Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Entity Registrant Name | Premier Financial Corp. | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000946647 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | PFC | |
City Area Code | 419 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address, Address Line One | 601 Clinton Street | |
Entity Address, City or Town | Defiance | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43512 | |
Entity File Number | 0-26850 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1803915 | |
Local Phone Number | 785-8700 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and amounts due from depository institutions | $ 71,096 | $ 88,257 |
Interest-bearing deposits | 50,631 | 39,903 |
Cash and cash equivalents, federal funds sold | 121,727 | 128,160 |
Securities available-for-sale, carried at fair value | 961,123 | 1,040,081 |
Equity securities, carried at fair value | 6,458 | 7,832 |
Loans held for sale, carried at fair value | 128,079 | 115,251 |
Loans receivable, net of allowance for credit losses of $75,921 at June 30, 2023 and $72,816 at December 31, 2022, respectively | 6,632,647 | 6,387,804 |
Mortgage servicing rights | 20,160 | 21,171 |
Accrued interest receivable | 30,056 | 28,709 |
Federal Home Loan Bank stock | 39,887 | 29,185 |
Bank owned life insurance | 171,856 | 170,713 |
Premises and equipment | 55,736 | 55,541 |
Real estate and other assets held for sale | 561 | 619 |
Goodwill | 295,602 | 317,988 |
Core deposit and other intangibles | 14,298 | 19,074 |
Other assets | 138,021 | 133,214 |
Total assets | 8,616,211 | 8,455,342 |
Liabilities: | ||
Deposits | 6,994,432 | 6,906,719 |
Advances from Federal Home Loan Bank | 455,000 | 428,000 |
Subordinated debentures | 85,166 | 85,103 |
Advance payments by borrowers | 26,045 | 34,188 |
Reserve for credit losses - unfunded commitments | 5,708 | 6,816 |
Other liabilities | 112,889 | 106,795 |
Total liabilities | 7,679,240 | 7,567,621 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value per share: 4,963,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value per share: 50,000,000 shares authorized; 43,297,260 and 43,297,260 shares issued and 35,726,703 and 35,591,277 shares outstanding at June 30, 2023 and December 31, 2022, respectively | 306 | 306 |
Additional paid-in capital | 689,579 | 691,453 |
Accumulated other comprehensive loss, net of tax of $(45,203) and $(46,323), respectively | (168,721) | (173,460) |
Retained earnings | 547,336 | 502,909 |
Treasury stock, at cost, 7,570,557 shares at June 30, 2023 and 7,705,983 shares at December 31, 2022 | (131,529) | (133,487) |
Total stockholders’ equity | 936,971 | 887,721 |
Total liabilities and stockholders’ equity | $ 8,616,211 | $ 8,455,342 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loans receivable, allowance (in dollars) | $ 75,921 | $ 72,816 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,963,000 | 4,963,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 43,297,260 | 43,297,260 |
Common stock, shares outstanding | 35,726,703 | 35,591,277 |
Accumulated other comprehensive loss, tax effect (in dollars) | $ (45,203) | $ (46,323) |
Treasury Stock, Common, Shares | 7,570,557 | 7,705,983 |
Cumulative Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 37,000 | 37,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Income | ||||
Loans | $ 81,616 | $ 56,567 | $ 157,674 | $ 111,808 |
Investment securities: | ||||
Taxable | 6,407 | 5,328 | 13,014 | 9,938 |
Non-taxable | 590 | 869 | 1,243 | 1,738 |
Interest-bearing deposits | 641 | 120 | 1,085 | 166 |
FHLB stock dividends | 905 | 174 | 1,299 | 233 |
Total interest income | 90,159 | 63,058 | 174,315 | 123,883 |
Interest Expense | ||||
Deposits | 26,825 | 2,671 | 48,283 | 4,893 |
FHLB advances and other | 8,217 | 527 | 13,554 | 540 |
Subordinated debentures | 1,125 | 763 | 2,199 | 1,459 |
Notes payable | 0 | 1 | 0 | 1 |
Total interest expense | 36,167 | 3,962 | 64,036 | 6,893 |
Net interest income | 53,992 | 59,096 | 110,279 | 116,990 |
Credit loss expense - loans and leases | 1,410 | 5,151 | 5,354 | 5,777 |
Credit loss (benefit) expense - unfunded commitments | (870) | 1,415 | (1,108) | 1,724 |
Net interest income after credit loss expense (benefit) | 53,452 | 52,530 | 106,033 | 109,489 |
Non-interest Income | ||||
Service fees and other charges | 7,190 | 6,676 | 13,618 | 12,676 |
Insurance commissions | 4,131 | 4,334 | 8,856 | 8,973 |
Mortgage banking income | 2,940 | 1,948 | 2,666 | 6,200 |
Gain on sale of non-mortgage loans | 71 | 0 | 71 | 0 |
Gain on sale insurance agency | 36,296 | 0 | 36,296 | 0 |
(Loss) gain on sale of securities available for sale | (7) | 0 | 27 | 0 |
Gain (loss) on equity securities | 71 | (1,161) | (1,374) | (1,804) |
Wealth management income | 1,537 | 1,414 | 3,022 | 2,891 |
Income from Bank Owned Life Insurance | 1,015 | 983 | 2,432 | 1,979 |
Other non-interest income | 102 | 171 | 194 | 313 |
Total non-interest income | 53,346 | 14,365 | 65,808 | 31,228 |
Non-interest Expense | ||||
Compensation and benefits | 24,175 | 22,334 | 49,833 | 47,875 |
Occupancy | 3,320 | 3,494 | 6,894 | 7,194 |
FDIC insurance premium | 1,786 | 802 | 3,074 | 1,395 |
Financial institutions tax | 961 | 1,074 | 1,813 | 2,265 |
Data processing | 3,640 | 3,442 | 7,503 | 6,777 |
Amortization of intangibles | 1,223 | 1,380 | 2,493 | 2,818 |
Transaction costs | 3,652 | 0 | 3,652 | 0 |
Other non-interest expense | 5,738 | 6,563 | 12,024 | 12,060 |
Total non-interest expense | 44,495 | 39,089 | 87,286 | 80,384 |
Income before income taxes | 62,303 | 27,806 | 84,555 | 60,333 |
Income tax expense | 13,912 | 5,446 | 18,015 | 11,616 |
Net income | $ 48,391 | $ 22,360 | $ 66,540 | $ 48,717 |
Earnings per common share | ||||
Basic | $ 1.35 | $ 0.63 | $ 1.86 | $ 1.36 |
Diluted | $ 1.35 | $ 0.63 | $ 1.86 | $ 1.36 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 48,391 | $ 22,360 | $ 66,540 | $ 48,717 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available for sale | (15,290) | (53,212) | 3,109 | (127,405) |
Reclassification adjustment for securities (gains) losses included in net income | 7 | 0 | (27) | 0 |
Income tax effect | 3,210 | 11,174 | (647) | 26,754 |
Net of tax amount | (12,073) | (42,038) | 2,435 | (100,651) |
Unrealized gain (loss) on balance sheet swap | (1,563) | (13,710) | 7,023 | (29,951) |
Reclassification adjustment for cash flow hedge derivatives gains included in net income | (2,511) | 2,041 | (4,460) | 1,248 |
Income tax effect | 1,135 | 2,450 | (259) | 6,028 |
Net of tax amount | (2,939) | (9,219) | 2,304 | (22,675) |
Total other comprehensive income (loss) | (15,012) | (51,257) | 4,739 | (123,326) |
Comprehensive income (loss) | $ 33,379 | $ (28,897) | $ 71,279 | $ (74,609) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2021 | $ 1,023,496 | $ 306 | $ 691,132 | $ (3,428) | $ 443,517 | $ (108,031) |
Balance (in shares) at Dec. 31, 2021 | 36,383,613 | |||||
Net Income (Loss) | 26,357 | 26,357 | ||||
Other comprehensive income (loss) | (72,069) | (72,069) | ||||
Deferred compensation plan | (14) | 14 | ||||
Deferred compensation plan (in shares) | 9,933 | |||||
Vesting of incentive plans | 1,006 | 760 | 246 | |||
Vesting of incentive plans (in shares) | 5,660 | |||||
Restricted share issuance | (246) | (597) | 351 | |||
Restricted share issuance (in shares) | 19,936 | |||||
Restricted share forfeitures | (216) | 69 | (285) | |||
Restricted share forfeitures (in shares) | (5,398) | |||||
Shares repurchased | (24,245) | (24,245) | ||||
Shares repurchased (In Shares) | (793,166) | |||||
Common stock dividend payment | (10,787) | (10,787) | ||||
Balance at Mar. 31, 2022 | 943,296 | $ 306 | 691,350 | (75,497) | 459,087 | (131,950) |
Balance (in shares) at Mar. 31, 2022 | 35,620,578 | |||||
Balance at Dec. 31, 2021 | 1,023,496 | $ 306 | 691,132 | (3,428) | 443,517 | (108,031) |
Balance (in shares) at Dec. 31, 2021 | 36,383,613 | |||||
Net Income (Loss) | 48,717 | |||||
Other comprehensive income (loss) | (123,326) | |||||
Balance at Jun. 30, 2022 | 901,147 | $ 306 | 690,905 | (126,754) | 470,779 | (134,089) |
Balance (in shares) at Jun. 30, 2022 | 35,555,478 | |||||
Balance at Mar. 31, 2022 | 943,296 | $ 306 | 691,350 | (75,497) | 459,087 | (131,950) |
Balance (in shares) at Mar. 31, 2022 | 35,620,578 | |||||
Net Income (Loss) | 22,360 | 22,360 | ||||
Other comprehensive income (loss) | (51,257) | (51,257) | ||||
Deferred compensation plan | (14) | 14 | ||||
Stock based compensation expenses | 157 | 157 | ||||
Vesting of incentive plans | (167) | 167 | ||||
Vesting of incentive plans (in shares) | 5,547 | |||||
Restricted share issuance | (421) | 421 | ||||
Restricted share issuance (in shares) | 24,256 | |||||
Restricted share forfeitures | (118) | (118) | ||||
Restricted share forfeitures (in shares) | (4,033) | |||||
Shares repurchased | (2,623) | (2,623) | ||||
Shares repurchased (In Shares) | (90,870) | |||||
Common stock dividend payment | (10,668) | (10,668) | ||||
Balance at Jun. 30, 2022 | 901,147 | $ 306 | 690,905 | (126,754) | 470,779 | (134,089) |
Balance (in shares) at Jun. 30, 2022 | 35,555,478 | |||||
Balance at Dec. 31, 2022 | 887,721 | $ 306 | 691,453 | (173,460) | 502,909 | (133,487) |
Balance (in shares) at Dec. 31, 2022 | 35,591,277 | |||||
Net Income (Loss) | 18,149 | 18,149 | ||||
Other comprehensive income (loss) | 19,751 | 19,751 | ||||
Deferred compensation plan | 75 | (75) | ||||
Deferred compensation plan (in shares) | 9,196 | |||||
Stock based compensation expenses | 125 | 112 | 13 | |||
Stock based compensation expenses, (in shares) | 753 | |||||
Vesting of incentive plans | (1,078) | 1,078 | ||||
Vesting of incentive plans (in shares) | 62,061 | |||||
Restricted share issuance | (755) | 1,051 | ||||
Restricted share issuance (in shares) | 60,526 | |||||
Restricted share forfeitures | (544) | (544) | ||||
Restricted share forfeitures (in shares) | (22,178) | |||||
Shares repurchased | (11) | (11) | ||||
Shares repurchased (In Shares) | (391) | |||||
Common stock dividend payment | (11,037) | (11,037) | ||||
Balance at Mar. 31, 2023 | 914,450 | $ 306 | 689,807 | (153,709) | 510,021 | (131,975) |
Balance (in shares) at Mar. 31, 2023 | 35,701,244 | |||||
Balance at Dec. 31, 2022 | 887,721 | $ 306 | 691,453 | (173,460) | 502,909 | (133,487) |
Balance (in shares) at Dec. 31, 2022 | 35,591,277 | |||||
Net Income (Loss) | 66,540 | |||||
Other comprehensive income (loss) | 4,739 | |||||
Balance at Jun. 30, 2023 | 936,971 | $ 306 | 689,579 | (168,721) | 547,336 | (131,529) |
Balance (in shares) at Jun. 30, 2023 | 35,726,703 | |||||
Balance at Mar. 31, 2023 | 914,450 | $ 306 | 689,807 | (153,709) | 510,021 | (131,975) |
Balance (in shares) at Mar. 31, 2023 | 35,701,244 | |||||
Net Income (Loss) | 48,391 | 48,391 | ||||
Other comprehensive income (loss) | (15,012) | (15,012) | ||||
Deferred compensation plan | 0 | (13) | 13 | |||
Stock based compensation expenses | 303 | 282 | 21 | |||
Stock based compensation expenses, (in shares) | 1,232 | |||||
Vesting of incentive plans | (72) | 72 | ||||
Vesting of incentive plans (in shares) | 4,173 | |||||
Restricted share issuance | 0 | (461) | 461 | |||
Restricted share issuance (in shares) | 26,545 | |||||
Restricted share forfeitures | (85) | (36) | (121) | |||
Restricted share forfeitures (in shares) | (6,491) | |||||
Shares repurchased | 0 | |||||
Common stock dividend payment | (11,076) | (11,076) | ||||
Balance at Jun. 30, 2023 | $ 936,971 | $ 306 | $ 689,579 | $ (168,721) | $ 547,336 | $ (131,529) |
Balance (in shares) at Jun. 30, 2023 | 35,726,703 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividend payment per share | $ 0.31 | $ 0.31 | $ 0.3 | $ 0.3 | $ 0.62 | $ 0.6 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||
Net Income (Loss) | $ 66,540 | $ 48,717 |
Items not requiring (providing) cash: | ||
Provision for credit losses | 4,246 | 7,501 |
Depreciation | 2,657 | 2,884 |
Amortization of premium and discounts on loans, securities, deposits and debt obligations | 2,813 | 5,162 |
Amortization of mortgage servicing rights, net of impairment charges/recoveries | 2,472 | 1,251 |
Amortization of intangibles | 2,493 | 2,818 |
Change in deferred taxes | (1,645) | (606) |
Proceeds from the sale of loans held for sale | 136,185 | 187,315 |
Originations of loans held for sale | (149,069) | (168,157) |
Mortgage banking gain, net | (1,405) | (3,710) |
Gain on sale of insurance agency, net | (32,644) | 0 |
Loss (gain) on sale / write-down of real estate and other assets held for sale | 34 | (65) |
Gain on sale of available for sale securities | (27) | 0 |
Loss on equity securities | 1,374 | 1,804 |
Stock based compensation expense | 724 | 917 |
Restricted stock forfeitures for taxes and option exercises | (629) | (334) |
Income from bank owned life insurance | (2,009) | (1,979) |
Changes in: | ||
Accrued interest receivable and other assets | (7,067) | (35,105) |
Other liabilities | 11,710 | 24,327 |
Net cash provided by operating activities | 36,753 | 72,740 |
Investing Activities | ||
Proceeds from maturities, calls and pay-downs of available-for-sale securities | 60,657 | 56,756 |
Proceeds from sale of available-for-sale securities | 21,377 | 0 |
Proceeds from sale of premises and equipment, real estate and other assets held for sale | 580 | 309 |
Purchases of available-for-sale securities | (2,346) | (122,457) |
Purchases of equity securities | 0 | (1,000) |
Net change in Federal Home Loan Bank stock | (10,702) | (12,406) |
Cash received in disposition | 47,354 | 0 |
Purchases of premises and equipment, net | (3,294) | (1,342) |
Investment in bank owned life insurance | 866 | 0 |
Net increase in loans receivable | (242,558) | (601,854) |
Net cash used in investing activities | (128,066) | (681,994) |
Financing Activities | ||
Net increase in deposits and advance payments by borrowers | 80,004 | 250,405 |
Net change in Federal Home Loan Bank advances | 27,000 | 380,000 |
Net cash paid for repurchase of common stock | (11) | (26,868) |
Cash dividends paid on common stock | (22,113) | (21,455) |
Net cash provided by financing activities | 84,880 | 582,082 |
Decrease in cash and cash equivalents | (6,433) | (27,172) |
Cash and cash equivalents at beginning of period | 128,160 | 161,566 |
Cash and cash equivalents at end of period | 121,727 | 134,394 |
Supplemental cash flow information: | ||
Interest paid | 59,870 | 6,707 |
Income taxes paid | 7,488 | 7,110 |
Initial recognition of right-of-use asset | 25 | 0 |
Initial recognition of lease liability | 25 | 0 |
Transfers from loans to real estate and other assets held for sale | $ 0 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 48,391 | $ 18,149 | $ 22,360 | $ 26,357 | $ 66,540 | $ 48,717 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | (a) None. (b) None. (c) On May 4, 2023 , Mr. Dennis E. Rose Jr. , the Chief Strategy Officer of the Company, adopted a trading arrangement for the sale of shares of stock (a “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c). Mr. Rose Jr.’s Rule 10b5-1 Trading Plan, which shall terminate on December 20, 2024, provides for the sale of up to 13,309 shares of common stock pursuant to the terms of the Rule 10b5-1 Trading Plan. |
Name | Mr. Dennis E. Rose Jr. |
Title | Chief Strategy Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 4, 2023 |
Aggregate Available | 13,309 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Premier Financial Corp. (“Premier” or the “Company”) is a financial holding company that conducts business through its wholly-owned subsidiaries, Premier Bank (the "Bank"), First Insurance Group of the Midwest, Inc. (“First Insurance”), PFC Risk Management Inc. (“PFC Risk Management”), and PFC Capital, LLC (“PFC Capital”). All significant intercompany transactions and balances are eliminated in consolidation. Premier’s stock is traded on the NASDAQ Global Select Market under the ticker PFC. The Bank is primarily engaged in community banking. It attracts deposits from the general public through its offices and website, and uses those and other available sources of funds to originate residential real estate loans, commercial real estate loans, commercial loans, home improvement and home equity loans and consumer loans. In addition, the Bank invests in U.S. Treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities ("MBS") that are issued by federal agencies, collateralized mortgage obligations (“CMOs”), and corporate bonds. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a member of the Federal Home Loan Bank (“FHLB”) System. PFC Risk Management is a wholly-owned insurance company subsidiary of the Company that insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. PFC Risk Management pools resources with several other similar insurance company subsidiaries of financial institutions to help minimize the risk allocable to each participating insurer. PFC Capital was formed as an Ohio limited liability company in 2016 for the purpose of providing mezzanine funding for customers. Mezzanine loans are offered by PFC Capital to customers in the Company’s market area and are expected to be repaid from the cash flow from operations of the business. The consolidated condensed statement of financial condition at December 31, 2022, was derived from the audited financial statements at that date, which were included in Premier’s Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Form 10-K"). First Insurance was an insurance agency that conducted business throughout Premier’s markets. First Insurance offered property and casualty insurance, life insurance and group health insurance. On June 30, 2023, the Company completed the sale of substantially all of the assets (including $ 24.7 million of goodwill and intangibles) of First Insurance Group to Risk Strategies Corporation (“Buyer”). Consideration included a combination of cash and a subordinated note resulting in net cash received of $ 47.4 million after certain transaction costs at closing, the assumption of certain leases, and contingent consideration subject to certain performance criteria by the Buyer to be determined after the year ended December 31, 2026. The Company recorded a pre-tax gain on sale of $ 36.3 million, transaction costs of $ 3.7 million and taxes of $ 8.5 million for a $ 24.1 million increase to equity at June 30, 2023. The accompanying consolidated condensed financial statements as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022 have been prepared by the Company without audit and do not include information or footnotes necessary for the complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). These consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the 2022 Form 10-K. However, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for the fair presentation of the financial statements have been made. The results for the three and six months ended June 30, 2023 , are not necessarily indicative of the results that may be expected for the entire year. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Accounting Standards Update ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-4, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to adoption of alternative reference rates which include Secured Overnight Financing Rate (“SOFR”). The Company identified outstanding loans with LIBOR-based rates and obtained updated reference rate language either at the time of renewal or through separate amendment, or otherwise established that an alternate reference rate will apply after June 30, 2023. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. On December 21, 2022, the FASB issued ASU 2022-06, "Reference Rare Reform (Topic 848): Deferral of the Sunset of Date of Topic 848," which extends the sunset date of ASC Topic 848, "Reference Rate Reform," to December 31, 2024. ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued ASU 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which eliminated troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and added new vintage disclosures for gross write-offs. The elimination of TDR accounting could be adopted either prospectively for loan modifications or on a modified retrospective basis that could result in a cumulative effect adjustment to retained earnings in the period of adoption. The Company adopted ASU 2022-02 on January 1, 2023 on a modified retrospective basis. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Therefore, the Company did not make an adjustment to retained earnings. The effect of adoption is included in provision for 2023. ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements: On March 27, 2023, the FASB issued ASU 2023-01 “Leases (Topic 842): Common Control Arrangements” in order to improve the guidance for applying this topic to arrangements between entities under common control. This ASU also requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, however, if an entity adopts these amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes the interim period. The Company does not anticipate any material effect on the Company upon adoption. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 3. Fair Value FASB ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. FASB ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on the best information available. In that regard, FASB ASC Topic 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by a correlation or other means. • Level 3 : Unobservable inputs for determining fair value of assets and liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Available-for-sale securities - Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs where the Company obtains fair value measurements from an independent pricing service that uses matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows and the bonds’ terms and conditions, among other things. Securities in Level 2 include U.S. federal government agencies, MBS, asset-backed securities ("ABS"), corporate bonds and municipal securities. Equity securities – These securities are reported at fair value utilizing Level 1 inputs where the Company obtains fair value measurements from a broker. Loans held for sale, carried at fair value – The Company has elected the fair value option for all loans held for sale originated after January 31, 2020. The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 5 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3). Collateral dependent loans - Fair values for individually analyzed collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor’s required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value. Real estate held for sale - Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are then reviewed monthly by members of the asset review committee for valuation changes and are accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both individually analyzed collateral-dependent loans and other real estate owned ("OREO") are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s asset quality or collections department reviews the assumptions and approaches utilized in the appraisal. Appraisal values are discounted from 0 % to 30 % to account for other factors that may impact the value of collateral. In determining the value of individually analyzed collateral dependent loans and OREO, significant unobservable inputs may be used, which include but are not limited to: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return. Mortgage servicing rights - On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level based on a model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and are validated against available market data (Level 2). Mortgage banking derivative - The fair value of mortgage banking derivatives are evaluated monthly based on derivative valuation models using quoted prices for similar assets adjusted for specific attributes of the commitments and other observable market data at the valuation date (Level 2). Interest rate swaps – The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company then enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate swap extended to the customer. The interest rate swaps are derivative instruments which are carried at fair value on the statement of financial condition. The Company uses an independent third party to perform a market valuation analysis for both swap positions (Level 2). The Company also enters into cash flow and fair value hedge derivative instruments to hedge the risk of variability in cash flows on the Company’s floating rate loan pool, fixed rate mortgage loan pool and FHLB advances. The Company uses an independent third party to perform a market valuation analysis for these derivatives (Level 2). The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Recurring Basis June 30, 2023 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 96,176 $ — $ 96,176 Mortgage-backed securities — 161,199 — 161,199 Collateralized mortgage obligations — 238,993 — 238,993 Asset-backed securities — 151,087 — 151,087 Corporate bonds — 60,540 — 60,540 Obligations of state and political subdivisions — 204,818 — 204,818 US Treasuries 48,310 — — 48,310 Equity securities 6,458 — — 6,458 Loans held for sale, at fair value — 16,617 111,462 128,079 Interest rate swaps — 3,179 — 3,179 Cash flow/ Fair value hedge derivative — 4,524 — 4,524 Mortgage banking derivatives — 3,426 — 3,426 Liabilities: Interest rate swaps — 3,179 — 3,179 Cash flow hedge derivatives — 38,796 — 38,796 December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 95,909 $ — $ 95,909 Mortgage-backed securities — 167,589 — 167,589 Collateralized mortgage obligations — 249,805 — 249,805 Asset-backed securities — 192,504 — 192,504 Corporate bonds — 64,482 — 64,482 Obligations of state and political subdivisions — 221,594 — 221,594 US Treasuries 48,198 — — 48,198 Equity securities 7,832 — — 7,832 Loans held for sale, at fair value — 23,589 91,662 115,251 Interest rate swaps — 4,494 — 4,494 Mortgage banking derivatives — 1,349 — 1,349 Liabilities: Interest rate swaps — 4,494 — 4,494 Cash flow hedge derivatives — 40,032 — 40,032 The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 . There were no securities that were measured at Level 3 for the three and six months ended June 30, 2023 and 2022. Construction loans held for sale Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance of recurring Level 3 assets at beginning of period $ 97,280 $ 116,484 $ 91,662 $ 134,167 Total gains (losses) for the period Included in change in fair value of loans held for sale ( 990 ) ( 6,331 ) 4,981 ( 19,790 ) Originations 24,321 37,264 47,502 73,607 Sales ( 9,149 ) ( 30,402 ) ( 32,683 ) ( 70,969 ) Balance of recurring Level 3 assets at end of period $ 111,462 $ 117,015 $ 111,462 $ 117,015 For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 111,462 Adjusted secondary market pricing Adjustments 0.00 % - 0.26 % December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 91,662 Adjusted secondary market pricing Adjustments 0.00 % - 1.04 % The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Non-Recurring Basis June 30, 2023 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 5,173 $ 5,173 Commercial — — 1,251 1,251 Mortgage servicing rights $ — $ 1,407 $ — $ 1,407 December 31, 2022 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 3,512 $ 3,512 Commercial — — 5,492 5,492 Mortgage servicing rights $ — $ 5,126 $ — $ 5,126 For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 6,424 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 13.73 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,146 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 28.29 % The Company has elected the fair value option for new applications accepted after January 31, 2020, and subsequently originated for residential mortgage and permanent construction loans held for sale. These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policies. The aggregate fair value of the residential mortgage loans held for sale at June 30, 2023 and December 31, 2022 was $ 16.6 million and $ 23.6 million, respectively, and they had a contractual balance of $ 17.4 million and $ 25.3 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three and six months ended June 30, 2023 , $ 21,000 and $ 389,000 , respectively, was recorded in gains on the sale of loans held for sale for the change in fair value. For the three and six months ended June 30, 2022 , $ 157,000 and $( 1.3 ) million, respectively, was recorded in gains (losses) on the sale of loans held for sale for the change in fair value. The aggregate fair value of the permanent construction loans held for sale at June 30, 2023 and December 31, 2022 , was $ 111.5 million and $ 91.7 million, respectively, and they had a contractual balance of $ 117.9 million and $ 103.1 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three and six months ended June 30, 2023 , $( 990,000 ) and $ 5.0 million, respectively, was recorded in gains (losses) on the sale of loans held for sale for the change in fair value. For the three and six months ended June 30, 2022 , $ 6.3 million and $ 19.8 million, respectively, was recorded in losses on the sale of loans held for sale for the change in fair value. Much of the information used to arrive at “fair value” is highly subjective and judgmental in nature and therefore the results may not be precise. Subjective factors include, among other things, estimated cash flows, risk characteristics and interest rates, all of which are subject to change. With the exception of investment securities, the Company’s financial instruments are not readily marketable and market prices do not exist. Since negotiated prices for the instruments, which are not readily marketable, depend greatly on the motivation of the buyer and seller, the amounts that will actually be realized or paid per settlement or maturity of these instruments could be significantly different. The carrying amount of cash and cash equivalents, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The Company’s loans were valued on an individual basis, with consideration given to the loans’ underlying characteristics, including account types, remaining terms (in months), annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loss exposures, and remaining balances. The model utilizes a discounted cash flow (“DCF”) approach to estimate the fair value of the loans using assumptions for the coupon rates, remaining maturities, prepayment speeds, projected default probabilities, losses given defaults, and estimates of prevailing discount rates. The DCF approach models the credit losses directly in the projected cash flows. The model applies various assumptions regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. The estimated fair value of individually analyzed loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All individually analyzed loans are classified as Level 3 within the valuation hierarchy. The fair value of non-interest bearing deposits are considered equal to the amount payable on demand at the reporting date (i.e. carrying value) and are classified as Level 1. The fair value of savings, checking and certain money market accounts are equal to their carrying amounts and are a Level 1 classification. Fair values of fixed rate certificates of deposit are estimated using a DCF calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. The carrying value of notes payable, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1. The fair values of securities sold under repurchase agreements are equal to their carrying amounts resulting in a Level 1 classification. The carrying value of floating rate subordinated debentures was considered to be the carrying value as the debt is floating rate and can be prepaid at any time without penalty. The carrying value of fixed rate subordinated debt is estimated using a DCF calculation that applies interest rates currently being offered in the market to the expected maturity of the debt resulting in a Level 2 classification. FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at June 30, 2023. The carrying value and estimated fair values of financial instruments at June 30, 2023 and December 31, 2022, were as follows: Fair Value Measurements at June 30, 2023 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 121,727 $ 121,727 $ 121,727 $ — $ — Federal Home Loan Bank Stock 39,887 N/A N/A N/A N/A Loans receivable, net 6,632,647 6,254,545 — — 6,254,545 Accrued interest receivable 30,056 30,056 30,056 — — Financial Liabilities: Deposits $ 6,994,432 $ 6,996,180 $ 5,359,067 $ 1,637,113 $ — Advances from Federal Home Loan Bank 455,000 455,038 — 455,038 — Subordinated debentures 85,166 72,675 — — 72,675 Fair Value Measurements at December 31, 2022 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 128,160 $ 128,160 $ 128,160 $ — $ — Federal Home Loan Bank Stock 29,185 N/A N/A N/A N/A Loans receivable, net 6,387,804 6,129,814 — — 6,129,814 Accrued interest receivable 28,709 28,709 28,709 — — Financial Liabilities: Deposits $ 6,906,719 $ 6,881,110 $ 5,852,952 $ 1,028,158 $ — Advances from Federal Home Loan Bank 428,000 427,999 — 427,999 $ — Subordinated debentures 85,103 76,989 — — 76,989 |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | 4. Stock Compensation Plans Premier has established equity based compensation plans for its directors and employees. On February 27, 2018, the Board adopted, and the shareholders approved at the 2018 Annual Shareholders Meeting, the Premier Financial Corp. 2018 Equity Incentive Plan (the “2018 Equity Plan”). The 2018 Equity Plan replaced all existing plans, although the Company’s former equity plans remain in existence to the extent there were outstanding grants thereunder at the time the 2018 Equity Plan was approved. In addition, as a result of the Company's merger (the "Merger") with United Community Federal Corp. ("UCFC"), Premier assumed certain outstanding stock options granted under UCFC’s Amended and Restated 2007 Long-Term Incentive Plan (the “UCFC 2007 Plan”) and UCFC’s 2015 Long Term Incentive Plan, which has since been renamed as the “Premier Financial Corp. 2015 Long Term Incentive Plan” (the “2015 Plan”). Premier also assumed the shares available for future issuance under the 2015 Plan as of the effective date of the Merger, with appropriate adjustments to the number of shares available to reflect the Merger. The stock options assumed from UCFC in the Merger remain subject to the terms of the 2015 Plan, but became exercisable solely to purchase shares of Premier, with appropriate adjustments to the number of shares subject to the assumed stock options and the exercise price of such stock options. Besides certain options previously issued under the First Defiance Financial Corp. 2010 Equity Incentive Plan, all awards currently outstanding are issued under the 2018 Equity Plan or the 2015 Plan. The 2018 Equity Plan and the 2015 Plan were each amended and restated in February 2022 to align certain administrative components of the plans in addition to enhancing certain governance components. New awards will be made under either the 2018 Equity Plan or the 2015 Plan as the Company determines. The 2018 Equity Plan allows for issuance of up to 900,000 common shares through the award of options, restricted stock, stock, stock appreciation rights, or other stock-based awards. The 2015 Plan allows for the issuance of up to 1.2 million common shares, as adjusted for the Merger, through the award of options, stock, restricted stock, stock units, stock appreciation rights, or performance stock awards. Beginning in 2023, directors were able to elect to receive stock in lieu of cash for their director fees. In the first half of 2023 , the Company recognized $ 39,000 in expense for 1,985 shares that were issued to directors in lieu of cash fees. The Company maintains Long-Term Equity Incentive Plans (each, an "LTIP") for select members of management (the "Executive LTIP") and a Key Employee and Commercial Lender Plan (the "Key Plan"). Under the Executive LTIP, participants may earn between 20 % to 50 % of their salary for potential payout in the form of (1) equity awards based on the achievement of certain corporate performance targets over a three-year period and (2) beginning in 2023, restricted stock awards (“RSAs”). The Company granted 66,482 performance stock units ("PSUs") to the participants under the Executive LTIP during the first half of 2023 , which represents the maximum target award. The value of PSU awards issued in 2021, 2022 and 2023 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these PSUs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement of the participant. The RSAs issued under the Executive LTIP vest incrementally over three years, being fully vested upon the third anniversary of the grant date. The Company granted 21,169 RSAs under the Executive LTIP in the first quarter of 2023. The maximum amount of compensation expense that may be earned for the PSUs at June 30, 2023 is approximately $ 6.1 million in the aggregate. However, the estimated expense that is expected to be earned as of June 30, 2023 is $ 4.1 million, of which $ 1.6 million was unrecognized at June 30, 2023 , and will be recognized over the remaining performance periods. A reduction in expense of $ 201,000 and $ 539,000 was recorded during the three and six months ended June 30, 2023 , respectively, compared to expense of $ 88,000 and $ 411,000 for the three and six months ended June 30, 2022, respectively. Beginning in 2022, under the Key Plan, the participants were granted restricted stock awards ("RSAs") based upon the achievement of certain targets in the prior year. Prior to 2022, restricted stock units ("RSUs") were issued to participants under the same plan. The participants can earn from 5 % to 10 % of their salary in RSAs or RSUs that vest three years from the date of grant. The Company granted 25,044 in RSAs and 19,612 RSAs in the first quarter of 2023 and 2022, respectively, as a payout under the Key Plan. In the six months ended June 30, 2023 , the Company also granted 17,832 discretionary RSAs that vest over a three year time period. Compensation expense is recognized over the performance or vesting period. Total expense of $ 482,000 and $ 928,000 was recorded during the three and six months ended June 30, 2023 , respectively, compared to expense of $ 245,000 and $ 506,000 for the three and six months ended June 30, 2022 , respectively. Approximately $ 1.2 million and $ 2.1 million is included within other liabilities at June 30, 2023 and December 31, 2022, respectively, related to the cash portion of the Company's Short-Term Incentive Plans. The following table sets forth Premier's performance and restricted stock activity during the six months ended June 30, 2023: Performance Stock Units Restricted Stock Units Restricted Stock Awards Unvested Shares Shares Weighted- Shares Weighted- Shares Weighted- Unvested at January 1, 2023 229,813 $ 29.12 31,796 $ 28.44 99,412 $ 29.14 Granted 66,482 24.78 — — 87,071 23.09 Vested ( 55,435 ) 26.48 ( 10,799 ) 26.60 ( 21,799 ) 29.72 Forfeited ( 23,298 ) 26.48 ( 1,167 ) 33.26 ( 2,795 ) 24 Unvested at June 30, 2023 217,562 $ 28.75 19,830 $ 29.16 161,889 $ 25.90 As of June 30, 2023 , 29,661 options to acquire Premier shares were outstanding at option prices based on the market value of the underlying shares on the date the options were granted. All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date. The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities are based on historical volatilities of the Company’s common shares. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted during the six months ended June 30, 2023 and 2022. Following is stock option activity under the plans during the six months ended June 30, 2023: Options Weighted Weighted Aggregate Options outstanding, January 1, 2023 29,661 $ 22.54 Forfeited or cancelled — — Exercised — — Granted — — Options outstanding, June 30, 2023 29,661 $ 22.54 3.59 $ 9 Exercisable at June 30, 2023 29,661 $ 22.54 3.59 $ 9 As of June 30, 2023 , there was a de minimus amount of total unrecognized compensation costs related to unvested stock options granted under the Company’s equity plans. The cost is expected to be recognized over a weighted-average period of one month . |
Dividends on Common Stock
Dividends on Common Stock | 6 Months Ended |
Jun. 30, 2023 | |
Dividends, Common Stock [Abstract] | |
Dividends on Common Stock | 5. Dividends on Common Stock Premier declared and paid a $ 0.62 per common stock dividend in the first six months of 2023 and declared and paid a $ 0.60 per common stock dividend in the first six months of 2022 . Premier declared and paid a $ 0.31 per common stock dividend in the second quarter of 2023 and declared and paid a $ 0.30 per common stock dividend in the second quarter of 2022 . |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 6. Earnings Per Common Share Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures. The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands, except per share data) Basic Earnings Per Share: Net income available to common shareholders $ 48,391 $ 22,360 $ 66,540 $ 48,717 Less: income allocated to participating securities 19 17 104 54 Net income allocated to common shareholders 48,372 22,343 66,436 48,663 Weighted average common shares outstanding including 35,722 35,608 35,686 35,816 Less: Participating securities ( 28 ) 27 15 40 Average common shares 35,750 35,581 35,671 35,776 Basic earnings per common share $ 1.35 $ 0.63 $ 1.86 $ 1.36 Diluted Earnings Per Share: Net income allocated to common shareholders $ 48,372 $ 22,343 $ 66,436 $ 48,663 Weighted average common shares outstanding for basic earnings 35,750 35,581 35,671 35,776 Add: Dilutive effects of stock options and restricted stock units 50 101 79 104 Average shares and dilutive potential common shares 35,800 35,682 35,750 35,880 Diluted earnings per common share $ 1.35 $ 0.63 $ 1.86 $ 1.36 There were 932 and 750 shares for the three and six months ended June 30, 2023 , respectively, that were excluded from the diluted earnings per common share calculation. There were 18,462 and 17,261 shares for the three and six months ended June 30, 2022, respectively, that were excluded from the dilutive earnings per common share calculation. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2023 | |
Marketable Securities [Abstract] | |
Investment Securities | 7. Investment Securities The following is a summary of available-for-sale securities: Amortized Gross Gross Fair Value (In Thousands) At June 30, 2023 Available-for-Sale Securities: Obligations of U.S. government corporations and agencies $ 116,781 $ — $ ( 20,605 ) $ 96,176 Mortgage-backed securities 193,147 — ( 31,948 ) 161,199 Collateralized mortgage obligations 292,120 — ( 53,127 ) 238,993 Asset-backed securities 157,152 310 ( 6,375 ) 151,087 Corporate bonds 71,312 — ( 10,772 ) 60,540 Obligations of state and political subdivisions 251,715 13 ( 46,910 ) 204,818 US Treasuries 55,860 — ( 7,550 ) 48,310 Total Available-for-Sale $ 1,138,087 $ 323 $ ( 177,287 ) $ 961,123 Amortized Gross Gross Fair Value (In Thousands) At December 31, 2022 Available-for-sale Obligations of U.S. government corporations and agencies $ 117,150 $ — $ ( 21,241 ) $ 95,909 Mortgage-backed securities 200,548 — ( 32,959 ) 167,589 Collateralized mortgage obligations 299,731 — ( 49,926 ) 249,805 Asset-backed securities 200,312 517 ( 8,325 ) 192,504 Corporate bonds 71,543 — ( 7,061 ) 64,482 Obligations of state and political subdivisions 274,856 92 ( 53,354 ) 221,594 US Treasuries 55,987 — ( 7,789 ) 48,198 Total Available-for-Sale $ 1,220,127 $ 609 $ ( 180,655 ) $ 1,040,081 The amortized cost and fair value of the investment securities portfolio at June 30, 2023, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBS, CMOs and ABS, which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. Available-for-Sale Amortized Fair Value (In Thousands) Due in one year or less $ 363 $ 364 Due after one year through five years 42,504 38,777 Due after five years through ten years 229,349 194,741 Due after ten years 223,452 175,962 MBS/CMO/ABS 642,419 551,279 $ 1,138,087 $ 961,123 Investment securities with a carrying amount of $ 669.1 million and $ 759.8 million at June 30, 2023 and December 31, 2022, respectively, were pledged as collateral. The following tables summarize Premier’s securities that were in an unrealized loss position at June 30, 2023 and December 31, 2022: Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At June 30, 2023 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ — $ — $ 96,176 $ ( 20,605 ) $ 96,176 $ ( 20,605 ) Mortgage-backed securities 3,472 ( 164 ) 157,727 ( 31,784 ) 161,199 ( 31,948 ) Collateralized mortgage obligations 2,339 ( 7 ) 236,654 ( 53,120 ) 238,993 ( 53,127 ) Asset-backed securities — — 122,421 ( 6,375 ) 122,421 ( 6,375 ) Corporate bonds 7,060 ( 940 ) 53,480 ( 9,832 ) 60,540 ( 10,772 ) Obligations of state and political subdivisions 17,988 ( 401 ) 182,578 ( 46,509 ) 200,566 ( 46,910 ) US Treasuries — 48,310 ( 7,550 ) 48,310 ( 7,550 ) Total available-for-sale $ 30,859 $ ( 1,512 ) $ 897,346 $ ( 175,775 ) $ 928,205 $ ( 177,287 ) Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At December 31, 2022 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 64,394 $ ( 11,158 ) $ 31,513 $ ( 10,083 ) $ 95,907 $ ( 21,241 ) Mortgage-backed securities-residential 40,908 ( 4,184 ) 126,681 ( 28,775 ) 167,589 ( 32,959 ) Collateralized mortgage obligations 60,676 ( 11,985 ) 159,129 ( 37,941 ) 219,805 ( 49,926 ) Asset-backed securities 45,534 ( 1,499 ) 113,580 ( 6,826 ) 159,114 ( 8,325 ) Corporate bonds 49,114 ( 4,960 ) 15,368 ( 2,101 ) 64,482 ( 7,061 ) Obligations of state and political subdivisions 106,610 ( 13,378 ) 98,063 ( 39,976 ) 204,673 ( 53,354 ) US Treasuries 19,891 ( 3,448 ) 28,309 ( 4,341 ) 48,200 ( 7,789 ) Total available-for-sale $ 387,127 $ ( 50,612 ) $ 572,643 $ ( 130,043 ) $ 959,770 $ ( 180,655 ) The Company had $ 7,000 in realized losses and $ 27,000 in realized gains from the sale of available-for-sale securities in the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2022 , the Company realized no gains or losses from the sale of investment securities. It is expected that the securities would not be settled at less than the amortized cost of the Company's investment because the decline in fair value is attributable to changes in interest rates and relative spreads and not credit quality. Management does not intend to sell these investments and it is not expected that the Company will be required to sell the investments before recovery of its amortized cost basis. Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. • Any security that has a loss rate greater than 3 %, credit rating below investment grade or not rated by a third-party credit ratings company would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. • If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. As of June 30, 2023, management determined that no credit loss exists and that the unrealized losses are due to the increased interest rate environment. At June 30, 2023 and December 31, 2022 , the Company held preferred and common stock of various bank holding companies totaling $ 6.5 million and $ 7.8 million, respectively. During the three and six months ended June 30, 2023 , a realized gain of $ 71,000 and a realized loss of $ 1.4 million, respectively, were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. During the three and six months ended June 30, 2022 , $ 1.2 million and $ 1.8 million of realized losses, respectively, were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Loans | 8. Loans Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following: June 30, December 31, (In Thousands) Real Estate: Residential $ 1,711,632 $ 1,535,574 Commercial 2,848,410 2,762,311 Construction 1,039,689 1,278,255 5,599,731 5,576,140 Other Loans: Commercial 1,069,372 1,055,180 Home equity and improvement 272,792 277,613 Consumer finance 210,390 213,405 1,552,554 1,546,198 Loans before deferred loan origination fees and costs 7,152,285 7,122,338 Deduct: Undisbursed construction loan funds ( 455,653 ) ( 672,775 ) Net deferred loan origination fees and costs 11,936 11,057 Allowance for credit losses ( 75,921 ) ( 72,816 ) Total loans $ 6,632,647 $ 6,387,804 The Company responded to the COVID-19 pandemic in numerous ways, including by actively participating in the Paycheck Protection Program (“PPP”) and distributing $ 636.9 million to small businesses in our markets. As of June 30, 2023 , the Company had $ 577,000 in PPP loans that remained unpaid and were included in commercial other loans in the above loan table. As of December 31, 2022 , the Company had $ 1.1 million in PPP loans. The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ — $ — $ — $ — $ — Commercial — — — — — Construction 12,934 — 1,190 — 14,124 Other Loans: Commercial 2,075 1,900 5,139 881 9,995 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 15,009 $ 1,900 $ 6,329 $ 881 $ 24,119 December 31, 2022 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 51 $ — $ — $ — $ 51 Commercial 10,708 — 2,716 — 13,424 Construction — — — — — Other Loans: Commercial 2,161 523 3,858 — 6,542 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 12,920 $ 523 $ 6,574 $ — $ 20,017 Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually analyzed loans. All loans 90 days and greater past due are placed on non-accrual status. The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated: June 30, December 31, (In Thousands) Non-accrual loans with reserve $ 24,726 $ 20,369 Non-accrual loans without reserve 12,265 13,453 Loans 90 days plus past due and still accruing — — Total non-performing loans 36,991 33,822 Real estate and other assets held for sale 561 619 Total non-performing assets $ 37,552 $ 34,441 The following table presents the aging of the amortized cost in past due and non-accrual loans as of June 30, 2023, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,691,587 $ 109 $ 6,455 $ 7,886 $ 14,450 $ 9,334 Commercial 2,844,252 194 444 6,167 6,805 14,018 Construction 583,751 — 285 — 285 — Other Loans: Commercial 1,054,469 4,234 57 4,944 9,235 6,686 Home equity and improvement 266,742 2,158 628 1,194 3,980 1,692 Consumer finance 206,855 2,537 1,198 1,953 5,688 2,373 PCD 16,936 296 809 2,428 3,533 2,888 Total Loans $ 6,664,592 $ 9,528 $ 9,876 $ 24,572 $ 43,976 $ 36,991 The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2022, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,516,135 $ 279 $ 6,350 $ 6,203 $ 12,832 $ 7,724 Commercial 2,751,933 327 878 11,477 12,682 13,396 Construction 605,043 298 139 — 437 — Other Loans: Commercial 1,044,898 413 128 4,635 5,176 4,862 Home equity and improvement 269,183 4,342 489 1,190 6,021 1,637 Consumer finance 209,062 2,763 1,397 2,227 6,387 2,401 PCD 17,082 603 495 2,651 3,749 3,802 Total Loans $ 6,413,336 $ 9,025 $ 9,876 $ 28,383 $ 47,284 $ 33,822 Loan Modifications As of January 1, 2023, the Company adopted the modified retrospective method under ASU 2022-02, "Trouble Debt Restructurings and Vintage Disclosures" which eliminated trouble debt restructuring accounting for entities that have adopted ASU 2016-13, the current expected credit losses model. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the loan is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of amortized cost basis and a corresponding adjustments to the allowance for credit losses. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness or reduction of rate, may be granted. Of the loans modified as of June 30, 2023 , $ 4.4 million were on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each loan upon loan origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of loans to borrowers experiencing financial difficulty. The company uses probability of default/loss given default, discounted cash flows or remaining life method to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of modification granted during the three and six months ended June 30, 2023 . The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of loan category is also presented below: Loans Modifications Made to Borrowers Experiencing Financial Difficulty Loans Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension Loan Type Amortized Cost Basis Percent of total loans by Amortized Cost Basis Percent of total loans by Real Estate: Residential $ 109 0.01 % 109 0.01 % Commercial 4,431 0.16 % 4,798 0.17 % Construction — — — — Other Loans: Commercial — — 38 0.00 % Home equity and improvement — — — — Consumer finance — — — — Total $ 4,540 $ 4,945 The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Loan Type Financial Effect Real Estate: Residential -Term extended from 7 year balloon to 30 years Commercial -Added 12 months to the life of the loan, which reduced monthly payment amounts for the borrower. -Term extension 10 yr term/ 20 yr am to 12 month interest only Other Loans: Commercial -Added 84 months to the life of the loan to term out 2 year balloon, which reduced monthly payment amounts for the borrower. Rate Reduction Loan Type Financial Effect Real Estate: Commercial -Interest rate reduction 11.08 % to 5.00 % -Interest rate reduction 10.65 % to 5.00 % Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. There were no modification loans that had a payment default during the quarter ended June 30, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. The Company closely monitors the performance of the loans that were modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The modified loans are current and have not experienced delinquency as of June 30, 2023. Credit Quality Indicators Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are analyzed individually by classifying the loans by credit risk. This analysis includes all non-homogeneous loans, such as commercial and commercial real estate loans and certain homogeneous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. Premier uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,695,235 $ 484 $ 10,318 $ — $ 10,318 $ 1,706,037 Commercial 2,801,710 20,751 28,596 — 28,596 2,851,057 Construction 575,703 8,333 — — — 584,036 Other Loans: Commercial 1,021,363 27,376 14,965 — 14,965 1,063,704 Home equity and improvement 269,038 — 1,684 — 1,684 270,722 Consumer finance 210,348 — 2,195 — 2,195 212,543 PCD 13,981 3,786 2,702 — 2,702 20,469 Total Loans (1) $ 6,587,378 $ 60,730 $ 60,460 $ — $ 60,460 $ 6,708,568 (1) Total loans are net of undisbursed funds and deferred fees and costs. As of December 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,519,657 $ 935 $ 8,375 $ — $ 8,375 $ 1,528,967 Commercial 2,698,292 46,029 20,294 — 20,294 2,764,615 Construction 605,480 — — — — 605,480 Other Loans: Commercial 1,016,925 26,319 6,830 — 6,830 1,050,074 Home equity and improvement 273,613 — 1,591 — 1,591 275,204 Consumer finance 213,078 — 2,371 — 2,371 215,449 PCD 13,904 2,590 4,337 — 4,337 20,831 Total Loans (1) $ 6,340,949 $ 75,873 $ 43,798 $ — $ 43,798 $ 6,460,620 (1) Total loans are net undisbursed loan funds and deferred fees and costs The following tables present the amortized cost basis of loans by credit quality indicator and class of loans as of June 30, 2023 and December 31, 2022 (in thousands). Term of loans by origination 2023 2022 2021 2020 2019 Prior Revolving Loans Total As of June 30, 2023 Real Estate Residential: Current-period gross charge-offs $ — $ — $ 217 $ — $ — $ 66 $ — $ 283 Risk Rating Unclassified $ 72,488 $ 436,861 $ 446,915 $ 323,345 $ 90,711 $ 322,786 $ 2,129 $ 1,695,235 Special Mention — — — 175 — 309 — 484 Substandard 117 1,298 1,536 1,390 651 5,326 — 10,318 Doubtful — — — — — — — — Total $ 72,605 $ 438,159 $ 448,451 $ 324,910 $ 91,362 $ 328,421 $ 2,129 $ 1,706,037 Commercial: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 20 $ — $ 20 Risk Rating Unclassified $ 125,474 $ 600,502 $ 529,545 $ 508,611 $ 314,839 $ 705,271 $ 17,468 $ 2,801,710 Special Mention — 1,459 4,096 2,012 — 13,042 142 20,751 Substandard 51 270 195 2,705 4,828 20,415 132 28,596 Doubtful — — — — — — — — Total $ 125,525 $ 602,231 $ 533,836 $ 513,328 $ 319,667 $ 738,728 $ 17,742 $ 2,851,057 Construction: Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Risk Rating Unclassified $ 46,056 $ 343,257 $ 142,495 $ 41,942 $ 1,953 $ — $ — $ 575,703 Special Mention — — — — 8,333 — — 8,333 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 46,056 $ 343,257 $ 142,495 $ 41,942 $ 10,286 $ — $ — $ 584,036 Other Loans Commercial: Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ 2 $ 2 Risk Rating Unclassified $ 84,763 $ 259,149 $ 178,867 $ 71,140 $ 42,385 $ 34,794 $ 350,265 $ 1,021,363 Special Mention 4,586 1,215 7,891 290 511 4,080 8,803 27,376 Substandard — 814 4,080 4,815 474 2,040 2,742 14,965 Doubtful — — — — — — — — Total $ 89,349 $ 261,178 $ 190,838 $ 76,245 $ 43,370 $ 40,914 $ 361,810 $ 1,063,704 Home equity and Improvement: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 22 $ 99 $ 121 Risk Rating Unclassified $ 10,650 $ 27,538 $ 19,957 $ 4,841 $ 3,255 $ 29,125 $ 173,672 $ 269,038 Special Mention — — — — — — — — Substandard — 49 14 — 28 358 1,235 1,684 Doubtful — — — — — — — — Total $ 10,650 $ 27,587 $ 19,971 $ 4,841 $ 3,283 $ 29,483 $ 174,907 $ 270,722 Consumer Finance: Current-period gross charge-offs $ — $ 85 $ 56 $ 63 $ 9 $ 8 $ 50 $ 271 Risk Rating Unclassified $ 31,040 $ 113,854 $ 27,648 $ 14,231 $ 10,204 $ 3,538 $ 9,833 $ 210,348 Special Mention — — — — — — — — Substandard — 1,059 412 405 251 68 — 2,195 Doubtful — — — — — — — — Total $ 31,040 $ 114,913 $ 28,060 $ 14,636 $ 10,455 $ 3,606 $ 9,833 $ 212,543 PCD: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 46 $ 1 $ 47 Risk Rating Unclassified $ — $ — $ — $ — $ 121 $ 13,220 $ 640 $ 13,981 Special Mention — — — — — 795 2,991 3,786 Substandard — — — — — 2,360 342 2,702 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ 121 $ 16,375 $ 3,973 $ 20,469 Term of loans by origination 2022 2021 2020 2019 2018 Prior Revolving Loans Total As of December 31, 2022 Real Estate Residential: Risk Rating Pass $ 264,884 $ 474,992 $ 335,982 $ 93,548 $ 51,710 $ 296,089 $ 2,452 $ 1,519,657 Special Mention — — 180 30 80 78 567 935 Substandard 280 1,648 1,614 922 517 3,394 — 8,375 Doubtful — — — — — — — — Total $ 265,164 $ 476,640 $ 337,776 $ 94,500 $ 52,307 $ 299,561 $ 3,019 $ 1,528,967 Commercial: Risk Rating Pass $ 582,384 $ 506,386 $ 517,790 $ 324,210 $ 194,240 $ 557,728 $ 15,554 $ 2,698,292 Special Mention 161 3,614 — 593 25,395 15,561 705 46,029 Substandard 115 2,104 527 4,612 4,455 8,348 133 20,294 Doubtful — — — — — — — — Total $ 582,660 $ 512,104 $ 518,317 $ 329,415 $ 224,090 $ 581,637 $ 16,392 $ 2,764,615 Construction: Risk Rating Pass $ 348,570 $ 182,755 $ 53,161 $ 20,994 $ — $ — $ — $ 605,480 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 348,570 $ 182,755 $ 53,161 $ 20,994 $ — $ — $ — $ 605,480 Other Loans Commercial: Risk Rating Pass $ 266,501 $ 208,663 $ 90,014 $ 49,887 $ 23,719 $ 22,515 $ 355,626 $ 1,016,925 Special Mention 1,891 4,094 3,913 1,533 1,160 5,365 8,363 26,319 Substandard 16 119 3,897 4 190 204 2,400 6,830 Doubtful — — — — — — — — Total $ 268,408 $ 212,876 $ 97,824 $ 51,424 $ 25,069 $ 28,084 $ 366,389 $ 1,050,074 Home equity and Improvement: Risk Rating Pass $ 30,009 $ 21,116 $ 5,387 $ 3,592 $ 1,849 $ 30,509 $ 181,151 $ 273,613 Special Mention — — — — — — — — Substandard 44 14 — 28 32 502 971 1,591 Doubtful — — — — — — — — Total $ 30,053 $ 21,130 $ 5,387 $ 3,620 $ 1,881 $ 31,011 $ 182,122 $ 275,204 Consumer Finance: Risk Rating Pass $ 133,194 $ 33,109 $ 17,219 $ 13,681 $ 4,022 $ 2,529 $ 9,324 $ 213,078 Special Mention — — — — — — — — Substandard 676 483 668 316 62 34 132 2,371 Doubtful — — — — — — — — Total $ 133,870 $ 33,592 $ 17,887 $ 13,997 $ 4,084 $ 2,563 $ 9,456 $ 215,449 PCD: Risk Rating Pass $ — $ — $ — $ 131 $ 369 $ 13,117 $ 287 $ 13,904 Special Mention — — — — — 292 2,298 2,590 Substandard — — — 2 22 3,697 616 4,337 Doubtful — — — — — — — — Total $ — $ — $ — $ 133 $ 391 $ 17,106 $ 3,201 $ 20,831 Allowance for Credit Losses The Company has adopted ASU 2016-13 (Topic 326 – Credit Losses) to calculate the ACL, which requires a projection of credit loss over the contract lifetime of the credit adjusted for prepayment tendencies. This valuation account is deducted from the loans amortized cost basis to present the net amount expected to be collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s portfolio segments. These segments are further disaggregated into the loan pools for monitoring. When computing allowance levels, a model of risk characteristics, such as loss history and delinquency status, along with current conditions and a supportable forecast is used to determine credit loss assumptions. The Company is generally utilizing two methodologies to analyze loan pools, DCF and probability of default/loss given default (“PD/LGD”). A default can be triggered by one of several different asset quality factors including past due status, non-accrual status, modification status or if the loan has had a charge-off. The PD/LGD utilizes charge off data from the Federal Financial Institutions Examination Council to construct a default rate. This default rate is further segmented based on the risk of the credit assigning a higher default rate to riskier credits. The DCF methodology was selected as the most appropriate for loan segments with longer average lives and regular payment structures. The DCF model has two key components, the loss driver analysis combined with a cash flow analysis. The contractual cash flow is adjusted for PD/LGD and prepayment speed to establish a reserve level. The prepayment studies are updated quarterly by a third-party for each applicable pool. The Company estimates losses over an approximate one-year forecast period using Moody’s baseline economic forecasts, and then reverts to longer term historical loss experience over a three-year period. The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family nonowner occupied DCF National unemployment 1-4 Family owner occupied DCF National unemployment Commercial real estate Commercial real estate nonowner occupied DCF National unemployment Commercial real estate owner occupied DCF National unemployment Multi Family DCF National unemployment Agriculture Land DCF National unemployment Other commercial real estate DCF National unemployment Construction secured by real estate Construction Other PD/LGD Call report loss history Construction Residential PD/LGD Call report loss history Commercial Commercial working capital PD/LGD Call report loss history Agriculture production PD/LGD Call report loss history Other commercial PD/LGD Call report loss history Home equity and improvement Home equity and improvement PD/LGD Call report loss history Consumer finance Consumer direct Remaining life Call report loss history Consumer indirect DCF National unemployment According to the accounting standard, an entity may make an accounting policy election not to measure an ACL for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an ACL for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows less than 1.2 times discounted collateral coverage based on a current assessment of the value of the collateral. In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable and is considered by the company’s management as likely to fund over the life of the instrument. At June 30, 2023 , the Company had $ 1.5 billion in unfunded commitments and set aside $ 5.7 million in anticipated credit losses. This reserve is recorded in other liabilities as opposed to the ACL. The determination of ACL is complex and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by prevailing factors at that point in time along with future forecasts. The following table discloses allowance for credit loss (“ACL”) activity for the three and six months ended June 30, 2023 and 2022 by portfolio segment (in thousands): Three Months Ended June 30, 2023 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 18,229 $ 33,831 $ 3,882 $ 12,525 $ 3,654 $ 2,152 $ 74,273 Charge-Offs ( 304 ) ( 20 ) — ( 8 ) ( 121 ) ( 291 ) ( 744 ) Recoveries 23 59 — 807 36 57 982 Provisions 970 881 ( 51 ) ( 223 ) ( 170 ) 3 1,410 Ending Allowance $ 18,918 $ 34,751 $ 3,831 $ 13,101 $ 3,399 $ 1,921 $ 75,921 Six Months Ended June 30, 2023 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 16,711 $ 34,218 $ 4,025 $ 11,769 $ 4,044 $ 2,049 $ 72,816 Charge-Offs ( 309 ) ( 1,689 ) — ( 519 ) ( 200 ) ( 740 ) ( 3,457 ) Recoveries 45 71 — 903 57 132 1,208 Provisions 2,471 2,151 ( 194 ) 948 ( 502 ) 480 5,354 Ending Allowance $ 18,918 $ 34,751 $ 3,831 $ 13,101 $ 3,399 $ 1,921 $ 75,921 Three Months Ended June 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Finance Total Beginning Allowance $ 11,640 $ 34,201 $ 2,613 $ 13,821 $ 3,919 $ 1,001 $ 67,195 Charge-Offs ( 861 ) ( 137 ) ( 16 ) ( 5,303 ) ( 248 ) ( 138 ) ( 6,703 ) Recoveries 673 455 3 184 79 37 1,431 Provisions 2,661 433 399 1,060 253 345 5,151 Ending Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 Six Months Ended June 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 12,029 $ 32,399 $ 3,004 $ 13,410 $ 4,221 $ 1,405 $ 66,468 Charge-Offs ( 1,001 ) ( 144 ) ( 16 ) ( 5,313 ) ( 277 ) ( 241 ) ( 6,992 ) Recoveries 754 514 3 286 113 151 1,821 Provisions 2,331 2,183 8 1,379 ( 54 ) ( 70 ) 5,777 Ending Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 Purchased Credit Deteriorated Loans Under ASU Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as PCD. PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. The outstanding balance and related allowance on these loans as of June 30, 2023 and December 31, 2022 is as follows (in thousands): As of June 30, 2023 As of December 31, 2022 Loan Balance ACL Balance Loan Balance ACL Balance (In Thousands) (In Thousands) Real Estate: Residential $ 11,164 $ 144 $ 11,546 $ 139 Commercial 1,375 43 1,544 34 Construction — — — — 12,539 187 13,090 173 Other Loans: Commercial 5,628 563 5,058 594 Home equity and improvement 2,070 62 2,409 80 Consumer finance 232 5 274 5 7,930 630 7,741 679 Total $ 20,469 $ 817 $ 20,831 $ 852 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totale d $ 5.3 million as of June 30, 2023 , and $ 4.3 million as of December 31, 2022 . |
Mortgage Banking
Mortgage Banking | 6 Months Ended |
Jun. 30, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | 9. Mortgage Banking Net revenues from the sales and servicing of mortgage loans consisted of the following: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Mortgage banking gain, net $ 2,242 $ 1,166 $ 1,405 $ 3,710 Mortgage loans servicing revenue (expense): Mortgage loans servicing revenue 1,845 1,862 3,733 3,741 Amortization of mortgage servicing rights ( 1,277 ) ( 1,375 ) ( 2,496 ) ( 2,778 ) Mortgage servicing rights valuation adjustments 130 295 24 1,527 698 782 1,261 2,490 Net revenue from sale and servicing of mortgage loans $ 2,940 $ 1,948 $ 2,666 $ 6,200 The unpaid principal balance of residential mortgage loans serviced for third parties was $ 2.94 billion and $ 2.96 billion at June 30, 2023 and December 31, 2022. Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Mortgage servicing assets: Balance at beginning of period $ 21,447 $ 22,189 $ 21,858 $ 22,244 Loans sold, servicing retained 653 1,059 1,461 2,407 Amortization ( 1,277 ) ( 1,375 ) ( 2,496 ) ( 2,778 ) Carrying value before valuation allowance at end of period 20,823 21,873 20,823 21,873 Valuation allowance: Balance at beginning of period ( 793 ) ( 1,474 ) ( 687 ) ( 2,707 ) Impairment recovery 130 294 24 1,527 Balance at end of period ( 663 ) ( 1,180 ) ( 663 ) ( 1,180 ) Net carrying value of MSRs at end of period $ 20,160 $ 20,693 $ 20,160 $ 20,693 Fair value of MSRs at end of period $ 25,044 $ 26,927 $ 25,044 $ 26,927 Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced. Estimates of future amortization expense are not easily estimable. The Company had no accrual for secondary market buy-back activity at June 30, 2023 or December 31, 2022 based on management’s estimate of potential losses from this activity. There was no expense or credit recognized in the three and six months ended June 30, 2023 and 2022 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 10. Leases The Company’s lease agreements have maturity dates ranging from April 2023 to September 2044, some of which include options for multiple five and ten year extensions. The weighted average remaining life of the lease term for these leases was 13.5 years as of June 30, 2023 and 13.29 years as of December 31, 2022 . The weighted average discount rate for leases was 2.45 % as of June 30, 2023 and 2.52 % as of December 31, 2022. The total operating lease costs were $ 577,000 and $ 1.3 million for the three and six months ended June 30, 2023 and $ 540,000 and $ 1.1 million for the three and six months ended June 30, 2022 . The right-of-use asset , included in other assets, were $ 11.1 million and $ 14.9 million at June 30, 2023 and December 31, 2022 , respectively. The lease liabilities , included in other liabilities, were $ 11.7 million and $ 15.6 million as of June 30, 2023 and December 31, 2022, respectively. Undiscounted cash flows included in lease liabilities have expected contractual payments as follows: (In Thousands) June 30, 2023 Remainder of 2023 $ 2,715 2024 1,743 2025 1,447 2026 1,247 2027 1,118 Thereafter 10,564 Total undiscounted minimum lease payments 18,834 Present value adjustment ( 7,145 ) Total lease liabilities $ 11,689 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | 11. Deposits A summary of deposit balances is as follows: June 30, December 31, (In Thousands) Non-interest-bearing checking accounts $ 1,573,837 $ 1,869,509 Interest-bearing checking and money market accounts 3,036,528 3,185,440 Savings deposits 748,702 798,003 Retail certificates of deposit less than $250,000 753,867 645,318 Retail certificates of deposit greater than $250,000 468,261 264,741 Brokered deposits 413,237 143,708 $ 6,994,432 $ 6,906,719 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
Borrowings | 12. Borrowings The Company's FHLB advances and junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following: June 30, 2023 December 31, 2022 (In Thousands) FHLB Advances: Single maturity fixed rate advances $ 125,000 $ 195,000 Overnight advances 330,000 233,000 Total $ 455,000 $ 428,000 First Defiance Statutory Trust I due December 2035 $ 20,619 $ 20,619 First Defiance Statutory Trust II due June 2037 15,464 15,464 Junior subordinated debentures owed to unconsolidated subsidiary trusts $ 36,083 $ 36,083 Subordinated debentures $ 49,083 $ 49,020 At June 30, 2023 , the Company had $ 455.0 million of outstanding FHLB advances with maturity dates in 2023. There was $ 428.0 million in outstanding FHLB advances at December 31, 2022 with maturity dates in 2023. The Company's available borrowing capacity at the FHLB was $ 1.5 billion as of June 30, 2023 and December 31, 2022 , respectively. The Company has an available credit line at the Federal Reserve Bank Discount Window of $ 376.1 million and $ 43.9 million as of June 30, 2023 and December 31, 2022 , respectively, which has not been drawn upon. The Company also has a $ 50 million credit line at US Bank as of June 30, 2023 and December 31, 2022, respectively, which also was not drawn upon. In September 2020, the Company completed the issuance of $ 50.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due September 30, 2030 in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 4.0 % for five years at which time they will convert to a floating rate based on the secured overnight borrowing rate, plus a spread of 388.5 basis points. The Company may, at its option, beginning September 30, 2025, redeem the notes, in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $ 48.7 million, after deducting the estimated offering expenses. The Company has used, and intends to continue using, the net proceeds for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through strategic acquisitions, repaying indebtedness, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in "Total Capital", as such term is defined under current regulatory guidelines and interpretations. In March 2007, the Company sponsored an affiliated trust, First Defiance Statutory Trust II (“Trust Affiliate II”) that issued $ 15.0 million of Guaranteed Capital Trust Securities (“Trust Preferred Securities”). In connection with this transaction, the Company issued $ 15.5 million of Junior Subordinated Deferrable Interest Debentures ("Subordinated Debentures") to Trust Affiliate II. The Company formed Trust Affiliate II for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Subordinated Debentures held by Trust Affiliate II are the sole assets of that trust. The Company is not considered the primary beneficiary of Trust Affiliate II (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the Subordinated Debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate II are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.5 % . As a result of the discontinuation of LIBOR, beginning with the distribution on December 15, 2023, distributions will be calculated at a variable rate equal to the three-month SOFR rate plus 1.5 % . The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate II was 6.37 % as of June 30, 2023 , and 6.27 % as of December 31, 2022. The Trust Preferred Securities issued by Trust Affiliate II are subject to mandatory redemption, in whole or part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time. The Company also sponsored an affiliated trust, First Defiance Statutory Trust I (“Trust Affiliate I”) that issued $ 20.0 million of Trust Preferred Securities in 2005. In connection with this transaction, the Company issued $ 20.6 million of Subordinated Debentures to Trust Affiliate I. Trust Affiliate I was formed for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Junior Debentures held by Trust Affiliate I are the sole assets of the trust. The Company is not considered the primary beneficiary of Trust Affiliate I (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate I are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.38 % . As a result of the discontinuation of LIBOR, beginning with the distribution on December 15, 2023, distributions will be calculated at a varaible rate equal to the three-month SOFR rate plus 1.38 % . The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate I was 6.25 % and 6.15 % on June 30, 2023 and December 31, 2022, respectively. The Trust Preferred Securities issued by Trust Affiliate I are subject to mandatory redemption, in whole or in part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now. The Subordinated Debentures related to the Trust Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. Interest on both issues of Trust Preferred Securities may be deferred for a period of up to five years at the option of the issuer. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingent Liabilities | 13. Commitments, Guarantees and Contingent Liabilities Loan commitments are made to accommodate the financial needs of Premier’s customers in the form of unfunded loans or unused lines of credit and result in market risk. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. They primarily are issued to facilitate customers’ trade transactions. Both arrangements have credit risk, essentially the same as that involved in extending loans to customers, and are subject to the Company’s normal credit policies. Collateral (e.g., securities, receivables, inventory and equipment) is obtained based on a credit assessment of the customer. The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to make loans $ 653,935 $ 957,533 Unused lines of credit 1,040,552 1,044,875 Standby letters of credit 18,288 18,632 Total $ 1,712,775 $ 2,021,040 Commitments to make loans are generally made for periods of 60 days or less . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in the states of Indiana and West Virginia. The Company is no longer subject to examination by income taxing authorities for years before 2019. The Company also currently operates in the states of Ohio, Michigan and Pennsylvania which tax financial institutions based on their equity rather than their income. The components of income tax expense (benefit) are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Current: Federal $ 16,035 $ 6,053 $ 19,387 $ 11,867 State and local 137 192 273 355 Deferred ( 2,260 ) ( 799 ) ( 1,645 ) ( 606 ) $ 13,912 $ 5,446 $ 18,015 $ 11,616 The effective tax rates differ from federal statutory rate applied to income due to the following: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Tax expense at statutory rate ( 21 %) $ 13,084 $ 5,840 $ 17,757 $ 12,670 Increases (decreases) in taxes from: State income tax - net of federal tax benefit 109 152 216 280 Tax exempt interest income, net of TEFRA ( 123 ) ( 188 ) ( 263 ) ( 374 ) Bank owned life insurance ( 213 ) ( 206 ) ( 511 ) ( 415 ) Captive insurance ( 154 ) ( 96 ) ( 246 ) ( 201 ) Other 1,209 ( 56 ) 1,062 ( 344 ) Total $ 13,912 $ 5,446 $ 18,015 $ 11,616 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 15. Derivative Financial Instruments At June 30, 2023 , the Company had approximately $ 38.4 million of interest rate lock commitments and $ 310.0 million of forward sales of mortgage backed securities. These commitments are considered derivatives. The Company had $ 35.9 million of interest rate lock commitments and $ 254.0 million of forward commitments at December 31, 2022. The fair value of these mortgage banking derivatives are reflected by a derivative asset recorded in other assets in the Consolidated Statements of Financial Condition. The table below provides data about the carrying values of these derivative instrument assets: June 30, 2023 December 31, 2022 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives $ 3,426 $ 1,349 The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at June 30, 2023 and 2022 represents a fair value adjustment that runs through mortgage banking income. Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives – (Loss) Gain $ 4,774 $ ( 8,072 ) $ 2,077 $ ( 485 ) Interest Rate Swaps The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value o f $ 81.1 m illion and fair value of $ 3.2 million in other assets and $ 3.2 million in other liabilities at June 30, 2023. As of December 31, 2022 , the Company had interest rate swaps associated with commercial loans with a notional value of $ 67.3 million and fair value of $ 4.5 million in other assets and $ 4.5 million in other liabilities. For the three and six months ended June 30, 2023 , $ 82,000 and $ 273,000 , respectively, flowed through noninterest income. For the three and six months ended June 30, 2022 , $ 1,000 flowed through noninterest income. Interest Rate Swaps Designated as Cash Flow Hedge and Fair Value Hedge In May 2021, the Company entered into derivative instruments designated as a cash flow hedge. In June 2023, the Company entered into derivative instruments designated as a fair value hedge. For a derivative instrument that is designated and qualifies as a cash flow or fair value hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. An interest rate swap with notional amount totaling $ 250.0 million as of June 30, 2023 was designated as a cash flow hedge to hedge the risk of variability in cash flows (future interest receipts) attributable to changes in the contractually specified benchmark interest rate on the Company’s floating rate loan pool. The specified benchmark interest rate will switch from LIBOR to SOFR after June 30, 2023. The gross aggregate fair value of the swap of $ 38.8 million is recorded in other liabilities in the unaudited Consolidated Balance Sheets at June 30, 2023, with changes in fair value recorded net of tax in other comprehensive income (loss). As of December 31, 2022 , the gross aggregate fair value of the swap of $ 40.0 million was recorded in other liabilities in the Consolidated Balance Sheets. A summary of the interest rate swap designated as a cash flow hedge is presented below (dollars in thousands): June 30, 2023 December 31, 2022 Notional amount $ 250,000 $ 250,000 Weighted average fixed receive rates 1.437 % 1.437 % Weighted average variable 1-month LIBOR pay rates 5.218 % 4.392 % Weighted average remaining maturity (in years) 7.5 8.1 Fair value $ ( 38,796 ) $ ( 40,032 ) Three $ 125.0 million interest rate swaps with a notional amount totaling $ 375.0 million as of June 30, 2023 were designated as fair value hedges to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the $ 1.3 billion associated pool of fixed rate mortgages. The gross fair value of the swaps of $ 3.2 million are recorded in other assets in the unaudited Consolidated Balance Sheets at June 30, 2023, with changes in fair value offsetting to the fixed rate mortgage loan pool. The Company expects the hedges to remain effective during the remaining terms of the swaps. A summary of the interest rate swaps designated as fair value hedges are presented below (dollars in thousands): June 30, 2023 Notional amount Fair Value Hedge $ 375,000 Weighted average fixed pay rates 4.113 % Weighted average variable SOFR receive rates 5.070 % Weighted average remaining maturity (in years) 2.8 Fair value $ 3,196 An interest rate swap with a notional amount totaling $ 125.0 million as of June 30, 2023 was designated as a cash flow hedge to hedge the risk of variability in cash flows attributable to changes in the contractually specified benchmark interest rate on the Company’s short-term fixed rate FHLB advances. The gross aggregate fair value of the swap of $ 1.3 million is recorded in other assets in the unaudited Consolidated Balance Sheets at June 30, 2023, with changes recorded net of tax in other comprehensive income (loss). The Company expects the hedge to remain effective during the remaining term of the swap. A summary of the interest rate swap designated as a cash flow hedge is presented below (dollars in thousands): June 30, 2023 Notional amount Cash Flow Hedge $ 125,000 Weighted average fixed pay rates 4.160 % Weighted average variable SOFR receive rates 5.170 % Weighted average remaining maturity (in years) 2.0 Fair value $ 1,328 |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Income | 16. Other Comprehensive (Loss) Income The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below. Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income. Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended June 30, 2023 Securities available for sale and transferred securities: Change in net unrealized gains during the period $ ( 15,290 ) $ 3,211 $ ( 12,079 ) Reclassification adjustment for net gains included in net income 7 ( 1 ) 6 Cash flow hedge derivatives Change in net unrealized gains during the period ( 1,563 ) 652 ( 911 ) Reclassification adjustment for net gains included in net income ( 2,511 ) 483 ( 2,028 ) Total other comprehensive income $ ( 19,357 ) $ 4,345 $ ( 15,012 ) Six Months Ended June 30, 2023 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ 3,109 $ ( 653 ) $ 2,456 Reclassification adjustment for net gains included in net income ( 27 ) 6 ( 21 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period 7,023 ( 1,151 ) 5,872 Reclassification adjustment for net gains included in net income ( 4,460 ) 892 ( 3,568 ) Total other comprehensive loss $ 5,645 $ ( 906 ) $ 4,739 Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended June 30, 2022 Securities available for sale and transferred securities: Change in net unrealized losses during the period $ ( 53,212 ) $ 11,174 $ ( 42,038 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized losses during the period ( 13,710 ) 2,879 ( 10,831 ) Reclassification adjustment for net gains included in net income 2,041 ( 429 ) 1,612 Total other comprehensive loss $ ( 64,881 ) $ 13,624 $ ( 51,257 ) Six Months Ended June 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 127,405 ) $ 26,754 $ ( 100,651 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 29,951 ) 6,290 ( 23,661 ) Reclassification adjustment for net gains included in net income 1,248 ( 262 ) 986 Total other comprehensive loss $ ( 156,108 ) $ 32,782 $ ( 123,326 ) Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Securities Post- Cash Flow Hedge Derivatives Accumulated (In Thousands) Balance January 1, 2023 $ ( 142,236 ) $ 402 $ ( 31,626 ) $ ( 173,460 ) Other comprehensive income before reclassifications 2,456 — 5,872 8,328 Amounts reclassified from accumulated other comprehensive income ( 21 ) — ( 3,568 ) ( 3,589 ) Net other comprehensive income during period 2,435 — 2,304 4,739 Balance June 30, 2023 $ ( 139,801 ) $ 402 $ ( 29,322 ) $ ( 168,721 ) Balance January 1, 2022 $ ( 4,023 ) $ ( 79 ) $ 674 $ ( 3,428 ) Other comprehensive loss before reclassifications ( 100,651 ) — ( 23,661 ) ( 124,312 ) Amounts reclassified from accumulated other comprehensive loss — — 986 986 Net other comprehensive loss during period ( 100,651 ) — ( 22,675 ) ( 123,326 ) Balance June 30, 2022 $ ( 104,674 ) $ ( 79 ) $ ( 22,001 ) $ ( 126,754 ) |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards Update | Accounting Standards Update ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-4, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to adoption of alternative reference rates which include Secured Overnight Financing Rate (“SOFR”). The Company identified outstanding loans with LIBOR-based rates and obtained updated reference rate language either at the time of renewal or through separate amendment, or otherwise established that an alternate reference rate will apply after June 30, 2023. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. On December 21, 2022, the FASB issued ASU 2022-06, "Reference Rare Reform (Topic 848): Deferral of the Sunset of Date of Topic 848," which extends the sunset date of ASC Topic 848, "Reference Rate Reform," to December 31, 2024. FASB ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. FASB ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on the best information available. In that regard, FASB ASC Topic 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by a correlation or other means. • Level 3 : Unobservable inputs for determining fair value of assets and liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The Company has adopted ASU 2016-13 (Topic 326 – Credit Losses) to calculate the ACL, which requires a projection of credit loss over the contract lifetime of the credit adjusted for prepayment tendencies. This valuation account is deducted from the loans amortized cost basis to present the net amount expected to be collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. |
Accounting Standards Not Yet Adopted | ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued ASU 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which eliminated troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and added new vintage disclosures for gross write-offs. The elimination of TDR accounting could be adopted either prospectively for loan modifications or on a modified retrospective basis that could result in a cumulative effect adjustment to retained earnings in the period of adoption. The Company adopted ASU 2022-02 on January 1, 2023 on a modified retrospective basis. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Therefore, the Company did not make an adjustment to retained earnings. The effect of adoption is included in provision for 2023. ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements: On March 27, 2023, the FASB issued ASU 2023-01 “Leases (Topic 842): Common Control Arrangements” in order to improve the guidance for applying this topic to arrangements between entities under common control. This ASU also requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, however, if an entity adopts these amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes the interim period. The Company does not anticipate any material effect on the Company upon adoption. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Recurring Basis June 30, 2023 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 96,176 $ — $ 96,176 Mortgage-backed securities — 161,199 — 161,199 Collateralized mortgage obligations — 238,993 — 238,993 Asset-backed securities — 151,087 — 151,087 Corporate bonds — 60,540 — 60,540 Obligations of state and political subdivisions — 204,818 — 204,818 US Treasuries 48,310 — — 48,310 Equity securities 6,458 — — 6,458 Loans held for sale, at fair value — 16,617 111,462 128,079 Interest rate swaps — 3,179 — 3,179 Cash flow/ Fair value hedge derivative — 4,524 — 4,524 Mortgage banking derivatives — 3,426 — 3,426 Liabilities: Interest rate swaps — 3,179 — 3,179 Cash flow hedge derivatives — 38,796 — 38,796 December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 95,909 $ — $ 95,909 Mortgage-backed securities — 167,589 — 167,589 Collateralized mortgage obligations — 249,805 — 249,805 Asset-backed securities — 192,504 — 192,504 Corporate bonds — 64,482 — 64,482 Obligations of state and political subdivisions — 221,594 — 221,594 US Treasuries 48,198 — — 48,198 Equity securities 7,832 — — 7,832 Loans held for sale, at fair value — 23,589 91,662 115,251 Interest rate swaps — 4,494 — 4,494 Mortgage banking derivatives — 1,349 — 1,349 Liabilities: Interest rate swaps — 4,494 — 4,494 Cash flow hedge derivatives — 40,032 — 40,032 |
Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 . There were no securities that were measured at Level 3 for the three and six months ended June 30, 2023 and 2022. Construction loans held for sale Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance of recurring Level 3 assets at beginning of period $ 97,280 $ 116,484 $ 91,662 $ 134,167 Total gains (losses) for the period Included in change in fair value of loans held for sale ( 990 ) ( 6,331 ) 4,981 ( 19,790 ) Originations 24,321 37,264 47,502 73,607 Sales ( 9,149 ) ( 30,402 ) ( 32,683 ) ( 70,969 ) Balance of recurring Level 3 assets at end of period $ 111,462 $ 117,015 $ 111,462 $ 117,015 |
Schedule of Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis | For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 111,462 Adjusted secondary market pricing Adjustments 0.00 % - 0.26 % December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 91,662 Adjusted secondary market pricing Adjustments 0.00 % - 1.04 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 6,424 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 13.73 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,146 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 28.29 % |
Schedule of financial assets measured at fair value on a non-recurring basis | The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Non-Recurring Basis June 30, 2023 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 5,173 $ 5,173 Commercial — — 1,251 1,251 Mortgage servicing rights $ — $ 1,407 $ — $ 1,407 December 31, 2022 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 3,512 $ 3,512 Commercial — — 5,492 5,492 Mortgage servicing rights $ — $ 5,126 $ — $ 5,126 For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 6,424 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 13.73 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,146 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 50 % 28.29 % |
Schedule of FHLB advances with maturities | FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at June 30, 2023. The carrying value and estimated fair values of financial instruments at June 30, 2023 and December 31, 2022, were as follows: Fair Value Measurements at June 30, 2023 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 121,727 $ 121,727 $ 121,727 $ — $ — Federal Home Loan Bank Stock 39,887 N/A N/A N/A N/A Loans receivable, net 6,632,647 6,254,545 — — 6,254,545 Accrued interest receivable 30,056 30,056 30,056 — — Financial Liabilities: Deposits $ 6,994,432 $ 6,996,180 $ 5,359,067 $ 1,637,113 $ — Advances from Federal Home Loan Bank 455,000 455,038 — 455,038 — Subordinated debentures 85,166 72,675 — — 72,675 Fair Value Measurements at December 31, 2022 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 128,160 $ 128,160 $ 128,160 $ — $ — Federal Home Loan Bank Stock 29,185 N/A N/A N/A N/A Loans receivable, net 6,387,804 6,129,814 — — 6,129,814 Accrued interest receivable 28,709 28,709 28,709 — — Financial Liabilities: Deposits $ 6,906,719 $ 6,881,110 $ 5,852,952 $ 1,028,158 $ — Advances from Federal Home Loan Bank 428,000 427,999 — 427,999 $ — Subordinated debentures 85,103 76,989 — — 76,989 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Units and Stock Grants | The following table sets forth Premier's performance and restricted stock activity during the six months ended June 30, 2023: Performance Stock Units Restricted Stock Units Restricted Stock Awards Unvested Shares Shares Weighted- Shares Weighted- Shares Weighted- Unvested at January 1, 2023 229,813 $ 29.12 31,796 $ 28.44 99,412 $ 29.14 Granted 66,482 24.78 — — 87,071 23.09 Vested ( 55,435 ) 26.48 ( 10,799 ) 26.60 ( 21,799 ) 29.72 Forfeited ( 23,298 ) 26.48 ( 1,167 ) 33.26 ( 2,795 ) 24 Unvested at June 30, 2023 217,562 $ 28.75 19,830 $ 29.16 161,889 $ 25.90 |
Schedule of Stock Option Activity Under the Plans | Following is stock option activity under the plans during the six months ended June 30, 2023: Options Weighted Weighted Aggregate Options outstanding, January 1, 2023 29,661 $ 22.54 Forfeited or cancelled — — Exercised — — Granted — — Options outstanding, June 30, 2023 29,661 $ 22.54 3.59 $ 9 Exercisable at June 30, 2023 29,661 $ 22.54 3.59 $ 9 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands, except per share data) Basic Earnings Per Share: Net income available to common shareholders $ 48,391 $ 22,360 $ 66,540 $ 48,717 Less: income allocated to participating securities 19 17 104 54 Net income allocated to common shareholders 48,372 22,343 66,436 48,663 Weighted average common shares outstanding including 35,722 35,608 35,686 35,816 Less: Participating securities ( 28 ) 27 15 40 Average common shares 35,750 35,581 35,671 35,776 Basic earnings per common share $ 1.35 $ 0.63 $ 1.86 $ 1.36 Diluted Earnings Per Share: Net income allocated to common shareholders $ 48,372 $ 22,343 $ 66,436 $ 48,663 Weighted average common shares outstanding for basic earnings 35,750 35,581 35,671 35,776 Add: Dilutive effects of stock options and restricted stock units 50 101 79 104 Average shares and dilutive potential common shares 35,800 35,682 35,750 35,880 Diluted earnings per common share $ 1.35 $ 0.63 $ 1.86 $ 1.36 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Marketable Securities [Abstract] | |
Summary of Available-for-Sale Securities | The following is a summary of available-for-sale securities: Amortized Gross Gross Fair Value (In Thousands) At June 30, 2023 Available-for-Sale Securities: Obligations of U.S. government corporations and agencies $ 116,781 $ — $ ( 20,605 ) $ 96,176 Mortgage-backed securities 193,147 — ( 31,948 ) 161,199 Collateralized mortgage obligations 292,120 — ( 53,127 ) 238,993 Asset-backed securities 157,152 310 ( 6,375 ) 151,087 Corporate bonds 71,312 — ( 10,772 ) 60,540 Obligations of state and political subdivisions 251,715 13 ( 46,910 ) 204,818 US Treasuries 55,860 — ( 7,550 ) 48,310 Total Available-for-Sale $ 1,138,087 $ 323 $ ( 177,287 ) $ 961,123 Amortized Gross Gross Fair Value (In Thousands) At December 31, 2022 Available-for-sale Obligations of U.S. government corporations and agencies $ 117,150 $ — $ ( 21,241 ) $ 95,909 Mortgage-backed securities 200,548 — ( 32,959 ) 167,589 Collateralized mortgage obligations 299,731 — ( 49,926 ) 249,805 Asset-backed securities 200,312 517 ( 8,325 ) 192,504 Corporate bonds 71,543 — ( 7,061 ) 64,482 Obligations of state and political subdivisions 274,856 92 ( 53,354 ) 221,594 US Treasuries 55,987 — ( 7,789 ) 48,198 Total Available-for-Sale $ 1,220,127 $ 609 $ ( 180,655 ) $ 1,040,081 |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of the investment securities portfolio at June 30, 2023, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBS, CMOs and ABS, which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. Available-for-Sale Amortized Fair Value (In Thousands) Due in one year or less $ 363 $ 364 Due after one year through five years 42,504 38,777 Due after five years through ten years 229,349 194,741 Due after ten years 223,452 175,962 MBS/CMO/ABS 642,419 551,279 $ 1,138,087 $ 961,123 |
Schedule of Securities that were in an Unrealized Loss Position | The following tables summarize Premier’s securities that were in an unrealized loss position at June 30, 2023 and December 31, 2022: Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At June 30, 2023 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ — $ — $ 96,176 $ ( 20,605 ) $ 96,176 $ ( 20,605 ) Mortgage-backed securities 3,472 ( 164 ) 157,727 ( 31,784 ) 161,199 ( 31,948 ) Collateralized mortgage obligations 2,339 ( 7 ) 236,654 ( 53,120 ) 238,993 ( 53,127 ) Asset-backed securities — — 122,421 ( 6,375 ) 122,421 ( 6,375 ) Corporate bonds 7,060 ( 940 ) 53,480 ( 9,832 ) 60,540 ( 10,772 ) Obligations of state and political subdivisions 17,988 ( 401 ) 182,578 ( 46,509 ) 200,566 ( 46,910 ) US Treasuries — 48,310 ( 7,550 ) 48,310 ( 7,550 ) Total available-for-sale $ 30,859 $ ( 1,512 ) $ 897,346 $ ( 175,775 ) $ 928,205 $ ( 177,287 ) Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At December 31, 2022 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 64,394 $ ( 11,158 ) $ 31,513 $ ( 10,083 ) $ 95,907 $ ( 21,241 ) Mortgage-backed securities-residential 40,908 ( 4,184 ) 126,681 ( 28,775 ) 167,589 ( 32,959 ) Collateralized mortgage obligations 60,676 ( 11,985 ) 159,129 ( 37,941 ) 219,805 ( 49,926 ) Asset-backed securities 45,534 ( 1,499 ) 113,580 ( 6,826 ) 159,114 ( 8,325 ) Corporate bonds 49,114 ( 4,960 ) 15,368 ( 2,101 ) 64,482 ( 7,061 ) Obligations of state and political subdivisions 106,610 ( 13,378 ) 98,063 ( 39,976 ) 204,673 ( 53,354 ) US Treasuries 19,891 ( 3,448 ) 28,309 ( 4,341 ) 48,200 ( 7,789 ) Total available-for-sale $ 387,127 $ ( 50,612 ) $ 572,643 $ ( 130,043 ) $ 959,770 $ ( 180,655 ) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Schedule of loans receivable | Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following: June 30, December 31, (In Thousands) Real Estate: Residential $ 1,711,632 $ 1,535,574 Commercial 2,848,410 2,762,311 Construction 1,039,689 1,278,255 5,599,731 5,576,140 Other Loans: Commercial 1,069,372 1,055,180 Home equity and improvement 272,792 277,613 Consumer finance 210,390 213,405 1,552,554 1,546,198 Loans before deferred loan origination fees and costs 7,152,285 7,122,338 Deduct: Undisbursed construction loan funds ( 455,653 ) ( 672,775 ) Net deferred loan origination fees and costs 11,936 11,057 Allowance for credit losses ( 75,921 ) ( 72,816 ) Total loans $ 6,632,647 $ 6,387,804 |
Summary of amortized cost basis of collateral-dependent loans by Class of loans and collateral type | The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ — $ — $ — $ — $ — Commercial — — — — — Construction 12,934 — 1,190 — 14,124 Other Loans: Commercial 2,075 1,900 5,139 881 9,995 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 15,009 $ 1,900 $ 6,329 $ 881 $ 24,119 December 31, 2022 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 51 $ — $ — $ — $ 51 Commercial 10,708 — 2,716 — 13,424 Construction — — — — — Other Loans: Commercial 2,161 523 3,858 — 6,542 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 12,920 $ 523 $ 6,574 $ — $ 20,017 |
Schedule of current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned | The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated: June 30, December 31, (In Thousands) Non-accrual loans with reserve $ 24,726 $ 20,369 Non-accrual loans without reserve 12,265 13,453 Loans 90 days plus past due and still accruing — — Total non-performing loans 36,991 33,822 Real estate and other assets held for sale 561 619 Total non-performing assets $ 37,552 $ 34,441 |
Schedule of aging of the amortized cost/ recorded investment in past due and non- accrual loans | The following table presents the aging of the amortized cost in past due and non-accrual loans as of June 30, 2023, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,691,587 $ 109 $ 6,455 $ 7,886 $ 14,450 $ 9,334 Commercial 2,844,252 194 444 6,167 6,805 14,018 Construction 583,751 — 285 — 285 — Other Loans: Commercial 1,054,469 4,234 57 4,944 9,235 6,686 Home equity and improvement 266,742 2,158 628 1,194 3,980 1,692 Consumer finance 206,855 2,537 1,198 1,953 5,688 2,373 PCD 16,936 296 809 2,428 3,533 2,888 Total Loans $ 6,664,592 $ 9,528 $ 9,876 $ 24,572 $ 43,976 $ 36,991 The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2022, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,516,135 $ 279 $ 6,350 $ 6,203 $ 12,832 $ 7,724 Commercial 2,751,933 327 878 11,477 12,682 13,396 Construction 605,043 298 139 — 437 — Other Loans: Commercial 1,044,898 413 128 4,635 5,176 4,862 Home equity and improvement 269,183 4,342 489 1,190 6,021 1,637 Consumer finance 209,062 2,763 1,397 2,227 6,387 2,401 PCD 17,082 603 495 2,651 3,749 3,802 Total Loans $ 6,413,336 $ 9,025 $ 9,876 $ 28,383 $ 47,284 $ 33,822 |
Schedule of percentage of the amortized cost basis of loan category | The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of loan category is also presented below: Loans Modifications Made to Borrowers Experiencing Financial Difficulty Loans Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension Loan Type Amortized Cost Basis Percent of total loans by Amortized Cost Basis Percent of total loans by Real Estate: Residential $ 109 0.01 % 109 0.01 % Commercial 4,431 0.16 % 4,798 0.17 % Construction — — — — Other Loans: Commercial — — 38 0.00 % Home equity and improvement — — — — Consumer finance — — — — Total $ 4,540 $ 4,945 |
Schedule of Financial Effects of Loan Modifications | The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Loan Type Financial Effect Real Estate: Residential -Term extended from 7 year balloon to 30 years Commercial -Added 12 months to the life of the loan, which reduced monthly payment amounts for the borrower. -Term extension 10 yr term/ 20 yr am to 12 month interest only Other Loans: Commercial -Added 84 months to the life of the loan to term out 2 year balloon, which reduced monthly payment amounts for the borrower. Rate Reduction Loan Type Financial Effect Real Estate: Commercial -Interest rate reduction 11.08 % to 5.00 % -Interest rate reduction 10.65 % to 5.00 % |
Schedule of risk category of loans by class of loans | As of June 30, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,695,235 $ 484 $ 10,318 $ — $ 10,318 $ 1,706,037 Commercial 2,801,710 20,751 28,596 — 28,596 2,851,057 Construction 575,703 8,333 — — — 584,036 Other Loans: Commercial 1,021,363 27,376 14,965 — 14,965 1,063,704 Home equity and improvement 269,038 — 1,684 — 1,684 270,722 Consumer finance 210,348 — 2,195 — 2,195 212,543 PCD 13,981 3,786 2,702 — 2,702 20,469 Total Loans (1) $ 6,587,378 $ 60,730 $ 60,460 $ — $ 60,460 $ 6,708,568 (1) Total loans are net of undisbursed funds and deferred fees and costs. As of December 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,519,657 $ 935 $ 8,375 $ — $ 8,375 $ 1,528,967 Commercial 2,698,292 46,029 20,294 — 20,294 2,764,615 Construction 605,480 — — — — 605,480 Other Loans: Commercial 1,016,925 26,319 6,830 — 6,830 1,050,074 Home equity and improvement 273,613 — 1,591 — 1,591 275,204 Consumer finance 213,078 — 2,371 — 2,371 215,449 PCD 13,904 2,590 4,337 — 4,337 20,831 Total Loans (1) $ 6,340,949 $ 75,873 $ 43,798 $ — $ 43,798 $ 6,460,620 (1) Total loans are net undisbursed loan funds and deferred fees and costs |
Summary of amortized cost basis of loans by credit quality indicator and class of loans | The following tables present the amortized cost basis of loans by credit quality indicator and class of loans as of June 30, 2023 and December 31, 2022 (in thousands). Term of loans by origination 2023 2022 2021 2020 2019 Prior Revolving Loans Total As of June 30, 2023 Real Estate Residential: Current-period gross charge-offs $ — $ — $ 217 $ — $ — $ 66 $ — $ 283 Risk Rating Unclassified $ 72,488 $ 436,861 $ 446,915 $ 323,345 $ 90,711 $ 322,786 $ 2,129 $ 1,695,235 Special Mention — — — 175 — 309 — 484 Substandard 117 1,298 1,536 1,390 651 5,326 — 10,318 Doubtful — — — — — — — — Total $ 72,605 $ 438,159 $ 448,451 $ 324,910 $ 91,362 $ 328,421 $ 2,129 $ 1,706,037 Commercial: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 20 $ — $ 20 Risk Rating Unclassified $ 125,474 $ 600,502 $ 529,545 $ 508,611 $ 314,839 $ 705,271 $ 17,468 $ 2,801,710 Special Mention — 1,459 4,096 2,012 — 13,042 142 20,751 Substandard 51 270 195 2,705 4,828 20,415 132 28,596 Doubtful — — — — — — — — Total $ 125,525 $ 602,231 $ 533,836 $ 513,328 $ 319,667 $ 738,728 $ 17,742 $ 2,851,057 Construction: Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Risk Rating Unclassified $ 46,056 $ 343,257 $ 142,495 $ 41,942 $ 1,953 $ — $ — $ 575,703 Special Mention — — — — 8,333 — — 8,333 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 46,056 $ 343,257 $ 142,495 $ 41,942 $ 10,286 $ — $ — $ 584,036 Other Loans Commercial: Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ 2 $ 2 Risk Rating Unclassified $ 84,763 $ 259,149 $ 178,867 $ 71,140 $ 42,385 $ 34,794 $ 350,265 $ 1,021,363 Special Mention 4,586 1,215 7,891 290 511 4,080 8,803 27,376 Substandard — 814 4,080 4,815 474 2,040 2,742 14,965 Doubtful — — — — — — — — Total $ 89,349 $ 261,178 $ 190,838 $ 76,245 $ 43,370 $ 40,914 $ 361,810 $ 1,063,704 Home equity and Improvement: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 22 $ 99 $ 121 Risk Rating Unclassified $ 10,650 $ 27,538 $ 19,957 $ 4,841 $ 3,255 $ 29,125 $ 173,672 $ 269,038 Special Mention — — — — — — — — Substandard — 49 14 — 28 358 1,235 1,684 Doubtful — — — — — — — — Total $ 10,650 $ 27,587 $ 19,971 $ 4,841 $ 3,283 $ 29,483 $ 174,907 $ 270,722 Consumer Finance: Current-period gross charge-offs $ — $ 85 $ 56 $ 63 $ 9 $ 8 $ 50 $ 271 Risk Rating Unclassified $ 31,040 $ 113,854 $ 27,648 $ 14,231 $ 10,204 $ 3,538 $ 9,833 $ 210,348 Special Mention — — — — — — — — Substandard — 1,059 412 405 251 68 — 2,195 Doubtful — — — — — — — — Total $ 31,040 $ 114,913 $ 28,060 $ 14,636 $ 10,455 $ 3,606 $ 9,833 $ 212,543 PCD: Current-period gross charge-offs $ — $ — $ — $ — $ — $ 46 $ 1 $ 47 Risk Rating Unclassified $ — $ — $ — $ — $ 121 $ 13,220 $ 640 $ 13,981 Special Mention — — — — — 795 2,991 3,786 Substandard — — — — — 2,360 342 2,702 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ 121 $ 16,375 $ 3,973 $ 20,469 Term of loans by origination 2022 2021 2020 2019 2018 Prior Revolving Loans Total As of December 31, 2022 Real Estate Residential: Risk Rating Pass $ 264,884 $ 474,992 $ 335,982 $ 93,548 $ 51,710 $ 296,089 $ 2,452 $ 1,519,657 Special Mention — — 180 30 80 78 567 935 Substandard 280 1,648 1,614 922 517 3,394 — 8,375 Doubtful — — — — — — — — Total $ 265,164 $ 476,640 $ 337,776 $ 94,500 $ 52,307 $ 299,561 $ 3,019 $ 1,528,967 Commercial: Risk Rating Pass $ 582,384 $ 506,386 $ 517,790 $ 324,210 $ 194,240 $ 557,728 $ 15,554 $ 2,698,292 Special Mention 161 3,614 — 593 25,395 15,561 705 46,029 Substandard 115 2,104 527 4,612 4,455 8,348 133 20,294 Doubtful — — — — — — — — Total $ 582,660 $ 512,104 $ 518,317 $ 329,415 $ 224,090 $ 581,637 $ 16,392 $ 2,764,615 Construction: Risk Rating Pass $ 348,570 $ 182,755 $ 53,161 $ 20,994 $ — $ — $ — $ 605,480 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 348,570 $ 182,755 $ 53,161 $ 20,994 $ — $ — $ — $ 605,480 Other Loans Commercial: Risk Rating Pass $ 266,501 $ 208,663 $ 90,014 $ 49,887 $ 23,719 $ 22,515 $ 355,626 $ 1,016,925 Special Mention 1,891 4,094 3,913 1,533 1,160 5,365 8,363 26,319 Substandard 16 119 3,897 4 190 204 2,400 6,830 Doubtful — — — — — — — — Total $ 268,408 $ 212,876 $ 97,824 $ 51,424 $ 25,069 $ 28,084 $ 366,389 $ 1,050,074 Home equity and Improvement: Risk Rating Pass $ 30,009 $ 21,116 $ 5,387 $ 3,592 $ 1,849 $ 30,509 $ 181,151 $ 273,613 Special Mention — — — — — — — — Substandard 44 14 — 28 32 502 971 1,591 Doubtful — — — — — — — — Total $ 30,053 $ 21,130 $ 5,387 $ 3,620 $ 1,881 $ 31,011 $ 182,122 $ 275,204 Consumer Finance: Risk Rating Pass $ 133,194 $ 33,109 $ 17,219 $ 13,681 $ 4,022 $ 2,529 $ 9,324 $ 213,078 Special Mention — — — — — — — — Substandard 676 483 668 316 62 34 132 2,371 Doubtful — — — — — — — — Total $ 133,870 $ 33,592 $ 17,887 $ 13,997 $ 4,084 $ 2,563 $ 9,456 $ 215,449 PCD: Risk Rating Pass $ — $ — $ — $ 131 $ 369 $ 13,117 $ 287 $ 13,904 Special Mention — — — — — 292 2,298 2,590 Substandard — — — 2 22 3,697 616 4,337 Doubtful — — — — — — — — Total $ — $ — $ — $ 133 $ 391 $ 17,106 $ 3,201 $ 20,831 |
Summary of credit loss estimation | The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family nonowner occupied DCF National unemployment 1-4 Family owner occupied DCF National unemployment Commercial real estate Commercial real estate nonowner occupied DCF National unemployment Commercial real estate owner occupied DCF National unemployment Multi Family DCF National unemployment Agriculture Land DCF National unemployment Other commercial real estate DCF National unemployment Construction secured by real estate Construction Other PD/LGD Call report loss history Construction Residential PD/LGD Call report loss history Commercial Commercial working capital PD/LGD Call report loss history Agriculture production PD/LGD Call report loss history Other commercial PD/LGD Call report loss history Home equity and improvement Home equity and improvement PD/LGD Call report loss history Consumer finance Consumer direct Remaining life Call report loss history Consumer indirect DCF National unemployment |
Schedule of allowance for credit loss (ACL) activity | The following table discloses allowance for credit loss (“ACL”) activity for the three and six months ended June 30, 2023 and 2022 by portfolio segment (in thousands): Three Months Ended June 30, 2023 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 18,229 $ 33,831 $ 3,882 $ 12,525 $ 3,654 $ 2,152 $ 74,273 Charge-Offs ( 304 ) ( 20 ) — ( 8 ) ( 121 ) ( 291 ) ( 744 ) Recoveries 23 59 — 807 36 57 982 Provisions 970 881 ( 51 ) ( 223 ) ( 170 ) 3 1,410 Ending Allowance $ 18,918 $ 34,751 $ 3,831 $ 13,101 $ 3,399 $ 1,921 $ 75,921 Six Months Ended June 30, 2023 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 16,711 $ 34,218 $ 4,025 $ 11,769 $ 4,044 $ 2,049 $ 72,816 Charge-Offs ( 309 ) ( 1,689 ) — ( 519 ) ( 200 ) ( 740 ) ( 3,457 ) Recoveries 45 71 — 903 57 132 1,208 Provisions 2,471 2,151 ( 194 ) 948 ( 502 ) 480 5,354 Ending Allowance $ 18,918 $ 34,751 $ 3,831 $ 13,101 $ 3,399 $ 1,921 $ 75,921 Three Months Ended June 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Finance Total Beginning Allowance $ 11,640 $ 34,201 $ 2,613 $ 13,821 $ 3,919 $ 1,001 $ 67,195 Charge-Offs ( 861 ) ( 137 ) ( 16 ) ( 5,303 ) ( 248 ) ( 138 ) ( 6,703 ) Recoveries 673 455 3 184 79 37 1,431 Provisions 2,661 433 399 1,060 253 345 5,151 Ending Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 Six Months Ended June 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 12,029 $ 32,399 $ 3,004 $ 13,410 $ 4,221 $ 1,405 $ 66,468 Charge-Offs ( 1,001 ) ( 144 ) ( 16 ) ( 5,313 ) ( 277 ) ( 241 ) ( 6,992 ) Recoveries 754 514 3 286 113 151 1,821 Provisions 2,331 2,183 8 1,379 ( 54 ) ( 70 ) 5,777 Ending Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 |
Schedule of outstanding balance and related allowance on loans | The outstanding balance and related allowance on these loans as of June 30, 2023 and December 31, 2022 is as follows (in thousands): As of June 30, 2023 As of December 31, 2022 Loan Balance ACL Balance Loan Balance ACL Balance (In Thousands) (In Thousands) Real Estate: Residential $ 11,164 $ 144 $ 11,546 $ 139 Commercial 1,375 43 1,544 34 Construction — — — — 12,539 187 13,090 173 Other Loans: Commercial 5,628 563 5,058 594 Home equity and improvement 2,070 62 2,409 80 Consumer finance 232 5 274 5 7,930 630 7,741 679 Total $ 20,469 $ 817 $ 20,831 $ 852 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Mortgage Banking [Abstract] | |
Schedule of net revenues from the sales and servicing of mortgage loans | Net revenues from the sales and servicing of mortgage loans consisted of the following: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Mortgage banking gain, net $ 2,242 $ 1,166 $ 1,405 $ 3,710 Mortgage loans servicing revenue (expense): Mortgage loans servicing revenue 1,845 1,862 3,733 3,741 Amortization of mortgage servicing rights ( 1,277 ) ( 1,375 ) ( 2,496 ) ( 2,778 ) Mortgage servicing rights valuation adjustments 130 295 24 1,527 698 782 1,261 2,490 Net revenue from sale and servicing of mortgage loans $ 2,940 $ 1,948 $ 2,666 $ 6,200 |
Schedule of capitalized mortgage and valuation allowance | Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Mortgage servicing assets: Balance at beginning of period $ 21,447 $ 22,189 $ 21,858 $ 22,244 Loans sold, servicing retained 653 1,059 1,461 2,407 Amortization ( 1,277 ) ( 1,375 ) ( 2,496 ) ( 2,778 ) Carrying value before valuation allowance at end of period 20,823 21,873 20,823 21,873 Valuation allowance: Balance at beginning of period ( 793 ) ( 1,474 ) ( 687 ) ( 2,707 ) Impairment recovery 130 294 24 1,527 Balance at end of period ( 663 ) ( 1,180 ) ( 663 ) ( 1,180 ) Net carrying value of MSRs at end of period $ 20,160 $ 20,693 $ 20,160 $ 20,693 Fair value of MSRs at end of period $ 25,044 $ 26,927 $ 25,044 $ 26,927 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Undiscounted Cash Flows Included in Lease Liabilities | Undiscounted cash flows included in lease liabilities have expected contractual payments as follows: (In Thousands) June 30, 2023 Remainder of 2023 $ 2,715 2024 1,743 2025 1,447 2026 1,247 2027 1,118 Thereafter 10,564 Total undiscounted minimum lease payments 18,834 Present value adjustment ( 7,145 ) Total lease liabilities $ 11,689 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Summary of deposit balances | A summary of deposit balances is as follows: June 30, December 31, (In Thousands) Non-interest-bearing checking accounts $ 1,573,837 $ 1,869,509 Interest-bearing checking and money market accounts 3,036,528 3,185,440 Savings deposits 748,702 798,003 Retail certificates of deposit less than $250,000 753,867 645,318 Retail certificates of deposit greater than $250,000 468,261 264,741 Brokered deposits 413,237 143,708 $ 6,994,432 $ 6,906,719 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures | The Company's FHLB advances and junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following: June 30, 2023 December 31, 2022 (In Thousands) FHLB Advances: Single maturity fixed rate advances $ 125,000 $ 195,000 Overnight advances 330,000 233,000 Total $ 455,000 $ 428,000 First Defiance Statutory Trust I due December 2035 $ 20,619 $ 20,619 First Defiance Statutory Trust II due June 2037 15,464 15,464 Junior subordinated debentures owed to unconsolidated subsidiary trusts $ 36,083 $ 36,083 Subordinated debentures $ 49,083 $ 49,020 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to make loans $ 653,935 $ 957,533 Unused lines of credit 1,040,552 1,044,875 Standby letters of credit 18,288 18,632 Total $ 1,712,775 $ 2,021,040 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Current: Federal $ 16,035 $ 6,053 $ 19,387 $ 11,867 State and local 137 192 273 355 Deferred ( 2,260 ) ( 799 ) ( 1,645 ) ( 606 ) $ 13,912 $ 5,446 $ 18,015 $ 11,616 |
Schedule of effective income tax rate reconciliation | The effective tax rates differ from federal statutory rate applied to income due to the following: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Tax expense at statutory rate ( 21 %) $ 13,084 $ 5,840 $ 17,757 $ 12,670 Increases (decreases) in taxes from: State income tax - net of federal tax benefit 109 152 216 280 Tax exempt interest income, net of TEFRA ( 123 ) ( 188 ) ( 263 ) ( 374 ) Bank owned life insurance ( 213 ) ( 206 ) ( 511 ) ( 415 ) Captive insurance ( 154 ) ( 96 ) ( 246 ) ( 201 ) Other 1,209 ( 56 ) 1,062 ( 344 ) Total $ 13,912 $ 5,446 $ 18,015 $ 11,616 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Carrying Values of the Derivative Instrument Assets | The table below provides data about the carrying values of these derivative instrument assets: June 30, 2023 December 31, 2022 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives $ 3,426 $ 1,349 |
Schedule of Amount of Gains and Losses Recognized in Income on Derivative Instruments Not Designated as Hedging Instruments | The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at June 30, 2023 and 2022 represents a fair value adjustment that runs through mortgage banking income. Three Months Ended Six Months Ended 2023 2022 2023 2022 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives – (Loss) Gain $ 4,774 $ ( 8,072 ) $ 2,077 $ ( 485 ) |
Summary of Interest Rate Swap Designated as Cash Flow Hedge and Fair Value Hedge | A summary of the interest rate swap designated as a cash flow hedge is presented below (dollars in thousands): June 30, 2023 December 31, 2022 Notional amount $ 250,000 $ 250,000 Weighted average fixed receive rates 1.437 % 1.437 % Weighted average variable 1-month LIBOR pay rates 5.218 % 4.392 % Weighted average remaining maturity (in years) 7.5 8.1 Fair value $ ( 38,796 ) $ ( 40,032 ) A summary of the interest rate swaps designated as fair value hedges are presented below (dollars in thousands): June 30, 2023 Notional amount Fair Value Hedge $ 375,000 Weighted average fixed pay rates 4.113 % Weighted average variable SOFR receive rates 5.070 % Weighted average remaining maturity (in years) 2.8 Fair value $ 3,196 A summary of the interest rate swap designated as a cash flow hedge is presented below (dollars in thousands): June 30, 2023 Notional amount Cash Flow Hedge $ 125,000 Weighted average fixed pay rates 4.160 % Weighted average variable SOFR receive rates 5.170 % Weighted average remaining maturity (in years) 2.0 Fair value $ 1,328 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of reclassification adjustments related to securities available for sale are included in gains on sale of securities | Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income. Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended June 30, 2023 Securities available for sale and transferred securities: Change in net unrealized gains during the period $ ( 15,290 ) $ 3,211 $ ( 12,079 ) Reclassification adjustment for net gains included in net income 7 ( 1 ) 6 Cash flow hedge derivatives Change in net unrealized gains during the period ( 1,563 ) 652 ( 911 ) Reclassification adjustment for net gains included in net income ( 2,511 ) 483 ( 2,028 ) Total other comprehensive income $ ( 19,357 ) $ 4,345 $ ( 15,012 ) Six Months Ended June 30, 2023 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ 3,109 $ ( 653 ) $ 2,456 Reclassification adjustment for net gains included in net income ( 27 ) 6 ( 21 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period 7,023 ( 1,151 ) 5,872 Reclassification adjustment for net gains included in net income ( 4,460 ) 892 ( 3,568 ) Total other comprehensive loss $ 5,645 $ ( 906 ) $ 4,739 Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended June 30, 2022 Securities available for sale and transferred securities: Change in net unrealized losses during the period $ ( 53,212 ) $ 11,174 $ ( 42,038 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized losses during the period ( 13,710 ) 2,879 ( 10,831 ) Reclassification adjustment for net gains included in net income 2,041 ( 429 ) 1,612 Total other comprehensive loss $ ( 64,881 ) $ 13,624 $ ( 51,257 ) Six Months Ended June 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 127,405 ) $ 26,754 $ ( 100,651 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 29,951 ) 6,290 ( 23,661 ) Reclassification adjustment for net gains included in net income 1,248 ( 262 ) 986 Total other comprehensive loss $ ( 156,108 ) $ 32,782 $ ( 123,326 ) |
Schedule of accumulated other comprehensive income (loss), net of tax | Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Securities Post- Cash Flow Hedge Derivatives Accumulated (In Thousands) Balance January 1, 2023 $ ( 142,236 ) $ 402 $ ( 31,626 ) $ ( 173,460 ) Other comprehensive income before reclassifications 2,456 — 5,872 8,328 Amounts reclassified from accumulated other comprehensive income ( 21 ) — ( 3,568 ) ( 3,589 ) Net other comprehensive income during period 2,435 — 2,304 4,739 Balance June 30, 2023 $ ( 139,801 ) $ 402 $ ( 29,322 ) $ ( 168,721 ) Balance January 1, 2022 $ ( 4,023 ) $ ( 79 ) $ 674 $ ( 3,428 ) Other comprehensive loss before reclassifications ( 100,651 ) — ( 23,661 ) ( 124,312 ) Amounts reclassified from accumulated other comprehensive loss — — 986 986 Net other comprehensive loss during period ( 100,651 ) — ( 22,675 ) ( 123,326 ) Balance June 30, 2022 $ ( 104,674 ) $ ( 79 ) $ ( 22,001 ) $ ( 126,754 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - First Insurance Group $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued operations,net cash received | $ 47.4 |
Goodwill and intangibles including discontinued operation | 24.7 |
Pre tax gain on sale of transaction | 36.3 |
Transaction cost | 3.7 |
Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 8.5 |
Increase in equity by sale of discontinued operations | $ 24.1 |
Fair Value - Additional informa
Fair Value - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value determination of loans held for sale description | The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 5 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3). | ||||
Loans held for sale, fair value disclosure | $ 128,079 | $ 128,079 | $ 115,251 | ||
Available for sale assets at fair value | 0 | $ 0 | 0 | $ 0 | |
Residential Mortgage Loans [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Loans held for sale, fair value disclosure | 16,600 | 16,600 | 23,600 | ||
Loans held for sale, contractual balance | 17,400 | 17,400 | 25,300 | ||
Gains (losses) on sale of loans held for sale for the change in fair value | 21,000 | 157,000 | 389,000 | (1,300) | |
Permanent Construction Loans [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Loans held for sale, fair value disclosure | 111,500 | 111,500 | 91,700 | ||
Loans held for sale, contractual balance | 117,900 | 117,900 | $ 103,100 | ||
Gains (losses) on sale of loans held for sale for the change in fair value | $ (990,000,000) | $ 6,300 | $ 5,000 | $ 19,800 | |
Minimum [Member] | Real Estate held for sale [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value input discount rate | 0% | ||||
Maximum [Member] | Real Estate held for sale [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value input discount rate | 30% |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | $ 961,123 | $ 1,040,081 |
Equity securities | ||
Equity securities, carried at fair value | 6,458 | 7,832 |
Loans held for sale | ||
Loans held for sale, carried at fair value | 128,079 | 115,251 |
Collateralized mortgage obligations [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 238,993 | 249,805 |
Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 238,993 | 249,805 |
Obligations of U.S. government corporations and agencies [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 96,176 | 95,909 |
Obligations of U.S. government corporations and agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 0 | |
Obligations of U.S. government corporations and agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 96,176 | 95,909 |
Mortgage-Backed Securities [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 161,199 | 167,589 |
Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 161,199 | 167,589 |
Asset-backed Securities [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 151,087 | 192,504 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 151,087 | 192,504 |
Corporate bonds [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 60,540 | 64,482 |
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 60,540 | 64,482 |
Obligations of state and political subdivisions [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 204,818 | 221,594 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 204,818 | 221,594 |
US Treasuries [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 48,310 | 48,198 |
US Treasuries [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 48,310 | 48,198 |
Equity Securities [Member] | ||
Equity securities | ||
Equity securities, carried at fair value | 6,458 | 7,832 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | ||
Equity securities, carried at fair value | 6,458 | 7,832 |
Loans Held for Sale, at Fair Value [Member] | ||
Loans held for sale | ||
Loans held for sale, carried at fair value | 128,079 | 115,251 |
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Loans held for sale | ||
Loans held for sale, carried at fair value | 16,617 | 23,589 |
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans held for sale | ||
Loans held for sale, carried at fair value | 111,462 | 91,662 |
Interest Rate Swap Assets [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative instruments assets at fair value | 3,179 | 4,494 |
Interest Rate Swap Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative instruments assets at fair value | 3,179 | 4,494 |
Interest Rate Swap Liability [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative Instruments liabilities at fair value | 3,179 | 4,494 |
Interest Rate Swap Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative Instruments liabilities at fair value | 3,179 | 4,494 |
Cash Flow Hedge Derivative Liability [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative Instruments liabilities at fair value | 38,796 | 40,032 |
Cash Flow Hedge Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative Instruments liabilities at fair value | 38,796 | 40,032 |
Cash Flow And Fair Value Hedge Derivative Assets [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative instruments assets at fair value | 4,524 | |
Cash Flow And Fair Value Hedge Derivative Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments, Fair Value | ||
Derivative instruments assets at fair value | 4,524 | |
Mortgage banking derivatives [Member] | ||
Derivative Instruments, Fair Value | ||
Mortgage banking derivatives | 3,426 | 1,349 |
Mortgage banking derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments, Fair Value | ||
Mortgage banking derivatives | $ 3,426 | $ 1,349 |
Fair Value - Summary of Reconci
Fair Value - Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Construction Loans Held for Sale [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance of recurring Level 3 assets at beginning of period | $ 97,280 | $ 116,484 | $ 91,662 | $ 134,167 |
Total gains (losses) for the period, Included in change in fair value of loans held for sale | (990) | (6,331) | (4,981) | (19,790) |
Originations | 24,321 | 37,264 | 47,502 | 73,607 |
Sales | (9,149) | (30,402) | (32,683) | (70,969) |
Balance of recurring Level 3 assets at end of period | $ 111,462 | $ 117,015 | $ 111,462 | $ 117,015 |
Fair Value - Schedule of Level
Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 128,079 | $ 115,251 |
Range of Input 0.00% - 0.14% [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 111,462 | |
Fair Value Measurements Valuation Processes Description 1 | Adjusted secondary market pricing | |
Unobservable Inputs, Fair Value | Adjustments | |
Fair Value, Range of Input, Minimum | 0% | |
Fair Value, Range of Input, Maximum | 0.26% | |
Range of Input 0.00% - 1.04% [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 91,662 | |
Fair Value Measurements Valuation Processes Description 1 | Adjusted secondary market pricing | |
Unobservable Inputs, Fair Value | Adjustments | |
Fair Value, Range of Input, Minimum | 0% | |
Fair Value, Range of Input, Maximum | 1.04% |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | $ 1,407 | $ 5,126 |
Commercial Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total individually analyzed loans | 5,173 | 3,512 |
Commercial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total individually analyzed loans | 1,251 | 5,492 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 1,407 | 5,126 |
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total individually analyzed loans | 5,173 | 3,512 |
Fair Value, Inputs, Level 3 [Member] | Commercial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total individually analyzed loans | $ 1,251 | $ 5,492 |
Fair Value - Schedule of Leve_2
Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Individually analyzed Loans- Applies to loan classes with an appraisal valuation | $ 6,424 | $ 5,146 |
Appraisals Which Utilize Sales Comparison, Net Income and Cost Approach [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Measurements Valuation Processes Description 1 | Appraisals which utilize sales comparison, net income and cost approach | Appraisals which utilize sales comparison, net income and cost approach |
Unobservable Inputs, Fair Value | Discounts for collection issues and changes in market conditions | Discounts for collection issues and changes in market conditions |
Fair Value, Range of Input, Minimum | 10% | 10% |
Fair Value, Range of Input, Maximum | 50% | 50% |
Fair Value Measurement Weighted Average Range | 13.73% | 28.29% |
Fair Value - Balance Sheet Grou
Fair Value - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets, Carrying Value: | ||
Cash and cash equivalents, Carrying Value | $ 121,727 | $ 128,160 |
Accrued interest receivable | 30,056 | 28,709 |
Federal Home Loan Bank Stock, Carrying Value | 39,887 | 29,185 |
Loans receivable, net, Carrying Value | 6,632,647 | 6,387,804 |
Financial Liabilities, Carrying Value: | ||
Deposits, Carrying Value | 6,994,432 | 6,906,719 |
Advances from Federal Home Loan Bank | 455,000 | 428,000 |
Subordinated debentures, Carrying Value | 85,166 | 85,103 |
Financial Assets, Fair Value: | ||
Cash and cash equivalents, Fair Value | 121,727 | 128,160 |
Securities available-for-sale, carried at fair value | 961,123 | 1,040,081 |
Accrued interest receivable | 30,056 | 28,709 |
Equity securities, Fair Value | 6,458 | 7,832 |
Loans receivable, net, Fair Value | 6,254,545 | 6,129,814 |
Loans held for sale, fair value disclosure | 128,079 | 115,251 |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 6,996,180 | 6,881,110 |
Advances from Federal Home Loan | 455,038 | 427,999 |
Subordinated debentures, Fair Value | 72,675 | 76,989 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets, Fair Value: | ||
Cash and cash equivalents, Fair Value | 121,727 | 128,160 |
Accrued interest receivable | 30,056 | 28,709 |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 5,359,067 | 5,852,952 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets, Fair Value: | ||
Accrued interest receivable | 0 | |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 1,637,113 | 1,028,158 |
Advances from Federal Home Loan | 455,038 | 427,999 |
Subordinated debentures, Fair Value | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets, Fair Value: | ||
Accrued interest receivable | 0 | |
Loans receivable, net, Fair Value | 6,254,545 | 6,129,814 |
Financial Liabilities, Fair Value: | ||
Advances from Federal Home Loan | 0 | |
Subordinated debentures, Fair Value | $ 72,675 | $ 76,989 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 29,661 | 29,661 | 29,661 | ||||
Stock Option Period, Description | All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date. | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 month | ||||||
Allocated Share-based Compensation Expense | $ 482,000 | $ 245,000 | $ 928,000 | $ 506,000 | |||
Compensation Expense, Maximum | 6,100,000 | 6,100,000 | |||||
Estimated Compensation Expense, Excepted | 4,100,000 | 4,100,000 | |||||
Unrecognized Compensation Expense | 1,600,000 | 1,600,000 | |||||
Reduction of expense | $ 201,000 | $ 88,000 | 539,000 | $ 411,000 | |||
Directors [Member] | |||||||
Adjustments To Additional Paid In Capital Stock Issued Issuance Costs | $ 39,000 | ||||||
Stock Issued During Period Shares Employee Stock Purchase Plans | 1,985 | ||||||
Executive Long-Term Equity Incentive Plan [Member] | |||||||
Stock Option Period, Description | The value of PSU awards issued in 2021, 2022 and 2023 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these PSUs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement of the participant. | ||||||
Share-based Compensation, Performance Period | 3 years | ||||||
Executive Long-Term Equity Incentive Plan [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 20% | 20% | |||||
Executive Long-Term Equity Incentive Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 50% | 50% | |||||
Equity Plan 2018 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 900,000 | 900,000 | |||||
Long Term Equity Incentive Plan2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,200,000 | 1,200,000 | |||||
Performance Stock Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 66,482 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 217,562 | 217,562 | 229,813 | ||||
Performance Stock Units (PSUs) [Member] | Executive Long-Term Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 66,482 | ||||||
Restricted Stock Awards (RSAs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 87,071 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 17,832 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 161,889 | 161,889 | 99,412 | ||||
Restricted Stock Awards (RSAs) [Member] | Executive Long-Term Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 21,169 | ||||||
Restricted Stock Awards (RSAs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 25,044 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 19,830 | 19,830 | 31,796 | ||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 19,612 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 5% | 5% | |||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10% | 10% | |||||
Short Term Incentive Plan [Member] | |||||||
Allocated Share-based Compensation Expense | $ 1,200,000 | $ 2,100,000 |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Restricted Stock Units and Stock Grants (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Performance Stock Units [Member] | |
Shares, Unvested at January 1, 2023 | shares | 229,813 |
Shares, Granted | shares | 66,482 |
Shares, Vested | shares | (55,435) |
Shares, Forfeited | shares | (23,298) |
Shares, Unvested at June 30, 2023 | shares | 217,562 |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2023 | $ / shares | $ 29.12 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 24.78 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 26.48 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 26.48 |
Weighted-Average Grant Date Fair Value, Unvested at June 30, 2023 | $ / shares | $ 28.75 |
Restricted Stock Units (RSUs) [Member] | |
Shares, Unvested at January 1, 2023 | shares | 31,796 |
Shares, Vested | shares | (10,799) |
Shares, Forfeited | shares | (1,167) |
Shares, Unvested at June 30, 2023 | shares | 19,830 |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2023 | $ / shares | $ 28.44 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 26.6 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 33.26 |
Weighted-Average Grant Date Fair Value, Unvested at June 30, 2023 | $ / shares | $ 29.16 |
Restricted Stock Awards (RSAs) [Member] | |
Shares, Unvested at January 1, 2023 | shares | 99,412 |
Shares, Granted | shares | 87,071 |
Shares, Vested | shares | (21,799) |
Shares, Forfeited | shares | (2,795) |
Shares, Unvested at June 30, 2023 | shares | 161,889 |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2023 | $ / shares | $ 29.14 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 23.09 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 29.72 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 24 |
Weighted-Average Grant Date Fair Value, Unvested at June 30, 2023 | $ / shares | $ 25.9 |
Stock Compensation Plans - Sc_2
Stock Compensation Plans - Schedule of Stock Option Activity Under the Plans (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options outstanding, January 1, 2023 | shares | 29,661 |
Option Outstanding, Forfeited or cancelled | shares | 0 |
Option Outstanding, Exercised | shares | 0 |
Option Outstanding, Granted | shares | 0 |
Options outstanding, June 30, 2023 | shares | 29,661 |
Exercisable at June 30, 2023 | shares | 29,661 |
Weighted Average Exercise Price, Options outstanding, January 1, 2023 | $ / shares | $ 22.54 |
Weighted Average Exercise Price, Forfeited or cancelled | $ / shares | 0 |
Weighted Average Exercise Price, Exercised | $ / shares | 0 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Options outstanding, June 30, 2023 | $ / shares | 22.54 |
Weighted Average Exercise Price, Exercisable at June 30, 2023 | $ / shares | $ 22.54 |
Weighted Average Remaining Contractual Term (In years), outstanding, June 30, 2023 | 3 years 7 months 2 days |
Weighted Average Remaining Contractual Terms (In years), Exercisable at June 30, 2023 | 3 years 7 months 2 days |
Aggregate Intrinsic Value, outstanding, June 30, 2023 | $ | $ 9 |
Aggregate Intrinsic Value, Exercisable at June 30, 2023 | $ | $ 9 |
Dividends on Common Stock (Deta
Dividends on Common Stock (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends, Common Stock [Abstract] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.31 | $ 0.31 | $ 0.3 | $ 0.3 | $ 0.62 | $ 0.6 |
Common Stock, Dividends, Per Share, Declared | $ 0.31 | $ 0.3 | $ 0.62 | $ 0.6 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic Earnings Per Share: | ||||||
Net income available to common shareholders | $ 48,391 | $ 18,149 | $ 22,360 | $ 26,357 | $ 66,540 | $ 48,717 |
Less: income allocated to participating securities | 19 | 17 | 104 | 54 | ||
Net income allocated to common shareholders | $ 48,372 | $ 22,343 | $ 66,436 | $ 48,663 | ||
Weighted average common shares outstanding including participating securities | 35,722 | 35,608 | 35,686 | 35,816 | ||
Less: Participating securities | (28) | 27 | 15 | 40 | ||
Average common shares | 35,750 | 35,581 | 35,671 | 35,776 | ||
Basic earnings per common share | $ 1.35 | $ 0.63 | $ 1.86 | $ 1.36 | ||
Diluted Earnings Per Share: | ||||||
Net income allocated to common shareholders | $ 48,372 | $ 22,343 | $ 66,436 | $ 48,663 | ||
Weighted average common shares outstanding for basic earnings per common share | 35,750 | 35,581 | 35,671 | 35,776 | ||
Add: Dilutive effects of stock options and restricted stock units | 50 | 101 | 79 | 104 | ||
Average shares and dilutive potential common shares | 35,800 | 35,682 | 35,750 | 35,880 | ||
Diluted earnings per common share | $ 1.35 | $ 0.63 | $ 1.86 | $ 1.36 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share, Basic [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 932 | 18,462 | 750 | 17,261 |
Investment Securities - Summary
Investment Securities - Summary of Available-for-Sale Securities - (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | $ 1,138,087 | $ 1,220,127 |
Available-for-Sale Securities, Gross Unrealized Gains | 323 | 609 |
Available-for-Sale Securities, Gross Unrealized Loss | (177,287) | (180,655) |
Available-for-Sale Securities, Fair Value | 961,123 | 1,040,081 |
Obligations of U.S. government corporations and agencies [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 116,781 | 117,150 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-Sale Securities, Gross Unrealized Loss | (20,605) | (21,241) |
Available-for-Sale Securities, Fair Value | 96,176 | 95,909 |
Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 193,147 | 200,548 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-Sale Securities, Gross Unrealized Loss | (31,948) | (32,959) |
Available-for-Sale Securities, Fair Value | 161,199 | 167,589 |
Collateralized mortgage obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 292,120 | 299,731 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-Sale Securities, Gross Unrealized Loss | (53,127) | (49,926) |
Available-for-Sale Securities, Fair Value | 238,993 | 249,805 |
Asset-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 157,152 | 200,312 |
Available-for-Sale Securities, Gross Unrealized Gains | 310 | 517 |
Available-for-Sale Securities, Gross Unrealized Loss | (6,375) | (8,325) |
Available-for-Sale Securities, Fair Value | 151,087 | 192,504 |
Corporate bonds [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 71,312 | 71,543 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-Sale Securities, Gross Unrealized Loss | (10,772) | (7,061) |
Available-for-Sale Securities, Fair Value | 60,540 | 64,482 |
Obligations of state and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 251,715 | 274,856 |
Available-for-Sale Securities, Gross Unrealized Gains | 13 | 92 |
Available-for-Sale Securities, Gross Unrealized Loss | (46,910) | (53,354) |
Available-for-Sale Securities, Fair Value | 204,818 | 221,594 |
US Treasuries [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 55,860 | 55,987 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-Sale Securities, Gross Unrealized Loss | (7,550) | (7,789) |
Available-for-Sale Securities, Fair Value | $ 48,310 | $ 48,198 |
Investment Securities - Schedul
Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Abstract] | ||
Available-for-sale, Due in one year or less, Amortized Cost | $ 363 | |
Available-for-sale, Due after one year through five years, Amortized Cost | 42,504 | |
Available-for-sale, Due after five years through ten years, Amortized Cost | 229,349 | |
Available-for-sale, Due after ten years, Amortized Cost | 223,452 | |
Available-for-sale, MBS/CMO/ABS, Amortized Cost | 642,419 | |
Available-for-Sale Securities, Amortized Cost | 1,138,087 | $ 1,220,127 |
Available-for-sale, Due in one year or less, Fair Value | 364 | |
Available-for-sale, Due after one year through five years, Fair Value | 38,777 | |
Available-for-sale, Due after five years through ten years, Fair Value | 194,741 | |
Available-for-sale, Due after ten years, Fair Value | 175,962 | |
Available-for-sale,MBS/CMO/ABS, Fair Value | 551,279 | |
Available-for-sale, Fair Value | $ 961,123 | $ 1,040,081 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | |||||
Security Owned and Pledged as Collateral Carrying Value | $ 669,100,000 | $ 669,100,000 | $ 759,800,000 | ||
Realized available-for-sale securities gains (losses) | (7,000) | $ 0 | 27,000 | $ 0 | |
Preferred and common stock held as investment securities | 6,458,000 | 6,458,000 | 7,832,000 | ||
Realized gain (loss) on equity securities | 71,000 | $ (1,200,000) | $ (1,400,000) | $ (1,800,000) | |
Minimum [Member] | |||||
Marketable Securities [Line Items] | |||||
Loss Rate Percent | 3% | ||||
Preferred and Common Stock [Member] | |||||
Marketable Securities [Line Items] | |||||
Preferred and common stock held as investment securities | $ 6,500,000 | $ 6,500,000 | $ 7,800,000 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Total temporarily impaired securities, Duration Unrealized Loss Position, Less Than Twelve Months, Fair Value | $ 30,859 | $ 387,127 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | (1,512) | (50,612) |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Fair Value | 897,346 | 572,643 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Gross Unrealized Loss | (175,775) | (130,043) |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Fair Value | 928,205 | 959,770 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Unrealized Loss | (177,287) | (180,655) |
Obligations of U.S. government corporations and agencies [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 64,394 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | 0 | (11,158) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 96,176 | 31,513 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (20,605) | (10,083) |
Available-for-sale securities, Total, Fair Value | 96,176 | 95,907 |
Available-for-sale securities, Total, Unrealized Loss | (20,605) | (21,241) |
Mortgage-Backed Securities [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 3,472 | 40,908 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | (164) | (4,184) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 157,727 | 126,681 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (31,784) | (28,775) |
Available-for-sale securities, Total, Fair Value | 161,199 | 167,589 |
Available-for-sale securities, Total, Unrealized Loss | (31,948) | (32,959) |
Collateralized mortgage obligations [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 2,339 | 60,676 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | (7) | (11,985) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 236,654 | 159,129 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (53,120) | (37,941) |
Available-for-sale securities, Total, Fair Value | 238,993 | 219,805 |
Available-for-sale securities, Total, Unrealized Loss | (53,127) | (49,926) |
Asset-backed securities [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 45,534 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | 0 | (1,499) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 122,421 | 113,580 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (6,375) | (6,826) |
Available-for-sale securities, Total, Fair Value | 122,421 | 159,114 |
Available-for-sale securities, Total, Unrealized Loss | (6,375) | (8,325) |
Corporate bonds [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 7,060 | 49,114 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | (940) | (4,960) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 53,480 | 15,368 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (9,832) | (2,101) |
Available-for-sale securities, Total, Fair Value | 60,540 | 64,482 |
Available-for-sale securities, Total, Unrealized Loss | (10,772) | (7,061) |
Obligations of state and political subdivisions [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 17,988 | 106,610 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | (401) | (13,378) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 182,578 | 98,063 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (46,509) | (39,976) |
Available-for-sale securities, Total, Fair Value | 200,566 | 204,673 |
Available-for-sale securities, Total, Unrealized Loss | (46,910) | (53,354) |
US Treasuries [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 19,891 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | (3,448) | |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Months or Longer, Fair Value | 48,310 | 28,309 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | (7,550) | (4,341) |
Available-for-sale securities, Total, Fair Value | 48,310 | 48,200 |
Available-for-sale securities, Total, Unrealized Loss | $ (7,550) | $ (7,789) |
Loans - Schedule of Loans Recei
Loans - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Real Estate: | ||||||
Real Estate | $ 5,599,731 | $ 5,576,140 | ||||
Other Loans: | ||||||
Loans before deferred loan origination fees and costs | 7,152,285 | 7,122,338 | ||||
Deduct: | ||||||
Undisbursed construction loan funds | (455,653) | (672,775) | ||||
Net deferred loan origination fees and costs | 11,936 | 11,057 | ||||
Allowance for credit losses | (75,921) | $ (74,273) | (72,816) | $ (67,074) | $ (67,195) | $ (66,468) |
Total loans | 6,632,647 | 6,387,804 | ||||
Other Loan [Member] | ||||||
Other Loans: | ||||||
Total loans | 1,552,554 | 1,546,198 | ||||
Residential Real Estate [Member] | ||||||
Real Estate: | ||||||
Real Estate | 1,711,632 | 1,535,574 | ||||
Commercial Real Estate [Member] | ||||||
Real Estate: | ||||||
Real Estate | 2,848,410 | 2,762,311 | ||||
Construction Loans [Member] | ||||||
Real Estate: | ||||||
Real Estate | 1,039,689 | 1,278,255 | ||||
Commercial [Member] | ||||||
Other Loans: | ||||||
Total loans | 1,069,372 | 1,055,180 | ||||
Deduct: | ||||||
Allowance for credit losses | (13,101) | $ (12,525) | (11,769) | $ (9,762) | $ (13,821) | $ (13,410) |
Home Equity and Improvement [Member] | ||||||
Other Loans: | ||||||
Total loans | 272,792 | 277,613 | ||||
Consumer Finance [Member] | ||||||
Other Loans: | ||||||
Total loans | $ 210,390 | $ 213,405 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash paid for paycheck protection program | $ 636,900,000 | ||||
Amortized cost basis in loan modification | $ 4,540,000 | 4,945,000 | |||
Modified loans on non-accrual status or partial charge off | 4,400,000 | 4,400,000 | |||
Anticipated credit losses | 1,410,000 | $ 5,151,000 | $ 5,354,000 | $ 5,777,000 | |
Allowance for credit losses current policy description | Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows less than 1.2 times discounted collateral coverage based on a current assessment of the value of the collateral. | ||||
Loans and Leases Receivable, Loans in Process | 455,653,000 | $ 455,653,000 | $ 672,775,000 | ||
Scenario Plan [Member] | |||||
Anticipated credit losses | 5,700,000 | ||||
Consumer Portfolio Segment [Member] | |||||
Mortgage Loans in Process of Foreclosure, Amount | 5,300,000 | 5,300,000 | 4,300,000 | ||
Other Loans [Member] | Commercial [Member] | |||||
PPP loans | 577,000 | 577,000 | $ 1,100,000 | ||
Unfunded Loan Commitments [Member] | |||||
Unfunded loan commitments | $ 1,500,000,000 | $ 1,500,000,000 |
Loans - Summary of Amortized Co
Loans - Summary of Amortized Cost Basis of Collateral-dependent Loans by Class of Loans and Collateral Type (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 6,632,647 | $ 6,387,804 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 15,009 | 12,920 |
Equipment and Machinery [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,900 | 523 |
Inventory and Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,329 | 6,574 |
Vehicles [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 881 | |
Collateral Pledged [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 24,119 | 20,017 |
Real Estate Loans [Member] | Real Estate [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 51 | |
Real Estate Loans [Member] | Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,708 | |
Real Estate Loans [Member] | Real Estate [Member] | Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,934 | |
Real Estate Loans [Member] | Equipment and Machinery [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | |
Real Estate Loans [Member] | Inventory and Receivables [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,716 | |
Real Estate Loans [Member] | Inventory and Receivables [Member] | Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,190 | |
Real Estate Loans [Member] | Collateral Pledged [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 51 | |
Real Estate Loans [Member] | Collateral Pledged [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 13,424 | |
Real Estate Loans [Member] | Collateral Pledged [Member] | Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14,124 | |
Other Loans [Member] | Real Estate [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,075 | 2,161 |
Other Loans [Member] | Equipment and Machinery [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,900 | 523 |
Other Loans [Member] | Inventory and Receivables [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,139 | 3,858 |
Other Loans [Member] | Vehicles [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 881 | |
Other Loans [Member] | Collateral Pledged [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 9,995 | $ 6,542 |
Loans - Schedule of Non-Perform
Loans - Schedule of Non-Performing Loans and Real Estate Owned (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable, Net Amount [Abstract] | ||
Non-accrual loans with reserve | $ 24,726 | $ 20,369 |
Non-accrual loans without reserve | 12,265 | 13,453 |
Total non-performing loans | 36,991 | 33,822 |
Real estate and other assets held for sale | 561 | 619 |
Total non-performing assets | $ 37,552 | $ 34,441 |
Loans - Schedule of Aging of th
Loans - Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 43,976 | $ 47,284 |
Total Non-Accrual | 36,991 | 33,822 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,664,592 | 6,413,336 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 9,528 | 9,025 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 9,876 | 9,876 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 24,572 | 28,383 |
Real Estate Loans [Member] | Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 14,450 | 12,832 |
Total Non-Accrual | 9,334 | 7,724 |
Real Estate Loans [Member] | Residential Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,691,587 | 1,516,135 |
Real Estate Loans [Member] | Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 109 | 279 |
Real Estate Loans [Member] | Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,455 | 6,350 |
Real Estate Loans [Member] | Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 7,886 | 6,203 |
Real Estate Loans [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,805 | 12,682 |
Total Non-Accrual | 14,018 | 13,396 |
Real Estate Loans [Member] | Commercial Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,844,252 | 2,751,933 |
Real Estate Loans [Member] | Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 194 | 327 |
Real Estate Loans [Member] | Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 444 | 878 |
Real Estate Loans [Member] | Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,167 | 11,477 |
Real Estate Loans [Member] | Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 285 | 437 |
Total Non-Accrual | 0 | 0 |
Real Estate Loans [Member] | Construction Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 583,751 | 605,043 |
Real Estate Loans [Member] | Construction Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 298 |
Real Estate Loans [Member] | Construction Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 285 | 139 |
Real Estate Loans [Member] | Construction Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans [Member] | Commercial Loan Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 9,235 | 5,176 |
Total Non-Accrual | 6,686 | 4,862 |
Other Loans [Member] | Commercial Loan Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,054,469 | 1,044,898 |
Other Loans [Member] | Commercial Loan Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,234 | 413 |
Other Loans [Member] | Commercial Loan Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 57 | 128 |
Other Loans [Member] | Commercial Loan Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,944 | 4,635 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,980 | 6,021 |
Total Non-Accrual | 1,692 | 1,637 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 266,742 | 269,183 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,158 | 4,342 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 628 | 489 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,194 | 1,190 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,688 | 6,387 |
Total Non-Accrual | 2,373 | 2,401 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 206,855 | 209,062 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,537 | 2,763 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,198 | 1,397 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,953 | 2,227 |
PCD [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,533 | 3,749 |
Total Non-Accrual | 2,888 | 3,802 |
PCD [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 16,936 | 17,082 |
PCD [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 296 | 603 |
PCD [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 809 | 495 |
PCD [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 2,428 | $ 2,651 |
Loans - Schedule of Percentage
Loans - Schedule of Percentage of the Amortized Cost Basis of Loan Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis in loan modification | $ 4,540 | $ 4,945 |
Real Estate Loans [Member] | Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of total loans by category | 0.01% | 0.01% |
Amortized cost basis in loan modification | $ 109 | $ 109 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of total loans by category | 0.16% | 0.17% |
Amortized cost basis in loan modification | $ 4,431 | $ 4,798 |
Other Loans [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of total loans by category | 0% | |
Amortized cost basis in loan modification | $ 38 |
Loans - Schedule of Financial E
Loans - Schedule of Financial Effects of Loan Modifications (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Residential Real Estate [Member] | Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect term extension to loan maturity | 7 years |
Residential Real Estate [Member] | Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect term extension to loan maturity | 30 years |
Real Estate Loan [Member] | Extended Maturity [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect term for interest rate | 20 years |
Real Estate Loan [Member] | Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect term extension to loan maturity | 12 months |
Financial effect term for interest rate | 12 months |
Real Estate Loan [Member] | Commercial Real Estate [Member] | Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate reduction | 5% |
Real Estate Loan [Member] | Commercial Real Estate [Member] | Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate reduction | 10.65% |
Real Estate Loan [Member] | Residential Real Estate [Member] | Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate reduction | 5% |
Real Estate Loan [Member] | Residential Real Estate [Member] | Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate reduction | 11.08% |
Other Loans [Member] | Commercial Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect term extension to loan maturity | 84 months |
Other Loans [Member] | Commercial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financial effect baloon term out | 2 years |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | $ 6,708,568 | [1] | $ 6,460,620 | [2] |
Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 6,587,378 | [1] | 6,340,949 | [2] |
Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 60,730 | [1] | 75,873 | [2] |
Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 60,460 | [1] | 43,798 | [2] |
Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 60,460 | [1] | 43,798 | [2] |
Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,706,037 | 1,528,967 | ||
Residential [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,695,235 | 1,519,657 | ||
Residential [Member] | Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 484 | 935 | ||
Residential [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 10,318 | 8,375 | ||
Residential [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 10,318 | 8,375 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 2,851,057 | 2,764,615 | ||
Commercial Real Estate [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 2,801,710 | 2,698,292 | ||
Commercial Real Estate [Member] | Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 20,751 | 46,029 | ||
Commercial Real Estate [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 28,596 | 20,294 | ||
Commercial Real Estate [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 28,596 | 20,294 | ||
Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 584,036 | 605,480 | ||
Construction Loans [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 575,703 | 605,480 | ||
Construction Loans [Member] | Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 8,333 | 0 | ||
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,063,704 | 1,050,074 | ||
Commercial [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,021,363 | 1,016,925 | ||
Commercial [Member] | Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 27,376 | 26,319 | ||
Commercial [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 14,965 | 6,830 | ||
Commercial [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 14,965 | 6,830 | ||
Home Equity and Improvement [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 270,722 | 275,204 | ||
Home Equity and Improvement [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 269,038 | 273,613 | ||
Home Equity and Improvement [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,684 | 1,591 | ||
Home Equity and Improvement [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 1,684 | 1,591 | ||
Consumer Finance [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 212,543 | 215,449 | ||
Consumer Finance [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 210,348 | 213,078 | ||
Consumer Finance [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 2,195 | 2,371 | ||
Consumer Finance [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 2,195 | 2,371 | ||
PCD [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 20,469 | 20,831 | ||
PCD [Member] | Unclassified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 13,981 | 13,904 | ||
PCD [Member] | Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 3,786 | 2,590 | ||
PCD [Member] | Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | 2,702 | 4,337 | ||
PCD [Member] | Total Classified [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Net | $ 2,702 | $ 4,337 | ||
[1] (1) Total loans are net of undisbursed funds and deferred fees and costs. (1) Total loans are net undisbursed loan funds and deferred fees and costs |
Loans - Summary of Amortized _2
Loans - Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | ||
Financing Receivable Recorded Investment [Line Items] | ||||
Total | $ 6,708,568 | [1] | $ 6,460,620 | [2] |
Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 72,605 | 265,164 | ||
Year 1 | 438,159 | 476,640 | ||
Year 2 | 448,451 | 337,776 | ||
Year 3 | 324,910 | 94,500 | ||
Year 4 | 91,362 | 52,307 | ||
Prior | 328,421 | 299,561 | ||
Revolving Loans | 2,129 | 3,019 | ||
Total | 1,706,037 | 1,528,967 | ||
Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 125,525 | 582,660 | ||
Year 1 | 602,231 | 512,104 | ||
Year 2 | 533,836 | 518,317 | ||
Year 3 | 513,328 | 329,415 | ||
Year 4 | 319,667 | 224,090 | ||
Prior | 738,728 | 581,637 | ||
Revolving Loans | 17,742 | 16,392 | ||
Total | 2,851,057 | 2,764,615 | ||
Construction Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 46,056 | 348,570 | ||
Year 1 | 343,257 | 182,755 | ||
Year 2 | 142,495 | 53,161 | ||
Year 3 | 41,942 | 20,994 | ||
Year 4 | 10,286 | |||
Total | 584,036 | 605,480 | ||
Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 89,349 | 268,408 | ||
Year 1 | 261,178 | 212,876 | ||
Year 2 | 190,838 | 97,824 | ||
Year 3 | 76,245 | 51,424 | ||
Year 4 | 43,370 | 25,069 | ||
Prior | 40,914 | 28,084 | ||
Revolving Loans | 361,810 | 366,389 | ||
Total | 1,063,704 | 1,050,074 | ||
Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 10,650 | 30,053 | ||
Year 1 | 27,587 | 21,130 | ||
Year 2 | 19,971 | 5,387 | ||
Year 3 | 4,841 | 3,620 | ||
Year 4 | 3,283 | 1,881 | ||
Prior | 29,483 | 31,011 | ||
Revolving Loans | 174,907 | 182,122 | ||
Total | 270,722 | 275,204 | ||
Consumer Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 31,040 | 133,870 | ||
Year 1 | 114,913 | 33,592 | ||
Year 2 | 28,060 | 17,887 | ||
Year 3 | 14,636 | 13,997 | ||
Year 4 | 10,455 | 4,084 | ||
Prior | 3,606 | 2,563 | ||
Revolving Loans | 9,833 | 9,456 | ||
Total | 212,543 | 215,449 | ||
PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 3 | 133 | |||
Year 4 | 121 | 391 | ||
Prior | 16,375 | 17,106 | ||
Revolving Loans | 3,973 | 3,201 | ||
Total | 20,469 | 20,831 | ||
Current-period gross charge-offs | Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 2 | 217 | |||
Prior | 66 | |||
Total | 283 | |||
Current-period gross charge-offs | Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Prior | 20 | |||
Total | 20 | |||
Current-period gross charge-offs | Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Revolving Loans | 2 | |||
Total | 2 | |||
Current-period gross charge-offs | Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Prior | 22 | |||
Revolving Loans | 99 | |||
Total | 121 | |||
Current-period gross charge-offs | Consumer Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 1 | 85 | |||
Year 2 | 56 | |||
Year 3 | 63 | |||
Year 4 | 9 | |||
Prior | 8 | |||
Revolving Loans | 50 | |||
Total | 271 | |||
Current-period gross charge-offs | PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Prior | 46 | |||
Revolving Loans | 1 | |||
Total | 47 | |||
Unclassified [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Total | 6,587,378 | [1] | 6,340,949 | [2] |
Unclassified [Member] | Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 72,488 | |||
Year 1 | 436,861 | |||
Year 2 | 446,915 | |||
Year 3 | 323,345 | |||
Year 4 | 90,711 | |||
Prior | 322,786 | |||
Revolving Loans | 2,129 | |||
Total | 1,695,235 | |||
Unclassified [Member] | Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 125,474 | |||
Year 1 | 600,502 | |||
Year 2 | 529,545 | |||
Year 3 | 508,611 | |||
Year 4 | 314,839 | |||
Prior | 705,271 | |||
Revolving Loans | 17,468 | |||
Total | 2,801,710 | |||
Unclassified [Member] | Construction Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 46,056 | |||
Year 1 | 343,257 | |||
Year 2 | 142,495 | |||
Year 3 | 41,942 | |||
Year 4 | 1,953 | |||
Total | 575,703 | |||
Unclassified [Member] | Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 84,763 | |||
Year 1 | 259,149 | |||
Year 2 | 178,867 | |||
Year 3 | 71,140 | |||
Year 4 | 42,385 | |||
Prior | 34,794 | |||
Revolving Loans | 350,265 | |||
Total | 1,021,363 | |||
Unclassified [Member] | Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 10,650 | |||
Year 1 | 27,538 | |||
Year 2 | 19,957 | |||
Year 3 | 4,841 | |||
Year 4 | 3,255 | |||
Prior | 29,125 | |||
Revolving Loans | 173,672 | |||
Total | 269,038 | |||
Unclassified [Member] | Consumer Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 31,040 | |||
Year 1 | 113,854 | |||
Year 2 | 27,648 | |||
Year 3 | 14,231 | |||
Year 4 | 10,204 | |||
Prior | 3,538 | |||
Revolving Loans | 9,833 | |||
Total | 210,348 | |||
Unclassified [Member] | PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 4 | 121 | |||
Prior | 13,220 | |||
Revolving Loans | 640 | |||
Total | 13,981 | |||
Pass [Member] | Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 264,884 | |||
Year 1 | 474,992 | |||
Year 2 | 335,982 | |||
Year 3 | 93,548 | |||
Year 4 | 51,710 | |||
Prior | 296,089 | |||
Revolving Loans | 2,452 | |||
Total | 1,519,657 | |||
Pass [Member] | Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 582,384 | |||
Year 1 | 506,386 | |||
Year 2 | 517,790 | |||
Year 3 | 324,210 | |||
Year 4 | 194,240 | |||
Prior | 557,728 | |||
Revolving Loans | 15,554 | |||
Total | 2,698,292 | |||
Pass [Member] | Construction Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 348,570 | |||
Year 1 | 182,755 | |||
Year 2 | 53,161 | |||
Year 3 | 20,994 | |||
Total | 605,480 | |||
Pass [Member] | Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 266,501 | |||
Year 1 | 208,663 | |||
Year 2 | 90,014 | |||
Year 3 | 49,887 | |||
Year 4 | 23,719 | |||
Prior | 22,515 | |||
Revolving Loans | 355,626 | |||
Total | 1,016,925 | |||
Pass [Member] | Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 30,009 | |||
Year 1 | 21,116 | |||
Year 2 | 5,387 | |||
Year 3 | 3,592 | |||
Year 4 | 1,849 | |||
Prior | 30,509 | |||
Revolving Loans | 181,151 | |||
Total | 273,613 | |||
Pass [Member] | Consumer Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 133,194 | |||
Year 1 | 33,109 | |||
Year 2 | 17,219 | |||
Year 3 | 13,681 | |||
Year 4 | 4,022 | |||
Prior | 2,529 | |||
Revolving Loans | 9,324 | |||
Total | 213,078 | |||
Pass [Member] | PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 3 | 131 | |||
Year 4 | 369 | |||
Prior | 13,117 | |||
Revolving Loans | 287 | |||
Total | 13,904 | |||
Special Mention [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Total | 60,730 | [1] | 75,873 | [2] |
Special Mention [Member] | Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 2 | 180 | |||
Year 3 | 175 | 30 | ||
Year 4 | 80 | |||
Prior | 309 | 78 | ||
Revolving Loans | 567 | |||
Total | 484 | 935 | ||
Special Mention [Member] | Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 161 | |||
Year 1 | 1,459 | 3,614 | ||
Year 2 | 4,096 | 0 | ||
Year 3 | 2,012 | 593 | ||
Year 4 | 25,395 | |||
Prior | 13,042 | 15,561 | ||
Revolving Loans | 142 | 705 | ||
Total | 20,751 | 46,029 | ||
Special Mention [Member] | Construction Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 4 | 8,333 | |||
Total | 8,333 | |||
Special Mention [Member] | Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 4,586 | 1,891 | ||
Year 1 | 1,215 | 4,094 | ||
Year 2 | 7,891 | 3,913 | ||
Year 3 | 290 | 1,533 | ||
Year 4 | 511 | 1,160 | ||
Prior | 4,080 | 5,365 | ||
Revolving Loans | 8,803 | 8,363 | ||
Total | 27,376 | 26,319 | ||
Special Mention [Member] | PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 3 | 0 | |||
Prior | 795 | 292 | ||
Revolving Loans | 2,991 | 2,298 | ||
Total | 3,786 | 2,590 | ||
Substandard [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Total | 60,460 | [1] | 43,798 | [2] |
Substandard [Member] | Residential Real Estate [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 117 | 280 | ||
Year 1 | 1,298 | 1,648 | ||
Year 2 | 1,536 | 1,614 | ||
Year 3 | 1,390 | 922 | ||
Year 4 | 651 | 517 | ||
Prior | 5,326 | 3,394 | ||
Total | 10,318 | 8,375 | ||
Substandard [Member] | Commercial Portfolio Segment [Member] | Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 51 | 115 | ||
Year 1 | 270 | 2,104 | ||
Year 2 | 195 | 527 | ||
Year 3 | 2,705 | 4,612 | ||
Year 4 | 4,828 | 4,455 | ||
Prior | 20,415 | 8,348 | ||
Revolving Loans | 132 | 133 | ||
Total | 28,596 | 20,294 | ||
Substandard [Member] | Commercial [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 16 | |||
Year 1 | 814 | 119 | ||
Year 2 | 4,080 | 3,897 | ||
Year 3 | 4,815 | 4 | ||
Year 4 | 474 | 190 | ||
Prior | 2,040 | 204 | ||
Revolving Loans | 2,742 | 2,400 | ||
Total | 14,965 | 6,830 | ||
Substandard [Member] | Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 44 | |||
Year 1 | 49 | 14 | ||
Year 2 | 14 | |||
Year 3 | 28 | |||
Year 4 | 28 | 32 | ||
Prior | 358 | 502 | ||
Revolving Loans | 1,235 | 971 | ||
Total | 1,684 | 1,591 | ||
Substandard [Member] | Consumer Portfolio Segment [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Current year | 676 | |||
Year 1 | 1,059 | 483 | ||
Year 2 | 412 | 668 | ||
Year 3 | 405 | 316 | ||
Year 4 | 251 | 62 | ||
Prior | 68 | 34 | ||
Revolving Loans | 132 | |||
Total | 2,195 | 2,371 | ||
Substandard [Member] | PCD [Member] | Other Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Year 3 | 2 | |||
Year 4 | 22 | |||
Prior | 2,360 | 3,697 | ||
Revolving Loans | 342 | 616 | ||
Total | $ 2,702 | $ 4,337 | ||
[1] (1) Total loans are net of undisbursed funds and deferred fees and costs. (1) Total loans are net undisbursed loan funds and deferred fees and costs |
Loans - Summary of Credit Loss
Loans - Summary of Credit Loss Estimation (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Nonowner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Residential real estate |
Loan Pool | 1-4 Family nonowner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Owner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Residential real estate |
Loan Pool | 1-4 Family owner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Nonowner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Commercial real estate nonowner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Owner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Commercial real estate owner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Multi Family Residential Real Estate [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Multi Family |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Agriculture Land [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | real estate |
Loan Pool | Agriculture Land |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Loans Other [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Other commercial real estate |
Methodology | DCF |
Loss Drivers | National unemployment |
Construction Portfolio Segment [Member] | Real Estate [Member] | Construction Loans [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Construction secured by real estate |
Loan Pool | Construction Other |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Construction Portfolio Segment [Member] | Real Estate [Member] | Construction Residential [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Construction secured by real estate |
Loan Pool | Construction Residential |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Loans Other [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Other commercial |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Working Capital [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Commercial working capital |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Agriculture Production [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Agriculture production |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | Home Equity and Improvement [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Home equity and improvement |
Loan Pool | Home equity and improvement |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Consumer Portfolio Segment [Member] | Other Loans [Member] | Consumer Finance [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Consumer finance |
Loan Pool | Consumer direct |
Methodology | Remaining life |
Loss Drivers | Call report loss history |
Consumer Portfolio Segment [Member] | Other Loans [Member] | Consumer Indirect [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Consumer finance |
Loan Pool | Consumer indirect |
Methodology | DCF |
Loss Drivers | National unemployment |
Loans - Schedule of allowance f
Loans - Schedule of allowance for credit loss (ACL) activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | $ 74,273 | $ 67,195 | $ 72,816 | $ 66,468 |
Charge-Offs | (744) | (6,703) | (3,457) | (6,992) |
Recoveries | 982 | 1,431 | 1,208 | 1,821 |
Provisions | 1,410 | 5,151 | 5,354 | 5,777 |
Ending Allowance | 75,921 | 67,074 | 75,921 | 67,074 |
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 2,152 | 1,001 | 2,049 | 1,405 |
Charge-Offs | (291) | (138) | (740) | (241) |
Recoveries | 57 | 37 | 132 | 151 |
Provisions | 3 | 345 | 480 | (70) |
Ending Allowance | 1,921 | 1,245 | 1,921 | 1,245 |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 12,525 | 13,821 | 11,769 | 13,410 |
Charge-Offs | (8) | (5,303) | (519) | (5,313) |
Recoveries | 807 | 184 | 903 | 286 |
Provisions | (223) | 1,060 | 948 | 1,379 |
Ending Allowance | 13,101 | 9,762 | 13,101 | 9,762 |
Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 18,229 | 11,640 | 16,711 | 12,029 |
Charge-Offs | (304) | (861) | (309) | (1,001) |
Recoveries | 23 | 673 | 45 | 754 |
Provisions | 970 | 2,661 | 2,471 | 2,331 |
Ending Allowance | 18,918 | 14,113 | 18,918 | 14,113 |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 33,831 | 34,201 | 34,218 | 32,399 |
Charge-Offs | (20) | (137) | (1,689) | (144) |
Recoveries | 59 | 455 | 71 | 514 |
Provisions | 881 | 433 | 2,151 | 2,183 |
Ending Allowance | 34,751 | 34,952 | 34,751 | 34,952 |
Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 3,882 | 2,613 | 4,025 | 3,004 |
Charge-Offs | 0 | (16) | 0 | (16) |
Recoveries | 0 | 3 | 0 | 3 |
Provisions | (51) | 399 | (194) | 8 |
Ending Allowance | 3,831 | 2,999 | 3,831 | 2,999 |
Home Equity and Improvement [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 3,654 | 3,919 | 4,044 | 4,221 |
Charge-Offs | (121) | (248) | (200) | (277) |
Recoveries | 36 | 79 | 57 | 113 |
Provisions | (170) | 253 | (502) | (54) |
Ending Allowance | $ 3,399 | $ 4,003 | $ 3,399 | $ 4,003 |
Loans - Schedule of Outstanding
Loans - Schedule of Outstanding Balance and Related Allowance on Loans (Details) - Loan Purchase [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loan Balance | $ 20,469 | $ 20,831 |
ACL Balance | 817 | 852 |
Real Estate [Member] | ||
Loan Balance | 12,539 | 13,090 |
ACL Balance | 187 | 173 |
Real Estate [Member] | Residential Real Estate [Member] | ||
Loan Balance | 11,164 | 11,546 |
ACL Balance | 144 | 139 |
Real Estate [Member] | Commercial [Member] | ||
Loan Balance | 1,375 | 1,544 |
ACL Balance | 43 | 34 |
Other Loans [Member] | ||
Loan Balance | 7,930 | 7,741 |
ACL Balance | 630 | 679 |
Other Loans [Member] | Commercial Real Estate [Member] | ||
Loan Balance | 5,628 | 5,058 |
ACL Balance | 563 | 594 |
Other Loans [Member] | Home Equity and Improvement Portfolio Segment [Member] | ||
Loan Balance | 2,070 | 2,409 |
ACL Balance | 62 | 80 |
Other Loans [Member] | Consumer Portfolio Segment [Member] | ||
Loan Balance | 232 | 274 |
ACL Balance | $ 5 | $ 5 |
Mortgage Banking - Net revenues
Mortgage Banking - Net revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Mortgage Banking [Abstract] | ||||
Mortgage banking gain, net | $ 2,242 | $ 1,166 | $ 1,405 | $ 3,710 |
Mortgage loans servicing revenue (expense): | ||||
Mortgage loans servicing revenue | 1,845 | 1,862 | 3,733 | 3,741 |
Amortization of mortgage servicing rights | (1,277) | (1,375) | (2,496) | (2,778) |
Mortgage servicing rights valuation adjustments | 130 | 295 | 24 | 1,527 |
Mortgage loans servicing revenue (expense), Total | 698 | 782 | 1,261 | 2,490 |
Net revenue from sale and servicing of mortgage loans | $ 2,940 | $ 1,948 | $ 2,666 | $ 6,200 |
Mortgage Banking - Additional i
Mortgage Banking - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Mortgage Banking [Abstract] | |||||
Residential Mortgage Loans, Unpaid Balance | $ 2,940,000,000 | $ 2,940,000,000 | $ 2,960,000,000 | ||
Expenses (credit) relating to secondary market buy-back activity | $ 0 | $ 0 | $ 0 | $ 0 |
Mortgage Banking - Capitalized
Mortgage Banking - Capitalized Mortgage and Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Mortgage servicing assets: | ||||
Balance at beginning of period | $ 21,447 | $ 22,189 | $ 21,858 | $ 22,244 |
Loans sold, servicing retained | 653 | 1,059 | 1,461 | 2,407 |
Amortization | (1,277) | (1,375) | (2,496) | (2,778) |
Carrying value before valuation allowance at end of period | 20,823 | 21,873 | 20,823 | 21,873 |
Valuation allowance: | ||||
Balance at beginning of period | (793) | (1,474) | (687) | (2,707) |
Impairment recovery | 130 | 294 | 24 | 1,527 |
Balance at end of period | (663) | (1,180) | (663) | (1,180) |
Net carrying value of MSRs at end of period | 20,160 | 20,693 | 20,160 | 20,693 |
Fair value of MSRs at end of period | $ 25,044 | $ 26,927 | $ 25,044 | $ 26,927 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||||||
Option extensions | true | |||||
Operating lease, option to extend | five and ten year | |||||
Operating lease, weighted average remaining lease term | 13 years 6 months | 13 years 6 months | 13 years 3 months 14 days | |||
Operating lease, weighted average discount rate | 2.45% | 2.45% | 2.52% | |||
Operating Lease, cost | $ 577,000 | $ 540,000 | $ 1,300,000 | $ 1,100,000 | ||
Operating Lease, right-of-use asset | $ 11,100,000 | $ 11,100,000 | $ 14,900,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets | |||
Operating Lease, liability | $ 11,689,000 | $ 11,689,000 | $ 15,600,000 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | Other liabilities | |||
Minimum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Lessee, Operating Lease, renewal term | 5 years | 5 years | 5 years | |||
Maximum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Lessee, Operating Lease, renewal term | 10 years | 10 years |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Cash Flows Included in Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remainder of 2023 | $ 2,715 | |
2024 | 1,743 | |
2025 | 1,447 | |
2026 | 1,247 | |
2027 | 1,118 | |
Thereafter | 10,564 | |
Total undiscounted minimum lease payment | 18,834 | |
Present value adjustment | (7,145) | |
Total lease liabilities | $ 11,689 | $ 15,600 |
Deposits - Summary of Deposit B
Deposits - Summary of Deposit Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Non-interest-bearing checking accounts | $ 1,573,837 | $ 1,869,509 |
Interest-bearing checking and money market accounts | 3,036,528 | 3,185,440 |
Savings Deposits | 748,702 | 798,003 |
Retail certificates of deposit less than $250,000 | 753,867 | 645,318 |
Retail certificates of deposit greater than $250,000 | 468,261 | 264,741 |
Brokered deposits | 413,237 | 143,708 |
Total | $ 6,994,432 | $ 6,906,719 |
Borrowings - Schedule of Bank L
Borrowings - Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total | $ 455,000 | $ 428,000 |
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 36,083 | 36,083 |
Subordinated debentures | 49,083 | 49,020 |
First Defiance Statutory Trusts I [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 20,619 | 20,619 |
First Defiance Statutory Trusts II [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 15,464 | 15,464 |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
Overnight Advances | 330,000 | 233,000 |
Single maturity fixed rate advances | $ 125,000 | $ 195,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | ||
Dec. 15, 2023 | Jun. 30, 2023 | Sep. 30, 2020 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Advances from Federal Home Loan Bank | $ 455,000 | $ 428,000 | ||
Period for Interest Deferral on Trust Preferred Securities | 5 years | |||
Premier Statutory Trust II [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 15,500 | |||
Proceeds from Issuance of Trust Preferred Securities | $ 15,000 | |||
Coupon Rate on Preferred Securities, Period End | 6.37% | 6.27% | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description | The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time. | |||
Premier Statutory Trust II [Member] | SOFR [Member] | Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Preferred Securities Variable Interest Rate | SOFR rate plus 1.5% | |||
Premier Statutory Trust II [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Preferred Securities Variable Interest Rate | LIBOR rate plus 1.5% | |||
Premier Statutory Trust I [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 20,600 | |||
Proceeds from Issuance of Trust Preferred Securities | $ 20,000 | |||
Coupon Rate on Preferred Securities, Period End | 6.25% | 6.15% | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description | The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now. | |||
Premier Statutory Trust I [Member] | SOFR [Member] | Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.38% | |||
Preferred Securities Variable Interest Rate | SOFR rate plus 1.38% | |||
Premier Statutory Trust I [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.38% | |||
Preferred Securities Variable Interest Rate | LIBOR rate plus 1.38% | |||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 50,000 | |||
Subordinated notes, due date | Sep. 30, 2030 | |||
Subordinated notes, fixed Interest rate | 4% | |||
Subordinated notes, fixed interest rate, period | 5 years | |||
Basis spread on variable rate | 3.885% | |||
Proceeds from Issuance of Subordinated Long-term Debt | $ 48,700 | |||
Federal Home Loan Bank Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Advances from Federal Home Loan Bank | $ 455,000 | $ 428,000 | ||
Company's available borrowing capacity | 1,500,000 | 1,500,000 | ||
Federal Reserve Bank Discount Window [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 376,100 | 43,900 | ||
US Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 50,000 | $ 50,000 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingent Liabilities - Maximum obligation to extend credit (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to make loans | $ 653,935 | $ 957,533 |
Unused lines of credit | 1,040,552 | 1,044,875 |
Standby letters of credit | 18,288 | 18,632 |
Total | $ 1,712,775 | $ 2,021,040 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingent Liabilities - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loan Commitments Maturities Range Description | 60 days or less |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current: | ||||
Federal | $ 16,035 | $ 6,053 | $ 19,387 | $ 11,867 |
State and local | 137 | 192 | 273 | 355 |
Deferred | (2,260) | (799) | (1,645) | (606) |
Income Tax Expense (Benefit) | $ 13,912 | $ 5,446 | $ 18,015 | $ 11,616 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense at statutory rate (21%) | $ 13,084 | $ 5,840 | $ 17,757 | $ 12,670 |
Increases (decreases) in taxes from: | ||||
State income tax - net of federal tax benefit | 109 | 152 | 216 | 280 |
Tax exempt interest income, net of TEFRA | (123) | (188) | (263) | (374) |
Bank owned life insurance | (213) | (206) | (511) | (415) |
Captive insurance | (154) | (96) | (246) | (201) |
Other | 1,209 | (56) | 1,062 | (344) |
Income Tax Expense (Benefit) | $ 13,912 | $ 5,446 | $ 18,015 | $ 11,616 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Parenthetical) - (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivatives Fair Value [Line Items] | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 38,400,000 | $ 38,400,000 | $ 35,900,000 | ||
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ 310,000,000 | $ 310,000,000 | $ 254,000,000 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | Other Liabilities | ||
Interest Rate Swaps [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ 81,100,000 | $ 81,100,000 | $ 67,300,000 | ||
Fair value of derivative assets | 3,200,000 | 3,200,000 | 4,500,000 | ||
Fair value of derivative liabilities | 3,200,000 | 3,200,000 | 4,500,000 | ||
Noninterest income expense | 82,000 | $ 1,000 | 273,000 | $ 1,000 | |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount of interest rate derivative instruments designated as cash flow hedge | 250,000,000 | 250,000,000 | |||
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | Federal Home Loan Bank Borrowings [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount of interest rate derivative instruments designated as cash flow hedge | 125,000,000 | 125,000,000 | |||
Interest Rate Swaps [Member] | Fair Value Hedging [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount of interest rate derivative instruments designated as cash flow hedge | 375,000,000 | 375,000,000 | |||
Fixed Rate Mortgage Debt [Member] | Interest Rate Swaps [Member] | Fair Value Hedging [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount of interest rate derivative instruments designated as cash flow hedge | 125,000,000 | 125,000,000 | |||
Aggregate fair value of interest rate cash flow hedge | 1,300,000,000 | 1,300,000,000 | |||
Other Assets [Member] | Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Aggregate fair value of interest rate cash flow hedge | 1,300,000 | 1,300,000 | |||
Other Assets [Member] | Interest Rate Swaps [Member] | Fair Value Hedging [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Aggregate fair value of interest rate cash flow hedge | 3,200,000 | 3,200,000 | |||
Other Liabilities [Member] | Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Aggregate fair value of interest rate cash flow hedge | $ 38,800,000 | $ 38,800,000 | $ 40,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Carrying Values (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives not designated as hedging instruments | ||
Mortgage Banking Derivatives Assets, Carrying Value | $ 3,426 | $ 1,349 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Amount of Gains and Losses Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivatives not designated as hedging instruments | ||||
Mortgage Banking Derivatives - (Loss) Gain | $ 4,774 | $ (8,072) | $ 2,077 | $ (485) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swap Designated as Cash Flow Hedge and Fair Value Hedge (Details) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 250,000 | |
Designated as Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 250,000 | $ 250,000 |
Weighted average fixed pay rates | 1.437% | 1.437% |
Weighted average remaining maturity (in years) | 7 years 6 months | 8 years 1 month 6 days |
Fair value | $ (38,796) | $ (40,032) |
Designated as Cash Flow Hedge [Member] | LIBOR [Member] | ||
Derivative [Line Items] | ||
Weighted average variable SOFR receive rates | 5.218% | 4.392% |
Designated as Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 125,000 | |
Weighted average fixed pay rates | 4.16% | |
Weighted average remaining maturity (in years) | 2 years | |
Fair value | $ 1,328 | |
Designated as Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | SOFR [Member] | ||
Derivative [Line Items] | ||
Weighted average variable SOFR receive rates | 5.17% | |
Designated as Cash Flow Hedge [Member] | Fair Value Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 375,000 | |
Weighted average fixed pay rates | 4.113% | |
Weighted average remaining maturity (in years) | 2 years 9 months 18 days | |
Fair value | $ 3,196 | |
Designated as Cash Flow Hedge [Member] | Fair Value Hedges [Member] | SOFR [Member] | ||
Derivative [Line Items] | ||
Weighted average variable SOFR receive rates | 5.07% |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Reclassification adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Securities available for sale and transferred securities: Before Tax Amount | ||||||
Change in net unrealized gains/losses during the period | $ (15,290) | $ (53,212) | $ 3,109 | $ (127,405) | ||
Reclassification adjustment for net gains included in net income | 7 | 0 | (27) | 0 | ||
Total other comprehensive income/loss | (19,357) | (64,881) | 5,645 | (156,108) | ||
Cash flow hedge derivatives | ||||||
Change in net unrealized gain/loss during the period | (1,563) | (13,710) | 7,023 | (29,951) | ||
Reclassification adjustment for net gains included in net income, Before tax | (2,511) | 2,041 | (4,460) | 1,248 | ||
Change in net unrealized gain/loss during the period, Tax (expense) benefit | 652 | 2,879 | (1,151) | 6,290 | ||
Reclassification adjustment for net gains included in net income, Tax (expense) benefit | 483 | (429) | 892 | (262) | ||
Change in net unrealized gain/loss during the period, Net of tax | (911) | (10,831) | 5,872 | (23,661) | ||
Reclassification adjustment for net gains included in net income, Net of tax | (2,028) | 1,612 | (3,568) | (986) | ||
Securities available for sale and transferred securities: Tax (Expense) Benefit | ||||||
Change in net unrealized gain/loss during the period | 3,211 | 11,174 | (653) | 26,754 | ||
Reclassification adjustment for net gains included in net income | (1) | 0 | 6 | 0 | ||
Total other comprehensive gain (loss) | 4,345 | 13,624 | (906) | 32,782 | ||
Securities available for sale and transferred securities: | ||||||
Change in net unrealized gain/loss during the period | (12,079) | (42,038) | 2,456 | (100,651) | ||
Reclassification adjustment for net gains included in net income | 6 | 0 | (21) | 0 | ||
Total other comprehensive income (loss) | $ (15,012) | $ 19,751 | $ (51,257) | $ (72,069) | $ 4,739 | $ (123,326) |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Activity in AOCI, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Securities Available For Sale, Beginning balance | $ 142,236 | $ (4,023) | ||
Securities Available For Sale, Other comprehensive income (loss) before reclassifications | 2,456 | (100,651) | ||
Securities Available For Sale, Amounts reclassified from accumulated other comprehensive income/(loss) | (21) | 0 | ||
Securities Available For Sale, Net other comprehensive income/(loss) during period | 2,435 | (100,651) | ||
Securities Available For Sale, Ending balance | $ (139,801) | $ (104,674) | (139,801) | (104,674) |
Post-retirement Benefit, Beginning balance | 402 | (79) | ||
Post-retirement Benefit, Ending balance | 402 | 79 | 402 | 79 |
Cash Flow hedge Derivatives, Beginning balance | (31,626) | 674 | ||
Cash Flow Hedge Derivatives, Other comprehensive income (loss) before reclassifications | 5,872 | 23,661 | ||
Cash Flow Hedge Derivatives, Amounts reclassified from accumulated other comprehensive income | (2,028) | 1,612 | (3,568) | (986) |
Net of tax amount | 2,304 | (22,675) | ||
Cash Flow hedge Derivatives, Ending balance | (29,322) | (22,001) | (29,322) | (22,001) |
Accumulated Other Comprehensive Income (Loss), Beginning balance | (173,460) | (3,428) | ||
Accumulated Other Comprehensive Income (Loss), Other comprehensive income (loss) before reclassifications | 8,328 | (124,312) | ||
Accumulated Other Comprehensive Income (Loss), Amounts reclassified from accumulated other comprehensive income | (3,589) | 986 | ||
Accumulated Other Comprehensive Income (loss), Net other comprehensive income during period | 4,739 | (123,326) | ||
Accumulated Other Comprehensive Income (Loss), Ending balance | $ (168,721) | $ (126,754) | $ (168,721) | $ (126,754) |