QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Large Accelerated Filer | ☐ | ☒ | |||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
Emerging growth company |
March 31, 2024 | December 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest earning time deposits | |||||||||||
Investment securities, available for sale | |||||||||||
Investment securities, held to maturity (fair value of $ | |||||||||||
Loans held for sale | |||||||||||
Loans, net of allowance for credit losses of $ | |||||||||||
Premises and equipment, net | |||||||||||
Federal Home Loan Bank stock | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Interest receivable | |||||||||||
Cash value of life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non–interest bearing | $ | $ | |||||||||
Interest bearing | |||||||||||
Total deposits | |||||||||||
Borrowings | |||||||||||
Subordinated notes | |||||||||||
Junior subordinated debentures issued to capital trusts | |||||||||||
Interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock, Authorized, | |||||||||||
Common stock, no par value, Authorized | |||||||||||
Issued and Outstanding | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest Income | |||||||||||
Loans receivable | $ | $ | |||||||||
Investment securities – taxable | |||||||||||
Investment securities – tax exempt | |||||||||||
Other | |||||||||||
Total interest income | |||||||||||
Interest Expense | |||||||||||
Deposits | |||||||||||
Borrowed funds | |||||||||||
Subordinated notes | |||||||||||
Junior subordinated debentures issued to capital trusts | |||||||||||
Total interest expense | |||||||||||
Net Interest Income | |||||||||||
Credit loss expense | |||||||||||
Net Interest Income after Credit Loss Expense | |||||||||||
Non–interest Income | |||||||||||
Service charges on deposit accounts | |||||||||||
Wire transfer fees | |||||||||||
Interchange fees | |||||||||||
Fiduciary activities | |||||||||||
Gain (loss) on sale of investment securities | ( | ||||||||||
Gain on sale of mortgage loans | |||||||||||
Mortgage servicing income, net | |||||||||||
Increase in cash value of bank owned life insurance | |||||||||||
Other income | |||||||||||
Total non–interest income | |||||||||||
Non–interest Expense | |||||||||||
Salaries and employee benefits | |||||||||||
Net occupancy expenses | |||||||||||
Data processing | |||||||||||
Professional fees | |||||||||||
Outside services and consultants | |||||||||||
Loan expense | |||||||||||
FDIC insurance expense | |||||||||||
Core deposit intangible amortization | |||||||||||
Other losses | |||||||||||
Other expense | |||||||||||
Total non–interest expense | |||||||||||
Income Before Income Taxes | |||||||||||
Income tax expense | |||||||||||
Net Income | $ | $ | |||||||||
Basic Earnings Per Share | $ | $ | |||||||||
Diluted Earnings Per Share |
Three Months Ended | |||||||||||
March 31 | |||||||||||
2024 | 2023 | ||||||||||
Net Income | $ | $ | |||||||||
Other Comprehensive Income (Loss) | |||||||||||
Change in fair value of derivative instruments: | |||||||||||
Change in fair value of derivative instruments for the period | ( | ||||||||||
Income tax effect | |||||||||||
Changes from derivative instruments | ( | ||||||||||
Change in securities: | |||||||||||
Unrealized gain (loss) for the period on available for sale securities | ( | ||||||||||
Accretion from transfer of securities from available for sale to held to maturity securities | ( | ( | |||||||||
Reclassification adjustment for securities losses realized in income | |||||||||||
Income tax effect | ( | ||||||||||
Unrealized gains (losses) on securities | ( | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | ( | ||||||||||
Comprehensive Income | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||
Balances, January 1, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of unearned compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net settlement of share awards | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock retirement plans | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Cash dividends on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances, March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Balances, January 1, 2024 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Amortization of unearned compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net settlement of share awards | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Cash dividends on common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances, March 31, 2024 | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended | |||||||||||
March 31 | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Items not requiring (providing) cash | |||||||||||
Credit loss expense (recovery) | |||||||||||
Depreciation and amortization | |||||||||||
Share based compensation | |||||||||||
Amortization of mortgage servicing rights | |||||||||||
Premium amortization on securities, net | |||||||||||
Loss on sale of investment securities | |||||||||||
Gain on sale of mortgage loans | ( | ( | |||||||||
Proceeds from sales of loans | |||||||||||
Loans originated for sale | ( | ( | |||||||||
Gain on cash value life insurance | ( | ( | |||||||||
Gain on sale of other real estate owned | ( | ( | |||||||||
Net change in: | |||||||||||
Interest receivable | ( | ( | |||||||||
Interest payable | ( | ||||||||||
Other assets | ( | ||||||||||
Other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of securities available for sale | ( | ||||||||||
Proceeds from sales of securities available for sale | |||||||||||
Proceeds from maturities, calls and principal repayments of securities available for sale | |||||||||||
Purchases of securities held to maturity | ( | ||||||||||
Proceeds from maturities, calls and principal repayments of securities held to maturity | |||||||||||
Net change in interest earning time deposits | ( | ||||||||||
Purchase of FHLB stock | ( | ( | |||||||||
Purchase of loans | ( | ( | |||||||||
Net change in loans | ( | ( | |||||||||
Proceeds on the sale of OREO and repossessed assets | |||||||||||
Premises and equipment expenditures | ( | ( | |||||||||
Proceeds from bank owned life insurance | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Net change in deposits | ( | ( | |||||||||
Proceeds from borrowings | |||||||||||
Repayment of borrowings | ( | ( | |||||||||
Net change in repurchase agreements | |||||||||||
Net settlement of share awards | ( | ( | |||||||||
Dividends paid on common stock | ( | ( | |||||||||
Net cash provided by financing activities | ( | ||||||||||
Net Change in Cash and Cash Equivalents | ( | ||||||||||
Cash and Cash Equivalents, Beginning of Period | |||||||||||
Cash and Cash Equivalents, End of Period | $ | $ | |||||||||
Additional Supplemental Information | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid |
Transfer of loans to other real estate and repossessed assets | |||||||||||
Cash dividends declared, not paid |
Three Months Ended | |||||||||||
March 31 | |||||||||||
2024 | 2023 | ||||||||||
Basic earnings per share | |||||||||||
Net income | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | |||||||||||
Net income | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock | |||||||||||
Stock options | |||||||||||
Weighted average common shares outstanding | |||||||||||
Diluted earnings per share | $ | $ |
March 31, 2024 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | ( | $ | ||||||||||||||||||
State and municipal | ( | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ||||||||||||||||||||||
Federal agency mortgage-backed pools | ( | ||||||||||||||||||||||
Corporate notes | ( | ||||||||||||||||||||||
Total available for sale investment securities | $ | $ | $ | ( | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Allowance for Credit Losses | Net Carrying Amount | ||||||||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
State and municipal | ( | ( | |||||||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||||||||
Federal agency mortgage-backed pools | ( | ||||||||||||||||||||||||||||||||||
Private labeled mortgage-backed pools | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | |||||||||||||||||||||||||||||||||
Total held to maturity investment securities | $ | $ | $ | ( | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | ( | $ | ||||||||||||||||||
State and municipal | ( | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ||||||||||||||||||||||
Federal agency mortgage-backed pools | ( | ||||||||||||||||||||||
Corporate notes | ( | ||||||||||||||||||||||
Total available for sale investment securities | $ | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Allowance for Credit Losses | Net Carrying Amount | ||||||||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
State and municipal | ( | ( | |||||||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||||||||
Federal agency mortgage-backed pools | ( | ||||||||||||||||||||||||||||||||||
Private labeled mortgage-backed pools | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | |||||||||||||||||||||||||||||||||
Total held to maturity investment securities | $ | $ | $ | ( | $ | $ | ( | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
Within one year | $ | $ | $ | $ | |||||||||||||||||||
One to five years | |||||||||||||||||||||||
Five to ten years | |||||||||||||||||||||||
After ten years | |||||||||||||||||||||||
Federal agency collateralized mortgage obligations | |||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||
Total available for sale investment securities | $ | $ | $ | $ | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||
Within one year | $ | $ | $ | $ | |||||||||||||||||||
One to five years | |||||||||||||||||||||||
Five to ten years | |||||||||||||||||||||||
After ten years | |||||||||||||||||||||||
Federal agency collateralized mortgage obligations | |||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||
Private labeled mortgage–backed pools | |||||||||||||||||||||||
Total held to maturity investment securities | $ | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
State and municipal | ( | ( | ( | ||||||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||
Federal agency mortgage–backed pools | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | |||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
State and municipal | ( | ( | ( | ||||||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||
Federal agency mortgage–backed pools | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | |||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Three Months Ended | |||||||||||
March 31 | |||||||||||
2024 | 2023 | ||||||||||
Sales of securities available for sale | |||||||||||
Proceeds | $ | $ | |||||||||
Gross gains | |||||||||||
Gross losses | ( |
Portfolio Segment | Class of Financing Receivable | |||||||
Commercial | Owner occupied real estate | |||||||
Non-owner occupied real estate | ||||||||
Residential spec homes | ||||||||
Development & spec land | ||||||||
Commercial and industrial | ||||||||
Real estate | Residential mortgage | |||||||
Residential construction | ||||||||
Mortgage warehouse | Mortgage warehouse | |||||||
Consumer | Installment | |||||||
Indirect auto | ||||||||
Home equity |
March 31, 2024 | December 31, 2023 | ||||||||||
Commercial | |||||||||||
Owner occupied real estate | $ | $ | |||||||||
Non–owner occupied real estate | |||||||||||
Residential spec homes | |||||||||||
Development & spec land | |||||||||||
Commercial and industrial | |||||||||||
Total commercial | |||||||||||
Real estate | |||||||||||
Residential mortgage | |||||||||||
Residential construction | |||||||||||
Mortgage warehouse | |||||||||||
Total real estate | |||||||||||
Consumer | |||||||||||
Installment | |||||||||||
Indirect auto | |||||||||||
Home equity | |||||||||||
Total consumer | |||||||||||
Total loans | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Net loans | $ | $ |
March 31, 2024 | |||||||||||||||||
Non–accrual | Loans Past Due Over 90 Days Still Accruing | Non–accruing Loans with no Allowance for Credit Losses | |||||||||||||||
Commercial | |||||||||||||||||
Owner occupied real estate | $ | $ | $ | ||||||||||||||
Non–owner occupied real estate | |||||||||||||||||
Residential spec homes | |||||||||||||||||
Development & spec land | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
Total commercial | |||||||||||||||||
Real estate | |||||||||||||||||
Residential mortgage | |||||||||||||||||
Residential construction | |||||||||||||||||
Mortgage warehouse | |||||||||||||||||
Total real estate | |||||||||||||||||
Consumer | |||||||||||||||||
Installment | |||||||||||||||||
Indirect auto | |||||||||||||||||
Home equity | |||||||||||||||||
Total consumer | |||||||||||||||||
Total | $ | $ | $ |
December 31, 2023 | |||||||||||||||||
Non–accrual | Loans Past Due Over 90 Days Still Accruing | Non–accruing Loans with no Allowance for Credit Losses | |||||||||||||||
Commercial | |||||||||||||||||
Owner occupied real estate | $ | $ | $ | ||||||||||||||
Non–owner occupied real estate | |||||||||||||||||
Residential spec homes | |||||||||||||||||
Development & spec land | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
Total commercial | |||||||||||||||||
Real estate | |||||||||||||||||
Residential mortgage | |||||||||||||||||
Residential construction | |||||||||||||||||
Mortgage warehouse | |||||||||||||||||
Total real estate | |||||||||||||||||
Consumer | |||||||||||||||||
Installment | |||||||||||||||||
Indirect auto | |||||||||||||||||
Home equity | |||||||||||||||||
Total consumer | |||||||||||||||||
Total | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Current | 30–59 Days Past Due | 60–89 Days Past Due | 90 Days or Greater Past Due | Total Past Due Loans | Total Loans | ||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Owner occupied real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non–owner occupied real estate | |||||||||||||||||||||||||||||||||||
Residential spec homes | |||||||||||||||||||||||||||||||||||
Development & spec land | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Residential construction | |||||||||||||||||||||||||||||||||||
Mortgage warehouse | |||||||||||||||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||||||||
Indirect auto | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Total consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Current | 30–59 Days Past Due | 60–89 Days Past Due | 90 Days or Greater Past Due | Total Past Due Loans | Total | ||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Owner occupied real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non–owner occupied real estate | |||||||||||||||||||||||||||||||||||
Residential spec homes | |||||||||||||||||||||||||||||||||||
Development & spec land | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Residential construction | |||||||||||||||||||||||||||||||||||
Mortgage warehouse | |||||||||||||||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||||||||
Indirect auto | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Total consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||
Real Estate | Accounts Receivable/Equipment | Other | Total | ACL Allocation | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Owner occupied real estate | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Non–owner occupied real estate | |||||||||||||||||||||||||||||
Development & spec land | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||||||||
Total collateral dependent loans | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||
Real Estate | Accounts Receivable/Equipment | Other | Total | ACL Allocation | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Owner occupied real estate | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Non–owner occupied real estate | |||||||||||||||||||||||||||||
Residential spec homes | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||||||||
Total collateral dependent loans | $ | $ | $ | $ | $ |
March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total owner occupied real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–owner occupied real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non–owner occupied real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential spec homes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential spec homes | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Development & spec land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total development & spec land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial & industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total installment | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect auto | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total indirect auto | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge–offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total owner occupied real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–owner occupied real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non–owner occupied real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential spec homes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential spec homes | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Development & spec land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total development & spec land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial & industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Term Loans | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total installment | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect auto | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total indirect auto | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Non–performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs during period | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehouse | Consumer | Total | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Credit loss expense (recovery) | ( | |||||||||||||||||||||||||||||||
PCD loan charge–offs | ||||||||||||||||||||||||||||||||
Charge–offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Commercial | Real Estate | Mortgage Warehouse | Consumer | Total | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Credit loss expense (recovery) | ( | ( | ( | ( | ||||||||||||||||||||||||||||
PCD loan charge–offs | ( | ( | ||||||||||||||||||||||||||||||
Charge–offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ |
Three Months Ended | |||||||||||
March 31, | March 31, | ||||||||||
2024 | 2023 | ||||||||||
Mortgage servicing rights | |||||||||||
Balance, beginning of period | $ | $ | |||||||||
Servicing rights capitalized | |||||||||||
Amortization of servicing rights | ( | ( | |||||||||
Balance, end of period | |||||||||||
Impairment allowance | |||||||||||
Balance, beginning of period | |||||||||||
Additions | |||||||||||
Reductions | |||||||||||
Balance, end of period | |||||||||||
Mortgage servicing rights, net | $ | $ | |||||||||
Fair value, beginning of period | $ | $ | |||||||||
Fair value, end of period |
March 31, 2024 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | |||||||||||||||||||||||||
Repurchase Agreements and repurchase-to-maturity transactions | |||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||||||||
Private labeled mortgage–backed pools | |||||||||||||||||||||||||||||
Total borrowings | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | |||||||||||||||||||||||||
Repurchase Agreements and repurchase-to-maturity transactions | |||||||||||||||||||||||||||||
Federal agency collateralized mortgage obligations | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||||||||
Private labeled mortgage–backed pools | |||||||||||||||||||||||||||||
Total borrowings | $ | $ | $ | $ | $ |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||
March 31, 2024 | March 31, 2024 | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Interest rate contracts – fair value hedges | |||||||||||||||||||||||
Mortgage loan contracts | |||||||||||||||||||||||
Commitments to originate mortgage loans | |||||||||||||||||||||||
Total derivatives not designated as hedging instruments | |||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Interest rate contracts – fair value hedges | |||||||||||||||||||||||
Mortgage loan contracts | |||||||||||||||||||||||
Commitments to originate mortgage loans | |||||||||||||||||||||||
Total derivatives not designated as hedging instruments | |||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative | |||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Derivatives in cash flow hedging relationship | |||||||||||
Interest rate contracts | $ | $ | ( |
Location of gain (loss) recognized on derivative | Amount of Gain (Loss) Recognized on Derivative | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||
Derivative designated as hedging instruments | |||||||||||||||||
Interest rate contracts – cash flow hedges | Interest expense – Borrowings | $ | $ | ||||||||||||||
Total | $ | $ |
Location of gain (loss) recognized on derivative | Amount of Gain (Loss) Recognized on Derivative | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Interest rate contracts – fair value hedge | Interest income – loans receivable | $ | $ | ||||||||||||||
Interest rate contracts – fair value hedge | Interest income – investment securities | ||||||||||||||||
Mortgage loan contracts | Non–interest income – Gain on sale of loans | ( | |||||||||||||||
Commitments to originate mortgage loans | Non–interest income – Gain on sale of loans | ( | ( | ||||||||||||||
Total | $ | $ |
March 31, 2024 | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | $ | |||||||||||||||||||
State and municipal | |||||||||||||||||||||||
Federal agency collateralized mortgage obligations | |||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||
Total available for sale securities | |||||||||||||||||||||||
Interest rate swap agreements asset | |||||||||||||||||||||||
Commitments to originate mortgage loans | |||||||||||||||||||||||
Mortgage loan contracts | |||||||||||||||||||||||
Interest rate swap agreements liability | ( | ( | |||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | $ | $ | $ | |||||||||||||||||||
State and municipal | |||||||||||||||||||||||
Federal agency collateralized mortgage obligations | |||||||||||||||||||||||
Federal agency mortgage–backed pools | |||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||
Total available for sale securities | |||||||||||||||||||||||
Interest rate swap agreements asset | |||||||||||||||||||||||
Commitments to originate mortgage loans | |||||||||||||||||||||||
Mortgage loan contracts | |||||||||||||||||||||||
Interest rate swap agreements liability | ( | ( | |||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Collateral dependent loans | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Collateral dependent loans | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
Collateral dependent loans | $ | ||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
Collateral dependent loans | $ | ||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | |||||||||||||||||||
Interest–earning time deposits | |||||||||||||||||||||||
Investment securities, held to maturity | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||
Stock in FHLB | |||||||||||||||||||||||
Interest receivable | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Non–interest bearing deposits | $ | $ | $ | $ | |||||||||||||||||||
Interest bearing deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Subordinated notes | |||||||||||||||||||||||
Junior subordinated debentures issued to capital trusts | |||||||||||||||||||||||
Interest payable |
December 31, 2023 | |||||||||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | |||||||||||||||||||
Interest–earning time deposits | |||||||||||||||||||||||
Investment securities, held to maturity | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||
Stock in FHLB | |||||||||||||||||||||||
Interest receivable | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Non–interest bearing deposits | $ | $ | $ | $ | |||||||||||||||||||
Interest bearing deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Subordinated notes | |||||||||||||||||||||||
Junior subordinated debentures issued to capital trusts | |||||||||||||||||||||||
Interest payable |
March 31, 2024 | December 31, 2023 | ||||||||||
Unrealized gain (loss) on securities available for sale, net of tax | $ | ( | $ | ( | |||||||
Unamortized gain (loss) on securities held to maturity, previously transferred from AFS, net of tax | |||||||||||
Total accumulated other comprehensive income (loss) | $ | ( | $ | ( |
Actual | Required for Capital Adequacy Purposes(1) | Required For Capital Adequacy Purposes with Capital Buffer(1) | Well Capitalized Under Prompt Corrective Action Provisions(1) | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Total capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | % | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Total capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | % | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk–weighted assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets)(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Bank | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
(1) As defined by regulatory agencies |
For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
Net Interest Income and Net Interest Margin | 2024 | 2023 | 2023 | |||||||||||||||||
Net interest income | $ | 43,288 | $ | 42,257 | $ | 45,237 | ||||||||||||||
Net interest margin | 2.50 | % | 2.43 | % | 2.67 | % | ||||||||||||||
Adjusted net interest margin (See “Use of Non–GAAP Financial Measures”) | 2.50 | % | 2.42 | % | 2.65 | % |
For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
Asset Yields and Funding Costs | 2024 | 2023 | 2023 | |||||||||||||||||
Interest earning assets | 4.82 | % | 4.69 | % | 4.17 | % | ||||||||||||||
Interest bearing liabilities | 2.84 | % | 2.74 | % | 1.85 | % |
For the Three Months Ended | ||||||||||||||||||||
Non–interest Income and Mortgage Banking Income | March 31, | December 31, | March 31, | |||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||||
Total non–interest income | $ | 9,929 | $ | (20,449) | $ | 9,620 | ||||||||||||||
Gain on sale of mortgage loans | 626 | 951 | 785 | |||||||||||||||||
Mortgage servicing income net of impairment or recovery | 439 | 724 | 713 |
For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
Non–interest Expense | 2024 | 2023 | 2023 | |||||||||||||||||
Total non–interest expense | $ | 37,107 | $ | 39,330 | $ | 34,524 | ||||||||||||||
Annualized non–interest expense to average assets | 1.90 | % | 1.98 | % | 1.79 | % |
At or for the Three Months Ended | ||||||||||||||||||||
Credit Quality | March 31, | December 31, | March 31, | |||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||||
Allowance for credit losses to total loans | 1.09 | % | 1.13 | % | 1.17 | % | ||||||||||||||
Non–performing loans to total loans | 0.41 | % | 0.46 | % | 0.47 | % | ||||||||||||||
Percent of net charge–offs to average loans outstanding for the period | 0.01 | % | 0.02 | % | 0.01 | % |
Allowance for | March 31, | Net Reserve | December 31, | |||||||||||||||||
Credit Losses | 2024 | 1Q24 | 2023 | |||||||||||||||||
Commercial | $ | 30,514 | $ | 778 | $ | 29,736 | ||||||||||||||
Retail Mortgage | 2,655 | 152 | 2,503 | |||||||||||||||||
Warehouse | 659 | 178 | 481 | |||||||||||||||||
Consumer | 16,559 | (750) | 17,309 | |||||||||||||||||
Allowance for Credit Losses (“ACL”) | $ | 50,387 | 358 | $ | 50,029 | |||||||||||||||
ACL/Total Loans | 1.09 | % | 1.13 | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 71,943 | $ | 62,926 | $ | 72,938 | $ | 64,377 | |||||||||||||||
State and municipal | 352,738 | 299,255 | 353,299 | 304,030 | |||||||||||||||||||
Federal agency collateralized mortgage obligations | 3,819 | 3,450 | 3,931 | 3,580 | |||||||||||||||||||
Federal agency mortgage–backed pools | 157,812 | 133,142 | 161,130 | 137,297 | |||||||||||||||||||
Corporate notes | 42,119 | 36,546 | 43,317 | 37,967 | |||||||||||||||||||
Total available for sale investment securities | $ | 628,431 | $ | 535,319 | $ | 634,615 | $ | 547,251 | |||||||||||||||
Held to maturity | |||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 284,236 | $ | 241,037 | $ | 287,259 | $ | 245,960 | |||||||||||||||
State and municipal | 1,078,388 | 911,630 | 1,088,499 | 939,361 | |||||||||||||||||||
Federal agency collateralized mortgage obligations | 49,913 | 41,825 | 51,325 | 43,479 | |||||||||||||||||||
Federal agency mortgage–backed pools | 319,181 | 268,852 | 323,649 | 275,028 | |||||||||||||||||||
Private labeled mortgage–backed pools | 31,712 | 27,182 | 32,329 | 27,734 | |||||||||||||||||||
Corporate notes | 162,453 | 137,327 | 162,734 | 137,196 | |||||||||||||||||||
Total held to maturity investment securities | $ | 1,925,883 | $ | 1,627,853 | $ | 1,945,795 | $ | 1,668,758 |
Average Balance Sheets | ||||||||||||||||||||||||||||||||||||||
(Dollar Amount in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | |||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||||||||||||||||
Federal funds sold | $ | 322,058 | $ | 4,387 | 5.48 | % | $ | 7,767 | $ | 83 | 4.33 | % | ||||||||||||||||||||||||||
Interest earning deposits | 9,025 | 110 | 4.90 | % | 8,780 | 70 | 3.23 | % | ||||||||||||||||||||||||||||||
Investment securities – taxable | 1,364,195 | 7,362 | 2.17 | % | 1,727,369 | 8,725 | 2.05 | % | ||||||||||||||||||||||||||||||
Investment securities – non–taxable (1) | 1,149,957 | 6,451 | 2.86 | % | 1,314,129 | 7,556 | 2.95 | % | ||||||||||||||||||||||||||||||
Loans receivable (2) (3) | 4,448,324 | 66,954 | 6.09 | % | 4,143,221 | 55,364 | 5.44 | % | ||||||||||||||||||||||||||||||
Total interest earning assets | 7,293,559 | 85,264 | 4.82 | % | 7,201,266 | 71,798 | 4.17 | % | ||||||||||||||||||||||||||||||
Non–interest earning assets | ||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 105,795 | 103,563 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (49,960) | (50,337) | ||||||||||||||||||||||||||||||||||||
Other assets | 486,652 | 576,614 | ||||||||||||||||||||||||||||||||||||
Total average assets | $ | 7,836,046 | $ | 7,831,106 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Interest bearing deposits | $ | 4,500,148 | $ | 27,990 | 2.50 | % | $ | 4,502,199 | $ | 14,819 | 1.33 | % | ||||||||||||||||||||||||||
Borrowings | 1,200,728 | 10,904 | 3.65 | % | 1,053,317 | 9,268 | 3.57 | % | ||||||||||||||||||||||||||||||
Repurchase agreements | 138,052 | 1,026 | 2.99 | % | 138,749 | 503 | 1.47 | % | ||||||||||||||||||||||||||||||
Subordinated notes | 55,558 | 831 | 6.02 | % | 58,910 | 880 | 6.06 | % | ||||||||||||||||||||||||||||||
Junior subordinated debentures issued to capital trusts | 57,279 | 1,225 | 8.60 | % | 57,048 | 1,091 | 7.76 | % | ||||||||||||||||||||||||||||||
Total interest bearing liabilities | 5,951,765 | 41,976 | 2.84 | % | 5,810,223 | 26,561 | 1.85 | % | ||||||||||||||||||||||||||||||
Non–interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 1,077,183 | 1,255,697 | ||||||||||||||||||||||||||||||||||||
Accrued interest payable and other liabilities | 82,015 | 71,714 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 725,083 | 693,472 | ||||||||||||||||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 7,836,046 | $ | 7,831,106 | ||||||||||||||||||||||||||||||||||
Net interest income/spread | $ | 43,288 | 1.98 | % | $ | 45,237 | 2.32 | % | ||||||||||||||||||||||||||||||
Net interest income as a percent of average interest earning assets (1) | 2.50 | % | 2.67 | % | ||||||||||||||||||||||||||||||||||
(1) | Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis. | |||||||||||||||||||||||||||||||||||||
(2) | Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate. | |||||||||||||||||||||||||||||||||||||
(3) | Non–accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis. |
Three Months Ended March 31, 2024 vs. Three Months Ended March 31, 2023 | |||||||||||||||||
Total Change | Change Due to Volume | Change Due to Rate | |||||||||||||||
Interest Income | |||||||||||||||||
Federal funds sold | $ | 4,304 | $ | 17,196 | $ | (12,892) | |||||||||||
Interest earning deposits | 40 | 8 | 32 | ||||||||||||||
Investment securities – taxable | (1,363) | (7,785) | 6,422 | ||||||||||||||
Investment securities – non–taxable | (1,105) | (4,721) | 3,616 | ||||||||||||||
Loans receivable | 11,590 | 17,359 | (5,769) | ||||||||||||||
Total interest income | $ | 13,466 | $ | 22,057 | $ | (8,591) | |||||||||||
Interest Expense | |||||||||||||||||
Interest bearing deposits | $ | 13,171 | $ | (27) | $ | 13,198 | |||||||||||
Borrowings | 1,636 | 5,366 | (3,730) | ||||||||||||||
Repurchase agreements | 523 | (10) | 533 | ||||||||||||||
Subordinated notes | (49) | (202) | 153 | ||||||||||||||
Junior subordinated debentures issued to capital trusts | 134 | 18 | 116 | ||||||||||||||
Total interest expense | 15,415 | 5,145 | 10,270 | ||||||||||||||
Net Interest Income | $ | (1,949) | $ | 16,912 | $ | (18,861) |
Three Months Ended | |||||||||||||||||||||||
March 31, | Amount | Percent | |||||||||||||||||||||
2024 | 2023 | Change | Change | ||||||||||||||||||||
Non–interest Income | |||||||||||||||||||||||
Service charges on deposit accounts | $ | 3,214 | $ | 3,028 | $ | 186 | 6.1 | % | |||||||||||||||
Wire transfer fees | 101 | 109 | (8) | (7.3) | % | ||||||||||||||||||
Interchange fees | 3,109 | 2,867 | 242 | 8.4 | % | ||||||||||||||||||
Fiduciary activities | 1,315 | 1,275 | 40 | 3.1 | % | ||||||||||||||||||
Gain on sale of investment securities | — | (500) | 500 | (100.0) | % | ||||||||||||||||||
Gain on sale of mortgage loans | 626 | 785 | (159) | (20.3) | % | ||||||||||||||||||
Mortgage servicing net of impairment | 439 | 713 | (274) | (38.4) | % | ||||||||||||||||||
Increase in cash surrender value of bank owned life insurance | 298 | 981 | (683) | (69.6) | % | ||||||||||||||||||
Other income | 827 | 362 | 465 | 128.5 | % | ||||||||||||||||||
Total non–interest income | $ | 9,929 | $ | 9,620 | $ | 309 | 3.2 | % |
Three Months Ended | |||||||||||||||||||||||
March 31, | March 31, | QTD | QTD | ||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Non–interest Expense | |||||||||||||||||||||||
Salaries and employee benefits | $ | 20,268 | $ | 18,712 | $ | 1,556 | 8.3 | % | |||||||||||||||
Net occupancy expenses | 3,546 | 3,563 | (17) | (0.5) | % | ||||||||||||||||||
Data processing | 2,464 | 2,669 | (205) | (7.7) | % | ||||||||||||||||||
Professional fees | 607 | 533 | 74 | 13.9 | % | ||||||||||||||||||
Outside services and consultants | 3,359 | 2,717 | 642 | 23.6 | % | ||||||||||||||||||
Loan expense | 719 | 1,118 | (399) | (35.7) | % | ||||||||||||||||||
FDIC deposit insurance | 1,320 | 540 | 780 | 144.4 | % | ||||||||||||||||||
Core deposit intangible amortization | 872 | 903 | (31) | (3.4) | % | ||||||||||||||||||
Other losses | 16 | 221 | (205) | (92.8) | % | ||||||||||||||||||
Other expenses | 3,936 | 3,548 | 388 | 10.9 | % | ||||||||||||||||||
Total non–interest expense | $ | 37,107 | $ | 34,524 | $ | 2,583 | 7.5 | % | |||||||||||||||
Annualized Non–interest Exp. to Avg. Assets | 1.90 | % | 1.79 | % |
Non–GAAP Reconciliation of Net Income | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Net income as reported | $ | 13,991 | $ | (25,215) | $ | 16,205 | $ | 18,763 | $ | 18,228 | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (1,453) | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | 305 | — | |||||||||||||||||||||||||||
Net income excluding gain on swap termination | 13,991 | (25,215) | 16,205 | 17,615 | 18,228 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 31,572 | — | (20) | 500 | |||||||||||||||||||||||||||
Tax effect | — | (6,630) | — | 4 | (105) | |||||||||||||||||||||||||||
Tax valuation reserve | — | 5,201 | — | — | — | |||||||||||||||||||||||||||
Net income excluding (gain)/loss on sale of investment securities | 13,991 | 4,928 | 16,205 | 17,599 | 18,623 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 705 | — | — | — | |||||||||||||||||||||||||||
Tax effect | — | (148) | — | — | — | |||||||||||||||||||||||||||
Net income excluding extraordinary expenses | 13,991 | 5,485 | 16,205 | 17,599 | 18,623 | |||||||||||||||||||||||||||
BOLI tax expense and excise tax | — | 8,597 | — | — | — | |||||||||||||||||||||||||||
Net income excluding BOLI tax expense and excise tax | 13,991 | 14,082 | 16,205 | 17,599 | 18,623 | |||||||||||||||||||||||||||
Adjusted net income | $ | 13,991 | $ | 14,082 | $ | 16,205 | $ | 17,599 | $ | 18,623 |
Non–GAAP Reconciliation of Diluted Earnings per Share | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Diluted earnings per share (“EPS”) as reported | $ | 0.32 | $ | (0.58) | $ | 0.37 | $ | 0.43 | $ | 0.42 | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (0.03) | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | 0.01 | — | |||||||||||||||||||||||||||
Diluted EPS excluding gain on swap termination | 0.32 | (0.58) | 0.37 | 0.41 | 0.42 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 0.72 | — | — | 0.01 | |||||||||||||||||||||||||||
Tax effect | — | (0.15) | — | — | — | |||||||||||||||||||||||||||
Tax valuation reserve | — | 0.12 | — | — | — | |||||||||||||||||||||||||||
Diluted EPS excluding (gain)/loss on investment securities | 0.32 | 0.11 | 0.37 | 0.41 | 0.43 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 0.02 | — | — | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | |||||||||||||||||||||||||||
Diluted EPS excluding extraordinary expenses | 0.32 | 0.13 | 0.37 | 0.41 | 0.43 | |||||||||||||||||||||||||||
BOLI tax expense and excise tax | — | 0.20 | — | — | — | |||||||||||||||||||||||||||
Diluted EPS excluding BOLI tax expense and excise tax | 0.32 | 0.33 | 0.37 | 0.41 | 0.43 | |||||||||||||||||||||||||||
Adjusted Diluted EPS | $ | 0.32 | $ | 0.33 | $ | 0.37 | $ | 0.41 | $ | 0.43 |
Non–GAAP Reconciliation of Pre–Tax, Pre–Provision Net Income | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Pre–tax income | $ | 15,305 | $ | (18,796) | $ | 17,489 | $ | 20,215 | $ | 20,091 | ||||||||||||||||||||||
Credit loss expense (recovery) | 805 | 1,274 | 263 | 680 | 242 | |||||||||||||||||||||||||||
Pre–tax, pre–provision net income | $ | 16,110 | $ | (17,522) | $ | 17,752 | $ | 20,895 | $ | 20,333 | ||||||||||||||||||||||
Pre–tax, pre–provision net income | $ | 16,110 | $ | (17,522) | $ | 17,752 | $ | 20,895 | $ | 20,333 | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (1,453) | — | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 31,572 | — | (20) | 500 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 705 | — | — | — | |||||||||||||||||||||||||||
Adjusted pre–tax, pre–provision net income | $ | 16,110 | $ | 14,755 | $ | 17,752 | $ | 19,422 | $ | 20,833 |
Non–GAAP Reconciliation of Net Interest Margin | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Net interest income as reported | $ | 43,288 | $ | 42,257 | $ | 42,090 | $ | 46,160 | $ | 45,237 | ||||||||||||||||||||||
Average interest earning assets | 7,293,559 | 7,239,034 | 7,286,611 | 7,212,640 | 7,201,266 | |||||||||||||||||||||||||||
Net interest income as a percentage of average interest earning assets (“Net Interest Margin”) | 2.50 | % | 2.43 | % | 2.41 | % | 2.69 | % | 2.67 | % | ||||||||||||||||||||||
Net interest income as reported | $ | 43,288 | $ | 42,257 | $ | 42,090 | $ | 46,160 | $ | 45,237 | ||||||||||||||||||||||
Acquisition–related purchase accounting adjustments (“PAUs”) | (13) | (175) | (435) | (651) | (367) | |||||||||||||||||||||||||||
Gain on swap termination | — | — | — | (1,453) | — | |||||||||||||||||||||||||||
Prepayment penalties on borrowings | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted net interest income | $ | 43,275 | $ | 42,082 | $ | 41,655 | $ | 44,056 | $ | 44,870 | ||||||||||||||||||||||
Adjusted net interest margin | 2.50 | % | 2.42 | % | 2.38 | % | 2.57 | % | 2.65 | % |
Non–GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share | ||||||||||||||||||||||||||||||||
(Dollars in Thousands Except per Share Data, Unaudited) | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Total stockholders’ equity | $ | 721,250 | $ | 718,812 | $ | 693,369 | $ | 709,243 | $ | 702,559 | ||||||||||||||||||||||
Less: Intangible assets | 167,965 | 168,837 | 169,741 | 170,644 | 171,547 | |||||||||||||||||||||||||||
Total tangible stockholders’ equity | $ | 553,285 | $ | 549,975 | $ | 523,628 | $ | 538,599 | $ | 531,012 | ||||||||||||||||||||||
Common shares outstanding | 43,726,380 | 43,652,063 | 43,648,501 | 43,645,216 | 43,621,422 | |||||||||||||||||||||||||||
Book value per common share | $ | 16.49 | $ | 16.47 | $ | 15.89 | $ | 16.25 | $ | 16.11 | ||||||||||||||||||||||
Tangible book value per common share | $ | 12.65 | $ | 12.60 | $ | 12.00 | $ | 12.34 | $ | 12.17 |
Non–GAAP Calculation and Reconciliation of Efficiency Ratio and Adjusted Efficiency Ratio | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Non–interest expense as reported | $ | 37,107 | $ | 39,330 | $ | 36,168 | $ | 36,262 | $ | 34,524 | ||||||||||||||||||||||
Net interest income as reported | 43,288 | 42,257 | 42,090 | 46,160 | 45,237 | |||||||||||||||||||||||||||
Non–interest income as reported | $ | 9,929 | $ | (20,449) | $ | 11,830 | $ | 10,997 | $ | 9,620 | ||||||||||||||||||||||
Non–interest expense/(Net interest income + Non–interest income) ("Efficiency Ratio") | 69.73 | % | 180.35 | % | 67.08 | % | 63.44 | % | 62.93 | % | ||||||||||||||||||||||
Non–interest expense as reported | $ | 37,107 | $ | 39,330 | $ | 36,168 | $ | 36,262 | $ | 34,524 | ||||||||||||||||||||||
Extraordinary expenses | — | (705) | — | — | — | |||||||||||||||||||||||||||
Non–interest expense excluding acquisition expenses and DOL ESOP settlement expenses | 37,107 | 38,625 | 36,168 | 36,262 | 34,524 | |||||||||||||||||||||||||||
Net interest income as reported | 43,288 | 42,257 | 42,090 | 46,160 | 45,237 | |||||||||||||||||||||||||||
Gain on swap termination | — | — | — | (1,453) | — | |||||||||||||||||||||||||||
Net interest income excluding gain on swap termination | 43,288 | 42,257 | 42,090 | 44,707 | 45,237 | |||||||||||||||||||||||||||
Non–interest income as reported | 9,929 | (20,449) | 11,830 | 10,997 | 9,620 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 31,572 | — | (20) | 500 | |||||||||||||||||||||||||||
Non–interest income excluding (gain)/loss on sale of investment securities | $ | 9,929 | $ | 11,123 | $ | 11,830 | $ | 10,977 | $ | 10,120 | ||||||||||||||||||||||
Adjusted efficiency ratio | 69.73 | % | 72.36 | % | 67.08 | % | 65.12 | % | 62.37 | % |
Non–GAAP Reconciliation of Return on Average Assets | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Average assets | $ | 7,836,046 | $ | 7,880,816 | $ | 7,924,751 | $ | 7,840,026 | $ | 7,831,106 | ||||||||||||||||||||||
Return on average assets ("ROAA") as reported | 0.72 | % | (1.27) | % | 0.81 | % | 0.96 | % | 0.94 | % | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (0.07) | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | 0.02 | — | |||||||||||||||||||||||||||
ROAA excluding gain on swap termination | 0.72 | (1.27) | 0.81 | 0.91 | 0.94 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 1.59 | — | — | 0.03 | |||||||||||||||||||||||||||
Tax effect | — | (0.33) | — | — | (0.01) | |||||||||||||||||||||||||||
Tax valuation reserve | — | 0.26 | — | — | — | |||||||||||||||||||||||||||
ROAA excluding (gain)/loss on sale of investment securities | 0.72 | 0.25 | 0.81 | 0.91 | 0.96 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 0.04 | — | — | — | |||||||||||||||||||||||||||
Tax effect | — | (0.01) | — | — | — | |||||||||||||||||||||||||||
ROAA excluding extraordinary expenses | 0.72 | 0.28 | 0.81 | 0.91 | 0.96 | |||||||||||||||||||||||||||
BOLI tax expense and excise tax | — | 0.43 | — | — | — | |||||||||||||||||||||||||||
ROAA excluding BOLI tax expense and excise tax | 0.72 | 0.71 | 0.81 | 0.91 | 0.96 | |||||||||||||||||||||||||||
Adjusted ROAA | 0.72 | % | 0.71 | % | 0.81 | % | 0.91 | % | 0.96 | % |
Non–GAAP Reconciliation of Return on Average Common Equity | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Average common equity | $ | 725,083 | $ | 702,793 | $ | 715,485 | $ | 710,953 | $ | 693,472 | ||||||||||||||||||||||
Return on average common equity ("ROACE") as reported | 7.76 | % | (14.23) | % | 8.99 | % | 10.59 | % | 10.66 | % | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (0.82) | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | 0.17 | — | |||||||||||||||||||||||||||
ROACE excluding gain on swap termination | 7.76 | (14.23) | 8.99 | 9.94 | 10.66 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 17.82 | — | (0.01) | 0.29 | |||||||||||||||||||||||||||
Tax effect | — | (3.74) | — | — | (0.06) | |||||||||||||||||||||||||||
Tax valuation reserve | — | 2.94 | — | — | — | |||||||||||||||||||||||||||
ROACE excluding (gain)/loss on sale of investment securities | 7.76 | 2.79 | 8.99 | 9.93 | 10.89 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 0.40 | — | — | — | |||||||||||||||||||||||||||
Tax effect | — | (0.08) | — | — | — | |||||||||||||||||||||||||||
ROACE excluding extraordinary expenses | 7.76 | 3.11 | 8.99 | 9.93 | 10.89 | |||||||||||||||||||||||||||
BOLI tax expense and excise tax | — | 4.85 | — | — | — | |||||||||||||||||||||||||||
ROACE excluding BOLI tax expense and excise tax | 7.76 | 7.96 | 8.99 | 9.93 | 10.89 | |||||||||||||||||||||||||||
Adjusted ROACE | 7.76 | % | 7.96 | % | 8.99 | % | 9.93 | % | 10.89 | % |
Non–GAAP Reconciliation of Return on Average Tangible Equity | ||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Average common equity | $ | 725,083 | $ | 702,793 | $ | 715,485 | $ | 710,953 | $ | 693,472 | ||||||||||||||||||||||
Less: Average intangible assets | 168,519 | 169,401 | 170,301 | 171,177 | 172,139 | |||||||||||||||||||||||||||
Average tangible equity | $ | 556,564 | $ | 533,392 | $ | 545,184 | $ | 539,776 | $ | 521,333 | ||||||||||||||||||||||
Return on average common equity ("ROATE") | 10.11 | % | (18.76) | % | 11.79 | % | 13.94 | % | 14.18 | % | ||||||||||||||||||||||
Gain on swap termination | — | — | — | (1.08) | — | |||||||||||||||||||||||||||
Tax effect | — | — | — | 0.23 | — | |||||||||||||||||||||||||||
ROATE excluding gain on swap termination | 10.11 | (18.76) | 11.79 | 13.09 | 14.18 | |||||||||||||||||||||||||||
(Gain)/loss on sale of investment securities | — | 23.48 | — | (0.01) | 0.39 | |||||||||||||||||||||||||||
Tax effect | — | (4.93) | — | — | (0.08) | |||||||||||||||||||||||||||
Tax valuation reserve | — | 3.87 | — | — | — | |||||||||||||||||||||||||||
ROATE excluding (gain)/loss on sale of investment securities | 10.11 | 3.66 | 11.79 | 13.08 | 14.49 | |||||||||||||||||||||||||||
Extraordinary expenses | — | 0.52 | — | — | — | |||||||||||||||||||||||||||
Tax effect | — | (0.11) | — | — | — | |||||||||||||||||||||||||||
ROATE excluding extraordinary expenses | 10.11 | 4.07 | 11.79 | 13.08 | 14.49 | |||||||||||||||||||||||||||
BOLI tax expense and excise tax | — | 6.39 | — | — | — | |||||||||||||||||||||||||||
ROATE excluding BOLI tax expense and excise tax | 10.11 | 10.46 | 11.79 | 13.08 | 14.49 | |||||||||||||||||||||||||||
Adjusted ROATE | 10.11 | % | 10.46 | % | 11.79 | % | 13.08 | % | 14.49 | % |
Exhibit No. | Description | Location | ||||||
31.1 | Attached | |||||||
31.2 | Attached | |||||||
32 | Attached | |||||||
101 | Inline Interactive Data Files | Attached | ||||||
104 | The cover page from the Company’s Quarterly Report on Form 10–Q for the quarter ended March 31, 2024, has been formatted in Inline XBRL | Within the Inline XBRL document |
HORIZON BANCORP, INC. | ||||||||
May 10, 2024 | /s/ Thomas M. Prame | |||||||
Date | Thomas M. Prame | |||||||
Chief Executive Officer | ||||||||
May 10, 2024 | /s/ Mark E. Secor | |||||||
Date | Mark E. Secor | |||||||
Chief Financial Officer |
May 10, 2024 | /s/ Thomas M. Prame | |||||||
Date | Thomas M. Prame | |||||||
Chief Executive Officer |
May 10, 2024 | /s/ Mark E. Secor | |||||||
Date | Mark E. Secor | |||||||
Chief Financial Officer |
May 10, 2024 | /s/ Thomas M. Prame | |||||||
Date | Thomas M. Prame | |||||||
Chief Executive Officer | ||||||||
May 10, 2024 | /s/ Mark E. Secor | |||||||
Date | Mark E. Secor | |||||||
Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Investment securities, held to maturity fair value | $ 1,627,853 | $ 1,668,758 |
Loans, net of allowance for credit losses | $ 50,387 | $ 50,029 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 99,000,000 | 99,000,000 |
Common stock, shares issued (in shares) | 44,115,840 | 44,106,174 |
Common stock, shares outstanding (in shares) | 44,115,840 | 44,106,174 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 13,991 | $ 18,228 |
Change in fair value of derivative instruments: | ||
Change in fair value of derivative instruments for the period | 0 | (558) |
Income tax effect | 0 | 116 |
Changes from derivative instruments | 0 | (442) |
Change in securities: | ||
Unrealized gain (loss) for the period on available for sale securities | (5,748) | 18,144 |
Accretion from transfer of securities from available for sale to held to maturity securities | (160) | (154) |
Reclassification adjustment for securities losses realized in income | 0 | 500 |
Income tax effect | 1,241 | (3,882) |
Unrealized gains (losses) on securities | (4,667) | 14,608 |
Other Comprehensive Income (Loss), Net of Tax | (4,667) | 14,166 |
Comprehensive Income | $ 9,324 | $ 32,394 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in USD per share) | $ 0.16 | $ 0.16 |
Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies | Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Horizon Bancorp, Inc. (“Horizon” or the “Company”) and its wholly-owned subsidiaries, including Horizon Bank (“Horizon Bank” or the “Bank”), which is an Indiana commercial bank. All inter–company balances and transactions have been eliminated. The results of operations for the periods ended March 31, 2024 and March 31, 2023 are not necessarily indicative of the operating results for the full year of 2024 or 2023. The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of Horizon’s management, necessary to fairly present the financial position, results of operations and cash flows of Horizon for the periods presented. Those adjustments consist only of normal recurring adjustments. Certain information and note disclosures normally included in Horizon’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Horizon’s Annual Report on Form 10–K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on March 15, 2024 (the “2023 Annual Report on Form 10–K”). The condensed consolidated balance sheet of Horizon as of December 31, 2023 has been derived from the audited balance sheet as of that date. On July 16, 2019, the Board of Directors of the Company authorized a stock repurchase program for up to 2,250,000 shares of Horizon’s issued and outstanding common stock, no par value. As of March 31, 2024, Horizon had repurchased a total of 803,349 shares at an average price per share of $16.89. Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted–average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share.
There were 86,353 shares for the three months ended March 31, 2024 which were not included in the computation of diluted earnings per share because they were non–dilutive. There were 601,685 shares for the three months ended March 31, 2023 which were not included in the computation of diluted earnings per share because they were non–dilutive. Adoption of New Accounting Standards FASB ASU No. 2023–02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The FASB has issued ASU 2023–02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This guidance allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted in any interim period. The Company adopted ASU 2023–02 on January 1, 2024 and it did not have a material impact on its accounting and disclosures. Accounting Guidance Issued But Not Yet Adopted FASB ASU No. 2023–09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The FASB has issued ASU 2023–09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. These amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate.) The amendments also require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is continuing to assess ASU 2023–09 and its impact on its accounting and disclosures. FASB ASU 2023–07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The FASB has issued ASU 2023–07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. These amendments require, among other things, that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 208. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Company is continuing to assess ASU 2023–07 and its impact on its accounting and disclosures.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities The fair value of securities is as follows:
The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2024 and December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following tables show the gross unrealized losses and the fair value of the Company’s available for sale investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. As of March 31, 2024 and December 31, 2023, the Company had 2,320 and 2,290 securities, respectively, with market values below their cost basis. The total fair value of these investments at March 31, 2024 and December 31, 2023 was $2.1 billion and $2.1 billion, which is approximately 86.0% and 85.1%, respectively, of the Company's available for sale and held to maturity securities portfolio. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary. No allowance for credit losses for available for sale debt securities was recorded at March 31, 2024 or December 31, 2023. The allowance for credit losses for held to maturity securities is a contra asset valuation account that is deducted from the carrying amount of held to maturity securities to present the net amount expected to be collected. Held to maturity securities are charged off against the allowance for credit loss when deemed uncollectible. Adjustments to the allowance for credit loss are reported in our Consolidated Statements of Income in credit loss expense. We measure expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and consider historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Government-sponsored treasuries, agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and municipal, private label mortgage-backed and corporate note held to maturity securities, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. As of March 31, 2024 and December 31, 2023, there were no past due principal and interest payments associated with these securities. An allowance for credit loss of $158,000 and $157,000 was recorded on these securities based on applying the long-term historical rating agency credit loss rate for similarly rated securities at March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on available for sale debt securities and held to maturity securities totaled $14.4 million at March 31, 2024 and $14.7 million at December 31, 2023 and is excluded from the estimate of credit losses. The U.S. government sponsored entities and agencies and mortgage–backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. Based on an evaluation of available evidence, management believes the unrealized losses on state and municipal securities, private labeled mortgage–backed pools and corporate notes were due to changes in interest rates. Due to the contractual terms, the issuers of state and municipal securities are not allowed to settle for less than the amortized cost of the security. In addition, the Company does not intend to sell these securities prior to the recovery of the amortized cost, which may not occur until maturity. Information regarding security proceeds, gross gains and gross losses are presented below.
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The table below identifies the Company’s loan portfolio segments and classes.
Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan. The following table presents total loans outstanding by portfolio class, as of March 31, 2024 and December 31, 2023:
Total loans include net deferred loan costs of $22.9 million at March 31, 2024 and $21.9 million at December 31, 2023, respectively. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner occupied commercial real estate loans versus non-owner occupied loans. Real Estate and Consumer With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and may require private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Mortgage Warehousing Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. Based on the agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. Non–performing Loans The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at March 31, 2024:
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2023:
There was no interest income recognized on non–accrual loans during the three months ended March 31, 2024 and 2023, respectively, while the loans were in non–accrual status. The following table presents the payment status by class of loan at March 31, 2024:
The following table presents the payment status by class of loan at December 31, 2023:
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Modified Loans The Company adopted ASU 2022–02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, during the first quarter of 2023. These amendments eliminated the troubled debt restructured (“TDR”) recognition measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. During the three months ended March 31, 2024 and March 31, 2023, the Company did not modify any troubled loans. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent. The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at March 31, 2024 and December 31, 2023.
Credit Quality Indicators Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade. •For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”). •Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager. •The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. •Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases. For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. Risk Grade 1: Excellent (Pass) Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges. Risk Grade 2: Good (Pass) Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges. Risk Grade 3: Satisfactory (Pass) Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: •At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory; •At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. •The loan has exhibited or more years of satisfactory repayment with a reasonable reduction of the principal balance. •During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. Risk Grade 4: Satisfactory/Monitored (Pass) Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. Risk Grade 4W: Management Watch (Pass) Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized. Risk Grade 5: Special Mention Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges. Risk Grade 6: Substandard One or more of the following characteristics may be exhibited in loans classified Substandard: •Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. •Loans are inadequately protected by the current net worth and paying capacity of the obligor. •The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. •Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. •Unusual courses of action are needed to maintain a high probability of repayment. •The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. •The lender is forced into a subordinated or unsecured position due to flaws in documentation. •Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. •The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. •There is a significant deterioration in market conditions to which the borrower is highly vulnerable. •The borrower meets defined key financial metric ranges. Risk Grade 7: Doubtful One or more of the following characteristics may be present in loans classified Doubtful: •Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. •The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. •The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. •The borrower meets defined key financial metric ranges. Risk Grade 8: Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables present loans by credit grades and origination year at March 31, 2024.
The following tables present loans by credit grades and origination year at December 31, 2023.
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Allowance for Credit and Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit and Loan Losses | Allowance for Credit and Loan Losses The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2024 and 2023:
The Company utilized the Cumulative Loss Rate method in determining expected future credit losses. The loss rate method measures the amount of loan charge–offs, net of recoveries, (“loan losses”) recognized over the life of a closed pool and compares those loan losses to the outstanding loan balance of that pool as of a specific point in time (“pool date”). To estimate a CECL loss rate for the pool, management first identifies the loan losses recognized between the pool date and the reporting date for the pool and determines which loan losses were related to loans outstanding at the pool date. The loss rate method then divides the loan losses recognized on loans outstanding as of the pool date by the outstanding loan balance as of the pool date. The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look–back period includes January 2009 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. The Company supplemented data for 2009 and 2010 with the use of adjusted Uniform Bank Performance Report peer group data. Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit–related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible. The Company’s CECL estimate applies to a forecast that incorporates macroeconomic trends and other environmental factors. Management utilized Moody's economic forecast scenarios including both National and Regional econometrics, as well as management judgment, as the basis for the forecast period. The historical loss rate was utilized as the base rate, and qualitative adjustments were utilized to reflect the forecast and other relevant factors. The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, loan purpose, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of the borrower and concentrations, and historical or expected credit loss patterns.
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Loan Servicing |
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Payments for (Proceeds from) Mortgage Servicing Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing | Loan Servicing Loans serviced for others are not included in the accompanying condensed consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $1.460 billion and $1.479 billion at March 31, 2024 and December 31, 2023. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates were used to stratify the originated mortgage servicing rights. Mortgage servicing rights are included in other assets on the balance sheets as of March 31, 2024 and December 31, 2023.
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Goodwill |
3 Months Ended |
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Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill was $155.2 million as of March 31, 2024 and December 31, 2023, respectively. There were no changes in the carrying amount of goodwill for the three months ended March 31, 2024 and 2023. Goodwill is assessed for impairment annually, or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment. No goodwill impairment charges were recorded for the three months ended March 31, 2024 and 2023. During the first quarters of 2024 and 2023, Horizon considered the amount by which fair value exceeded book value by performing a quantitative analysis. The Company engaged a third-party valuation specialist in performing its quantitative impairment analysis during the third quarter of 2023, which included a combination of valuation approaches to determine the fair value of the Bank reporting unit. These valuation approaches required certain assumptions such as the discount rate, economic conditions impacting interest and growth rates, the control premium, and a relative weighting given to the fair value derived by each of the valuation approaches used. At the conclusion of the assessment, the Company determined that as of March 31, 2024, it was more likely than not that the fair value of goodwill exceeded its carrying value.
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Repurchase Agreements |
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Disclosure of Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements | Repurchase Agreements The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to acquire the securities at the end of the next business day for the cash exchanged plus interest. The process is repeated at the end of each business day until the agreement is terminated. The securities underlying the agreement remained under the Company’s control. The following tables show repurchase agreements accounted for as secured borrowings and the related securities, at fair value, pledged for repurchase agreements:
Securities sold under agreements to repurchase are secured by securities with a carrying amount of $147.6 million and $145.2 million at March 31, 2024 and December 31, 2023, respectively.
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Subordinated Notes |
3 Months Ended |
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Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | Subordinated Notes On June 24, 2020, Horizon issued $60.0 million in aggregate principal amount of 5.625% fixed–to–floating rate subordinated notes (the “Notes”). The Notes were offered in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Notes mature on July 1, 2030 (the “Maturity Date”). From and including the date of original issuance to, but excluding, July 1, 2025 or the date of earlier redemption (the “fixed rate period”), the Notes bear interest at an initial rate of 5.625% per annum, payable semi–annually in arrears on January 1 and July 1 of each year, commencing on January 1, 2021. The last interest payment date for the fixed rate period will be July 1, 2025. From and including July 1, 2025 to, but excluding, the Maturity Date or the date of earlier redemption (the “floating rate period”), the Notes bear interest at a floating rate per annum equal to the benchmark rate, which is expected to be Three–Month Term SOFR (the “Benchmark Rate”), plus 549 basis points, payable quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, commencing on October 1, 2025. Notwithstanding the foregoing, in the event that the Benchmark Rate is less than zero, the Benchmark Rate shall be deemed to be zero. Horizon may, at its option, beginning with the interest payment date of July 1, 2025 and on any interest payment date thereafter, redeem the Notes, in whole or in part. The Notes will not otherwise be redeemable by Horizon prior to maturity, unless certain events occur. The redemption price for any redemption is 100% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any early redemption of the Notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations, including capital regulations. The Notes are unsecured subordinated obligations, and rank pari passu, or equally, with all of Horizon's future unsecured subordinated debt and are junior to all existing and future senior debt. The Notes are structurally subordinated to all existing and future liabilities of Horizon's subsidiaries, including the deposit liabilities and claims of other creditors of Horizon Bank, and are effectively subordinated to Horizon’s existing and future secured indebtedness. There is no sinking fund for the Notes. The Notes are obligations of Horizon only and are not obligations of, and are not guaranteed by, any of Horizon’s subsidiaries. On December 8, 2023, Horizon cancelled $3.5 million of the $60.0 million in Notes at a price of 89.5 recording a gain of $368,000. The balance net of unamortized issuance costs of the Notes was $55.6 million and $55.5 million at March 31, 2024 and December 31, 2023, respectively.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into an interest rate swap agreement for a portion of its floating rate debt on July 20, 2018. The agreement provides for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a fixed rate of 2.81% on a notional amount of $50.0 million. Under the agreement, the Company paid or received the net interest amount monthly, with the monthly settlements included in interest expense. The Company terminated this interest rate swap agreement on May 23, 2023 and recorded a related gain of $1.5 million as a reduction of interest expense. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Fair Value Hedges Fair value hedges are intended to reduce the interest rate risk associated with the underlying hedged item. The Company enters into fixed rate loan agreements as part of its lending policy. To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. At March 31, 2024, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months. The change in fair value of both the hedge instruments and the underlying loan agreements are recorded as gains or losses in non–interest income. The fair value hedges are considered to be highly effective and any hedge ineffectiveness was deemed not material. Other Derivative Instruments The Company enters into non–hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business. At March 31, 2024, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income. The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans. The following tables summarize the fair value of derivative financial instruments utilized by Horizon:
The effect of the derivative instruments on the condensed consolidated statements of comprehensive income (loss) for the three–month periods ended March 31 is as follows:
The effect of the derivative designated as a hedging instrument on the condensed consolidated statements of income for the three–month periods ended March 31 is as follows:
The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three–month periods ended March 31 is as follows:
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Disclosures about Fair Value of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures about Fair Value of Assets and Liabilities | Disclosures about Fair Value of Assets and Liabilities The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value: Level 1 –Quoted prices in active markets for identical assets or liabilities Level 2 –Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 –Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2024. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available for sale securities When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, federal agency collateralized mortgage obligations and mortgage–backed pools and corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed–income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features. Hedged loans Certain fixed rate loans have been converted to variable rate loans by entering into interest rate swap agreements. The fair value of those fixed rate loans is based on discounting the estimated cash flows using interest rates determined by the respective interest rate swap agreement. Loans are classified within Level 2 of the valuation hierarchy based on the unobservable inputs used. Interest rate swap agreements The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:
Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):
Collateral Dependent Loans: For loans identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Collateral dependent loans are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. The following table presents qualitative information about unobservable inputs used in recurring and non–recurring Level 3 fair value measurements, other than goodwill.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The estimated fair value amounts of the Company’s financial instruments were determined using available market information, current pricing information applicable to Horizon and various valuation methodologies. Where market quotations were not available, considerable management judgment was involved in the determination of estimated fair values. Therefore, the estimated fair value of financial instruments shown below may not be representative of the amounts at which they could be exchanged in a current or future transaction. Due to the inherent uncertainties of expected cash flows of financial instruments, the use of alternate valuation assumptions and methods could have a significant effect on the estimated fair value amounts. The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole. The disclosed fair value estimates are limited to Horizon’s significant financial instruments at March 31, 2024 and December 31, 2023. These include financial instruments recognized as assets and liabilities on the condensed consolidated balance sheets as well as certain off–balance sheet financial instruments. The estimated fair values shown below do not include any valuation of assets and liabilities, which are not financial instruments as defined by the FASB ASC fair value hierarchy. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and Due from Banks – The carrying amounts approximate fair value. Interest-earning time deposits – The fair values of the Company’s interest–earning time deposits are estimated using discounted cash flow analyses based on current rates for similar types of interest–earning time deposits. Held–to–Maturity Securities – For debt securities held to maturity, fair values are based on quoted market prices or dealer quotes. For those securities where a quoted market price is not available, carrying amount is a reasonable estimate of fair value based upon comparison with similar securities. Loans Held for Sale – The carrying amounts approximate fair value. Net Loans – The fair value of net loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. FHLB Stock – Fair value of FHLB stock is based on the price at which it may be resold to the FHLB. Interest Receivable/Payable – The carrying amounts approximate fair value. Deposits – The fair value of demand deposits, savings accounts, interest bearing checking accounts and money market deposits is the amount payable on demand at the reporting date and are classified within Level 1. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturity and are classified within Level 2. Borrowings – Rates currently available to Horizon for debt with similar terms and remaining maturities are used to estimate fair values of existing borrowings. Subordinated Notes – The fair value of subordinated notes is based on discounted cash flows based on current borrowing rates for similar types of instruments. Junior Subordinated Debentures Issued to Capital Trusts – Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures. 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 obligations with the counterparties at the reporting date. Due to the short–term nature of these agreements, carrying amounts approximate fair value. The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)
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Regulatory Capital |
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Banking and Thrift, Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital | Regulatory Capital Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. These capital requirements implement changes arising from the Dodd–Frank Wall Street Reform and Consumer Protection Act and the U.S. Basel Committee on Banking Supervision’s capital framework (known as “Basel III”). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off–balance–sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III–based regulations. As allowed under Basel III rules, the Company made the decision to opt–out of including accumulated other comprehensive income in regulatory capital. The minimum regulatory capital requirements are set forth in the table below. In addition, to be categorized as well capitalized, the Company and Bank must maintain Total risk–based, Tier I risk–based, common equity Tier I risk–based and Tier I leverage ratios as set forth in the table below. As of March 31, 2024 and December 31, 2023, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the first quarter of 2024 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well capitalized status for bank holding companies. Horizon and the Bank’s actual and required capital ratios as of March 31, 2024 and December 31, 2023 were as follows:
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General Litigation |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation | General Litigation As of April 20, 2023, a putative class action lawsuit entitled Chad Key, et al. v. Horizon Bancorp, Inc., et al., Case No. 1:23-cv-02961 (”Securities Action”) was filed against the Company and two of its officers in the U.S. District Court for the Eastern District of New York. The Securities Action asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 alleging, among other things, the Company made materially false and misleading statements and failed to disclose material adverse facts which allegedly resulted in harm to a putative class of purchasers of our securities from March 9, 2022 and March 10, 2023. As of (1) August 28, 2023, a lawsuit related to the Securities Action was filed by Sally Hundley, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors and (2) August 31, 2023, a lawsuit also related to the Securities Action was filed by Aziz Chowdhury, derivatively on behalf of the Company, against the Company, as nominal defendant, and 2 of the Company's officers and 10 of its directors (the “Derivatives Actions”) in the U.S. District Court for the Eastern District of New York. The Derivative Actions allege, among other things, breach of the officers and directors' fiduciary duties. The Derivative Actions have been consolidated and stayed pending resolution of any motion to dismiss in the Securities Action. Based on our initial review of these actions, management believes that the Company has strong defenses to the claims and intends to vigorously defend against them. As of March 31, 2024, no liabilities related to the above matters were recorded because we have concluded such liabilities are not probable and the amounts of such liabilities are not reasonably estimable. In addition to the matters described above, from time to time, Horizon and its subsidiaries are involved in various legal proceedings incidental to the conduct of their business. Management does not expect that the outcome of any such proceedings will have a material adverse effect on our consolidated financial position or results of operations.
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Accounting Policies (Policies) |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Earnings per Common Share | Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted–average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
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Adoption of New Accounting Standards and Accounting Guidance Issued But Not Yet Adopted | Adoption of New Accounting Standards FASB ASU No. 2023–02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The FASB has issued ASU 2023–02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This guidance allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted in any interim period. The Company adopted ASU 2023–02 on January 1, 2024 and it did not have a material impact on its accounting and disclosures. Accounting Guidance Issued But Not Yet Adopted FASB ASU No. 2023–09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The FASB has issued ASU 2023–09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. These amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate.) The amendments also require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is continuing to assess ASU 2023–09 and its impact on its accounting and disclosures. FASB ASU 2023–07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The FASB has issued ASU 2023–07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. These amendments require, among other things, that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 208. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Company is continuing to assess ASU 2023–07 and its impact on its accounting and disclosures.
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Accounting Policies (Tables) |
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Schedule of Computation of Basic and Diluted Earnings Per Share | The following table shows computation of basic and diluted earnings per share.
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Securities (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Securities | The fair value of securities is as follows:
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Schedule of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity | The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2024 and December 31, 2023, by contractual maturity, are shown below. Expected maturities will 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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Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following tables show the gross unrealized losses and the fair value of the Company’s available for sale investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
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Schedule of Sales of Securities Available for Sale | Information regarding security proceeds, gross gains and gross losses are presented below.
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Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loan Portfolio Segments and Classes | The table below identifies the Company’s loan portfolio segments and classes.
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Schedule of Loans Outstanding By Portfolio Class | The following table presents total loans outstanding by portfolio class, as of March 31, 2024 and December 31, 2023:
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Schedule of Non-accrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans | The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at March 31, 2024:
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2023:
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Schedule of Payment Status by Class of Loan | The following table presents the payment status by class of loan at March 31, 2024:
The following table presents the payment status by class of loan at December 31, 2023:
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Schedule of Allowance for Credit Loss Allocated for Collateral Dependent Loans | The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at March 31, 2024 and December 31, 2023.
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Schedule of Loans by Credit Grades | The following tables present loans by credit grades and origination year at March 31, 2024.
The following tables present loans by credit grades and origination year at December 31, 2023.
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Allowance for Credit and Loan Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses | The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2024 and 2023:
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Loan Servicing (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for (Proceeds from) Mortgage Servicing Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Originated Mortgage Servicing Rights | Mortgage servicing rights are included in other assets on the balance sheets as of March 31, 2024 and December 31, 2023.
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Repurchase Agreements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements Accounted as Secured Borrowings | The following tables show repurchase agreements accounted for as secured borrowings and the related securities, at fair value, pledged for repurchase agreements:
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivative Financial Instruments | The following tables summarize the fair value of derivative financial instruments utilized by Horizon:
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Schedule of Effect of Derivative Instruments on Condensed Consolidated Statements of Income Derivative in Cash Flow Hedging Relationship | The effect of the derivative instruments on the condensed consolidated statements of comprehensive income (loss) for the three–month periods ended March 31 is as follows:
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Schedule of Effect of the Derivative Designated as a Hedging Instrument on the Consolidated Statements of Income Derivative in Fair Value Hedging Relationship | The effect of the derivative designated as a hedging instrument on the condensed consolidated statements of income for the three–month periods ended March 31 is as follows:
The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three–month periods ended March 31 is as follows:
|
Disclosures about Fair Value of Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:
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Schedule of Other Assets Measured at Fair Value on Nonrecurring Basis | Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):
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Schedule of Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill | The following table presents qualitative information about unobservable inputs used in recurring and non–recurring Level 3 fair value measurements, other than goodwill.
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income |
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Regulatory Capital (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Banking and Thrift, Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Capital Requirement | Horizon and the Bank’s actual and required capital ratios as of March 31, 2024 and December 31, 2023 were as follows:
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Accounting Policies - Narrative (Details) - $ / shares |
3 Months Ended | ||
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Mar. 31, 2024 |
Mar. 31, 2023 |
Jul. 16, 2019 |
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Accounting Policies [Abstract] | |||
Number of shares authorized to be repurchased (in shares) | 2,250,000 | ||
Number of shares repurchased (in shares) | 803,349 | ||
Average price per share repurchased (in USD per share) | $ 16.89 | ||
Shares, non-dilutive (in shares) | 86,353 | 601,685 |
Accounting Policies - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Basic earnings per share | ||
Net income | $ 13,991 | $ 18,228 |
Weighted average common shares outstanding (in shares) | 43,663,610 | 43,583,554 |
Basic earnings per share (in USD per share) | $ 0.32 | $ 0.42 |
Diluted earnings per share | ||
Net income | $ 13,991 | $ 18,228 |
Weighted average common shares outstanding (in shares) | 43,663,610 | 43,583,554 |
Effect of dilutive securities: | ||
Weighted average common shares outstanding (in shares) | 43,874,036 | 43,744,721 |
Diluted earnings per share (in USD per share) | $ 0.32 | $ 0.42 |
Restricted stock | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 205,054 | 142,318 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 5,372 | 18,849 |
Securities - Additional Information (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024
USD ($)
security
|
Dec. 31, 2023
USD ($)
security
|
|
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities in unrealized loss positions | security | 2,320 | 2,290 |
Unrealized loss positions | $ 2,100,000,000 | $ 2,100,000,000 |
Percentage of portfolio | 86.00% | 85.10% |
Allowance for credit loss | $ 158,000 | $ 157,000 |
Accrued interest receivable on available for sale debt securities | 14,400,000 | 14,700,000 |
Allowance for credit losses for available for sale debt securities | $ 0 | $ 0 |
Securities - Sales of Securities Available for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 0 | $ 63,526 |
Gross gains | 0 | 129 |
Gross losses | $ 0 | $ (629) |
Loan Servicing - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payments for (Proceeds from) Mortgage Servicing Rights [Abstract] | ||
Unpaid principal balances of loans serviced for others totaled | $ 1,460 | $ 1,479 |
Loan Servicing - Schedule of Originated Mortgage Servicing Rights (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 18,807 | $ 18,619 |
Servicing rights capitalized | 207 | 228 |
Amortization of servicing rights | (476) | (247) |
Balance, end of period | 18,538 | 18,600 |
Balance, beginning of period | 0 | 0 |
Additions | 0 | 0 |
Reductions | 0 | 0 |
Balance, end of period | 0 | 0 |
Mortgage servicing rights, net | 18,538 | 18,600 |
Fair value, beginning of period | 19,891 | 19,992 |
Fair value, end of period | $ 19,149 | $ 19,336 |
Goodwill (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 155,211,000 | $ 155,211,000 | |
Goodwill impairment loss | $ 0 | $ 0 |
Repurchase Agreements - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Transfers and Servicing [Abstract] | ||
Securities loaned, gross including not subject to master netting arrangement | $ 147.6 | $ 145.2 |
Subordinated Notes (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Dec. 08, 2023 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 24, 2020 |
|
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 60,000,000 | |||
Interest rate (in percent) | 5.625% | |||
Basis spread on variable rate | 5.49% | |||
Redemption price, percentage (in percent) | 100.00% | |||
Subordinated notes | $ 55,634,000 | $ 55,543,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt extinguishment | $ 3,500,000 | |||
Gain on extinguishment of debt | $ 368,000 |
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
May 23, 2023 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Derivative [Line Items] | ||||
Notional Amount | $ 564,209 | $ 567,359 | ||
Recorded period of effectiveness of fair value hedges on net income (in months) | 12 months | |||
Recorded period of effectiveness of fair value of derivatives on net income (in months) | 12 months | |||
Interest rate swap agreements asset | ||||
Derivative [Line Items] | ||||
Weighted average fixed rate (in percent) | 2.81% | |||
Interest rate swap agreements asset | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 50,000 | |||
Amount of gain recognized on derivative | $ 1,500 |
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Condensed Consolidated Statements of Income Derivative in Cash Flow Hedging Relationship (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Other comprehensive income on derivative | $ 0 | $ (442) |
Disclosures about Fair Value of Assets and Liabilities - Schedule of Qualitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill (Details) - Significant Unobservable Inputs (Level 3) - Collateral dependent loans - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 622 | $ 2,918 |
Valuation Technique | Collateral based measurement | Collateral based measurement |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectibility | Discount to reflect current market conditions and ultimate collectibility |
Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 15.40% | 16.90% |
Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 15.40% | 34.20% |
Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 15.40% | 21.50% |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | $ (71,276) | $ (66,609) |
Unrealized gain (loss) on securities available for sale, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (73,559) | (69,018) |
Unamortized gain (loss) on securities held to maturity, previously transferred from AFS, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | $ 2,283 | $ 2,409 |
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