(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
TITLE OF EACH CLASS | TRADING SYMBOL | NAME OF EXCHANGE | ||||||
TABLE OF CONTENTS | ||||||||
Part I | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (unaudited) | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | OTHER INFORMATION | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In Thousands, Except Share Data) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest bearing deposits in other banks | |||||||||||
Investment securities available for sale, at fair value | |||||||||||
Marketable equity securities | |||||||||||
Investment securities held to maturity, at amortized cost | |||||||||||
Investment in Federal Home Loan Bank stock | |||||||||||
Loans held for sale | |||||||||||
Loans | |||||||||||
Allowance for credit losses, loans | ( | ( | |||||||||
Net loans | |||||||||||
Purchased receivables, net | |||||||||||
Mortgage servicing rights, at fair value | |||||||||||
Other real estate owned, net | |||||||||||
Premises and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Demand | $ | $ | |||||||||
Interest-bearing demand | |||||||||||
Savings | |||||||||||
Money market | |||||||||||
Certificates of deposit less than $250,000 | |||||||||||
Certificates of deposit $250,000 and greater | |||||||||||
Total deposits | |||||||||||
Borrowings | |||||||||||
Junior subordinated debentures | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | |||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
(In Thousands, Except Per Share Data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||
Interest and fees on loans and loans held for sale | $ | $ | $ | $ | ||||||||||||||||
Interest on investment securities available for sale | ||||||||||||||||||||
Dividends on marketable equity securities | ||||||||||||||||||||
Interest on investment securities held to maturity | ||||||||||||||||||||
Dividends on Federal Home Loan Bank stock | ||||||||||||||||||||
Interest on deposits in other banks | ||||||||||||||||||||
Total Interest and Dividend Income | ||||||||||||||||||||
Interest Expense | ||||||||||||||||||||
Interest expense on deposits | ||||||||||||||||||||
Interest expense on borrowings | ||||||||||||||||||||
Interest expense on junior subordinated debentures | ||||||||||||||||||||
Total Interest Expense | ||||||||||||||||||||
Net Interest Income | ||||||||||||||||||||
Provision for credit losses | ||||||||||||||||||||
Net Interest Income After Provision for Credit Losses | ||||||||||||||||||||
Other Operating Income | ||||||||||||||||||||
Mortgage banking income | ||||||||||||||||||||
Purchased receivable income | ||||||||||||||||||||
Bankcard fees | ||||||||||||||||||||
Service charges on deposit accounts | ||||||||||||||||||||
Keyman life insurance proceeds | ||||||||||||||||||||
Unrealized loss on marketable equity securities | ( | ( | ( | ( | ||||||||||||||||
Other income | ||||||||||||||||||||
Total Other Operating Income | ||||||||||||||||||||
Other Operating Expense | ||||||||||||||||||||
Salaries and other personnel expense | ||||||||||||||||||||
Data processing expense | ||||||||||||||||||||
Occupancy expense | ||||||||||||||||||||
Professional and outside services | ||||||||||||||||||||
Marketing expense | ||||||||||||||||||||
Insurance expense | ||||||||||||||||||||
Intangible asset amortization expense | ||||||||||||||||||||
OREO expense, net rental income and gains on sale | ( | |||||||||||||||||||
Other operating expense | ||||||||||||||||||||
Total Other Operating Expense | ||||||||||||||||||||
Income Before Provision for Income Taxes | ||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||
Earnings Per Share, Basic | $ | $ | $ | $ | ||||||||||||||||
Earnings Per Share, Diluted | $ | $ | $ | $ | ||||||||||||||||
Weighted Average Shares Outstanding, Basic | ||||||||||||||||||||
Weighted Average Shares Outstanding, Diluted |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Securities available for sale: | ||||||||||||||
Unrealized holding gains (losses) arising during the period | ($ | ($ | $ | ($ | ||||||||||
Derivatives and hedging activities: | ||||||||||||||
Unrealized holding (losses) gains arising during the period | ( | |||||||||||||
Income tax benefit related to unrealized (gains) and losses | ( | |||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||
Comprehensive income (loss) | $ | ($ | $ | ($ | ||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net of Tax | Total | |||||||||||||||||||||||||||||||
Number of Shares | Par Value | ||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net | ( | — | — | ( | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ($ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net of Tax | Total | |||||||||||||||||||||||||||||||
Number of Shares | Par Value | ||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Cash dividend on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
(In Thousands) | 2023 | 2022 | |||||||||
Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: | |||||||||||
Depreciation and amortization of premises and equipment | |||||||||||
Amortization of software | |||||||||||
Intangible asset amortization | |||||||||||
Amortization of investment security premium, net of discount accretion | |||||||||||
Unrealized loss on marketable equity securities | |||||||||||
Stock-based compensation | |||||||||||
Deferred loan fees and amortization, net of costs | ( | ( | |||||||||
Provision for credit losses | |||||||||||
Additions to home mortgage servicing rights carried at fair value | ( | ( | |||||||||
Change in fair value of home mortgage servicing rights carried at fair value | ( | ||||||||||
Change in fair value of commercial servicing rights carried at fair value | |||||||||||
Gain on sale of loans | ( | ( | |||||||||
Proceeds from the sale of loans held for sale | |||||||||||
Origination of loans held for sale | ( | ( | |||||||||
Proceeds from keyman life insurance | ( | ||||||||||
Net changes in assets and liabilities: | |||||||||||
(Increase) in accrued interest receivable | ( | ( | |||||||||
Decrease in other assets | |||||||||||
(Decrease) in other liabilities | ( | ( | |||||||||
Net Cash (Used) Provided by Operating Activities | ( | ||||||||||
Investing Activities: | |||||||||||
Investment in securities: | |||||||||||
Purchases of investment securities available for sale | ( | ( | |||||||||
Purchases of marketable equity securities | ( | ( | |||||||||
Purchases of FHLB stock | ( | ( | |||||||||
Purchases of investment securities held to maturity | ( | ||||||||||
Proceeds from sales/calls/maturities of securities available for sale | |||||||||||
Proceeds from redemption of FHLB stock | |||||||||||
(Increase) in purchased receivables, net | ( | ( | |||||||||
(Increase) decrease in loans, net | ( | ||||||||||
Proceeds from keyman life insurance | |||||||||||
Purchases of software | ( | ( | |||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Net Cash (Used) by Investing Activities | ( | ( | |||||||||
Financing Activities: | |||||||||||
(Decrease) in deposits | ( | ( | |||||||||
Increase (decrease) in borrowings | ( | ||||||||||
Repurchase of common stock | ( | ( | |||||||||
Cash dividends paid | ( | ( | |||||||||
Net Cash Used by Financing Activities | ( | ( | |||||||||
Net Change in Cash and Cash Equivalents | ( | ( | |||||||||
Cash and Cash Equivalents at Beginning of Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
Supplemental Information: | |||||||||||
Income taxes paid | $ | $ | |||||||||
Interest paid | $ | $ | |||||||||
Transfer of loans to other real estate owned | $ | $ | |||||||||
Non-cash lease liability arising from obtaining right of use assets | $ | $ | |||||||||
Cash dividends declared but not paid | $ | $ | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Unrealized gain (loss) on marketable equity securities | ($ | ($ | ($ | ($ | ||||||||||||||||
Gain on sale of marketable equity securities, net | ||||||||||||||||||||
Total | ($ | ($ | ($ | ($ |
(In Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ||||||||||||||||||||||||||||
Total securities available for sale | $ | $ | ($ | $ | $ |
(In Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||
Corporate bonds | $ | $ | ($ | $ | |||||||||||||||||||
Allowance for credit losses | — | — | — | ||||||||||||||||||||
Total securities held to maturity, net of ACL | $ | $ | ($ | $ |
(In Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ||||||||||||||||||||||||||||
Total securities available for sale | $ | $ | ($ | $ | $ |
(In Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||
Corporate bonds | $ | $ | ($ | $ | |||||||||||||||||||
Allowance for credit losses | — | — | — | ||||||||||||||||||||
Total securities held to maturity, net of ACL | $ | $ | ($ | $ |
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||
(In Thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||
June 30, 2023 | ||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | ($ | $ | ($ | $ | ($ | ||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||
Collateralized loan obligations | ( | ( | ( | |||||||||||||||||
Municipal securities | ( | ( | ||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | ($ | ||||||||||||||
December 31, 2022: | ||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | ($ | $ | ($ | $ | ($ | ||||||||||||||
Corporate bonds | ( | ( | ( | |||||||||||||||||
Collateralized loan obligations | ( | ( | ( | |||||||||||||||||
Municipal securities | ( | ( | ||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | ($ |
(In Thousands) | Amortized Cost | Fair Value | |||||||||
US Treasury and government sponsored entities | |||||||||||
Within 1 year | $ | $ | |||||||||
1-5 years | |||||||||||
Total | $ | $ | |||||||||
Corporate bonds | |||||||||||
Within 1 year | $ | $ | |||||||||
1-5 years | |||||||||||
5-10 years | |||||||||||
Total | $ | $ | |||||||||
Collateralized loan obligations | |||||||||||
5-10 years | $ | $ | |||||||||
Over 10 years | |||||||||||
Total | $ | $ | |||||||||
Municipal securities | |||||||||||
Within 1 year | $ | $ | |||||||||
Total | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
US Treasury and government sponsored entities | $ | $ | $ | $ | ||||||||||||||||
Other | ||||||||||||||||||||
Total taxable interest income | $ | $ | $ | $ | ||||||||||||||||
Municipal securities | $ | $ | $ | $ | ||||||||||||||||
Total tax-exempt interest income | $ | $ | $ | $ | ||||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||
(In Thousands) | Amortized Cost | Unpaid Principal | Difference | Amortized Cost | Unpaid Principal | Difference | ||||||||||||||
Commercial & industrial loans | $ | $ | ($ | $ | $ | ($ | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied properties | ( | ( | ||||||||||||||||||
Non-owner occupied and multifamily properties | ( | ( | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||
1-4 family residential properties secured by first liens | ( | |||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | ||||||||||||||||||||
1-4 family residential construction loans | ( | ( | ||||||||||||||||||
Other construction, land development and raw land loans | ( | ( | ||||||||||||||||||
Obligations of states and political subdivisions in the US | ( | ( | ||||||||||||||||||
Agricultural production, including commercial fishing | ( | ( | ||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Other loans | ( | ( | ||||||||||||||||||
Total | ( | ( | ||||||||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||||||||
$ | $ | ($ | $ | $ | ($ |
Three Months Ended June 30, | Beginning Balance | Credit Loss Expense (Benefit) | Charge-offs | Recoveries | Ending Balance | ||||||||||||
(In Thousands) | |||||||||||||||||
2023 | |||||||||||||||||
Commercial & industrial loans | $ | $ | ($ | $ | $ | ||||||||||||
Commercial real estate: | |||||||||||||||||
Owner occupied properties | |||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||
Residential real estate: | |||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||
1-4 family residential construction loans | ( | ||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||
Obligations of states and political subdivisions in the US | ( | ||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||
Consumer loans | |||||||||||||||||
Other loans | |||||||||||||||||
Total | $ | $ | ($ | $ | $ | ||||||||||||
2022 | |||||||||||||||||
Commercial & industrial loans | $ | $ | ($ | $ | $ | ||||||||||||
Commercial real estate: | |||||||||||||||||
Owner occupied properties | |||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||
Residential real estate: | |||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||
Other construction, land development and raw land loans | ( | ||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||
Agricultural production, including commercial fishing | ( | ||||||||||||||||
Consumer loans | ( | ||||||||||||||||
Other loans | ( | ||||||||||||||||
Total | $ | $ | ($ | $ | $ |
Six Months Ended June 30, | Beginning Balance | Credit Loss Expense (Benefit) | Charge-offs | Recoveries | Ending Balance | ||||||||||||
(In Thousands) | |||||||||||||||||
2023 | |||||||||||||||||
Commercial & industrial loans | $ | $ | ($ | $ | $ | ||||||||||||
Commercial real estate: | |||||||||||||||||
Owner occupied properties | ( | ||||||||||||||||
Non-owner occupied and multifamily properties | ( | ||||||||||||||||
Residential real estate: | |||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||
1-4 family residential construction loans | ( | ||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||
Consumer loans | ( | ||||||||||||||||
Other loans | ( | ||||||||||||||||
Total | $ | $ | ($ | $ | $ | ||||||||||||
2022 | |||||||||||||||||
Commercial & industrial loans | $ | $ | ($ | $ | $ | ||||||||||||
Commercial real estate: | |||||||||||||||||
Owner occupied properties | ( | ||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||
Residential real estate: | |||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||
Other construction, land development and raw land loans | ( | ||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||
Consumer loans | ( | ||||||||||||||||
Other loans | ( | ||||||||||||||||
Total | $ | $ | ($ | $ | $ |
Six Months Ended June 30, | |||||||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||
2023 | |||||||||||||||||||||||
Commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Owner occupied properties | |||||||||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Other loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
June 30, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Commercial & industrial loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Owner occupied properties | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial real estate owner occupied properties | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial real estate non-owner occupied and multifamily properties | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential properties secured by first liens | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential construction loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total other construction, land development and raw land loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total obligations of states and political subdivisions in the US | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total agricultural production, including commercial fishing | $ | $ | $ | $ | $ | $ | $ |
Consumer loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total consumer loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Other loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total other loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total pass loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Government guarantees | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Total pass loans, net of government guarantees | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total classified loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Government guarantees | ( | ( | ( | ( | ( | ||||||||||||||||||
Total classified loans, net government guarantees | $ | $ | $ | $ | $ | $ | $ |
December 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Commercial & industrial loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Owner occupied properties | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial real estate owner occupied properties | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total commercial real estate non-owner occupied and multifamily properties | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential properties secured by first liens | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total residential real estate 1-4 family residential construction loans | $ | $ | $ | $ | $ | $ | $ |
Other construction, land development and raw land loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total other construction, land development and raw land loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total obligations of states and political subdivisions in the US | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total agricultural production, including commercial fishing | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total consumer loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Other loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total other loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total loans | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Classified | |||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total pass loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Government guarantees | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Total pass loans, net of government guarantees | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Total classified loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Government guarantees | ( | ( | ( | ( | |||||||||||||||||||
Total classified loans, net government guarantees | $ | $ | $ | $ | $ | $ | $ |
(In Thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days Past Due | Total Past Due | Current | Total | Greater Than 90 Days Past Due Still Accruing | ||||||||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner occupied properties | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||||||||||||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||||||||||||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||
Other loans | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner occupied properties | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied and multifamily properties | |||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential properties secured by first liens | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction loans | |||||||||||||||||||||||||||||||||||||||||
Other construction, land development and raw land loans | |||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions in the US | |||||||||||||||||||||||||||||||||||||||||
Agricultural production, including commercial fishing | |||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||
Other loans | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||
(In Thousands) | Nonaccrual | Nonaccrual With No ACL | Nonaccrual | Nonaccrual With No ACL | ||||||||||
Commercial & industrial loans | $ | $ | $ | $ | ||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied properties | ||||||||||||||
Non-owner occupied and multifamily properties | ||||||||||||||
Residential real estate: | ||||||||||||||
1-4 family residential properties secured by first liens | ||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | ||||||||||||||
1-4 family residential construction loans | ||||||||||||||
Other construction, land development and raw land loans | ||||||||||||||
Total nonaccrual loans | ||||||||||||||
Government guarantees on nonaccrual loans | ( | ( | ( | ( | ||||||||||
Net nonaccrual loans | $ | $ | $ | $ |
June 30, 2023 | ||||||||||||||||||||
Term Modification | Payment Modification | Interest Rate Modification | Principal Forgiveness | Total Modifications | Percentage of Class of Financing Receivable | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Commercial & industrial loans | $ | $ | $ | $ | $ | % | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied properties | % | |||||||||||||||||||
Non-owner occupied and multifamily properties | % | |||||||||||||||||||
Residential real estate: | ||||||||||||||||||||
1-4 family residential properties secured by first liens | % | |||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | % | |||||||||||||||||||
1-4 family residential construction loans | % | |||||||||||||||||||
Other construction, land development and raw land loans | % | |||||||||||||||||||
Obligations of states and political subdivisions in the US | % | |||||||||||||||||||
Agricultural production, including commercial fishing | % | |||||||||||||||||||
Consumer loans | % | |||||||||||||||||||
Other loans | % | |||||||||||||||||||
Total | $ | $ | $ | $ | $ | % |
June 30, 2023 | |||||||||||
Principal Forgiveness | Weighted-Average Interest Rate Reduction | Weighted-Average Term Extension (months) | |||||||||
(In Thousands) | |||||||||||
Commercial & industrial loans | $ | % | |||||||||
Commercial real estate: | |||||||||||
Owner occupied properties | % | ||||||||||
Non-owner occupied and multifamily properties | % | ||||||||||
Residential real estate: | |||||||||||
1-4 family residential properties secured by first liens | % | ||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | % | ||||||||||
1-4 family residential construction loans | % | ||||||||||
Other construction, land development and raw land loans | % | ||||||||||
Obligations of states and political subdivisions in the US | % | ||||||||||
Agricultural production, including commercial fishing | % | ||||||||||
Consumer loans | % | ||||||||||
Other loans | % | ||||||||||
Total | $ | % |
Loan Modifications due to COVID-19 as of December 31, 2022 | |||||||||||
(Dollars in thousands) | Interest Only | Full Payment Deferral | Total | ||||||||
Portfolio loans | $ | $ | $ | ||||||||
Number of modifications |
(In Thousands) | June 30, 2023 | December 31, 2022 | ||||||
Purchased receivables | $ | $ | ||||||
Allowance for credit losses - purchased receivables | ||||||||
Total | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Balance, beginning of period | $ | $ | $ | $ | ||||||||||
Additions for new MSR capitalized | ||||||||||||||
Changes in fair value: | ||||||||||||||
Due to changes in model inputs of assumptions (1) | ( | ( | ( | |||||||||||
Other (2) | ( | ( | ( | ( | ||||||||||
Balance, end of period | $ | $ | $ | $ |
(In Thousands) | June 30, 2023 | December 31, 2022 | ||||||
Balance of mortgage loans serviced for others | $ | $ | ||||||
MSR as a percentage of serviced loans | % | % |
June 30, 2023 | December 31, 2022 | |||||||
Constant prepayment rate | % | % | ||||||
Discount rate | % | % |
(In Thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Aggregate portfolio principal balance | $ | $ | |||||||||
Weighted average rate of note | % | % | |||||||||
June 30, 2023 | Base | 1.0% Adverse Rate Change | 2.0% Adverse Rate Change | ||||||||
Constant prepayment rate | % | % | % | ||||||||
Discount rate | % | % | % | ||||||||
Fair value MSR | $ | $ | $ | ||||||||
Percentage of MSR | % | % | % | ||||||||
December 31, 2022 | |||||||||||
Constant prepayment rate | % | % | % | ||||||||
Discount rate | % | % | % | ||||||||
Fair value MSR | $ | $ | $ | ||||||||
Percentage of MSR | % | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Lease Cost | |||||||||||||||||
Operating lease cost(1) | $ | $ | $ | $ | |||||||||||||
Short term lease cost(1) | |||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||
Other information | |||||||||||||||||
Operating leases - operating cash flows | $ | $ | |||||||||||||||
Weighted average lease term - operating leases, in years | |||||||||||||||||
Weighted average discount rate - operating leases | % | % | |||||||||||||||
(1) | Expenses are classified within occupancy expense on the Consolidated Statements of Income. |
(In Thousands) | Operating Leases | ||||
2023 (Six months) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total minimum lease payments | $ | ||||
Less: amount of lease payment representing interest | ( | ||||
Present value of future minimum lease payments | $ |
(In Thousands) | Asset Derivatives | ||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Balance Sheet Location | Fair Value | Fair Value | |||||||||
Interest rate swaps | Other assets | $ | $ | ||||||||
Interest rate lock commitments | Other assets | ||||||||||
Retail interest rate contracts | Other assets | ||||||||||
Total | $ | $ |
(In Thousands) | Liability Derivatives | ||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Balance Sheet Location | Fair Value | Fair Value | |||||||||
Interest rate swaps | Other liabilities | $ | $ | ||||||||
Retail interest rate contracts | Other liabilities | ||||||||||
Total | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(In Thousands) | Income Statement Location | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Retail interest rate contracts | Mortgage banking income | $ | $ | $ | $ | ||||||||||||
Interest rate lock commitments | Mortgage banking income | ||||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2023 | Gross amounts not offset in the Statement of Financial Position | |||||||||||||||||||
(In Thousands) | Gross amounts of recognized assets and liabilities | Gross amounts offset in the Statement of Financial Position | Net amounts of assets and liabilities presented in the Statement of Financial Position | Financial Instruments | Collateral Posted | Net Amount | ||||||||||||||
Asset Derivatives | ||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||
Retail interest rate contracts | ||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||
December 31, 2022 | Gross amounts not offset in the Statement of Financial Position | |||||||||||||||||||
(In Thousands) | Gross amounts of recognized assets and liabilities | Gross amounts offset in the Statement of Financial Position | Net amounts of assets and liabilities presented in the Statement of Financial Position | Financial Instruments | Collateral Posted | Net Amount | ||||||||||||||
Asset Derivatives | ||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||
Liability Derivatives | ||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||
Retail interest rate contracts |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In Thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Level 1 inputs: | |||||||||||||||||||||||
Cash, due from banks and deposits in other banks | $ | $ | $ | $ | |||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||
Marketable equity securities | |||||||||||||||||||||||
Level 2 inputs: | |||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||
Investment in Federal Home Loan Bank stock | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Retail interest rate contracts | |||||||||||||||||||||||
Level 3 inputs: | |||||||||||||||||||||||
Investment securities held to maturity | |||||||||||||||||||||||
Loans | |||||||||||||||||||||||
Purchased receivables, net | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Mortgage servicing rights | |||||||||||||||||||||||
Commercial servicing rights | |||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Level 2 inputs: | |||||||||||||||||||||||
Deposits | $ | $ | $ | $ | |||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Retail interest rate contracts | |||||||||||||||||||||||
Level 3 inputs: | |||||||||||||||||||||||
Junior subordinated debentures |
(In Thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | $ | $ | $ | |||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | |||||||||||||||||||
Marketable equity securities | $ | $ | $ | $ | |||||||||||||||||||
Total marketable equity securities | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Mortgage servicing rights | |||||||||||||||||||||||
Commercial servicing rights | |||||||||||||||||||||||
Retail interest rate contracts | |||||||||||||||||||||||
Total other assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Total other liabilities | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. Treasury and government sponsored entities | $ | $ | $ | $ | |||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | |||||||||||||||||||
Marketable equity securities | $ | $ | $ | $ | |||||||||||||||||||
Total marketable securities | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Mortgage servicing rights | |||||||||||||||||||||||
Commercial servicing rights | |||||||||||||||||||||||
Total other assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Retail interest rate contracts | |||||||||||||||||||||||
Total other liabilities | $ | $ | $ | $ |
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period | ||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||
Interest rate lock commitments | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Mortgage servicing rights | ( | |||||||||||||||||||
Commercial servicing rights | ( | |||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Interest rate lock commitments | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Mortgage servicing rights | ( | |||||||||||||||||||
Commercial servicing rights | ( | |||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | $ |
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period | ||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||
Interest rate lock commitments | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Mortgage servicing rights | ( | |||||||||||||||||||
Commercial servicing rights | ( | |||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Interest rate lock commitments | $ | ($ | $ | ($ | $ | $ | ||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||
Commercial servicing rights | ( | |||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | $ |
(In Thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Loans individually measured for credit losses | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Loans individually measured for credit losses | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Loans individually measured for credit losses | ($ | ($ | $ | $ | ||||||||||||||||
Total loss from nonrecurring measurements | ($ | ($ | $ | $ |
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average Rate Range | ||||||||
June 30, 2023 | |||||||||||
Interest rate lock commitment | External pricing model | Pull through rate | % | ||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | |||||||||
Discount rate | |||||||||||
Commercial servicing rights | Discounted cash flow | Constant prepayment rate | |||||||||
Discount rate | % | ||||||||||
December 31, 2022 | |||||||||||
Interest rate lock commitment | External pricing model | Pull through rate | % | ||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | |||||||||
Discount rate | |||||||||||
Commercial servicing rights | Discounted cash flow | Constant prepayment rate | |||||||||
Discount rate | % |
Three Months Ended June 30, 2023 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Interest income | $ | $ | $ | ||||||||||||||
Interest expense | |||||||||||||||||
Net interest income | |||||||||||||||||
Provision for credit losses | |||||||||||||||||
Other operating income | |||||||||||||||||
Other operating expense | |||||||||||||||||
Income before provision for income taxes | |||||||||||||||||
Provision for income taxes | |||||||||||||||||
Net income | $ | $ | $ |
Three Months Ended June 30, 2022 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Interest income | $ | $ | $ | ||||||||||||||
Interest expense | |||||||||||||||||
Net interest income | |||||||||||||||||
Provision for credit losses | |||||||||||||||||
Other operating income | |||||||||||||||||
Other operating expense | |||||||||||||||||
Income (loss) before provision for income taxes | ( | ||||||||||||||||
Provision for income taxes | ( | ||||||||||||||||
Net income (loss) | $ | ($ | $ |
Six Months Ended June 30, 2023 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Interest income | $ | $ | $ | ||||||||||||||
Interest expense | |||||||||||||||||
Net interest income | |||||||||||||||||
Provision for credit losses | |||||||||||||||||
Other operating income | |||||||||||||||||
Other operating expense | |||||||||||||||||
Income (loss) before provision for income taxes | ( | ||||||||||||||||
Provision for income taxes | ( | ||||||||||||||||
Net income (loss) | $ | ($ | $ |
Six Months Ended June 30, 2022 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Interest income | $ | $ | $ | ||||||||||||||
Interest expense | |||||||||||||||||
Net interest income | |||||||||||||||||
Provision for credit losses | |||||||||||||||||
Other operating income | |||||||||||||||||
Other operating expense | |||||||||||||||||
Income before provision for income taxes | |||||||||||||||||
Provision for income taxes | |||||||||||||||||
Net income | $ | $ | $ |
June 30, 2023 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Loans held for sale | $ | $ | $ |
December 31, 2022 | |||||||||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Loans held for sale | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Return on average assets, annualized | 0.85 | % | 0.74 | % | 0.81 | % | 0.93 | % | ||||||
Return on average shareholders' equity, annualized | 9.85 | % | 8.58 | % | 9.30 | % | 10.51 | % | ||||||
Dividend payout ratio | 61.54 | % | 49.30 | % | 66.07 | % | 40.22 | % |
Writedowns | Transfers to | |||||||||||||||||||||||||
(In Thousands) | Balance at March 31, 2023 | Additions this quarter | Payments this quarter | /Charge-offs this quarter | Transfers to OREO | Performing Status this quarter | Sales this quarter | Balance at June 30, 2023 | ||||||||||||||||||
Nonperforming loans | $8,775 | $— | ($1,003) | ($49) | $— | $— | $— | $7,723 | ||||||||||||||||||
Nonperforming loans guaranteed by government | (2,692) | — | 269 | 49 | — | — | — | (2,374) | ||||||||||||||||||
Nonperforming loans, net | 6,083 | — | (734) | — | — | — | — | 5,349 | ||||||||||||||||||
Other real estate owned | 273 | — | — | — | — | — | — | 273 | ||||||||||||||||||
Total nonperforming assets, | ||||||||||||||||||||||||||
net of government guarantees | $6,356 | $— | ($734) | $— | $— | $— | $— | $5,622 |
Writedowns | Transfers to | |||||||||||||||||||||||||
(In Thousands) | Balance at March 31, 2022 | Additions this quarter | Payments this quarter | /Charge-offs this quarter | Transfers to OREO | Performing Status this quarter | Sales this quarter | Balance at June 30, 2022 | ||||||||||||||||||
Nonperforming loans | $9,609 | $22 | ($1,464) | ($166) | $— | $— | $— | $8,001 | ||||||||||||||||||
Nonperforming loans guaranteed by government | (907) | — | 224 | — | — | — | — | (683) | ||||||||||||||||||
Nonperforming loans, net | 8,702 | 22 | (1,240) | (166) | — | — | — | 7,318 | ||||||||||||||||||
Other real estate owned | 5,638 | — | — | — | — | — | — | 5,638 | ||||||||||||||||||
Other real estate owned guaranteed | ||||||||||||||||||||||||||
by government | (1,279) | — | — | — | — | — | — | (1,279) | ||||||||||||||||||
Total nonperforming assets, | ||||||||||||||||||||||||||
net of government guarantees | $13,061 | $22 | ($1,240) | ($166) | $— | $— | $— | $11,677 |
Three Months Ended June 30, 2023 vs. June 30, 2022 | |||||
Nonaccrual interest adjustments | (0.11) | % | |||
Impact of SBA Paycheck Protection Program loans | (0.17) | % | |||
Interest rates on loans and liabilities and loan fees, all other loans | 0.68 | % | |||
Volume and mix of other interest-earning assets and liabilities | 0.07 | % | |||
Change in net interest margin | 0.47 | % |
Six Months Ended June 30, 2023 vs. June 30, 2022 | |||||
Nonaccrual interest adjustments | (0.05) | % | |||
Impact of SBA Paycheck Protection Program loans | (0.20) | % | |||
Interest rates on loans and liabilities and loan fees, all other loans | 0.96 | % | |||
Volume and mix of other interest-earning assets and liabilities | 0.05 | % | |||
Change in net interest margin | 0.76 | % |
(Dollars in Thousands) | Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||
Interest income/ | Average Tax Equivalent | ||||||||||||||||||||||||||||||||||
Average Balances | Change | expense | Change | Yields/Costs6 | |||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | 2023 | 2022 | Change | |||||||||||||||||||||||||
Interest-bearing deposits in other banks1 | $66,058 | $382,015 | ($315,957) | (83) | % | $828 | $766 | $62 | 8 | % | 4.96 | % | 0.79 | % | 4.17 | % | |||||||||||||||||||
Taxable long-term investments2 | 727,833 | 589,553 | 138,280 | 23 | % | 4,679 | 2,419 | 2,260 | 93 | % | 2.40 | % | 1.59 | % | 0.81 | % | |||||||||||||||||||
Loans held for sale | 37,594 | 59,677 | (22,083) | (37) | % | 559 | 620 | (61) | (10) | % | 5.96 | % | 4.16 | % | 1.80 | % | |||||||||||||||||||
Loans3,4 | 1,603,126 | 1,398,149 | 204,977 | 15 | % | 25,754 | 19,187 | 6,567 | 34 | % | 6.48 | % | 5.52 | % | 0.96 | % | |||||||||||||||||||
Interest-earning assets5 | 2,434,611 | 2,429,394 | 5,217 | 0 | % | 31,820 | 22,992 | 8,828 | 38 | % | 5.31 | % | 3.83 | % | 1.48 | % | |||||||||||||||||||
Nonearning assets | 185,342 | 172,655 | 12,687 | 7 | % | ||||||||||||||||||||||||||||||
Total | $2,619,953 | $2,602,049 | $17,904 | 1 | % | ||||||||||||||||||||||||||||||
Interest-bearing demand | $765,984 | $669,848 | $96,136 | 14 | % | $2,849 | $167 | $2,682 | 1,606 | % | 1.49 | % | 0.10 | % | 1.39 | % | |||||||||||||||||||
Savings deposits | 282,579 | 349,108 | (66,529) | (19) | % | 326 | 118 | 208 | 176 | % | 0.46 | % | 0.14 | % | 0.32 | % | |||||||||||||||||||
Money market deposits | 245,790 | 322,384 | (76,594) | (24) | % | 813 | 103 | 710 | 689 | % | 1.33 | % | 0.13 | % | 1.20 | % | |||||||||||||||||||
Time deposits | 273,820 | 172,617 | 101,203 | 59 | % | 2,126 | 211 | 1,915 | 908 | % | 3.11 | % | 0.49 | % | 2.62 | % | |||||||||||||||||||
Total interest-bearing deposits | 1,568,173 | 1,513,957 | 54,216 | 4 | % | 6,114 | 599 | 5,515 | 921 | % | 1.56 | % | 0.16 | % | 1.40 | % | |||||||||||||||||||
Borrowings | 54,602 | 24,675 | 29,927 | 121 | % | 564 | 181 | 383 | 212 | % | 4.11 | % | 2.92 | % | 1.19 | % | |||||||||||||||||||
Total interest-bearing liabilities | 1,622,775 | 1,538,632 | 84,143 | 5 | % | 6,678 | 780 | 5,898 | 756 | % | 1.65 | % | 0.20 | % | 1.45 | % | |||||||||||||||||||
Non-interest bearing demand deposits | 735,615 | 808,186 | (72,571) | (9) | % | ||||||||||||||||||||||||||||||
Other liabilities | 34,514 | 31,064 | 3,450 | 11 | % | ||||||||||||||||||||||||||||||
Equity | 227,049 | 224,167 | 2,882 | 1 | % | ||||||||||||||||||||||||||||||
Total | $2,619,953 | $2,602,049 | $17,904 | 1 | % | ||||||||||||||||||||||||||||||
Net interest income | $25,142 | $22,212 | $2,930 | 13 | % | ||||||||||||||||||||||||||||||
Net interest margin | 4.14 | % | 3.67 | % | 0.47 | % | |||||||||||||||||||||||||||||
Average loans to average interest-earning assets | 65.85 | % | 57.55 | % | |||||||||||||||||||||||||||||||
Average loans to average total deposits | 69.59 | % | 60.21 | % | |||||||||||||||||||||||||||||||
Average non-interest deposits to average total deposits | 31.93 | % | 34.80 | % | |||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 150.03 | % | 157.89 | % |
(In Thousands) | Three Months Ended June 30, 2023 vs. 2022 | ||||||||||
Increase (decrease) due to | |||||||||||
Volume | Rate | Total | |||||||||
Interest Income: | |||||||||||
Short-term investments | ($12) | $74 | $62 | ||||||||
Taxable long-term investments | 704 | 1,556 | 2,260 | ||||||||
Loans held for sale | (275) | 214 | (61) | ||||||||
Loans | 2,297 | 4,270 | 6,567 | ||||||||
Total interest income | $2,714 | $6,114 | $8,828 | ||||||||
Interest Expense: | |||||||||||
Interest-bearing demand | $21 | $2,661 | $2,682 | ||||||||
Savings deposits | (27) | 235 | 208 | ||||||||
Money market deposits | (31) | 741 | 710 | ||||||||
Time deposits | 42 | 1,873 | 1,915 | ||||||||
Interest-bearing deposits | 5 | 5,510 | 5,515 | ||||||||
Borrowings | 356 | 27 | 383 | ||||||||
Total interest expense | $361 | $5,537 | $5,898 |
(Dollars in Thousands) | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
Interest income/ | Average Tax Equivalent | ||||||||||||||||||||||||||||||||||
Average Balances | Change | expense | Change | Yields/Costs6 | |||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | 2023 | 2022 | Change | |||||||||||||||||||||||||
Interest-bearing deposits in other banks1 | $98,314 | $459,843 | ($361,529) | (79) | % | $2,317 | $1,008 | $1,309 | 130 | % | 4.69 | % | 0.44 | % | 4.25 | % | |||||||||||||||||||
Taxable long-term investments2 | 727,722 | 540,563 | 187,159 | 35 | % | 9,291 | 3,967 | 5,324 | 134 | % | 2.40 | % | 1.43 | % | 0.97 | % | |||||||||||||||||||
Loans held for sale | 29,294 | 56,173 | (26,879) | (48) | % | 849 | 1,025 | (176) | (17) | % | 5.80 | % | 3.65 | % | 2.15 | % | |||||||||||||||||||
Loans3,4 | 1,563,847 | 1,389,050 | 174,797 | 13 | % | 49,158 | 37,050 | 12,108 | 33 | % | 6.39 | % | 5.40 | % | 0.99 | % | |||||||||||||||||||
Interest-earning assets5 | 2,419,177 | 2,445,629 | (26,452) | (1) | % | 61,615 | 43,050 | 18,565 | 43 | % | 5.21 | % | 3.58 | % | 1.63 | % | |||||||||||||||||||
Nonearning assets | 185,545 | 164,611 | 20,934 | 13 | % | ||||||||||||||||||||||||||||||
Total | $2,604,722 | $2,610,240 | ($5,518) | 0 | % | ||||||||||||||||||||||||||||||
Interest-bearing demand | $742,356 | $672,694 | $69,662 | 10 | % | $4,876 | $282 | $4,594 | 1,629 | % | 1.32 | % | 0.08 | % | 1.24 | % | |||||||||||||||||||
Savings deposits | 291,904 | 350,823 | (58,919) | (17) | % | 667 | 246 | 421 | 171 | % | 0.46 | % | 0.14 | % | 0.32 | % | |||||||||||||||||||
Money market deposits | 269,584 | 321,580 | (51,996) | (16) | % | 1,595 | 205 | 1,390 | 678 | % | 1.19 | % | 0.13 | % | 1.06 | % | |||||||||||||||||||
Time deposits | 252,030 | 174,898 | 77,132 | 44 | % | 3,559 | 441 | 3,118 | 707 | % | 2.85 | % | 0.51 | % | 2.34 | % | |||||||||||||||||||
Total interest-bearing deposits | 1,555,874 | 1,519,995 | 35,879 | 2 | % | 10,697 | 1,174 | 9,523 | 811 | % | 1.39 | % | 0.16 | % | 1.23 | % | |||||||||||||||||||
Borrowings | 39,567 | 24,726 | 14,841 | 60 | % | 744 | 360 | 384 | 107 | % | 3.74 | % | 2.94 | % | 0.80 | % | |||||||||||||||||||
Total interest-bearing liabilities | 1,595,441 | 1,544,721 | 50,720 | 3 | % | 11,441 | 1,534 | 9,907 | 646 | % | 1.44 | % | 0.20 | % | 1.24 | % | |||||||||||||||||||
Non-interest bearing demand deposits | 745,795 | 801,481 | (55,686) | (7) | % | ||||||||||||||||||||||||||||||
Other liabilities | 37,772 | 33,436 | 4,336 | 13 | % | ||||||||||||||||||||||||||||||
Equity | 225,714 | 230,602 | (4,888) | (2) | % | ||||||||||||||||||||||||||||||
Total | $2,604,722 | $2,610,240 | ($5,518) | 0 | % | ||||||||||||||||||||||||||||||
Net interest income | $50,174 | $41,516 | $8,658 | 21 | % | ||||||||||||||||||||||||||||||
Net interest margin | 4.18 | % | 3.42 | % | 0.76 | % | |||||||||||||||||||||||||||||
Average loans to average interest-earning assets | 64.64 | % | 56.80 | % | |||||||||||||||||||||||||||||||
Average loans to average total deposits | 67.94 | % | 59.83 | % | |||||||||||||||||||||||||||||||
Average non-interest deposits to average total deposits | 32.40 | % | 34.52 | % | |||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 151.63 | % | 158.32 | % |
(In Thousands) | Six Months Ended June 30, 2023 vs. 2022 | ||||||||||
Increase (decrease) due to | |||||||||||
Volume | Rate | Total | |||||||||
Interest Income: | |||||||||||
Short-term investments | ($115) | $1,424 | $1,309 | ||||||||
Taxable long-term investments | 1,800 | 3,524 | 5,324 | ||||||||
Loans held for sale | (616) | 440 | (176) | ||||||||
Loans | 503 | 11,605 | 12,108 | ||||||||
Total interest income | $1,572 | $16,993 | $18,565 | ||||||||
Interest Expense: | |||||||||||
Interest-bearing demand | $26 | $4,568 | $4,594 | ||||||||
Savings deposits | (47) | 468 | 421 | ||||||||
Money market deposits | (38) | 1,428 | 1,390 | ||||||||
Time deposits | 99 | 3,019 | 3,118 | ||||||||
Interest-bearing deposits | 40 | 9,483 | 9,523 | ||||||||
Borrowings | 345 | 39 | 384 | ||||||||
Total interest expense | $385 | $9,522 | $9,907 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Credit loss expense on loans held for investment | $1,510 | $273 | $1,769 | $106 | ||||||||||
Credit loss expense on unfunded commitments | (103) | 190 | (2) | 207 | ||||||||||
Credit loss expense on available for sale debt securities | — | — | — | — | ||||||||||
Credit loss expense on held to maturity securities | — | — | — | — | ||||||||||
Credit loss expense on purchased receivables | — | — | — | — | ||||||||||
Total credit loss (benefit) expense | $1,407 | $463 | $1,767 | $313 |
June 30, 2023 | December 31, 2022 | |||||||||||||
Dollar Amount | Percent of Total | Dollar Amount | Percent of Total | |||||||||||
(In Thousands) | ||||||||||||||
Balance | % of total | Balance | % of total | |||||||||||
U.S. Treasury and government sponsored entities | $597,665 | 83.1 | % | $595,161 | 82.2 | % | ||||||||
Municipal securities | 802 | 0.1 | % | 795 | 0.1 | % | ||||||||
Corporate bonds | 50,230 | 7.0 | % | 60,394 | 8.3 | % | ||||||||
Collateralized loan obligations | 59,192 | 8.2 | % | 57,429 | 7.9 | % | ||||||||
Preferred stock | 10,604 | 1.5 | % | 10,740 | 1.5 | % | ||||||||
Total portfolio investments | $718,493 | $724,519 |
June 30, 2023 | December 31, 2022 | |||||||||||||
Dollar Amount | Percent of Total | Dollar Amount | Percent of Total | |||||||||||
(In Thousands) | ||||||||||||||
Commercial & industrial loans | $418,752 | 25.2 | % | $358,128 | 23.8 | % | ||||||||
Commercial real estate: | ||||||||||||||
Owner occupied properties | 348,834 | 21.0 | % | 349,973 | 23.3 | % | ||||||||
Non-owner occupied and multifamily properties | 490,821 | 29.7 | % | 482,270 | 32.2 | % | ||||||||
Residential real estate: | ||||||||||||||
1-4 family residential properties secured by first liens | 160,546 | 9.7 | % | 73,381 | 4.9 | % | ||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 25,156 | 1.5 | % | 20,259 | 1.3 | % | ||||||||
1-4 family residential construction loans | 35,349 | 2.1 | % | 44,000 | 2.9 | % | ||||||||
Other construction, land development and raw land loans | 95,124 | 5.7 | % | 99,182 | 6.6 | % | ||||||||
Obligations of states and political subdivisions in the US | 35,325 | 2.1 | % | 32,539 | 2.2 | % | ||||||||
Agricultural production, including commercial fishing | 40,767 | 2.5 | % | 34,099 | 2.3 | % | ||||||||
Consumer loans | 5,551 | 0.3 | % | 4,335 | 0.3 | % | ||||||||
Other loans | 3,014 | 0.2 | % | 3,619 | 0.2 | % | ||||||||
Total loans | $1,659,239 | $1,501,785 |
(In Thousands) | June 30, 2023 | December 31, 2022 | ||||||
Commercial & industrial loans | $78,223 | $66,864 | ||||||
Commercial real estate: | ||||||||
Owner occupied properties | 11,911 | 9,108 | ||||||
Non-owner occupied and multifamily properties | 5,727 | 6,013 | ||||||
Other loans | 1,394 | 1,431 | ||||||
Total | $97,255 | $83,416 |
(In Thousands) | Tourism | Aviation (non-tourism) | Healthcare | Retail | Fishing | Restaurant | Accommodations | Total | ||||||||||||||||||
ACL | $658 | $557 | $1,072 | $614 | $445 | $385 | $587 | $4,318 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Balance at beginning of period | $14,157 | $11,310 | $13,838 | $11,739 | ||||||||||||||||
Commercial & industrial loans | (49) | (166) | (49) | (461) | ||||||||||||||||
Consumer loans | — | — | (14) | — | ||||||||||||||||
Total charge-offs | (49) | (166) | (63) | (461) | ||||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial & industrial loans | 21 | 103 | 86 | 116 | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 5 | 9 | 12 | 21 | ||||||||||||||||
Agricultural production, including commercial fishing | — | 7 | — | 15 | ||||||||||||||||
Consumer loans | 1 | 1 | 3 | 1 | ||||||||||||||||
Total recoveries | 27 | 120 | 101 | 153 | ||||||||||||||||
Net, charge-offs | (22) | (46) | 38 | (308) | ||||||||||||||||
Provision (benefit) for credit losses | 1,510 | 273 | 1,769 | 106 | ||||||||||||||||
Balance at end of period | $15,645 | $11,537 | $15,645 | $11,537 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Balance at beginning of period | $2,071 | $1,113 | $1,970 | $1,096 | ||||||||||||||||
Provision for credit losses | (103) | 190 | (2) | 207 | ||||||||||||||||
Balance at end of period | $1,968 | $1,303 | $1,968 | $1,303 |
June 30, 2023 | December 31, 2022 | |||||||||||||
(In thousands) | Balance | % of total | Balance | % of total | ||||||||||
Demand deposits | $711,390 | 31 | % | $797,434 | 34 | % | ||||||||
Interest-bearing demand | 795,128 | 35 | % | 767,686 | 32 | % | ||||||||
Savings deposits | 275,602 | 12 | % | 320,917 | 13 | % | ||||||||
Money market deposits | 232,698 | 10 | % | 308,317 | 13 | % | ||||||||
Time deposits | 287,493 | 12 | % | 192,857 | 8 | % | ||||||||
Total deposits | $2,302,311 | $2,387,211 |
Time Certificates of Deposit | ||||||||
of $250,000 or More | ||||||||
Percent of Total Deposits | ||||||||
(In Thousands) | Amount | |||||||
Amounts maturing in: | ||||||||
Three months or less | $8,585 | 7 | % | |||||
Over 3 through 6 months | 31,350 | 27 | % | |||||
Over 6 through 12 months | 21,190 | 18 | % | |||||
Over 12 months | 56,186 | 48 | % | |||||
Total | $117,311 | 100 | % |
Minimum Required Capital | Well-Capitalized | Actual Ratio Company | Actual Ratio Bank | ||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Total risk-based capital | 8.00% | 10.00% | 13.02% | 11.16% | |||||||||||||||||||
Tier 1 risk-based capital | 6.00% | 8.00% | 12.13% | 10.26% | |||||||||||||||||||
Common equity tier 1 capital | 4.50% | 6.50% | 11.64% | 10.27% | |||||||||||||||||||
Leverage ratio | 4.00% | 5.00% | 9.28% | 7.83% |
Total Number of Shares (or Units) Purchased | Average Price Paid per Shares (or Unit) | Total Number of Shares (or Units) Purchased as Part of the Publicly Announced Plans or Programs | Maximum Number (1) (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||||||||||
Period | (a) | (b) | (c) | (d) | ||||||||||
Month No. 1 | ||||||||||||||
April 1, 2023 - April 30, 2023 | 19,000 | $44.34 | 19,000 | 238,113 | ||||||||||
Month No. 2 | ||||||||||||||
May 1, 2023 - May 31, 2023 | 22,000 | $37.10 | 22,000 | 216,113 | ||||||||||
Month No. 3 | ||||||||||||||
June 1, 2023 - June 30, 2023 | 21,000 | $40.09 | 21,000 | 195,113 | ||||||||||
Total | 62,000 | $40.30 | 62,000 | 195,113 |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 | The cover page for the Company's Quarterly Report on 10-Q for the quarter ended June 30, 2023 - formatted in Inline XBRL (included in Exhibit 101) |
August 4, 2023 | By | /s/ Joseph M. Schierhorn | ||||||
Joseph M. Schierhorn | ||||||||
Chairman, President, Chief Executive Officer and Chief Operating Officer | ||||||||
(Principal Executive Officer) |
August 4, 2023 | By | /s/ Jed W. Ballard | ||||||
Jed W. Ballard | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
/s/ Joseph M. Schierhorn | |||||
Joseph M. Schierhorn | |||||
Chief Executive Officer |
/s/ Jed W. Ballard | |||||
Jed W. Ballard | |||||
Chief Financial Officer |
/s/ Joseph M. Schierhorn | |||||
Joseph M. Schierhorn | |||||
Chief Executive Officer |
/s/ Jed W. Ballard | |||||
Jed W. Ballard | |||||
Chief Financial Officer |
Cover - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Aug. 04, 2023 |
|
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-33501 | |
Entity Registrant Name | NORTHRIM BANCORP, INC. | |
Entity Incorporation, State or Country Code | AK | |
Entity Tax Identification Number | 92-0175752 | |
Entity Address, Address Line One | 3111 C Street | |
Entity Address, City or Town | Anchorage | |
Entity Address, State or Province | AK | |
Entity Address, Postal Zip Code | 99503 | |
City Area Code | 907 | |
Local Phone Number | 562-0062 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,588,841 | |
Amendment Flag | false | |
Entity Central Index Key | 0001163370 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,610,841 | 5,700,728 |
Common stock, shares outstanding (in shares) | 5,610,841 | 5,700,728 |
Consolidated Statements of Comprehensive Income - 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 | $ 5,577 | $ 4,795 | $ 10,407 | $ 12,021 |
Securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period | (4,414) | (7,715) | 3,705 | (24,017) |
Derivatives and hedging activities: | ||||
Unrealized holding (losses) gains arising during the period | 281 | 827 | (18) | 1,754 |
Income tax benefit related to unrealized (gains) and losses | 1,175 | 1,958 | (1,048) | 6,329 |
Other comprehensive income (loss), net of tax | (2,958) | (4,930) | 2,639 | (15,934) |
Comprehensive income (loss) | $ 2,619 | $ (135) | $ 13,046 | $ (3,913) |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend on common stock (in USD per share) | $ 0.60 | $ 0.60 | $ 0.50 | $ 0.50 | $ 0.41 | $ 0.41 |
Basis of Presentation and Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements and corresponding footnotes have been prepared by Northrim BanCorp, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The year-end Consolidated Balance Sheet data was derived from the Company's audited financial statements. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Company owns a 100% interest in Residential Mortgage Holding Company, LLC, the parent company of Residential Mortgage, LLC (collectively "RML") and consolidates their balance sheets and income statement into its financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company determined that it operates in two primary operating segments: Community Banking and Home Mortgage Lending. The Company has evaluated subsequent events and transactions for potential recognition or disclosure. Operating results for the interim period ended June 30, 2023 are not necessarily indicative of the results anticipated for the year ending December 31, 2023. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company’s significant accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in our application of these accounting policies in 2023. Reclassification of Prior Period Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or total shareholders' equity. Recent Accounting Pronouncements Accounting pronouncements implemented in 2023 In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). The amendments in ASU 2022-02 eliminate the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs which includes an assessment of whether the creditor has granted a concession, an entity must evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, for public business entities, ASU 2022-02 requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost in the vintage disclosures required by paragraph 326-20-50-6. The Company adopted ASU 2022-02 on January 1, 2023. The Company elected to adopt the updated guidance on TDR recognition and measurement prospectively; therefore the guidance is applied to modifications occurring after the date of adoption. The amendments on TDR disclosures and vintage disclosures must be adopted prospectively. The adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial position or results of operations. Accounting pronouncements to be implemented in future periods In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ("ASU 2023-02"). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit ("LIHTC") structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to paragraph ASC 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in this ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method. ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023 and must be applied on either a modified retrospective or a retrospective basis. The Company does not have any equity investments made primarily for the purpose of receiving income tax credits except for LIHTC structures, which it accounts for using the proportional amortization method. The Company does not believe that the adoption of ASU 2023-02 will have a material impact on the Company's consolidated financial statements.
|
Investment Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Marketable Equity Securities The Company held marketable equity securities with fair values of $10.6 million and $10.7 million at June 30, 2023 and December 31, 2022, respectively. The gross realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income were as follows:
Debt securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, estimated fair value, and the Allowance for Credit Losses ("ACL") of debt securities and the corresponding amounts of gross unrealized gains and losses of available-for-sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities at the periods indicated:
Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022 were as follows:
Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At June 30, 2023, the Company had 83 available for sale securities in an unrealized loss position without an ACL. At June 30, 2023, the Company had five held to maturity securities in an unrealized loss position without an ACL. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates, and therefore no losses have been recognized in the Company's Consolidated Statements of Income. At June 30, 2023 and December 31, 2022, carrying amounts of $161.7 million and $59.3 million in securities were pledged for deposits and borrowings, respectively. The amortized cost and estimated fair values of debt securities at June 30, 2023, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no proceeds from sales of investment securities for the three or six-month periods ending June 30, 2023 and 2022. A summary of interest income for the three and six-month periods ending June 30, 2023 and 2022, on available for sale investment securities are as follows:
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans Held for Sale Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of June 30, 2023 and December 31, 2022. Loans Held for Investment The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses methodology to assess credit risk, for the periods indicated:
The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $7.9 million at June 30, 2023 and $8.6 million at December 31, 2022. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $6.7 million and $5.5 million at June 30, 2023 and December 31, 2022, respectively, and is included in other assets in the Consolidated Balance Sheets. Amortized cost in the above table includes $3.6 million and $7.1 million as of June 30, 2023 and December 31, 2022, respectively, in Paycheck Protection Program loans administered by the U.S. Small Business Administration ("SBA") within the Commercial & industrial loan segment. Allowance for Credit Losses The activity in the ACL related to loans held for investment for the periods indicated is as follows:
The following table shows gross charge-offs by grade and by year of loan origination for the periods indicated:
Credit Quality Information As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered "classified" loans. A description of the general characteristics of the AQR risk classifications are as follows: Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses. Classified loans: Special Mention – 7: A "special mention" credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date. Substandard – 8: A "substandard" credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Northrim Bank will sustain some loss if the deficiencies are not corrected. Doubtful – 9: An asset classified "doubtful" has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety. Loss – 10: An asset classified "loss" is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future. The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.
Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:
Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $5.3 million and $6.4 million at June 30, 2023 and December 31, 2022, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's Current Expected Credit Losses methodology.
There was no interest on nonaccrual loans reversed through interest income during three and six-month periods ending June 30, 2023. There was no interest on nonaccrual loans reversed through interest income during the three-month period ending June 30, 2022 and $2,000 interest on nonaccrual loans reversed through interest income during the six-month period ending June 30, 2022. There was no interest earned on nonaccrual loans with a principal balance during the three and six-month periods ending June 30, 2023 and June 30, 2022. However, the Company recognized interest income of $205,000 and $873,000 in the three-month periods ending June 30, 2023 and 2022, respectively, and $384,000 and $930,000 in the six-month periods ending June 30, 2023 and 2022, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero. Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on one loan. As noted in Note 1, the Company adopted ASU 2022-02 effective January 1, 2023. ASU 2022-02 eliminates the accounting guidance for loans classified as TDRs. TDRs totaled $5.1 million at December 31, 2022. The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the period indicated, by class and type of modification. 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 financing receivable is also presented below:
The Company has no outstanding commitments to the borrowers included in the previous table. The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of June 30, 2023, no loan modifications were past due. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three-months ended June 30, 2023:
There were no loans that had a payment default during the three-months ended June 30, 2023 which were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. Upon the Company's determination that a modified loan (or a 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. The provisions of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act included an election to not apply the guidance on accounting for TDRs to loan modifications, such as extensions or deferrals, related to COVID-19 made between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the end of the COVID-19 national emergency. The relief can only be applied to modifications for borrowers that were not more than 30 days past due as of December 31, 2019. The Company has elected to adopt these provisions of the CARES Act. As of June 30, 2023, the Company has no loan modifications related to COVID-19, which are not classified as TDRs. At December 31, 2022, the Company had made the following types of loan modifications related to COVID-19, which are not classified as TDRs principal balance outstanding of:
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Purchased Receivables |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables | Purchased Receivables Purchased receivables are carried at their principal amount outstanding, net of an ACL, and have a maturity of less than one year. There were no purchased receivables past due at June 30, 2023 or December 31, 2022, and there were no restructured purchased receivables at June 30, 2023 or December 31, 2022. Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal. There were no nonperforming purchased receivables as of June 30, 2023 or December 31, 2022. There was no activity and no balance in the ACL for purchased receivables as of June 30, 2023 or December 31, 2022. The following table summarizes the components of net purchased receivables for the dates indicated:
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Servicing Rights |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing Rights | Servicing Rights Mortgage servicing rights The following table details the activity in the Company's mortgage servicing rights ("MSR") for the six-month periods ended June 30, 2023 and 2022:
(1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. (2) Represents changes due to collection/realization of expected cash flows over time. The following table details information related to our serviced mortgage loan portfolio as of June 30, 2023 and December 31, 2022:
The Company recognized servicing fees of $906,000 and $804,000 during the three-month periods ending June 30, 2023 and 2022, respectively, and $1,811,000 and $1,587,000 during the six-month periods ending June 30, 2023 and 2022, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income. The following table outlines the weighted average key assumptions used in measuring the fair value of MSR as of June 30, 2023 and December 31, 2022:
Key economic assumptions and the sensitivity of the current fair value for MSR to immediate adverse changes in those assumptions at June 30, 2023 and December 31, 2022 were as follows:
The above tables show the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four family Alaska Housing Finance Corporation/FNMA/FHLMC serviced home loan. The above tables reference a 100 basis point and 200 basis point decrease in discount rates. These sensitivities are hypothetical and should be used with caution as the tables above demonstrate the Company’s methodology for estimating the fair value of MSR is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, in these tables, the effects of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made at a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. Commercial servicing rights The commercial servicing rights asset ("CSR") has a carrying value of $2.1 million at June 30, 2023 and December 31, 2022, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets. Total commercial loans serviced for others were $286.6 million and $285.3 million at June 30, 2023 and December 31, 2022, respectively. Key assumptions used in measuring the fair value of the CSR as of June 30, 2023 and December 31, 2022 include a constant prepayment rate of 10.19% and a discount rate of 12.00%.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use ("ROU") assets and lease liabilities. As of June 30, 2023, the Company has operating lease ROU assets of $10.1 million and operating lease liabilities of $10.1 million. As of December 31, 2022, the Company had operating lease ROU assets of $9.9 million and operating lease liabilities of $9.9 million. The Company did not have any agreements that are classified as finance leases as of June 30, 2023 or December 31, 2022. The following table presents additional information about the Company's operating leases:
The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Derivatives swaps related to community banking activities The Company enters into commercial loan interest rate swap agreements with commercial banking customers which are offset with a corresponding swap agreement with a third party financial institution ("counterparty"). The Company has agreements with its counterparties that contain provisions that provide that if the Company fails to maintain its status as a "well-capitalized" institution under regulatory guidelines, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. These agreements also require that the Company and the counterparty collateralize any fair value shortfalls that exceed $250,000 with eligible collateral, which includes cash and securities backed with the full faith and credit of the federal government. Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels. The Company pledged $553,000 as of both June 30, 2023 and December 31, 2022 in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements. The Company had interest rate swaps related to commercial loans with an aggregate notional amount of $221.6 million and $226.2 million at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023, the notional amount of interest rate swaps is made up of 20 variable to fixed rate swaps to commercial loan customers totaling $110.8 million, and 20 fixed to variable rate swaps with a counterparty totaling $110.8 million. Changes in fair value from these 20 interest rate swaps offset each other in the first six months of 2023. The Company recognized $61,000 and $87,000 in fee income related to interest rate swaps in the three-month periods ending June 30, 2023 and 2022, respectively, and $61,000 and $90,000 in fee income related to interest rate swaps in the six-month periods ending June 30, 2023 and 2022, respectively. Interest rate swap income is recorded in other operating income on the Consolidated Statements of Income. None of these interest rate swaps are designated as hedging instruments. The Company has an interest rate swap to hedge the variability in cash flows arising out of its junior subordinated debentures, which is floating rate debt, by swapping the cash flows with an interest rate swap which receives floating and pays fixed. The Company has designated this interest rate swap as a hedging instrument. The interest rate swap effectively fixes the Company's interest payments on the $10.0 million of junior subordinated debentures held under Northrim Statutory Trust 2 at 3.72% through its maturity date. As of June 30, 2023, the floating rate that the dealer pays is equal to the three month LIBOR plus 1.37% which reprices quarterly on the payment date. This rate was 6.92% as of June 30, 2023. Upon the next reprice date, which is September 15, 2023, the floating rate will be based on the three month Secured Overnight Financing Rate, also known as SOFR, as LIBOR rates ceased to be published effective July 1, 2023. The Company pledged $130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of June 30, 2023 and $130,000 as of December 31, 2022. Changes in the fair value of this interest rate swap are reported in other comprehensive income on the Consolidated Statements of Income. The unrealized gain on this interest rate swap was $1.4 million as of June 30, 2023 and the unrealized loss was $1.5 million as of December 31, 2022. Derivatives related to home mortgage banking activities The Company also uses derivatives to hedge the risk of changes in the fair values of interest rate lock commitments. The Company enters into commitments to originate residential mortgage loans at specific rates; the value of these commitments are detailed in the table below as "interest rate lock commitments". The Company also hedges the interest rate risk associated with its residential mortgage loan commitments, which are referred to as "retail interest rate contracts" in the table below. Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates. RML had commitments to originate mortgage loans held for sale totaling $71.1 million and $29.1 million at June 30, 2023 and December 31, 2022, respectively. Changes in the value of RML's interest rate derivatives are recorded in mortgage banking income on the Consolidated Statements of Income. None of these derivatives are designated as hedging instruments. The following table presents the fair value of derivatives not designated as hedging instruments at June 30, 2023 and December 31, 2022:
The following table presents the net gains (losses) of derivatives not designated as hedging instruments for periods indicated below:
Our derivative transactions with counterparties under International Swaps and Derivative Association master agreements include "right of set-off" provisions. "Right of set-off" provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. The following table summarizes the derivatives that have a right of offset as of June 30, 2023 and December 31, 2022:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment securities available for sale and marketable equity securities: Fair values are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Servicing rights: MSR and CSR are measured at fair value on a recurring basis. These assets are classified as Level 3 as quoted prices are not available. In order to determine the fair value of MSR and CSR, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs. Derivative instruments: The fair value of the interest rate lock commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The pull-through rate assumptions are considered Level 3 valuation inputs and are significant to the interest rate lock commitment valuation; as such, the interest rate lock commitment derivatives are classified as Level 3. Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value. Although the Company has determined that the majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2023, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives. As a result, the Company has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy. Commitments to extend credit and standby letters of credit: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. Assets Subject to Nonrecurring Adjustment to Fair Value The Company is also required to measure certain assets such as equity method investments, goodwill, intangible assets, impaired loans, and Other Real Estate Owned ("OREO") at fair value on a nonrecurring basis in accordance with GAAP. Any nonrecurring adjustments to fair value usually result from the write-down of individual assets. The Company uses either in-house evaluations or external appraisals to estimate the fair value of OREO and impaired loans as of each reporting date. In-house appraisals are considered Level 3 inputs and external appraisals are considered Level 2 inputs. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the size of the assets, the location and type of property to be valued and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers and equipment specialists. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Estimated fair values as of the periods indicated are as follows:
The following table sets forth the balances as of the periods indicated of assets and liabilities measured at fair value on a recurring basis:
The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the six-month periods ended June 30, 2023 and 2022:
There were no changes in unrealized gains and losses for the three and six-month periods ending June 30, 2023 and 2022 included in other comprehensive income for recurring Level 3 fair value measurements. As of and for the periods ending June 30, 2023 and December 31, 2022, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis. For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.
The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and six-month periods ended June 30, 2023 and 2022:
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2023 and December 31, 2022:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of June 30, 2023, the Community Banking segment operated 19 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties. Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:
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Basis of Presentation and Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements and corresponding footnotes have been prepared by Northrim BanCorp, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The year-end Consolidated Balance Sheet data was derived from the Company's audited financial statements. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Company owns a 100% interest in Residential Mortgage Holding Company, LLC, the parent company of Residential Mortgage, LLC (collectively "RML") and consolidates their balance sheets and income statement into its financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company determined that it operates in two primary operating segments: Community Banking and Home Mortgage Lending. The Company has evaluated subsequent events and transactions for potential recognition or disclosure. Operating results for the interim period ended June 30, 2023 are not necessarily indicative of the results anticipated for the year ending December 31, 2023. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or total shareholders' equity.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting pronouncements implemented in 2023 In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). The amendments in ASU 2022-02 eliminate the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs which includes an assessment of whether the creditor has granted a concession, an entity must evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, for public business entities, ASU 2022-02 requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost in the vintage disclosures required by paragraph 326-20-50-6. The Company adopted ASU 2022-02 on January 1, 2023. The Company elected to adopt the updated guidance on TDR recognition and measurement prospectively; therefore the guidance is applied to modifications occurring after the date of adoption. The amendments on TDR disclosures and vintage disclosures must be adopted prospectively. The adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial position or results of operations. Accounting pronouncements to be implemented in future periods In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ("ASU 2023-02"). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit ("LIHTC") structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to paragraph ASC 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in this ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method. ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023 and must be applied on either a modified retrospective or a retrospective basis. The Company does not have any equity investments made primarily for the purpose of receiving income tax credits except for LIHTC structures, which it accounts for using the proportional amortization method. The Company does not believe that the adoption of ASU 2023-02 will have a material impact on the Company's consolidated financial statements.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Realized and Unrealized Gains (Losses) on Marketable Equity Securities | The gross realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income were as follows:
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Summary of Available-For-Sale Securities | The following table summarizes the amortized cost, estimated fair value, and the Allowance for Credit Losses ("ACL") of debt securities and the corresponding amounts of gross unrealized gains and losses of available-for-sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities at the periods indicated:
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Summary of Held-To-Maturity Securities |
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Gross Unrealized Losses on Available For Sale Securities and the Fair Value | Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022 were as follows:
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Schedule of Amortized Cost and Fair Value by Contractual Maturity | The amortized cost and estimated fair values of debt securities at June 30, 2023, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Summary of Interest Income On Available-for-Sale Investment Securities | A summary of interest income for the three and six-month periods ending June 30, 2023 and 2022, on available for sale investment securities are as follows:
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Loans and Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Unpaid Principal Balance of Loans by Loan Segment | The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses methodology to assess credit risk, for the periods indicated:
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Allowance for Credit Losses | The activity in the ACL related to loans held for investment for the periods indicated is as follows:
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Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination | The following table shows gross charge-offs by grade and by year of loan origination for the periods indicated:
The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.
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Aging of Contractually Past Due Loans | The following tables present an aging of contractually past due loans as of the periods presented:
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Loans on Nonaccrual Status | The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's Current Expected Credit Losses methodology.
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Financing Receivable, Modified | 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 financing receivable is also presented below:
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three-months ended June 30, 2023:
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Purchased Receivables (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Purchased Receivables | The following table summarizes the components of net purchased receivables for the dates indicated:
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Servicing Rights (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Servicing Assets at Fair Value | The following table details the activity in the Company's mortgage servicing rights ("MSR") for the six-month periods ended June 30, 2023 and 2022:
(1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. (2) Represents changes due to collection/realization of expected cash flows over time. The following table details information related to our serviced mortgage loan portfolio as of June 30, 2023 and December 31, 2022:
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Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | Key economic assumptions and the sensitivity of the current fair value for MSR to immediate adverse changes in those assumptions at June 30, 2023 and December 31, 2022 were as follows:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information about Operating Leases | The following table presents additional information about the Company's operating leases:
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Schedule of Undiscounted Cash Flows for Operating Lease Liabilities | The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table presents the fair value of derivatives not designated as hedging instruments at June 30, 2023 and December 31, 2022:
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Derivative Instruments, Gain (Loss) | The following table presents the net gains (losses) of derivatives not designated as hedging instruments for periods indicated below:
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Offsetting Assets | The following table summarizes the derivatives that have a right of offset as of June 30, 2023 and December 31, 2022:
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Offsetting Liabilities | The following table summarizes the derivatives that have a right of offset as of June 30, 2023 and December 31, 2022:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows:
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Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the balances as of the periods indicated of assets and liabilities measured at fair value on a recurring basis:
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Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs | The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the six-month periods ended June 30, 2023 and 2022:
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Fair Value, Assets Measured on Nonrecurring Basis | As of and for the periods ending June 30, 2023 and December 31, 2022, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis. For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.
The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and six-month periods ended June 30, 2023 and 2022:
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Schedule of Valuation Assumptions | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2023 and December 31, 2022:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:
|
Basis of Presentation and Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
segment
| |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
Investment Securities - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
security
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
security
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Investments, Debt and Equity Securities [Abstract] | |||||
Marketable equity securities | $ 10,604,000 | $ 10,604,000 | $ 10,740,000 | ||
Number of available-for-sale securities in an unrealized loss position without an allowance for credit losses | security | 83 | 83 | |||
Number of held to maturity securities in unrealized loss position without an allowance for credit losses | security | 5 | 5 | |||
Securities pledged for deposits and borrowings | $ 161,700,000 | $ 161,700,000 | $ 59,300,000 | ||
Proceeds from sale of investment securities | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Gross Realized and Unrealized Gains (Losses) on Marketable Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gain (loss) on marketable equity securities | $ (234) | $ (810) | $ (457) | $ (1,232) |
Gain on sale of marketable equity securities, net | 0 | 0 | 0 | 0 |
Total | $ (234) | $ (810) | $ (457) | $ (1,232) |
Investment Securities - Summary of Interest Income on Available-for-Sale Investment Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Total taxable interest income | $ 3,991 | $ 1,921 | $ 7,921 | $ 3,052 |
Total tax-exempt interest income | 5 | 5 | 9 | 9 |
Total interest income | 3,996 | 1,926 | 7,930 | 3,061 |
U.S. Treasury and government sponsored entities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total taxable interest income | 2,835 | 1,432 | 5,630 | 2,238 |
Other | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total taxable interest income | 1,156 | 489 | 2,291 | 814 |
Municipal securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total tax-exempt interest income | $ 5 | $ 5 | $ 9 | $ 9 |
Loans and Allowance for Credit Losses - Loan Modifications not Classified as TDRs (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
loan
|
---|---|---|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 4,456 | $ 5,100 |
COVID-19 Loan Modifications | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 999 | |
Number of modifications | loan | 0 | 1 |
Interest Only | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 0 | |
Interest Only | COVID-19 Loan Modifications | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 999 | |
Number of modifications | loan | 1 | |
Full Payment Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 1,988 | |
Full Payment Deferral | COVID-19 Loan Modifications | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Portfolio loans | $ 0 | |
Number of modifications | loan | 0 |
Purchased Receivables - Narrative (Details) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023
USD ($)
purchased_receivable
|
Dec. 31, 2022
USD ($)
purchased_receivable
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term of purchased receivables (less than) | 1 year | |
Number of purchased receivables past due | purchased_receivable | 0 | 0 |
Nonperforming purchased receivables | $ 0 | $ 0 |
Purchased Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of restructured purchased receivables | purchased_receivable | 0 | 0 |
Activity in the ACL | $ 0 | $ 0 |
ACL for purchased receivables | $ 0 | $ 0 |
Purchased Receivables - Summary of Components of Net Purchased Receivables (Details) - USD ($) |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased receivables | $ 19,994,000 | |
Total | $ 21,866,000 | 19,994,000 |
Purchased Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased receivables | 21,866,000 | |
Allowance for credit losses - purchased receivables | 0 | $ 0 |
Total | $ 21,866,000 |
Servicing Rights - Mortgage Servicing Rights (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 |
|
Changes in fair value: | |||||
Balance of mortgage loans serviced for others | $ 921,616 | $ 921,616 | $ 898,840 | ||
MSR as a percentage of serviced loans | 1.98% | 1.98% | 2.07% | ||
Mortgage servicing rights | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance, beginning of period | $ 18,303 | $ 15,422 | $ 18,635 | $ 13,724 | |
Additions for new MSR capitalized | 519 | 1,128 | 982 | 2,115 | |
Changes in fair value: | |||||
Due to changes in model inputs of assumptions | (3) | (225) | (215) | 967 | |
Other | (571) | (24) | (1,154) | (505) | |
Balance, end of period | 18,248 | $ 16,301 | 18,248 | $ 16,301 | |
Balance of mortgage loans serviced for others | $ 921,616 | $ 921,616 | $ 898,840 | ||
MSR as a percentage of serviced loans | 1.98% | 1.98% | 2.07% |
Servicing Rights - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Commercial servicing rights | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Servicing rights | $ 2,139 | $ 2,139 | $ 2,129 | ||
Commercial loans serviced for a third party | 286,600 | $ 286,600 | $ 285,300 | ||
Constant prepayment rate (percent) | 10.19% | 10.19% | |||
Discount rate (percent) | 12.00% | 12.00% | |||
Other Noninterest Income | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Mortgage servicing fees | $ 906 | $ 804 | $ 1,811 | $ 1,587 |
Servicing Rights - Value Assumptions (Details) - Mortgage servicing rights |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Servicing Assets at Fair Value [Line Items] | ||
Constant prepayment rate (percent) | 7.70% | 6.64% |
Discount rate (percent) | 10.97% | 11.25% |
Leases - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 10,088 | $ 9,868 |
Operating lease liabilities | $ 10,087 | $ 9,865 |
Leases - Summary of Additional Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Lease Cost | ||||
Operating lease cost | $ 702 | $ 672 | $ 1,401 | $ 1,353 |
Short term lease cost | 46 | 5 | 79 | 17 |
Total lease cost | $ 748 | $ 677 | 1,480 | 1,370 |
Other information | ||||
Operating leases - operating cash flows | $ 1,307 | $ 1,278 | ||
Weighted average lease term - operating leases, in years | 10 years 5 months 19 days | 10 years 9 months 14 days | 10 years 5 months 19 days | 10 years 9 months 14 days |
Weighted average discount rate - operating leases (percent) | 3.49% | 3.26% | 3.49% | 3.26% |
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
2023 (Six months) | $ 1,321 | |
2024 | 2,478 | |
2025 | 2,271 | |
2026 | 1,130 | |
2027 | 731 | |
Thereafter | 4,418 | |
Total minimum lease payments | 12,349 | |
Less: amount of lease payment representing interest | (2,262) | |
Present value of future minimum lease payments | $ 10,087 | $ 9,865 |
Derivatives - Schedule of Derivative Gain (Loss) (Details) - Not Designated as Hedging Instrument - Mortgage banking income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging | $ 420 | $ 1,220 | $ 526 | $ 3,300 |
Retail interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging | 291 | 391 | 168 | 2,951 |
Interest rate lock commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging | $ 129 | $ 829 | $ 358 | $ 349 |
Fair Value Measurements - Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually measured for credit losses | $ 0 | $ 0 |
Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually measured for credit losses | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually measured for credit losses | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans individually measured for credit losses | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements - Schedule of Gains and Losses Resulting from Nonrecurring Fair Value Adjustments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loss from nonrecurring measurements | $ (27) | $ (89) | $ 0 | $ 0 |
Loans individually measured for credit losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loss from nonrecurring measurements | $ (27) | $ (89) | $ 0 | $ 0 |
Segment Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
bank
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
segment
bank
|
Jun. 30, 2022
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||||||
Number of operating segments | segment | 2 | |||||||
Interest income | $ 31,820 | $ 22,992 | $ 61,615 | $ 43,050 | ||||
Interest expense | 6,678 | 780 | 11,441 | 1,534 | ||||
Net Interest Income | 25,142 | 22,212 | 50,174 | 41,516 | ||||
Provision for credit losses | 1,407 | 463 | 1,767 | 313 | ||||
Other operating income | 6,980 | 7,807 | 11,888 | 18,630 | ||||
Other operating expense | 23,782 | 23,238 | 47,291 | 44,339 | ||||
Income Before Provision for Income Taxes | 6,933 | 6,318 | 13,004 | 15,494 | ||||
Provision for income taxes | 1,356 | 1,523 | 2,597 | 3,473 | ||||
Net Income | 5,577 | $ 4,830 | $ 8,595 | $ 10,125 | 4,795 | $ 7,226 | 10,407 | 12,021 |
Total assets | 2,638,207 | 2,674,318 | 2,638,207 | |||||
Loans held for sale | $ 60,759 | 27,538 | $ 60,759 | |||||
Community Banking | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of branches | bank | 19 | 19 | ||||||
Interest income | $ 28,675 | 22,369 | $ 58,168 | 42,019 | ||||
Interest expense | 5,975 | 766 | 10,716 | 1,507 | ||||
Net Interest Income | 22,700 | 21,603 | 47,452 | 40,512 | ||||
Provision for credit losses | 1,407 | 463 | 1,767 | 313 | ||||
Other operating income | 3,067 | 1,907 | 5,967 | 5,748 | ||||
Other operating expense | 17,805 | 16,415 | 35,222 | 31,246 | ||||
Income Before Provision for Income Taxes | 6,555 | 6,632 | 16,430 | 14,701 | ||||
Provision for income taxes | 1,192 | 1,605 | 3,507 | 3,246 | ||||
Net Income | 5,363 | 5,027 | 12,923 | 11,455 | ||||
Total assets | 2,396,571 | 2,550,578 | 2,396,571 | |||||
Loans held for sale | 0 | 0 | 0 | |||||
Home Mortgage Lending | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Interest income | 3,145 | 623 | 3,447 | 1,031 | ||||
Interest expense | 703 | 14 | 725 | 27 | ||||
Net Interest Income | 2,442 | 609 | 2,722 | 1,004 | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Other operating income | 3,913 | 5,900 | 5,921 | 12,882 | ||||
Other operating expense | 5,977 | 6,823 | 12,069 | 13,093 | ||||
Income Before Provision for Income Taxes | 378 | (314) | (3,426) | 793 | ||||
Provision for income taxes | 164 | (82) | (910) | 227 | ||||
Net Income | 214 | $ (232) | (2,516) | $ 566 | ||||
Total assets | 241,636 | 123,740 | 241,636 | |||||
Loans held for sale | $ 60,759 | $ 27,538 | $ 60,759 |
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