual Loans/Leases | $ 48 |
NOTE 3 - LOANS_LEASES RECEIVA_4
NOTE 3 - LOANS/LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and leases receivable | $ 4,417,705 | $ 4,243,791 | |||||
Plus deferred loan/lease origination costs, net of fees. | 7,338 | ||||||
Gross loans/leases receivable | 4,417,705 | 4,251,129 | |||||
Less allowance | (78,894) | $ (81,831) | $ (84,376) | (84,376) | $ (60,827) | $ (42,233) | $ (36,001) |
Net loans/leases receivable | 4,338,811 | 4,166,753 | |||||
Construction Loans [Member] | |||||||
Loans and leases receivable | 708,289 | ||||||
Commercial Portfolio Segment [Member] | |||||||
Loans and leases receivable | 1,688,266 | 1,726,723 | |||||
Gross loans/leases receivable | 1,744,419 | ||||||
Less allowance | (35,502) | (35,421) | (35,421) | (25,748) | (18,151) | (16,072) | |
Commercial Portfolio Segment [Member] | C&I - revolving | |||||||
Loans and leases receivable | 182,882 | ||||||
Gross loans/leases receivable | 182,882 | ||||||
Less allowance | (3,177) | (3,547) | |||||
Commercial Portfolio Segment [Member] | C&I - other | |||||||
Loans and leases receivable | 1,505,384 | ||||||
Gross loans/leases receivable | 1,561,537 | ||||||
Less allowance | (32,325) | (33,167) | |||||
Commercial Real Estate Portfolio Segment [Member] | |||||||
Loans and leases receivable | 2,107,629 | ||||||
Less allowance | (42,161) | (42,161) | (29,123) | (19,269) | (15,379) | ||
Commercial Real Estate Portfolio Segment [Member] | CRE - owner occupied | |||||||
Loans and leases receivable | 427,734 | ||||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||||||
Loans and leases receivable | 618,879 | ||||||
Gross loans/leases receivable | 618,879 | ||||||
Less allowance | (8,911) | (11,155) | |||||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||||||
Loans and leases receivable | 541,455 | ||||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||||
Loans and leases receivable | 427,734 | 496,471 | |||||
Gross loans/leases receivable | 427,734 | ||||||
Less allowance | (8,020) | (9,147) | |||||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | |||||||
Loans and leases receivable | 1,069,703 | ||||||
Construction and Land Development [Member] | |||||||
Gross loans/leases receivable | 708,289 | ||||||
Less allowance | (13,640) | ||||||
Construction and Land Development [Member] | Construction Loans [Member] | |||||||
Loans and leases receivable | 708,289 | 541,455 | |||||
Less allowance | (13,640) | (12,327) | |||||
Multi-family | |||||||
Loans and leases receivable | 466,804 | ||||||
Gross loans/leases receivable | 466,804 | ||||||
Less allowance | (6,977) | (6,278) | |||||
Direct financing leases | |||||||
Net minimum lease payments to be received | 61,781 | 72,940 | |||||
Estimated unguaranteed residual values of leased assets | 165 | 239 | |||||
Unearned lease/residual income | (5,793) | (7,163) | |||||
Loans and leases receivable | 56,153 | 66,016 | |||||
Plus deferred loan/lease origination costs, net of fees. | 783 | 1,072 | |||||
Gross loans/leases receivable | 56,936 | 67,088 | |||||
Less allowance | (1,976) | (1,764) | (1,764) | (1,639) | (1,303) | (1,464) | |
Net loans/leases receivable | 54,960 | 65,324 | |||||
Direct financing leases | C&I - other | |||||||
Less allowance | (685) | (2,200) | (1,800) | ||||
1-4 family real estate | |||||||
Loans and leases receivable | 382,142 | ||||||
Gross loans/leases receivable | 382,142 | ||||||
Less allowance | (4,925) | (5,165) | |||||
Residential real estate | |||||||
Loans and leases receivable | 252,121 | ||||||
Less allowance | (3,732) | (3,732) | (3,010) | (2,313) | (1,948) | ||
Consumer | |||||||
Loans and leases receivable | 69,438 | ||||||
Gross loans/leases receivable | 69,438 | ||||||
Less allowance | $ (919) | $ (1,045) | $ (1,298) | (1,298) | |||
Installment and other consumer loans | |||||||
Loans and leases receivable | $ 91,302 | ||||||
Less allowance | $ (1,307) | $ (1,197) | $ (1,138) |
NOTE 3 - LOANS_LEASES RECEIVA_5
NOTE 3 - LOANS/LEASES RECEIVABLE - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance at the beginning of the period | $ (2,530) | $ (5,784) | $ (3,139) | $ (6,435) |
Reclassification of nonaccretable discount to accretable | (30) | |||
Accretion recognized | 341 | 791 | 950 | 1,472 |
Balance at the end of the period | (2,189) | (4,993) | (2,189) | (4,993) |
PCI Loans | ||||
Balance at the beginning of the period | (59) | (57) | ||
Reclassification of nonaccretable discount to accretable | (30) | |||
Accretion recognized | 1 | 29 | ||
Balance at the end of the period | (58) | (58) | ||
Performing Loans | ||||
Balance at the beginning of the period | (2,530) | (5,725) | (3,139) | (6,378) |
Accretion recognized | 341 | 790 | 950 | 1,443 |
Balance at the end of the period | $ (2,189) | $ (4,935) | $ (2,189) | $ (4,935) |
NOTE 3 - LOANS_LEASES RECEIVA_6
NOTE 3 - LOANS/LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current | $ 4,405,310 | $ 4,225,516 |
Accruing Past Due 90 Days or More | 57 | 3 |
Nonaccrual Loans/Leases | 8,230 | 13,940 |
Loans and leases | $ 4,417,705 | $ 4,243,791 |
Current as a percentage of total loan/lease portfolio | 99.72% | 99.57% |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0.00% | 0.00% |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.19% | 0.33% |
Loans and leases as a percentage of total loan/lease portfolio | 100.00% | 100.00% |
Construction Loans [Member] | ||
Loans and leases | $ 708,289 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | $ 2,473 | $ 3,591 |
Past due as a percentage of total loan/lease portfolio | 0.05% | 0.08% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 1,635 | $ 741 |
Past due as a percentage of total loan/lease portfolio | 0.04% | 0.02% |
Commercial Portfolio Segment [Member] | ||
Current | $ 1,720,058 | |
Nonaccrual Loans/Leases | 4,807 | |
Loans and leases | $ 1,688,266 | 1,726,723 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Current | 182,882 | |
Loans and leases | 182,882 | |
Commercial Portfolio Segment [Member] | C&I - other | ||
Current | 1,498,911 | |
Accruing Past Due 90 Days or More | 57 | |
Nonaccrual Loans/Leases | 4,959 | |
Loans and leases | 1,505,384 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 1,535 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | C&I - other | ||
Past Due | 1,252 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 323 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | C&I - other | ||
Past Due | 205 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 2,107,629 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 426,603 | 496,459 |
Nonaccrual Loans/Leases | 12 | |
Loans and leases | 427,734 | 496,471 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Current | 618,483 | |
Loans and leases | 618,879 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 1,062,215 | |
Nonaccrual Loans/Leases | 7,488 | |
Loans and leases | 1,069,703 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 865 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 266 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | CRE - non owner occupied | ||
Past Due | 396 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Current | 708,214 | 541,455 |
Nonaccrual Loans/Leases | 75 | |
Loans and leases | 708,289 | 541,455 |
Multi-family | ||
Current | 466,804 | |
Loans and leases | 466,804 | |
Direct financing leases | ||
Current | 55,779 | 64,918 |
Nonaccrual Loans/Leases | 161 | 406 |
Loans and leases | 56,153 | 66,016 |
Direct financing leases | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 76 | 501 |
Direct financing leases | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 137 | 191 |
1-4 family real estate | ||
Current | 378,314 | |
Nonaccrual Loans/Leases | 2,969 | |
Loans and leases | 382,142 | |
1-4 family real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 228 | |
1-4 family real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 631 | |
Residential real estate | ||
Current | 249,364 | |
Nonaccrual Loans/Leases | 1,022 | |
Loans and leases | 252,121 | |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 1,512 | |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 223 | |
Consumer | ||
Current | 69,320 | |
Nonaccrual Loans/Leases | 66 | |
Loans and leases | 69,438 | |
Consumer | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | $ 52 | |
Installment and other consumer loans | ||
Current | 91,047 | |
Accruing Past Due 90 Days or More | 3 | |
Nonaccrual Loans/Leases | 205 | |
Loans and leases | 91,302 | |
Installment and other consumer loans | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 43 | |
Installment and other consumer loans | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 4 |
NOTE 3 - LOANS_LEASES RECEIVA_7
NOTE 3 - LOANS/LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accruing Past Due 90 Days or More | $ 57 | $ 3 |
Nonaccrual Loans/Leases | 8,230 | 13,940 |
Accruing TDRs | 3,100 | 1,700 |
Loans and Leases Receivable, Net of Deferred Income | $ 4,417,705 | $ 4,243,791 |
Percentage of Total NPLs | 100.00% | 100.00% |
Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 708,289 | |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 57 | $ 3 |
Nonaccrual Loans/Leases | 7,956 | 13,940 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 274 | |
Accruing TDRs | 741 | |
Loans and Leases Receivable, Net of Deferred Income | $ 8,287 | $ 14,684 |
Percentage of Total NPLs | 100.00% | 100.00% |
Commercial Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 4,807 | |
Loans and Leases Receivable, Net of Deferred Income | $ 1,688,266 | 1,726,723 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 57 | |
Nonaccrual Loans/Leases | 4,959 | |
Loans and Leases Receivable, Net of Deferred Income | 1,505,384 | |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loans and Leases Receivable, Net of Deferred Income | 182,882 | |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 4,807 | |
Accruing TDRs | 606 | |
Loans and Leases Receivable, Net of Deferred Income | $ 5,413 | |
Percentage of Total NPLs | 36.87% | |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 57 | |
Nonaccrual Loans/Leases | 4,736 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 223 | |
Loans and Leases Receivable, Net of Deferred Income | $ 5,016 | |
Percentage of Total NPLs | 60.52% | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 2,107,629 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 12 | |
Loans and Leases Receivable, Net of Deferred Income | $ 427,734 | 496,471 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loans and Leases Receivable, Net of Deferred Income | 618,879 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 541,455 | |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 7,488 | |
Loans and Leases Receivable, Net of Deferred Income | 1,069,703 | |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 12 | |
Loans and Leases Receivable, Net of Deferred Income | $ 12 | |
Percentage of Total NPLs | 0.08% | |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | $ 7,488 | |
Loans and Leases Receivable, Net of Deferred Income | $ 7,488 | |
Percentage of Total NPLs | 50.99% | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 75 | |
Loans and Leases Receivable, Net of Deferred Income | 708,289 | $ 541,455 |
Construction and Land Development [Member] | Nonperforming Financial Instruments [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 75 | |
Loans and Leases Receivable, Net of Deferred Income | $ 75 | |
Percentage of Total NPLs | 0.91% | |
Multi-family | ||
Loans and Leases Receivable, Net of Deferred Income | $ 466,804 | |
Direct financing leases | ||
Nonaccrual Loans/Leases | 161 | 406 |
Loans and Leases Receivable, Net of Deferred Income | 56,153 | 66,016 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 110 | 406 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 51 | |
Accruing TDRs | 135 | |
Loans and Leases Receivable, Net of Deferred Income | $ 161 | $ 541 |
Percentage of Total NPLs | 1.94% | 3.68% |
1-4 family real estate | ||
Nonaccrual Loans/Leases | $ 2,969 | |
Loans and Leases Receivable, Net of Deferred Income | 382,142 | |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 2,969 | |
Loans and Leases Receivable, Net of Deferred Income | $ 2,969 | |
Percentage of Total NPLs | 35.83% | |
Residential real estate | ||
Nonaccrual Loans/Leases | $ 1,022 | |
Loans and Leases Receivable, Net of Deferred Income | 252,121 | |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 1,022 | |
Loans and Leases Receivable, Net of Deferred Income | $ 1,022 | |
Percentage of Total NPLs | 6.96% | |
Consumer | ||
Nonaccrual Loans/Leases | $ 66 | |
Loans and Leases Receivable, Net of Deferred Income | 69,438 | |
Consumer | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 66 | |
Loans and Leases Receivable, Net of Deferred Income | $ 66 | |
Percentage of Total NPLs | 0.80% | |
Installment and other consumer loans | ||
Accruing Past Due 90 Days or More | $ 3 | |
Nonaccrual Loans/Leases | 205 | |
Loans and Leases Receivable, Net of Deferred Income | 91,302 | |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 3 | |
Nonaccrual Loans/Leases | 205 | |
Loans and Leases Receivable, Net of Deferred Income | $ 208 | |
Percentage of Total NPLs | 1.42% |
NOTE 3 - LOANS_LEASES RECEIVA_8
NOTE 3 - LOANS/LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance | $ 81,831 | $ 42,233 | $ 84,376 | $ 36,001 |
Provision | 19,915 | 6,713 | 28,282 | |
Provision. | (141) | 5,852 | ||
Charged off | (3,674) | (1,450) | (4,387) | (3,785) |
Recoveries | 878 | 129 | 1,155 | 329 |
Balance | 78,894 | 60,827 | 78,894 | 60,827 |
Accounting Standards Update 2016-13 | ||||
Balance | (8,102) | (8,102) | ||
Commercial Portfolio Segment [Member] | ||||
Balance | 18,151 | 35,421 | 16,072 | |
Provision | 7,859 | 11,556 | ||
Charged off | (340) | (1,979) | ||
Recoveries | 78 | 99 | ||
Balance | 35,502 | 25,748 | 35,502 | 25,748 |
Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | ||||
Balance | (35,421) | |||
Commercial Portfolio Segment [Member] | C&I - revolving | ||||
Balance | 3,547 | |||
Provision. | (370) | 195 | ||
Balance | 3,177 | 3,177 | ||
Commercial Portfolio Segment [Member] | C&I - revolving | Accounting Standards Update 2016-13 | ||||
Balance | 2,982 | |||
Commercial Portfolio Segment [Member] | C&I - other | ||||
Balance | 33,167 | |||
Provision. | (2) | 4,547 | ||
Charged off | (998) | (1,666) | ||
Recoveries | 158 | 314 | ||
Balance | 32,325 | 32,325 | ||
Commercial Portfolio Segment [Member] | C&I - other | Accounting Standards Update 2016-13 | ||||
Balance | 29,130 | |||
Commercial Real Estate Portfolio Segment [Member] | ||||
Balance | 19,269 | 42,161 | 15,379 | |
Provision | 10,365 | 14,181 | ||
Charged off | (511) | (511) | ||
Recoveries | 74 | |||
Balance | 29,123 | 29,123 | ||
Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 | ||||
Balance | (42,161) | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||
Balance | 9,147 | |||
Provision. | (1,121) | (670) | ||
Recoveries. | 6 | 6 | ||
Balance | 8,020 | 8,020 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Accounting Standards Update 2016-13 | ||||
Balance | 8,696 | |||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||||
Balance | 11,155 | |||
Provision. | (376) | (662) | ||
Charged off | (1,876) | (1,876) | ||
Recoveries | 8 | 21 | ||
Balance | 8,911 | 8,911 | ||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Accounting Standards Update 2016-13 | ||||
Balance | 11,428 | |||
Construction and Land Development [Member] | ||||
Balance | 13,640 | 13,640 | ||
Construction and Land Development [Member] | Construction Loans [Member] | ||||
Balance | 12,327 | |||
Provision. | 1,313 | 1,641 | ||
Balance | 13,640 | 13,640 | ||
Construction and Land Development [Member] | Construction Loans [Member] | Accounting Standards Update 2016-13 | ||||
Balance | 11,999 | |||
Multi-family | ||||
Balance | 6,278 | |||
Provision. | 849 | 1,291 | ||
Charged off | (150) | (150) | ||
Balance | 6,977 | 6,977 | ||
Multi-family | Accounting Standards Update 2016-13 | ||||
Balance | 5,836 | |||
Direct financing leases | ||||
Balance | 1,303 | 1,764 | 1,464 | |
Provision | 887 | 1,281 | ||
Charged off | (595) | (1,195) | ||
Recoveries | 44 | 89 | ||
Balance | 1,976 | 1,639 | 1,976 | 1,639 |
Direct financing leases | Accounting Standards Update 2016-13 | ||||
Balance | (1,764) | |||
Direct financing leases | C&I - other | ||||
Balance | 2,200 | 1,800 | ||
Provision | 144 | 279 | ||
Charged off | (130) | 328 | ||
Recoveries | 58 | 134 | ||
Balance | 685 | 685 | ||
Residential real estate | ||||
Balance | 2,313 | 3,732 | 1,948 | |
Provision | 697 | 1,033 | ||
Recoveries | 29 | |||
Balance | 3,010 | 3,010 | ||
Residential real estate | Accounting Standards Update 2016-13 | ||||
Balance | (3,732) | |||
1-4 family real estate | ||||
Balance | 5,165 | |||
Provision. | (105) | 56 | ||
Charged off | (646) | (690) | ||
Recoveries | 511 | 517 | ||
Balance | 4,925 | 4,925 | ||
1-4 family real estate | Accounting Standards Update 2016-13 | ||||
Balance | 5,042 | |||
Consumer | ||||
Balance | 1,045 | 1,298 | ||
Provision. | (329) | (546) | ||
Charged off | (4) | (5) | ||
Recoveries | 207 | 309 | ||
Balance | $ 919 | 919 | ||
Consumer | Accounting Standards Update 2016-13 | ||||
Balance | $ (137) | |||
Installment and other consumer loans | ||||
Balance | 1,197 | 1,138 | ||
Provision | 107 | 231 | ||
Charged off | (4) | (100) | ||
Recoveries | 7 | 38 | ||
Balance | $ 1,307 | $ 1,307 |
NOTE 3 - LOANS_LEASES RECEIVA_9
NOTE 3 - LOANS/LEASES RECEIVABLE - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for Credit Losses, Individually Evaluated for Credit Losses | $ 4,819 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 74,075 | ||||||
Allowance for Credit Losses, Total | 78,894 | $ 81,831 | $ 84,376 | $ 84,376 | $ 60,827 | $ 42,233 | $ 36,001 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 83,711 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 4,333,994 | ||||||
Gross loans/leases receivable | 4,417,705 | 4,251,129 | |||||
Commercial Portfolio Segment [Member] | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 3,951 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 31,551 | ||||||
Allowance for Credit Losses, Total | 35,502 | 35,421 | 35,421 | 25,748 | 18,151 | 16,072 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 42,900 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,701,519 | ||||||
Gross loans/leases receivable | 1,744,419 | ||||||
Commercial Portfolio Segment [Member] | C&I - revolving | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 189 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 2,988 | ||||||
Allowance for Credit Losses, Total | 3,177 | 3,547 | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 2,725 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 180,157 | ||||||
Gross loans/leases receivable | 182,882 | ||||||
Commercial Portfolio Segment [Member] | C&I - other | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 3,762 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 28,563 | ||||||
Allowance for Credit Losses, Total | 32,325 | 33,167 | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 40,175 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,521,362 | ||||||
Gross loans/leases receivable | 1,561,537 | ||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||
Allowance for Credit Losses, Total | 42,161 | 42,161 | 29,123 | 19,269 | 15,379 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 283 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 7,737 | ||||||
Allowance for Credit Losses, Total | 8,020 | 9,147 | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 5,425 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 422,309 | ||||||
Gross loans/leases receivable | 427,734 | ||||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 46 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 8,865 | ||||||
Allowance for Credit Losses, Total | 8,911 | 11,155 | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 19,879 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 599,000 | ||||||
Gross loans/leases receivable | 618,879 | ||||||
Construction and Land Development [Member] | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 12 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 13,628 | ||||||
Allowance for Credit Losses, Total | 13,640 | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 10,553 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 697,736 | ||||||
Gross loans/leases receivable | 708,289 | ||||||
Multi-family | |||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 6,977 | ||||||
Allowance for Credit Losses, Total | 6,977 | 6,278 | |||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 466,804 | ||||||
Gross loans/leases receivable | 466,804 | ||||||
1-4 family real estate | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 491 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 4,434 | ||||||
Allowance for Credit Losses, Total | 4,925 | 5,165 | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 4,683 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 377,459 | ||||||
Gross loans/leases receivable | 382,142 | ||||||
Consumer | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 36 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 883 | ||||||
Allowance for Credit Losses, Total | 919 | 1,045 | 1,298 | 1,298 | |||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 271 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 69,167 | ||||||
Gross loans/leases receivable | 69,438 | ||||||
Direct financing leases | |||||||
Allowance for Credit Losses, Total | 1,976 | $ 1,764 | 1,764 | $ 1,639 | $ 1,303 | $ 1,464 | |
Gross loans/leases receivable | 56,936 | 67,088 | |||||
Direct financing leases | C&I - other | |||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 33 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,900 | ||||||
Allowance for Credit Losses, Total | 685 | $ 2,200 | $ 1,800 | ||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 161 | ||||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | $ 56,000 |
NOTE 3 - LOANS_LEASES RECEIV_10
NOTE 3 - LOANS/LEASES RECEIVABLE - Impaired Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | |
Recorded investment with no specific allowance recorded | $ 5,813 | $ 5,813 | $ 3,924 |
Unpaid principal balance with no specific allowance recorded | 6,171 | 6,171 | 4,804 |
Average recorded investment with no specific allowance recorded | 5,379 | 4,760 | 2,576 |
Interest income recognized with no specific allowance recorded | 26 | 50 | 79 |
Interest income recognized for cash payments received with no specific allowance recorded | 26 | 50 | 79 |
Recorded investment with specific allowance recorded | 7,492 | 7,492 | 10,704 |
Unpaid principal balance with specific allowance recorded | 7,492 | 7,492 | 10,704 |
Average recorded investment with specific allowance recorded | 7,475 | 6,140 | 7,578 |
Recorded investment | 13,305 | 13,305 | 14,628 |
Unpaid principal balance | 13,663 | 13,663 | 15,508 |
Related allowance | 2,154 | 2,154 | 2,680 |
Average recorded investment | 12,854 | 10,900 | 10,154 |
Interest income recognized | 26 | 50 | 79 |
Interest income recognized for cash payments received | 26 | 50 | 79 |
Commercial Portfolio Segment [Member] | |||
Recorded investment with no specific allowance recorded | 1,978 | 1,978 | 1,361 |
Unpaid principal balance with no specific allowance recorded | 2,051 | 2,051 | 1,441 |
Average recorded investment with no specific allowance recorded | 1,742 | 1,512 | 1,002 |
Interest income recognized with no specific allowance recorded | 13 | 25 | 33 |
Interest income recognized for cash payments received with no specific allowance recorded | 13 | 25 | 33 |
Recorded investment with specific allowance recorded | 569 | 569 | 4,020 |
Unpaid principal balance with specific allowance recorded | 569 | 569 | 4,020 |
Average recorded investment with specific allowance recorded | 568 | 479 | 1,555 |
Recorded investment | 2,547 | 2,547 | 5,381 |
Unpaid principal balance | 2,620 | 2,620 | 5,461 |
Related allowance | 341 | 341 | 650 |
Average recorded investment | 2,310 | 1,991 | 2,557 |
Interest income recognized | 13 | 25 | 33 |
Interest income recognized for cash payments received | 13 | 25 | 33 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||
Recorded investment with no specific allowance recorded | 320 | 320 | |
Unpaid principal balance with no specific allowance recorded | 577 | 577 | |
Average recorded investment with no specific allowance recorded | 174 | 128 | |
Recorded investment | 320 | 320 | |
Unpaid principal balance | 577 | 577 | |
Average recorded investment | 174 | 128 | |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | |||
Recorded investment with no specific allowance recorded | 965 | 965 | 1,133 |
Unpaid principal balance with no specific allowance recorded | 965 | 965 | 1,933 |
Average recorded investment with no specific allowance recorded | 978 | 742 | 494 |
Interest income recognized with no specific allowance recorded | 7 | 14 | 29 |
Interest income recognized for cash payments received with no specific allowance recorded | 7 | 14 | 29 |
Recorded investment with specific allowance recorded | 6,530 | 6,530 | 6,354 |
Unpaid principal balance with specific allowance recorded | 6,530 | 6,530 | 6,354 |
Average recorded investment with specific allowance recorded | 6,560 | 5,329 | 5,726 |
Recorded investment | 7,495 | 7,495 | 7,487 |
Unpaid principal balance | 7,495 | 7,495 | 8,287 |
Related allowance | 1,692 | 1,692 | 1,938 |
Average recorded investment | 7,538 | 6,071 | 6,220 |
Interest income recognized | 7 | 14 | 29 |
Interest income recognized for cash payments received | 7 | 14 | 29 |
Direct financing leases | |||
Recorded investment with no specific allowance recorded | 1,364 | 1,364 | 578 |
Unpaid principal balance with no specific allowance recorded | 1,364 | 1,364 | 578 |
Average recorded investment with no specific allowance recorded | 1,411 | 1,379 | 483 |
Interest income recognized with no specific allowance recorded | 6 | 11 | 17 |
Interest income recognized for cash payments received with no specific allowance recorded | 6 | 11 | 17 |
Recorded investment with specific allowance recorded | 55 | 55 | |
Unpaid principal balance with specific allowance recorded | 55 | 55 | |
Average recorded investment with specific allowance recorded | 57 | 59 | |
Recorded investment | 1,419 | 1,419 | 578 |
Unpaid principal balance | 1,419 | 1,419 | 578 |
Related allowance | 20 | 20 | |
Average recorded investment | 1,468 | 1,438 | 483 |
Interest income recognized | 6 | 11 | 17 |
Interest income recognized for cash payments received | 6 | 11 | 17 |
Residential real estate | |||
Recorded investment with no specific allowance recorded | 624 | 624 | 719 |
Unpaid principal balance with no specific allowance recorded | 652 | 652 | 719 |
Average recorded investment with no specific allowance recorded | 524 | 474 | 476 |
Recorded investment with specific allowance recorded | 260 | 260 | 258 |
Unpaid principal balance with specific allowance recorded | 260 | 260 | 258 |
Average recorded investment with specific allowance recorded | 220 | 206 | 227 |
Recorded investment | 884 | 884 | 977 |
Unpaid principal balance | 912 | 912 | 977 |
Related allowance | 23 | 23 | 20 |
Average recorded investment | 744 | 680 | 703 |
Installment and other consumer loans | |||
Recorded investment with no specific allowance recorded | 562 | 562 | 133 |
Unpaid principal balance with no specific allowance recorded | 562 | 562 | 133 |
Average recorded investment with no specific allowance recorded | 550 | 525 | 121 |
Recorded investment with specific allowance recorded | 78 | 78 | 72 |
Unpaid principal balance with specific allowance recorded | 78 | 78 | 72 |
Average recorded investment with specific allowance recorded | 70 | 67 | 70 |
Recorded investment | 640 | 640 | 205 |
Unpaid principal balance | 640 | 640 | 205 |
Related allowance | 78 | 78 | 72 |
Average recorded investment | $ 620 | $ 592 | $ 191 |
NOTE 3 - LOANS_LEASES RECEIV_11
NOTE 3 - LOANS/LEASES RECEIVABLE - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | $ 78,894 | $ 84,376 |
Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 83,711 | |
Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 3,327 | |
Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 32,889 | |
Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 10,490 | |
Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 6,224 | |
Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 30,758 | |
Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 23 | |
Commercial Portfolio Segment [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 42,900 | |
Commercial Portfolio Segment [Member] | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 3,327 | |
Commercial Portfolio Segment [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,591 | |
Commercial Portfolio Segment [Member] | Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 6,224 | |
Commercial Portfolio Segment [Member] | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 30,758 | |
Commercial Portfolio Segment [Member] | C&I - revolving | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,725 | |
Commercial Portfolio Segment [Member] | C&I - revolving | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,475 | |
Commercial Portfolio Segment [Member] | C&I - revolving | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 250 | |
Commercial Portfolio Segment [Member] | C&I - other | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 40,175 | |
Commercial Portfolio Segment [Member] | C&I - other | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 852 | |
Commercial Portfolio Segment [Member] | C&I - other | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,591 | |
Commercial Portfolio Segment [Member] | C&I - other | Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 6,224 | |
Commercial Portfolio Segment [Member] | C&I - other | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 30,508 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 5,425 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 5,425 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 19,879 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 19,879 | |
Construction and Land Development [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 10,553 | |
Construction and Land Development [Member] | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 10,478 | |
Construction and Land Development [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 75 | |
Direct financing leases | C&I - other | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 161 | |
1-4 family real estate | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 4,683 | |
1-4 family real estate | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,532 | |
1-4 family real estate | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,151 | |
Consumer | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 271 | |
Consumer | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 248 | |
Consumer | Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | $ 23 |
NOTE 3 - LOANS_LEASES RECEIV_12
NOTE 3 - LOANS/LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and leases | $ 4,417,705 | $ 4,243,791 |
Construction Loans [Member] | ||
Loans and leases | 708,289 | |
Internally Assigned Risk Rating [Member] | ||
2021 | 780,081 | |
2020 | 1,261,276 | |
2019 | 669,478 | |
2018 | 429,648 | |
2017 | 244,347 | |
Prior | 209,556 | |
Revolving Loans Amortized Cost Basis | 219,469 | |
Loans and leases | 3,813,855 | |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,688,266 | 1,726,723 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loans and leases | 182,882 | |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loans and leases | 1,505,384 | |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,555,217 | |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 182,882 | |
Loans and leases | 182,882 | |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - other | ||
2021 | 325,352 | |
2020 | 444,984 | |
2019 | 225,301 | |
2018 | 125,551 | |
2017 | 117,961 | |
Prior | 63,868 | |
Loans and leases | 1,303,017 | |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans and leases | 1,506,578 | |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 177,045 | |
Loans and leases | 177,045 | |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - other | ||
2021 | 316,725 | |
2020 | 437,339 | |
2019 | 208,611 | |
2018 | 125,116 | |
2017 | 117,406 | |
Prior | 56,478 | |
Loans and leases | 1,261,675 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans and leases | 23,929 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 3,112 | |
Loans and leases | 3,112 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - other | ||
2021 | 146 | |
2020 | 693 | |
2018 | 69 | |
2017 | 495 | |
Prior | 1,259 | |
Loans and leases | 2,662 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans and leases | 24,710 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 2,725 | |
Loans and leases | 2,725 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - other | ||
2021 | 8,481 | |
2020 | 6,952 | |
2019 | 16,690 | |
2018 | 366 | |
2017 | 60 | |
Prior | 6,131 | |
Loans and leases | 38,680 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 2,107,629 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 427,734 | 496,471 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loans and leases | 618,879 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,069,703 | |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2021 | 66,896 | |
2020 | 159,219 | |
2019 | 65,443 | |
2018 | 34,182 | |
2017 | 26,152 | |
Prior | 65,498 | |
Revolving Loans Amortized Cost Basis | 10,344 | |
Loans and leases | 427,734 | 496,471 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | CRE - non owner occupied | ||
2021 | 87,335 | |
2020 | 185,698 | |
2019 | 110,425 | |
2018 | 91,908 | |
2017 | 77,559 | |
Prior | 57,228 | |
Revolving Loans Amortized Cost Basis | 8,726 | |
Loans and leases | 618,879 | |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,069,703 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2021 | 65,781 | |
2020 | 159,219 | |
2019 | 63,344 | |
2018 | 32,677 | |
2017 | 23,452 | |
Prior | 64,232 | |
Revolving Loans Amortized Cost Basis | 10,344 | |
Loans and leases | 419,049 | 488,478 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | CRE - non owner occupied | ||
2021 | 81,897 | |
2020 | 177,081 | |
2019 | 91,579 | |
2018 | 76,121 | |
2017 | 72,401 | |
Prior | 51,555 | |
Revolving Loans Amortized Cost Basis | 6,570 | |
Loans and leases | 557,204 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 999,931 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2021 | 901 | |
2019 | 178 | |
2018 | 244 | |
2017 | 672 | |
Prior | 1,266 | |
Loans and leases | 3,261 | 3,087 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | CRE - non owner occupied | ||
2021 | 5,019 | |
2020 | 8,617 | |
2019 | 1,846 | |
2018 | 15,288 | |
2017 | 4,201 | |
Prior | 5,673 | |
Revolving Loans Amortized Cost Basis | 1,151 | |
Loans and leases | 41,795 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 43,785 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2021 | 214 | |
2019 | 1,921 | |
2018 | 1,261 | |
2017 | 2,028 | |
Loans and leases | 5,424 | 4,906 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | CRE - non owner occupied | ||
2021 | 419 | |
2019 | 17,000 | |
2018 | 499 | |
2017 | 957 | |
Revolving Loans Amortized Cost Basis | 1,005 | |
Loans and leases | 19,880 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 25,987 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and leases | 708,289 | 541,455 |
Construction and Land Development [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
2021 | 144,416 | |
2020 | 231,399 | |
2019 | 182,274 | |
2018 | 117,974 | |
2017 | 7,770 | |
Prior | 2,613 | |
Revolving Loans Amortized Cost Basis | 8,634 | |
Loans and leases | 695,080 | 541,455 |
Construction and Land Development [Member] | Pass [Member] | Construction Loans [Member] | ||
2021 | 144,416 | |
2020 | 231,399 | |
2019 | 171,796 | |
2018 | 117,381 | |
2017 | 7,770 | |
Prior | 2,613 | |
Revolving Loans Amortized Cost Basis | 8,634 | |
Loans and leases | 684,009 | 530,297 |
Construction and Land Development [Member] | Special Mention [Member] | Construction Loans [Member] | ||
2018 | 593 | |
Loans and leases | 593 | 680 |
Construction and Land Development [Member] | Substandard [Member] | Construction Loans [Member] | ||
2019 | 10,478 | |
Loans and leases | 10,478 | 10,478 |
Multi-family | ||
Loans and leases | 466,804 | |
Multi-family | Internally Assigned Risk Rating [Member] | ||
2021 | 125,743 | |
2020 | 206,255 | |
2019 | 66,161 | |
2018 | 47,105 | |
2017 | 7,420 | |
Prior | 11,359 | |
Revolving Loans Amortized Cost Basis | 2,761 | |
Loans and leases | 466,804 | |
Multi-family | Pass [Member] | ||
2021 | 125,743 | |
2020 | 206,255 | |
2019 | 66,161 | |
2018 | 47,105 | |
2017 | 7,420 | |
Prior | 11,359 | |
Revolving Loans Amortized Cost Basis | 2,761 | |
Loans and leases | 466,804 | |
1-4 family real estate | ||
Loans and leases | 382,142 | |
1-4 family real estate | Internally Assigned Risk Rating [Member] | ||
2021 | 30,339 | |
2020 | 33,721 | |
2019 | 19,874 | |
2018 | 12,928 | |
2017 | 7,485 | |
Prior | 8,990 | |
Revolving Loans Amortized Cost Basis | 6,122 | |
Loans and leases | 119,459 | |
1-4 family real estate | Pass [Member] | ||
2021 | 27,769 | |
2020 | 33,721 | |
2019 | 19,874 | |
2018 | 12,928 | |
2017 | 7,333 | |
Prior | 8,990 | |
Revolving Loans Amortized Cost Basis | 6,122 | |
Loans and leases | 116,737 | |
1-4 family real estate | Special Mention [Member] | ||
2021 | 38 | |
2017 | 152 | |
Loans and leases | 190 | |
1-4 family real estate | Substandard [Member] | ||
2021 | 2,532 | |
Loans and leases | $ 2,532 | |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,662,846 | |
As a % of Total | 100.00% | |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Pass [Member] | ||
Loans and leases | $ 3,525,284 | |
As a % of Total | 96.25% | |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Special Mention [Member] | ||
Loans and leases | $ 71,481 | |
As a % of Total | 1.95% | |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Substandard [Member] | ||
Loans and leases | $ 66,081 | |
As a % of Total | 1.80% |
NOTE 3 - LOANS_LEASES RECEIV_13
NOTE 3 - LOANS/LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and leases | $ 4,417,705 | $ 4,243,791 |
Delinquency Status [Member] | ||
2021 | 142,145 | |
2020 | 183,241 | |
2019 | 86,417 | |
2018 | 50,233 | |
2017 | 28,901 | |
Prior | 62,803 | |
Revolving Loans Amortized Cost Basis | 50,110 | |
Loans and leases | 603,850 | |
Nonperforming Financial Instruments [Member] | ||
Loans and leases | 8,287 | 14,684 |
Construction Loans [Member] | ||
Loans and leases | 708,289 | |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,688,266 | 1,726,723 |
Commercial Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 171,506 | |
Commercial Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 170,712 | |
Commercial Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 794 | |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 5,413 | |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loans and leases | 1,505,384 | |
Commercial Portfolio Segment [Member] | C&I - other | Delinquency Status [Member] | ||
2021 | 63,368 | |
2020 | 65,333 | |
2019 | 43,986 | |
2018 | 21,279 | |
2017 | 7,627 | |
Prior | 774 | |
Loans and leases | 202,367 | |
Commercial Portfolio Segment [Member] | C&I - other | Non Performing Greater Than Ninety Days Past Due [Member] | ||
2021 | 69 | |
2020 | 290 | |
2019 | 423 | |
2018 | 72 | |
2017 | 85 | |
Prior | 23 | |
Loans and leases | 962 | |
Commercial Portfolio Segment [Member] | C&I - other | Performing Loans | ||
2021 | 63,299 | |
2020 | 65,043 | |
2019 | 43,563 | |
2018 | 21,207 | |
2017 | 7,542 | |
Prior | 751 | |
Loans and leases | 201,405 | |
Commercial Portfolio Segment [Member] | C&I - other | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 5,016 | |
Direct financing leases | ||
Loans and leases | 56,153 | 66,016 |
Direct financing leases | Delinquency Status [Member] | ||
2021 | 4,358 | |
2020 | 15,240 | |
2019 | 15,002 | |
2018 | 12,782 | |
2017 | 6,380 | |
Prior | 2,391 | |
Loans and leases | 56,153 | 66,016 |
Direct financing leases | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 65,475 | |
Direct financing leases | Non Performing Greater Than Ninety Days Past Due [Member] | ||
2018 | 57 | |
2017 | 31 | |
Prior | 73 | |
Loans and leases | 161 | 541 |
Direct financing leases | Performing Loans | ||
2021 | 4,358 | |
2020 | 15,240 | |
2019 | 15,002 | |
2018 | 12,725 | |
2017 | 6,349 | |
Prior | 2,318 | |
Loans and leases | 55,992 | |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 161 | 541 |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and leases | 708,289 | 541,455 |
Construction and Land Development [Member] | Construction Loans [Member] | Delinquency Status [Member] | ||
2021 | 3,111 | |
2020 | 9,299 | |
2019 | 213 | |
2018 | 511 | |
2017 | 75 | |
Loans and leases | 13,209 | |
Construction and Land Development [Member] | Construction Loans [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
2017 | 75 | |
Loans and leases | 75 | |
Construction and Land Development [Member] | Construction Loans [Member] | Performing Loans | ||
2021 | 3,111 | |
2020 | 9,299 | |
2019 | 213 | |
2018 | 511 | |
Loans and leases | 13,134 | |
Construction and Land Development [Member] | Construction Loans [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 75 | |
1-4 family real estate | ||
Loans and leases | 382,142 | |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 2,969 | |
1-4 family real estate | One To Four Family [Member] | Delinquency Status [Member] | ||
2021 | 67,843 | |
2020 | 86,487 | |
2019 | 24,428 | |
2018 | 13,340 | |
2017 | 13,954 | |
Prior | 56,603 | |
Revolving Loans Amortized Cost Basis | 28 | |
Loans and leases | 262,683 | |
1-4 family real estate | One To Four Family [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
2019 | 72 | |
Prior | 364 | |
Loans and leases | 436 | |
1-4 family real estate | One To Four Family [Member] | Performing Loans | ||
2021 | 67,843 | |
2020 | 86,487 | |
2019 | 24,356 | |
2018 | 13,340 | |
2017 | 13,954 | |
Prior | 56,239 | |
Revolving Loans Amortized Cost Basis | 28 | |
Loans and leases | 262,247 | |
Residential real estate | ||
Loans and leases | 252,121 | |
Residential real estate | Delinquency Status [Member] | ||
Loans and leases | 252,121 | |
Residential real estate | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 251,099 | |
Residential real estate | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 1,022 | |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,022 | |
Consumer | ||
Loans and leases | 69,438 | |
Consumer | Delinquency Status [Member] | ||
2021 | 3,465 | |
2020 | 6,882 | |
2019 | 2,788 | |
2018 | 2,321 | |
2017 | 865 | |
Prior | 3,035 | |
Revolving Loans Amortized Cost Basis | 50,082 | |
Loans and leases | 69,438 | |
Consumer | Non Performing Greater Than Ninety Days Past Due [Member] | ||
2021 | 47 | |
2017 | 17 | |
Prior | 1 | |
Revolving Loans Amortized Cost Basis | 1 | |
Loans and leases | 66 | |
Consumer | Performing Loans | ||
2021 | 3,418 | |
2020 | 6,882 | |
2019 | 2,788 | |
2018 | 2,321 | |
2017 | 848 | |
Prior | 3,034 | |
Revolving Loans Amortized Cost Basis | 50,081 | |
Loans and leases | 69,372 | |
Consumer | Nonperforming Financial Instruments [Member] | ||
Loans and leases | $ 66 | |
Lease Residential and Consumer Portfolio Segments [Member] | Delinquency Status [Member] | ||
Loans and leases | $ 580,945 | |
As a % of Total | 100.00% | |
Lease Residential and Consumer Portfolio Segments [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | $ 578,380 | |
As a % of Total | 99.56% | |
Lease Residential and Consumer Portfolio Segments [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | $ 2,565 | |
As a % of Total | 0.44% | |
Installment and other consumer loans | ||
Loans and leases | $ 91,302 | |
Installment and other consumer loans | Delinquency Status [Member] | ||
Loans and leases | 91,302 | |
Installment and other consumer loans | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 91,094 | |
Installment and other consumer loans | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 208 | |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Loans and leases | $ 208 |
NOTE 3 - LOANS_LEASES RECEIV_14
NOTE 3 - LOANS/LEASES RECEIVABLE - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Loans / Leases | 3 | 2 | 3 | 5 |
Pre-Modification Recorded Investment | $ 2,599 | $ 78 | $ 2,599 | $ 256 |
Post-Modification Recorded Investment | 2,599 | $ 78 | 2,599 | $ 256 |
Specific Allowance | $ 189 | 189 | ||
Payment Deferral [Member] | ||||
Number of Loans / Leases | 2 | 5 | ||
Pre-Modification Recorded Investment | $ 78 | $ 256 | ||
Post-Modification Recorded Investment | $ 78 | $ 256 | ||
Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | 2 | 2 | ||
Pre-Modification Recorded Investment | $ 67 | $ 67 | ||
Post-Modification Recorded Investment | 67 | 67 | ||
Specific Allowance | $ 7 | $ 7 | ||
Direct financing leases | Payment Deferral [Member] | ||||
Number of Loans / Leases | 2 | 3 | ||
Pre-Modification Recorded Investment | $ 78 | $ 145 | ||
Post-Modification Recorded Investment | $ 78 | $ 145 | ||
Commercial Portfolio Segment [Member] | Payment Deferral [Member] | ||||
Number of Loans / Leases | 2 | |||
Pre-Modification Recorded Investment | $ 111 | |||
Post-Modification Recorded Investment | $ 111 | |||
1-4 family real estate | Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 54 | $ 54 | ||
Post-Modification Recorded Investment | 54 | 54 | ||
Specific Allowance | $ 6 | $ 6 | ||
Consumer | Extended Maturity [Member] | ||||
Number of Loans / Leases | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 2,532 | $ 2,532 | ||
Post-Modification Recorded Investment | 2,532 | 2,532 | ||
Specific Allowance | $ 182 | $ 182 | ||
Consumer | Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 13 | $ 13 | ||
Post-Modification Recorded Investment | 13 | 13 | ||
Specific Allowance | $ 1 | $ 1 |
NOTE 3 - LOANS_LEASES RECEIV_15
NOTE 3 - LOANS/LEASES RECEIVABLE - Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance | $ 81,831 | $ 42,233 | $ 84,376 | $ 36,001 |
Provision for Loan, Lease, and Other Losses | 19,915 | 6,713 | 28,282 | |
Balance | 78,894 | $ 60,827 | 78,894 | $ 60,827 |
Accounting Standards Update 2016-13 | ||||
Balance | (8,102) | (8,102) | ||
Unfunded Loan Commitment | ||||
Balance | 9,846 | |||
Provision for Loan, Lease, and Other Losses | 141 | 870 | ||
Balance | 9,987 | 9,987 | ||
Unfunded Loan Commitment | Accounting Standards Update 2016-13 | ||||
Balance | $ 9,117 | $ 9,117 |
NOTE 4 - DERIVATIVES AND HEDG_3
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)item | |
Deposits | $ 4,688,935 | $ 4,599,137 |
Cash Flow Hedging | ||
Deposits | 300,000 | |
Interest rate cap | ||
Number redesignated interest rate caps | item | 3 | |
Amount of derivatives redesignated | $ 800 | |
Interest rate cap | Cash Flow Hedging | ||
Initial premium paid upfront for the two caps | $ 3,500 |
NOTE 4 - DERIVATIVES AND HEDG_4
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Assets | $ 193,395 | $ 222,757 |
Derivative Liabilities | (196,092) | (229,270) |
Interest rate cap | ||
Derivative Assets | 158 | 67 |
Interest rate cap | Cash Flow Hedging | ||
Derivative Assets | 613 | 259 |
Interest rate swap | ||
Derivative Assets | 191,134 | 222,431 |
Derivative Liabilities | (191,134) | (222,431) |
Interest rate swap | Cash Flow Hedging | ||
Derivative Assets | 1,490 | |
Derivative Liabilities | $ (4,958) | $ (6,839) |
NOTE 4 - DERIVATIVES AND HEDG_5
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Interest Rate Cap Derivatives (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Assets | $ 193,395 | $ 222,757 |
Interest rate swap | ||
Derivative Assets | 191,134 | 222,431 |
Interest rate cap | ||
Derivative Assets | 158 | 67 |
Cash Flow Hedging | Interest rate swap | ||
Derivative Assets | 1,490 | |
Cash Flow Hedging | Interest rate cap | ||
Derivative Assets | 613 | 259 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | ||
Notional Amount | 150,000 | |
Fair Value - Asset | 1,490 | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | $ 3 | 3 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 8 | 5 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Three Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 3 | 3 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Three Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 35 | 15 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 73 | 31 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Three Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 37 | 15 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Three Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 110 | 46 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 229 | 94 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 115 | 47 |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | QCBT - Loans | ||
Notional Amount | $ 35,000 | |
Fair Value - Asset | $ 351 | |
Receive Rate | 1.40% | |
Pay Rate | 2.81% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | CRBT - Loans | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 502 | |
Receive Rate | 1.40% | |
Pay Rate | 2.81% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | CSB - Loans | ||
Notional Amount | $ 40,000 | |
Fair Value - Asset | $ 386 | |
Receive Rate | 1.40% | |
Pay Rate | 2.81% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | SFCB - Loans | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 251 | |
Receive Rate | 1.40% | |
Pay Rate | 2.81% | |
Designated as Hedging Instrument | Derivative Assets | Cash Flow Hedging | Interest rate cap | ||
Notional Amount | $ 300,000 | |
Fair Value - Asset | 613 | 259 |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Interest rate swap | ||
Notional Amount | 39,000 | |
Fair Value - Liability | (4,958) | (6,839) |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust II | ||
Notional Amount | 10,000 | |
Fair Value - Liability | $ (1,282) | (1,767) |
Receive Rate | 3.00% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Fair Value - Liability | $ (1,025) | (1,414) |
Receive Rate | 3.00% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (1,246) | (1,721) |
Receive Rate | 1.74% | |
Pay Rate | 4.54% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Fair Value - Liability | $ (383) | (529) |
Receive Rate | 2.30% | |
Pay Rate | 5.17% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Fair Value - Liability | $ (447) | (616) |
Receive Rate | 1.87% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Fair Value - Liability | $ (575) | (792) |
Receive Rate | 1.87% | |
Pay Rate | 4.75% | |
Not Designated as Hedging Instrument | Interest rate swap | ||
Derivative Assets | $ 191,134 | 222,431 |
Not Designated as Hedging Instrument | Derivative Assets | ||
Notional Amount | 75,000 | |
Derivative Assets | 158 | 67 |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Derivative Assets | $ 3 | 2 |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 35 | 15 |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 120 | $ 50 |
Not Designated as Hedging Instrument | Derivative Assets | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% |
NOTE 4 - DERIVATIVES AND HEDG_6
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Significantly Impact of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative Assets | $ 193,395 | $ 193,395 | $ 222,757 | ||
Derivative Liabilities | 196,092 | 196,092 | 229,270 | ||
Interest rate swap | |||||
Derivative Assets | 191,134 | 191,134 | 222,431 | ||
Derivative Liabilities | 191,134 | 191,134 | 222,431 | ||
Fee Income On Derivative Contracts | 9,600 | $ 19,900 | 23,100 | $ 26,700 | |
Not Designated as Hedging Instrument | Interest rate swap | |||||
Derivative Asset, Notional Amount | 3,149,265 | 3,149,265 | 1,539,602 | ||
Derivative Assets | 191,134 | 191,134 | 222,431 | ||
Derivative Liability, Notional Amount | 3,149,265 | 3,149,265 | 1,539,602 | ||
Derivative Liabilities | $ 191,134 | $ 191,134 | $ 222,431 |
NOTE 4 - DERIVATIVES AND HEDG_7
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Swapped loan portfolio loan-to-value percentage, including the potential swap exposure | 65.00% | |
Interest rate swap | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 190,900 | $ 224,930 |
Interest rate swap | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 22,660 | 45,719 |
Interest rate swap | U.S. govt. sponsored agency securities. | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,612 | 3,628 |
Interest rate swap | Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 85,895 | 85,937 |
Interest rate swap | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 78,733 | $ 89,646 |
NOTE 5 - INCOME TAXES - Reconci
NOTE 5 - INCOME TAXES - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes | ||||
Computed "expected" tax expense | $ 5,699 | $ 3,472 | $ 10,219 | $ 6,226 |
Tax exempt income, net | (1,802) | (1,247) | (3,521) | (2,472) |
Bank-owned life insurance | (95) | (115) | (194) | (170) |
State income taxes, net of federal benefit, current year | 1,247 | 776 | 2,271 | 1,453 |
Tax Credits | (57) | (116) | (114) | (232) |
Excess tax benefit on stock options exercised and restricted stock awards vested | (40) | 2 | (204) | (262) |
Other | (164) | 26 | (128) | 139 |
Federal and state income tax expense | $ 4,788 | $ 2,798 | $ 8,329 | $ 4,682 |
Computed "expected" tax expense (in percentage) | 21.00% | 21.00% | 21.00% | 21.00% |
Tax exempt income, net (in percentage) | (6.60%) | (7.50%) | (7.20%) | (8.30%) |
Bank-owned life insurance (in percentage) | (0.40%) | (0.70%) | (0.40%) | (0.60%) |
State income taxes, net of federal benefit, current year (in percentage) | 4.60% | 4.70% | 4.70% | 4.90% |
Tax credits (in percentage) | (0.20%) | (0.70%) | (0.20%) | (0.80%) |
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.10%) | (0.40%) | (0.90%) | |
Other (in percentage) | (0.60%) | 0.10% | (0.30%) | 0.50% |
Federal and state income tax expense (in percentage) | 17.60% | 16.90% | 17.20% | 15.80% |
NOTE 6 - EARNINGS PER SHARE - B
NOTE 6 - EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per Share | ||||||
Net income | $ 22,349 | $ 17,982 | $ 13,739 | $ 11,228 | $ 40,331 | $ 24,967 |
Basic EPS | $ 1.41 | $ 0.87 | $ 2.55 | $ 1.58 | ||
Diluted EPS | $ 1.39 | $ 0.86 | $ 2.52 | $ 1.56 | ||
Weighted average common shares outstanding | 15,813,932 | 15,747,056 | 15,808,788 | 15,771,926 | ||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 231,307 | 148,280 | 226,606 | 185,032 | ||
Weighted average common and common equivalent shares outstanding (in shares) | 16,045,239 | 15,895,336 | 16,035,394 | 15,956,958 |
NOTE 7 - FAIR VALUE (Details)
NOTE 7 - FAIR VALUE (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities available for sale, at fair value | $ 337,286 | $ 361,966 |
Derivatives | 193,395 | 222,757 |
Assets Fair Value | 87,242 | 9,948 |
Derivatives | 196,092 | 229,270 |
Interest rate swap | ||
Derivatives | 191,134 | 222,431 |
Derivatives | 191,134 | 222,431 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 87,242 | 9,948 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 193,395 | 222,757 |
Assets Fair Value | 530,681 | 584,723 |
Liabilities Fair Value | 196,092 | 229,270 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 196,092 | 229,270 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 193,395 | 222,757 |
Assets Fair Value | 530,681 | 584,723 |
Liabilities Fair Value | 196,092 | 229,270 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | 196,092 | 229,270 |
U.S. govt. sponsored agency securities | ||
Securities available for sale, at fair value | 14,670 | 15,336 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 14,670 | 15,336 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 14,670 | 15,336 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 106,138 | 132,842 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 106,138 | 132,842 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 106,138 | 132,842 |
Asset-backed securities | ||
Securities available for sale, at fair value | 31,779 | 40,683 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 31,779 | 40,683 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 31,779 | 40,683 |
Municipal securities. | ||
Securities available for sale, at fair value | 169,320 | 152,408 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 169,320 | 152,408 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 169,320 | 152,408 |
Other Securities | ||
Securities available for sale, at fair value | 15,379 | 20,697 |
Other Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 15,379 | 20,697 |
Other Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 15,379 | 20,697 |
Impaired Loans Leases [Member] | ||
Assets Fair Value | 85,276 | 9,926 |
Impaired Loans Leases [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 85,276 | 9,926 |
Other Real Estate Owned [Member] | ||
Assets Fair Value | 1,966 | 22 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 1,966 | $ 22 |
NOTE 7 - FAIR VALUE - Quantitat
NOTE 7 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) |
Fair value | $ 87,242 | $ 9,948 |
Impaired Loans Leases [Member] | ||
Fair value | $ 85,276 | 9,926 |
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | |
Impaired Loans Leases [Member] | Minimum | ||
Impaired loans/leases, measurement input | item | (10) | |
Impaired Loans Leases [Member] | Maximum | ||
Impaired loans/leases, measurement input | item | (30) | |
Other Real Estate Owned [Member] | ||
Fair value | $ 1,966 | 22 |
Valuation technique, OREO | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input, OREO | us-gaap:MeasurementInputAppraisedValueMember | |
Other Real Estate Owned [Member] | Minimum | ||
OREO, measurement input | item | 0 | |
Other Real Estate Owned [Member] | Maximum | ||
OREO, measurement input | item | (35) | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value | $ 87,242 | 9,948 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans Leases [Member] | ||
Fair value | 85,276 | 9,926 |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair value | $ 1,966 | $ 22 |
NOTE 7 - FAIR VALUE - Carrying
NOTE 7 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Interest-bearing deposits at financial institutions | $ 87,440 | $ 86,596 |
Securities held to maturity, fair value | 523,442 | 521,277 |
Securities available for sale, at fair value | 337,286 | 361,966 |
Derivatives | 193,395 | 222,757 |
Derivatives | 196,092 | 229,270 |
Interest rate cap | ||
Derivatives | 158 | 67 |
Interest rate swap | ||
Derivatives | 191,134 | 222,431 |
Derivatives | 191,134 | 222,431 |
Fair Value, Inputs, Level 1 [Member] | Carrying Value | ||
Cash and due from banks | 55,598 | 61,329 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value | ||
Cash and due from banks | 55,598 | 61,329 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Federal funds sold | 1,340 | 9,080 |
Securities held to maturity, fair value | 473,159 | 476,165 |
Securities available for sale, at fair value | 337,286 | 361,966 |
Loans/leases receivable, net | 4,259,852 | 4,157,562 |
Short-term borrowings | 7,070 | 5,430 |
FHLB advances | 40,000 | 15,000 |
Subordinated notes | 113,771 | 118,691 |
Junior subordinated debentures | 38,067 | 37,993 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Non-maturity Deposits [Member] | ||
Deposits | 4,232,439 | 4,138,478 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Time Deposits [Member] | ||
Deposits | 456,496 | 460,659 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate cap | ||
Derivatives | 193,395 | 222,757 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate swap | ||
Derivatives | 196,092 | 229,270 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest-bearing Deposits [Member] | ||
Interest-bearing deposits at financial institutions | 87,440 | 86,596 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Federal funds sold | 1,340 | 9,080 |
Securities held to maturity, fair value | 523,442 | 521,277 |
Securities available for sale, at fair value | 337,286 | 361,966 |
Loans/leases receivable, net | 4,174,761 | 4,112,735 |
Short-term borrowings | 7,070 | 5,430 |
FHLB advances | 39,996 | 14,998 |
Subordinated notes | 116,441 | 112,406 |
Junior subordinated debentures | 30,799 | 30,618 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Non-maturity Deposits [Member] | ||
Deposits | 4,232,439 | 4,138,478 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Time Deposits [Member] | ||
Deposits | 453,483 | 465,681 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate cap | ||
Derivatives | 193,395 | 222,757 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate swap | ||
Derivatives | 196,092 | 229,270 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest-bearing Deposits [Member] | ||
Interest-bearing deposits at financial institutions | 87,440 | 86,596 |
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||
Loans/leases receivable, net | 78,959 | 9,191 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Loans/leases receivable, net | 85,276 | 9,926 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 193,395 | 222,757 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 196,092 | 229,270 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 193,395 | 222,757 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | $ 196,092 | $ 229,270 |
NOTE 8 - BUSINESS SEGMENT INF_3
NOTE 8 - BUSINESS SEGMENT INFORMATION - (Details) | Jun. 30, 2021subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
NOTE 8 - BUSINESS SEGMENT INF_4
NOTE 8 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Total revenue | $ 68,199 | $ 77,276 | $ 139,253 | $ 141,454 | |||
Net interest income | 43,516 | 40,948 | 85,491 | 78,646 | |||
Provision for credit losses | 19,915 | 6,713 | 28,282 | ||||
Net income (loss) from continuing operations | 22,349 | $ 17,982 | 13,739 | $ 11,228 | 40,331 | 24,967 | |
Goodwill | 74,066 | 74,248 | 74,066 | 74,248 | $ 74,066 | ||
Intangibles | 10,365 | 13,872 | 10,365 | 13,872 | 11,381 | ||
Total assets | 5,805,165 | 5,604,761 | 5,805,165 | 5,604,761 | $ 5,682,797 | ||
Intersegment Eliminations [Member] | |||||||
Total revenue | (102) | (17,788) | (224) | (33,502) | |||
Net interest income | 327 | 245 | 575 | 477 | |||
Net income (loss) from continuing operations | (26,589) | (17,421) | (49,446) | (32,674) | |||
Total assets | (179,303) | (765,385) | (179,303) | (765,385) | |||
Commercial Banking | QCBT | Operating Segments [Member] | |||||||
Total revenue | 21,676 | 21,712 | 42,960 | 43,399 | |||
Net interest income | 16,152 | 15,653 | 31,938 | 30,080 | |||
Provision for credit losses | 136 | 7,539 | 2,248 | 10,722 | |||
Net income (loss) from continuing operations | 8,679 | 3,999 | 15,843 | 9,723 | |||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||
Total assets | 2,059,634 | 1,984,245 | 2,059,634 | 1,984,245 | |||
Commercial Banking | CRBT | Operating Segments [Member] | |||||||
Total revenue | 26,498 | 35,505 | 56,855 | 58,384 | |||
Net interest income | 14,005 | 12,820 | 27,611 | 24,206 | |||
Provision for credit losses | (692) | 7,160 | 1,492 | 9,410 | |||
Net income (loss) from continuing operations | 11,145 | 11,043 | 22,541 | 17,504 | |||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | |||
Intangibles | 1,946 | 2,437 | 1,946 | 2,437 | |||
Total assets | 1,913,761 | 2,021,043 | 1,913,761 | 2,021,043 | |||
Commercial Banking | CSB | Operating Segments [Member] | |||||||
Total revenue | 10,809 | 9,853 | 21,232 | 20,074 | |||
Net interest income | 8,672 | 7,538 | 17,040 | 15,038 | |||
Provision for credit losses | 756 | 2,811 | 2,122 | 4,775 | |||
Net income (loss) from continuing operations | 3,109 | 569 | 5,171 | 1,635 | |||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||
Intangibles | 2,979 | 3,643 | 2,979 | 3,643 | |||
Total assets | 1,079,930 | 903,648 | 1,079,930 | 903,648 | |||
Commercial Banking | SFCB | Operating Segments [Member] | |||||||
Total revenue | 9,181 | 9,533 | 17,927 | 18,224 | |||
Net interest income | 6,479 | 6,201 | 12,548 | 11,843 | |||
Provision for credit losses | (200) | 2,405 | 851 | 3,375 | |||
Net income (loss) from continuing operations | 3,685 | 1,899 | 5,954 | 4,105 | |||
Goodwill | 45,975 | 45,975 | 45,975 | 45,975 | |||
Intangibles | 5,440 | 6,344 | 5,440 | 6,344 | |||
Total assets | 850,067 | 745,470 | 850,067 | 745,470 | |||
Other Segments | Operating Segments [Member] | |||||||
Total revenue | 137 | 18,461 | 503 | 34,875 | |||
Net interest income | (2,119) | (1,509) | (4,221) | (2,998) | |||
Net income (loss) from continuing operations | 22,320 | 13,650 | 40,268 | 24,674 | |||
Goodwill | 182 | 182 | |||||
Intangibles | 1,448 | 1,448 | |||||
Total assets | $ 81,076 | $ 715,740 | $ 81,076 | $ 715,740 |
NOTE 9 - REGULATORY CAPITAL R_3
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS - (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Total risk-based capital, actual, amount | $ 760,593 | $ 721,004 |
Total risk-based capital, actual, ratio | 0.1472 | 14.95 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 413,445 | $ 385,832 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 542,647 | $ 506,404 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 516,806 | $ 482,290 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 581,919 | $ 546,729 |
Tier 1 risk-based capital, actual, ratio | 0.1126 | 11.34 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 310,084 | $ 289,374 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 439,285 | $ 409,946 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 413,445 | $ 385,832 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 581,919 | $ 546,729 |
Tier 1 leverage, actual, ratio | 0.1029 | 9.49 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 226,250 | $ 230,345 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 226,250 | $ 230,345 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 282,812 | $ 287,931 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 543,852 | $ 508,736 |
Common equity Tier 1, actual ratio | 0.1052 | 10.55 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 232,563 | $ 217,030 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 361,764 | $ 337,603 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 335,924 | $ 313,488 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
QCBT | ||
Total risk-based capital, actual, amount | $ 228,180 | $ 213,608 |
Total risk-based capital, actual, ratio | 0.1315 | 12.24 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 138,799 | $ 139,581 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 182,174 | $ 183,200 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 173,499 | $ 174,477 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 206,355 | $ 191,693 |
Tier 1 risk-based capital, actual, ratio | 0.1189 | 10.99 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 104,099 | $ 104,686 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 147,474 | $ 148,305 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 138,799 | $ 139,581 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 206,355 | $ 191,693 |
Tier 1 leverage, actual, ratio | 0.0975 | 8.48 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 84,699 | $ 90,430 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 84,699 | $ 90,430 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 105,874 | $ 113,038 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 206,355 | $ 191,693 |
Common equity Tier 1, actual ratio | 0.1189 | 10.99 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 78,075 | $ 78,514 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 121,449 | $ 122,134 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 112,774 | $ 113,410 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CRBT | ||
Total risk-based capital, actual, amount | $ 243,211 | $ 217,227 |
Total risk-based capital, actual, ratio | 0.1386 | 13.14 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 140,431 | $ 132,269 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 184,316 | $ 173,603 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 175,539 | $ 165,336 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 221,202 | $ 196,438 |
Tier 1 risk-based capital, actual, ratio | 0.1260 | 11.88 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 105,323 | $ 99,202 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 149,208 | $ 140,536 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 140,431 | $ 132,269 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 221,202 | $ 196,438 |
Tier 1 leverage, actual, ratio | 0.1195 | 10.01 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 74,072 | $ 78,535 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 74,072 | $ 78,535 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 92,590 | $ 98,169 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 221,202 | $ 196,438 |
Common equity Tier 1, actual ratio | 0.1260 | 11.88 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 78,992 | $ 74,401 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 122,877 | $ 115,735 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 114,100 | $ 107,469 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CSB | ||
Total risk-based capital, actual, amount | $ 114,512 | $ 108,040 |
Total risk-based capital, actual, ratio | 0.1199 | 12.69 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 76,389 | $ 68,117 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 100,261 | $ 89,404 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 95,487 | $ 85,146 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 102,521 | $ 97,350 |
Tier 1 risk-based capital, actual, ratio | 0.1074 | 11.43 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 57,292 | $ 51,088 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 81,164 | $ 72,374 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 76,389 | $ 68,117 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 102,521 | $ 97,350 |
Tier 1 leverage, actual, ratio | 0.0978 | 10.27 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 41,943 | $ 37,930 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 41,943 | $ 37,930 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 52,429 | $ 47,412 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 102,521 | $ 97,350 |
Common equity Tier 1, actual ratio | 0.1074 | 11.43 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 42,969 | $ 38,316 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 66,841 | $ 59,602 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 62,066 | $ 55,345 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
SFCB | ||
Total risk-based capital, actual, amount | $ 91,663 | $ 90,334 |
Total risk-based capital, actual, ratio | 0.1260 | 14.35 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 58,189 | $ 50,357 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 76,373 | $ 66,094 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 72,736 | $ 62,947 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 82,554 | $ 77,668 |
Tier 1 risk-based capital, actual, ratio | 0.1135 | 12.34 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 43,641 | $ 37,768 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 61,825 | $ 53,505 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 58,189 | $ 50,357 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 82,554 | $ 77,668 |
Tier 1 leverage, actual, ratio | 0.1053 | 10.87 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 31,351 | $ 28,575 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 31,351 | $ 28,575 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 39,189 | $ 35,719 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 82,554 | $ 77,668 |
Common equity Tier 1, actual ratio | 0.1135 | 12.34 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 32,731 | $ 28,326 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 50,915 | $ 44,063 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 47,278 | $ 40,915 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |