Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $1.00 Par Value | ||
Trading Symbol | QCRH | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 895,098,226 | ||
Entity Common Stock, Shares Outstanding (in shares) | 16,825,981 | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Davenport, Iowa | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000906465 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 59,723 | $ 37,490 |
Federal funds sold | 56,910 | 12,370 |
Interest-bearing deposits at financial institutions | 67,360 | 75,292 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 587,142 | 472,385 |
Securities available for sale, at fair value | 340,960 | 337,830 |
Total securities | 928,102 | 810,215 |
Loans receivable held for sale | 1,480 | 3,828 |
Loans/leases receivable held for investment | 6,137,391 | 4,676,304 |
Gross loans/leases receivable | 6,138,871 | 4,680,132 |
Less allowance for credit losses | (87,706) | (78,721) |
Net loans/leases receivable | 6,051,165 | 4,601,411 |
Bank-owned life insurance | 106,580 | 62,424 |
Premises and equipment, net | 117,948 | 78,530 |
Restricted investment securities | 42,501 | 19,353 |
Other real estate owned, net | 133 | |
Goodwill | 137,607 | 74,066 |
Intangibles | 16,759 | 9,349 |
Derivatives | 177,631 | 222,220 |
Other assets | 186,418 | 93,412 |
Total assets | 7,948,837 | 6,096,132 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,262,981 | 1,268,788 |
Interest-bearing | 4,721,236 | 3,653,984 |
Total deposits | 5,984,217 | 4,922,772 |
Short-term borrowings | 129,630 | 3,800 |
Federal Home Loan Bank advances | 415,000 | 15,000 |
Subordinated notes | 232,662 | 113,850 |
Junior subordinated debentures | 48,602 | 38,155 |
Derivatives | 200,701 | 225,135 |
Other liabilities | 165,301 | 100,410 |
Total liabilities | 7,176,113 | 5,419,122 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 December 2022 and December 2021 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 December 2022 - 16,795,942 shares issued and outstanding December 2021 - 15,613,460 shares issued and outstanding | 16,796 | 15,613 |
Additional paid-in capital | 370,712 | 273,768 |
Retained earnings | 450,114 | 386,077 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | (44,677) | 5,925 |
Derivatives | (20,221) | (4,373) |
Total stockholders' equity | 772,724 | 677,010 |
Total liabilities and stockholders' equity | $ 7,948,837 | $ 6,096,132 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
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) | 16,795,942 | 15,613,460 |
Common stock, outstanding (in shares) | 16,795,942 | 15,613,460 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Loans/leases, including fees | $ 257,837 | $ 173,940 | $ 173,967 |
Securities: | |||
Taxable | 12,078 | 8,923 | 7,787 |
Nontaxable | 19,089 | 16,167 | 14,900 |
Interest-bearing deposits at financial institutions | 1,089 | 173 | 669 |
Restricted investment securities | 2,068 | 950 | 1,031 |
Federal funds sold | 410 | 2 | 19 |
Total interest and dividend income | 292,571 | 200,155 | 198,373 |
Interest expense: | |||
Deposits | 42,362 | 13,300 | 23,269 |
Short-term borrowings | 299 | 5 | 84 |
Federal Home Loan Bank advances | 6,954 | 70 | 1,087 |
Other borrowings | 53 | ||
Subordinated notes | 9,200 | 6,272 | 4,697 |
Junior subordinated debentures | 2,583 | 2,275 | 2,286 |
Total interest expense | 61,451 | 21,922 | 31,423 |
Net interest income | 231,120 | 178,233 | 166,950 |
Provision for credit losses | 8,284 | 3,486 | 55,704 |
Net interest income after provision for credit losses | 222,836 | 174,747 | 111,246 |
Noninterest income: | |||
Revenue | 373,300 | 300,577 | 312,171 |
Gains on sales of residential real estate loans, net | 2,411 | 4,397 | 4,680 |
Gains on sales of government guaranteed portions of loans, net | 119 | 227 | 224 |
Swap fee income/capital markets revenue | 41,309 | 60,992 | 74,821 |
Securities gains (losses), net | (88) | 2,484 | |
Earnings on bank-owned life insurance | 2,056 | 1,838 | 1,904 |
Loan related fee income | 2,428 | 2,268 | 2,200 |
Fair value gain on derivatives | 1,975 | 170 | |
Other | 1,372 | 3,870 | 2,614 |
Total noninterest income | 80,729 | 100,422 | 113,798 |
Noninterest expense: | |||
Salaries and employee benefits | 115,368 | 100,907 | 96,268 |
Occupancy and equipment expense | 21,975 | 15,918 | 16,504 |
Professional and data processing fees | 16,282 | 14,579 | 14,644 |
Acquisition costs | 3,715 | 624 | |
Post-acquisition compensation, transition and integration costs | 5,526 | 214 | |
Disposition costs | 13 | 690 | |
FDIC insurance, other insurance and regulatory fees | 5,806 | 4,475 | 4,164 |
Loan/lease expense | 1,829 | 1,671 | 1,435 |
Net cost of (income from) and gains/losses on operations of other real estate | (40) | (1,420) | (307) |
Advertising and marketing | 4,958 | 4,254 | 3,260 |
Communication and data connectivity | 2,213 | 1,798 | 1,642 |
Supplies | 1,109 | 1,053 | 1,097 |
Bank service charges | 2,282 | 2,173 | 2,016 |
Losses on liability extinguishment | 3,907 | ||
Correspondent banking expense | 840 | 799 | 838 |
Intangibles amortization | 2,854 | 2,032 | 2,149 |
Goodwill impairment | 500 | ||
Payment card processing | 1,964 | 1,412 | 556 |
Trust expense | 775 | 758 | 740 |
Loss on sale of subsidiary | 158 | ||
Other | 2,560 | 2,656 | 1,280 |
Total noninterest expense | 190,016 | 153,702 | 151,755 |
Net income before income taxes | 113,549 | 121,467 | 73,289 |
Federal and state income tax expense | 14,483 | 22,562 | 12,707 |
Net income | $ 99,066 | $ 98,905 | $ 60,582 |
Basic earnings per common share | $ 5.94 | $ 6.30 | $ 3.84 |
Diluted earnings per common share | $ 5.87 | $ 6.20 | $ 3.80 |
Weighted average common shares outstanding | 16,681,844 | 15,708,744 | 15,771,650 |
Weighted average common and common equivalent shares outstanding | 16,890,007 | 15,944,708 | 15,952,637 |
Cash dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
Trust fees | |||
Noninterest income: | |||
Revenue | $ 10,641 | $ 11,206 | $ 9,207 |
Investment advisory and management fees | |||
Noninterest income: | |||
Revenue | 3,858 | 4,080 | 5,318 |
Deposit service fees | |||
Noninterest income: | |||
Revenue | 8,134 | 6,132 | 6,041 |
Debit card fees | |||
Noninterest income: | |||
Revenue | 5,459 | 4,216 | 3,402 |
Correspondent banking fees | |||
Noninterest income: | |||
Revenue | $ 967 | $ 1,114 | $ 903 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 99,066 | $ 98,905 | $ 60,582 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) arising during the period before tax | (67,387) | (4,158) | 10,657 |
Less reclassification adjustment for gains (losses) included in net income before tax | (88) | 2,484 | |
Unrealized losses on securities available for sale | (67,387) | (4,070) | 8,173 |
Unrealized holding gains (losses) arising during the period before tax | (22,130) | 3,427 | (6,854) |
Unrealized gains (losses) on derivatives | (21,129) | 4,124 | (4,862) |
Other comprehensive income (loss), before tax | (88,516) | 54 | 3,311 |
Tax expense (benefit) | (22,066) | (122) | 837 |
Other comprehensive income (loss), net of tax | (66,450) | 176 | 2,474 |
Comprehensive income | 32,616 | 99,081 | 63,056 |
Unhedging Caplet | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment before tax | (649) | ||
Swap | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment before tax | (792) | ||
Caplet Amortization. | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment before tax | $ (1,001) | $ (697) | $ (551) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
Balance at Dec. 31, 2019 | $ 15,828 | $ 274,785 | $ 245,836 | $ (1,098) | $ 535,351 |
Net income | 60,582 | 60,582 | |||
Other comprehensive income, net of tax | 2,474 | 2,474 | |||
Common cash dividends declared | (3,779) | (3,779) | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (101) | (1,843) | (1,835) | (3,779) | |
Stock-based compensation expense | 2,150 | 2,150 | |||
Issuance of common stock under employee benefit plans | 79 | 715 | 794 | ||
Balance at Dec. 31, 2020 | 15,806 | 275,807 | 300,804 | 1,376 | 593,793 |
Net income | 98,905 | 98,905 | |||
Other comprehensive income, net of tax | 176 | 176 | |||
Common cash dividends declared | (3,781) | (3,781) | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (293) | (4,961) | (8,914) | (14,168) | |
Stock-based compensation expense | 2,352 | 2,352 | |||
Issuance of common stock under employee benefit plans | 100 | 570 | 670 | ||
Balance (ASU 2016-01) at Dec. 31, 2021 | (937) | (937) | |||
Balance at Dec. 31, 2021 | 15,613 | 273,768 | 386,077 | 1,552 | 677,010 |
Net income | 99,066 | 99,066 | |||
Other comprehensive income, net of tax | (66,450) | (66,450) | |||
Common cash dividends declared | (4,022) | (4,022) | |||
Issuance of shares of common stock as a result of the acquisition | 2,071 | 115,143 | 117,214 | ||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (970) | (20,977) | (31,007) | (52,954) | |
Stock-based compensation expense | 2,438 | 2,438 | |||
Issuance of common stock under employee benefit plans | 82 | 340 | 422 | ||
Balance at Dec. 31, 2022 | $ 16,796 | $ 370,712 | $ 450,114 | $ (64,898) | $ 772,724 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
Issuance of shares of common stock as s result of stock options exercised (in shares) | 41,695 | 60,317 | 41,650 |
Common Stock | |||
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 970,000 | 293,153 | 100,932 |
Issuance of shares of common stock as a result of the acquisition, net of issuance cost (in shares) | 2,071,291 | ||
Retained Earnings | |||
Cash dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 99,066 | $ 98,905 | $ 60,582 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 7,662 | 5,359 | 5,333 |
Provision for credit losses | 8,284 | 3,486 | 55,704 |
Deferred income taxes | (4,682) | 15,272 | (14,530) |
Stock-based compensation expense | 2,438 | 2,352 | 2,150 |
Deferred compensation expense accrued | 4,062 | 4,580 | 3,821 |
Gains on other real estate owned, net | (129) | (1,754) | (317) |
Amortization of premiums on securities, net | 1,337 | 1,933 | 969 |
Caplet amortization | 1,001 | 697 | 551 |
Fair value gain on derivatives | (1,975) | (170) | |
Securities (gains) losses, net | 88 | (2,484) | |
Loans originated for sale | (99,394) | (204,449) | (236,734) |
Proceeds on sales of loans | 107,487 | 209,003 | 241,553 |
Gains on sales of residential real estate loans | (2,411) | (4,397) | (4,680) |
Gains on sales of government guaranteed portions of loans | (119) | (227) | (224) |
Loss on liability extinguishment, net | 3,907 | ||
Losses (gains) on sales and disposals of premises and equipment | 378 | 1,059 | (19) |
Amortization of intangibles | 2,854 | 2,032 | 2,149 |
Accretion of acquisition fair value adjustments, net | (8,581) | (1,340) | (3,271) |
Increase in cash value of bank-owned life insurance | (2,056) | (1,838) | (1,904) |
Loss on sale of subsidiary/certain assets and liabilities of subsidiary | 158 | ||
Goodwill impairment | 500 | ||
Increase in other assets | (42,572) | (47,006) | (9,445) |
Increase in other liabilities | 46,049 | 4,633 | 8,408 |
Net cash provided by operating activities | 118,699 | 88,218 | 112,177 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net (increase) decrease in federal funds sold | (44,540) | (3,290) | 720 |
Net decrease in interest-bearing deposits at financial institutions | 25,066 | 11,304 | 61,295 |
Proceeds from sales of other real estate owned | 482 | 4,742 | 4,477 |
Activity in securities portfolio: | |||
Purchases | (230,501) | (173,204) | (356,127) |
Calls, maturities and redemptions | 43,638 | 106,442 | 53,007 |
Paydowns | 31,805 | 65,410 | 47,313 |
Sales | 111,375 | 23,874 | 38,562 |
Activity in restricted investment securities: | |||
Purchases | (23,086) | (1,280) | (4,600) |
Redemptions | 2,158 | 30 | 9,749 |
Proceeds from the liquidation of bank-owned life insurance | 10,999 | ||
Net increase in loans/leases originated and held for investment | (654,861) | (433,544) | (564,748) |
Purchase of premises and equipment | (33,261) | (13,981) | (4,268) |
Proceeds from sales of premises and equipment | 2,060 | 1,726 | 101 |
Payment for termination of derivative | (808) | ||
Net cash transferred out in sale of subsidiary | (154) | ||
Purchase of bank-owned life insurance | (10,000) | ||
Net cash acquired from acquisition | 144,973 | ||
Net cash used in investing activities | (634,692) | (411,771) | (704,482) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposit accounts | (15,128) | 323,635 | 716,898 |
Net increase (decrease) in short-term borrowings | 125,830 | (1,630) | (7,993) |
Activity in Federal Home Loan Bank advances: | |||
Term advances | 125,000 | ||
Calls and maturities | (121,600) | ||
Net change in short-term and overnight advances | 400,000 | (94,300) | |
Prepayments | (16,000) | (55,274) | |
Activity in other borrowings: | |||
Proceeds from other borrowings | 10,000 | ||
Paydown of revolving line of credit | (10,000) | ||
Prepayments on brokered and public time deposits | (29,153) | ||
Prepayments of subordinated notes | (5,000) | ||
Proceeds from subordinated notes | 100,000 | 50,000 | |
Payment of cash dividends on common stock | (3,944) | (3,793) | (3,779) |
Proceeds from issuance of common stock, net | 422 | 670 | 1,360 |
Repurchase and cancellation of shares | (52,954) | (14,168) | (3,779) |
Net cash provided by financing activities | 538,226 | 299,714 | 577,380 |
Net increase (decrease) in cash and due from banks | 22,233 | (23,839) | (14,925) |
Cash and due from banks, beginning | 37,490 | 61,329 | 76,254 |
Cash and due from banks, ending | 59,723 | 37,490 | 61,329 |
Supplemental disclosure of cash flow information, cash payments (receipts) for: | |||
Interest | 58,652 | 23,373 | 32,178 |
Income/franchise taxes | 1,057 | 48,988 | 24,567 |
Supplemental schedule of noncash investing activities: | |||
Change in accumulated other comprehensive income, (loss), unrealized gains (losses) on securities available for sale and derivative instruments, net | (66,450) | 176 | 2,474 |
Change in retained earnings from adoption of ASU 2016-13 | (937) | ||
Transfers of loans to other real estate owned | 431 | 2,962 | 51 |
Due to broker for purchases of securities | 1,000 | ||
(Decrease) increase in the fair value of back-to-back interest rate swap assets and liabilities | (54,441) | (1,376) | 137,752 |
Dividends payable | 1,013 | $ 935 | 947 |
Consideration received on sale of the Bates Companies | 1,523 | ||
Fair value of assets acquired: | |||
Cash and due from banks | 171,844 | ||
Interest-bearing deposits at financial institutions | 17,134 | ||
Securities | 143,017 | ||
Loans receivable, net | 801,697 | ||
Bank-owned life insurance | 32,100 | ||
Premises and equipment, net | 16,257 | ||
Restricted investment securities | 2,220 | ||
Other real estate owned | 55 | ||
Intangibles | 10,264 | ||
Other assets | 23,685 | ||
Total assets acquired | 1,218,273 | ||
Fair value of liabilities assumed: | |||
Deposits | 1,076,573 | ||
FHLB advances | 16,000 | ||
Subordinated debentures | 19,621 | ||
Junior subordinated debentures | 10,310 | ||
Other liabilities | 15,225 | ||
Total liabilities assumed | 1,137,729 | ||
Net assets acquired | 80,544 | ||
Consideration paid: | |||
Cash paid | 26,871 | ||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | ||
Goodwill | 63,541 | ||
Net cash paid | $ 144,973 | ||
Supplemental disclosure of cash flow information for sale of subsidiary/certain assets and certain liabilities of subsidiary: | |||
Cash proceeds** | 195 | ||
Assets Sold: | |||
Cash and due from banks | 349 | ||
Premises and equipment, net | 19 | ||
Other assets | 2,259 | ||
Total assets sold | 2,627 | ||
Liabilities Sold: | |||
Other liabilities | 946 | ||
Total liabilities sold | 946 | ||
Net Assets Sold | 1,681 | ||
Forgiveness of earn-out consideration | 880 | ||
Note receivable consideration | 448 | ||
Bates Companies | |||
Activity in restricted investment securities: | |||
Net cash transferred out in sale of subsidiary | (154) | ||
Bates Companies | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Goodwill impairment | $ 500 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | Note 1. Nature of Business and Significant Accounting Policies Basis of presentation: The acronyms and abbreviations identified below are used in the Notes to the Consolidated Financial Statements, as well as in the other sections of this Annual Report on Form 10-K (including appendices). It may be helpful to refer back to this page as you read this report. ACL: Allowance for credit losses Guaranty Bank: Guaranty Bank and Trust Company AFS: Available for sale HTM: Held to maturity Allowance: Allowance for credit losses Iowa Superintendent: Iowa Superintendent of Banking AOCI: Accumulated other comprehensive income (loss) LCR: Liquidity Coverage Ratio ASC: Accounting Standards Codification LIBOR: London Inter-Bank Offered Rate ASC 805: Business Combination Standard LIHTC: Low-income housing tax credit ASU: Accounting Standards Update m2: m2 Equipment Finance, LLC Bates Companies: Bates Financial Advisors, Inc., Bates MD&A: Management’s Discussion & Analysis Financial Services, Inc., Bates Securities, Inc. and Bates Missouri Division of Finance: Missouri Department of Financial Group, Inc. Commerce and Insurance BHCA: Bank Holding Company Act of 1956 NIM: Net interest margin BOLI: Bank-owned life insurance NOL: Net operating loss Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy Security Act CECL: Current Expected Credit Losses CFPB: Bureau of Consumer Financial Protection NPL: Nonperforming loan NSFR: Net Stable Funding Ratio OBS: Off-balance sheet OREO: Other real estate owned CNB: Community National Bank OTTI: Other-than-temporary impairment Community National: Community National Bancorporation COVID-19: Coronavirus Disease 2019 CRA: Community Reinvestment Act PCAOB: Public Company Accounting Oversight Board PCD: Purchased credit deteriorated loan PCI: Purchased credit impaired CRBT: Cedar Rapids Bank & Trust Company PPP: Paycheck Protection Program CRE: Commercial real estate Provision: Provision for credit losses CRE Guidance: Interagency Concentrations in Commercial PUD LOC: Public Unit Deposit Letter of Credit Real Estate Lending, Sound Risk Management Practices QCBT: Quad City Bank & Trust Company guidance ROAA: Return on Average Assets CSB: Community State Bank ROACE: Return on Average Common Equity C&I: Commercial and industrial ROAE: Return on Average Equity Dodd-Frank Act: Dodd-Frank Wall Street Reform and ROU: Right of use Consumer Protection Act SBA: U.S. Small Business Administration DGCL: Delaware General Corporation Law SEC: Securities and Exchange Commission DIF: Deposit Insurance Fund SERPs: Supplemental Executive Retirement Plans EBA: Excess Balance Account SFCB: Springfield First Community Bank EPS: Earnings per share SFG: Specialty Finance Group ESG: Environmental, Social and Governance SOFR: Secured Overnight Financing Rate Exchange Act: Securities Exchange Act of 1934, as amended Springfield Bancshares: Springfield Bancshares, Inc. FASB: Financial Accounting Standards Board TA: Tangible assets FDIC: Federal Deposit Insurance Corporation TCE: Tangible common equity Federal Reserve: Board of Governors of the Federal Reserve TDRs: Troubled debt restructurings System TEY: Tax equivalent yield FHLB: Federal Home Loan Bank The Company: QCR Holdings, Inc. FRB: Federal Reserve Bank of Chicago TRBC: Total risk-based capital FTEs: Full-time equivalents Treasury: U.S. Department of the Treasury GAAP: Generally Accepted Accounting Principles USA Patriot Act: Uniting and Strengthening America by GB: Guaranty Bank Providing Appropriate Tools Required to Intercept GFED: Guaranty Federal Bancshares and Obstruct Terrorism Act of 2001 Goldman Sachs: Goldman Sachs and Company USDA: U.S. Department of Agriculture Guaranty: Guaranty Bankshares, Ltd. Note 1. Nature of Business and Significant Accounting Policies (continued) Nature of business: QCR Holdings, Inc. is a bank holding company that has elected to operate as a financial holding company under the BHCA. The Company provides bank and bank-related services through its banking subsidiaries, QCBT, CRBT, CSB and GB. The Company also engages in direct financing lease and equipment financing contracts through its wholly-owned equity investment by QCBT in m2, headquartered in Brookfield, Wisconsin. The Company also engages in wealth management services through its banking subsidiaries. On April 1, 2022, the Company completed its acquisition of GFED and on April 2, 2022 merged GB into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. See Note 2 to the Consolidated Financial Statements for additional information. On August 12, 2020, the Company sold the Company’s wholly-owned subsidiaries, the Bates Companies, which were originally acquired on October 1, 2018. The financial results of the Bates Companies prior to their respective sales are included in this report. See Note 2 to the Consolidated Financial Statements for additional information. QCBT is a commercial bank that serves the Iowa and Illinois Quad Cities and adjacent communities. CRBT is a commercial bank that serves Cedar Rapids, Iowa, and adjacent communities including Cedar Falls and Waterloo, Iowa. CSB is a commercial bank that serves Des Moines, Iowa, and adjacent communities. GB is a commercial bank that serves Springfield and Joplin, Missouri and adjacent communities. QCBT, CRBT, and CSB are chartered and regulated under the laws of the state of Iowa. GB is chartered and regulated under the laws of the state of Missouri. All four subsidiary banks are insured and subject to regulation by the FDIC. All four subsidiary banks are members of and regulated by the Federal Reserve System. The remaining direct subsidiaries of the Company consist of a consolidated subsidiary formed during 2021 for the risk management of insurance and seven non-consolidated subsidiaries formed for the issuance of trust preferred securities. See Note 13 to the Consolidated Financial Statements for a listing of these subsidiaries and additional information. Significant accounting policies: Accounting estimates Principles of consolidation Presentation of cash flows Note 1. Nature of Business and Significant Accounting Policies (continued) Cash and due from banks Investment securities All debt securities are evaluated to determine whether declines in fair value below their amortized cost require an allowance. See further discussion in the Allowance section following. 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 4 to the Consolidated Financial Statements. The Company’s portfolio segments 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 Note 1. Nature of Business and Significant Accounting Policies (continued) 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 30 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. Note 1. Nature of Business and Significant Accounting Policies (continued) Direct finance leases receivable, held for investment : The Company leases machinery and equipment to customers under leases that qualify as direct financing leases for financial reporting and as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 25% of the cost of the related equipment), are 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 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. Note 1. Nature of Business and Significant Accounting Policies (continued) Allowance Allowance for Credit Losses on Loans and Leases The ACL on loans/leases 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 uncollectability of a loan/lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company’s methodologies for estimating the ACL 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 portfolio segment follows: For C&I loans, 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 and equipment. 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 seven years with average terms ranging from three 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. The Company is an active lender of LIHTC project loans which includes both the construction and permanent loan. CRE loans are subject to underwriting standards and processes similar Note 1. Nature of Business and Significant Accounting Policies (continued) 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, or in some situations, more conservative than those established by regulatory authorities. Multi-family loans are typically repaid from rental income. LIHTC permanent loans are included in multi-family loans and the maximum term is generally up to 20 years. 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, low-income housing project or major rehabilitation or expansion of existing commercial structures. Construction lending carries a higher degree of risk because of the difficulty of protecting the bank against various factors. The following components 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 take into consideration changes in current conditions that are not reflected in the quantitative analysis performed in determining its base credit loss rates. The Company utilizes the following qualitative factors: ● National and local economy ● Loan volume and trend ● Loan quality Note 1. Nature of Business and Significant Accounting Policies (continued) ● Loan policies and procedures ● Management and staff experience ● Concentrations ● Collateral ● Loan review system ● Regulatory environment and oversight The Company also provides for unique circumstances with qualitative adjustments as needed. The Company removed the separate qualitative allocation for the COVID-19 pandemic in the first quarter of 2022, which had been in place since the second quarter of 2020. The qualitative adjustments are based on the current conditions and applied as a percentage adjustment in addition to the calculated historical loss rates. The adjustment amount can be either positive or negative. 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. These forecasted adjustments are added to the qualitative adjustments and applied as a percentage adjustment in addition to the historical loss rates. 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, but not limited to, 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 uncollectability 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 with outstanding principal balances greater than $250,000 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. Note 1. Nature of Business and Significant Accounting Policies (continued) Low quality loans with principal balances equal to or less than $250,000 are placed into a unique pool and have the overall effective loss rate for that period applied to this low quality pool. However, should an asset within the low quality pool no longer have the same risk characteristic of the unique pool, it will be removed and individually analyzed as described above. 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 peer, 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 Note 1. Nature of Business and Significant Accounting Policies (continued) 7. Substandard – loans which are inadequately protected by the current sound 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, OREO, 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 equal to or greater than $1,000,000, the subsidiary banks with an asset size of $1.0 billion or less as of the most recent fiscal year-end require a term loan review within 15 months of the most recent credit review. For the subsidiary banks with an asset size of over $1.0 billion as of the most recent fiscal year-end, a term loan review is required within 15 months of the most recent credit review for term C&I and CRE loans of $2.0 million or more. A credit review encompasses any new debt issuances or renewed debt facilities that are part of the borrower’s credit relationship. The term loan/credit 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, 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. Note 1. Nature of Business and Significant Accounting Policies (continued) 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 l |
Note 2 - Mergers_Acquisitions_S
Note 2 - Mergers/Acquisitions/Sales | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Mergers/Acquisitions/Sales | N ote 2. Mergers/Acquisitions /Sales GFED Acquisition On April 1, 2022, the Company acquired GFED and on April 2, 2022 merged GFED’s bank subsidiary into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. Stockholders of GFED received for each share of GFED common stock owned, at the election of each stockholder, subject to proration and adjustment, (1) $30.50 in cash, (2) 0.58775 shares of the Company’s common stock, or (3) mixed consideration of $6.10 in cash and 0.4702 shares of the Company’s common stock. On March 31, 2022, the last trading date before the closing date, the Company’s common stock closed at $56.59, resulting in stock consideration valued at $117.2 million and total cash consideration paid by the Company of $26.9 million. The Company funded the cash portion of the purchase price through operating cash. The acquisition of GFED supports the strategic goals of the Company. It allows for increased product and service capabilities of the combined bank and the Company anticipates it will result in strong growth in Springfield, MO and its surrounding communities. The Company accounted for the business combination under the acquisition method of accounting in accordance with ASC 805. The Company recognized the full fair value of the assets acquired and liabilities assumed at the acquisition date, net of applicable income tax effects. The Company considers all purchase accounting adjustments as provisional and fair values are subject to refinement for up to one year after the closing date due to timing of third party reports and management’s reviews of reports. The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purposes. Note 2. Mergers/Acquisitions/Sales (continued) The fair values of the assets acquired and liabilities assumed including the consideration paid and resulting goodwill is as follows: As of April 1, 2022 (dollars in thousands) ASSETS Cash and due from banks $ 171,844 Interest-bearing deposits at financial institutions 17,134 Securities 143,017 Loans/leases receivable, net 801,697 Bank-owned life insurance 32,100 Premises and equipment 16,257 Restricted investment securities 2,220 Other real estate owned 55 Intangibles 10,264 Other assets 23,685 Total assets acquired $ 1,218,273 LIABILITIES Deposits $ 1,076,573 FHLB advances 16,000 Subordinated notes 19,621 Junior subordinated debentures 10,310 Other liabilities 15,225 Total liabilities assumed $ 1,137,729 Net assets acquired $ 80,544 CONSIDERATION PAID: Cash $ 26,871 Common stock 117,214 Total consideration paid $ 144,085 Goodwill $ 63,541 The Company acquired $143.0 million of securities and subsequent to the closing, the Company sold $111.4 million of the acquired securities portfolio to improve the efficiency of the combined balance sheets. Financial Instruments – Credit Losses. The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s allowance for credit losses recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company recorded an accretable discount of $12.0 million on the non-PCD loans. The Company also recorded an ACL for non-PCD loans at the time of acquisition through provision expense of $11.0 million (pre-tax). Note 2. Mergers/Acquisitions/Sales (continued) The carrying amount of loans acquired and classified as PCD is as follows: Guaranty Bank April 1, 2022 (dollars in thousands) Principal balance of PCD loans at acquisition $ 38,711 Allowance for credit losses at acquisition (5,902) Non-credit discount at acquisition (1,366) Fair value of PCD loans at acquisition $ 31,443 Premises and equipment acquired with a fair value of $16.3 million includes sixteen branch locations. The fair value was determined with the assistance of a third party appraiser. The assets and related fair value adjustments will be recognized as an increase in depreciation expense over 39 years. The Company recorded a core deposit intangible totaling $10.3 million, which is the portion of the acquisition purchase price that represents the value assigned to the existing deposit base. The core deposit intangible has a finite life and is amortized using an accelerated method over the estimated useful life of the deposits (estimated to be ten years). The following table presents the assumed borrowings as of the acquisition date: Amount Rate Terms Maturity Date Collateral (dollars in thousands) FHLB advance 6,500 0.59% monthly interest payments; principal due at maturity 5/15/2023 commercial and residential real estate loans FHLB advance 6,500 0.82% monthly interest payments; principal due at maturity 5/15/2025 commercial and residential real estate loans FHLB advance 3,000 1.12% monthly interest payments; principal due at maturity 5/17/2027 commercial and residential real estate loans Subordinated notes 19,621 5.25% monthly interest payments; principal due at maturity 9/30/2030 unsecured Junior subordinated debentures 10,310 4.09% monthly interest payments; principal due at maturity 2/23/2036 unsecured Fair value of borrowings assumed $ 45,931 The Company prepaid the $16.0 million of FHLB advances in full shortly after closing. During 2022, the Company incurred $3.7 million of expenses related to the acquisition, comprised primarily of legal, accounting, investment banking costs and personnel costs, and $5.5 million of post-acquisition, compensation, transition and integration costs, comprised primarily of personnel costs, IT integration and data conversion costs related to the acquisition. GB results are included in the consolidated statements of income effective on the acquisition date. Unaudited pro forma combined operating results for the year ended December 31, 2022 and 2021, giving effect to the GFED acquisition as if it had occurred as of January 1, 2021, are as follows: For the Year Ended December 31, 2022 2021 Net interest income $ 242,161 $ 222,839 Noninterest income $ 82,966 $ 114,095 Net income $ 119,899 $ 99,606 Earnings per common share: Basic $ 6.97 $ 5.60 Diluted $ 6.89 $ 5.53 Note 2. Mergers/Acquisitions/Sales (continued) Sale of the Bates Companies On August 12, 2020, the Company sold all of the issued and outstanding capital stock of the Bates Companies. The aggregate consideration paid to the Company was a $500 thousand note receivable, less imputed interest of $52 thousand, plus cancellation of all future amounts otherwise to become payable to the purchaser by the Company under an earn-out agreement entered into between the same parties in 2018 with a non-discounted value of approximately $880 thousand at the sale date. Assets and liabilities of the Bates Companies sold are summarized as follows as of the date of closing: As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,259 Total assets sold $ 2,627 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,681 Cash consideration $ 195 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 158 Disposition costs in 2020 related to the sale totaled $227 thousand and were comprised primarily of legal, accounting and personnel costs. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Investment Securities | Note 3. Investment Securities The amortized cost and fair value of investment securities as of December 31, 2022 and 2021 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) December 31, 2022: Securities HTM: Municipal securities $ 586,272 $ 5,292 $ (56,978) $ 534,586 Other securities 1,050 — — 1,050 $ 587,322 $ 5,292 $ (56,978) $ 535,636 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 19,745 $ 19 $ (2,783) $ 16,981 Residential mortgage-backed and related securities 73,438 — (7,223) 66,215 Municipal securities 239,812 66 (46,700) 193,178 Asset-backed securities 18,885 48 (205) 18,728 Other securities 48,631 27 (2,800) 45,858 $ 400,511 $ 160 $ (59,711) $ 340,960 * HTM securities shown on the balance sheet of $587.1 million represent amortized cost of $587.3 million, net of allowance for credit losses of $180 thousand as of December 31, 2022. Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) December 31, 2021: Securities HTM: Municipal securities $ 471,533 $ 49,715 $ — $ 521,248 Other securities 1,050 — (1) 1,049 $ 472,583 $ 49,715 $ (1) $ 522,297 Securities AFS: U.S. govt. sponsored agency securities $ 23,370 $ 254 $ (296) $ 23,328 Residential mortgage-backed and related securities 92,431 2,672 (780) 94,323 Municipal securities 163,253 5,228 (215) 168,266 Asset-backed securities 26,372 752 — 27,124 Other securities 24,568 251 (30) 24,789 $ 329,994 $ 9,157 $ (1,321) $ 337,830 * HTM securities shown on the balance sheet of $472.4 million represent amortized cost of $472.6 million, net of allowance for credit losses of $198 thousand as of December 31, 2021. The Company’s HTM municipal securities consist largely of private issues of municipal debt. The municipalities are located primarily within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. Note 3. Investment Securities (continued) 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 commercial 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 December 31, 2022 and 2021, 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) December 31, 2022: Securities HTM: Municipal securities $ 347,651 $ (56,978) $ — $ — $ 347,651 $ (56,978) $ 347,651 $ (56,978) $ — $ — $ 347,651 $ (56,978) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 5,138 $ (326) $ 10,591 $ (2,457) $ 15,729 $ (2,783) Residential mortgage-backed and related securities 48,469 (3,327) 17,690 (3,896) 66,159 (7,223) Municipal securities 178,172 (42,661) 9,809 (4,039) 187,981 (46,700) Asset-backed securities 13,684 (205) — — 13,684 (205) Other securities 35,206 (2,404) 4,122 (396) 39,328 (2,800) $ 280,669 $ (48,923) $ 42,212 $ (10,788) $ 322,881 $ (59,711) 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, 2021: Securities HTM: Other securities $ 1,049 $ (1) $ — $ — $ 1,049 $ (1) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 9,802 $ (156) $ 3,035 $ (140) $ 12,837 $ (296) Residential mortgage-backed and related securities 5,363 (67) 19,406 (713) 24,769 (780) Municipal securities 13,287 (211) 1,001 (4) 14,288 (215) Other securities 4,528 (30) — — 4,528 (30) $ 32,980 $ (464) $ 23,442 $ (857) $ 56,422 $ (1,321) At December 31, 2022, the investment portfolio included 695 securities. Of this number, 607 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 11.81% of the total aggregate amortized cost. Of these 607 securities, 39 securities had an unrealized loss for 12 months or more. Note 3. Investment Securities (continued) 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 held to maturity securities by major security type for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 Year Ended December 31, 2021 Municipal Other Municipal Other securities securities Total securities securities Total (dollars in thousands) Allowance for credit losses: Beginning balance $ 198 $ — $ 198 $ — $ — $ — Impact of adopting ASU 2016-13 — — — 182 1 183 Provision for credit loss expense (18) — (18) 16 (1) 15 Balance, ending $ 180 $ — $ 180 $ 198 $ — $ 198 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 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies” included in this Form 10-K, for a discussion of the impact of the adoption of ASU 2016-13. All sales of securities for the years ended December 31, 2022, 2021 and 2020, respectively, were from securities identified as AFS. Information on proceeds received, as well as the gains and losses from the sale of those securities are as follows: 2022 2021 2020 (dollars in thousands) Proceeds from sales of securities $ 111,375 $ 23,874 $ 38,562 Gross gains from sales of securities — — 2,553 Gross losses from sales of securities — (88) (69) Subsequent to the closing of the GFED acquisition, the Company sold $111.4 million of the acquired securities portfolio to improve the efficiency of the combined balance sheets. These were the only securities sales for the year ended December 31, 2022. The amortized cost and fair value of securities as of December 31, 2022, 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 mortgages underlying the securities may be called or 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 $ 2,902 $ 2,895 Due after one year through five years 18,998 19,359 Due after five years 565,422 513,382 $ 587,322 $ 535,636 Securities AFS: Due in one year or less $ 4,522 $ 4,510 Due after one year through five years 4,159 4,135 Due after five years 299,507 247,372 308,188 256,017 Residential mortgage-backed and related securities 73,438 66,215 Asset-backed securities 18,885 18,728 $ 400,511 $ 340,960 Note 3. Investment Securities (continued) Portions of the U.S. government sponsored agency securities and municipal 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, summarized as follows: Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 330,576 $ 296,851 Securities AFS: Municipal securities 235,334 188,707 Other securities 47,681 44,923 $ 283,015 $ 233,630 As of December 31, 2022 and 2021, investment securities with a carrying value of $47.0 million and $246.5 million, respectively, were pledged on public deposits, FHLB advances, derivative liabilities, and in connection with a Goldman Sachs cash management program. As of December 31, 2022, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 118 issuers with fair values totaling $110.6 million and revenue bonds issued by 181 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $617.2 million. The Company held investments in general obligation bonds in 22 states, including seven states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 29 states, including 12 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2021, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 113 issuers with fair values totaling $114.5 million and revenue bonds issued by 165 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $575.0 million. The Company held investments in general obligation bonds in 20 states, including seven states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 25 states, including 13 states in which the aggregate fair value exceeded $5.0 million. Both general obligation and revenue bonds are diversified across many issuers. As of December 31, 2022 and 2021, the Company held revenue bonds of two issuers, located in Ohio, the aggregate book or market value of which exceeded 5% of the Company’s stockholders’ equity. The issuers’ financial condition is strong and the source of repayment is diversified. The Company monitors the investment 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 risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services (water, sewer, education, medical facilities). The Company’s municipal securities are owned by each of 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 December 31, 2022, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter’s total risk-based capital. As of December 31, 2022, the Company’s standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credits 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 4- Loans_Leases Receivable
Note 4- Loans/Leases Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Loans/Leases Receivable | Note 4. Loans/Leases Receivable The composition of the loan/lease portfolio as of December 31, 2022 and 2021 is presented as follows: December 31, 2022 December 31, 2021 (dollars in thousands) C&I: C&I - revolving $ 296,869 $ 248,483 C&I - other * 1,451,693 1,346,602 1,748,562 1,595,085 CRE - owner occupied 629,367 421,701 CRE - non-owner occupied 963,239 646,500 Construction and land development 1,192,061 918,571 Multi-family 963,803 600,412 Direct financing leases** 31,889 45,191 1-4 family real estate*** 499,529 377,361 Consumer 110,421 75,311 6,138,871 4,680,132 Allowance for credit losses (87,706) (78,721) $ 6,051,165 $ 4,601,411 ** Direct financing leases: Net minimum lease payments to be received $ 34,754 $ 49,362 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (3,030) (4,336) 31,889 45,191 Plus deferred lease origination costs, net of fees 226 568 32,115 45,759 Less allowance for credit losses (970) (1,546) $ 31,145 $ 44,213 * Includes equipment financing agreements outstanding at m2, totaling $278.0 million and $225.1 million as of December 31, 2022 and 2021, respectively and PPP loans totaling $68.3 thousand and $28.2 million as of December 31, 2022 and December 31, 2021, 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 and 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 $1.5 million and $3.8 million as of December 31, 2022 and 2021, respectively. Note 4. Loans/Leases Receivable (continued) Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $24.3 million and $15.3 million at December 31, 2022 and December 31, 2021, respectively, and was included in other assets on the consolidated balance sheets. Changes in accretable discounts on acquired loans for the years ended December 31, 2022, 2021 and 2020, respectively, are presented as follows: Year ended December 31, 2022 December 31, 2021 Total Total (dollars in thousands) Balance at the beginning of the period $ (1,533) $ (3,139) Discount added at acquisition (13,381) — Accretion recognized 8,826 1,606 Balance at the end of the period $ (6,088) $ (1,533) Year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable (530) — (530) Reclassification of nonaccretable discount to allowance — 353 353 Accretion recognized 587 2,886 3,473 Balance at the end of the period $ — $ (3,139) $ (3,139) Note 4. Loans/Leases Receivable (continued) The aging of the loan/lease portfolio by classes of loans/leases as of December 31, 2022 and 2021 is presented as follows: 2022 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 $ 296,869 $ — $ — $ — $ — $ 296,869 C&I - other 1,442,629 4,800 1,124 5 3,135 1,451,693 CRE - owner occupied 625,611 1,166 — — 2,590 629,367 CRE - non-owner occupied 962,444 421 — — 374 963,239 Construction and land development 1,191,929 — — — 132 1,192,061 Multi-family 963,803 — — — — 963,803 Direct financing leases 31,557 141 56 — 135 31,889 1-4 family real estate 495,936 1,030 517 — 2,046 499,529 Consumer 110,041 27 — — 353 110,421 $ 6,120,819 $ 7,585 $ 1,697 $ 5 $ 8,765 $ 6,138,871 As a percentage of total loan/lease portfolio 99.71 % 0.12 % 0.03 % 0.00 % 0.14 % 100.00 % 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 $ 248,483 $ — $ — $ — $ — $ 248,483 C&I - other 1,337,034 859 7,308 1 1,400 1,346,602 CRE - owner occupied 421,701 — — — — 421,701 CRE - non-owner occupied 646,500 — — — — 646,500 Construction and land development 918,498 — — — 73 918,571 Multi-family 600,412 — — — — 600,412 Direct financing leases 44,174 10 160 — 847 45,191 1-4 family real estate 374,912 1,325 716 — 408 377,361 Consumer 75,272 8 — — 31 75,311 $ 4,666,986 $ 2,202 $ 8,184 $ 1 $ 2,759 $ 4,680,132 As a percentage of total loan/lease portfolio 99.72 % 0.05 % 0.17 % 0.00 % 0.06 % 100.00 % Note 4. Loans/Leases Receivable (continued) NPLs by classes of loans/leases as of December 31, 2022 and 2021 is presented as follows: 2022 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 5 2,775 360 3,140 35.80 CRE - owner occupied — 1,738 852 2,590 29.53 CRE - non-owner occupied — 68 306 374 4.26 Construction and land development — 132 — 132 1.51 Multi-family — — — — - Direct financing leases — 80 55 135 1.54 1-4 family real estate — 1,641 405 2,046 23.33 Consumer — 353 — 353 4.03 $ 5 $ 6,787 $ 1,978 $ 8,770 100.00 % 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 1 1,130 270 1,401 50.77 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 73 — 73 2.64 Multi-family — — — — - Direct financing leases — 115 732 847 30.69 1-4 family real estate — 408 — 408 14.78 Consumer — 31 — 31 1.12 $ 1 $ 1,757 $ 1,002 $ 2,760 100.00 % The Company did not recognize any interest income on nonaccrual loans during the year ended December 31, 2022 and 2021. Note 4. Loans/Leases Receivable (continued) Changes in the ACL loans/leases by portfolio segment for the years ended December 31, 2022, 2021, and 2020 are presented as follows: Year Ended December 31, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family C&I Revolving Other* Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,907 $ 25,982 $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ 4,541 $ 930 $ 78,721 Initial ACL recorded for PCD loans — 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** — (50) 7,364 (1,023) 2,220 (2,981) 3,323 306 477 9,636 Charge-offs — — (6,417) — (193) (829) — (21) (65) (7,525) Recoveries — — 817 6 97 — 43 — 9 972 Balance, ending $ — $ 4,457 $ 27,753 $ 9,965 $ 11,749 $ 14,262 $ 13,186 $ 4,963 $ 1,371 $ 87,706 *Included within the C&I-other column are ACL on leases with a beginning balance of $1.5 million, provision of $269 thousand, charge-offs of $1.1 million and recoveries of $273 thousand. ACL on leases was ** Provision of the year ended December 31, 2022, included $11.0 million related to the acquired Guaranty Bank non-PCD loans. Year Ended December 31, 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 $ 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 — 925 (1,451) — (198) (1,088) 4,973 3,653 — — (603) (509) 5,702 Charge-offs — — (2,287) — — (1,876) — (150) — — (179) (46) (4,538) Recoveries — — 590 — 3 85 — — — — 281 324 1,283 Balance, ending $ — $ 3,907 $ 25,982 $ — $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ — $ — $ 4,541 $ 930 $ 78,721 *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 $703 thousand, charge-offs of $458 thousand and recoveries of $258 thousand. ACL on leases was Year Ended December 31, 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 charged to expense 22,899 28,671 2,148 1,755 231 55,704 Loans/leases charged off (4,199) (2,071) (1,993) — (120) (8,383) Recoveries on loans/leases previously charged off 649 182 145 29 49 1,054 Balance, ending $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Note 4. Loans/Leases Receivable (continued) The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: Year ended December 31, 2022 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 $ 3,386 $ 293,483 $ 296,869 $ 961 $ 3,496 $ 4,457 C&I - other* 9,358 1,474,224 1,483,582 1,445 26,308 27,753 12,744 1,767,707 1,780,451 2,406 29,804 32,210 CRE - owner occupied 24,880 604,487 629,367 2,853 7,112 9,965 CRE - non-owner occupied 21,588 941,651 963,239 869 10,880 11,749 Construction and land development 10,394 1,181,667 1,192,061 13 14,249 14,262 Multi-family 1,302 962,501 963,803 395 12,791 13,186 1-4 family real estate 3,177 496,352 499,529 317 4,646 4,963 Consumer 741 109,680 110,421 75 1,296 1,371 $ 74,826 $ 6,064,045 $ 6,138,871 $ 6,928 $ 80,778 $ 87,706 *Included within the C&I – other category are leases individually evaluated of $135 thousand with a related allowance for credit losses of $24 thousand and leases collectively evaluated of $31.8 million with a related allowance for credit losses of $946 thousand. As of December 31, 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 $ 2,638 $ 245,845 $ 248,483 $ 168 $ 3,739 $ 3,907 C&I - other* 13,456 1,378,337 1,391,793 743 25,239 25,982 16,094 1,624,182 1,640,276 911 28,978 29,889 CRE - owner occupied 3,841 417,860 421,701 1,264 7,237 8,501 CRE - non-owner occupied 25,006 621,494 646,500 — 8,549 8,549 Construction and land development 10,436 908,135 918,571 11 16,961 16,972 Multi-family — 600,412 600,412 — 9,339 9,339 1-4 family real estate 2,950 374,411 377,361 329 4,212 4,541 Consumer 350 74,961 75,311 39 891 930 $ 58,677 $ 4,621,455 $ 4,680,132 $ 2,554 $ 76,167 $ 78,721 *Included within the C&I – other category are leases individually evaluated of $847 thousand with a related allowance for credit losses of $35 thousand and leases collectively evaluated of $44.4 million with a related allowance for credit losses of $1.5 million. Note 4. Loans/Leases Receivable (continued) 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: Year ended December 31, 2022 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 3,281 $ — $ — $ — $ — $ 105 $ — $ 3,386 C&I - other* 1,589 210 — — 108 7,289 162 9,358 4,870 210 — — 108 7,394 162 12,744 CRE - owner occupied — 24,814 — 66 — — — 24,880 CRE - non-owner occupied — — 21,588 — — — — 21,588 Construction and land development — — 10,394 — — — — 10,394 Multi-family — — 1,302 — — — — 1,302 1-4 family real estate — — 33 3,144 — — — 3,177 Consumer — — 120 608 — — 13 741 $ 4,870 $ 25,024 $ 33,437 $ 3,818 $ 108 $ 7,394 $ 175 $ 74,826 *Included within the C&I – other category are leases individually evaluated of $135 thousand with primary collateral of equipment. As of December 31, 2021 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 2,518 $ — $ — $ — $ — $ 120 $ — $ 2,638 C&I - other* 683 — — 2,471 134 9,877 291 13,456 3,201 — — 2,471 134 9,997 291 16,094 CRE - owner occupied — — — 3,841 — — — 3,841 CRE - non-owner occupied — — 25,006 — — — — 25,006 Construction and land development — — 10,362 74 — — — 10,436 Multi-family — — — — — — — — 1-4 family real estate — — 817 2,133 — — — 2,950 Consumer — — — 340 — 1 9 350 $ 3,201 $ — $ 36,185 $ 8,859 $ 134 $ 9,998 $ 300 $ 58,677 *Included within the C&I – other category are leases individually evaluated of $847 thousand with primary collateral of equipment. For certain C&I loans, all CRE loans, certain construction and land development loans, all multifamily loans, certain 1-4 family real estate loans and certain consumer 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 loans, certain 1-4 family real estate loans, and certain consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. Note 4. Loans/Leases Receivable (continued) The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2022: 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 275,888 $ 275,888 Special Mention (Rating 6) — — — — — — 17,595 17,595 Substandard (Rating 7) — — — — — — 3,386 3,386 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 296,869 $ 296,869 C&I - other Pass (Ratings 1 through 5) $ 496,445 $ 279,412 $ 127,803 $ 87,054 $ 59,675 $ 105,184 $ — $ 1,155,573 Special Mention (Rating 6) 9,542 679 901 723 — 308 — 12,153 Substandard (Rating 7) 187 125 661 4,535 310 106 — 5,924 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 506,174 $ 280,216 $ 129,365 $ 92,312 $ 59,985 $ 105,598 $ — $ 1,173,650 CRE - owner occupied Pass (Ratings 1 through 5) $ 146,211 $ 182,440 $ 142,596 $ 33,571 $ 27,088 $ 45,993 $ 13,460 $ 591,359 Special Mention (Rating 6) 6,190 — 6,379 484 — 1,346 269 14,668 Substandard (Rating 7) 3,750 171 16,336 1,396 1,197 490 — 23,340 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 156,151 $ 182,611 $ 165,311 $ 35,451 $ 28,285 $ 47,829 $ 13,729 $ 629,367 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 310,163 $ 221,953 $ 173,478 $ 89,337 $ 56,898 $ 40,923 $ 7,510 $ 900,262 Special Mention (Rating 6) 2,824 882 18,920 — 12,917 6,198 — 41,741 Substandard (Rating 7) 5,651 — 157 15,217 — — 211 21,236 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 318,638 $ 222,835 $ 192,555 $ 104,554 $ 69,815 $ 47,121 $ 7,721 $ 963,239 Construction and land development Pass (Ratings 1 through 5) $ 479,016 $ 330,434 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,141,782 Special Mention (Rating 6) 1,465 9,200 — — — — — 10,665 Substandard (Rating 7) 132 10,262 — — — — — 10,394 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 480,613 $ 349,896 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,162,841 Multi-family Pass (Ratings 1 through 5) $ 237,839 $ 254,056 $ 224,920 $ 134,378 $ 99,695 $ 7,875 $ 2,227 $ 960,990 Special Mention (Rating 6) — 44 — 1,467 — — — 1,511 Substandard (Rating 7) — — 1,302 — — — — 1,302 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 237,839 $ 254,100 $ 226,222 $ 135,845 $ 99,695 $ 7,875 $ 2,227 $ 963,803 1-4 family real estate Pass (Ratings 1 through 5) $ 61,953 $ 57,731 $ 33,737 $ 12,687 $ 5,813 $ 6,002 $ 5,855 $ 183,778 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 28 — — 5 — — — 33 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 61,981 $ 57,731 $ 33,737 $ 12,692 $ 5,813 $ 6,002 $ 5,855 $ 183,811 Consumer Pass (Ratings 1 through 5) $ 511 $ 801 $ 493 $ 122 $ 254 $ 621 $ 10,226 $ 13,028 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 282 — 12 — 112 — — 406 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 793 $ 801 $ 505 $ 122 $ 366 $ 621 $ 10,226 $ 13,434 Total $ 1,762,189 $ 1,348,190 $ 988,473 $ 412,583 $ 294,259 $ 215,046 $ 366,274 $ 5,387,014 Note 4. Loans/Leases Receivable (continued) 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 170,180 $ 69,694 $ 25,540 $ 8,066 $ 1,804 $ 79 $ — $ 275,363 Nonperforming 1,110 1,320 155 95 — — — 2,680 Total C&I - other $ 171,290 $ 71,014 $ 25,695 $ 8,161 $ 1,804 $ 79 $ — $ 278,043 Construction and land development Performing $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 Nonperforming — — — — — — — — Total Construction and land development $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 Direct financing leases Performing $ 14,578 $ 5,172 $ 5,700 $ 4,398 $ 1,536 $ 370 $ — $ 31,754 Nonperforming — 32 88 7 8 — — 135 Total Direct financing leases $ 14,578 $ 5,204 $ 5,788 $ 4,405 $ 1,544 $ 370 $ — $ 31,889 1-4 family real estate Performing $ 69,094 $ 92,762 $ 75,153 $ 17,089 $ 11,381 $ 48,136 $ 90 $ 313,705 Nonperforming 267 524 487 279 8 448 — 2,013 Total 1-4 family real estate $ 69,361 $ 93,286 $ 75,640 $ 17,368 $ 11,389 $ 48,584 $ 90 $ 315,718 Consumer Performing $ 14,685 $ 3,844 $ 3,717 $ 1,123 $ 1,140 $ 1,325 $ 70,974 $ 96,808 Nonperforming 7 — — — 3 59 110 179 Total Consumer $ 14,692 $ 3,844 $ 3,717 $ 1,123 $ 1,143 $ 1,384 $ 71,084 $ 96,987 Total $ 298,706 $ 173,708 $ 110,850 $ 31,060 $ 15,942 $ 50,417 $ 71,174 $ 751,857 *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. Note 4. Loans/Leases Receivable (continued) 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) $ — $ — $ — $ — $ — $ — $ 245,212 $ 245,212 Special Mention (Rating 6) — — — — — — 633 633 Substandard (Rating 7) — — — — — — 2,638 2,638 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 248,483 $ 248,483 C&I - other Pass (Ratings 1 through 5) $ 391,532 $ 362,256 $ 133,678 $ 82,177 $ 83,419 $ 53,310 $ — $ 1,106,372 Special Mention (Rating 6) 3,580 373 349 — 336 2 — 4,640 Substandard (Rating 7) 506 2,366 7,138 396 55 46 — 10,507 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 395,618 $ 364,995 $ 141,165 $ 82,573 $ 83,810 $ 53,358 $ — $ 1,121,519 CRE - owner occupied Pass (Ratings 1 through 5) $ 118,014 $ 143,045 $ 47,660 $ 30,523 $ 17,038 $ 46,185 $ 11,477 $ 413,942 Special Mention (Rating 6) 637 — — 233 1,846 1,202 — 3,918 Substandard (Rating 7) — — 2,080 1,239 522 — — 3,841 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 118,651 $ 143,045 $ 49,740 $ 31,995 $ 19,406 $ 47,387 $ 11,477 $ 421,701 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 176,813 $ 145,712 $ 88,697 $ 63,849 $ 55,752 $ 28,808 $ 8,592 $ 568,223 Special Mention (Rating 6) 7,295 20,881 1,802 12,230 5,494 5,580 — 53,282 Substandard (Rating 7) 1,105 6,297 15,563 1,087 943 — — 24,995 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 185,213 $ 172,890 $ 106,062 $ 77,166 $ 62,189 $ 34,388 $ 8,592 $ 646,500 Construction and land development Pass (Ratings 1 through 5) $ 394,045 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 892,425 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 10,362 — — — — — — 10,362 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 404,407 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 902,787 Multi-family Pass (Ratings 1 through 5) $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 1-4 family real estate Pass (Ratings 1 through 5) $ 47,097 $ 24,029 $ 16,188 $ 7,569 $ 5,845 $ 5,213 $ 3,079 $ 109,020 Special Mention (Rating 6) 37 — — — — — — 37 Substandard (Rating 7) — 178 — 437 201 — — 816 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 47,134 $ 24,207 $ 16,188 $ 8,006 $ 6,046 $ 5,213 $ 3,079 $ 109,873 Consumer Pass (Ratings 1 through 5) $ 1,558 $ 487 $ 108 $ 216 $ — $ 824 $ 2,031 $ 5,224 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — 137 — — — 137 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 1,558 $ 487 $ 108 $ 353 $ — $ 824 $ 2,031 $ 5,361 Total $ 1,418,701 $ 1,151,208 $ 514,237 $ 354,369 $ 180,072 $ 148,546 $ 289,503 $ 4,056,636 Note 4. Loans/Leases Receivable (continued) 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 $ 117,163 $ 54,261 $ 33,390 $ 14,274 $ 4,200 $ 455 $ — $ 223,743 Nonperforming 95 177 644 368 42 14 — 1,340 Total C&I - other $ 117,258 $ 54,438 $ 34,034 $ 14,642 $ 4,242 $ 469 $ — $ 225,083 Direct financing leases Performing $ 6,690 $ 12,130 $ 11,638 $ 9,235 $ 3,695 $ 956 $ — $ 44,344 Nonperforming — 732 — 52 18 45 — 847 Total Direct financing leases $ 6,690 $ 12,862 $ 11,638 $ 9,287 $ 3,713 $ 1,001 $ — $ 45,191 Construction and land development Performing $ 12,857 $ 2,080 $ — $ 494 $ — $ — $ 280 $ 15,711 Nonperforming — — — — 73 — — 73 Total Construction and land development $ 12,857 $ 2,080 $ — $ 494 $ 73 $ — $ 280 $ 15,784 1-4 family real estate Performing $ 104,005 $ 78,713 $ 19,001 $ 10,784 $ 10,533 $ 43,976 $ 68 $ 267,080 Nonperforming — — — 106 — 302 — 408 Total 1-4 family real estate $ 104,005 $ 78,713 $ 19,001 $ 10,890 $ 10,533 $ 44,278 $ 68 $ 267,488 Consumer Performing $ 4,891 |
Note 5 - Premises and Equipment
Note 5 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Premises and Equipment | Note 5. Premises and Equipment The following summarizes the components of premises and equipment as of December 31, 2022 and 2021: 2022 2021 (dollars in thousands) Land $ 17,804 $ 12,513 Buildings (useful lives 15 to 39 years ) 108,777 70,860 Furniture and equipment (useful lives 3 to 15 years ) 54,305 47,517 Premises and equipment 180,886 130,890 Less accumulated depreciation 62,938 52,360 Premises and equipment, net $ 117,948 $ 78,530 As a lessee, the Company has entered into operating leases for certain branch locations. Total lease expenses were $412 thousand and $636 thousand for the year ended December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, the Company’s ROU assets (included in other assets other liabilities At December 31, 2022, the contractual maturities of operating lease liabilities were as follows: Amount Year ending December 31: (dollars in thousands) 2023 571 2024 336 2025 262 2026 240 2027 230 Thereafter 2,635 $ 4,274 As a lessor, the Company leases certain types of commercial vehicles and industrial equipment to its customers. The Company recognized lease-related revenue, primarily interest income from direct financing leases of $2.3 million and $4.0 million for the years ended December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, the Company’s net investment in direct financing leases was $31.1 million and $44.2 million, respectively. As of December 31, 2022, the contractual maturities of sales-type and direct financing lease receivables were as follows: Amount Year ending December 31: (dollars in thousands) 2023 1,854 2024 8,910 2025 11,046 2026 4,723 2027 6,741 Thereafter 1,480 Total lease payments receivable $ 34,754 Unguaranteed residual values 165 Unearned lease/residual income (3,030) $ 31,889 Plus deferred origination costs, net of fees 226 $ 32,115 Less allowance (970) Total lease payments receivable $ 31,145 The |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangibles | Note 6. Goodwill and Intangibles The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 (dollars in thousands) Balance at the beginning of period $ 74,066 $ 74,066 $ 74,748 Acquisition of GFED 63,541 — — Sale of Bates Companies — — (182) Goodwill impairment - Bates Companies — — (500) Balance at the end of period $ 137,607 $ 74,066 $ 74,066 The following table presents the goodwill by reportable segment: December 31, 2022 December 31, 2021 December 31, 2020 (dollars in thousands) Commercial banking: QCBT $ 3,223 $ 3,223 $ 3,223 CRBT 14,980 14,980 14,980 CSB 9,888 9,888 9,888 GB 109,516 45,975 45,975 $ 137,607 $ 74,066 $ 74,066 At November 30, 2022 and 2021 the Company’s management performed an annual internal assessment of goodwill at the reporting unit level and determined no impairment existed. During the first quarter of 2020, the Company incurred goodwill impairment expense of $500 thousand related to the Bates Companies reporting unit. This was the result of the announcement of a sale of the Bates Companies, as discussed in Note 2 to the Consolidated Financial Statements. The following table presents the changes in core deposit intangibles (included in Intangibles on the consolidated balance sheets) during the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 (dollars in thousands) Balance at the beginning of the period $ 9,349 $ 11,381 $ 13,466 Acquisition of GFED 10,264 — — Amortization expense (2,854) (2,032) (2,085) Balance at the end of the period $ 16,759 $ 9,349 $ 11,381 Gross carrying amount $ 29,519 $ 19,255 $ 19,255 Accumulated amortization (12,760) (9,906) (7,874) Net book value $ 16,759 $ 9,349 $ 11,381 Note 6. Goodwill and Intangibles (continued) The following table presents the core deposit intangibles by reportable segment: December 31, 2022 December 31, 2021 December 31, 2020 (dollars in thousands) Commercial Banking: CRBT $ 1,225 $ 1,702 $ 2,189 CSB 2,027 2,653 3,305 GB 13,507 4,994 5,887 $ 16,759 $ 9,349 $ 11,381 The following table presents the estimated amortization of the core deposit intangibles: Amount Years ending December 31, (dollars in thousands) 2023 $ 2,938 2024 2,761 2025 2,645 2026 2,360 2027 1,874 Thereafter 4,181 $ 16,759 The following table presents the changes in customer list intangible (included in Intangibles on the Consolidated Balance Sheets) during the years ended December 31, 2020. There was no activity during the year ended December 31, 2022 or 2021. 2020 Balance at the beginning of period $ 1,504 Sale of Bates Companies (1,440) Amortization (64) Balance at the end of period $ — The customer list intangible relates to the Parent Company Only (“All Other”) reportable segment. |
Note 7 - Derivatives and Hedgin
Note 7 - Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
DERIVATIVES AND HEDGING ACTIVITIES | Note 7. Derivatives and Hedging Activities Derivatives are summarized as follows as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (dollars in thousands) Assets: Interest rate caps - hedged $ 8,327 $ 927 Interest rate caps 2,213 238 Interest rate swaps - hedged 477 — Interest rate swaps 166,614 221,055 $ 177,631 $ 222,220 Liabilities: Interest rate collars - hedged $ (263) $ — Interest rate swaps - hedged (33,824) (4,080) Interest rate swaps (166,614) (221,055) $ (200,701) $ (225,135) Note 7. Derivatives and Hedging Activities (continued) The Company uses interest rate swap, cap and collar 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 December 31, 2022 December 31, 2021 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ (50) $ 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 % - 11 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 % - 5 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 714 60 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 1,566 125 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 783 62 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 1,264 161 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 2,700 332 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 1,350 166 $ 300,000 $ 8,327 $ 927 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 December 31, 2022 December 31, 2021 (dollars in thousands) 1/1/2020 1/3/2023 Derivatives - Assets $ 25,000 1.90 % $ 3 $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 822 62 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 1,388 173 $ 75,000 $ 2,213 $ 238 The Company uses interest rate collars in an effort to manage future interest rate exposure on variable rate loans. The collar hedging strategy stabilizes interest rate fluctuations by setting both a floor and a cap. The collar is designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate collars are as follows: Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate December 31, 2022 December 31, 2021 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (263) $ N/A The Company 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 December 31, 2022 December 31, 2021 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 4.12 % $ (5,646) $ (17) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 4.12 % (8,066) (25) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 4.12 % (6,464) (34) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 4.12 % (4,018) (13) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 4.12 % (1,144) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 4.12 % (3,812) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 4.12 % (2,669) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 4.12 % (3,812) N/A $ 300,000 $ (35,631) $ (89) Note 7. Derivatives and Hedging Activities (continued) The Company entered into interest rate swaps to hedge against the risk of rising rates on 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 December 31, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities $ 10,000 6.52 % 5.85 % $ 464 $ (1,035) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 6.52 % 5.85 % 372 (828) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 4.06 % 4.54 % 459 (996) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 6.92 % 5.17 % 140 (309) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 5.04 % 4.75 % 163 (360) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 5.04 % 4.75 % 209 (463) Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 6.14 % 4.09 % 477 N/A $ 49,310 $ 2,284 $ (3,991) * As part of the acquisition of GFED in 2022, the Company assumed one interest rate swap. In the first quarter of 2020, the Company entered into $40 million of interest rate swaps which were then terminated in the fourth quarter of 2020, resulting in a loss of $808 thousand. Changes in the fair values of derivative financial instruments accounted for as cash flow hedges to the extent they are included in the assessment of effectiveness, are recorded as a component of AOCI. The following is a summary of how AOCI was impacted during the reporting periods: Year Ended December 31, 2022 December 31, 2021 (dollars in thousands) Unrealized loss at beginning of period, net of tax $ (4,373) $ (7,632) Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization (1,001) 697 Amount of gain (loss) recognized in other comprehensive income, net of tax (14,847) 2,562 Unrealized loss at end of period, net of tax $ (20,221) $ (4,373) As discussed under “Swap Transactions” in Note 1 to the Consolidated Financial Statements, 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. Additionally, the Company receives an upfront, non-refundable fee from the counterparty, dependent upon the pricing that is recognized upon receipt from the 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: December 31, 2022 December 31, 2021 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,528,949 $ 166,614 $ 2,024,599 $ 221,055 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,528,949 $ 166,614 $ 2,024,599 $ 221,055 Note 7. Derivatives and Hedging Activities (continued) The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Interest and Interest Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 292,571 $ 61,451 $ 200,155 $ 21,922 $ 198,373 $ 31,423 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - (1,405) - 697 551 Interest rate swaps on variable rate loans (829) - 1,006 - - 185 Interest rate swaps on junior subordinated debentures - 462 - 1,114 - 832 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: December 31, 2022 December 31, 2021 (dollars in thousands) Cash $ 1,272 $ 21,100 U.S treasuries and govt. sponsored agency securities — 3,555 Municipal securities 8,227 139,166 Residential mortgage-backed and related securities 29,257 65,104 $ 38,756 $ 228,925 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 manages financial institution counterparty credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral arrangements 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 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. The majority of the Company’s swapped loan portfolio consists of loans on projects, with loan-to-values including the potential swap exposure well below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations . |
Note 8 - Deposits
Note 8 - Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Deposits | Note 8. Deposits The aggregate amount of certificates of deposit, each with a minimum denomination of $250,000 , was $371.7 million and $169.0 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the scheduled maturities of certificates of deposit were as follows: Amount (dollars in thousands) Year ending December 31: 2023 $ 710,100 2024 53,029 2025 11,274 2026 4,209 2027 5,571 Thereafter 401 $ 784,584 The Company has public entity interest-bearing demand deposits and certificates of deposit that are collateralized by investment securities with carrying values as follows: 2022 2021 (dollars in thousands) U.S. govt. sponsored agency securities $ 2,081 $ 3,080 Residential mortgage-backed and related securities 1,796 3,270 $ 3,877 $ 6,350 The Company had a $188.8 million PUD LOC with the FHLB of Des Moines for the purpose of providing additional collateral on public deposits as of December 31, 2022. As of December 31, 2021, the Company had a $129.5 million PUD LOC with the FHLB of Des Moines. There were no amounts outstanding under these letters of credit as of December 31, 2022 or 2021. |
Note 9 - Short-Term Borrowings
Note 9 - Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Short-Term Borrowings | Note 9. Short-Term Borrowings Short-term borrowings as of December 31, 2022 and 2021 are summarized as follows: 2022 2021 (dollars in thousands) Federal funds purchased $ 129,630 $ 3,800 Information concerning federal funds purchased is summarized as follows for the years ended December 31, 2022 and 2021: 2022 2021 (dollars in thousands) Average daily balance $ 8,637 $ 6,280 Average daily interest rate 1.76 % 0.08 % Maximum month-end balance $ 129,630 $ 11,320 Weighted average rate as of December 31 4.70 % 0.08 % |
Note 10 - FHLB Advances
Note 10 - FHLB Advances | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
FHLB Advances | Note 10. FHLB Advances The subsidiary banks are members of the FHLB of Des Moines. Maturity and interest rate information on advances from the FHLB as of December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Weighted Weighted Average Average Interest Rate Interest Rate Amount Due at Year-End Amount Due at Year-End (dollars in thousands) Maturity: Year ending December 31: 2022 $ — — % $ 15,000 0.31 % 2023 415,000 4.58 — — Total FHLB advances $ 415,000 4.58 % $ 15,000 0.31 % The Company prepaid $55.3 million of FHLB advances in 2020 with excess funds generated by strong deposit growth. The loss on the prepayment of the FHLB advances totaled $1.9 million for the year ended December 31, 2020. Advances are collateralized by loans of $1.7 billion and $1.3 billion as of December 31, 2022 and 2021, respectively, in aggregate. On pledged loans, the FHLB applies varying collateral maintenance levels from 125% to 333% based on the loan type. Advances are also collateralized by securities of $290 thousand and $334 thousand as of December 31, 2022 and 2021, respectively, in aggregate. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity. All advances outstanding as of December 31, 2022 and 2021 are short-term advances from the FHLB. These advances have maturities ranging from 1 day to 2 weeks. As of December 31, 2022 and 2021, the subsidiary banks held $25.6 million and $7.8 million, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet. |
Note 11 - Other Borrowings and
Note 11 - Other Borrowings and Unused Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Other Borrowings and Unused Lines of Credit | Note 11. Other Borrowings and Unused Lines of Credit In the second quarter of 2022, the Company renewed its revolving line of credit. At renewal, the available line amount increased from $25.0 million to $50.0 million for which there was no outstanding balance as of December 31, 2022. Interest on the revolving line of credit is calculated at the greater of: (a) the effective Prime Rate less 0.50% and (b) 3.00% per annum. The collateral on the revolving line of credit is 100% of the outstanding capital stock of the Company’s bank subsidiaries. Unused lines of credit of the subsidiary banks as of December 31, 2022 and 2021 are summarized as follows: 2022 2021 (dollars in thousands) Secured $ 30,990 $ 61,657 Unsecured 470,800 456,000 $ 501,790 $ 517,657 Included in the Secured category above, the Company pledges select C&I and CRE loans to the Federal Reserve Bank of Chicago for borrowing as part of the Borrower-In-Custody program. |
Note 12 - Subordinated Notes
Note 12 - Subordinated Notes | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Notes | |
Subordinated Notes | Note 12. Subordinated Notes Subordinated notes as of December 31, 2022 and 2021 are summarized as follows: Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of December 31, 2022 as of December 31, 2022 as of December 31, 2021 as of December 31, 2021 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ 50,000 5.125 % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 2/15/2029 Subordinated debenture dated 7/29/20* 20,000 5.250 % N/A N/A 9/30/2030 Subordinated debenture dated 8/18/22 55,000 5.950 % N/A N/A 9/1/2037 Subordinated debenture dated 8/18/22 45,000 5.500 % N/A N/A 9/1/2032 Debt issuance costs (2,338) (1,150) Total Subordinated Debentures $ 232,662 $ 113,850 *Assumed in acquisition of GFED On April 1, 2022, the Company acquired through the GFED acquisition $20.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on September 30, 2030. The subordinated notes, which qualify as Tier 2 capital for the Company, will bear interest at a fixed rate of 5.25% per year, from and including July 29, 2020 to, but excluding September 30, 2025 or earlier redemption. From and including September 30, 2025 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate, which is expected to be the then three-month Term SOFR, plus 519 basis points. Interest on the subordinated notes is payable semi-annually, commencing on September 30, 2020 through September 30, 2025. The subordinated notes may be redeemed at the Company’s option, in whole or in part, on any interest payment date on or after September 30, 2025. At a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. On August 18, 2022, the Company completed a private offering of $55.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on September 1, 2037. The subordinated notes, which qualify as Tier 2 capital for the Company, will bear interest at a fixed rate of 5.95% per year, from and including September 1, 2022 to, but excluding September 1, 2032 or earlier redemption. From and including September 1, 2032 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate, which is expected to be the then three-month Term SOFR, plus 300 basis points. Interest on the subordinated notes is payable quarterly, commencing on December 1, 2022. The notes are redeemable, in whole or in part, at any time upon the occurrence Note 12. Subordinated Notes (continued) of certain events. The subordinated notes may be redeemed at the Company’s option, in whole or in part, on any interest payment date on or after September 1, 2032, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. On August 18, 2022, the Company also completed a private offering of $45.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on September 1, 2032, of which $43.25 million have been exchanged for subordinated notes registered under the Securities Act of 1933. The subordinated notes, which qualify as Tier 2 capital for the Company, will bear interest at a fixed rate of 5.50% per year, from and including September 1, 2022 to, but excluding September 1, 2027 or earlier redemption. From and including September 1, 2027 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate, which is expected to be the then three-month Term SOFR, plus 279 basis points. Interest on the subordinated notes is payable semi-annually, commencing on March 1, 2023 through September 1, 2027 and quarterly thereafter. The notes are redeemable, in whole or in part, at any time upon the occurrence of certain events. The subordinated notes may be redeemed at the Company’s option, in whole or in part, on any interest payment date on or after September 1, 2027, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. |
Note 13 - Junior Subordinated D
Note 13 - Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2022 | |
Junior Subordinated Debentures | |
Junior Subordinated Debentures | Note 13. Junior Subordinated Debentures Junior subordinated debentures are summarized as of December 31, 2022 and 2021 as follows: 2022 2021 (dollars in thousands) Note Payable to QCR Holdings Capital Trust II $ 10,310 $ 10,310 Note Payable to QCR Holdings Capital Trust III 8,248 8,248 Note Payable to QCR Holdings Capital Trust V 10,310 10,310 Note Payable to Community National Trust II* 3,093 3,093 Note Payable to Community National Trust III* 3,609 3,609 Note Payable to Guaranty Bankshares Statutory Trust I** 4,640 4,640 Note Payable to Guaranty Statutory Trust II*** 10,310 N/A Market Value Discount per ASC 805**** (1,918) (2,055) $ 48,602 $ 38,155 * As part of the acquisition of Community National in 2013, the Company assumed two junior subordinated debentures with a total fair value of $4.2 million. ** As part of the acquisition of Guaranty Bank in 2017, the Company assumed one junior subordinated debenture with a fair value of $3.9 million. *** As part of the acquisition of GFED in 2022, the Company assumed one junior subordinated debenture with a fair value of $10.3 million. **** Market value discount includes discount on junior subordinated debt acquired as described in * and **. Note 13. Junior Subordinated Debentures (continued) A schedule of the Company’s non-consolidated subsidiaries formed for the issuance of trust preferred securities, including the amounts outstanding as of December 31, 2022 and 2021, is as follows: Amount Amount Outstanding Outstanding December 31, December 31, Interest Rate as of Interest Rate as of Name Date Issued 2022 2021 Interest Rate December 31, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II* February 2004 $ 10,310 $ 10,310 2.85% over 3-month LIBOR 6.52 % 3.07 % QCR Holdings Statutory Trust III February 2004 8,248 8,248 2.85% over 3-month LIBOR 6.52 % 3.07 % QCR Holdings Statutory Trust V February 2006 10,310 10,310 1.55% over 3-month LIBOR 5.63 % 1.67 % Community National Statutory Trust II September 2004 3,093 3,093 2.17% over 3-month LIBOR 6.92 % 2.38 % Community National Statutory Trust III March 2007 3,609 3,609 1.75% over 3-month LIBOR 6.52 % 1.95 % Guaranty Bankshares Statutory Trust I May 2005 4,640 4,640 1.75% over 3-month LIBOR 6.52 % 1.95 % Guaranty Statutory Trust II December 2005 10,310 N/A 1.45% over 3-month LIBOR 6.14 % N/A % $ 50,520 $ 40,210 Weighted Average Rate 6.29 % 2.43 % * Original amount issued for QCR Holdings Statutory Trust II was $12,372,000. Securities issued by all of the trusts listed above mature 30 years from the date of issuance, but all are currently callable at par at any time. Interest rate reset dates vary by Trust. The Company uses interest rate swaps for the purpose of hedging interest rate risk on the variable rate junior subordinated debt. See Note 7 to the Consolidated Financial Statements for the details of these instruments. |
Note 14 - Federal and State Inc
Note 14 - Federal and State Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
INCOME TAXES | Note 14. Federal and State Income Taxes Federal and state income tax expense was comprised of the following components for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 (dollars in thousands) Current $ 19,165 $ 7,290 $ 27,237 Deferred (4,682) 15,272 (14,530) $ 14,483 $ 22,562 $ 12,707 A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income was as follows for the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 2021 2020 % of % of % of Pretax Pretax Pretax Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 23,845 21.0 % $ 25,508 21.0 % $ 15,391 21.0 % Tax exempt income, net (10,689) (9.4) (7,537) (6.2) (5,943) (8.1) Bank-owned life insurance (432) (0.4) (386) (0.3) (308) (0.4) State income taxes, net of federal benefit, current year 4,482 3.9 5,089 4.2 3,622 4.9 Change in unrecognized tax benefits 498 0.4 578 0.5 546 0.7 Goodwill impairment — — — — 105 0.1 Provision adjustment from accounting method change (1,181) (1.0) — — — — Tax credits (1,362) (1.2) 34 — (456) (0.6) Acquisition costs 276 0.2 95 0.1 — — Excess tax benefit on stock options exercised and restricted stock awards vested (503) (0.4) (436) (0.4) (242) (0.3) Re-measurement of deferred tax asset to incorporate newly enacted tax rates — — — — 207 0.3 Other (451) (0.4) (383) (0.3) (215) (0.3) Federal and state income tax expense $ 14,483 12.7 % $ 22,562 18.6 % $ 12,707 17.3 % Changes in the unrecognized tax benefits included in other liabilities are as follows for the years ended December 31, 2022 and 2021: 2022 2021 (dollars in thousands) Balance, beginning $ 2,182 $ 1,893 Impact of tax positions taken during current year 758 1,326 Gross increase (decrease) related to tax positions of prior years 75 (646) Reduction as a result of a lapse of the applicable statute of limitations (335) (391) Balance, ending $ 2,680 $ 2,182 Included in the unrecognized tax benefits liability at December 31, 2022 are potential benefits of approximately $2.2 million that, if recognized, would affect the effective tax rate. Note 14. Federal and State Income Taxes (continued) The liability for unrecognized tax benefits includes accrued interest for tax positions, which either do not meet the more-likely-than-not recognition threshold or where the tax benefit is measured at an amount less than the tax benefit claimed or expected to be claimed on an income tax return. At December 31, 2022 and 2021, accrued interest on uncertain tax positions was approximately $333 thousand and $236 thousand, respectively. Estimated interest related to the underpayment of income taxes is classified as a component of “income tax expense” in the statements of income. The Company’s federal income tax returns are open and subject to examination from the 2019 tax return year and later. Various state franchise and income tax returns are generally open from the 2018 and later tax return years based on individual state statutes of limitations. The net deferred tax assets consisted of the following as of December 31, 2022 and 2021: 2022 2021 (dollars in thousands) Deferred tax assets: Historic tax credits $ 68 $ 68 Low income housing tax credits 226 — Net unrealized losses on securities available for sale and derivative instruments 21,319 — Compensation 13,413 11,912 Loan/lease losses 20,466 19,023 Net operating loss carryforwards, federal and state 1,262 1,354 Other — 17 56,754 32,374 Deferred tax liabilities: Net unrealized gains on securities available for sale and derivative instruments — 747 Premises and equipment 6,271 6,099 Equipment financing leases 2,484 6,462 Acquisition fair value adjustments 3,816 3,269 Investment accretion 27 27 Deferred loan origination fees, net 1,624 1,403 Other 2,094 677 16,316 18,684 Net deferred tax assets $ 40,438 $ 13,690 At December 31, 2022, the Company had $5.4 million of federal tax NOL carryforwards and $2.1 million of state tax NOL carryforwards. $1.9 million of the federal tax NOL carryforwards are related to the acquisition of Community National and CNB and these losses are set to expire in varying amounts between 2029 and 2033. The $2.1 million of the state tax NOL carryforwards are also related to the acquisition of Community National and CNB and are set to expire in varying amounts between 2023 and 2028. The additional $3.5 million of federal tax NOLs were acquired in 2022 with the Guaranty Bank acquisition. The newly acquired federal tax NOLs are expected to be utilized prior to their expiration dates. Note 14. Federal and State Income Taxes (continued) The change in deferred income taxes was reflected in the Consolidated Financial Statements as follows for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 (dollars in thousands) Provision for income taxes $ (4,682) $ 15,272 $ (14,530) Net deferred tax assets resulting from sale of other subsidiary — — 363 Statement of stockholders' equity- Other comprehensive income (loss) (22,066) (122) 837 $ (26,748) $ 15,150 $ (13,330) |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Employee Benefit Plans | Note 15. Employee Benefit Plans The Company has a profit sharing plan, which includes a provision designed to qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended, to allow for participants to defer a portion of their annual compensation under the profit sharing plan. Substantially all employees who are at least 18 years of age are eligible to participate in the plan. The Company matches 100% of an employee’s deferrals up to the first 3% of an employee’s annual compensation, and 50% of the next 3% of an employee’s deferred annual compensation, up to a maximum amount of 4.5% of an employee’s annual compensation. Additionally, at its discretion, the Company may make additional contributions to the plan, which are allocated to the accounts of participants in the plan based on relative compensation. There were no discretionary contributions for the years ended December 31, 2022, 2021 and 2020. Company matching contributions for the years ended December 31, 2022, 2021, and 2020 were as follows: 2022 2021 2020 (dollars in thousands) Matching contribution $ 3,071 $ 2,446 $ 2,520 The Company has entered into nonqualified supplemental executive retirement plans (SERPs) with certain executive officers. The SERPs allow certain executives to accumulate retirement benefits beyond those provided by the qualified retirement plan. Changes in the liability related to the SERPs, included in other liabilities, are as follows for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 (dollars in thousands) Balance, beginning $ 7,273 $ 6,189 $ 5,160 Expense accrued 1,286 1,532 1,193 Cash payments made (394) (448) (164) Balance, ending $ 8,165 $ 7,273 $ 6,189 Note 15. Employee Benefit Plans (continued) The Company has a deferred compensation plan under which it has entered into deferred compensation agreements with certain officers. Under the provisions of the agreements, the executive officers may defer compensation and the Company matches the deferral up to certain maximums. The Company’s matching contribution varies by officer as well. Certain officers have a 100% match and have a maximum of between $10 thousand and $25 thousand annually as set forth in each officer’s participation agreement. Interest on the deferred amounts is earned at prime rate subject to a minimum of 4% and a maximum of 12% , with such limits differing by officer. Other officers have a 50% match and have a maximum between 4% and 12% of compensation as set forth in each officers’ participation agreement. Interest on the deferred amounts is earned at prime rate plus one percentage point and has a minimum of 4% and shall not exceed 8% . Upon retirement, each executive officer and other officer will, subject to a potential six month deferral, receive the deferral balance in 180 equal monthly installments. As of December 31, 2022 and 2021, the liability related to the agreements totaled $ 38.2 million and $32.3 million, respectively. Changes in the deferred compensation agreements, included in other liabilities, are as follows for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 (dollars in thousands) Balance, beginning $ 32,353 $ 24,713 $ 19,474 Employee deferrals 3,615 4,900 3,959 Company match and interest 2,776 3,048 2,628 Cash payments made (489) (308) (1,348) Balance, ending $ 38,255 $ 32,353 $ 24,713 |
Note 16 - Stock-Based Compensat
Note 16 - Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Stock-Based Compensation | Note 16. Stock-Based Compensation The Company’s Board of Directors adopted in February 2010, and the stockholders approved in May 2010, the QCR Holdings, Inc. 2010 Equity Incentive Plan (“2010 Equity Incentive Plan”). The Company’s Board of Directors adopted in February 2013, and the stockholders approved in May 2013, the QCR Holdings, Inc. 2013 Equity Incentive Plan (“2013 Equity Incentive Plan”). The Company’s Board of Directors adopted in February 2016, and the stockholders approved in May 2016, the QCR Holdings, Inc. 2016 Equity Incentive Plan (“2016 Equity Incentive Plan”). Up to 350,000, 350,000, and 400,000 shares of common stock, respectively, may be issued to employees and directors of the Company and its subsidiaries pursuant to equity incentive awards granted under these plans. The 2010 Equity Incentive Plan, the 2013 Equity Incentive Plan and the 2016 Equity Incentive Plan (collectively, the “Equity Plans”) are administered by the Compensation Committee of the Board of Directors (the “Committee”). As of December 31, 2022, there were 100,271 remaining shares of common stock available for the grant of future awards under the Equity Plans; however, such future awards may be granted only under the 2016 Equity Incentive Plan. The number and exercise price of options granted under the Equity Plans are determined by the Committee at the time the option is granted. In no event can the exercise price be less than the value of the common stock at the date of the grant for stock options. All options have a 10-year Note 16. Stock-Based Compensation (continued) Stock-based compensation expense was reflected in the Consolidated Financial Statements as follows for the years ended December 31, 2022, 2021, and 2020. 2022 2021 2020 (dollars in thousands) Stock options $ 246 $ 270 $ 297 Restricted stock awards 1,967 1,864 1,619 Stock purchase plan 225 218 234 $ 2,438 $ 2,352 $ 2,150 Stock options: A summary of the stock option plans as of December 31, 2022, 2021, and 2020 and changes during the years then ended is presented below: December 31, 2022 2021 2020 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning 367,998 $ 24.46 407,763 $ 22.24 426,913 $ 20.14 Granted 22,400 53.87 22,150 43.61 23,350 39.12 Exercised (41,695) 14.07 (60,317) 15.76 (41,650) 10.67 Forfeited (2,025) 26.72 (1,598) 38.50 (850) 19.94 Outstanding, ending 346,678 27.60 367,998 24.46 407,763 22.24 Exercisable, ending 295,077 318,266 354,899 Weighted average fair value per option granted $ 13.97 $ 10.85 $ 10.07 A further summary of options outstanding as of December 31, 2022 is presented below: Options Outstanding Weighted Options Exercisable Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life Price Exercisable Price $15.50 to $15.65 57,616 0.25 $ 15.64 57,616 $ 15.64 $17.10 to $18.00 108,890 1.57 17.32 108,890 17.32 $22.64 to $22.64 53,316 3.08 22.64 53,316 22.64 $36.00 to $41.95 36,773 6.67 38.30 23,060 38.06 $42.65 to $48.50 67,908 5.63 43.76 51,995 43.80 $53.87 to $56.26 22,175 9.17 53.89 200 53.87 346,678 295,077 Note 16. Stock-Based Compensation (continued) Restricted stock and unit awards: A summary of changes in the Company’s nonvested restricted stock, restricted stock unit and performance stock unit awards as of December 31, 2022, 2021 and 2020 is presented below: December 31, 2022 2021 2020 Outstanding, beginning 97,107 102,489 106,826 Granted* 35,525 38,360 34,559 Released (47,766) (43,691) (37,296) Forfeited (751) (51) (1,600) Outstanding, ending 84,115 97,107 102,489 Weighted average fair value per share granted $ 54.20 $ 45.18 $ 39.39 * At December 31, 2021, includes The total grant value of restricted stock, restricted stock unit and performance share unit awards that were released during the years ended December 31, 2022, 2021 and 2020 was $2.6 million, $1.9 million and $1.4 million, respectively. Employee stock purchase plan: In October 2002, the Company’s Board of Directors and its stockholders adopted the QCR Holdings, Inc. Employee Stock Purchase Plan (the “Prior Purchase Plan”) which was amended and restated on May 2, 2012 and terminated on July 1, 2022. On May 19, 2022, the Company’s stockholders approved the QCR Holdings, Inc. 2022 Stock Purchase Plan (the “2022 Purchase Plan”). The 2022 Purchase Plan has an effective date of July 1, 2022 and a share reserve equal to 350,000 shares plus the shares remaining under the Prior Purchase Plan immediately prior to its termination. As of January 1, 2023, there were 382,765 shares of common stock available for issuance under the Purchase Plan. For each six-month offering period, the Board of Directors will determine how many of the total number of available shares will be offered. The purchase price is the lesser of 85% or the fair market value at the date of the grant or the investment date. The investment date, as established by the Board of Directors, is the date common stock is purchased after the end of each calendar quarter during an offering period. The maximum dollar amount any one participant can elect to contribute in a year is $21,250. Additionally, the maximum percentage that any one participant can elect to contribute is 15% of his or her compensation for the years ended December 31, 2022, 2021 and 2020. Information for the stock purchase plan for the years ended December 31, 2022, 2021 and 2020 is presented below: 2022 2021 2020 Shares granted 28,421 28,396 38,738 Shares purchased 27,103 30,543 37,114 Weighted average fair value per share granted $ 7.88 $ 7.67 $ 6.03 |
Note 17 - Regulatory Capital Re
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Regulatory Capital Requirements and Restrictions on Dividends | Note 17. Regulatory Capital Requirements and Restrictions on Dividends 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 off-balance-sheet 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 December 31, 2022 and 2021, 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 December 31, 2022 and 2021 are also presented in the following table (dollars in thousands). As of December 31, 2022 and 2021, 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 ( dollars in thousands) As of December 31, 2022: Company: Total risk-based capital $ 1,055,177 14.28 % $ 591,132 > 8.00 % $ 775,861 > 10.50 % $ 738,915 > 10.00 % Tier 1 risk-based capital 734,977 9.95 443,349 > 6.00 628,078 > 8.50 591,132 > 8.00 Tier 1 leverage 734,977 9.61 305,959 > 4.00 305,959 > 4.00 382,449 > 5.00 Common equity Tier 1 686,375 9.29 332,512 > 4.50 517,241 > 7.00 480,295 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 275,337 13.07 % $ 168,588 > 8.00 % $ 221,272 > 10.50 % $ 210,735 > 10.00 % Tier 1 risk-based capital 248,978 11.81 126,441 > 6.00 179,125 > 8.50 168,588 > 8.00 Tier 1 leverage 248,978 11.01 90,419 > 4.00 90,419 > 4.00 133,023 > 5.00 Common equity Tier 1 248,978 11.81 94,831 > 4.50 147,514 > 7.00 136,978 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 308,153 14.84 % $ 166,168 > 8.00 % $ 218,096 > 10.50 % $ 207,711 > 10.00 % Tier 1 risk-based capital 282,258 13.59 124,626 > 6.00 176,554 > 8.50 166,168 > 8.00 Tier 1 leverage 282,258 13.17 85,707 > 4.00 85,707 > 4.00 107,134 > 5.00 Common equity Tier 1 282,258 13.59 93,470 > 4.50 145,397 > 7.00 135,012 > 6.50 Community State Bank: Total risk-based capital $ 142,974 12.04 % $ 94,981 > 8.00 % $ 124,662 > 10.50 % $ 118,726 > 10.00 % Tier 1 risk-based capital 128,130 10.79 71,236 > 6.00 100,917 > 8.50 94,981 > 8.00 Tier 1 leverage 128,130 10.09 50,799 > 4.00 50,799 > 4.00 63,499 > 5.00 Common equity Tier 1 128,130 10.79 53,427 > 4.50 83,108 > 7.00 77,172 > 6.50 Guaranty Bank: Total risk-based capital $ 243,106 12.24 % $ 158,903 > 8.00 % $ 208,560 > 10.50 % $ 198,629 > 10.00 % Tier 1 risk-based capital 218,647 11.01 119,177 > 6.00 168,834 > 8.50 158,903 > 8.00 Tier 1 leverage 218,647 10.90 80,229 > 4.00 80,229 > 4.00 100,286 > 5.00 Common equity Tier 1 218,647 11.01 89,383 > 4.50 139,040 > 7.00 129,109 > 6.50 Note 17. Regulatory Capital Requirements and Restrictions on Dividends (continued) 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 ( dollars in thousands) As of December 31, 2021: Company: Total risk-based capital $ 814,629 14.77 % $ 441,100 > 8.00 % $ 578,944 > 10.50 % $ 551,375 > 10.00 % Tier 1 risk-based capital 631,649 11.46 330,825 > 6.00 468,669 > 8.50 441,100 > 8.00 Tier 1 leverage 631,649 10.46 241,579 > 4.00 241,579 > 4.00 301,974 > 5.00 Common equity Tier 1 593,494 10.76 248,119 > 4.50 385,962 > 7.00 358,394 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 247,658 13.29 % $ 149,126 > 8.00 % $ 195,727 > 10.50 % $ 186,407 > 10.00 % Tier 1 risk-based capital 224,253 12.03 111,844 > 6.00 158,446 > 8.50 149,126 > 8.00 Tier 1 leverage 224,253 10.45 85,873 > 4.00 85,873 > 4.00 107,341 > 5.00 Common equity Tier 1 224,253 12.03 83,883 > 4.50 130,485 > 7.00 121,164 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 277,673 14.85 % $ 149,595 > 8.00 % $ 196,343 > 10.50 % $ 186,993 > 10.00 % Tier 1 risk-based capital 254,279 13.60 112,196 > 6.00 158,944 > 8.50 149,595 > 8.00 Tier 1 leverage 254,279 12.59 80,777 > 4.00 80,777 > 4.00 100,971 > 5.00 Common equity Tier 1 254,279 13.60 84,147 > 4.50 130,895 > 7.00 121,546 > 6.50 Community State Bank: Total risk-based capital $ 123,365 11.95 % $ 82,601 > 8.00 % $ 108,413 > 10.50 % $ 103,251 > 10.00 % Tier 1 risk-based capital 110,410 10.69 61,951 > 6.00 87,763 > 8.50 82,601 > 8.00 Tier 1 leverage 110,410 9.67 45,676 > 4.00 45,676 > 4.00 57,095 > 5.00 Common equity Tier 1 110,410 10.69 46,463 > 4.50 72,276 > 7.00 67,113 > 6.50 Guaranty Bank: Total risk-based capital $ 101,067 13.39 % $ 60,369 > 8.00 % $ 79,235 > 10.50 % $ 75,462 > 10.00 % Tier 1 risk-based capital 91,625 12.14 45,277 > 6.00 64,142 > 8.50 60,369 > 8.00 Tier 1 leverage 91,625 11.08 33,088 > 4.00 33,088 > 4.00 41,360 > 5.00 Common equity Tier 1 91,625 12.14 33,958 > 4.50 52,823 > 7.00 49,050 > 6.50 The Company’s ability to pay dividends to its stockholders may be affected by both general corporate law considerations and policies of the Federal Reserve applicable to bank holding companies. The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Notwithstanding the availability of funds for dividends, however, the Federal Reserve may prohibit the payment of any dividends by the subsidiary banks if the Federal Reserve determines such payment would constitute an unsafe or unsound practice. The Company also has certain contractual restrictions on its ability to pay dividends. The Company has issued junior subordinated debentures in four private placements and assumed four issues of junior subordinated debentures in connection with the acquisitions. Under the terms of the debentures, the Company may be prohibited, under certain circumstances, from paying dividends on shares of its common stock. These circumstances did not exist at December 31, 2022 or 2021. On February 13, 2020, the board of directors of the Company approved a share repurchase program under which the Company was authorized to repurchase, from time to time as the Company deemed appropriate, up to 800,000 shares of its outstanding common stock, or approximately 5% of the outstanding shares as of December 31, 2019. On May 19, 2022, the Board of Directors of the Company approved a share repurchase program under which the Company is authorized to repurchase, from time to time as the Company deems appropriate, up to an additional 1,500,000 shares of its outstanding common stock, or approximately 10% of the outstanding shares as of December 31, 2021. There were 970,000 and 293,153 shares of common stock purchased by the Company during the year ended December 31, 2022 and 2021, respectively. There were 935,915 shares of common stock remaining for repurchase as of December 31, 2022. |
Note 18 - Earnings Per Share
Note 18 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per Share | |
Earnings Per Share | Note 18. Earnings per Share The following information was used in the computation of basic and diluted EPS for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 (dollars in thousands, except per share data) Net income $ 99,066 $ 98,905 $ 60,582 Basic EPS $ 5.94 $ 6.30 $ 3.84 Diluted EPS $ 5.87 $ 6.20 $ 3.80 Weighted average common shares outstanding 16,681,844 15,708,744 15,771,650 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan* 208,163 235,964 180,987 Weighted average common and common equivalent shares outstanding 16,890,007 15,944,708 15,952,637 , . |
Note 19 - Commitments and Conti
Note 19 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies | Note 19. Commitments and Contingencies In the normal course of business, the subsidiary banks make various commitments and incur certain contingent liabilities that are not presented in the accompanying Consolidated Financial Statements. The commitments and contingent liabilities include various guarantees, commitments to extend credit, and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The subsidiary banks evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the subsidiary banks upon extension of credit, is based upon management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the subsidiary banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The subsidiary banks hold collateral, as described above, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the subsidiary banks would be required to fund the commitments. The maximum potential amount of future payments the subsidiary banks could be required to make is represented by the contractual amount. If the commitment is funded, the subsidiary banks would be entitled to seek recovery from the customer. At December 31, 2022 and 2021, no amounts had been recorded as liabilities for the subsidiary banks’ potential obligations under these guarantees. As of December 31, 2022 and 2021, commitments to extend credit aggregated $1.7 billion and $1.2 billion, respectively. As of December 31, 2022 and 2021, standby letters of credit aggregated $25.8 million and $21.7 million, respectively. Management does not expect that all of these commitments will be funded. Note 19. Commitments and Contingencies (continued) The Company has also executed contracts for the sale of mortgage loans in the secondary market in the amount of $1.5 million and $3.8 million as of December 31, 2022 and 2021, respectively. These amounts are included in loans held for sale at the respective balance sheet dates. Residential mortgage loans sold to investors in the secondary market are sold with varying recourse provisions. Essentially, all loan sales agreements require the repurchase of a mortgage loan by the seller in situations such as breach of representation, warranty, or covenant, untimely document delivery, false or misleading statements, failure to obtain certain certificates of insurance, unmarketability, etc. Certain loan sales agreements contain repurchase requirements based on payment-related defects that are defined in terms of the number of days/months since the purchase, the sequence number of the payment, and/or the number of days of payment delinquency. Based on the specific terms stated in the agreements of investors purchasing residential mortgage loans from the Company’s subsidiary banks, the Company had $14.5 million and $20.8 million of sold residential mortgage loans with recourse provisions still in effect at December 31, 2022 and 2021, respectively. The subsidiary banks did not repurchase any loans from secondary market investors under the terms of loans sales agreements during the years ended December 31, 2022, 2021, and 2020. In the opinion of management, the risk of recourse and the subsequent requirement of loan repurchase to the subsidiary banks is not significant, and accordingly no liabilities have been established related to such. Aside from cash on-hand and in-vault, the majority of the Company’s cash is maintained at upstream correspondent banks. The total amount of cash on deposit, certificates of deposit, and federal funds sold exceeded federal insured limits by approximately $67.7 million and $48.2 million as of December 31, 2022 and 2021, respectively. In the opinion of management, no material risk of loss exists due to the financial condition of the upstream correspondent banks. In an arrangement with Goldman Sachs, CRBT offers a cash management program for select customers. Based on a predetermined minimum balance, which must be maintained in the customer’s account, excess funds are automatically swept daily to an institutional money market fund administered by Goldman Sachs. At December 31, 2022 and 2021, the Company had $69.4 million and $107.0 million, respectively of customer funds invested in this cash management program. In the opinion of management, no material risk of loss exists due to the financial condition of Goldman Sachs. As of December 31, 2022 and 2021, there were $5.3 million and $31.5 million of investment securities pledged on the Goldman Sachs program, respectively, as a cover to the swap exposure. |
Note 20 - Parent Company Only F
Note 20 - Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Parent Company Only Financial Statements | Note 20. Parent Company Only Financial Statements The following is condensed financial information of QCR Holdings, Inc. (parent company only): Condensed Balance Sheets December 31, 2022 and 2021 2022 2021 (dollars in thousands) Assets Cash and due from banks $ 84,172 $ 41,531 Interest-bearing deposits at financial institutions — 5,750 Investment in bank subsidiaries 965,973 769,628 Investment in nonbank subsidiaries 7,196 5,341 Premises and equipment, net 9,639 8,632 Other assets 10,157 7,716 Total assets $ 1,077,137 $ 838,598 Liabilities and Stockholders' Equity Liabilities: Subordinated notes $ 232,662 $ 113,850 Junior subordinated debentures 48,602 38,155 Other liabilities 23,149 9,583 Total liabilities 304,413 161,588 Stockholders' Equity: Common stock 16,796 15,613 Additional paid-in capital 370,712 273,768 Retained earnings 450,114 386,077 Accumulated other comprehensive income (loss) (64,898) 1,552 Total stockholders' equity 772,724 677,010 Total liabilities and stockholders' equity $ 1,077,137 $ 838,598 Note 20. Parent Company Only Financial Statements (continued) Condensed Statements of Income Years Ended December 31, 2022, 2021, and 2020 2022 2021 2020 (dollars in thousands) Total interest income $ 26 $ 3 $ 29 Equity in net income of bank subsidiaries 128,941 117,408 79,624 Equity in net income (loss) of nonbank subsidiaries 1,294 456 (261) Other (53) 853 289 Total income 130,208 118,720 79,681 Interest expense 11,836 8,482 6,662 Salaries and employee benefits 15,551 12,446 11,825 Professional fees 1,789 1,983 2,558 Acquisition costs 3,715 624 — Post-acquisition compensation, transition and integration costs 5,526 — 145 Disposition costs — 13 312 Goodwill impairment — — 500 Other 3,331 2,784 2,505 Total expenses 41,748 26,332 24,507 Income before income tax benefit 88,460 92,388 55,174 Income tax benefit 10,606 6,517 5,408 Net income $ 99,066 $ 98,905 $ 60,582 Note 20. Parent Company Only Financial Statements (continued) Condensed Statements of Cash Flows Years Ended December 31, 2022, 2021, and 2020 2022 2021 2020 (dollars in thousands) Cash Flows from Operating Activities: Net income $ 99,066 $ 98,905 $ 60,582 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings of bank subsidiaries (128,941) (117,408) (79,624) (Earnings) losses of nonbank subsidiaries (1,294) (456) 261 Distributions from bank subsidiaries 36,000 — — Distributions from nonbank subsidiaries 40 30 40 Deferred income taxes (2,443) (1,093) 6,909 Accretion of acquisition fair value adjustments 137 321 378 Depreciation 477 486 454 Deferred compensation expense accrued 4,062 573 — Stock-based compensation expense 2,438 2,352 2,150 Loss on sale of subsidiary — — 158 Gain on sale of fixed assets — 155 — Goodwill impairment — — 500 Decrease (increase) in other assets 621 5 (7,380) Increase (decrease) in other liabilities 10,827 (14,702) (5,923) Net cash provided by (used in) operating activities 20,990 (30,832) (21,495) Cash Flows from Investing Activities: Net increase (decrease) in interest-bearing deposits at financial institutions 5,950 1,450 (1,599) Capital infusion, non-bank subsidiaries (300) (375) — Net cash received in dissolution of subsidiary — — 8,450 Net cash paid for acquisitions (26,039) — — Net cash received in sale of subsidiary — — 195 Purchase of premises and equipment (1,484) (31) (272) Net cash provided by (used in) investing activities (21,873) 1,044 6,774 Cash Flows from Financing Activities: Proceeds from subordinated notes 100,000 — 50,000 Payment of cash dividends (3,944) (3,793) (3,779) Proceeds from issuance of common stock, net 422 670 1,360 Repurchase and cancellation of shares (52,954) (14,168) (3,779) Net cash provided by (used in) financing activities 43,524 (17,291) 43,802 Net increase (decrease) in cash and due from banks 42,641 (47,079) 29,081 Cash and due from banks: Beginning 41,531 88,610 59,529 Ending $ 84,172 $ 41,531 $ 88,610 |
Note 21- Fair Value
Note 21- Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value | |
Fair Value | Note 21. Fair Value Accounting guidance on fair value measurements 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 measured at fair value on a recurring basis comprised the following at December 31, 2022 and 2021: 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) December 31, 2022: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,981 $ — $ 16,981 $ — Residential mortgage-backed and related securities 66,215 — 66,215 — Municipal securities 193,178 — 193,178 — Asset-backed securities 18,728 — 18,728 — Other securities 45,858 — 45,858 — Derivatives 177,631 — 177,631 — Total assets measured at fair value $ 518,591 $ — $ 518,591 $ — Derivatives $ 200,701 $ — $ 200,701 $ — Total liabilities measured at fair value $ 200,701 $ — $ 200,701 $ — December 31, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 23,328 $ — $ 23,328 $ — Residential mortgage-backed and related securities 94,323 — 94,323 — Municipal securities 168,266 — 168,266 — Asset-backed securities 27,124 — 27,124 — Other securities 24,789 — 24,789 — Derivatives 222,220 — 222,220 — Total assets measured at fair value $ 560,050 $ — $ 560,050 $ — Derivatives $ 225,135 $ — $ 225,135 $ — Total liabilities measured at fair value $ 225,135 $ — $ 225,135 $ — 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). Note 21. Fair Value (continued) Interest rate caps, swaps and collars are used for the purpose of hedging interest rate risk on various financial assets and liabilities. See Note 7 to the Consolidated Financial Statements for the details of these instruments. Interest rate swaps are also executed for select commercial customers. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (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 there is evidence of impairment). Assets measured at fair value on a non-recurring basis comprised the following at December 31, 2022 and 2021: 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) December 31, 2022: Loans/leases evaluated individually $ 30,765 $ — $ — $ 30,765 OREO 144 — — 144 $ 30,909 $ — $ — $ 30,909 December 31, 2021: Loans/leases evaluated individually $ 6,618 $ — $ — $ 6,618 Loans/leases evaluated individually are valued at the lower of cost or fair value and are classified as a 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 may be 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 a 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. Note 21. Fair Value (continued) 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 December 31, December 31, 2022 2021 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 30,765 $ 6,618 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 144 — Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % For 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 measured at fair value during the years ended December 31, 2022 or 2021. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company’s consolidated balance sheet, 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 December 31, 2022 As of December 31, 2021 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 59,723 $ 59,723 $ 37,490 $ 37,490 Federal funds sold Level 2 56,910 56,910 12,370 12,370 Interest-bearing deposits at financial institutions Level 2 67,360 67,360 75,292 75,292 Investment securities: HTM Level 2 587,142 535,636 472,385 522,297 AFS Level 2 340,960 340,960 337,830 337,830 Loans/leases receivable, net Level 3 28,486 30,765 6,128 6,618 Loans/leases receivable, net Level 2 6,022,679 5,896,443 4,595,283 4,478,899 Derivatives Level 2 177,631 177,631 222,220 222,220 Deposits: Nonmaturity deposits Level 2 5,199,633 5,199,633 4,501,424 4,501,424 Time deposits Level 2 784,584 766,294 421,348 419,453 Short-term borrowings Level 2 129,630 129,630 3,800 3,800 FHLB advances Level 2 415,000 415,000 15,000 15,000 Subordinated notes Level 2 232,662 250,613 113,850 116,203 Junior subordinated debentures Level 2 48,602 41,545 38,155 31,072 Derivatives Level 2 200,701 200,701 225,135 225,135 |
Note 22 - Business Segment Info
Note 22 - Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Business Segment Information | |
Business Segment Information | Note 22. 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 GB. Each of these operating segments offer similar products and services, but are 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 years ended December 31, 2022, 2021, and 2020: Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB* All other Eliminations Total (dollars in thousands) Year Ended December 31, 2022 Total revenue $ 103,621 $ 128,070 $ 54,129 $ 87,880 $ 131,922 $ (132,322) $ 373,300 Net interest income 71,604 65,392 40,781 63,734 (11,779) 1,388 231,120 Provision for loan/lease losses 1,073 (961) (1,335) 9,507 — — 8,284 Net income (loss) from continuing operations 33,850 53,576 17,225 24,289 100,303 (130,177) 99,066 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,225 2,027 13,507 — — 16,759 Total assets 2,312,013 2,185,500 1,297,812 2,146,474 1,086,351 (1,079,313) 7,948,837 Year Ended December 31, 2021 Total revenue $ 88,689 $ 129,080 $ 43,945 $ 38,342 $ 119,451 $ (118,930) $ 300,577 Net interest income 66,232 57,354 35,512 26,351 (8,479) 1,263 178,233 Provision for loan/lease losses 1,519 (697) 2,219 445 — — 3,486 Net income (loss) from continuing operations 34,616 55,411 12,802 14,579 99,331 (117,834) 98,905 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,702 2,653 4,994 — — 9,349 Total assets 2,142,344 2,030,279 1,168,606 882,885 845,120 (973,102) 6,096,132 Year Ended December 31, 2020 Total revenue $ 92,336 $ 125,416 $ 50,448 $ 42,036 $ 2,197 $ (262) $ 312,171 Net interest income 63,366 52,857 31,570 24,759 (6,633) 1,031 166,950 Provision for loan/lease losses 21,612 19,438 9,243 5,411 — — 55,704 Net income (loss) from continuing operations 21,557 33,890 11,379 12,797 (19,041) — 60,582 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 2,189 3,305 5,887 — — 11,381 Total assets 2,153,773 1,957,695 1,004,183 779,956 134,407 (324,971) 5,705,043 * On April 1, 2022, the Company acquired GFED and merged its subsidiary bank, Guaranty Bank, into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name. |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies | |
Basis of presentation | Basis of presentation: The acronyms and abbreviations identified below are used in the Notes to the Consolidated Financial Statements, as well as in the other sections of this Annual Report on Form 10-K (including appendices). It may be helpful to refer back to this page as you read this report. ACL: Allowance for credit losses Guaranty Bank: Guaranty Bank and Trust Company AFS: Available for sale HTM: Held to maturity Allowance: Allowance for credit losses Iowa Superintendent: Iowa Superintendent of Banking AOCI: Accumulated other comprehensive income (loss) LCR: Liquidity Coverage Ratio ASC: Accounting Standards Codification LIBOR: London Inter-Bank Offered Rate ASC 805: Business Combination Standard LIHTC: Low-income housing tax credit ASU: Accounting Standards Update m2: m2 Equipment Finance, LLC Bates Companies: Bates Financial Advisors, Inc., Bates MD&A: Management’s Discussion & Analysis Financial Services, Inc., Bates Securities, Inc. and Bates Missouri Division of Finance: Missouri Department of Financial Group, Inc. Commerce and Insurance BHCA: Bank Holding Company Act of 1956 NIM: Net interest margin BOLI: Bank-owned life insurance NOL: Net operating loss Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy Security Act CECL: Current Expected Credit Losses CFPB: Bureau of Consumer Financial Protection NPL: Nonperforming loan NSFR: Net Stable Funding Ratio OBS: Off-balance sheet OREO: Other real estate owned CNB: Community National Bank OTTI: Other-than-temporary impairment Community National: Community National Bancorporation COVID-19: Coronavirus Disease 2019 CRA: Community Reinvestment Act PCAOB: Public Company Accounting Oversight Board PCD: Purchased credit deteriorated loan PCI: Purchased credit impaired CRBT: Cedar Rapids Bank & Trust Company PPP: Paycheck Protection Program CRE: Commercial real estate Provision: Provision for credit losses CRE Guidance: Interagency Concentrations in Commercial PUD LOC: Public Unit Deposit Letter of Credit Real Estate Lending, Sound Risk Management Practices QCBT: Quad City Bank & Trust Company guidance ROAA: Return on Average Assets CSB: Community State Bank ROACE: Return on Average Common Equity C&I: Commercial and industrial ROAE: Return on Average Equity Dodd-Frank Act: Dodd-Frank Wall Street Reform and ROU: Right of use Consumer Protection Act SBA: U.S. Small Business Administration DGCL: Delaware General Corporation Law SEC: Securities and Exchange Commission DIF: Deposit Insurance Fund SERPs: Supplemental Executive Retirement Plans EBA: Excess Balance Account SFCB: Springfield First Community Bank EPS: Earnings per share SFG: Specialty Finance Group ESG: Environmental, Social and Governance SOFR: Secured Overnight Financing Rate Exchange Act: Securities Exchange Act of 1934, as amended Springfield Bancshares: Springfield Bancshares, Inc. FASB: Financial Accounting Standards Board TA: Tangible assets FDIC: Federal Deposit Insurance Corporation TCE: Tangible common equity Federal Reserve: Board of Governors of the Federal Reserve TDRs: Troubled debt restructurings System TEY: Tax equivalent yield FHLB: Federal Home Loan Bank The Company: QCR Holdings, Inc. FRB: Federal Reserve Bank of Chicago TRBC: Total risk-based capital FTEs: Full-time equivalents Treasury: U.S. Department of the Treasury GAAP: Generally Accepted Accounting Principles USA Patriot Act: Uniting and Strengthening America by GB: Guaranty Bank Providing Appropriate Tools Required to Intercept GFED: Guaranty Federal Bancshares and Obstruct Terrorism Act of 2001 Goldman Sachs: Goldman Sachs and Company USDA: U.S. Department of Agriculture Guaranty: Guaranty Bankshares, Ltd. |
Nature of business | Nature of business: QCR Holdings, Inc. is a bank holding company that has elected to operate as a financial holding company under the BHCA. The Company provides bank and bank-related services through its banking subsidiaries, QCBT, CRBT, CSB and GB. The Company also engages in direct financing lease and equipment financing contracts through its wholly-owned equity investment by QCBT in m2, headquartered in Brookfield, Wisconsin. The Company also engages in wealth management services through its banking subsidiaries. On April 1, 2022, the Company completed its acquisition of GFED and on April 2, 2022 merged GB into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. See Note 2 to the Consolidated Financial Statements for additional information. On August 12, 2020, the Company sold the Company’s wholly-owned subsidiaries, the Bates Companies, which were originally acquired on October 1, 2018. The financial results of the Bates Companies prior to their respective sales are included in this report. See Note 2 to the Consolidated Financial Statements for additional information. QCBT is a commercial bank that serves the Iowa and Illinois Quad Cities and adjacent communities. CRBT is a commercial bank that serves Cedar Rapids, Iowa, and adjacent communities including Cedar Falls and Waterloo, Iowa. CSB is a commercial bank that serves Des Moines, Iowa, and adjacent communities. GB is a commercial bank that serves Springfield and Joplin, Missouri and adjacent communities. QCBT, CRBT, and CSB are chartered and regulated under the laws of the state of Iowa. GB is chartered and regulated under the laws of the state of Missouri. All four subsidiary banks are insured and subject to regulation by the FDIC. All four subsidiary banks are members of and regulated by the Federal Reserve System. The remaining direct subsidiaries of the Company consist of a consolidated subsidiary formed during 2021 for the risk management of insurance and seven non-consolidated subsidiaries formed for the issuance of trust preferred securities. See Note 13 to the Consolidated Financial Statements for a listing of these subsidiaries and additional information. |
Accounting estimates | Accounting estimates |
Principles of consolidation | Principles of consolidation |
Presentation of cash flows | Presentation of cash flows Cash and due from banks |
Investment securities | Investment securities All debt securities are evaluated to determine whether declines in fair value below their amortized cost require an allowance. See further discussion in the Allowance section following. |
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 4 to the Consolidated Financial Statements. The Company’s portfolio segments 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 Note 1. Nature of Business and Significant Accounting Policies (continued) 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 30 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. Note 1. Nature of Business and Significant Accounting Policies (continued) Direct finance leases receivable, held for investment : The Company leases machinery and equipment to customers under leases that qualify as direct financing leases for financial reporting and as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 25% of the cost of the related equipment), are 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 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/leases 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 uncollectability of a loan/lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company’s methodologies for estimating the ACL 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 portfolio segment follows: For C&I loans, 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 and equipment. 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 seven years with average terms ranging from three 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. The Company is an active lender of LIHTC project loans which includes both the construction and permanent loan. CRE loans are subject to underwriting standards and processes similar Note 1. Nature of Business and Significant Accounting Policies (continued) 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, or in some situations, more conservative than those established by regulatory authorities. Multi-family loans are typically repaid from rental income. LIHTC permanent loans are included in multi-family loans and the maximum term is generally up to 20 years. 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, low-income housing project or major rehabilitation or expansion of existing commercial structures. Construction lending carries a higher degree of risk because of the difficulty of protecting the bank against various factors. The following components 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 take into consideration changes in current conditions that are not reflected in the quantitative analysis performed in determining its base credit loss rates. The Company utilizes the following qualitative factors: ● National and local economy ● Loan volume and trend ● Loan quality Note 1. Nature of Business and Significant Accounting Policies (continued) ● Loan policies and procedures ● Management and staff experience ● Concentrations ● Collateral ● Loan review system ● Regulatory environment and oversight The Company also provides for unique circumstances with qualitative adjustments as needed. The Company removed the separate qualitative allocation for the COVID-19 pandemic in the first quarter of 2022, which had been in place since the second quarter of 2020. The qualitative adjustments are based on the current conditions and applied as a percentage adjustment in addition to the calculated historical loss rates. The adjustment amount can be either positive or negative. 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. These forecasted adjustments are added to the qualitative adjustments and applied as a percentage adjustment in addition to the historical loss rates. 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, but not limited to, 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 uncollectability 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 with outstanding principal balances greater than $250,000 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. Note 1. Nature of Business and Significant Accounting Policies (continued) Low quality loans with principal balances equal to or less than $250,000 are placed into a unique pool and have the overall effective loss rate for that period applied to this low quality pool. However, should an asset within the low quality pool no longer have the same risk characteristic of the unique pool, it will be removed and individually analyzed as described above. 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 peer, 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 Note 1. Nature of Business and Significant Accounting Policies (continued) 7. Substandard – loans which are inadequately protected by the current sound 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, OREO, 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 equal to or greater than $1,000,000, the subsidiary banks with an asset size of $1.0 billion or less as of the most recent fiscal year-end require a term loan review within 15 months of the most recent credit review. For the subsidiary banks with an asset size of over $1.0 billion as of the most recent fiscal year-end, a term loan review is required within 15 months of the most recent credit review for term C&I and CRE loans of $2.0 million or more. A credit review encompasses any new debt issuances or renewed debt facilities that are part of the borrower’s credit relationship. The term loan/credit 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, 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. Note 1. Nature of Business and Significant Accounting Policies (continued) 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 OBS exposures 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 Other Liabilities section of the consolidated balance sheet. The Company recorded an ACL on OBS exposures upon adoption of ASU 2016-13. See Note 4. 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. The Company recorded an ACL on HTM debt securities upon adoption of ASU 2016-13. See Note 3. Allowance for Credit Losses on 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 the changes in risk-free interest rates, there has not been significant deterioration in the financial condition of the issues, 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 ACL on AFS debt securities upon adoption of ASU 2016-13. See Note 3. |
Credit related financial instruments | Credit related financial instruments |
Transfers of financial assets | Transfers of financial assets Note 1. Nature of Business and Significant Accounting Policies (continued) receivables), the transfer must meet the definition of a “participating interest” in order to account for the transfer as a sale. Following are the characteristics of a “participating interest”: ● Pro-rata ownership in an entire financial asset. ● From the date of the transfer, all cash flows received from entire financial assets are divided proportionately among the participating interest holders in an amount equal to their share of ownership. ● The rights of each participating interest holder have the same priority, and no participating interest holder’s interest is subordinated to the interest of another participating interest holder. That is, no participating interest holder is entitled to receive cash before any other participating interest holder under its contractual rights as a participating interest holder. ● No party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. |
Bank owned life insurance | BOLI |
Premises and equipment | Premises and equipment |
Restricted investment securities | Restricted investment securities |
Real estate | OREO |
Goodwill | Goodwill |
Core deposit intangible | Core deposit intangible Customer list intangible Note 1. Nature of Business and Significant Accounting Policies (continued) (estimated to be fifteen years). With the sale of the Bates Companies in August 2020, the remaining balance of the customer list intangible was written off. |
Swap transactions | Swap transactions Additionally, the Company receives an upfront, non-refundable fee from the counterparty, dependent upon the pricing, which is recognized upon receipt from the counterparty. This upfront, non-refundable fee is recorded as noninterest income and classified as swap fee income/capital markets revenue. |
Derivatives and hedging activities | Derivatives and hedging activities Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying index (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying index. The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market (although this type of derivative is negligible); (2) interest rate caps to manage the interest rate risk of certain variable rate deposits and short-term fixed rate liabilities; (3) interest rate swaps on variable rate trust preferred securities and floating rate loans; and (4) interest rate collars on floating rate loans. |
Preferred stock | Preferred stock |
Stock-based compensation plans | Stock-based compensation plans: As discussed in Note 16 to the Consolidated Financial Statements, during the years ended December 31, 2022, 2021, and 2020, the Company recognized stock-based compensation expense for the grant-date fair value of stock based awards that are expected to vest over the requisite service period of $2.4 million, $2.4 million and $2.2 million, respectively. As required, management made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. Note 1. Nature of Business and Significant Accounting Policies (continued) The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option grants with the following assumptions for the indicated periods: 2022 2021 2020 Dividend yield 0.43% to 0.45% 0.55% 0.60% to 0.81% Expected volatility 22.65% to 23.52% 23.57% 25.49% to 25.70% Risk-free interest rate 1.87% to 3.12% 1.62% 0.79% to 1.31% Expected life of option grants 6.25 years 6.25 years 6.25 years Weighted-average grant date fair value $ 13.94 to 15.09 $ 10.85 $ 10.07 The Company also uses the Black-Scholes option pricing model to estimate the fair value of stock purchase grants with the following assumptions for the indicated periods: 2022 2021 2020 Dividend yield 0.43% to 0.44% 0.49% to 0.61% 0.55% to 0.81% Expected volatility 17.97% to 21.16% 37.51% to 38.65% 24.59% to 36.38% Risk-free interest rate 0.14% to 2.24% 0% to 0.06% 0.15% to 1.65% Expected life of purchase grants 3 to 6 months 3 to 6 months 3 to 6 months Weighted-average grant date fair value $ 7.88 $ 7.67 $ 6.03 The fair value is amortized on a straight-line basis over the vesting periods of the grants and will be adjusted for subsequent changes in estimated forfeitures. The expected dividend yield assumption is based on the Company’s current expectations about its anticipated dividend policy. Expected volatility is based on historical volatility of the Company’s common stock price. The risk-free interest rate for periods within the contractual life of the option or purchase is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the option and purchase grants is derived using the “simplified” method and represents the period of time that options and purchases are expected to be outstanding. Historical data is used to estimate forfeitures used in the model. Two separate groups of employees (employees subject to broad based grants, and executive employees and directors) are used. As of December 31, 2022, there was $438 thousand of unrecognized compensation cost related to stock options granted, which is expected to be recognized over a weighted average period of 1.79 years. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the 324,503 options that were in-the-money at December 31, 2022. The aggregate intrinsic value at December 31, 2022 was $7.7 million on options outstanding and $7.5 million on options exercisable. During the years ended December 31, 2022, 2021 and 2020, the aggregate intrinsic value of options exercised under the Company’s stock-based compensation was $387 thousand, $419 thousand, and $270 thousand, respectively, and determined as of the date of the option exercise. Restricted stock awards granted may not be sold or otherwise transferred until the service periods have lapsed. During the vesting periods, participants have voting rights and receive dividends. Upon termination of employment, common shares upon which the service periods have not lapsed must be returned to the Company. All restricted share awards are classified as equity awards. The grant-date fair value of equity-classified restricted stock awards is amortized as compensation expense on a straight-line basis over the period restrictions lapse. As of December 31, 2022, there was $2.7 million of unrecognized compensation cost related to nonvested restricted stock awards expected to be recognized over a period of 1.6 years. |
Income taxes | Income taxes Deferred income taxes are provided under the liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. |
Trust assets | Trust assets |
Revenue Recognition | Revenue Recognition: Trust and Investment advisory and management fees Deposit service fees Note 1. Nature of Business and Significant Accounting Policies (continued) Correspondent banking fees: |
Reclassifications | Reclassifications |
Recent accounting developments | Recent accounting developments: The Company adopted ASU 2016-13, Financial Instruments – Credit Losses on January 1, 2021. Under the standard, assets measured at amortized cost (including loans, leases and HTM securities) are presented at the net amount expected to be collected. Rather than the “incurred” model previously utilized, the standard requires the use of a forward-looking approach to recognizing all expected credit losses at the beginning of an asset’s life. 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. 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 the standard. The following table illustrated 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 (dollars in thousands) 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. |
Pending accounting developments | Pending accounting developments: In March 2020, the FASB issued ASU 2020-4, “ Reference Rate Reform,” Note 1. Nature of Business and Significant Accounting Policies (continued) postponement of the cessation date of LIBOR, the FASB issued ASU 2022-06 which defers the sunset date of the ASU 2020-4 guidance to December 31, 2024, after which entities will no longer be permitted to apply the relief. Management has assessed the impacts of ASU 2020-4 and the related opportunities and risks involved in the LIBOR transition. Specifically, management has identified all of the financial instruments with LIBOR exposure which includes certain commercial loans, certain derivatives, and certain securities. In all cases, management has determined a plan of transition from LIBOR to a different index. The transition will happen prior to the expiration of published LIBOR rates on June 30, 2023. Management expects the transition to have a minimal impact to the Company’s financial statements. In April 2022, the FASB issued ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures. |
Note 1 - Nature of Business a_3
Note 1 - Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Business and Significant Accounting Policies | |
Fair value assumptions for stock option grants and stock purchase grants | 2022 2021 2020 Dividend yield 0.43% to 0.45% 0.55% 0.60% to 0.81% Expected volatility 22.65% to 23.52% 23.57% 25.49% to 25.70% Risk-free interest rate 1.87% to 3.12% 1.62% 0.79% to 1.31% Expected life of option grants 6.25 years 6.25 years 6.25 years Weighted-average grant date fair value $ 13.94 to 15.09 $ 10.85 $ 10.07 2022 2021 2020 Dividend yield 0.43% to 0.44% 0.49% to 0.61% 0.55% to 0.81% Expected volatility 17.97% to 21.16% 37.51% to 38.65% 24.59% to 36.38% Risk-free interest rate 0.14% to 2.24% 0% to 0.06% 0.15% to 1.65% Expected life of purchase grants 3 to 6 months 3 to 6 months 3 to 6 months Weighted-average grant date fair value $ 7.88 $ 7.67 $ 6.03 |
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 (dollars in thousands) 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. |
Note 2 - Mergers_Acquisitions_2
Note 2 - Mergers/Acquisitions/Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Bates Companies | |
Notes Tables | |
Fair values of the assets acquired and liabilities assumed | As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,259 Total assets sold $ 2,627 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,681 Cash consideration $ 195 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 158 |
Guaranty Federal Bancshares, Inc | |
Notes Tables | |
Fair values of the assets acquired and liabilities assumed | As of April 1, 2022 (dollars in thousands) ASSETS Cash and due from banks $ 171,844 Interest-bearing deposits at financial institutions 17,134 Securities 143,017 Loans/leases receivable, net 801,697 Bank-owned life insurance 32,100 Premises and equipment 16,257 Restricted investment securities 2,220 Other real estate owned 55 Intangibles 10,264 Other assets 23,685 Total assets acquired $ 1,218,273 LIABILITIES Deposits $ 1,076,573 FHLB advances 16,000 Subordinated notes 19,621 Junior subordinated debentures 10,310 Other liabilities 15,225 Total liabilities assumed $ 1,137,729 Net assets acquired $ 80,544 CONSIDERATION PAID: Cash $ 26,871 Common stock 117,214 Total consideration paid $ 144,085 Goodwill $ 63,541 |
Schedule of carrying amount of loans acquired and classified | Guaranty Bank April 1, 2022 (dollars in thousands) Principal balance of PCD loans at acquisition $ 38,711 Allowance for credit losses at acquisition (5,902) Non-credit discount at acquisition (1,366) Fair value of PCD loans at acquisition $ 31,443 |
Schedule of FHLB advances and other borrowings | Amount Rate Terms Maturity Date Collateral (dollars in thousands) FHLB advance 6,500 0.59% monthly interest payments; principal due at maturity 5/15/2023 commercial and residential real estate loans FHLB advance 6,500 0.82% monthly interest payments; principal due at maturity 5/15/2025 commercial and residential real estate loans FHLB advance 3,000 1.12% monthly interest payments; principal due at maturity 5/17/2027 commercial and residential real estate loans Subordinated notes 19,621 5.25% monthly interest payments; principal due at maturity 9/30/2030 unsecured Junior subordinated debentures 10,310 4.09% monthly interest payments; principal due at maturity 2/23/2036 unsecured Fair value of borrowings assumed $ 45,931 |
Schedule of unaudited pro forma combined operating results | For the Year Ended December 31, 2022 2021 Net interest income $ 242,161 $ 222,839 Noninterest income $ 82,966 $ 114,095 Net income $ 119,899 $ 99,606 Earnings per common share: Basic $ 6.97 $ 5.60 Diluted $ 6.89 $ 5.53 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) December 31, 2022: Securities HTM: Municipal securities $ 586,272 $ 5,292 $ (56,978) $ 534,586 Other securities 1,050 — — 1,050 $ 587,322 $ 5,292 $ (56,978) $ 535,636 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 19,745 $ 19 $ (2,783) $ 16,981 Residential mortgage-backed and related securities 73,438 — (7,223) 66,215 Municipal securities 239,812 66 (46,700) 193,178 Asset-backed securities 18,885 48 (205) 18,728 Other securities 48,631 27 (2,800) 45,858 $ 400,511 $ 160 $ (59,711) $ 340,960 * HTM securities shown on the balance sheet of $587.1 million represent amortized cost of $587.3 million, net of allowance for credit losses of $180 thousand as of December 31, 2022. Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) December 31, 2021: Securities HTM: Municipal securities $ 471,533 $ 49,715 $ — $ 521,248 Other securities 1,050 — (1) 1,049 $ 472,583 $ 49,715 $ (1) $ 522,297 Securities AFS: U.S. govt. sponsored agency securities $ 23,370 $ 254 $ (296) $ 23,328 Residential mortgage-backed and related securities 92,431 2,672 (780) 94,323 Municipal securities 163,253 5,228 (215) 168,266 Asset-backed securities 26,372 752 — 27,124 Other securities 24,568 251 (30) 24,789 $ 329,994 $ 9,157 $ (1,321) $ 337,830 * HTM securities shown on the balance sheet of $472.4 million represent amortized cost of $472.6 million, net of allowance for credit losses of $198 thousand as of December 31, 2021. |
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) December 31, 2022: Securities HTM: Municipal securities $ 347,651 $ (56,978) $ — $ — $ 347,651 $ (56,978) $ 347,651 $ (56,978) $ — $ — $ 347,651 $ (56,978) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 5,138 $ (326) $ 10,591 $ (2,457) $ 15,729 $ (2,783) Residential mortgage-backed and related securities 48,469 (3,327) 17,690 (3,896) 66,159 (7,223) Municipal securities 178,172 (42,661) 9,809 (4,039) 187,981 (46,700) Asset-backed securities 13,684 (205) — — 13,684 (205) Other securities 35,206 (2,404) 4,122 (396) 39,328 (2,800) $ 280,669 $ (48,923) $ 42,212 $ (10,788) $ 322,881 $ (59,711) 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, 2021: Securities HTM: Other securities $ 1,049 $ (1) $ — $ — $ 1,049 $ (1) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 9,802 $ (156) $ 3,035 $ (140) $ 12,837 $ (296) Residential mortgage-backed and related securities 5,363 (67) 19,406 (713) 24,769 (780) Municipal securities 13,287 (211) 1,001 (4) 14,288 (215) Other securities 4,528 (30) — — 4,528 (30) $ 32,980 $ (464) $ 23,442 $ (857) $ 56,422 $ (1,321) |
Activity in allowance for credit losses | Year Ended December 31, 2022 Year Ended December 31, 2021 Municipal Other Municipal Other securities securities Total securities securities Total (dollars in thousands) Allowance for credit losses: Beginning balance $ 198 $ — $ 198 $ — $ — $ — Impact of adopting ASU 2016-13 — — — 182 1 183 Provision for credit loss expense (18) — (18) 16 (1) 15 Balance, ending $ 180 $ — $ 180 $ 198 $ — $ 198 |
Realized gain (loss) on investments | 2022 2021 2020 (dollars in thousands) Proceeds from sales of securities $ 111,375 $ 23,874 $ 38,562 Gross gains from sales of securities — — 2,553 Gross losses from sales of securities — (88) (69) |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,902 $ 2,895 Due after one year through five years 18,998 19,359 Due after five years 565,422 513,382 $ 587,322 $ 535,636 Securities AFS: Due in one year or less $ 4,522 $ 4,510 Due after one year through five years 4,159 4,135 Due after five years 299,507 247,372 308,188 256,017 Residential mortgage-backed and related securities 73,438 66,215 Asset-backed securities 18,885 18,728 $ 400,511 $ 340,960 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 330,576 $ 296,851 Securities AFS: Municipal securities 235,334 188,707 Other securities 47,681 44,923 $ 283,015 $ 233,630 |
Note 4 - Loans_Leases Receivabl
Note 4 - Loans/Leases Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Composition of the loan/lease portfolio | December 31, 2022 December 31, 2021 (dollars in thousands) C&I: C&I - revolving $ 296,869 $ 248,483 C&I - other * 1,451,693 1,346,602 1,748,562 1,595,085 CRE - owner occupied 629,367 421,701 CRE - non-owner occupied 963,239 646,500 Construction and land development 1,192,061 918,571 Multi-family 963,803 600,412 Direct financing leases** 31,889 45,191 1-4 family real estate*** 499,529 377,361 Consumer 110,421 75,311 6,138,871 4,680,132 Allowance for credit losses (87,706) (78,721) $ 6,051,165 $ 4,601,411 ** Direct financing leases: Net minimum lease payments to be received $ 34,754 $ 49,362 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (3,030) (4,336) 31,889 45,191 Plus deferred lease origination costs, net of fees 226 568 32,115 45,759 Less allowance for credit losses (970) (1,546) $ 31,145 $ 44,213 * Includes equipment financing agreements outstanding at m2, totaling $278.0 million and $225.1 million as of December 31, 2022 and 2021, respectively and PPP loans totaling $68.3 thousand and $28.2 million as of December 31, 2022 and December 31, 2021, 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 and 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 $1.5 million and $3.8 million as of December 31, 2022 and 2021, respectively. |
Changes in accretable yield for acquired loans | Year ended December 31, 2022 December 31, 2021 Total Total (dollars in thousands) Balance at the beginning of the period $ (1,533) $ (3,139) Discount added at acquisition (13,381) — Accretion recognized 8,826 1,606 Balance at the end of the period $ (6,088) $ (1,533) Year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable (530) — (530) Reclassification of nonaccretable discount to allowance — 353 353 Accretion recognized 587 2,886 3,473 Balance at the end of the period $ — $ (3,139) $ (3,139) |
Aging of the loan/lease portfolio by classes of loans/leases | 2022 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 $ 296,869 $ — $ — $ — $ — $ 296,869 C&I - other 1,442,629 4,800 1,124 5 3,135 1,451,693 CRE - owner occupied 625,611 1,166 — — 2,590 629,367 CRE - non-owner occupied 962,444 421 — — 374 963,239 Construction and land development 1,191,929 — — — 132 1,192,061 Multi-family 963,803 — — — — 963,803 Direct financing leases 31,557 141 56 — 135 31,889 1-4 family real estate 495,936 1,030 517 — 2,046 499,529 Consumer 110,041 27 — — 353 110,421 $ 6,120,819 $ 7,585 $ 1,697 $ 5 $ 8,765 $ 6,138,871 As a percentage of total loan/lease portfolio 99.71 % 0.12 % 0.03 % 0.00 % 0.14 % 100.00 % 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 $ 248,483 $ — $ — $ — $ — $ 248,483 C&I - other 1,337,034 859 7,308 1 1,400 1,346,602 CRE - owner occupied 421,701 — — — — 421,701 CRE - non-owner occupied 646,500 — — — — 646,500 Construction and land development 918,498 — — — 73 918,571 Multi-family 600,412 — — — — 600,412 Direct financing leases 44,174 10 160 — 847 45,191 1-4 family real estate 374,912 1,325 716 — 408 377,361 Consumer 75,272 8 — — 31 75,311 $ 4,666,986 $ 2,202 $ 8,184 $ 1 $ 2,759 $ 4,680,132 As a percentage of total loan/lease portfolio 99.72 % 0.05 % 0.17 % 0.00 % 0.06 % 100.00 % |
NPLs by classes of loans/leases | 2022 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 5 2,775 360 3,140 35.80 CRE - owner occupied — 1,738 852 2,590 29.53 CRE - non-owner occupied — 68 306 374 4.26 Construction and land development — 132 — 132 1.51 Multi-family — — — — - Direct financing leases — 80 55 135 1.54 1-4 family real estate — 1,641 405 2,046 23.33 Consumer — 353 — 353 4.03 $ 5 $ 6,787 $ 1,978 $ 8,770 100.00 % 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 1 1,130 270 1,401 50.77 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 73 — 73 2.64 Multi-family — — — — - Direct financing leases — 115 732 847 30.69 1-4 family real estate — 408 — 408 14.78 Consumer — 31 — 31 1.12 $ 1 $ 1,757 $ 1,002 $ 2,760 100.00 % |
Allowance for credit losses on financing receivables | Year Ended December 31, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family C&I Revolving Other* Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,907 $ 25,982 $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ 4,541 $ 930 $ 78,721 Initial ACL recorded for PCD loans — 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** — (50) 7,364 (1,023) 2,220 (2,981) 3,323 306 477 9,636 Charge-offs — — (6,417) — (193) (829) — (21) (65) (7,525) Recoveries — — 817 6 97 — 43 — 9 972 Balance, ending $ — $ 4,457 $ 27,753 $ 9,965 $ 11,749 $ 14,262 $ 13,186 $ 4,963 $ 1,371 $ 87,706 *Included within the C&I-other column are ACL on leases with a beginning balance of $1.5 million, provision of $269 thousand, charge-offs of $1.1 million and recoveries of $273 thousand. ACL on leases was ** Provision of the year ended December 31, 2022, included $11.0 million related to the acquired Guaranty Bank non-PCD loans. Year Ended December 31, 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 $ 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 — 925 (1,451) — (198) (1,088) 4,973 3,653 — — (603) (509) 5,702 Charge-offs — — (2,287) — — (1,876) — (150) — — (179) (46) (4,538) Recoveries — — 590 — 3 85 — — — — 281 324 1,283 Balance, ending $ — $ 3,907 $ 25,982 $ — $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ — $ — $ 4,541 $ 930 $ 78,721 *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 $703 thousand, charge-offs of $458 thousand and recoveries of $258 thousand. ACL on leases was Year Ended December 31, 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 charged to expense 22,899 28,671 2,148 1,755 231 55,704 Loans/leases charged off (4,199) (2,071) (1,993) — (120) (8,383) Recoveries on loans/leases previously charged off 649 182 145 29 49 1,054 Balance, ending $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Note 4. Loans/Leases Receivable (continued) The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: Year ended December 31, 2022 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 $ 3,386 $ 293,483 $ 296,869 $ 961 $ 3,496 $ 4,457 C&I - other* 9,358 1,474,224 1,483,582 1,445 26,308 27,753 12,744 1,767,707 1,780,451 2,406 29,804 32,210 CRE - owner occupied 24,880 604,487 629,367 2,853 7,112 9,965 CRE - non-owner occupied 21,588 941,651 963,239 869 10,880 11,749 Construction and land development 10,394 1,181,667 1,192,061 13 14,249 14,262 Multi-family 1,302 962,501 963,803 395 12,791 13,186 1-4 family real estate 3,177 496,352 499,529 317 4,646 4,963 Consumer 741 109,680 110,421 75 1,296 1,371 $ 74,826 $ 6,064,045 $ 6,138,871 $ 6,928 $ 80,778 $ 87,706 *Included within the C&I – other category are leases individually evaluated of $135 thousand with a related allowance for credit losses of $24 thousand and leases collectively evaluated of $31.8 million with a related allowance for credit losses of $946 thousand. As of December 31, 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 $ 2,638 $ 245,845 $ 248,483 $ 168 $ 3,739 $ 3,907 C&I - other* 13,456 1,378,337 1,391,793 743 25,239 25,982 16,094 1,624,182 1,640,276 911 28,978 29,889 CRE - owner occupied 3,841 417,860 421,701 1,264 7,237 8,501 CRE - non-owner occupied 25,006 621,494 646,500 — 8,549 8,549 Construction and land development 10,436 908,135 918,571 11 16,961 16,972 Multi-family — 600,412 600,412 — 9,339 9,339 1-4 family real estate 2,950 374,411 377,361 329 4,212 4,541 Consumer 350 74,961 75,311 39 891 930 $ 58,677 $ 4,621,455 $ 4,680,132 $ 2,554 $ 76,167 $ 78,721 *Included within the C&I – other category are leases individually evaluated of $847 thousand with a related allowance for credit losses of $35 thousand and leases collectively evaluated of $44.4 million with a related allowance for credit losses of $1.5 million. |
Schedule of loans receivable by collateral type | Year ended December 31, 2022 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 3,281 $ — $ — $ — $ — $ 105 $ — $ 3,386 C&I - other* 1,589 210 — — 108 7,289 162 9,358 4,870 210 — — 108 7,394 162 12,744 CRE - owner occupied — 24,814 — 66 — — — 24,880 CRE - non-owner occupied — — 21,588 — — — — 21,588 Construction and land development — — 10,394 — — — — 10,394 Multi-family — — 1,302 — — — — 1,302 1-4 family real estate — — 33 3,144 — — — 3,177 Consumer — — 120 608 — — 13 741 $ 4,870 $ 25,024 $ 33,437 $ 3,818 $ 108 $ 7,394 $ 175 $ 74,826 *Included within the C&I – other category are leases individually evaluated of $135 thousand with primary collateral of equipment. As of December 31, 2021 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 2,518 $ — $ — $ — $ — $ 120 $ — $ 2,638 C&I - other* 683 — — 2,471 134 9,877 291 13,456 3,201 — — 2,471 134 9,997 291 16,094 CRE - owner occupied — — — 3,841 — — — 3,841 CRE - non-owner occupied — — 25,006 — — — — 25,006 Construction and land development — — 10,362 74 — — — 10,436 Multi-family — — — — — — — — 1-4 family real estate — — 817 2,133 — — — 2,950 Consumer — — — 340 — 1 9 350 $ 3,201 $ — $ 36,185 $ 8,859 $ 134 $ 9,998 $ 300 $ 58,677 *Included within the C&I – other category are leases individually evaluated of $847 thousand with primary collateral of equipment. |
Schedule of financing receivable credit quality indicators based on internally assigned Risk rating | 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 275,888 $ 275,888 Special Mention (Rating 6) — — — — — — 17,595 17,595 Substandard (Rating 7) — — — — — — 3,386 3,386 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 296,869 $ 296,869 C&I - other Pass (Ratings 1 through 5) $ 496,445 $ 279,412 $ 127,803 $ 87,054 $ 59,675 $ 105,184 $ — $ 1,155,573 Special Mention (Rating 6) 9,542 679 901 723 — 308 — 12,153 Substandard (Rating 7) 187 125 661 4,535 310 106 — 5,924 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 506,174 $ 280,216 $ 129,365 $ 92,312 $ 59,985 $ 105,598 $ — $ 1,173,650 CRE - owner occupied Pass (Ratings 1 through 5) $ 146,211 $ 182,440 $ 142,596 $ 33,571 $ 27,088 $ 45,993 $ 13,460 $ 591,359 Special Mention (Rating 6) 6,190 — 6,379 484 — 1,346 269 14,668 Substandard (Rating 7) 3,750 171 16,336 1,396 1,197 490 — 23,340 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 156,151 $ 182,611 $ 165,311 $ 35,451 $ 28,285 $ 47,829 $ 13,729 $ 629,367 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 310,163 $ 221,953 $ 173,478 $ 89,337 $ 56,898 $ 40,923 $ 7,510 $ 900,262 Special Mention (Rating 6) 2,824 882 18,920 — 12,917 6,198 — 41,741 Substandard (Rating 7) 5,651 — 157 15,217 — — 211 21,236 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 318,638 $ 222,835 $ 192,555 $ 104,554 $ 69,815 $ 47,121 $ 7,721 $ 963,239 Construction and land development Pass (Ratings 1 through 5) $ 479,016 $ 330,434 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,141,782 Special Mention (Rating 6) 1,465 9,200 — — — — — 10,665 Substandard (Rating 7) 132 10,262 — — — — — 10,394 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 480,613 $ 349,896 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,162,841 Multi-family Pass (Ratings 1 through 5) $ 237,839 $ 254,056 $ 224,920 $ 134,378 $ 99,695 $ 7,875 $ 2,227 $ 960,990 Special Mention (Rating 6) — 44 — 1,467 — — — 1,511 Substandard (Rating 7) — — 1,302 — — — — 1,302 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 237,839 $ 254,100 $ 226,222 $ 135,845 $ 99,695 $ 7,875 $ 2,227 $ 963,803 1-4 family real estate Pass (Ratings 1 through 5) $ 61,953 $ 57,731 $ 33,737 $ 12,687 $ 5,813 $ 6,002 $ 5,855 $ 183,778 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 28 — — 5 — — — 33 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 61,981 $ 57,731 $ 33,737 $ 12,692 $ 5,813 $ 6,002 $ 5,855 $ 183,811 Consumer Pass (Ratings 1 through 5) $ 511 $ 801 $ 493 $ 122 $ 254 $ 621 $ 10,226 $ 13,028 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 282 — 12 — 112 — — 406 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 793 $ 801 $ 505 $ 122 $ 366 $ 621 $ 10,226 $ 13,434 Total $ 1,762,189 $ 1,348,190 $ 988,473 $ 412,583 $ 294,259 $ 215,046 $ 366,274 $ 5,387,014 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) $ — $ — $ — $ — $ — $ — $ 245,212 $ 245,212 Special Mention (Rating 6) — — — — — — 633 633 Substandard (Rating 7) — — — — — — 2,638 2,638 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 248,483 $ 248,483 C&I - other Pass (Ratings 1 through 5) $ 391,532 $ 362,256 $ 133,678 $ 82,177 $ 83,419 $ 53,310 $ — $ 1,106,372 Special Mention (Rating 6) 3,580 373 349 — 336 2 — 4,640 Substandard (Rating 7) 506 2,366 7,138 396 55 46 — 10,507 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 395,618 $ 364,995 $ 141,165 $ 82,573 $ 83,810 $ 53,358 $ — $ 1,121,519 CRE - owner occupied Pass (Ratings 1 through 5) $ 118,014 $ 143,045 $ 47,660 $ 30,523 $ 17,038 $ 46,185 $ 11,477 $ 413,942 Special Mention (Rating 6) 637 — — 233 1,846 1,202 — 3,918 Substandard (Rating 7) — — 2,080 1,239 522 — — 3,841 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 118,651 $ 143,045 $ 49,740 $ 31,995 $ 19,406 $ 47,387 $ 11,477 $ 421,701 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 176,813 $ 145,712 $ 88,697 $ 63,849 $ 55,752 $ 28,808 $ 8,592 $ 568,223 Special Mention (Rating 6) 7,295 20,881 1,802 12,230 5,494 5,580 — 53,282 Substandard (Rating 7) 1,105 6,297 15,563 1,087 943 — — 24,995 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 185,213 $ 172,890 $ 106,062 $ 77,166 $ 62,189 $ 34,388 $ 8,592 $ 646,500 Construction and land development Pass (Ratings 1 through 5) $ 394,045 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 892,425 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 10,362 — — — — — — 10,362 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 404,407 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 902,787 Multi-family Pass (Ratings 1 through 5) $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 1-4 family real estate Pass (Ratings 1 through 5) $ 47,097 $ 24,029 $ 16,188 $ 7,569 $ 5,845 $ 5,213 $ 3,079 $ 109,020 Special Mention (Rating 6) 37 — — — — — — 37 Substandard (Rating 7) — 178 — 437 201 — — 816 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 47,134 $ 24,207 $ 16,188 $ 8,006 $ 6,046 $ 5,213 $ 3,079 $ 109,873 Consumer Pass (Ratings 1 through 5) $ 1,558 $ 487 $ 108 $ 216 $ — $ 824 $ 2,031 $ 5,224 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — 137 — — — 137 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 1,558 $ 487 $ 108 $ 353 $ — $ 824 $ 2,031 $ 5,361 Total $ 1,418,701 $ 1,151,208 $ 514,237 $ 354,369 $ 180,072 $ 148,546 $ 289,503 $ 4,056,636 |
Schedule of financing receivable credit quality indicators based on delinquency status | 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 170,180 $ 69,694 $ 25,540 $ 8,066 $ 1,804 $ 79 $ — $ 275,363 Nonperforming 1,110 1,320 155 95 — — — 2,680 Total C&I - other $ 171,290 $ 71,014 $ 25,695 $ 8,161 $ 1,804 $ 79 $ — $ 278,043 Construction and land development Performing $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 Nonperforming — — — — — — — — Total Construction and land development $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 Direct financing leases Performing $ 14,578 $ 5,172 $ 5,700 $ 4,398 $ 1,536 $ 370 $ — $ 31,754 Nonperforming — 32 88 7 8 — — 135 Total Direct financing leases $ 14,578 $ 5,204 $ 5,788 $ 4,405 $ 1,544 $ 370 $ — $ 31,889 1-4 family real estate Performing $ 69,094 $ 92,762 $ 75,153 $ 17,089 $ 11,381 $ 48,136 $ 90 $ 313,705 Nonperforming 267 524 487 279 8 448 — 2,013 Total 1-4 family real estate $ 69,361 $ 93,286 $ 75,640 $ 17,368 $ 11,389 $ 48,584 $ 90 $ 315,718 Consumer Performing $ 14,685 $ 3,844 $ 3,717 $ 1,123 $ 1,140 $ 1,325 $ 70,974 $ 96,808 Nonperforming 7 — — — 3 59 110 179 Total Consumer $ 14,692 $ 3,844 $ 3,717 $ 1,123 $ 1,143 $ 1,384 $ 71,084 $ 96,987 Total $ 298,706 $ 173,708 $ 110,850 $ 31,060 $ 15,942 $ 50,417 $ 71,174 $ 751,857 *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. 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 $ 117,163 $ 54,261 $ 33,390 $ 14,274 $ 4,200 $ 455 $ — $ 223,743 Nonperforming 95 177 644 368 42 14 — 1,340 Total C&I - other $ 117,258 $ 54,438 $ 34,034 $ 14,642 $ 4,242 $ 469 $ — $ 225,083 Direct financing leases Performing $ 6,690 $ 12,130 $ 11,638 $ 9,235 $ 3,695 $ 956 $ — $ 44,344 Nonperforming — 732 — 52 18 45 — 847 Total Direct financing leases $ 6,690 $ 12,862 $ 11,638 $ 9,287 $ 3,713 $ 1,001 $ — $ 45,191 Construction and land development Performing $ 12,857 $ 2,080 $ — $ 494 $ — $ — $ 280 $ 15,711 Nonperforming — — — — 73 — — 73 Total Construction and land development $ 12,857 $ 2,080 $ — $ 494 $ 73 $ — $ 280 $ 15,784 1-4 family real estate Performing $ 104,005 $ 78,713 $ 19,001 $ 10,784 $ 10,533 $ 43,976 $ 68 $ 267,080 Nonperforming — — — 106 — 302 — 408 Total 1-4 family real estate $ 104,005 $ 78,713 $ 19,001 $ 10,890 $ 10,533 $ 44,278 $ 68 $ 267,488 Consumer Performing $ 4,891 $ 4,020 $ 2,114 $ 1,660 $ 593 $ 1,230 $ 55,411 $ 69,919 Nonperforming — — 15 — 15 1 — 31 Total Consumer $ 4,891 $ 4,020 $ 2,129 $ 1,660 $ 608 $ 1,231 $ 55,411 $ 69,950 Total $ 245,701 $ 152,113 $ 66,802 $ 36,973 $ 19,169 $ 46,979 $ 55,759 $ 623,496 |
Number and recorded investment of TDRs, by type of concession | 2022 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay Direct Financing Leases 3 $ 232 $ 232 $ — TOTAL 3 $ 232 $ 232 $ — 2021 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Extension of Maturity 1-4 family real estate 1 $ 2,532 $ 2,532 $ 182 CONCESSION - Interest Rate Adjusted Below Market 1-4 family real estate 1 $ 54 $ 54 $ 6 Consumer 1 13 13 1 2 $ 67 $ 67 $ 7 TOTAL 3 $ 2,599 $ 2,599 $ 189 |
Analysis of changes in aggregated amounts of loans | 2022 2021 2020 (dollars in thousands) Balance, beginning $ 100,898 $ 100,361 $ 112,830 Net increase (decrease) due to change in related parties 3,496 (18,832) (1,601) Advances 51,683 42,817 43,238 Repayments (42,877) (23,448) (54,106) Balance, ending $ 113,200 $ 100,898 $ 100,361 |
Loan concentration by segment | 2022 2021 Percentage of Percentage of Total Total Industry Name Balance Loans/Leases Balance Loans/Leases (dollars in thousands) Lessors of Residential Buildings* $ 2,168,431 35 % $ 1,706,092 36 % Lessors of Non-Residential Buildings 558,719 9 % 586,672 13 % * |
Unfunded Loan Commitment | |
Notes Tables | |
Financing receivable credit quality indicators | For the Year Ended December 31, 2022 December 31, 2021 (dollars in thousands) Balance, beginning $ 6,886 $ — Impact of adopting ASU 2016-13 — 9,117 Provisions (credited) to expense (1,334) (2,231) Balance, ending $ 5,552 $ 6,886 |
Note 5 - Premises and Equipme_2
Note 5 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Components of premises and equipment | 2022 2021 (dollars in thousands) Land $ 17,804 $ 12,513 Buildings (useful lives 15 to 39 years ) 108,777 70,860 Furniture and equipment (useful lives 3 to 15 years ) 54,305 47,517 Premises and equipment 180,886 130,890 Less accumulated depreciation 62,938 52,360 Premises and equipment, net $ 117,948 $ 78,530 |
Maturities of operating lease liabilities | Amount Year ending December 31: (dollars in thousands) 2023 571 2024 336 2025 262 2026 240 2027 230 Thereafter 2,635 $ 4,274 |
Contractual maturities of sales-type and direct financing lease receivables | Amount Year ending December 31: (dollars in thousands) 2023 1,854 2024 8,910 2025 11,046 2026 4,723 2027 6,741 Thereafter 1,480 Total lease payments receivable $ 34,754 Unguaranteed residual values 165 Unearned lease/residual income (3,030) $ 31,889 Plus deferred origination costs, net of fees 226 $ 32,115 Less allowance (970) Total lease payments receivable $ 31,145 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Changes in carrying amount of goodwill | 2022 2021 2020 (dollars in thousands) Balance at the beginning of period $ 74,066 $ 74,066 $ 74,748 Acquisition of GFED 63,541 — — Sale of Bates Companies — — (182) Goodwill impairment - Bates Companies — — (500) Balance at the end of period $ 137,607 $ 74,066 $ 74,066 |
Schedule of goodwill by reportable segment | December 31, 2022 December 31, 2021 December 31, 2020 (dollars in thousands) Commercial banking: QCBT $ 3,223 $ 3,223 $ 3,223 CRBT 14,980 14,980 14,980 CSB 9,888 9,888 9,888 GB 109,516 45,975 45,975 $ 137,607 $ 74,066 $ 74,066 |
Schedule of core deposit intangibles by reportable segment | December 31, 2022 December 31, 2021 December 31, 2020 (dollars in thousands) Commercial Banking: CRBT $ 1,225 $ 1,702 $ 2,189 CSB 2,027 2,653 3,305 GB 13,507 4,994 5,887 $ 16,759 $ 9,349 $ 11,381 |
Core Deposits [Member] | |
Notes Tables | |
Changes in Intangibles | 2022 2021 2020 (dollars in thousands) Balance at the beginning of the period $ 9,349 $ 11,381 $ 13,466 Acquisition of GFED 10,264 — — Amortization expense (2,854) (2,032) (2,085) Balance at the end of the period $ 16,759 $ 9,349 $ 11,381 Gross carrying amount $ 29,519 $ 19,255 $ 19,255 Accumulated amortization (12,760) (9,906) (7,874) Net book value $ 16,759 $ 9,349 $ 11,381 |
Estimated amortization of intangible assets | Amount Years ending December 31, (dollars in thousands) 2023 $ 2,938 2024 2,761 2025 2,645 2026 2,360 2027 1,874 Thereafter 4,181 $ 16,759 |
Customer Lists [Member] | |
Notes Tables | |
Changes in Intangibles | 2020 Balance at the beginning of period $ 1,504 Sale of Bates Companies (1,440) Amortization (64) Balance at the end of period $ — |
Note 7 - Derivatives and Hedg_2
Note 7 - Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Summary of derivatives | December 31, 2022 December 31, 2021 (dollars in thousands) Assets: Interest rate caps - hedged $ 8,327 $ 927 Interest rate caps 2,213 238 Interest rate swaps - hedged 477 — Interest rate swaps 166,614 221,055 $ 177,631 $ 222,220 Liabilities: Interest rate collars - hedged $ (263) $ — Interest rate swaps - hedged (33,824) (4,080) Interest rate swaps (166,614) (221,055) $ (200,701) $ (225,135) |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | December 31, 2022 December 31, 2021 (dollars in thousands) Cash $ 1,272 $ 21,100 U.S treasuries and govt. sponsored agency securities — 3,555 Municipal securities 8,227 139,166 Residential mortgage-backed and related securities 29,257 65,104 $ 38,756 $ 228,925 |
Summary of impact of AOCI | Year Ended December 31, 2022 December 31, 2021 (dollars in thousands) Unrealized loss at beginning of period, net of tax $ (4,373) $ (7,632) Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization (1,001) 697 Amount of gain (loss) recognized in other comprehensive income, net of tax (14,847) 2,562 Unrealized loss at end of period, net of tax $ (20,221) $ (4,373) Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Interest and Interest Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 292,571 $ 61,451 $ 200,155 $ 21,922 $ 198,373 $ 31,423 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - (1,405) - 697 551 Interest rate swaps on variable rate loans (829) - 1,006 - - 185 Interest rate swaps on junior subordinated debentures - 462 - 1,114 - 832 |
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 December 31, 2022 December 31, 2021 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ (50) $ 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 % - 11 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 % - 5 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 714 60 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 1,566 125 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 783 62 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 1,264 161 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 2,700 332 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 1,350 166 $ 300,000 $ 8,327 $ 927 |
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 December 31, 2022 December 31, 2021 (dollars in thousands) 1/1/2020 1/3/2023 Derivatives - Assets $ 25,000 1.90 % $ 3 $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 822 62 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 1,388 173 $ 75,000 $ 2,213 $ 238 |
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 December 31, 2022 December 31, 2021 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 4.12 % $ (5,646) $ (17) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 4.12 % (8,066) (25) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 4.12 % (6,464) (34) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 4.12 % (4,018) (13) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 4.12 % (1,144) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 4.12 % (3,812) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 4.12 % (2,669) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 4.12 % (3,812) N/A $ 300,000 $ (35,631) $ (89) Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate December 31, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities $ 10,000 6.52 % 5.85 % $ 464 $ (1,035) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 6.52 % 5.85 % 372 (828) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 4.06 % 4.54 % 459 (996) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 6.92 % 5.17 % 140 (309) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 5.04 % 4.75 % 163 (360) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 5.04 % 4.75 % 209 (463) Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 6.14 % 4.09 % 477 N/A $ 49,310 $ 2,284 $ (3,991) * As part of the acquisition of GFED in 2022, the Company assumed one interest rate swap. |
Changes in the fair value of the underlying derivative contracts | December 31, 2022 December 31, 2021 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,528,949 $ 166,614 $ 2,024,599 $ 221,055 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,528,949 $ 166,614 $ 2,024,599 $ 221,055 |
Interest rate collar | |
Notes Tables | |
Schedule of interest rate caps | Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate December 31, 2022 December 31, 2021 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (263) $ N/A |
Note 8 - Deposits (Tables)
Note 8 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of maturities of certificates of deposit | Amount (dollars in thousands) Year ending December 31: 2023 $ 710,100 2024 53,029 2025 11,274 2026 4,209 2027 5,571 Thereafter 401 $ 784,584 |
Schedules of collateralized investment securities | 2022 2021 (dollars in thousands) U.S. govt. sponsored agency securities $ 2,081 $ 3,080 Residential mortgage-backed and related securities 1,796 3,270 $ 3,877 $ 6,350 |
Note 9 - Short-term Borrowings
Note 9 - Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Short-term borrowings | 2022 2021 (dollars in thousands) Federal funds purchased $ 129,630 $ 3,800 |
Schedule of repurchase agreements | 2022 2021 (dollars in thousands) Average daily balance $ 8,637 $ 6,280 Average daily interest rate 1.76 % 0.08 % Maximum month-end balance $ 129,630 $ 11,320 Weighted average rate as of December 31 4.70 % 0.08 % |
Note 10 - FHLB Advances (Tables
Note 10 - FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of maturity and interest rate information on advances | December 31, 2022 December 31, 2021 Weighted Weighted Average Average Interest Rate Interest Rate Amount Due at Year-End Amount Due at Year-End (dollars in thousands) Maturity: Year ending December 31: 2022 $ — — % $ 15,000 0.31 % 2023 415,000 4.58 — — Total FHLB advances $ 415,000 4.58 % $ 15,000 0.31 % |
Note 11 - Other Borrowings an_2
Note 11 - Other Borrowings and Unused Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Wholesale structured repurchase agreements | |
Notes Tables | |
Schedule of unused line of credit | 2022 2021 (dollars in thousands) Secured $ 30,990 $ 61,657 Unsecured 470,800 456,000 $ 501,790 $ 517,657 |
Note 12 - Subordinated Notes (T
Note 12 - Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Notes | |
Summary of subordinated notes | Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of December 31, 2022 as of December 31, 2022 as of December 31, 2021 as of December 31, 2021 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ 50,000 5.125 % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 2/15/2029 Subordinated debenture dated 7/29/20* 20,000 5.250 % N/A N/A 9/30/2030 Subordinated debenture dated 8/18/22 55,000 5.950 % N/A N/A 9/1/2037 Subordinated debenture dated 8/18/22 45,000 5.500 % N/A N/A 9/1/2032 Debt issuance costs (2,338) (1,150) Total Subordinated Debentures $ 232,662 $ 113,850 *Assumed in acquisition of GFED |
Note 13 - Junior Subordinated_2
Note 13 - Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Summary of junior subordinated debentures | 2022 2021 (dollars in thousands) Note Payable to QCR Holdings Capital Trust II $ 10,310 $ 10,310 Note Payable to QCR Holdings Capital Trust III 8,248 8,248 Note Payable to QCR Holdings Capital Trust V 10,310 10,310 Note Payable to Community National Trust II* 3,093 3,093 Note Payable to Community National Trust III* 3,609 3,609 Note Payable to Guaranty Bankshares Statutory Trust I** 4,640 4,640 Note Payable to Guaranty Statutory Trust II*** 10,310 N/A Market Value Discount per ASC 805**** (1,918) (2,055) $ 48,602 $ 38,155 * As part of the acquisition of Community National in 2013, the Company assumed two junior subordinated debentures with a total fair value of $4.2 million. ** As part of the acquisition of Guaranty Bank in 2017, the Company assumed one junior subordinated debenture with a fair value of $3.9 million. *** As part of the acquisition of GFED in 2022, the Company assumed one junior subordinated debenture with a fair value of $10.3 million. **** Market value discount includes discount on junior subordinated debt acquired as described in * and **. |
Schedule of Company's non-consolidated subsidiaries formed for the issuance of trust preferred securities | Amount Amount Outstanding Outstanding December 31, December 31, Interest Rate as of Interest Rate as of Name Date Issued 2022 2021 Interest Rate December 31, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II* February 2004 $ 10,310 $ 10,310 2.85% over 3-month LIBOR 6.52 % 3.07 % QCR Holdings Statutory Trust III February 2004 8,248 8,248 2.85% over 3-month LIBOR 6.52 % 3.07 % QCR Holdings Statutory Trust V February 2006 10,310 10,310 1.55% over 3-month LIBOR 5.63 % 1.67 % Community National Statutory Trust II September 2004 3,093 3,093 2.17% over 3-month LIBOR 6.92 % 2.38 % Community National Statutory Trust III March 2007 3,609 3,609 1.75% over 3-month LIBOR 6.52 % 1.95 % Guaranty Bankshares Statutory Trust I May 2005 4,640 4,640 1.75% over 3-month LIBOR 6.52 % 1.95 % Guaranty Statutory Trust II December 2005 10,310 N/A 1.45% over 3-month LIBOR 6.14 % N/A % $ 50,520 $ 40,210 Weighted Average Rate 6.29 % 2.43 % * Original amount issued for QCR Holdings Statutory Trust II was $12,372,000. |
Note 14 - Federal and State I_2
Note 14 - Federal and State Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Federal and state income tax expense | 2022 2021 2020 (dollars in thousands) Current $ 19,165 $ 7,290 $ 27,237 Deferred (4,682) 15,272 (14,530) $ 14,483 $ 22,562 $ 12,707 |
Reconciliation of the expected federal income tax expense | Year Ended December 31, 2022 2021 2020 % of % of % of Pretax Pretax Pretax Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 23,845 21.0 % $ 25,508 21.0 % $ 15,391 21.0 % Tax exempt income, net (10,689) (9.4) (7,537) (6.2) (5,943) (8.1) Bank-owned life insurance (432) (0.4) (386) (0.3) (308) (0.4) State income taxes, net of federal benefit, current year 4,482 3.9 5,089 4.2 3,622 4.9 Change in unrecognized tax benefits 498 0.4 578 0.5 546 0.7 Goodwill impairment — — — — 105 0.1 Provision adjustment from accounting method change (1,181) (1.0) — — — — Tax credits (1,362) (1.2) 34 — (456) (0.6) Acquisition costs 276 0.2 95 0.1 — — Excess tax benefit on stock options exercised and restricted stock awards vested (503) (0.4) (436) (0.4) (242) (0.3) Re-measurement of deferred tax asset to incorporate newly enacted tax rates — — — — 207 0.3 Other (451) (0.4) (383) (0.3) (215) (0.3) Federal and state income tax expense $ 14,483 12.7 % $ 22,562 18.6 % $ 12,707 17.3 % |
Schedule of Unrecognized tax benefits | 2022 2021 (dollars in thousands) Balance, beginning $ 2,182 $ 1,893 Impact of tax positions taken during current year 758 1,326 Gross increase (decrease) related to tax positions of prior years 75 (646) Reduction as a result of a lapse of the applicable statute of limitations (335) (391) Balance, ending $ 2,680 $ 2,182 |
Schedule of Deferred Tax Assets and Liabilities | 2022 2021 (dollars in thousands) Deferred tax assets: Historic tax credits $ 68 $ 68 Low income housing tax credits 226 — Net unrealized losses on securities available for sale and derivative instruments 21,319 — Compensation 13,413 11,912 Loan/lease losses 20,466 19,023 Net operating loss carryforwards, federal and state 1,262 1,354 Other — 17 56,754 32,374 Deferred tax liabilities: Net unrealized gains on securities available for sale and derivative instruments — 747 Premises and equipment 6,271 6,099 Equipment financing leases 2,484 6,462 Acquisition fair value adjustments 3,816 3,269 Investment accretion 27 27 Deferred loan origination fees, net 1,624 1,403 Other 2,094 677 16,316 18,684 Net deferred tax assets $ 40,438 $ 13,690 |
Change in deferred income taxes | 2022 2021 2020 (dollars in thousands) Provision for income taxes $ (4,682) $ 15,272 $ (14,530) Net deferred tax assets resulting from sale of other subsidiary — — 363 Statement of stockholders' equity- Other comprehensive income (loss) (22,066) (122) 837 $ (26,748) $ 15,150 $ (13,330) |
Note 15 - Employee Benefit Pl_2
Note 15 - Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of matching contributions | 2022 2021 2020 (dollars in thousands) Matching contribution $ 3,071 $ 2,446 $ 2,520 |
Schedule of Change in compensation agreements | 2022 2021 2020 (dollars in thousands) Balance, beginning $ 32,353 $ 24,713 $ 19,474 Employee deferrals 3,615 4,900 3,959 Company match and interest 2,776 3,048 2,628 Cash payments made (489) (308) (1,348) Balance, ending $ 38,255 $ 32,353 $ 24,713 |
Supplemental Executive Retirement Plans [Member] | |
Notes Tables | |
Schedule of Change in compensation agreements | 2022 2021 2020 (dollars in thousands) Balance, beginning $ 7,273 $ 6,189 $ 5,160 Expense accrued 1,286 1,532 1,193 Cash payments made (394) (448) (164) Balance, ending $ 8,165 $ 7,273 $ 6,189 |
Note 16 - Stock-based Compens_2
Note 16 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Stock-based compensation expense | 2022 2021 2020 (dollars in thousands) Stock options $ 246 $ 270 $ 297 Restricted stock awards 1,967 1,864 1,619 Stock purchase plan 225 218 234 $ 2,438 $ 2,352 $ 2,150 |
Summary of the stock option plans | December 31, 2022 2021 2020 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning 367,998 $ 24.46 407,763 $ 22.24 426,913 $ 20.14 Granted 22,400 53.87 22,150 43.61 23,350 39.12 Exercised (41,695) 14.07 (60,317) 15.76 (41,650) 10.67 Forfeited (2,025) 26.72 (1,598) 38.50 (850) 19.94 Outstanding, ending 346,678 27.60 367,998 24.46 407,763 22.24 Exercisable, ending 295,077 318,266 354,899 Weighted average fair value per option granted $ 13.97 $ 10.85 $ 10.07 |
Summary of options outstanding | Options Outstanding Weighted Options Exercisable Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life Price Exercisable Price $15.50 to $15.65 57,616 0.25 $ 15.64 57,616 $ 15.64 $17.10 to $18.00 108,890 1.57 17.32 108,890 17.32 $22.64 to $22.64 53,316 3.08 22.64 53,316 22.64 $36.00 to $41.95 36,773 6.67 38.30 23,060 38.06 $42.65 to $48.50 67,908 5.63 43.76 51,995 43.80 $53.87 to $56.26 22,175 9.17 53.89 200 53.87 346,678 295,077 |
Summary of changes in nonvested restricted stock awards | December 31, 2022 2021 2020 Outstanding, beginning 97,107 102,489 106,826 Granted* 35,525 38,360 34,559 Released (47,766) (43,691) (37,296) Forfeited (751) (51) (1,600) Outstanding, ending 84,115 97,107 102,489 Weighted average fair value per share granted $ 54.20 $ 45.18 $ 39.39 * At December 31, 2021, includes |
Schedule of Stock purchase plan | 2022 2021 2020 Shares granted 28,421 28,396 38,738 Shares purchased 27,103 30,543 37,114 Weighted average fair value per share granted $ 7.88 $ 7.67 $ 6.03 |
Note 17 - Regulatory Capital _2
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 ( dollars in thousands) As of December 31, 2022: Company: Total risk-based capital $ 1,055,177 14.28 % $ 591,132 > 8.00 % $ 775,861 > 10.50 % $ 738,915 > 10.00 % Tier 1 risk-based capital 734,977 9.95 443,349 > 6.00 628,078 > 8.50 591,132 > 8.00 Tier 1 leverage 734,977 9.61 305,959 > 4.00 305,959 > 4.00 382,449 > 5.00 Common equity Tier 1 686,375 9.29 332,512 > 4.50 517,241 > 7.00 480,295 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 275,337 13.07 % $ 168,588 > 8.00 % $ 221,272 > 10.50 % $ 210,735 > 10.00 % Tier 1 risk-based capital 248,978 11.81 126,441 > 6.00 179,125 > 8.50 168,588 > 8.00 Tier 1 leverage 248,978 11.01 90,419 > 4.00 90,419 > 4.00 133,023 > 5.00 Common equity Tier 1 248,978 11.81 94,831 > 4.50 147,514 > 7.00 136,978 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 308,153 14.84 % $ 166,168 > 8.00 % $ 218,096 > 10.50 % $ 207,711 > 10.00 % Tier 1 risk-based capital 282,258 13.59 124,626 > 6.00 176,554 > 8.50 166,168 > 8.00 Tier 1 leverage 282,258 13.17 85,707 > 4.00 85,707 > 4.00 107,134 > 5.00 Common equity Tier 1 282,258 13.59 93,470 > 4.50 145,397 > 7.00 135,012 > 6.50 Community State Bank: Total risk-based capital $ 142,974 12.04 % $ 94,981 > 8.00 % $ 124,662 > 10.50 % $ 118,726 > 10.00 % Tier 1 risk-based capital 128,130 10.79 71,236 > 6.00 100,917 > 8.50 94,981 > 8.00 Tier 1 leverage 128,130 10.09 50,799 > 4.00 50,799 > 4.00 63,499 > 5.00 Common equity Tier 1 128,130 10.79 53,427 > 4.50 83,108 > 7.00 77,172 > 6.50 Guaranty Bank: Total risk-based capital $ 243,106 12.24 % $ 158,903 > 8.00 % $ 208,560 > 10.50 % $ 198,629 > 10.00 % Tier 1 risk-based capital 218,647 11.01 119,177 > 6.00 168,834 > 8.50 158,903 > 8.00 Tier 1 leverage 218,647 10.90 80,229 > 4.00 80,229 > 4.00 100,286 > 5.00 Common equity Tier 1 218,647 11.01 89,383 > 4.50 139,040 > 7.00 129,109 > 6.50 Note 17. Regulatory Capital Requirements and Restrictions on Dividends (continued) 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 ( dollars in thousands) As of December 31, 2021: Company: Total risk-based capital $ 814,629 14.77 % $ 441,100 > 8.00 % $ 578,944 > 10.50 % $ 551,375 > 10.00 % Tier 1 risk-based capital 631,649 11.46 330,825 > 6.00 468,669 > 8.50 441,100 > 8.00 Tier 1 leverage 631,649 10.46 241,579 > 4.00 241,579 > 4.00 301,974 > 5.00 Common equity Tier 1 593,494 10.76 248,119 > 4.50 385,962 > 7.00 358,394 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 247,658 13.29 % $ 149,126 > 8.00 % $ 195,727 > 10.50 % $ 186,407 > 10.00 % Tier 1 risk-based capital 224,253 12.03 111,844 > 6.00 158,446 > 8.50 149,126 > 8.00 Tier 1 leverage 224,253 10.45 85,873 > 4.00 85,873 > 4.00 107,341 > 5.00 Common equity Tier 1 224,253 12.03 83,883 > 4.50 130,485 > 7.00 121,164 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 277,673 14.85 % $ 149,595 > 8.00 % $ 196,343 > 10.50 % $ 186,993 > 10.00 % Tier 1 risk-based capital 254,279 13.60 112,196 > 6.00 158,944 > 8.50 149,595 > 8.00 Tier 1 leverage 254,279 12.59 80,777 > 4.00 80,777 > 4.00 100,971 > 5.00 Common equity Tier 1 254,279 13.60 84,147 > 4.50 130,895 > 7.00 121,546 > 6.50 Community State Bank: Total risk-based capital $ 123,365 11.95 % $ 82,601 > 8.00 % $ 108,413 > 10.50 % $ 103,251 > 10.00 % Tier 1 risk-based capital 110,410 10.69 61,951 > 6.00 87,763 > 8.50 82,601 > 8.00 Tier 1 leverage 110,410 9.67 45,676 > 4.00 45,676 > 4.00 57,095 > 5.00 Common equity Tier 1 110,410 10.69 46,463 > 4.50 72,276 > 7.00 67,113 > 6.50 Guaranty Bank: Total risk-based capital $ 101,067 13.39 % $ 60,369 > 8.00 % $ 79,235 > 10.50 % $ 75,462 > 10.00 % Tier 1 risk-based capital 91,625 12.14 45,277 > 6.00 64,142 > 8.50 60,369 > 8.00 Tier 1 leverage 91,625 11.08 33,088 > 4.00 33,088 > 4.00 41,360 > 5.00 Common equity Tier 1 91,625 12.14 33,958 > 4.50 52,823 > 7.00 49,050 > 6.50 |
Note 18 - Earnings Per Share (T
Note 18 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2022 2021 2020 (dollars in thousands, except per share data) Net income $ 99,066 $ 98,905 $ 60,582 Basic EPS $ 5.94 $ 6.30 $ 3.84 Diluted EPS $ 5.87 $ 6.20 $ 3.80 Weighted average common shares outstanding 16,681,844 15,708,744 15,771,650 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan* 208,163 235,964 180,987 Weighted average common and common equivalent shares outstanding 16,890,007 15,944,708 15,952,637 , . |
Note 20 - Parent Company Only_2
Note 20 - Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Condensed Balance Sheet | 2022 2021 (dollars in thousands) Assets Cash and due from banks $ 84,172 $ 41,531 Interest-bearing deposits at financial institutions — 5,750 Investment in bank subsidiaries 965,973 769,628 Investment in nonbank subsidiaries 7,196 5,341 Premises and equipment, net 9,639 8,632 Other assets 10,157 7,716 Total assets $ 1,077,137 $ 838,598 Liabilities and Stockholders' Equity Liabilities: Subordinated notes $ 232,662 $ 113,850 Junior subordinated debentures 48,602 38,155 Other liabilities 23,149 9,583 Total liabilities 304,413 161,588 Stockholders' Equity: Common stock 16,796 15,613 Additional paid-in capital 370,712 273,768 Retained earnings 450,114 386,077 Accumulated other comprehensive income (loss) (64,898) 1,552 Total stockholders' equity 772,724 677,010 Total liabilities and stockholders' equity $ 1,077,137 $ 838,598 |
Condensed Income Statement | 2022 2021 2020 (dollars in thousands) Total interest income $ 26 $ 3 $ 29 Equity in net income of bank subsidiaries 128,941 117,408 79,624 Equity in net income (loss) of nonbank subsidiaries 1,294 456 (261) Other (53) 853 289 Total income 130,208 118,720 79,681 Interest expense 11,836 8,482 6,662 Salaries and employee benefits 15,551 12,446 11,825 Professional fees 1,789 1,983 2,558 Acquisition costs 3,715 624 — Post-acquisition compensation, transition and integration costs 5,526 — 145 Disposition costs — 13 312 Goodwill impairment — — 500 Other 3,331 2,784 2,505 Total expenses 41,748 26,332 24,507 Income before income tax benefit 88,460 92,388 55,174 Income tax benefit 10,606 6,517 5,408 Net income $ 99,066 $ 98,905 $ 60,582 |
Condensed Cash flow Statement | 2022 2021 2020 (dollars in thousands) Cash Flows from Operating Activities: Net income $ 99,066 $ 98,905 $ 60,582 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings of bank subsidiaries (128,941) (117,408) (79,624) (Earnings) losses of nonbank subsidiaries (1,294) (456) 261 Distributions from bank subsidiaries 36,000 — — Distributions from nonbank subsidiaries 40 30 40 Deferred income taxes (2,443) (1,093) 6,909 Accretion of acquisition fair value adjustments 137 321 378 Depreciation 477 486 454 Deferred compensation expense accrued 4,062 573 — Stock-based compensation expense 2,438 2,352 2,150 Loss on sale of subsidiary — — 158 Gain on sale of fixed assets — 155 — Goodwill impairment — — 500 Decrease (increase) in other assets 621 5 (7,380) Increase (decrease) in other liabilities 10,827 (14,702) (5,923) Net cash provided by (used in) operating activities 20,990 (30,832) (21,495) Cash Flows from Investing Activities: Net increase (decrease) in interest-bearing deposits at financial institutions 5,950 1,450 (1,599) Capital infusion, non-bank subsidiaries (300) (375) — Net cash received in dissolution of subsidiary — — 8,450 Net cash paid for acquisitions (26,039) — — Net cash received in sale of subsidiary — — 195 Purchase of premises and equipment (1,484) (31) (272) Net cash provided by (used in) investing activities (21,873) 1,044 6,774 Cash Flows from Financing Activities: Proceeds from subordinated notes 100,000 — 50,000 Payment of cash dividends (3,944) (3,793) (3,779) Proceeds from issuance of common stock, net 422 670 1,360 Repurchase and cancellation of shares (52,954) (14,168) (3,779) Net cash provided by (used in) financing activities 43,524 (17,291) 43,802 Net increase (decrease) in cash and due from banks 42,641 (47,079) 29,081 Cash and due from banks: Beginning 41,531 88,610 59,529 Ending $ 84,172 $ 41,531 $ 88,610 |
Note 21 - Fair Value (Tables)
Note 21 - Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) December 31, 2022: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,981 $ — $ 16,981 $ — Residential mortgage-backed and related securities 66,215 — 66,215 — Municipal securities 193,178 — 193,178 — Asset-backed securities 18,728 — 18,728 — Other securities 45,858 — 45,858 — Derivatives 177,631 — 177,631 — Total assets measured at fair value $ 518,591 $ — $ 518,591 $ — Derivatives $ 200,701 $ — $ 200,701 $ — Total liabilities measured at fair value $ 200,701 $ — $ 200,701 $ — December 31, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 23,328 $ — $ 23,328 $ — Residential mortgage-backed and related securities 94,323 — 94,323 — Municipal securities 168,266 — 168,266 — Asset-backed securities 27,124 — 27,124 — Other securities 24,789 — 24,789 — Derivatives 222,220 — 222,220 — Total assets measured at fair value $ 560,050 $ — $ 560,050 $ — Derivatives $ 225,135 $ — $ 225,135 $ — Total liabilities measured at fair value $ 225,135 $ — $ 225,135 $ — 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) December 31, 2022: Loans/leases evaluated individually $ 30,765 $ — $ — $ 30,765 OREO 144 — — 144 $ 30,909 $ — $ — $ 30,909 December 31, 2021: Loans/leases evaluated individually $ 6,618 $ — $ — $ 6,618 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value December 31, December 31, 2022 2021 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 30,765 $ 6,618 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 144 — Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % |
Schedule of assets and liabilities measured at fair value | Fair Value As of December 31, 2022 As of December 31, 2021 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 59,723 $ 59,723 $ 37,490 $ 37,490 Federal funds sold Level 2 56,910 56,910 12,370 12,370 Interest-bearing deposits at financial institutions Level 2 67,360 67,360 75,292 75,292 Investment securities: HTM Level 2 587,142 535,636 472,385 522,297 AFS Level 2 340,960 340,960 337,830 337,830 Loans/leases receivable, net Level 3 28,486 30,765 6,128 6,618 Loans/leases receivable, net Level 2 6,022,679 5,896,443 4,595,283 4,478,899 Derivatives Level 2 177,631 177,631 222,220 222,220 Deposits: Nonmaturity deposits Level 2 5,199,633 5,199,633 4,501,424 4,501,424 Time deposits Level 2 784,584 766,294 421,348 419,453 Short-term borrowings Level 2 129,630 129,630 3,800 3,800 FHLB advances Level 2 415,000 415,000 15,000 15,000 Subordinated notes Level 2 232,662 250,613 113,850 116,203 Junior subordinated debentures Level 2 48,602 41,545 38,155 31,072 Derivatives Level 2 200,701 200,701 225,135 225,135 |
Note 22 - Business Segment In_2
Note 22 - Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB* All other Eliminations Total (dollars in thousands) Year Ended December 31, 2022 Total revenue $ 103,621 $ 128,070 $ 54,129 $ 87,880 $ 131,922 $ (132,322) $ 373,300 Net interest income 71,604 65,392 40,781 63,734 (11,779) 1,388 231,120 Provision for loan/lease losses 1,073 (961) (1,335) 9,507 — — 8,284 Net income (loss) from continuing operations 33,850 53,576 17,225 24,289 100,303 (130,177) 99,066 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,225 2,027 13,507 — — 16,759 Total assets 2,312,013 2,185,500 1,297,812 2,146,474 1,086,351 (1,079,313) 7,948,837 Year Ended December 31, 2021 Total revenue $ 88,689 $ 129,080 $ 43,945 $ 38,342 $ 119,451 $ (118,930) $ 300,577 Net interest income 66,232 57,354 35,512 26,351 (8,479) 1,263 178,233 Provision for loan/lease losses 1,519 (697) 2,219 445 — — 3,486 Net income (loss) from continuing operations 34,616 55,411 12,802 14,579 99,331 (117,834) 98,905 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,702 2,653 4,994 — — 9,349 Total assets 2,142,344 2,030,279 1,168,606 882,885 845,120 (973,102) 6,096,132 Year Ended December 31, 2020 Total revenue $ 92,336 $ 125,416 $ 50,448 $ 42,036 $ 2,197 $ (262) $ 312,171 Net interest income 63,366 52,857 31,570 24,759 (6,633) 1,031 166,950 Provision for loan/lease losses 21,612 19,438 9,243 5,411 — — 55,704 Net income (loss) from continuing operations 21,557 33,890 11,379 12,797 (19,041) — 60,582 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 2,189 3,305 5,887 — — 11,381 Total assets 2,153,773 1,957,695 1,004,183 779,956 134,407 (324,971) 5,705,043 * On April 1, 2022, the Company acquired GFED and merged its subsidiary bank, Guaranty Bank, into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name. |
Note 1 - Nature of Business a_4
Note 1 - Nature of Business and Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2022 USD ($) | Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) subsidiary segment shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Jan. 01, 2021 USD ($) | |
Accrued interest on loans | $ 24,300,000 | $ 15,300,000 | |||||
Number of subsidiaries commercial banks | subsidiary | 4 | ||||||
Number of portfolio segments | segment | 8 | ||||||
Financing Receivable, Lines of Credit Maximum Term | 1 year | ||||||
Number of Non-Consolidated Subsidiaries Issuing Trust Preferred Securities | subsidiary | 7 | ||||||
Cash Reserve Deposit Required and Made | $ 0 | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 295,077 | 318,266 | 354,899 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 7,700,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 7,500,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 387,000 | $ 419,000 | $ 270,000 | ||||
Allocated Share-based Compensation Expense | 2,438,000 | 2,352,000 | 2,150,000 | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | 500,000 | |||
Minimum outstanding balance considered for calculation of low quality loans allowance on case-to-case basis | 250,000 | ||||||
Maximum principal balance considered for placing low quality loans in the unique pool | 250,000 | ||||||
Other Assets | |||||||
Accrued interest on loans | 24,300,000 | ||||||
Subsidiary banks with an asset size of $1.0 billion or less | |||||||
Lending Threshold Requiring Additional Loan Review | 1,000,000 | ||||||
Subsidiary banks with an asset size of over $1.0 billion | |||||||
Lending Threshold Requiring Additional Loan Review | 2,000,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Off-Balance Sheet, Credit Loss, Liability | $ 9,117,000 | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Off-Balance Sheet, Credit Loss, Liability | $ 9,100,000 | ||||||
Employee Stock Option | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 438,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 14 days | ||||||
Allocated Share-based Compensation Expense | $ 246,000 | 270,000 | 297,000 | ||||
In The Money Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 324,503 | ||||||
Restricted Stock | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,700,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | ||||||
Allocated Share-based Compensation Expense | $ 1,967,000 | $ 1,864,000 | $ 1,619,000 | ||||
Subsidiaries [Member] | Fixed Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 15 years | ||||||
Commercial Portfolio Segment [Member] | |||||||
Financing Receivable, Term Loans, Generally Maximum Term | 7 years | ||||||
Minimum | |||||||
Financing Receivable, Lines of Credit Maximum Term | 6 months | ||||||
Residual Value Percent of Cost | 3% | ||||||
Minimum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 1 year | ||||||
Minimum | Commercial Portfolio Segment [Member] | Term Loan [Member] | |||||||
Financing receivable, term | 3 years | ||||||
Maximum | |||||||
Permanent loans term | 20 years | ||||||
Financing Receivable, Credit Weaknesses Borrowers, Term | 365 days | ||||||
Financing Receivable, Lines of Credit Maximum Term | 1 year | ||||||
Residual Value Percent of Cost | 25% | ||||||
Maximum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | |||||||
Financing receivable, term | 5 years | ||||||
Maximum | Commercial Portfolio Segment [Member] | Term Loan [Member] | |||||||
Financing receivable, term | 5 years | ||||||
Core Deposits [Member] | |||||||
Estimated useful life | 10 years | ||||||
Customer Lists [Member] | |||||||
Estimated useful life | 15 years |
Note 1 - Nature of Business a_5
Note 1 - Nature of Business and Significant Accounting Policies - Option Pricing Model Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expected life of option grants (Year) | 10 years | ||
Weighted-average grant date fair value (in dollars per share) | $ 13.97 | $ 10.85 | $ 10.07 |
Employee Stock Option | |||
Dividend yield | 0.55% | ||
Expected volatility | 23.57% | ||
Risk-free interest rate | 1.62% | ||
Expected life of option grants (Year) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted-average grant date fair value (in dollars per share) | $ 10.85 | $ 10.07 | |
Employee Stock Option | Minimum | |||
Dividend yield | 0.60% | ||
Expected volatility | 22.65% | 25.49% | |
Risk-free interest rate | 1.87% | 0.79% | |
Employee Stock Option | Maximum | |||
Dividend yield | 0.45% | 0.81% | |
Expected volatility | 23.52% | 25.70% | |
Risk-free interest rate | 3.12% | 1.31% | |
Stock Purchase Grants [Member] | |||
Weighted-average grant date fair value (in dollars per share) | $ 7.88 | $ 7.67 | $ 6.03 |
Stock Purchase Grants [Member] | Minimum | |||
Dividend yield | 0.43% | 0.49% | 0.55% |
Expected volatility | 17.97% | 37.51% | 24.59% |
Risk-free interest rate | 0.14% | 0% | 0.15% |
Expected life of option grants (Year) | 3 months | 3 months | 3 months |
Weighted-average grant date fair value (in dollars per share) | $ 13.94 | ||
Stock Purchase Grants [Member] | Maximum | |||
Dividend yield | 0.44% | 0.61% | 0.81% |
Expected volatility | 21.16% | 38.65% | 36.38% |
Risk-free interest rate | 2.24% | 0.06% | 1.65% |
Expected life of option grants (Year) | 6 months | 6 months | 6 months |
Weighted-average grant date fair value (in dollars per share) | $ 15.09 |
Note 1 - Nature of Business a_6
Note 1 - Nature of Business and Significant Accounting Policies - Impact of ASU 2016-13 (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 180 | $ 198 | |||
Less allowance for estimated losses on loans/leases | 87,706 | 78,721 | $ 84,376 | $ 84,376 | $ 36,001 |
Retained earnings | 450,114 | 386,077 | |||
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 | ||||
Accounting Standards Update 2016-13 | |||||
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) | ||||
Accounting Standards Update 2016-13 | 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 | 8,100 | ||||
Off-Balance Sheet, Credit Loss, Liability | 9,100 | ||||
Retained earnings | 937 | ||||
Commercial Portfolio Segment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less allowance for estimated losses on loans/leases | 35,421 | 35,421 | 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 Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||
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 | 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) | ||||
Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||
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 | 14,262 | ||||
Multi-family | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less allowance for estimated losses on loans/leases | 13,186 | 9,339 | |||
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 | ||||
Multi-family | Accounting Standards Update 2016-13 | |||||
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 | 970 | 1,546 | 1,764 | 1,764 | 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) | ||||
Direct financing leases | Accounting Standards Update 2016-13 | |||||
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 | 4,963 | 4,541 | |||
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 | ||||
1-4 family real estate | Accounting Standards Update 2016-13 | |||||
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 | 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) | ||||
Residential real estate | Accounting Standards Update 2016-13 | |||||
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 | 1,371 | 930 | 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) | ||||
Consumer | Accounting Standards Update 2016-13 | |||||
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 | 1,298 | $ 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 | 4,457 | 3,907 | |||
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 - revolving | Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||
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 | 27,753 | 25,982 | |||
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 | Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||
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 | 1,500 | 1,800 | |||
C&I - other | Direct financing leases | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less allowance for estimated losses on loans/leases | 1,500 | $ 685 | |||
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 | 11,749 | 8,549 | |||
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 | ||||
CRE - non owner occupied | Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||||
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 | $ 14,262 | 16,972 | |||
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 | ||||
Construction Loans [Member] | Construction and Land Development [Member] | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less allowance for estimated losses on loans/leases | $ 11,999 |
Note 2 - Mergers_Acquisitions_3
Note 2 - Mergers/Acquisitions/Sales (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Apr. 01, 2022 USD ($) item $ / shares shares | Mar. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 144,085 | ||||
Prepaid of FHLB advances | 16,000 | $ 55,274 | |||
Business acquisition related costs | 3,715 | $ 624 | |||
Premises and equipment, net | 16,257 | ||||
Proceeds from sales of securities | 111,375 | $ 23,874 | $ 38,562 | ||
Core deposit intangible | 10,264 | ||||
Guaranty Federal Bancshares, Inc | |||||
Business Acquisition [Line Items] | |||||
Business combination consideration in cash (per share) | $ / shares | $ 30.50 | ||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 0.58775 | ||||
Business combination mixed consideration in cash (per share) | $ / shares | $ 6.10 | ||||
Business combination shares issuable mixed consideration | shares | 0.4702 | ||||
Business acquisition, share price | $ / shares | $ 56.59 | ||||
Business combination, stock consideration | $ 117,200 | ||||
Business Combination, Consideration Transferred | $ 144,085 | $ 26,900 | |||
Prepaid of FHLB advances | 16,000 | ||||
Business acquisition related costs | 3,700 | ||||
Post-acquisition, compensation, transition and integration costs | $ 5,500 | ||||
Premises and equipment, net | 16,257 | ||||
Accretable discount of non-PCD loans | 12,000 | ||||
Provision for non-PCD loans acquired. | 11,000 | ||||
Proceeds from sales of securities | $ 111,400 | ||||
Number of branch locations acquired | item | 16 | ||||
Useful life | 39 years | ||||
Core deposit intangible | $ 10,264 | ||||
Estimated useful life of deposits | 10 years |
Note 2 - Mergers_Acquisitions_4
Note 2 - Mergers/Acquisitions/Sales - Fair value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
ASSETS | |||
Cash and due from banks | $ 171,844 | ||
Interest-bearing deposits at financial institutions | 17,134 | ||
Securities | 143,017 | ||
Loans/leases receivable, net | 801,697 | ||
Bank-owned life insurance | 32,100 | ||
Premises and equipment | 16,257 | ||
Restricted investment securities | 2,220 | ||
Other real estate owned | 55 | ||
Intangibles | 10,264 | ||
Other assets | 23,685 | ||
Total assets acquired | 1,218,273 | ||
LIABILITIES | |||
Deposits | 1,076,573 | ||
FHLB advances | 16,000 | ||
Junior subordinated debentures | 10,310 | ||
Other liabilities | 15,225 | ||
Total liabilities assumed | 1,137,729 | ||
Net assets acquired | 80,544 | ||
Consideration paid: | |||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | ||
Goodwill | $ 63,541 | ||
Guaranty Federal Bancshares, Inc | |||
ASSETS | |||
Cash and due from banks | $ 171,844 | ||
Interest-bearing deposits at financial institutions | 17,134 | ||
Securities | 143,017 | ||
Loans/leases receivable, net | 801,697 | ||
Bank-owned life insurance | 32,100 | ||
Premises and equipment | 16,257 | ||
Restricted investment securities | 2,220 | ||
Other real estate owned | 55 | ||
Intangibles | 10,264 | ||
Other assets | 23,685 | ||
Total assets acquired | 1,218,273 | ||
LIABILITIES | |||
Deposits | 1,076,573 | ||
FHLB advances | 16,000 | ||
Subordinated notes | 19,621 | ||
Junior subordinated debentures | 10,310 | ||
Other liabilities | 15,225 | ||
Total liabilities assumed | 1,137,729 | ||
Net assets acquired | 80,544 | ||
Consideration paid: | |||
Cash paid | 26,871 | ||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | $ 26,900 | |
Goodwill | $ 63,541 |
Note 2 - Mergers_Acquisitions_5
Note 2 - Mergers/Acquisitions/Sales - Purchased Loans (Details) - Guaranty Bank $ in Thousands | Apr. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Principal balance of PCD loans at acquisition | $ 38,711 |
Allowance for credit losses at acquisition | (5,902) |
Non-credit discount at acquisition | (1,366) |
Fair value of PCD loans at acquisition | $ 31,443 |
Note 2 - Mergers_Acquisitions_6
Note 2 - Mergers/Acquisitions/Sales - FHLB Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Apr. 01, 2022 |
Business Acquisition [Line Items] | ||
FHLB advances | $ 16,000 | |
Subordinated debentures | $ 19,621 | |
Guaranty Bank | ||
Business Acquisition [Line Items] | ||
Total Fair value of FHLB and other borrowings assumed | $ 45,931 | |
Guaranty Bank | FHLB advance maturing on 15 May 2023 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 6,500 | |
Rate (as a percent) | 0.59% | |
Guaranty Bank | FHLB advance maturing on 15 May 2025 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 6,500 | |
Rate (as a percent) | 0.82% | |
Guaranty Bank | FHLB advance maturing on 17 May 2027 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 3,000 | |
Rate (as a percent) | 1.12% | |
Guaranty Bank | Subordinated debenture maturing on 30 September 2030 | Unsecured | ||
Business Acquisition [Line Items] | ||
Subordinated notes | $ 19,621 | |
Rate (as a percent) | 5.25% | |
Guaranty Bank | Junior subordinated debentures maturing on 23 February 2036 | Unsecured | ||
Business Acquisition [Line Items] | ||
Subordinated debentures | $ 10,310 | |
Rate (as a percent) | 4.09% |
Note 2 - Mergers_Acquisitions_7
Note 2 - Mergers/Acquisitions/Sales - Unaudited Pro Forma Combined Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unaudited pro forma combined operating results | ||
Net interest income | $ 242,161 | $ 222,839 |
Noninterest income | 82,966 | 114,095 |
Net income | $ 119,899 | $ 99,606 |
Earnings per common share - Basic | $ 6.97 | $ 5.60 |
Earnings per common share - Diluted | $ 6.89 | $ 5.53 |
Note 2 - Sales-Mergers-Acquisit
Note 2 - Sales-Mergers-Acquisitions - Sale of Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 12, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and due from banks | $ 349 | ||
Premises and equipment, net | 19 | ||
Other assets | 2,259 | ||
Total assets sold | 2,627 | ||
LIABILITIES | |||
Other liabilities | 946 | ||
Total liabilities sold | 946 | ||
Forgiveness of earn-out consideration | 880 | ||
Consideration received | 448 | ||
Assets held for sale | 2,627 | ||
Liabilities held for sale | 946 | ||
Disposition costs | $ 13 | 690 | |
Bates Companies | |||
ASSETS | |||
Cash and due from banks | $ 349 | ||
Premises and equipment, net | 19 | ||
Other assets | 2,259 | ||
Total assets sold | 2,627 | ||
LIABILITIES | |||
Other liabilities | 946 | ||
Total liabilities sold | 946 | ||
Net assets sold | 1,681 | ||
Forgiveness of earn-out consideration | 880 | ||
Cash consideration | 195 | ||
Note receivable consideration | 448 | ||
Consideration received | 500 | ||
Imputed interest | 52 | ||
Gain (loss) on sale of assets and liabilities of subsidiary | 158 | ||
Assets held for sale | 2,627 | ||
Liabilities held for sale | 946 | ||
Disposition costs | $ 227 | ||
Bates Companies | Earnout Agreement Cancellation [Member] | |||
LIABILITIES | |||
Consideration received | $ 880 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item security | Dec. 31, 2020 USD ($) | Dec. 31, 2021 USD ($) item | |
Sale of securities portfolio | $ | $ 111,400 | ||
Number of securities | security | 695 | ||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | security | 607 | ||
Aggregate losses of securities (as a percent) | 11.81% | ||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 39 | ||
Gain on sale | $ | $ 2,553 | ||
Number Of Charters Owning Municipal Securities | 4 | ||
Public deposits, FHLB advances, customer repurchase agreements, derivative liabilities | |||
Investment securities pledged | $ | $ 47,000 | $ 246,500 | |
Revenue Bonds | |||
Number of issuers | 2 | 2 | |
Percentage threshold | 5% | 5% | |
Municipal securities | General Obligation Bonds | |||
Number of issuers | 118 | 113 | |
Other investments | $ | $ 110,600 | $ 114,500 | |
Number of states holding investments | 22 | 20 | |
Municipal securities | General Obligation Bonds | Minimum | |||
Other investments | $ | $ 5,000 | $ 5,000 | |
Municipal securities | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million | |||
Number of states holding investments | 7 | 7 | |
Municipal securities | Revenue Bonds | |||
Number of issuers | 181 | 165 | |
Other investments | $ | $ 617,200 | $ 575,000 | |
Number of states holding investments | 29 | 25 | |
Municipal securities | Revenue Bonds | Minimum | |||
Other investments | $ | $ 5,000 | $ 5,000 | |
Municipal securities | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million | |||
Number of states holding investments | 12 | 13 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities HTM: | ||
Securities HTM, Amortized Cost | $ 587,322 | $ 472,583 |
Securities HTM, Gross Unrealized Gains | 5,292 | 49,715 |
Securities HTM, Gross Unrealized (Losses) | (56,978) | (1) |
Securities HTM, Fair Value | 535,636 | 522,297 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 587,142 | 472,385 |
Allowance for credit losses HTM securities | 180 | 198 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 400,511 | 329,994 |
Securities AFS, Gross Unrealized Gains | 160 | 9,157 |
Securities AFS, Gross Unrealized (Losses) | (59,711) | (1,321) |
Securities AFS, Fair Value | 340,960 | 337,830 |
U.S. treasuries and govt. sponsored agency securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 19,745 | 23,370 |
Securities AFS, Gross Unrealized Gains | 19 | 254 |
Securities AFS, Gross Unrealized (Losses) | (2,783) | (296) |
Securities AFS, Fair Value | 16,981 | 23,328 |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 73,438 | 92,431 |
Securities AFS, Gross Unrealized Gains | 2,672 | |
Securities AFS, Gross Unrealized (Losses) | (7,223) | (780) |
Securities AFS, Fair Value | 66,215 | 94,323 |
Municipal securities. | ||
Securities HTM: | ||
Securities HTM, Amortized Cost | 586,272 | 471,533 |
Securities HTM, Gross Unrealized Gains | 5,292 | 49,715 |
Securities HTM, Gross Unrealized (Losses) | (56,978) | |
Securities HTM, Fair Value | 534,586 | 521,248 |
Allowance for credit losses HTM securities | 180 | 198 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 239,812 | 163,253 |
Securities AFS, Gross Unrealized Gains | 66 | 5,228 |
Securities AFS, Gross Unrealized (Losses) | (46,700) | (215) |
Securities AFS, Fair Value | 193,178 | 168,266 |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 18,885 | 26,372 |
Securities AFS, Gross Unrealized Gains | 48 | 752 |
Securities AFS, Gross Unrealized (Losses) | (205) | |
Securities AFS, Fair Value | 18,728 | 27,124 |
Other securities | ||
Securities HTM: | ||
Securities HTM, Amortized Cost | 1,050 | 1,050 |
Securities HTM, Gross Unrealized (Losses) | (1) | |
Securities HTM, Fair Value | 1,050 | 1,049 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 48,631 | 24,568 |
Securities AFS, Gross Unrealized Gains | 27 | 251 |
Securities AFS, Gross Unrealized (Losses) | (2,800) | (30) |
Securities AFS, Fair Value | $ 45,858 | $ 24,789 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | $ 347,651 | |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (56,978) | |
Securities HTM, Total, Fair Value | 347,651 | |
Securities HTM, Total, Gross Unrealized Losses | (56,978) | |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 280,669 | $ 32,980 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (48,923) | (464) |
Securities AFS, 12 Months or More, Fair Value | 42,212 | 23,442 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (10,788) | (857) |
Securities AFS, Total, Fair Value | 322,881 | 56,422 |
Securities AFS, Total, Gross Unrealized Losses | (59,711) | (1,321) |
Municipal securities. | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 347,651 | |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (56,978) | |
Securities HTM, Total, Fair Value | 347,651 | |
Securities HTM, Total, Gross Unrealized Losses | (56,978) | |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 178,172 | 13,287 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (42,661) | (211) |
Securities AFS, 12 Months or More, Fair Value | 9,809 | 1,001 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (4,039) | (4) |
Securities AFS, Total, Fair Value | 187,981 | 14,288 |
Securities AFS, Total, Gross Unrealized Losses | (46,700) | (215) |
U.S. treasuries and govt. sponsored agency securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 5,138 | 9,802 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (326) | (156) |
Securities AFS, 12 Months or More, Fair Value | 10,591 | 3,035 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (2,457) | (140) |
Securities AFS, Total, Fair Value | 15,729 | 12,837 |
Securities AFS, Total, Gross Unrealized Losses | (2,783) | (296) |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 48,469 | 5,363 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (3,327) | (67) |
Securities AFS, 12 Months or More, Fair Value | 17,690 | 19,406 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (3,896) | (713) |
Securities AFS, Total, Fair Value | 66,159 | 24,769 |
Securities AFS, Total, Gross Unrealized Losses | (7,223) | (780) |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 13,684 | |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (205) | |
Securities AFS, Total, Fair Value | 13,684 | |
Securities AFS, Total, Gross Unrealized Losses | (205) | |
Other securities | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 1,049 | |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (1) | |
Securities HTM, Total, Fair Value | 1,049 | |
Securities HTM, Total, Gross Unrealized Losses | (1) | |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 35,206 | 4,528 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (2,404) | (30) |
Securities AFS, 12 Months or More, Fair Value | 4,122 | |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (396) | |
Securities AFS, Total, Fair Value | 39,328 | 4,528 |
Securities AFS, Total, Gross Unrealized Losses | $ (2,800) | $ (30) |
Note 3 - Investment Securitie_5
Note 3 - Investment Securities - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 198 | |
Provision for credit loss expense | (18) | $ 15 |
Balance, ending | 180 | 198 |
Accounting Standards Update 2016-13 | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 183 | |
Balance, ending | 183 | |
Municipal securities. | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 198 | |
Provision for credit loss expense | (18) | 16 |
Balance, ending | 180 | 198 |
Municipal securities. | Accounting Standards Update 2016-13 | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 182 | |
Balance, ending | 182 | |
Other securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Provision for credit loss expense | (1) | |
Other securities | Accounting Standards Update 2016-13 | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 1 | |
Balance, ending | $ 1 |
Note 3 - Investment Securitie_6
Note 3 - Investment Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Securities | |||
Proceeds from sales of securities | $ 111,375 | $ 23,874 | $ 38,562 |
Gross gains from sales of securities | 2,553 | ||
Gross losses from sales of securities | $ (88) | $ (69) |
Note 3 - Investment Securitie_7
Note 3 - Investment Securities - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities HTM: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 2,902 | |
Securities held to maturity, due in one year or less, fair value | 2,895 | |
Securities held to maturity, due after one year through five years, amortized cost | 18,998 | |
Securities held to maturity, due after one year through five years, fair value | 19,359 | |
Securities held to maturity, due after five years, amortized cost | 565,422 | |
Securities held to maturity, due after five years, fair value | 513,382 | |
Securities held to maturity, amortized cost | 587,322 | |
Securities held to maturity, fair value | 535,636 | $ 522,297 |
Securities AFS: | ||
Securities available for sale, due in one year or less, amortized cost | 4,522 | |
Securities available for sale, Due in one year or less, fair value | 4,510 | |
Securities available for sale, due after one year through five years, amortized cost | 4,159 | |
Securities available for sale, Due after one year through five years, fair value | 4,135 | |
Securities available for sale, due after five years, amortized cost | 299,507 | |
Securities available for sale, due after five years, fair value | 247,372 | |
Securities available for sale, single maturity, amortized cost | 308,188 | |
Securities available for sale, single maturity, fair value | 256,017 | |
Securities AFS, Amortized Cost | 400,511 | 329,994 |
Available-for-sale Securities, Debt Securities, Total | 340,960 | 337,830 |
Securities available for sale, callable, amortized cost | 400,511 | |
Securities available for sale, callable, fair value | 340,960 | |
Callable Securities [Member] | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 283,015 | |
Available-for-sale Securities, Debt Securities, Total | 233,630 | |
Municipal securities. | ||
Securities HTM: | ||
Securities held to maturity, fair value | 534,586 | 521,248 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 239,812 | 163,253 |
Available-for-sale Securities, Debt Securities, Total | 193,178 | 168,266 |
Municipal securities. | Callable Securities [Member] | ||
Securities HTM: | ||
Securities held to maturity, callable, amortized cost | 330,576 | |
Securities held to maturity, callable, fair value | 296,851 | |
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 235,334 | |
Securities available for sale, callable, fair value | 188,707 | |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 18,885 | 26,372 |
Available-for-sale Securities, Debt Securities, Total | 18,728 | 27,124 |
Securities available for sale, callable, amortized cost | 18,885 | |
Securities available for sale, callable, fair value | 18,728 | |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 73,438 | 92,431 |
Available-for-sale Securities, Debt Securities, Total | 66,215 | 94,323 |
Securities available for sale, callable, amortized cost | 73,438 | |
Securities available for sale, callable, fair value | 66,215 | |
Other securities | ||
Securities HTM: | ||
Securities held to maturity, fair value | 1,050 | 1,049 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 48,631 | 24,568 |
Available-for-sale Securities, Debt Securities, Total | 45,858 | $ 24,789 |
Other securities | Callable Securities [Member] | ||
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 47,681 | |
Securities available for sale, callable, fair value | $ 44,923 |
Note 4 - Loans_Leases Receiva_2
Note 4 - Loans/Leases Receivable (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) loan lease | Dec. 31, 2021 USD ($) loan lease | Dec. 31, 2020 USD ($) | Jan. 01, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Loan | $ 6,138,871,000 | $ 4,680,132,000 | |||
Accrued interest on loans | 24,300,000 | 15,300,000 | |||
Nonaccrual Loans/Leases | 8,765,000 | 2,759,000 | |||
Accruing Past Due 90 Days or More | 1,000 | ||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 232,000 | 2,599,000 | |||
Less allowance for estimated losses on loans/leases | 87,706,000 | 78,721,000 | $ 84,376,000 | $ 84,376,000 | $ 36,001,000 |
Provision for Loan and Lease Losses | 9,636,000 | 5,702,000 | 55,704,000 | ||
Allowance for Loan and Lease Losses, Write-offs | 7,525,000 | 4,538,000 | 8,383,000 | ||
Recoveries on loans/leases previously charged off | 972,000 | 1,283,000 | 1,054,000 | ||
Threshold for Related Party Loans Evaluated | 60,000 | 60,000 | 60,000 | ||
Interest income on nonaccrual loans | $ 331,000,000 | $ 494,000,000 | |||
Number of Loans / Leases | loan | 3 | 3 | |||
Nonaccrual [Member] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 54,000 | |||
Number of Loans / Leases | 1 | ||||
Guaranty Bank | |||||
Provision for Loan and Lease Losses | 11,000,000 | ||||
Residential real estate | |||||
Residential real estate loan held for sale | 1,500,000 | $ 3,800,000 | |||
Less allowance for estimated losses on loans/leases | 3,732,000 | 3,732,000 | 1,948,000 | ||
Provision for Loan and Lease Losses | 1,755,000 | ||||
Recoveries on loans/leases previously charged off | 29,000 | ||||
Commercial Portfolio Segment [Member] | |||||
Loan | 1,748,562,000 | 1,595,085,000 | |||
Less allowance for estimated losses on loans/leases | 35,421,000 | 35,421,000 | 16,072,000 | ||
Provision for Loan and Lease Losses | 22,899,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 4,199,000 | ||||
Recoveries on loans/leases previously charged off | 649,000 | ||||
Commercial Portfolio Segment [Member] | C&I - other | |||||
Loan | 1,451,693,000 | 1,346,602,000 | |||
Nonaccrual Loans/Leases | 3,135,000 | 1,400,000 | |||
Accruing Past Due 90 Days or More | 1,000 | ||||
Less allowance for estimated losses on loans/leases | 27,753,000 | 25,982,000 | |||
Provision for Loan and Lease Losses | 7,364,000 | (1,451,000) | |||
Allowance for Loan and Lease Losses, Write-offs | 6,417,000 | 2,287,000 | |||
Recoveries on loans/leases previously charged off | 817,000 | 590,000 | |||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC | |||||
Loan | $ 278,000,000 | $ 225,100,000 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Less allowance for estimated losses on loans/leases | 42,161,000 | 42,161,000 | 15,379,000 | ||
Provision for Loan and Lease Losses | 28,671,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 2,071,000 | ||||
Recoveries on loans/leases previously charged off | 182,000 | ||||
Direct financing leases | |||||
Number of Leases | lease | 2 | 2 | |||
Loss related to unguaranteed residual values of leases | $ 0 | $ 0 | 0 | ||
Loan | 31,889,000 | 45,191,000 | |||
Nonaccrual Loans/Leases | 135,000 | 847,000 | |||
Less allowance for estimated losses on loans/leases | 970,000 | 1,546,000 | 1,764,000 | 1,764,000 | 1,464,000 |
Provision for Loan and Lease Losses | 2,148,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 1,993,000 | ||||
Recoveries on loans/leases previously charged off | 145,000 | ||||
Direct financing leases | PPP loans | |||||
Loan | 68,300,000 | 28,200,000 | |||
Direct financing leases | C&I - other | |||||
Less allowance for estimated losses on loans/leases | 1,500,000 | 1,800,000 | |||
Provision for Loan and Lease Losses | (269,000) | ||||
Allowance for Loan and Lease Losses, Write-offs | 1,100,000 | ||||
Recoveries on loans/leases previously charged off | 273,000 | ||||
Threshold for Related Party Loans Evaluated | 970,000,000 | ||||
Consumer | |||||
Loan | 110,421,000 | 75,311,000 | |||
Nonaccrual Loans/Leases | 353,000 | 31,000 | |||
Less allowance for estimated losses on loans/leases | 1,371,000 | 930,000 | 1,298,000 | $ 1,298,000 | |
Provision for Loan and Lease Losses | 477,000 | (509,000) | |||
Allowance for Loan and Lease Losses, Write-offs | 65,000 | 46,000 | |||
Recoveries on loans/leases previously charged off | 9,000 | 324,000 | |||
Installment and other consumer loans | |||||
Less allowance for estimated losses on loans/leases | 1,298,000 | $ 1,138,000 | |||
Provision for Loan and Lease Losses | 231,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 120,000 | ||||
Recoveries on loans/leases previously charged off | $ 49,000 | ||||
No Lease End Option Rider [Member] | Direct financing leases | |||||
Lease residual values | $ 165,000 | $ 165,000 |
Note 4 - Loans_Leases Receiva_3
Note 4 - Loans/Leases Receivable - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Gross loans/leases receivable | $ 6,138,871 | $ 4,680,132 | |||
Less allowance for credit losses | (87,706) | (78,721) | $ (84,376) | $ (84,376) | $ (36,001) |
Net loans/leases receivable | 6,051,165 | 4,601,411 | |||
C&I - revolving | |||||
Gross loans/leases receivable | 296,869 | ||||
Commercial Portfolio Segment [Member] | |||||
Gross loans/leases receivable | 1,748,562 | 1,595,085 | |||
Less allowance for credit losses | (35,421) | (35,421) | (16,072) | ||
Commercial Portfolio Segment [Member] | C&I - revolving | |||||
Gross loans/leases receivable | 296,869 | 248,483 | |||
Less allowance for credit losses | (4,457) | (3,907) | |||
Commercial Portfolio Segment [Member] | C&I - other | |||||
Gross loans/leases receivable | 1,451,693 | 1,346,602 | |||
Less allowance for credit losses | (27,753) | (25,982) | |||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||||
Gross loans/leases receivable | 1,192,061 | 918,571 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Less allowance for credit losses | (42,161) | (42,161) | (15,379) | ||
Commercial Real Estate Portfolio Segment [Member] | CRE - owner occupied | |||||
Gross loans/leases receivable | 629,367 | 421,701 | |||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||||
Gross loans/leases receivable | 963,239 | 646,500 | |||
Less allowance for credit losses | (11,749) | (8,549) | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Gross loans/leases receivable | 629,367 | 421,701 | |||
Less allowance for credit losses | (9,965) | (8,501) | |||
Construction and Land Development [Member] | |||||
Gross loans/leases receivable | 1,192,061 | ||||
Less allowance for credit losses | (14,262) | ||||
Construction and Land Development [Member] | Construction Loans [Member] | |||||
Gross loans/leases receivable | 1,192,061 | 918,571 | |||
Less allowance for credit losses | (14,262) | (16,972) | |||
Multi-family | |||||
Gross loans/leases receivable | 963,803 | 600,412 | |||
Less allowance for credit losses | (13,186) | (9,339) | |||
Direct financing leases | |||||
Net minimum lease payments to be received | 34,754 | 49,362 | |||
Estimated unguaranteed residual values of leased assets | 165 | 165 | |||
Unearned lease/residual income | (3,030) | (4,336) | |||
Gross loans/leases receivable | 31,889 | 45,191 | |||
Plus deferred lease origination costs, net of fees | 226 | 568 | |||
Gross loans/leases receivable after originated cost | 32,115 | 45,759 | |||
Less allowance for credit losses | (970) | (1,546) | (1,764) | (1,764) | (1,464) |
Net loans/leases receivable | 31,145 | 44,213 | |||
Direct financing leases | C&I - other | |||||
Less allowance for credit losses | (1,500) | (1,800) | |||
1-4 family real estate | |||||
Gross loans/leases receivable | 499,529 | 377,361 | |||
Less allowance for credit losses | (4,963) | (4,541) | |||
Residential real estate | |||||
Less allowance for credit losses | (3,732) | (3,732) | (1,948) | ||
Consumer | |||||
Gross loans/leases receivable | 110,421 | 75,311 | |||
Less allowance for credit losses | $ (1,371) | $ (930) | $ (1,298) | (1,298) | |
Installment and other consumer loans | |||||
Less allowance for credit losses | $ (1,298) | $ (1,138) |
Note 4 - Loans_Leases Receiva_4
Note 4 - Loans/Leases Receivable - Remaining Discount on Acquired loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance at the beginning of the period | $ (1,533,000) | $ (3,139,000) | $ (6,435,000) |
Discount added at acquisition | (13,381,000) | ||
Reclassification of nonaccretable discount to accretable | (530,000) | ||
Reclassification of nonaccretable discount to allowance | 353,000 | ||
Accretion recognized | 8,826,000 | 1,606,000 | 3,473,000 |
Balance at the end of the period | $ (6,088,000) | (1,533,000) | (3,139,000) |
Performing Loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance at the beginning of the period | $ (3,139,000) | (6,378,000) | |
Reclassification of nonaccretable discount to allowance | 353,000 | ||
Accretion recognized | 2,886,000 | ||
Balance at the end of the period | (3,139,000) | ||
PCI Loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Balance at the beginning of the period | (57,000) | ||
Reclassification of nonaccretable discount to accretable | (530,000) | ||
Accretion recognized | $ 587,000 |
Note 4 - Loans_Leases Receiva_5
Note 4 - Loans/Leases Receivable - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loan | $ 6,138,871 | $ 4,680,132 |
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | $ 8,765 | $ 2,759 |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.14% | 0.06% |
Loans and leases as a percentage of total loan/lease portfolio | 100% | 100% |
C&I - revolving | ||
Loan | $ 296,869 | |
Current | ||
Loan | $ 6,120,819 | $ 4,666,986 |
Current as a percentage of total loan/lease portfolio | 99.71% | 99.72% |
Current | C&I - revolving | ||
Loan | $ 296,869 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | $ 7,585 | $ 2,202 |
Past due as a percentage of total loan/lease portfolio | 0.12% | 0.05% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | $ 1,697 | $ 8,184 |
Past due as a percentage of total loan/lease portfolio | 0.03% | 0.17% |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Accruing Past Due 90 Days or More | $ 5 | |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | |
Commercial Portfolio Segment [Member] | ||
Loan | $ 1,748,562 | $ 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loan | 296,869 | 248,483 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loan | 1,451,693 | 1,346,602 |
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | 3,135 | 1,400 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Commercial Portfolio Segment [Member] | Current | C&I - revolving | ||
Loan | 248,483 | |
Commercial Portfolio Segment [Member] | Current | C&I - other | ||
Loan | 1,442,629 | 1,337,034 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | C&I - other | ||
Loan | 4,800 | 859 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | C&I - other | ||
Loan | 1,124 | 7,308 |
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 5 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 629,367 | 421,701 |
Nonaccrual Loans/Leases | 2,590 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loan | 963,239 | 646,500 |
Nonaccrual Loans/Leases | 374 | |
Commercial Real Estate Portfolio Segment [Member] | Current | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 625,611 | 421,701 |
Commercial Real Estate Portfolio Segment [Member] | Current | CRE - non owner occupied | ||
Loan | 962,444 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 1,166 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | CRE - non owner occupied | ||
Loan | 421 | |
Construction and Land Development [Member] | ||
Loan | 1,192,061 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Nonaccrual Loans/Leases | 132 | 73 |
Construction and Land Development [Member] | Current | Construction Loans [Member] | ||
Loan | 1,191,929 | 918,498 |
Multi-family | ||
Loan | 963,803 | 600,412 |
Multi-family | Current | ||
Loan | 963,803 | 600,412 |
Direct financing leases | ||
Loan | 31,889 | 45,191 |
Nonaccrual Loans/Leases | 135 | 847 |
Direct financing leases | Current | ||
Loan | 31,557 | 44,174 |
Direct financing leases | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | 141 | 10 |
Direct financing leases | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | 56 | 160 |
1-4 family real estate | ||
Loan | 499,529 | 377,361 |
Nonaccrual Loans/Leases | 2,046 | 408 |
1-4 family real estate | Current | ||
Loan | 495,936 | 374,912 |
1-4 family real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | 1,030 | 1,325 |
1-4 family real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | 517 | 716 |
Consumer | ||
Loan | 110,421 | 75,311 |
Nonaccrual Loans/Leases | 353 | 31 |
Consumer | Current | ||
Loan | 110,041 | 75,272 |
Consumer | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | $ 27 | $ 8 |
Note 4 - Loans_Leases Receiva_6
Note 4 - Loans/Leases Receivable - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accruing Past Due 90 Days or More | $ 1 | |
Nonaccrual Loans/Leases | $ 8,765 | 2,759 |
Financing Receivable, before Allowance for Credit Loss | $ 6,138,871 | $ 4,680,132 |
Percentage of Total NPLs | 100% | 100% |
C&I - revolving | ||
Financing Receivable, before Allowance for Credit Loss | $ 296,869 | |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 5 | $ 1 |
Nonaccrual Loans/Leases | 6,787 | 1,757 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 1,978 | |
Accruing TDRs | 1,002 | |
Financing Receivable, before Allowance for Credit Loss | $ 8,770 | $ 2,760 |
Percentage of Total NPLs | 100% | 100% |
Nonperforming Financial Instruments [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | $ 5 | $ 1 |
Nonaccrual Loans/Leases | 2,775 | 1,130 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 360 | |
Accruing TDRs | 270 | |
Financing Receivable, before Allowance for Credit Loss | $ 3,140 | $ 1,401 |
Percentage of Total NPLs | 35.80% | 50.77% |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, before Allowance for Credit Loss | $ 1,748,562 | $ 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | 3,135 | 1,400 |
Financing Receivable, before Allowance for Credit Loss | 1,451,693 | 1,346,602 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Financing Receivable, before Allowance for Credit Loss | 296,869 | 248,483 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, before Allowance for Credit Loss | 1,192,061 | 918,571 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | C&I - other | ||
Financing Receivable, before Allowance for Credit Loss | 2,680 | 1,340 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 2,590 | |
Financing Receivable, before Allowance for Credit Loss | 629,367 | 421,701 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Nonaccrual Loans/Leases | 374 | |
Financing Receivable, before Allowance for Credit Loss | 963,239 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 1,738 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 852 | |
Financing Receivable, before Allowance for Credit Loss | $ 2,590 | |
Percentage of Total NPLs | 29.53% | |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | CRE - non owner occupied | ||
Nonaccrual Loans/Leases | $ 68 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 306 | |
Financing Receivable, before Allowance for Credit Loss | $ 374 | |
Percentage of Total NPLs | 4.26% | |
Construction and Land Development [Member] | ||
Financing Receivable, before Allowance for Credit Loss | $ 1,192,061 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 132 | 73 |
Financing Receivable, before Allowance for Credit Loss | 1,192,061 | 918,571 |
Construction and Land Development [Member] | Nonperforming Financial Instruments [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 132 | 73 |
Financing Receivable, before Allowance for Credit Loss | $ 132 | $ 73 |
Percentage of Total NPLs | 1.51% | 2.64% |
Multi-family | ||
Financing Receivable, before Allowance for Credit Loss | $ 963,803 | $ 600,412 |
Direct financing leases | ||
Nonaccrual Loans/Leases | 135 | 847 |
Financing Receivable, before Allowance for Credit Loss | 31,889 | 45,191 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 80 | 115 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 55 | |
Accruing TDRs | 732 | |
Financing Receivable, before Allowance for Credit Loss | $ 135 | $ 847 |
Percentage of Total NPLs | 1.54% | 30.69% |
1-4 family real estate | ||
Nonaccrual Loans/Leases | $ 2,046 | $ 408 |
Financing Receivable, before Allowance for Credit Loss | 499,529 | 377,361 |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 1,641 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 405 | |
Financing Receivable, before Allowance for Credit Loss | $ 2,046 | |
Percentage of Total NPLs | 23.33% | |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 408 | |
Financing Receivable, before Allowance for Credit Loss | $ 408 | |
Percentage of Total NPLs | 14.78% | |
Consumer | ||
Nonaccrual Loans/Leases | $ 353 | $ 31 |
Financing Receivable, before Allowance for Credit Loss | 110,421 | 75,311 |
Consumer | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 353 | |
Financing Receivable, before Allowance for Credit Loss | $ 353 | 31 |
Percentage of Total NPLs | 4.03% | |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 31 | |
Financing Receivable, before Allowance for Credit Loss | $ 31 | |
Percentage of Total NPLs | 1.12% |
Note 4 - Loans_Leases Receiva_7
Note 4 - Loans/Leases Receivable - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 78,721 | $ 84,376 | $ 36,001 |
Initial ACL recorded for PCD loans | 5,902 | ||
Provision for credit losses | 9,636 | 5,702 | 55,704 |
Charged off | (7,525) | (4,538) | (8,383) |
Recoveries | 972 | 1,283 | 1,054 |
Balance | 87,706 | 78,721 | 84,376 |
Accounting Standards Update 2016-13 | |||
Balance | (8,102) | ||
Balance | (8,102) | ||
Commercial Portfolio Segment [Member] | |||
Balance | 35,421 | 16,072 | |
Provision for credit losses | 22,899 | ||
Charged off | (4,199) | ||
Recoveries | 649 | ||
Balance | 35,421 | ||
Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||
Balance | (35,421) | ||
Balance | (35,421) | ||
Commercial Portfolio Segment [Member] | C&I - revolving | |||
Balance | 3,907 | ||
Initial ACL recorded for PCD loans | 600 | ||
Provision for credit losses | (50) | 925 | |
Balance | 4,457 | 3,907 | |
Commercial Portfolio Segment [Member] | C&I - revolving | Accounting Standards Update 2016-13 | |||
Balance | 2,982 | ||
Balance | 2,982 | ||
Commercial Portfolio Segment [Member] | C&I - other | |||
Balance | 25,982 | ||
Initial ACL recorded for PCD loans | 7 | ||
Provision for credit losses | 7,364 | (1,451) | |
Charged off | (6,417) | (2,287) | |
Recoveries | 817 | 590 | |
Balance | 27,753 | 25,982 | |
Commercial Portfolio Segment [Member] | C&I - other | Accounting Standards Update 2016-13 | |||
Balance | 29,130 | ||
Balance | 29,130 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Balance | 42,161 | 15,379 | |
Provision for credit losses | 28,671 | ||
Charged off | (2,071) | ||
Recoveries | 182 | ||
Balance | 42,161 | ||
Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 | |||
Balance | (42,161) | ||
Balance | (42,161) | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||
Balance | 8,501 | ||
Initial ACL recorded for PCD loans | 2,481 | ||
Provision for credit losses | (1,023) | (198) | |
Recoveries | 6 | 3 | |
Balance | 9,965 | 8,501 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Accounting Standards Update 2016-13 | |||
Balance | 8,696 | ||
Balance | 8,696 | ||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||
Balance | 8,549 | ||
Initial ACL recorded for PCD loans | 1,076 | ||
Provision for credit losses | 2,220 | (1,088) | |
Charged off | (193) | (1,876) | |
Recoveries | 97 | 85 | |
Balance | 11,749 | 8,549 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Accounting Standards Update 2016-13 | |||
Balance | 11,428 | ||
Balance | 11,428 | ||
Construction and Land Development [Member] | |||
Balance | 14,262 | ||
Construction and Land Development [Member] | Construction Loans [Member] | |||
Balance | 16,972 | ||
Initial ACL recorded for PCD loans | 1,100 | ||
Provision for credit losses | (2,981) | 4,973 | |
Charged off | (829) | ||
Balance | 14,262 | 16,972 | |
Construction and Land Development [Member] | Construction Loans [Member] | Accounting Standards Update 2016-13 | |||
Balance | 11,999 | ||
Balance | 11,999 | ||
Multi-family | |||
Balance | 9,339 | ||
Initial ACL recorded for PCD loans | 481 | ||
Provision for credit losses | 3,323 | 3,653 | |
Charged off | (150) | ||
Recoveries | 43 | ||
Balance | 13,186 | 9,339 | |
Multi-family | Accounting Standards Update 2016-13 | |||
Balance | 5,836 | ||
Balance | 5,836 | ||
Direct financing leases | |||
Balance | 1,546 | 1,764 | 1,464 |
Provision for credit losses | 2,148 | ||
Charged off | (1,993) | ||
Recoveries | 145 | ||
Balance | 970 | 1,546 | 1,764 |
Direct financing leases | Accounting Standards Update 2016-13 | |||
Balance | (1,764) | ||
Balance | (1,764) | ||
Direct financing leases | C&I - other | |||
Balance | 1,800 | ||
Provision for credit losses | (269) | ||
Charged off | (1,100) | ||
Recoveries | 273 | ||
Balance | 1,500 | 1,800 | |
Direct financing leases | C&I - other | Accounting Standards Update 2016-13 | |||
Balance | 1,500 | 685 | |
Provision for credit losses | 703 | ||
Charged off | 458 | ||
Recoveries | 258 | ||
Balance | 1,500 | 685 | |
Residential real estate | |||
Balance | 3,732 | 1,948 | |
Provision for credit losses | 1,755 | ||
Recoveries | 29 | ||
Balance | 3,732 | ||
Residential real estate | Accounting Standards Update 2016-13 | |||
Balance | (3,732) | ||
Balance | (3,732) | ||
1-4 family real estate | |||
Balance | 4,541 | ||
Initial ACL recorded for PCD loans | 137 | ||
Provision for credit losses | 306 | (603) | |
Charged off | (21) | (179) | |
Recoveries | 281 | ||
Balance | 4,963 | 4,541 | |
1-4 family real estate | Accounting Standards Update 2016-13 | |||
Balance | 5,042 | ||
Balance | 5,042 | ||
Consumer | |||
Balance | 930 | 1,298 | |
Initial ACL recorded for PCD loans | 20 | ||
Provision for credit losses | 477 | (509) | |
Charged off | (65) | (46) | |
Recoveries | 9 | 324 | |
Balance | 1,371 | 930 | 1,298 |
Consumer | Accounting Standards Update 2016-13 | |||
Balance | $ (137) | ||
Balance | (137) | ||
Installment and other consumer loans | |||
Balance | $ 1,298 | 1,138 | |
Provision for credit losses | 231 | ||
Charged off | (120) | ||
Recoveries | 49 | ||
Balance | $ 1,298 |
Note 4 - Loans_Leases Receiva_8
Note 4 - Loans/Leases Receivable - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | $ 74,826 | $ 58,677 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 6,064,045 | 4,621,455 | |||
Gross loans/leases receivable | 6,138,871 | 4,680,132 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 6,928 | 2,554 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 80,778 | 76,167 | |||
Allowance for Credit Losses, Total | 87,706 | 78,721 | $ 84,376 | $ 84,376 | $ 36,001 |
C&I - revolving | |||||
Gross loans/leases receivable | 296,869 | ||||
Commercial Portfolio Segment [Member] | |||||
Gross loans/leases receivable | 1,748,562 | 1,595,085 | |||
Allowance for Credit Losses, Total | 35,421 | 35,421 | 16,072 | ||
Commercial Portfolio Segment [Member] | C&I - revolving | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,386 | 2,638 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 293,483 | 245,845 | |||
Gross loans/leases receivable | 296,869 | 248,483 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 961 | 168 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 3,496 | 3,739 | |||
Allowance for Credit Losses, Total | 4,457 | 3,907 | |||
Commercial Portfolio Segment [Member] | C&I - other including lease | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 9,358 | 13,456 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,474,224 | 1,378,337 | |||
Gross loans/leases receivable | 1,483,582 | 1,391,793 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 1,445 | 743 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 26,308 | 25,239 | |||
Allowance for Credit Losses, Total | 27,753 | 25,982 | |||
Commercial Portfolio Segment [Member] | C&I - revolving and other including lease | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 12,744 | 16,094 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,767,707 | 1,624,182 | |||
Gross loans/leases receivable | 1,780,451 | 1,640,276 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,406 | 911 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 29,804 | 28,978 | |||
Allowance for Credit Losses, Total | 32,210 | 29,889 | |||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||||
Gross loans/leases receivable | 1,192,061 | 918,571 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Allowance for Credit Losses, Total | 42,161 | 42,161 | 15,379 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 24,880 | 3,841 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 604,487 | 417,860 | |||
Gross loans/leases receivable | 629,367 | 421,701 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,853 | 1,264 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 7,112 | 7,237 | |||
Allowance for Credit Losses, Total | 9,965 | 8,501 | |||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 21,588 | 25,006 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 941,651 | 621,494 | |||
Gross loans/leases receivable | 963,239 | 646,500 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 869 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 10,880 | 8,549 | |||
Allowance for Credit Losses, Total | 11,749 | 8,549 | |||
Construction and Land Development [Member] | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 10,394 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,181,667 | ||||
Gross loans/leases receivable | 1,192,061 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 13 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 14,249 | ||||
Allowance for Credit Losses, Total | 14,262 | ||||
Construction and Land Development [Member] | Construction Loans [Member] | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 10,436 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 908,135 | ||||
Gross loans/leases receivable | 1,192,061 | 918,571 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 11 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 16,961 | ||||
Allowance for Credit Losses, Total | 14,262 | 16,972 | |||
Multi-family | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 1,302 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 962,501 | 600,412 | |||
Gross loans/leases receivable | 963,803 | 600,412 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 395 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 12,791 | 9,339 | |||
Allowance for Credit Losses, Total | 13,186 | 9,339 | |||
1-4 family real estate | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,177 | 2,950 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 496,352 | 374,411 | |||
Gross loans/leases receivable | 499,529 | 377,361 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 317 | 329 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 4,646 | 4,212 | |||
Allowance for Credit Losses, Total | 4,963 | 4,541 | |||
Consumer | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 741 | 350 | |||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 109,680 | 74,961 | |||
Gross loans/leases receivable | 110,421 | 75,311 | |||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 75 | 39 | |||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,296 | 891 | |||
Allowance for Credit Losses, Total | 1,371 | 930 | 1,298 | 1,298 | |
Direct financing leases | |||||
Gross loans/leases receivable | 31,889 | 45,191 | |||
Allowance for Credit Losses, Total | 970 | 1,546 | 1,764 | 1,764 | 1,464 |
Direct financing leases | C&I - revolving | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 135 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 31,800 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 24 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | $ 946,000 | ||||
Direct financing leases | C&I - other including lease | |||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 847 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 44,400 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 35 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | $ 1,500 | ||||
Residential real estate | |||||
Allowance for Credit Losses, Total | $ 3,732 | 3,732 | 1,948 | ||
Installment and other consumer loans | |||||
Allowance for Credit Losses, Total | $ 1,298 | $ 1,138 |
Note 4 - Loans_Leases Receiva_9
Note 4 - Loans/Leases Receivable - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Less allowance | $ 87,706 | $ 78,721 | $ 84,376 | $ 84,376 | $ 36,001 |
Collateral Dependent Loans | |||||
Less allowance | 74,826 | 58,677 | |||
Commercial Assets | |||||
Less allowance | 4,870 | 3,201 | |||
Owner Occupied Commercial Real Estate Loans [Member] | |||||
Less allowance | 25,024 | ||||
Non Owner-Occupied Real Estate | |||||
Less allowance | 33,437 | 36,185 | |||
Owner Occupied Real Estate | |||||
Less allowance | 3,818 | 8,859 | |||
Securities | |||||
Less allowance | 108 | 134 | |||
Equipment | |||||
Less allowance | 7,394 | 9,998 | |||
Other | |||||
Less allowance | 175 | 300 | |||
Owner Occupied Commercial Real Estate Loans [Member] | Collateral Dependent Loans | |||||
Less allowance | 24,880 | ||||
Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Less allowance | 24,814 | ||||
Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Real Estate | |||||
Less allowance | 66 | ||||
CRE - non owner occupied | Collateral Dependent Loans | |||||
Less allowance | 21,588 | ||||
CRE - non owner occupied | Non Owner-Occupied Real Estate | |||||
Less allowance | 21,588 | ||||
Commercial Portfolio Segment [Member] | |||||
Less allowance | 35,421 | 35,421 | 16,072 | ||
Commercial Portfolio Segment [Member] | Collateral Dependent Loans | |||||
Less allowance | 12,744 | 16,094 | |||
Commercial Portfolio Segment [Member] | Commercial Assets | |||||
Less allowance | 4,870 | 3,201 | |||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Less allowance | 210 | ||||
Commercial Portfolio Segment [Member] | Owner Occupied Real Estate | |||||
Less allowance | 2,471 | ||||
Commercial Portfolio Segment [Member] | Securities | |||||
Less allowance | 108 | 134 | |||
Commercial Portfolio Segment [Member] | Equipment | |||||
Less allowance | 7,394 | 9,997 | |||
Commercial Portfolio Segment [Member] | Other | |||||
Less allowance | 162 | 291 | |||
Commercial Portfolio Segment [Member] | C&I - revolving | |||||
Less allowance | 4,457 | 3,907 | |||
Commercial Portfolio Segment [Member] | C&I - revolving | Collateral Dependent Loans | |||||
Less allowance | 3,386 | 2,638 | |||
Commercial Portfolio Segment [Member] | C&I - revolving | Commercial Assets | |||||
Less allowance | 3,281 | 2,518 | |||
Commercial Portfolio Segment [Member] | C&I - revolving | Equipment | |||||
Less allowance | 105 | 120 | |||
Commercial Portfolio Segment [Member] | C&I - other | |||||
Less allowance | 27,753 | 25,982 | |||
Commercial Portfolio Segment [Member] | C&I - other | Collateral Dependent Loans | |||||
Less allowance | 9,358 | 13,456 | |||
Commercial Portfolio Segment [Member] | C&I - other | Commercial Assets | |||||
Less allowance | 1,589 | 683 | |||
Commercial Portfolio Segment [Member] | C&I - other | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Less allowance | 210 | ||||
Commercial Portfolio Segment [Member] | C&I - other | Owner Occupied Real Estate | |||||
Less allowance | 2,471 | ||||
Commercial Portfolio Segment [Member] | C&I - other | Securities | |||||
Less allowance | 108 | 134 | |||
Commercial Portfolio Segment [Member] | C&I - other | Equipment | |||||
Less allowance | 7,289 | 9,877 | |||
Commercial Portfolio Segment [Member] | C&I - other | Other | |||||
Less allowance | 162 | 291 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Less allowance | 42,161 | 42,161 | 15,379 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||
Less allowance | 9,965 | 8,501 | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Collateral Dependent Loans | |||||
Less allowance | 3,841 | ||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Real Estate | |||||
Less allowance | 3,841 | ||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | |||||
Less allowance | 11,749 | 8,549 | |||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Collateral Dependent Loans | |||||
Less allowance | 25,006 | ||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Non Owner-Occupied Real Estate | |||||
Less allowance | 25,006 | ||||
Construction and Land Development [Member] | |||||
Less allowance | 14,262 | ||||
Construction and Land Development [Member] | Collateral Dependent Loans | |||||
Less allowance | 10,394 | ||||
Construction and Land Development [Member] | Non Owner-Occupied Real Estate | |||||
Less allowance | 10,394 | ||||
Construction and Land Development [Member] | Construction Loans [Member] | |||||
Less allowance | 14,262 | 16,972 | |||
Construction and Land Development [Member] | Construction Loans [Member] | Collateral Dependent Loans | |||||
Less allowance | 10,436 | ||||
Construction and Land Development [Member] | Construction Loans [Member] | Non Owner-Occupied Real Estate | |||||
Less allowance | 10,362 | ||||
Construction and Land Development [Member] | Construction Loans [Member] | Owner Occupied Real Estate | |||||
Less allowance | 74 | ||||
Direct financing leases | |||||
Less allowance | 970 | 1,546 | 1,764 | 1,764 | $ 1,464 |
Direct financing leases | C&I - other | |||||
Less allowance | 1,500 | 1,800 | |||
Direct financing leases | C&I - other | Commercial Assets | |||||
Less allowance | 135 | 847 | |||
Multi-family | |||||
Less allowance | 13,186 | 9,339 | |||
Multi-family | Collateral Dependent Loans | |||||
Less allowance | 1,302 | ||||
Multi-family | Non Owner-Occupied Real Estate | |||||
Less allowance | 1,302 | ||||
1-4 family real estate | |||||
Less allowance | 4,963 | 4,541 | |||
1-4 family real estate | Collateral Dependent Loans | |||||
Less allowance | 3,177 | 2,950 | |||
1-4 family real estate | Non Owner-Occupied Real Estate | |||||
Less allowance | 33 | 817 | |||
1-4 family real estate | Owner Occupied Real Estate | |||||
Less allowance | 3,144 | 2,133 | |||
Consumer | |||||
Less allowance | 1,371 | 930 | $ 1,298 | $ 1,298 | |
Consumer | Collateral Dependent Loans | |||||
Less allowance | 741 | 350 | |||
Consumer | Non Owner-Occupied Real Estate | |||||
Less allowance | 120 | ||||
Consumer | Owner Occupied Real Estate | |||||
Less allowance | 608 | 340 | |||
Consumer | Equipment | |||||
Less allowance | 1 | ||||
Consumer | Other | |||||
Less allowance | $ 13 | $ 9 |
Note 4 - Loans_Leases Receiv_10
Note 4 - Loans/Leases Receivable - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loan | $ 6,138,871 | $ 4,680,132 |
C&I - revolving | ||
Loan | 296,869 | |
Internally Assigned Risk Rating [Member] | ||
2022 | 1,762,189 | 1,418,701 |
2021 | 1,348,190 | 1,151,208 |
2020 | 988,473 | 514,237 |
2019 | 412,583 | 354,369 |
2018 | 294,259 | 180,072 |
Prior | 215,046 | 148,546 |
Revolving Loans Amortized Cost Basis | 366,274 | 289,503 |
Loan | 5,387,014 | 4,056,636 |
Internally Assigned Risk Rating [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 296,869 | |
Loan | 296,869 | |
Internally Assigned Risk Rating [Member] | C&I - other | ||
2022 | 506,174 | |
2021 | 280,216 | |
2020 | 129,365 | |
2019 | 92,312 | |
2018 | 59,985 | |
Prior | 105,598 | |
Loan | 1,173,650 | |
Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 156,151 | |
2021 | 182,611 | |
2020 | 165,311 | |
2019 | 35,451 | |
2018 | 28,285 | |
Prior | 47,829 | |
Revolving Loans Amortized Cost Basis | 13,729 | |
Loan | 629,367 | |
Internally Assigned Risk Rating [Member] | CRE - non owner occupied | ||
2022 | 318,638 | |
2021 | 222,835 | |
2020 | 192,555 | |
2019 | 104,554 | |
2018 | 69,815 | |
Prior | 47,121 | |
Revolving Loans Amortized Cost Basis | 7,721 | |
Loan | 963,239 | |
Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
2022 | 793 | |
2021 | 801 | |
2020 | 505 | |
2019 | 122 | |
2018 | 366 | |
Prior | 621 | |
Revolving Loans Amortized Cost Basis | 10,226 | |
Loan | 13,434 | |
Pass [Member] | C&I - other | ||
2022 | 496,445 | |
2021 | 279,412 | |
2020 | 127,803 | |
2019 | 87,054 | |
2018 | 59,675 | |
Prior | 105,184 | |
Loan | 1,155,573 | |
Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 146,211 | |
2021 | 182,440 | |
2020 | 142,596 | |
2019 | 33,571 | |
2018 | 27,088 | |
Prior | 45,993 | |
Revolving Loans Amortized Cost Basis | 13,460 | |
Loan | 591,359 | |
Pass [Member] | CRE - non owner occupied | ||
2022 | 310,163 | |
2021 | 221,953 | |
2020 | 173,478 | |
2019 | 89,337 | |
2018 | 56,898 | |
Prior | 40,923 | |
Revolving Loans Amortized Cost Basis | 7,510 | |
Loan | 900,262 | |
Pass [Member] | Construction Loans [Member] | ||
2022 | 511 | |
2021 | 801 | |
2020 | 493 | |
2019 | 122 | |
2018 | 254 | |
Prior | 621 | |
Revolving Loans Amortized Cost Basis | 10,226 | |
Loan | 13,028 | |
Special Mention [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 17,595 | |
Loan | 17,595 | |
Special Mention [Member] | C&I - other | ||
2022 | 9,542 | |
2021 | 679 | |
2020 | 901 | |
2019 | 723 | |
Prior | 308 | |
Loan | 12,153 | |
Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 6,190 | |
2020 | 6,379 | |
2019 | 484 | |
Prior | 1,346 | |
Revolving Loans Amortized Cost Basis | 269 | |
Loan | 14,668 | |
Special Mention [Member] | CRE - non owner occupied | ||
2022 | 2,824 | |
2021 | 882 | |
2020 | 18,920 | |
2018 | 12,917 | |
Prior | 6,198 | |
Loan | 41,741 | |
Substandard [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 3,386 | |
Loan | 3,386 | |
Substandard [Member] | C&I - other | ||
2022 | 187 | |
2021 | 125 | |
2020 | 661 | |
2019 | 4,535 | |
2018 | 310 | |
Prior | 106 | |
Loan | 5,924 | |
Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 3,750 | |
2021 | 171 | |
2020 | 16,336 | |
2019 | 1,396 | |
2018 | 1,197 | |
Prior | 490 | |
Loan | 23,340 | |
Substandard [Member] | CRE - non owner occupied | ||
2022 | 5,651 | |
2020 | 157 | |
2019 | 15,217 | |
Revolving Loans Amortized Cost Basis | 211 | |
Loan | 21,236 | |
Substandard [Member] | Construction Loans [Member] | ||
2022 | 282 | |
2020 | 12 | |
2018 | 112 | |
Loan | 406 | |
Commercial Portfolio Segment [Member] | ||
Loan | 1,748,562 | 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loan | 296,869 | 248,483 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loan | 1,451,693 | 1,346,602 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 248,483 | |
Loan | 248,483 | |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - other | ||
2022 | 395,618 | |
2021 | 364,995 | |
2020 | 141,165 | |
2019 | 82,573 | |
2018 | 83,810 | |
Prior | 53,358 | |
Loan | 1,121,519 | |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 275,888 | 245,212 |
Loan | 275,888 | 245,212 |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - other | ||
2022 | 391,532 | |
2021 | 362,256 | |
2020 | 133,678 | |
2019 | 82,177 | |
2018 | 83,419 | |
Prior | 53,310 | |
Loan | 1,106,372 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 633 | |
Loan | 633 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - other | ||
2022 | 3,580 | |
2021 | 373 | |
2020 | 349 | |
2018 | 336 | |
Prior | 2 | |
Loan | 4,640 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 2,638 | |
Loan | 2,638 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - other | ||
2022 | 506 | |
2021 | 2,366 | |
2020 | 7,138 | |
2019 | 396 | |
2018 | 55 | |
Prior | 46 | |
Loan | 10,507 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 629,367 | 421,701 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loan | 963,239 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 118,651 | |
2021 | 143,045 | |
2020 | 49,740 | |
2019 | 31,995 | |
2018 | 19,406 | |
Prior | 47,387 | |
Revolving Loans Amortized Cost Basis | 11,477 | |
Loan | 421,701 | |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | CRE - non owner occupied | ||
2022 | 185,213 | |
2021 | 172,890 | |
2020 | 106,062 | |
2019 | 77,166 | |
2018 | 62,189 | |
Prior | 34,388 | |
Revolving Loans Amortized Cost Basis | 8,592 | |
Loan | 646,500 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 118,014 | |
2021 | 143,045 | |
2020 | 47,660 | |
2019 | 30,523 | |
2018 | 17,038 | |
Prior | 46,185 | |
Revolving Loans Amortized Cost Basis | 11,477 | |
Loan | 413,942 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | CRE - non owner occupied | ||
2022 | 176,813 | |
2021 | 145,712 | |
2020 | 88,697 | |
2019 | 63,849 | |
2018 | 55,752 | |
Prior | 28,808 | |
Revolving Loans Amortized Cost Basis | 8,592 | |
Loan | 568,223 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 637 | |
2019 | 233 | |
2018 | 1,846 | |
Prior | 1,202 | |
Loan | 3,918 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | CRE - non owner occupied | ||
2022 | 7,295 | |
2021 | 20,881 | |
2020 | 1,802 | |
2019 | 12,230 | |
2018 | 5,494 | |
Prior | 5,580 | |
Loan | 53,282 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2020 | 2,080 | |
2019 | 1,239 | |
2018 | 522 | |
Loan | 3,841 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | CRE - non owner occupied | ||
2022 | 1,105 | |
2021 | 6,297 | |
2020 | 15,563 | |
2019 | 1,087 | |
2018 | 943 | |
Loan | 24,995 | |
Construction and Land Development [Member] | ||
Loan | 1,192,061 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Construction and Land Development [Member] | Internally Assigned Risk Rating [Member] | ||
2022 | 480,613 | |
2021 | 349,896 | |
2020 | 240,778 | |
2019 | 31,607 | |
2018 | 30,300 | |
Revolving Loans Amortized Cost Basis | 29,647 | |
Loan | 1,162,841 | |
Construction and Land Development [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
2022 | 404,407 | |
2021 | 248,360 | |
2020 | 126,941 | |
2019 | 106,790 | |
2018 | 3,012 | |
Revolving Loans Amortized Cost Basis | 13,277 | |
Loan | 902,787 | |
Construction and Land Development [Member] | Pass [Member] | ||
2022 | 479,016 | |
2021 | 330,434 | |
2020 | 240,778 | |
2019 | 31,607 | |
2018 | 30,300 | |
Revolving Loans Amortized Cost Basis | 29,647 | |
Loan | 1,141,782 | |
Construction and Land Development [Member] | Pass [Member] | Construction Loans [Member] | ||
2022 | 394,045 | |
2021 | 248,360 | |
2020 | 126,941 | |
2019 | 106,790 | |
2018 | 3,012 | |
Revolving Loans Amortized Cost Basis | 13,277 | |
Loan | 892,425 | |
Construction and Land Development [Member] | Special Mention [Member] | ||
2022 | 1,465 | |
2021 | 9,200 | |
Loan | 10,665 | |
Construction and Land Development [Member] | Substandard [Member] | ||
2022 | 132 | |
2021 | 10,262 | |
Loan | 10,394 | |
Construction and Land Development [Member] | Substandard [Member] | Construction Loans [Member] | ||
2022 | 10,362 | |
Loan | 10,362 | |
Multi-family | ||
Loan | 963,803 | 600,412 |
Multi-family | Internally Assigned Risk Rating [Member] | ||
2022 | 237,839 | 266,120 |
2021 | 254,100 | 197,224 |
2020 | 226,222 | 74,033 |
2019 | 135,845 | 47,486 |
2018 | 99,695 | 5,609 |
Prior | 7,875 | 7,376 |
Revolving Loans Amortized Cost Basis | 2,227 | 2,564 |
Loan | 963,803 | 600,412 |
Multi-family | Pass [Member] | ||
2022 | 237,839 | 266,120 |
2021 | 254,056 | 197,224 |
2020 | 224,920 | 74,033 |
2019 | 134,378 | 47,486 |
2018 | 99,695 | 5,609 |
Prior | 7,875 | 7,376 |
Revolving Loans Amortized Cost Basis | 2,227 | 2,564 |
Loan | 960,990 | 600,412 |
Multi-family | Special Mention [Member] | ||
2021 | 44 | |
2019 | 1,467 | |
Loan | 1,511 | |
Multi-family | Substandard [Member] | ||
2020 | 1,302 | |
Loan | 1,302 | |
1-4 family real estate | ||
Loan | 499,529 | 377,361 |
1-4 family real estate | Internally Assigned Risk Rating [Member] | ||
2022 | 61,981 | 47,134 |
2021 | 57,731 | 24,207 |
2020 | 33,737 | 16,188 |
2019 | 12,692 | 8,006 |
2018 | 5,813 | 6,046 |
Prior | 6,002 | 5,213 |
Revolving Loans Amortized Cost Basis | 5,855 | 3,079 |
Loan | 183,811 | 109,873 |
1-4 family real estate | Pass [Member] | ||
2022 | 61,953 | 47,097 |
2021 | 57,731 | 24,029 |
2020 | 33,737 | 16,188 |
2019 | 12,687 | 7,569 |
2018 | 5,813 | 5,845 |
Prior | 6,002 | 5,213 |
Revolving Loans Amortized Cost Basis | 5,855 | 3,079 |
Loan | 183,778 | 109,020 |
1-4 family real estate | Special Mention [Member] | ||
2022 | 37 | |
Loan | 37 | |
1-4 family real estate | Substandard [Member] | ||
2022 | 28 | |
2021 | 178 | |
2019 | 5 | 437 |
2018 | 201 | |
Loan | 33 | 816 |
Consumer | ||
Loan | $ 110,421 | 75,311 |
Consumer | Internally Assigned Risk Rating [Member] | ||
2022 | 1,558 | |
2021 | 487 | |
2020 | 108 | |
2019 | 353 | |
Prior | 824 | |
Revolving Loans Amortized Cost Basis | 2,031 | |
Loan | 5,361 | |
Consumer | Pass [Member] | ||
2022 | 1,558 | |
2021 | 487 | |
2020 | 108 | |
2019 | 216 | |
Prior | 824 | |
Revolving Loans Amortized Cost Basis | 2,031 | |
Loan | 5,224 | |
Consumer | Substandard [Member] | ||
2019 | 137 | |
Loan | $ 137 |
Note 4 - Loans_Leases Receiv_11
Note 4 - Loans/Leases Receivable - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loan | $ 6,138,871 | $ 4,680,132 |
Delinquency Status [Member] | ||
2022 | 298,706 | 245,701 |
2021 | 173,708 | 152,113 |
2020 | 110,850 | 66,802 |
2019 | 31,060 | 36,973 |
2018 | 15,942 | 19,169 |
Prior | 50,417 | 46,979 |
Revolving Loans Amortized Cost Basis | 71,174 | 55,759 |
Loan | 751,857 | 623,496 |
Nonperforming Financial Instruments [Member] | ||
Loan | 8,770 | 2,760 |
C&I - other | Nonperforming Financial Instruments [Member] | ||
Loan | 3,140 | 1,401 |
Commercial Portfolio Segment [Member] | ||
Loan | 1,748,562 | 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loan | 1,451,693 | 1,346,602 |
Commercial Portfolio Segment [Member] | C&I - other | Delinquency Status [Member] | ||
2022 | 171,290 | 117,258 |
2021 | 71,014 | 54,438 |
2020 | 25,695 | 34,034 |
2019 | 8,161 | 14,642 |
2018 | 1,804 | 4,242 |
Prior | 79 | 469 |
Loan | 278,043 | 225,083 |
Commercial Portfolio Segment [Member] | C&I - other | Performing Loans | ||
2022 | 170,180 | 117,163 |
2021 | 69,694 | 54,261 |
2020 | 25,540 | 33,390 |
2019 | 8,066 | 14,274 |
2018 | 1,804 | 4,200 |
Prior | 79 | 455 |
Loan | 275,363 | 223,743 |
Commercial Portfolio Segment [Member] | C&I - other | Nonperforming Financial Instruments [Member] | ||
2022 | 1,110 | 95 |
2021 | 1,320 | 177 |
2020 | 155 | 644 |
2019 | 95 | 368 |
2018 | 42 | |
Prior | 14 | |
Loan | 2,680 | 1,340 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Direct financing leases | ||
Loan | 31,889 | 45,191 |
Direct financing leases | Delinquency Status [Member] | ||
2022 | 14,578 | 6,690 |
2021 | 5,204 | 12,862 |
2020 | 5,788 | 11,638 |
2019 | 4,405 | 9,287 |
2018 | 1,544 | 3,713 |
Prior | 370 | 1,001 |
Loan | 31,889 | 45,191 |
Direct financing leases | Performing Loans | ||
2022 | 14,578 | 6,690 |
2021 | 5,172 | 12,130 |
2020 | 5,700 | 11,638 |
2019 | 4,398 | 9,235 |
2018 | 1,536 | 3,695 |
Prior | 370 | 956 |
Loan | 31,754 | 44,344 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
2021 | 32 | 732 |
2020 | 88 | |
2019 | 7 | 52 |
2018 | 8 | 18 |
Prior | 45 | |
Loan | 135 | 847 |
Construction and Land Development [Member] | ||
Loan | 1,192,061 | |
Construction and Land Development [Member] | Delinquency Status [Member] | ||
2022 | 28,785 | |
2021 | 360 | |
2020 | 10 | |
2019 | 3 | |
2018 | 62 | |
Loan | 29,220 | |
Construction and Land Development [Member] | Performing Loans | ||
2022 | 28,785 | |
2021 | 360 | |
2020 | 10 | |
2019 | 3 | |
2018 | 62 | |
Loan | 29,220 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loan | 1,192,061 | 918,571 |
Construction and Land Development [Member] | Construction Loans [Member] | Delinquency Status [Member] | ||
2022 | 12,857 | |
2021 | 2,080 | |
2019 | 494 | |
2018 | 73 | |
Revolving Loans Amortized Cost Basis | 280 | |
Loan | 15,784 | |
Construction and Land Development [Member] | Construction Loans [Member] | Performing Loans | ||
2022 | 12,857 | |
2021 | 2,080 | |
2019 | 494 | |
Revolving Loans Amortized Cost Basis | 280 | |
Loan | 15,711 | |
Construction and Land Development [Member] | Construction Loans [Member] | Nonperforming Financial Instruments [Member] | ||
2018 | 73 | |
Loan | 132 | 73 |
1-4 family real estate | ||
Loan | 499,529 | 377,361 |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
Loan | 2,046 | |
1-4 family real estate | One To Four Family [Member] | Delinquency Status [Member] | ||
2022 | 69,361 | 104,005 |
2021 | 93,286 | 78,713 |
2020 | 75,640 | 19,001 |
2019 | 17,368 | 10,890 |
2018 | 11,389 | 10,533 |
Prior | 48,584 | 44,278 |
Revolving Loans Amortized Cost Basis | 90 | 68 |
Loan | 315,718 | 267,488 |
1-4 family real estate | One To Four Family [Member] | Performing Loans | ||
2022 | 69,094 | 104,005 |
2021 | 92,762 | 78,713 |
2020 | 75,153 | 19,001 |
2019 | 17,089 | 10,784 |
2018 | 11,381 | 10,533 |
Prior | 48,136 | 43,976 |
Revolving Loans Amortized Cost Basis | 90 | 68 |
Loan | 313,705 | 267,080 |
1-4 family real estate | One To Four Family [Member] | Nonperforming Financial Instruments [Member] | ||
2022 | 267 | |
2021 | 524 | |
2020 | 487 | |
2019 | 279 | 106 |
2018 | 8 | |
Prior | 448 | 302 |
Loan | 2,013 | 408 |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Loan | 408 | |
Consumer | ||
Loan | 110,421 | 75,311 |
Consumer | Delinquency Status [Member] | ||
2022 | 14,692 | 4,891 |
2021 | 3,844 | 4,020 |
2020 | 3,717 | 2,129 |
2019 | 1,123 | 1,660 |
2018 | 1,143 | 608 |
Prior | 1,384 | 1,231 |
Revolving Loans Amortized Cost Basis | 71,084 | 55,411 |
Loan | 96,987 | 69,950 |
Consumer | Performing Loans | ||
2022 | 14,685 | 4,891 |
2021 | 3,844 | 4,020 |
2020 | 3,717 | 2,114 |
2019 | 1,123 | 1,660 |
2018 | 1,140 | 593 |
Prior | 1,325 | 1,230 |
Revolving Loans Amortized Cost Basis | 70,974 | 55,411 |
Loan | 96,808 | 69,919 |
Consumer | Nonperforming Financial Instruments [Member] | ||
2020 | 15 | |
2018 | 15 | |
Prior | 1 | |
Loan | 353 | 31 |
Consumer | Consumer. | Nonperforming Financial Instruments [Member] | ||
2022 | 7 | |
2018 | 3 | |
Prior | 59 | |
Revolving Loans Amortized Cost Basis | 110 | |
Loan | $ 179 | |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Loan | $ 31 |
Note 4 - Loans_Leases Receiv_12
Note 4 - Loans/Leases Receivable - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Number of Loans / Leases | loan | 3 | 3 |
Pre-Modification Recorded Investment | $ 232 | $ 2,599 |
Post-Modification Recorded Investment | $ 232 | 2,599 |
Specific Allowance | $ 189 | |
Interest Rate Adjusted Below Market | ||
Number of Loans / Leases | loan | 2 | |
Pre-Modification Recorded Investment | $ 67 | |
Post-Modification Recorded Investment | 67 | |
Specific Allowance | $ 7 | |
Direct financing leases | Payment Deferral [Member] | ||
Number of Loans / Leases | loan | 3 | |
Pre-Modification Recorded Investment | $ 232 | |
Post-Modification Recorded Investment | $ 232 | |
1-4 family real estate | Extended Maturity [Member] | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 2,532 | |
Post-Modification Recorded Investment | 2,532 | |
Specific Allowance | $ 182 | |
1-4 family real estate | Interest Rate Adjusted Below Market | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 54 | |
Post-Modification Recorded Investment | 54 | |
Specific Allowance | $ 6 | |
Consumer | Interest Rate Adjusted Below Market | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 13 | |
Post-Modification Recorded Investment | 13 | |
Specific Allowance | $ 1 |
Note 4 - Loans_Leases Receiv_13
Note 4 - Loans/Leases Receivable - Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 78,721 | $ 84,376 | $ 36,001 |
Provisions (credited) to expense | 8,284 | 3,486 | 55,704 |
Balance | 87,706 | 78,721 | 84,376 |
Accounting Standards Update 2016-13 | |||
Balance | (8,102) | ||
Balance | (8,102) | ||
Unfunded Loan Commitment | |||
Balance | 6,886 | ||
Provisions (credited) to expense | (1,334) | (2,231) | |
Balance | $ 5,552 | 6,886 | |
Unfunded Loan Commitment | Accounting Standards Update 2016-13 | |||
Balance | $ 9,117 | ||
Balance | $ 9,117 |
Note 4 - Loans_Leases Receiv_14
Note 4 - Loans/Leases Receivable - Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans/Leases Receivable | |||
Balance, beginning | $ 100,898 | $ 100,361 | $ 112,830 |
Net increase (decrease) due to change in related parties | 3,496 | (18,832) | (1,601) |
Advances | 51,683 | 42,817 | 43,238 |
Repayments | (42,877) | (23,448) | (54,106) |
Balance, ending | $ 113,200 | $ 100,898 | $ 100,361 |
Note 3 - Loans_Leases Receivabl
Note 3 - Loans/Leases Receivable - Concentration by Industries (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessors of Non-residential Buildings [Member] | ||
Loans and Leases Receivable, Gross | $ 558,719 | $ 586,672 |
Percentage of total loans/leases | 9% | 13% |
Lessors of Residential Buildings [Member] | ||
Loans and Leases Receivable, Gross | $ 2,168,431 | $ 1,706,092 |
Percentage of total loans/leases | 35% | 36% |
Note 5 - Premises and Equipme_3
Note 5 - Premises and Equipment (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Asset | |
Lease expenses | $ 412 | $ 636 |
Right of use assets | $ 3,000 | $ 1,300 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Operating lease liability | $ 1,300 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Interest income from direct financing lease | $ 2,300 | $ 4,000 |
Net investment in direct financing lease | 31,100 | $ 44,200 |
No of ROU | Asset | 1 | |
Guaranty Federal Bancshares, Inc | ||
Acquisition of ROU Assets | 8,400 | |
Accounting Standards Update 2016-13 | ||
Operating lease liability | $ 3,000 |
Note 5 - Premises and Equipme_4
Note 5 - Premises and Equipment - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and Equipment | ||
Land | $ 17,804 | $ 12,513 |
Buildings (useful lives 15 to 39 years) | 108,777 | 70,860 |
Furniture and equipment (useful lives 3 to 15 years) | 54,305 | 47,517 |
Premises and equipment | 180,886 | 130,890 |
Less accumulated depreciation | 62,938 | 52,360 |
Premises and equipment, net | $ 117,948 | $ 78,530 |
Note 5 - Premises and Equipme_5
Note 5 - Premises and Equipment - Components of Premises and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Building [Member] | Minimum | ||
Useful lives (Year) | 15 years | 15 years |
Building [Member] | Maximum | ||
Useful lives (Year) | 39 years | 39 years |
Furniture and Fixtures [Member] | Minimum | ||
Useful lives (Year) | 3 years | 3 years |
Furniture and Fixtures [Member] | Maximum | ||
Useful lives (Year) | 15 years | 15 years |
Note 5 - Premises and Equipme_6
Note 5 - Premises and Equipment - Maturities of operating lease liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 571 |
2024 | 336 |
2025 | 262 |
2026 | 240 |
2027 | 230 |
Thereafter | 2,635 |
Total | $ 4,274 |
Note 5 - Premises and Equipme_7
Note 5 - Premises and Equipment - Contractual Maturities of Sales-type and Direct Financing Lease Receivables (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Year ending December 31: | |
2023 | $ 1,854 |
2024 | 8,910 |
2025 | 11,046 |
2026 | 4,723 |
2027 | 6,741 |
Thereafter | 1,480 |
Total lease payments receivable | 34,754 |
Unguaranteed residual values | 165 |
Unearned lease/residual income | (3,030) |
Total lease payments receivable, net of residual value and income | 31,889 |
Plus deferred origination costs, net of fees | 226 |
Total lease payments receivable, Including deferred origination fee | 32,115 |
Less allowance | (970) |
Total lease payments receivable | $ 31,145 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | |
Balance at the beginning of period | $ 74,748 | $ 74,066 | $ 74,748 | |||
Acquisition of GFED | 63,541 | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | (500) | ||
Balance at the end of period | $ 137,607 | 74,066 | ||||
Asset held-for-sale | Bates Companies | ||||||
Sale | (182) | |||||
Bates Companies | ||||||
Goodwill impairment | $ (500) | $ (500) |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangibles - Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 137,607 | $ 74,066 | $ 74,066 | $ 74,748 |
Commercial Banking | QCBT | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 3,223 | 3,223 | 3,223 | |
Commercial Banking | CRBT | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 14,980 | 14,980 | 14,980 | |
Commercial Banking | CSB | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 9,888 | 9,888 | 9,888 | |
Commercial Banking | SFCB. | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 109,516 | $ 45,975 | $ 45,975 |
Note 6 - Goodwill and Intangi_5
Note 6 - Goodwill and Intangibles - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at the beginning of period | $ 9,349 | $ 11,381 | |
Acquisition of GFED | 63,541 | ||
Amortization expense | (2,854) | (2,032) | $ (2,149) |
Balance at the end of the period | 16,759 | 9,349 | 11,381 |
Net book value | 16,759 | 9,349 | 11,381 |
Core Deposits [Member] | |||
Balance at the beginning of period | 9,349 | 11,381 | 13,466 |
Amortization expense | (2,854) | (2,032) | (2,085) |
Balance at the end of the period | 16,759 | 9,349 | 11,381 |
Gross carrying amount | 29,519 | 19,255 | 19,255 |
Accumulated amortization | (12,760) | (9,906) | (7,874) |
Net book value | 16,759 | $ 9,349 | $ 11,381 |
Core Deposits [Member] | Guaranty Bank | |||
Acquisition of GFED | $ 10,264 |
Note 6 - Goodwill and Intangi_6
Note 6 - Goodwill and Intangibles - Core Deposit Intangibles by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | $ 16,759 | $ 9,349 | $ 11,381 | |
Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 16,759 | 9,349 | 11,381 | $ 13,466 |
CRBT | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 1,225 | 1,702 | 2,189 | |
CSB | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 2,027 | 2,653 | 3,305 | |
SFCB. | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | $ 13,507 | $ 4,994 | $ 5,887 |
Note 6 - Goodwill and Intangi_7
Note 6 - Goodwill and Intangibles - Estimated Amortization Expense of Core Deposit Intangible (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Net book value | $ 16,759 | $ 9,349 | $ 11,381 | |
Core Deposits [Member] | ||||
2023 | 2,938 | |||
2024 | 2,761 | |||
2025 | 2,645 | |||
2026 | 2,360 | |||
2027 | 1,874 | |||
Thereafter | 4,181 | |||
Net book value | $ 16,759 | $ 9,349 | $ 11,381 | $ 13,466 |
Customer Lists [Member] | ||||
Net book value | $ 1,504 |
Note 6 - Goodwill and Intangi_8
Note 6 - Goodwill and Intangibles - Changes in customer list intangible (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at the beginning of period | $ 9,349 | $ 11,381 | |
Intangibles amortization | 2,854 | 2,032 | $ 2,149 |
Balance at the end of the period | $ 16,759 | $ 9,349 | 11,381 |
Customer Lists [Member] | |||
Balance at the beginning of period | 1,504 | ||
Intangibles amortization | (64) | ||
Bates Companies | Customer Lists [Member] | |||
Sale of Bates Companies | $ (1,440) |
Note 7 - Derivatives and Hedg_3
Note 7 - Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deposits | $ 5,984,217 | $ 4,922,772 | |||
Cash Flow Hedging | |||||
Deposits | $ 300,000 | ||||
Interest rate cap | Cash Flow Hedging | |||||
Initial premium paid upfront for the two caps | $ 3,500 | ||||
Interest rate swap | |||||
Termination of Interest rate swaps | $ 40,000 | ||||
Loss on termination of interest rate swaps | $ 808 |
Note 7 - Derivatives and Hedg_4
Note 7 - Derivatives and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Assets | $ 177,631 | $ 222,220 |
Derivative Liabilities | (200,701) | (225,135) |
Interest rate cap | ||
Derivative Assets | 2,213 | 238 |
Interest rate cap | Cash Flow Hedging | ||
Derivative Assets | 8,327 | 927 |
Interest rate swap | ||
Derivative Assets | 166,614 | 221,055 |
Derivative Liabilities | (166,614) | (221,055) |
Interest rate swap | Cash Flow Hedging | ||
Derivative Assets | 477 | |
Derivative Liabilities | (33,824) | $ (4,080) |
Interest rate collar | Cash Flow Hedging | ||
Derivative Liabilities | $ (263) |
Note 7 - Derivatives and Hedg_5
Note 7 - Derivatives and Hedging Activities - Summary of Interest Rate Cap Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Assets | $ 177,631 | $ 222,220 |
Interest rate swap | ||
Derivative Assets | 166,614 | 221,055 |
Interest rate cap | ||
Derivative Assets | 2,213 | 238 |
Cash Flow Hedging | Interest rate swap | ||
Derivative Assets | 477 | |
Cash Flow Hedging | Interest rate cap | ||
Derivative Assets | 8,327 | 927 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 5 | |
Fair Value - Liability | $ (50) | |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | 11 | |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | 5 | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 714 | 60 |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 1,566 | 125 |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 783 | 62 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 1,264 | 161 |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 2,700 | 332 |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 1,350 | 166 |
Designated as Hedging Instrument | Other 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 | Other Assets | Cash Flow Hedging | Interest rate cap | ||
Notional Amount | $ 300,000 | |
Fair Value - Asset | 8,327 | 927 |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Interest rate swap | ||
Notional Amount | 49,310 | |
Fair Value - Liability | (2,284) | (3,991) |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust II | ||
Notional Amount | 10,000 | |
Fair Value - Liability | $ (464) | (1,035) |
Receive Rate | 6.52% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Fair Value - Liability | $ (372) | (828) |
Receive Rate | 6.52% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (459) | (996) |
Receive Rate | 4.06% | |
Pay Rate | 4.54% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Fair Value - Liability | $ (140) | (309) |
Receive Rate | 6.92% | |
Pay Rate | 5.17% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Fair Value - Liability | $ (163) | (360) |
Receive Rate | 5.04% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Fair Value - Liability | $ (209) | (463) |
Receive Rate | 5.04% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Guaranty Statutory Trust II | ||
Notional Amount | $ 10,310 | |
Fair Value - Liability | $ (477) | |
Receive Rate | 6.14% | |
Pay Rate | 4.09% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | ||
Notional Amount | $ 300,000 | |
Fair Value - Liability | (35,631) | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | ||
Fair Value - Liability | (89) | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, one | ||
Notional Amount | 35,000 | |
Fair Value - Liability | $ (5,646) | (17) |
Receive Rate | 1.40% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, two | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (8,066) | (25) |
Receive Rate | 1.40% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, three | ||
Notional Amount | $ 40,000 | |
Fair Value - Asset | $ 6,464 | |
Fair Value - Liability | (34) | |
Receive Rate | 1.40% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, four | ||
Notional Amount | $ 25,000 | |
Fair Value - Liability | $ (4,018) | (13) |
Receive Rate | 1.30% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan five | ||
Notional Amount | $ 15,000 | |
Fair Value - Liability | $ (1,144) | |
Receive Rate | 1.91% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan six | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (3,812) | |
Receive Rate | 1.91% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan seven | ||
Notional Amount | $ 35,000 | |
Fair Value - Liability | $ (2,669) | |
Receive Rate | 1.91% | |
Pay Rate | 4.12% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan eight | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (3,812) | |
Receive Rate | 1.91% | |
Pay Rate | 4.12% | |
Non Designated | ||
Derivative Assets | $ 2,213 | $ 238 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Non Designated | Derivative Instrument One Maturing 2023 [Member] | ||
Derivative Assets | $ 3 | $ 3 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Non Designated | Derivative Instrument One Maturing 2024 [Member] | ||
Derivative Assets | $ 822 | $ 62 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Non Designated | Derivative Instrument One Maturing 2025 [Member] | ||
Derivative Assets | $ 1,388 | $ 173 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Non Designated | Interest rate swap | ||
Derivative Assets | $ 166,614 | $ 221,055 |
Non Designated | Other Assets | ||
Notional Amount | 75,000 | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Non Designated | Other Assets | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% |
Note 7 - Derivatives and Hedg_6
Note 7 - Derivatives and Hedging Activities - Interest Rate Collars (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Derivative Liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value - Liability | $ (89) | |
Interest rate collar | ||
Notional Amount | $ 50,000 | |
Cap Strike Rate | 4.40% | |
Floor Strike Rate | 2.44% | |
Fair Value - Liability | $ (263) |
Note 7 - Derivatives and Hedg_7
Note 7 - Derivatives and Hedging Activities - Changes in Fair Values of Derivative Financial Instruments (Details) - Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unrealized loss at beginning of period, net of tax | $ (4,373) | $ (7,632) |
Amount of gain (loss) recognized in other comprehensive income, net of tax | (14,847) | 2,562 |
Unrealized loss at end of period, net of tax | (20,221) | (4,373) |
Caplet Amortization. | ||
Amount reclassified from accumulated other comprehensive income | $ (1,001) | $ 697 |
Note 7 - Derivatives and Hedg_8
Note 7 - Derivatives and Hedging Activities - Significantly Impact of operations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Assets | $ 177,631 | $ 222,220 |
Derivative Liabilities. | 200,701 | 225,135 |
Interest rate swap | ||
Derivative Assets | 166,614 | 221,055 |
Derivative Liabilities. | 166,614 | 221,055 |
Non Designated | ||
Derivative Assets | 2,213 | 238 |
Non Designated | Interest rate swap | ||
Derivative Asset, Notional Amount | 2,528,949 | 2,024,599 |
Derivative Assets | 166,614 | 221,055 |
Derivative Liability, Notional Amount | 2,528,949 | 2,024,599 |
Derivative Liabilities. | $ 166,614 | $ 221,055 |
Note 7 - Derivatives and Hedg_9
Note 7 - Derivatives and Hedging Activities - Cash flow hedging and fair value (Details) - Non Designated - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest And Dividend Income | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Income and expense line items presented in the consolidated statements of income | $ 292,571 | $ 200,155 | $ 198,373 |
Interest Expense | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Income and expense line items presented in the consolidated statements of income | 61,451 | 21,922 | 31,423 |
Interest Rate Caps On Deposits | Interest Expense | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | (1,405) | 697 | 551 |
Interest Rate Swaps on Variable Rate Loans | Interest And Dividend Income | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | (829) | 1,006 | |
Interest Rate Swaps on Variable Rate Loans | Interest Expense | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | 185 | ||
Interest rate swaps on TRUPS | Interest Expense | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | $ 462 | $ 1,114 | $ 832 |
Note 7 - Derivatives and Hed_10
Note 7 - Derivatives and Hedging Activities - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Swapped loan portfolio loan-to-value percentage, including the potential swap exposure | 65% | |
Interest rate swap | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 38,756 | $ 228,925 |
Interest rate swap | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 1,272 | 21,100 |
Interest rate swap | U.S. govt. sponsored agency securities. | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,555 | |
Interest rate swap | Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 8,227 | 139,166 |
Interest rate swap | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 29,257 | $ 65,104 |
Note 8 - Deposits (Details)
Note 8 - Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Aggregate amount of certificates of deposits, $250,000 minimum denomination | $ 371,700,000 | $ 169,000,000 |
Minimum denomination | 250,000 | |
Federal Home Loan Bank of Des Moines [Member] | ||
FHLB advance | 188,800,000 | 129,500,000 |
Amount outstanding | $ 0 | $ 0 |
Note 8 - Deposits - Maturities
Note 8 - Deposits - Maturities of Certificates of Deposit (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits | |
2023 | $ 710,100 |
2024 | 53,029 |
2025 | 11,274 |
2026 | 4,209 |
2027 | 5,571 |
Thereafter | 401 |
Total | $ 784,584 |
Note 8 - Deposits - Public Enti
Note 8 - Deposits - Public Entity Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Collateralized by investment securities | $ 3,877 | $ 6,350 |
U.S. govt. sponsored agency securities. | ||
Collateralized by investment securities | 2,081 | 3,080 |
Residential mortgage-backed and related securities | ||
Collateralized by investment securities | $ 1,796 | $ 3,270 |
Note 9 - Short-term Borrowing_2
Note 9 - Short-term Borrowings - Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Borrowings | ||
Federal funds purchased | $ 129,630 | $ 3,800 |
Short-term borrowings | $ 129,630 | $ 3,800 |
Note 9 - Short-term Borrowing_3
Note 9 - Short-term Borrowings - Overnight Repurchase Agreements (Details) - Federal Funds Purchased [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Average daily balance | $ 8,637 | $ 6,280 |
Average daily interest rate | 1.76% | 0.08% |
Maximum month-end balance | $ 129,630 | $ 11,320 |
Weighted average rate as of December 31 | 4.70% | 0.08% |
Note 10 - FHLB Advances (Detail
Note 10 - FHLB Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
FHLB stock | $ 25,600 | $ 7,800 | |
Prepaid FHLB advances | $ 55,300 | ||
Loss on prepayment of FHLB advances | $ 1,900 | ||
Minimum | |||
FHLB advances maturity period | 1 day | ||
Minimum | Loans Receivable [Member] | |||
FHLB collateral maintenance levels | 125% | ||
Maximum | |||
FHLB advances maturity period | 14 days | ||
Maximum | Loans Receivable [Member] | |||
FHLB collateral maintenance levels | 333% | ||
Collateral, Loans [Member] | |||
FHLB advance | $ 1,700,000 | 1,300,000 | |
Collateral, Securities [Member] | |||
FHLB advance | $ 290 | $ 334 |
Note 10 - FHLB Advances - Matur
Note 10 - FHLB Advances - Maturity and Interest Rate Information on Advances from FHLB (Details) - Federal Home Loan Bank, Advances, Putable Option [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amount due within one year | $ 15,000 | |
Weighted average interest rate at year-end - next 12 months | 0.31% | |
Amount due - one to two years after balance sheet date | $ 415,000 | |
Weighted average interest rate at year-end - year two | 4.58% | |
Total FHLB advances, Amount due | $ 415,000 | $ 15,000 |
Total FHLB advances, Weighted average interest rate at year-end | 4.58% | 0.31% |
Note 11 - Other Borrowings an_3
Note 11 - Other Borrowings and Unused Lines of Credit (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Interest rate (as a percent) | 6.29% | 2.43% | ||
Revolving line of credit | ||||
Line of credit facility, maximum borrowing capacity | $ 50 | $ 25 | ||
Variable interest rate (as a percent) | 3% | |||
Outstanding amount line of credit | $ 0 | |||
Percentage of the outstanding capital stock of the entity's bank subsidiaries used as collateral (as a percentage) | 100% | |||
Prime Rate | Revolving line of credit | Maximum | ||||
Variable interest rate (as a percent) | 0.50% |
Note 11 - Other Borrowings an_4
Note 11 - Other Borrowings and Unused Lines of Credit - Unused Lines of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Unused lines of credit | $ 501,790 | $ 517,657 |
Secured Debt | ||
Unused lines of credit | 30,990 | 61,657 |
Unsecured Debt | ||
Unused lines of credit | $ 470,800 | $ 456,000 |
Note 12 - Subordinated Notes (D
Note 12 - Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 18, 2022 | Apr. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 232,662 | $ 113,850 | |||
Proceeds from subordinated notes | $ 20,000 | 100,000 | $ 50,000 | ||
Conversion Amount | $ 43,250 | ||||
Redemption price percentage | 100% | ||||
Debt issuance costs | (2,338) | (1,150) | |||
Interest Rate Period One [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Fixed rate | 5.25% | ||||
Subordinated debenture dated 9/14/20 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 50,000 | $ 50,000 | |||
Interest Rate | 5.125% | 5.125% | |||
Subordinated debenture dated 2/1/19 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 65,000 | $ 65,000 | |||
Interest Rate | 5.375% | 5.375% | |||
Subordinated debenture dated 7/29/20 | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 20,000 | ||||
Interest Rate | 5.25% | ||||
Subordinated debenture dated 8/18/22 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 55,000 | ||||
Interest Rate | 5.95% | ||||
Subordinated debenture dated 8/18/22 | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 45,000 | ||||
Interest Rate | 5.50% | ||||
Revolving line of credit | |||||
Subordinated Borrowing [Line Items] | |||||
Basis points | 3% | ||||
Outstanding amount line of credit | $ 0 | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Subordinated Borrowing [Line Items] | |||||
Basis points | 5.19% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Period Two [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | SOFR | ||||
Subordinated debenture mature on September 1 2037 | |||||
Subordinated Borrowing [Line Items] | |||||
Proceeds from subordinated notes | $ 55,000 | ||||
Redemption price percentage | 100% | ||||
Subordinated debenture mature on September 1 2037 | Interest Rate Period One [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Fixed rate | 5.95% | ||||
Subordinated debenture mature on September 1 2037 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Period Two [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | SOFR | ||||
Basis points | 3% | ||||
Subordinated debenture mature on September 1 2032 | |||||
Subordinated Borrowing [Line Items] | |||||
Proceeds from subordinated notes | $ 45,000 | ||||
Redemption price percentage | 100% | ||||
Subordinated debenture mature on September 1 2032 | Interest Rate Period One [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Fixed rate | 5.50% | ||||
Subordinated debenture mature on September 1 2032 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Period Two [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | SOFR | ||||
Basis points | 2.79% |
Note 13 - Junior Subordinated_3
Note 13 - Junior Subordinated Debentures (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Oct. 01, 2017 USD ($) loan | May 13, 2013 USD ($) loan | Feb. 29, 2004 USD ($) | |
Debt Instrument, Face Amount | $ 50,520,000 | $ 40,210,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 6.29% | 2.43% | |||
Junior Subordinated Debt [Member] | |||||
Repayment period (in years) | 30 years | ||||
Note Payable to QCR Holdings Capital Trust II [Member] | |||||
Debt Instrument, Face Amount | $ 12,372,000 | ||||
Community National | |||||
Number of assumed junior subordinated debentures | loan | 2 | ||||
Other borrowings | $ 4,200,000 | ||||
Guaranty Bank and Trust Company | |||||
Number of assumed junior subordinated debentures | loan | 1 | ||||
Other borrowings | $ 3,900,000 | ||||
Guaranty Federal Bancshares, Inc | |||||
Number of assumed junior subordinated debentures | loan | 1 | ||||
Other borrowings | $ 10,300,000 |
Note 13 - Junior Subordinated_4
Note 13 - Junior Subordinated Debentures - Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Junior subordinated debentures | $ 48,602 | $ 38,155 |
Junior subordinated debentures | (1,918) | (2,055) |
Note Payable to QCR Holdings Capital Trust II [Member] | ||
Junior subordinated debentures | 10,310 | 10,310 |
Note Payable to Trust III [Member] | ||
Junior subordinated debentures | 8,248 | 8,248 |
Note Payable to Trust V [Member] | ||
Junior subordinated debentures | 10,310 | 10,310 |
Community National Trust II [Member] | ||
Junior subordinated debentures | 3,093 | 3,093 |
Community National Trust III [Member] | ||
Junior subordinated debentures | 3,609 | 3,609 |
Note Payable to Guaranty Bankshares Statutory Trust I [Member] | ||
Junior subordinated debentures | 4,640 | $ 4,640 |
Note Payable to Guaranty Federal Statutory Trust II [Member] | ||
Junior subordinated debentures | $ 10,310 |
Note 13 - Junior Subordinated_5
Note 13 - Junior Subordinated Debentures - Trust Preferred Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Aggregate principal amount | $ 50,520 | $ 40,210 |
Interest rate (as a percent) | 6.29% | 2.43% |
Guaranty Bankshares Statutory Trust I [Member] | ||
Date issued | May 2005 | |
Aggregate principal amount | $ 4,640 | $ 4,640 |
Interest rate (as a percent) | 6.52% | 1.95% |
Trust Preferred Securities [Member] | Qcr Holdings Statutory Trust I I Member | ||
Date issued | February 2004 | |
Aggregate principal amount | $ 10,310 | $ 10,310 |
Interest rate (as a percent) | 6.52% | 3.07% |
Trust Preferred Securities [Member] | Qcr Holdings Statutory Trust I I Member | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 2.85% | |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust III [Member] | ||
Date issued | February 2004 | |
Aggregate principal amount | $ 8,248 | $ 8,248 |
Interest rate (as a percent) | 6.52% | 3.07% |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust III [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 2.85% | |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust V [Member] | ||
Date issued | February 2006 | |
Aggregate principal amount | $ 10,310 | $ 10,310 |
Interest rate (as a percent) | 5.63% | 1.67% |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust V [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 1.55% | |
Trust Preferred Securities [Member] | Community National Statutory Trust II [Member] | ||
Date issued | September 2004 | |
Aggregate principal amount | $ 3,093 | $ 3,093 |
Interest rate (as a percent) | 6.92% | 2.38% |
Trust Preferred Securities [Member] | Community National Statutory Trust II [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 2.17% | |
Trust Preferred Securities [Member] | Community National Statutory Trust III [Member] | ||
Date issued | March 2007 | |
Aggregate principal amount | $ 3,609 | $ 3,609 |
Interest rate (as a percent) | 6.52% | 1.95% |
Trust Preferred Securities [Member] | Community National Statutory Trust III [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 1.75% | |
Trust Preferred Securities [Member] | Guaranty Bankshares Statutory Trust I [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 1.75% | |
Trust Preferred Securities [Member] | Guaranty Federal Statutory Trust II [Member] | ||
Date issued | December 2005 | |
Aggregate principal amount | $ 10,310 | |
Interest rate (as a percent) | 6.14% | |
Trust Preferred Securities [Member] | Guaranty Federal Statutory Trust II [Member] | London Interbank Offered Rate (LIBOR) | ||
Variable interest rate (as a percent) | 1.45% |
Note 14 - Federal and State I_3
Note 14 - Federal and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized tax benefits that would impact effective tax rate | $ 2,200 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 333 | $ 236 | |
Effective income tax rate | 21% | 21% | 21% |
Domestic Tax Authority [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | $ 5,400 | ||
Domestic Tax Authority [Member] | Community National And CNB [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 1,900 | ||
Domestic Tax Authority [Member] | Guaranty Bank and Trust Company | |||
Federal Tax NOL | 3,500 | ||
State and Local Jurisdiction [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 2,100 | ||
State and Local Jurisdiction [Member] | Community National And CNB [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | $ 2,100 |
Note 14 - Federal and State I_4
Note 14 - Federal and State Income Taxes - Federal and State Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Current | $ 19,165 | $ 7,290 | $ 27,237 |
Deferred | (4,682) | 15,272 | (14,530) |
Federal and state income tax expense | $ 14,483 | $ 22,562 | $ 12,707 |
Note 14 - Federal and State I_5
Note 14 - Federal and State Income Taxes - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Computed "expected" tax expense | $ 23,845 | $ 25,508 | $ 15,391 |
Tax exempt income, net | (10,689) | (7,537) | (5,943) |
Bank-owned life insurance | (432) | (386) | (308) |
State income taxes, net of federal benefit, current year | 4,482 | 5,089 | 3,622 |
Change in unrecognized tax benefits | 498 | 578 | 546 |
Goodwill impairment | 105 | ||
Intended liquidation of bank-owned life insurance | (1,181) | ||
Tax credits | (1,362) | 34 | |
Tax Credits | (456) | ||
Acquisition costs | 276 | 95 | |
Excess tax benefit on stock options exercised and restricted stock awards vested | (503) | (436) | (242) |
Re-measurement of deferred tax asset to incorporate newly enacted tax rates | 207 | ||
Other | (451) | (383) | (215) |
Federal and state income tax expense | $ 14,483 | $ 22,562 | $ 12,707 |
Computed "expected" tax expense (in percentage) | 21% | 21% | 21% |
Tax exempt income, net (in percentage) | (9.40%) | (6.20%) | (8.10%) |
Bank-owned life insurance (in percentage) | (0.40%) | (0.30%) | (0.40%) |
State income taxes, net of federal benefit, current year (in percentage) | 3.90% | 4.20% | 4.90% |
Change in unrecognized tax benefits (in percentage) | 0.40% | 0.50% | 0.70% |
Goodwill impairment (in percentage) | 0.10% | ||
Intended liquidation of bank-owned life insurance (in percentage) | (1.00%) | ||
Provision adjustment from accounting method change (in percentage) | (0.30%) | ||
Tax credits (in percentage) | (1.20%) | (0.60%) | |
Acquisition costs (in percentage) | 0.20% | 0.10% | |
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.40%) | (0.40%) | (0.30%) |
Other (in percentage) | (0.40%) | (0.30%) | (0.30%) |
Federal and state income tax expense (in percentage) | 12.70% | 18.60% | 17.30% |
Note 14 - Federal and State I_6
Note 14 - Federal and State Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | ||
Balance, beginning | $ 2,182 | $ 1,893 |
Impact of tax positions taken during current year | 758 | 1,326 |
Gross decrease related to tax positions of prior years | (646) | |
Gross increase related to tax positions of prior years | 75 | |
Reduction as a result of a lapse of the applicable statute of limitations | (335) | (391) |
Balance, ending | $ 2,680 | $ 2,182 |
Note 14 - Federal and State I_7
Note 14 - Federal and State Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Historic tax credits | $ 68 | $ 68 |
Low income housing tax credits | 226 | |
Net unrealized losses on securities available for sale and derivative instruments | 21,319 | |
Compensation | 13,413 | 11,912 |
Loan/lease losses | 20,466 | 19,023 |
Net operating loss carryforwards, federal and state | 1,262 | 1,354 |
Other | 17 | |
Deferred tax assets | 56,754 | 32,374 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available for sale and derivative instruments | 747 | |
Premises and equipment. | 6,271 | 6,099 |
Equipment financing leases | 2,484 | 6,462 |
Acquisition fair value adjustments | 3,816 | 3,269 |
Investment accretion | 27 | 27 |
Deferred loan origination fees, net | 1,624 | 1,403 |
Other | 2,094 | 677 |
Deferred tax liabilities | 16,316 | 18,684 |
Net deferred tax assets | $ 40,438 | $ 13,690 |
Note 14 - Federal and State I_8
Note 14 - Federal and State Income Taxes - The Change in Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Provision for income taxes | $ (4,682) | $ 15,272 | $ (14,530) |
Net deferred tax assets resulting from sale of other subsidiary | (363) | ||
Statement of stockholders' equity- Other comprehensive income (loss) | (22,066) | (122) | 837 |
Total | $ (26,748) | $ 15,150 | $ (13,330) |
Note 15 - Employee Benefit Pl_3
Note 15 - Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Percent of employee contributions matched | 4.50% | |||
Discretionary contributions | $ 0 | $ 0 | $ 0 | |
Deferred compensation liability, current and noncurrent | 38,255,000 | 32,353,000 | 24,713,000 | $ 19,474,000 |
Deferred compensation matching contributions | $ 3,615,000 | 4,900,000 | $ 3,959,000 | |
Certain Executive Officers [Member] | ||||
Company matching contribution percent (as a percent) | 100% | |||
Minimum | ||||
Defined benefit plan eligible age limit | 18 years | |||
Minimum | Certain Executive Officers [Member] | ||||
Deferred compensation matching contributions | $ 10,000 | |||
Interest on deferred compensation amounts | 4% | |||
Maximum | Certain Executive Officers [Member] | ||||
Deferred compensation matching contributions | $ 25,000 | |||
Interest on deferred compensation amounts | 12% | |||
Certain Management Officers [Member] | ||||
Company matching contribution percent (as a percent) | 50% | |||
Deferred compensation liability, current and noncurrent | $ 38,200,000 | $ 32,300,000 | ||
Number of monthly installment payments | 180 months | |||
Certain Management Officers [Member] | Minimum | ||||
Company matching contribution percent (as a percent) | 4% | |||
Interest on deferred compensation amounts | 4% | |||
Certain Management Officers [Member] | Maximum | ||||
Company matching contribution percent (as a percent) | 12% | |||
Interest on deferred compensation amounts | 8% | |||
First 3% of Employees Wages [Member] | ||||
Company matching contribution percent (as a percent) | 100% | |||
Match at 100% [Member] | ||||
Percent of employee contributions matched | 3% | |||
From 4% to 4.5% of Employees Wages [Member] | ||||
Company matching contribution percent (as a percent) | 50% | |||
Matched at 50% [Member] | ||||
Percent of employee contributions matched | 3% |
Note 15 - Employee Benefit Pl_4
Note 15 - Employee Benefit Plans - Profit Sharing Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plans | |||
Matching contribution | $ 3,071 | $ 2,446 | $ 2,520 |
Note 15 - Employee Benefit Pl_5
Note 15 - Employee Benefit Plans - Deferred Compensation Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, beginning | $ 32,353 | $ 24,713 | $ 19,474 |
Employee deferrals | 3,615 | 4,900 | 3,959 |
Company match and interest | 2,776 | 3,048 | 2,628 |
Cash payments made | (489) | (308) | (1,348) |
Balance, ending | 38,255 | 32,353 | 24,713 |
Supplemental Executive Retirement Plans [Member] | |||
Balance, beginning | 7,273 | 6,189 | 5,160 |
Company match and interest | 1,286 | 1,532 | 1,193 |
Cash payments made | (394) | (448) | (164) |
Balance, ending | $ 8,165 | $ 7,273 | $ 6,189 |
Note 16 - Stock-Based Compens_3
Note 16 - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2023 | Jul. 01, 2022 | |
Expected life | 10 years | ||||
Minimum | |||||
Vesting period | 3 years | ||||
Maximum | |||||
Vesting period | 7 years | ||||
2010 Equity Incentive Plan | |||||
Shares of common stock authorized | 350,000 | ||||
The 2013 Equity Incentive Plan | |||||
Shares of common stock authorized | 350,000 | ||||
The 2016 Equity Incentive Plan | |||||
Shares of common stock authorized | 400,000 | ||||
Remaining shares of common stock available for grant | 100,271 | ||||
Employee Stock Purchase Plan | |||||
Maximum amount any one participant can elect in an offering period | $ 21,250 | ||||
Maximum amount any one participant can contribute (as a percent) | 15% | 15% | 15% | ||
Stock purchase price percent | 85% | ||||
Purchase Plan 2022 | |||||
Remaining shares of common stock available for grant | 382,765 | 350,000 |
Note 16 - Stock-Based Compens_4
Note 16 - Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allocated Share-based Compensation Expense | $ 2,438 | $ 2,352 | $ 2,150 |
Employee Stock Option | |||
Allocated Share-based Compensation Expense | 246 | 270 | 297 |
Restricted Stock | |||
Allocated Share-based Compensation Expense | 1,967 | 1,864 | 1,619 |
Employee Stock Purchase Plan | |||
Allocated Share-based Compensation Expense | $ 225 | $ 218 | $ 234 |
Note 16 - Stock-Based Compens_5
Note 16 - Stock-Based Compensation - Stock Option Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | |||
Outstanding, shares (in shares) | 367,998 | 407,763 | 426,913 |
Outstanding, Weighted average exercise price (in dollars per share) | $ 24.46 | $ 22.24 | $ 20.14 |
Granted, shares (in shares) | 22,400 | 22,150 | 23,350 |
Granted, Weighted average exercise price (in dollars per share) | $ 53.87 | $ 43.61 | $ 39.12 |
Exercised, shares (in shares) | (41,695) | (60,317) | (41,650) |
Exercised, Weighted average exercise price (in dollars per share) | $ 14.07 | $ 15.76 | $ 10.67 |
Forfeited, shares (in shares) | (2,025) | (1,598) | (850) |
Forfeited, Weighted average exercise price (in dollars per share) | $ 26.72 | $ 38.50 | $ 19.94 |
Outstanding, shares (in shares) | 346,678 | 367,998 | 407,763 |
Outstanding, Weighted average exercise price (in dollars per share) | $ 27.60 | $ 24.46 | $ 22.24 |
Exercisable, , shares (in shares) | 295,077 | 318,266 | 354,899 |
Weighted-average grant date fair value (in dollars per share) | $ 13.97 | $ 10.85 | $ 10.07 |
Note 16 - Stock-Based Compens_6
Note 16 - Stock-Based Compensation - Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number outstanding (in shares) | shares | 346,678 |
Number exercisable (in shares) | shares | 295,077 |
$15.50 to $15.65 | |
Exercise price range, lower range (in dollars per share) | $ 15.50 |
Exercise price range, upper range (in dollars per share) | $ 15.65 |
Number outstanding (in shares) | shares | 57,616 |
Weighted average remaining contractual life (Year) | 3 months |
Weighted average exercise price options outstanding (in dollars per share) | $ 15.64 |
Number exercisable (in shares) | shares | 57,616 |
Weighted average exercise price options exercisable (in dollars per share) | $ 15.64 |
$17.10 to $18.00 | |
Exercise price range, lower range (in dollars per share) | 17.10 |
Exercise price range, upper range (in dollars per share) | $ 18 |
Number outstanding (in shares) | shares | 108,890 |
Weighted average remaining contractual life (Year) | 1 year 6 months 25 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 17.32 |
Number exercisable (in shares) | shares | 108,890 |
Weighted average exercise price options exercisable (in dollars per share) | $ 17.32 |
$22.64 to $22.64 | |
Exercise price range, lower range (in dollars per share) | 22.64 |
Exercise price range, upper range (in dollars per share) | $ 22.64 |
Number outstanding (in shares) | shares | 53,316 |
Weighted average remaining contractual life (Year) | 3 years 29 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 22.64 |
Number exercisable (in shares) | shares | 53,316 |
Weighted average exercise price options exercisable (in dollars per share) | $ 22.64 |
$36.00 to $41.95 | |
Exercise price range, lower range (in dollars per share) | 36 |
Exercise price range, upper range (in dollars per share) | $ 41.95 |
Number outstanding (in shares) | shares | 36,773 |
Weighted average remaining contractual life (Year) | 6 years 8 months 1 day |
Weighted average exercise price options outstanding (in dollars per share) | $ 38.30 |
Number exercisable (in shares) | shares | 23,060 |
Weighted average exercise price options exercisable (in dollars per share) | $ 38.06 |
$42.65 to $48.50 | |
Exercise price range, lower range (in dollars per share) | 42.65 |
Exercise price range, upper range (in dollars per share) | $ 48.50 |
Number outstanding (in shares) | shares | 67,908 |
Weighted average remaining contractual life (Year) | 5 years 7 months 17 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 43.76 |
Number exercisable (in shares) | shares | 51,995 |
Weighted average exercise price options exercisable (in dollars per share) | $ 43.80 |
$53.87 to $56.26 | |
Exercise price range, lower range (in dollars per share) | 53.87 |
Exercise price range, upper range (in dollars per share) | $ 56.26 |
Number outstanding (in shares) | shares | 22,175 |
Weighted average remaining contractual life (Year) | 9 years 2 months 1 day |
Weighted average exercise price options outstanding (in dollars per share) | $ 53.89 |
Number exercisable (in shares) | shares | 200 |
Weighted average exercise price options exercisable (in dollars per share) | $ 53.87 |
Note 16 - Stock-Based Compens_7
Note 16 - Stock-Based Compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Outstanding, beginning (in shares) | 97,107 | 102,489 | 106,826 |
Granted (in shares) | 8,527 | 12,412 | 8,913 |
Released (in shares) | (47,766) | (43,691) | (37,296) |
Forfeited (in shares) | (751) | (51) | (1,600) |
Outstanding, ending (in shares) | 84,115 | 97,107 | 102,489 |
Weighted average fair value per share granted (in dollars per share) | $ 54.20 | $ 45.18 | $ 39.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Grant Date Fair Value | $ 2.6 | $ 1.9 | $ 1.4 |
Restricted Stock Units (RSUs) | |||
Granted (in shares) | 64,494 | 25,948 | 25,646 |
Restricted Stock And Restricted Stock Units | |||
Granted (in shares) | 35,525 | 38,360 | 34,559 |
Note 16 - Stock-Based Compens_8
Note 16 - Stock-Based Compensation - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares granted (in shares) | 28,421 | 28,396 | 38,738 |
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan (in shares) | 27,103 | 30,543 | 37,114 |
Weighted average fair value per share granted (in dollars per share) | $ 7.88 | $ 7.67 | $ 6.03 |
Note 17 - Regulatory Capital _3
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends - (Details) | 12 Months Ended | |||
May 19, 2022 shares | Feb. 13, 2020 shares | Dec. 31, 2022 security shares | Dec. 31, 2021 shares | |
The number of junior subordinated private placement debentures issued | security | 4 | |||
The number of junior subordinated private placement debentures assumed | security | 4 | |||
Shares repurchased | 970,000 | 293,153 | ||
Number of shares remaining for repurchase | 935,915 | |||
Percentage of outstanding shares under share repurchase program | 10% | 5% | ||
Maximum | ||||
Shares repurchased authorized | 1,500,000 | 800,000 |
Note 17 - Regulatory Capital _4
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends - Capital Requirements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total risk-based capital, actual, amount | $ 1,055,177 | $ 814,629 |
Total risk-based capital, actual, ratio | 0.1428 | 0.1477 |
Total risk-based capital for capital adequacy purposes, amount | $ 591,132 | $ 441,100 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 775,861 | $ 578,944 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 738,915 | $ 551,375 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 734,977 | $ 631,649 |
Tier 1 risk-based capital, actual, ratio | 0.0995 | 0.1146 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 443,349 | $ 330,825 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 628,078 | $ 468,669 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 591,132 | $ 441,100 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 734,977 | $ 631,649 |
Tier 1 leverage, actual, ratio | 0.0961 | 0.1046 |
Tier 1 leverage for capital adequacy purposes, amount | $ 305,959 | $ 241,579 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 305,959 | $ 241,579 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 382,449 | $ 301,974 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 686,375 | $ 593,494 |
Common equity Tier 1, actual ratio | 0.0929 | 0.1076 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 332,512 | $ 248,119 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | 0.045% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 517,241 | $ 385,962 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 0.07% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 480,295 | $ 358,394 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 0.065% |
QCBT | ||
Total risk-based capital, actual, amount | $ 275,337 | $ 247,658 |
Total risk-based capital, actual, ratio | 0.1307 | 0.1329 |
Total risk-based capital for capital adequacy purposes, amount | $ 168,588 | $ 149,126 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 221,272 | $ 195,727 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 210,735 | $ 186,407 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 248,978 | $ 224,253 |
Tier 1 risk-based capital, actual, ratio | 0.1181 | 0.1203 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 126,441 | $ 111,844 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 179,125 | $ 158,446 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 168,588 | $ 149,126 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 248,978 | $ 224,253 |
Tier 1 leverage, actual, ratio | 0.1101 | 0.1045 |
Tier 1 leverage for capital adequacy purposes, amount | $ 90,419 | $ 85,873 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 90,419 | $ 85,873 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 133,023 | $ 107,341 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 248,978 | $ 224,253 |
Common equity Tier 1, actual ratio | 0.1181 | 0.1203 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 94,831 | $ 83,883 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | 0.045% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 147,514 | $ 130,485 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 0.07% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 136,978 | $ 121,164 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 0.065% |
CRBT | ||
Total risk-based capital, actual, amount | $ 308,153 | $ 277,673 |
Total risk-based capital, actual, ratio | 0.1484 | 0.1485 |
Total risk-based capital for capital adequacy purposes, amount | $ 166,168 | $ 149,595 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 218,096 | $ 196,343 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 207,711 | $ 186,993 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 282,258 | $ 254,279 |
Tier 1 risk-based capital, actual, ratio | 0.1359 | 0.1360 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 124,626 | $ 112,196 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 176,554 | $ 158,944 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 166,168 | $ 149,595 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 282,258 | $ 254,279 |
Tier 1 leverage, actual, ratio | 0.1317 | 0.1259 |
Tier 1 leverage for capital adequacy purposes, amount | $ 85,707 | $ 80,777 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 85,707 | $ 80,777 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 107,134 | $ 100,971 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 282,258 | $ 254,279 |
Common equity Tier 1, actual ratio | 0.1359 | 0.1360 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 93,470 | $ 84,147 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | 0.045% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 145,397 | $ 130,895 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 0.07% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 135,012 | $ 121,546 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 0.065% |
CSB | ||
Total risk-based capital, actual, amount | $ 142,974 | $ 123,365 |
Total risk-based capital, actual, ratio | 0.1204 | 0.1195 |
Total risk-based capital for capital adequacy purposes, amount | $ 94,981 | $ 82,601 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 124,662 | $ 108,413 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 118,726 | $ 103,251 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 128,130 | $ 110,410 |
Tier 1 risk-based capital, actual, ratio | 0.1079 | 0.1069 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 71,236 | $ 61,951 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 100,917 | $ 87,763 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 94,981 | $ 82,601 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 128,130 | $ 110,410 |
Tier 1 leverage, actual, ratio | 0.1009 | 0.0967 |
Tier 1 leverage for capital adequacy purposes, amount | $ 50,799 | $ 45,676 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 50,799 | $ 45,676 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 63,499 | $ 57,095 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 128,130 | $ 110,410 |
Common equity Tier 1, actual ratio | 0.1079 | 0.1069 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 53,427 | $ 46,463 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | 0.045% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 83,108 | $ 72,276 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 0.07% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 77,172 | $ 67,113 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 0.065% |
SFCB | ||
Total risk-based capital, actual, amount | $ 101,067 | |
Total risk-based capital, actual, ratio | 0.1339 | |
Total risk-based capital for capital adequacy purposes, amount | $ 60,369 | |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 79,235 | |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 75,462 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | |
Tier 1 risk-based capital, actual, amount | $ 91,625 | |
Tier 1 risk-based capital, actual, ratio | 0.1214 | |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 45,277 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 64,142 | |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 60,369 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | |
Tier 1 leverage, actual, amount | $ 91,625 | |
Tier 1 leverage, actual, ratio | 0.1108 | |
Tier 1 leverage for capital adequacy purposes, amount | $ 33,088 | |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 33,088 | |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 41,360 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | |
Common equity Tier 1, actual, amount | $ 91,625 | |
Common equity Tier 1, actual ratio | 0.1214 | |
Common equity Tier 1 for capital adequacy purposes, amount | $ 33,958 | |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 52,823 | |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 0.07% | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 49,050 | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 0.065% | |
Guaranty Bank | ||
Total risk-based capital, actual, amount | $ 243,106 | |
Total risk-based capital, actual, ratio | 0.1224 | |
Total risk-based capital for capital adequacy purposes, amount | $ 158,903 | |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 208,560 | |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 198,629 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | |
Tier 1 risk-based capital, actual, amount | $ 218,647 | |
Tier 1 risk-based capital, actual, ratio | 0.1101 | |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 119,177 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 168,834 | |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 158,903 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | |
Tier 1 leverage, actual, amount | $ 218,647 | |
Tier 1 leverage, actual, ratio | 0.1090 | |
Tier 1 leverage for capital adequacy purposes, amount | $ 80,229 | |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 80,229 | |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 100,286 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | |
Common equity Tier 1, actual, amount | $ 218,647 | |
Common equity Tier 1, actual ratio | 0.1101 | |
Common equity Tier 1 for capital adequacy purposes, amount | $ 89,383 | |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.045% | |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 139,040 | |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 129,109 | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 0.065% |
Note 18 - Earnings per Share -
Note 18 - Earnings per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per Share | |||
Net income | $ 99,066 | $ 98,905 | $ 60,582 |
Basic EPS | $ 5.94 | $ 6.30 | $ 3.84 |
Diluted EPS | $ 5.87 | $ 6.20 | $ 3.80 |
Weighted average common shares outstanding | 16,681,844 | 15,708,744 | 15,771,650 |
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 208,163 | 235,964 | 180,987 |
Weighted average common and common equivalent shares outstanding (in shares) | 16,890,007 | 15,944,708 | 15,952,637 |
Note 18 - Earnings per Share (D
Note 18 - Earnings per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per Share | |||
Antidilutive securities excluded from computation of earnings per share, amount | 1,706 | 0 | 104,636 |
Note 19 - Commitments and Con_2
Note 19 - Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum performance guarantee term | 1 year | |
Liability for potential guarantee obligations | $ 0 | $ 0 |
Sale of mortgage loans in the secondary market | 1,480 | 3,828 |
Loans sold with recourse provisions | 14,500 | 20,800 |
Amount of uninsured cash | 67,700 | 48,200 |
Cash Management Program [Member] | ||
Customer Funds | 69,400 | 107,000 |
Cash Management Program [Member] | Swap | ||
Investment securities pledged | 5,300 | 31,500 |
Standby Letters of Credit [Member] | ||
Other commitment | 25,800 | 21,700 |
Commitments to Extend Credit [Member] | ||
Other commitment | $ 1,700,000 | $ 1,200,000 |
Note 20 - Parent Company Only_3
Note 20 - Parent Company Only Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and due from banks | $ 59,723 | $ 37,490 | ||
Interest-bearing deposits at financial institutions | 67,360 | 75,292 | ||
Securities available for sale, at fair value | 340,960 | 337,830 | ||
Loans/leases receivable held for investment | 6,137,391 | 4,676,304 | ||
Premises and equipment, net | 117,948 | 78,530 | ||
Other assets | 186,418 | 93,412 | ||
Total assets | 7,948,837 | 6,096,132 | $ 5,705,043 | |
Subordinated notes | 232,662 | 113,850 | ||
Junior subordinated debentures | 48,602 | 38,155 | ||
Other liabilities | 165,301 | 100,410 | ||
Total liabilities | 7,176,113 | 5,419,122 | ||
Common stock | 16,796 | 15,613 | ||
Additional paid-in capital | 370,712 | 273,768 | ||
Retained earnings | 450,114 | 386,077 | ||
Total stockholders' equity | 772,724 | 677,010 | $ 593,793 | $ 535,351 |
Total liabilities and stockholders' equity | 7,948,837 | 6,096,132 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Cash and due from banks | 84,172 | 41,531 | ||
Interest-bearing deposits at financial institutions | 5,750 | |||
Premises and equipment, net | 9,639 | 8,632 | ||
Other assets | 10,157 | 7,716 | ||
Total assets | 1,077,137 | 838,598 | ||
Subordinated notes | 232,662 | 113,850 | ||
Junior subordinated debentures | 48,602 | 38,155 | ||
Other liabilities | 23,149 | 9,583 | ||
Total liabilities | 304,413 | 161,588 | ||
Common stock | 16,796 | 15,613 | ||
Additional paid-in capital | 370,712 | 273,768 | ||
Retained earnings | 450,114 | 386,077 | ||
Accumulated other comprehensive income (loss) | (64,898) | 1,552 | ||
Total stockholders' equity | 772,724 | 677,010 | ||
Total liabilities and stockholders' equity | 1,077,137 | 838,598 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Bank Subsidiaries [Member] | ||||
Investment in bank subsidiaries | 965,973 | 769,628 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Non-bank Subsidiaries [Member] | ||||
Investment in bank subsidiaries | $ 7,196 | $ 5,341 |
Note 20 - Parent Company Only_4
Note 20 - Parent Company Only Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Securities gains | $ (88) | $ 2,484 | ||||
Revenue | $ 373,300 | 300,577 | 312,171 | |||
Total interest expense | 61,451 | 21,922 | 31,423 | |||
Salaries and employee benefits | 115,368 | 100,907 | 96,268 | |||
Acquisition costs | 3,715 | 624 | ||||
Post-acquisition compensation, transition and integration costs | 5,526 | 214 | ||||
Disposition costs | 13 | 690 | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | 500 | ||
Income before taxes | 113,549 | 121,467 | 73,289 | |||
Income tax benefit | (14,483) | (22,562) | (12,707) | |||
Net income | 99,066 | 98,905 | 60,582 | |||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||||
Total interest income | 26 | 3 | 29 | |||
Other | (53) | 853 | 289 | |||
Revenue | 130,208 | 118,720 | 79,681 | |||
Total interest expense | 11,836 | 8,482 | 6,662 | |||
Salaries and employee benefits | 15,551 | 12,446 | 11,825 | |||
Professional fees | 1,789 | 1,983 | 2,558 | |||
Acquisition costs | 3,715 | 624 | ||||
Post-acquisition compensation, transition and integration costs | 5,526 | 145 | ||||
Disposition costs | 13 | 312 | ||||
Goodwill impairment | 500 | |||||
Other | 3,331 | 2,784 | 2,505 | |||
Total expenses | 41,748 | 26,332 | 24,507 | |||
Income before taxes | 88,460 | 92,388 | 55,174 | |||
Income tax benefit | 10,606 | 6,517 | 5,408 | |||
Net income | 99,066 | 98,905 | 60,582 | |||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | ||||||
Equity in net income (loss) of bank subsidiaries | 128,941 | 117,408 | 79,624 | |||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | ||||||
Equity in net income (loss) of bank subsidiaries | $ 1,294 | $ 456 | $ (261) |
Note 20 - Parent Company Only_5
Note 20 - Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2022 | Apr. 01, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 99,066 | $ 98,905 | $ 60,582 | ||||
Deferred income taxes | (4,682) | 15,272 | (14,530) | ||||
Accretion of acquisition fair value adjustments, net | (8,581) | (1,340) | (3,271) | ||||
Depreciation | 7,662 | 5,359 | 5,333 | ||||
Deferred compensation expense accrued | 4,062 | 4,580 | 3,821 | ||||
Stock-based compensation expense | 2,438 | 2,352 | 2,150 | ||||
Securities gains, net | 88 | (2,484) | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | 500 | |||
Loss on liability extinguishment, net | 3,907 | ||||||
Net increase (decrease) in interest-bearing deposits at financial institutions | 25,066 | 11,304 | 61,295 | ||||
Purchases | (230,501) | (173,204) | (356,127) | ||||
Calls, maturities and redemptions | 43,638 | 106,442 | 53,007 | ||||
Sales | 111,375 | 23,874 | 38,562 | ||||
Net cash paid for acquisition | (26,871) | ||||||
Purchase of premises and equipment | (33,261) | (13,981) | (4,268) | ||||
Net cash provided by (used in) investing activities | (634,692) | (411,771) | (704,482) | ||||
Proceeds from subordinated notes | $ 20,000 | 100,000 | 50,000 | ||||
Proceeds from issuance of common stock, net | 422 | 670 | 1,360 | ||||
Repurchase and cancellation of shares | (52,954) | (14,168) | (3,779) | ||||
Net cash provided by (used in) financing activities | 538,226 | 299,714 | 577,380 | ||||
Net increase (decrease) in cash and due from banks | 22,233 | (23,839) | (14,925) | ||||
Parent Company [Member] | Reportable Legal Entities [Member] | |||||||
Net income | 99,066 | 98,905 | 60,582 | ||||
Deferred income taxes | (2,443) | (1,093) | 6,909 | ||||
Accretion of acquisition fair value adjustments, net | 137 | 321 | 378 | ||||
Depreciation | 477 | 486 | 454 | ||||
Deferred compensation expense accrued | 4,062 | 573 | |||||
Stock-based compensation expense | 2,438 | 2,352 | 2,150 | ||||
Loss (gain) on sale of subsidiary/certain assets and liabilities of subsidiary | 158 | ||||||
Gain on sale of fixed assets | 155 | ||||||
Goodwill impairment | 500 | ||||||
Decrease (increase) in other assets | 621 | 5 | (7,380) | ||||
Increase (decrease) in other liabilities | 10,827 | (14,702) | (5,923) | ||||
Net cash provided by (used in) operating activities | 20,990 | (30,832) | (21,495) | ||||
Net increase (decrease) in interest-bearing deposits at financial institutions | 5,950 | 1,450 | (1,599) | ||||
Net cash received in dissolution of subsidiary | 8,450 | ||||||
Net cash paid for acquisition | (26,039) | ||||||
Net cash received in sale of subsidiary | 195 | ||||||
Purchase of premises and equipment | (1,484) | (31) | (272) | ||||
Net cash provided by (used in) investing activities | (21,873) | 1,044 | 6,774 | ||||
Proceeds from subordinated notes | 100,000 | 50,000 | |||||
Payment of cash dividends on common and preferred stock | (3,944) | (3,793) | (3,779) | ||||
Proceeds from issuance of common stock, net | 422 | 670 | 1,360 | ||||
Repurchase and cancellation of shares | (52,954) | (14,168) | (3,779) | ||||
Net cash provided by (used in) financing activities | 43,524 | (17,291) | 43,802 | ||||
Net increase (decrease) in cash and due from banks | 42,641 | (47,079) | 29,081 | ||||
Cash and due from banks, beginning | 41,531 | 88,610 | 59,529 | ||||
Cash and due from banks, ending | 84,172 | 41,531 | 88,610 | ||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | |||||||
Earnings of bank subsidiaries | (128,941) | (117,408) | (79,624) | ||||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | |||||||
Earnings of bank subsidiaries | (1,294) | (456) | 261 | ||||
Distributions from bank subsidiaries | 40 | 30 | $ 40 | ||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | |||||||
Distributions from bank subsidiaries | 36,000 | ||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | |||||||
Capital infusion to subsidiaries | $ (300) | $ (375) |
Note 21 - Fair Value (Details)
Note 21 - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities available for sale, at fair value | $ 340,960 | $ 337,830 |
Derivatives | 177,631 | 222,220 |
Derivatives | 200,701 | 225,135 |
Interest rate swap | ||
Derivatives | 166,614 | 221,055 |
Derivatives | 166,614 | 221,055 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 177,631 | 222,220 |
Assets Fair Value | 518,591 | 560,050 |
Liabilities Fair Value | 200,701 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 200,701 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 177,631 | 222,220 |
Assets Fair Value | 518,591 | 560,050 |
Liabilities Fair Value | 200,701 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | 200,701 | 225,135 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets Fair Value | 30,909 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 30,909 | |
U.S. treasuries and govt. sponsored agency securities | ||
Securities available for sale, at fair value | 16,981 | 23,328 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 16,981 | 23,328 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 16,981 | 23,328 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 66,215 | 94,323 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 66,215 | 94,323 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 66,215 | 94,323 |
Asset-backed securities | ||
Securities available for sale, at fair value | 18,728 | 27,124 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 18,728 | 27,124 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 18,728 | 27,124 |
Municipal securities. | ||
Securities available for sale, at fair value | 193,178 | 168,266 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 193,178 | 168,266 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 193,178 | 168,266 |
Other securities | ||
Securities available for sale, at fair value | 45,858 | 24,789 |
Other securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 45,858 | 24,789 |
Other securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 45,858 | 24,789 |
Impaired Loans Leases [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets Fair Value | 30,765 | 6,618 |
Impaired Loans Leases [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 30,765 | $ 6,618 |
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets Fair Value | 144 | |
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 144 |
Note 21 - Fair Value - Quantita
Note 21 - Fair Value - Quantitative Information About Level Fair Value Measurements (Details) - Valuation Technique, Appraisal of Collateral [Member] - Measurement Input, Appraised Value [Member] $ in Thousands | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) |
Impaired Loans Leases [Member] | ||
Fair value | $ | $ 30,765 | $ 6,618 |
Valuation technique | Valuation Technique, Appraisal of Collateral [Member] | |
Unobservable input | Measurement Input, Appraised Value [Member] | |
Impaired Loans Leases [Member] | Minimum | ||
Impaired loans/leases, measurement input | (10) | |
Impaired Loans Leases [Member] | Maximum | ||
Impaired loans/leases, measurement input | (30) | |
Other Real Estate Owned [Member] | ||
Fair value | $ | $ 144 | |
Valuation technique, OREO | Valuation Technique, Appraisal of Collateral [Member] | |
Unobservable input, OREO | Measurement Input, Appraised Value [Member] | |
Other Real Estate Owned [Member] | Minimum | ||
OREO, measurement input | 0 | |
Other Real Estate Owned [Member] | Maximum | ||
OREO, measurement input | (35) |
Note 21 - Fair Value - Carrying
Note 21 - Fair Value - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest-bearing deposits at financial institutions | $ 67,360 | $ 75,292 | ||
Securities held to maturity, fair value | 535,636 | 522,297 | ||
Securities available for sale, at fair value | 340,960 | 337,830 | ||
Derivatives | 177,631 | 222,220 | ||
Subordinated notes | $ 20,000 | 100,000 | $ 50,000 | |
Derivatives | 200,701 | 225,135 | ||
Interest rate cap | ||||
Derivatives | 2,213 | 238 | ||
Interest rate swap | ||||
Derivatives | 166,614 | 221,055 | ||
Derivatives | 166,614 | 221,055 | ||
Fair Value, Inputs, Level 1 [Member] | Carrying Value | ||||
Cash and due from banks | 59,723 | 37,490 | ||
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value | ||||
Cash and due from banks | 59,723 | 37,490 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||||
Federal funds sold | 56,910 | 12,370 | ||
Securities held to maturity, fair value | 587,142 | 472,385 | ||
Securities available for sale, at fair value | 340,960 | 337,830 | ||
Loans/leases receivable, net | 6,022,679 | 4,595,283 | ||
Short-term borrowings | 129,630 | 3,800 | ||
FHLB advances | 415,000 | 15,000 | ||
Subordinated notes | 232,662 | 113,850 | ||
Junior subordinated debentures | 48,602 | 38,155 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Non-maturity Deposits [Member] | ||||
Deposits | 5,199,633 | 4,501,424 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Time Deposits [Member] | ||||
Deposits | 784,584 | 421,348 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate cap | ||||
Derivatives | 177,631 | 222,220 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate swap | ||||
Derivatives | 200,701 | 225,135 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 67,360 | 75,292 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||||
Federal funds sold | 56,910 | 12,370 | ||
Securities held to maturity, fair value | 535,636 | 522,297 | ||
Securities available for sale, at fair value | 340,960 | 337,830 | ||
Loans/leases receivable, net | 5,896,443 | 4,478,899 | ||
Short-term borrowings | 129,630 | 3,800 | ||
FHLB advances | 415,000 | 15,000 | ||
Subordinated notes | 250,613 | 116,203 | ||
Junior subordinated debentures | 41,545 | 31,072 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Non-maturity Deposits [Member] | ||||
Deposits | 5,199,633 | 4,501,424 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Time Deposits [Member] | ||||
Deposits | 766,294 | 419,453 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate cap | ||||
Derivatives | 177,631 | 222,220 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate swap | ||||
Derivatives | 200,701 | 225,135 | ||
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 67,360 | 75,292 | ||
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||||
Loans/leases receivable, net | 28,486 | 6,128 | ||
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||||
Loans/leases receivable, net | 30,765 | 6,618 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Derivatives | 177,631 | 222,220 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||||
Derivatives | 200,701 | 225,135 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivatives | 177,631 | 222,220 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||||
Derivatives | $ 200,701 | $ 225,135 |
Note 22 - Business Segment In_3
Note 22 - Business Segment Information - (Details) | Dec. 31, 2022 subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Note 22 - Business Segment In_4
Note 22 - Business Segment Information - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 373,300 | $ 300,577 | $ 312,171 | |
Net interest income | 231,120 | 178,233 | 166,950 | |
Provision for credit losses | 8,284 | 3,486 | 55,704 | |
Net income (loss) from continuing operations | 99,066 | 98,905 | 60,582 | |
Goodwill | 137,607 | 74,066 | 74,066 | $ 74,748 |
Intangibles | 16,759 | 9,349 | 11,381 | |
Total assets | 7,948,837 | 6,096,132 | 5,705,043 | |
Intersegment Eliminations [Member] | ||||
Total revenue | (132,322) | (118,930) | (262) | |
Net interest income | 1,388 | 1,263 | 1,031 | |
Net income (loss) from continuing operations | (130,177) | (117,834) | ||
Total assets | (1,079,313) | (973,102) | (324,971) | |
Commercial Banking | QCBT | ||||
Goodwill | 3,223 | 3,223 | 3,223 | |
Commercial Banking | QCBT | Operating Segments [Member] | ||||
Total revenue | 103,621 | 88,689 | 92,336 | |
Net interest income | 71,604 | 66,232 | 63,366 | |
Provision for credit losses | 1,073 | 1,519 | 21,612 | |
Net income (loss) from continuing operations | 33,850 | 34,616 | 21,557 | |
Goodwill | 3,223 | 3,223 | 3,223 | |
Total assets | 2,312,013 | 2,142,344 | 2,153,773 | |
Commercial Banking | CRBT | ||||
Goodwill | 14,980 | 14,980 | 14,980 | |
Commercial Banking | CRBT | Operating Segments [Member] | ||||
Total revenue | 128,070 | 129,080 | 125,416 | |
Net interest income | 65,392 | 57,354 | 52,857 | |
Provision for credit losses | (961) | (697) | 19,438 | |
Net income (loss) from continuing operations | 53,576 | 55,411 | 33,890 | |
Goodwill | 14,980 | 14,980 | 14,980 | |
Intangibles | 1,225 | 1,702 | 2,189 | |
Total assets | 2,185,500 | 2,030,279 | 1,957,695 | |
Commercial Banking | CSB | ||||
Goodwill | 9,888 | 9,888 | 9,888 | |
Commercial Banking | CSB | Operating Segments [Member] | ||||
Total revenue | 54,129 | 43,945 | 50,448 | |
Net interest income | 40,781 | 35,512 | 31,570 | |
Provision for credit losses | (1,335) | 2,219 | 9,243 | |
Net income (loss) from continuing operations | 17,225 | 12,802 | 11,379 | |
Goodwill | 9,888 | 9,888 | 9,888 | |
Intangibles | 2,027 | 2,653 | 3,305 | |
Total assets | 1,297,812 | 1,168,606 | 1,004,183 | |
Commercial Banking | SFCB. | ||||
Goodwill | 109,516 | 45,975 | 45,975 | |
Commercial Banking | SFCB. | Operating Segments [Member] | ||||
Total revenue | 87,880 | 38,342 | 42,036 | |
Net interest income | 63,734 | 26,351 | 24,759 | |
Provision for credit losses | 9,507 | 445 | 5,411 | |
Net income (loss) from continuing operations | 24,289 | 14,579 | 12,797 | |
Goodwill | 109,516 | 45,975 | 45,975 | |
Intangibles | 13,507 | 4,994 | 5,887 | |
Total assets | 2,146,474 | 882,885 | 779,956 | |
Other Segments | Operating Segments [Member] | ||||
Total revenue | 13,192,200 | 11,945,100 | 219,700 | |
Net interest income | (1,177,900) | (847,900) | (663,300) | |
Net income (loss) from continuing operations | 10,030,300 | 9,933,100 | (1,904,100) | |
Total assets | $ 108,635,100 | $ 84,512,000 | $ 13,440,700 |