CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 438,068 | $ 455,232 |
Investment securities, held to maturity, fair value | $ 612,200 | $ 612,701 |
Preferred Stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, shares issued | 17,021,748 | 16,986,785 |
Common Stock, shares outstanding | 17,021,748 | 16,986,785 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net Income Attributable to Common Shareowners | $ 14,954 | $ 8,455 |
Other comprehensive (loss) income, before tax: | ||
Change in net unrealized gain (loss) on securities available for sale | 6,808 | (25,448) |
Amortization of unrealized losses on securities transferred from available for sale to held to maturity | 865 | 3 |
Change in net unrealized (loss) gain on effective cash flow derivative | (801) | 1,836 |
Benefit Plans: | ||
Defined benefit plan settlement | 0 | 209 |
Total Benefit Plans | 0 | 209 |
Other comprehensive income (loss), before tax | 6,872 | (23,400) |
Deferred tax expense (benefit) related to other comprehensive income | 1,719 | (5,871) |
Other comprehensive income (loss), net of tax | 5,153 | (17,529) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 20,107 | $ (9,074) |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive (Loss) Income, Net of Taxes [Member] |
---|---|---|---|---|---|
Balance at Dec. 31, 2021 | $ 383,166 | $ 169 | $ 34,423 | $ 364,788 | $ (16,214) |
Balance (in shares) at Dec. 31, 2021 | 16,892,060 | ||||
Net Income Attributable to Common Shareowners | 8,455 | $ 0 | 0 | 8,455 | 0 |
Other Comprehensive LossIncome, net of tax | (17,529) | 0 | 0 | 0 | (17,529) |
Cash Dividends | (2,712) | 0 | 0 | (2,712) | 0 |
Stock Based Compensation | 245 | 0 | 245 | 0 | 0 |
Stock Compensation Plan Transactions, net | 520 | $ 0 | 520 | 0 | 0 |
Stock Compensation Plan Transactions, net (in shares) | 55,542 | ||||
Balance at Mar. 31, 2022 | 372,145 | $ 169 | 35,188 | 370,531 | (33,743) |
Balance, Shares at Mar. 31, 2022 | 16,947,602 | ||||
Balance at Dec. 31, 2022 | $ 394,016 | $ 170 | 37,331 | 393,744 | (37,229) |
Balance (in shares) at Dec. 31, 2022 | 16,986,785 | 16,986,785 | |||
Net Income Attributable to Common Shareowners | $ 14,954 | $ 0 | 0 | 14,954 | 0 |
Other Comprehensive LossIncome, net of tax | 5,153 | 0 | 0 | 0 | 5,153 |
Cash Dividends | (3,064) | 0 | 0 | (3,064) | 0 |
Repurchase of Common Stock | (819) | $ 0 | (819) | 0 | 0 |
Repurchase of Common Stock (in shares) | (25,241) | ||||
Stock Based Compensation | 536 | $ 0 | 536 | 0 | 0 |
Stock Compensation Plan Transactions, net | 464 | $ 0 | 464 | 0 | 0 |
Stock Compensation Plan Transactions, net (in shares) | 60,204 | ||||
Balance at Mar. 31, 2023 | $ 411,240 | $ 170 | $ 37,512 | $ 405,634 | $ (32,076) |
Balance, Shares at Mar. 31, 2023 | 17,021,748 | 17,021,748 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends (in dollars per share) | $ 0.1800 | $ 0.1600 |
BUSINESS AND BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Business and Basis of Presentation [Abstract] | |
Business and Basis of Presentation | NOTE 1 – BUSINESS AND BASIS OF PRESENTATION Nature of Operations . related services to individual and corporate clients through its subsidiary, Georgia, and Alabama. government agencies and undergoes periodic examinations Basis of Presentation . and its wholly owned subsidiary, have been eliminated. The accompanying unaudited consolidated financial statements have principles for interim financial information and with the instructions to Form they do not include all of the information and notes required by generally accepted statements. presentation have been included. The Consolidated Statement of Financial Condition at December statements at that date, but does not include all of the information and notes complete financial statements. Company’s annual report Accounting Standards Updates Adoption of New Accounting Standard, “Financial Instruments – Credit Losses (Topic the accounting guidance for troubled debt restructurings in Accounting Troubled Debt Restructurings by Creditors 2016-13, “Financial Instruments – Credit Losses (Topic 02 also requires that public business entities disclose current-period and net investments in leases within the scope of Subtopic 326-20, “Financial Cost.” Proposed Accounting Standards , ASU : entities to amortize leasehold improvements associated with common control ASU 2023-01 also provides certain practical expedients applicable to private 01 will be effective for us on January 1, 2024, though early adoption 2023-01 will have on its consolidated financial statements and related disclosures. ASU No. : Accounting for Investments in Tax Structures Using the Proportional Amortization Method.” ASU 2023-02 investments in tax credit structures. ASU 2023-02 allows entities to elect to account proportional amortization method, regardless of the program giving only available for qualifying tax equity investments in low-income on January 1, 2024, though early adoption is permitted. consolidated financial statements and related disclosures. |
INVESTMENT SECURITIES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Investments Securities [Abstract] | |
Investment securities | NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related fair value of investment securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) unrealized gains and losses. Available for Amortized Unrealized Unrealized Allowance for Fair (Dollars in Thousands) Cost Gains Losses Credit Losses Value March 31, 2023 U.S. Government Treasury $ 23,984 $ - $ 1,611 $ - $ 22,373 U.S. Government Agency 184,294 127 10,131 - 174,290 States and Political Subdivisions 47,143 7 5,663 (8) 41,479 Mortgage-Backed Securities (1) 79,148 3 10,137 - 69,014 Corporate Debt Securities 96,144 34 7,718 (28) 88,432 Other Securities (2) 7,355 - - - 7,355 Total $ 438,068 $ 171 $ 35,260 $ (36) $ 402,943 December 31, 2022 U.S. Government Treasury $ 23,977 $ 1 $ 1,928 $ - $ 22,050 U.S. Government Agency 198,888 27 12,863 - 186,052 States and Political Subdivisions 47,197 - 6,855 (13) 40,329 Mortgage-Backed Securities (1) 80,829 2 11,426 - 69,405 Corporate Debt Securities 97,119 19 8,874 (28) 88,236 Other Securities (2) 7,222 - - - 7,222 Total $ 455,232 $ 49 $ 41,946 $ (41) $ 413,294 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value March 31, 2023 U.S. Government Treasury $ 457,446 $ - $ 20,272 $ 437,174 Mortgage-Backed Securities (1) 194,309 19 19,302 175,026 Total $ 651,755 $ 19 $ 39,574 $ 612,200 December 31, 2022 U.S. Government Treasury $ 457,374 $ - $ 25,641 $ 431,733 Mortgage-Backed Securities (1) 203,370 8 22,410 180,968 Total $ 660,744 $ 8 $ 48,051 $ 612,701 (1) (2) Includes Federal Home Loan Bank and Federal Reserve Bank stock, 2.3 5.1 respectively, 2.1 5.1 At March 31, 2023 and December 31, 2022, the investment portfolio had $ 1.9 0.01 securities. These securities do not have a readily determinable fair value Securities with an amortized cost of $ 660.1 656.1 pledged to secure public deposits and for other purposes. The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required generally upon the balances of residential and commercial real estate loans and FHLB other securities, redemption of this stock has historically been at par value. As a member of the Federal Reserve Bank of Atlanta, the Bank is required to maintain based on a specified ratio relative to the Bank’s During the third quarter of 2022, the Company transferred certain securities from at fair value on the date of the transfer. 33 168.4 159.0 million, respectively at the time of transfer. other comprehensive loss in the accompanying balance sheet at March 7.1 amortized out of accumulated other comprehensive loss over the remaining yield on those securities. Investment Sales. There were no significant sales of investment securities for the three months ended 3.4 in sales of investment securities for the three months ended March 31, 2022. Maturity Distribution . contractual maturity. prepay obligations. separately because they are not due at a certain maturity date. Available for Held to Maturity (Dollars in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 36,233 $ 35,696 $ - $ - Due after one year through five years 159,994 147,344 457,446 437,174 Due after five year through ten years 50,961 42,970 - - Mortgage-Backed Securities 79,148 69,014 194,309 175,026 U.S. Government Agency 104,377 100,564 - - Other Securities 7,355 7,355 - - Total $ 438,068 $ 402,943 $ 651,755 $ 612,200 Unrealized Losses on Investment Securities. unrealized losses aggregated by major security type and length of time in a continuous Less Than Greater Than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses March 31, 2023 Available for U.S. Government Treasury $ 994 $ - $ 19,481 $ 1,611 $ 20,475 $ 1,611 U.S. Government Agency 29,035 354 133,057 9,777 162,092 10,131 States and Political Subdivisions - - 39,905 5,663 39,905 5,663 Mortgage-Backed Securities - - 68,892 10,137 68,892 10,137 Corporate Debt Securities 10,009 215 74,472 7,503 84,481 7,718 Total $ 40,038 $ 569 $ 335,807 $ 34,691 $ 375,845 $ 35,260 Held to Maturity U.S. Government Treasury 4,827 106 432,346 20,166 437,173 20,272 Mortgage-Backed Securities 9,360 297 164,217 19,005 173,577 19,302 Total $ 14,187 $ 403 $ 596,563 $ 39,171 $ 610,750 $ 39,574 December 31, 2022 Available for U.S. Government Treasury $ 983 $ - $ 19,189 $ 1,928 $ 20,172 $ 1,928 U.S. Government Agency 63,112 2,572 113,004 10,291 176,116 12,863 States and Political Subdivisions 1,425 2 38,760 6,853 40,185 6,855 Mortgage-Backed Securities 6,594 959 60,458 10,467 67,052 11,426 Corporate Debt Securities 26,959 878 58,601 7,996 85,560 8,874 Total $ 99,073 $ 4,411 $ 290,012 $ 37,535 $ 389,085 $ 41,946 Held to Maturity U.S. Government Treasury 177,552 11,018 254,181 14,623 431,733 25,641 Mortgage-Backed Securities 88,723 6,814 91,462 15,596 180,185 22,410 Total $ 266,275 $ 17,832 $ 345,643 $ 30,219 $ 611,918 $ 48,051 At March 31, 2023, there were 896 74.8 87 positions are U.S. Treasury bonds and carry 684 securities issued by U.S. government sponsored entities. indicates that the expectation of nonpayment of the amortized cost basis is effectively 125 securities and corporate bonds) have a credit component. (“CMO”), MBS, Small Business Administration securities (“SBA”), U.S. Agency, March 31, 2023, corporate debt securities had an allowance for credit losses of 28,000 $ 8,000 . Credit Quality Indicators The Company monitors the credit quality of its investment securities through monitoring of credit ratings. government entity or agency and are either explicitly or implicitly guaranteed long history of no credit losses on these securities indicates that the expectation effectively zero, even if the U.S. government were have been pre-refunded and secured by government guaranteed treasuries. does no t assess or record expected credit losses due to the zero loss assumption. municipal and corporate securities portfolio via credit ratings and corporate securities in an unrealized loss position are evaluated to determine if an allowance for credit loss is needed. |
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Loans Held For Investment And Allowance For Credit Losses [Abstract] | |
Loans held for investment and allowance for credit losses | NOTE 3 – LOANS HELD FOR INVESTMENT AND ALLOWANCE Loan Portfolio Composition . (Dollars in Thousands) March 31, 2023 December 31, 2022 Commercial, Financial and Agricultural $ 236,263 $ 247,362 Real Estate – Construction 253,903 234,519 Real Estate – Commercial Mortgage 798,438 782,557 Real Estate – Residential (1) 834,784 727,105 Real Estate – Home Equity 207,241 208,120 Consumer (2) 306,255 325,517 Loans Held For Investment, Net of Unearned Income $ 2,636,884 $ 2,525,180 (1) Includes loans in process balances of $ 8.5 6.1 (2) Includes overdraft balances of $ 0.9 1.1 Net deferred loan costs, which include premiums on purchased loans, 12.5 $ 10.8 Accrued interest receivable on loans which is excluded from amortized 8.6 8.0 December 31, 2022, and is reported separately in Other Assets. The Company has pledged a blanket floating lien on all 1-4 family residential mortgage and home equity loans to support available borrowing capacity at the FHLB of consumer loans, commercial loans, and construction loans to support available Atlanta. Loan Purchase and Sales . loans from Capital City Home Loans (“CCHL”), a related party. 120.1 $ 26.3 Allowance for Credit Losses . (“ACL”) has two basic components: first, an asset-specific component measurement of expected credit losses for such individual loans; and second, of loans that share similar risk characteristics. Policies in the Company’s 2022 Form The following table details the activity in the allowance for credit losses by portfolio allowance to one category of loans does not preclude its availability Commercial, Real Estate Financial, Real Estate Commercial Real Estate Real Estate (Dollars in Thousands) Agricultural Construction Mortgage Residential Home Equity Consumer Total Three Months Ended March 31, 2023 Beginning Balance $ 1,506 $ 2,654 $ 4,815 $ 10,409 $ 1,864 $ 3,488 $ 24,736 Provision for Credit Losses 78 704 7 1,183 (10) 1,329 3,291 Charge-Offs (164) - (120) - - (2,366) (2,650) Recoveries 95 1 8 57 25 944 1,130 Net (Charge-Offs) Recoveries (69) 1 (112) 57 25 (1,422) (1,520) Ending Balance $ 1,515 $ 3,359 $ 4,710 $ 11,649 $ 1,879 $ 3,395 $ 26,507 Three Months Ended March 31, 2022 Beginning Balance $ 2,191 $ 3,302 $ 5,810 $ 4,129 $ 2,296 $ 3,878 $ 21,606 Provision for Credit Losses (161) (714) (181) 314 (405) 1,068 (79) Charge-Offs (73) - (266) - (33) (1,402) (1,774) Recoveries 165 8 29 27 58 716 1,003 Net (Charge-Offs) Recoveries 92 8 (237) 27 25 (686) (771) Ending Balance $ 2,122 $ 2,596 $ 5,392 $ 4,470 $ 1,916 $ 4,260 $ 20,756 For the three months ended March 31, 2023, the allowance for HFI loans 1.8 of $ 3.3 1.5 growth. 0.9 $ 0.1 0.8 and its potential effect on rates of default. are weighted based on management’s allowance for off-balance sheet credit commitments. Loan Portfolio Aging. A loan is defined as a past due loan when one full payment is past due or a contractual maturity past due (“DPD”). The following table presents the aging of the amortized cost basis in accruing 30-59 60-89 90 + Total Total Nonaccrual Total (Dollars in Thousands) DPD DPD DPD Past Due Current Loans Loans March 31, 2023 Commercial, Financial and Agricultural $ 248 $ 4 $ - $ 252 $ 235,999 $ 12 $ 236,263 Real Estate – Construction 1,137 - - 1,137 252,766 - 253,903 Real Estate – Commercial Mortgage 64 66 - 130 795,747 2,561 798,438 Real Estate – Residential (1) 1,040 - - 1,040 832,978 766 834,784 Real Estate – Home Equity 54 - - 54 206,505 682 207,241 Consumer 2,175 273 - 2,448 303,239 568 306,255 Total $ 4,718 $ 343 $ - $ 5,061 $ 2,627,234 $ 4,589 $ 2,636,884 December 31, 2022 Commercial, Financial and Agricultural $ 109 $ 126 $ - $ 235 $ 247,086 $ 41 $ 247,362 Real Estate – Construction 359 - - 359 234,143 17 234,519 Real Estate – Commercial Mortgage 158 149 - 307 781,605 645 782,557 Real Estate – Residential 845 530 - 1,375 725,491 239 727,105 Real Estate – Home Equity - 35 - 35 207,314 771 208,120 Consumer 3,666 1,852 - 5,518 319,415 584 325,517 Total $ 5,137 $ 2,692 $ - $ 7,829 $ 2,515,054 $ 2,297 $ 2,525,180 (1) Includes $ 0.3 Nonaccrual Loans . management deems the collectability of the principal and/or interest to principal and interest amounts contractually due are brought current The following table presents the amortized cost basis of loans in nonaccrual by class of loans. March 31, 2023 December 31, 2022 Nonaccrual Nonaccrual Nonaccrual Nonaccrual With No With 90 + Days With No With 90 + Days (Dollars in Thousands) ACL ACL Still Accruing ACL ACL Still Accruing Commercial, Financial and Agricultural $ - $ 12 $ - $ - $ 41 $ - Real Estate – Construction - - - - 17 - Real Estate – Commercial Mortgage 2,438 123 - 389 256 - Real Estate – Residential - 766 - - 239 - Real Estate – Home Equity - 682 - - 771 - Consumer - 568 - - 584 - Total Nonaccrual $ 2,438 $ 2,151 $ - $ 389 $ 1,908 $ - Collateral Dependent Loans. The following table presents the amortized cost basis of collateral-dependent March 31, 2023 December 31, 2022 Real Estate Non Real Estate Real Estate Non Real Estate (Dollars in Thousands) Secured Secured Secured Secured Commercial, Financial and Agricultural $ - $ - $ - $ - Real Estate – Construction - - - - Real Estate – Commercial Mortgage 2,207 - 389 - Real Estate – Residential - - 160 - Real Estate – Home Equity 231 - 130 - Consumer - - 21 - Total Collateral Dependent $ 2,438 $ - $ 700 $ - A loan is collateral dependent when the borrower is experiencing sale or operation of the underlying collateral. The Bank’s collateral dependent or commercial collateral types. or internal evaluations, adjusted for selling costs or other amounts to be deducted Residential Real Estate Loans In Process of Foreclosure . 0.4 and $ 0.6 For the three-month period ended March 31, 2023, the Company no t modify any loans made to borrowers experiencing financial difficulty. Credit Risk Management . procedures designed to maximize loan income within an acceptable level approve these policies and procedures on a regular basis (at least annually). Reporting systems are used to monitor loan originations, loan quality, loans and potential problem loans. monitor asset quality trends and the appropriateness of credit policies. concentration risk is monitored. of risk, client concentrations, industry group, loan type, geographic area, or of the loan portfolio are monitored and reported to the Board on a quarterly basis and Board approved credit policies governing exposure limits and underwriting the Company’s loan portfolio Commercial, Financial, and Agricultural – Loans in this category with consideration given to underlying collateral and personal or ratio limits that require a borrower’s cash flow to be sufficient The majority of these loans are secured by the assets being financed or other business assets such equipment. governed by established policy guidelines. Real Estate Construction – Loans in this category consist of short-term and construction/permanent loans made to individuals and investors to finance rehabilitation of real property. secured by the property being financed, including 1-4 family residential properties occupied or investment in nature. based upon estimates of costs and value associated with the completed project. party appraisals and evaluations. of funds for construction loans is made in relation to the progress of the project and site inspections. Real Estate Commercial Mortgage – Loans in this category consists of commercial owner-occupied or investment in nature. with consideration given to underlying real estate collateral and coverage ratios and loan to value ratios specific to the property type. appraisals and evaluations. Real Estate Residential – Residential mortgage loans held in the Company’s ability to make scheduled payments with full consideration to underwriting assets, and other financial resources, credit history, residential properties. originate sub-prime loans. Real Estate Home Equity – Home equity loans and lines are made to qualified individuals by senior or junior mortgage liens on owner-occupied favorable credit history combined with supportive income and debt ratio established policy guidelines. Consumer Loans – This loan portfolio includes personal installment loans, lines of credit. establishes maximum debt to income ratios, minimum credit scores, and includes receipt of credit reports. Credit Quality Indicators . into risk categories based on relevant information about the ability of borrowers to information, historical payment performance, credit documentation, factors. relationships over a predetermined amount and review of smaller balance homogenous noted below for categorizing and managing its criticized loans. and are not considered criticized. Special Mention – Loans in this category are presently protected from loss, but cause future problems. the ordinary amount of attention is warranted for these loans. Substandard – Loans in this category exhibit well-defined weaknesses that would These loans are no longer adequately protected due to well-defined borrower. Doubtful – Loans in this category have all the weaknesses inherent in a loan categorized the weaknesses make collection or liquidation in full, on the basis of questionable and improbable. Performing/Nonperforming – Loans within certain homogenous but are monitored for credit quality via the aging status of the loan and is updated on an on-going basis dependent upon improvement and The following table summarizes gross loans held for investment and origination and internally assigned credit risk ratings (refer to Credit Risk Management Term Revolving (Dollars in Thousands) 2023 2022 2021 2020 2019 Prior Loans Total Commercial, Financial, Agriculture: Pass $ 9,753 $ 86,415 $ 40,206 $ 17,534 $ 12,291 $ 15,965 $ 49,582 $ 231,746 Special Mention 1,200 - 748 71 2 47 2,322 4,390 Substandard - 80 - - 4 43 - 127 Total $ 10,953 $ 86,495 $ 40,954 $ 17,605 $ 12,297 $ 16,055 $ 51,904 $ 236,263 Current-Period Gross Writeoffs $ - $ 105 $ 22 $ 14 $ - $ 10 $ 13 $ 164 Real Estate - Construction: Pass $ 34,114 $ 149,982 $ 52,697 $ 7,275 $ 397 $ 123 $ 6,881 $ 251,469 Special Mention - - 859 25 453 - - 1,337 Substandard - - - 1,097 - - - 1,097 Total $ 34,114 $ 149,982 $ 53,556 $ 8,397 $ 850 $ 123 $ 6,881 $ 253,903 Real Estate - Commercial Mortgage: Pass $ 34,848 $ 245,205 $ 159,795 $ 131,444 $ 51,973 $ 137,449 $ 26,056 $ 786,770 Special Mention 995 339 992 240 1,402 2,819 300 7,087 Substandard - 822 966 753 642 763 635 4,581 Total $ 35,843 $ 246,366 $ 161,753 $ 132,437 $ 54,017 $ 141,031 $ 26,991 $ 798,438 Current-Period Gross Writeoffs $ - $ - $ - $ - $ - $ 120 $ - $ 120 Real Estate - Residential: Pass $ 133,468 $ 436,089 $ 92,988 $ 44,541 $ 28,365 $ 80,711 $ 9,109 $ 825,271 Special Mention - 93 356 525 - 632 - 1,606 Substandard - 1,042 1,133 1,725 953 3,054 - 7,907 Total $ 133,468 $ 437,224 $ 94,477 $ 46,791 $ 29,318 $ 84,397 $ 9,109 $ 834,784 Real Estate - Home Equity: Performing $ - $ 51 $ 133 $ 12 $ 387 $ 1,192 $ 204,784 $ 206,559 Nonperforming - - - - 14 76 592 682 Total $ - $ 51 $ 133 $ 12 $ 401 $ 1,268 $ 205,376 $ 207,241 Consumer: Performing $ 15,735 $ 122,092 $ 100,617 $ 32,203 $ 17,726 $ 12,242 $ 5,072 $ 305,687 Nonperforming - 269 170 19 84 26 - 568 Total $ 15,735 $ 122,361 $ 100,787 $ 32,222 $ 17,810 $ 12,268 $ 5,072 $ 306,255 Current-Period Gross Writeoffs $ 646 $ 915 $ 488 $ 110 $ 113 $ 47 $ 47 $ 2,366 |
MORTGAGE BANKING ACTIVITIES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Mortgage Banking Activities [Abstract] | |
Mortgage Banking Activities | NOTE 4 – MORTGAGE BANKING ACTIVITIES The Company’s mortgage loan pipeline price risk, utilization of warehouse lines to fund secondary servicing. Residential Mortgage Loan Production The Company originates, markets, and services conventional and conforming fixed rate residential mortgage loans are held for sale in the secondary residential mortgage loans may be held for investment. market prices are the primary drivers of origination revenue. Residential mortgage loan commitments are generally outstanding for 30 commitment to originate a residential mortgage loan to when the closed commitments are subject to both credit and price risk. collateral requirements, which are generally accepted by the secondary loan markets. fluctuations and is partially managed through forward sales of residential mortgage securities, or TBAs) or mandatory delivery commitments with investors. The unpaid principal balance of residential mortgage loans held for sale, notional mortgage loan commitments and forward contract sales and their related fair values March 31, 2023 December 31, 2022 Unpaid Principal Unpaid Principal (Dollars in Thousands) Balance/Notional Fair Value Balance/Notional Fair Value Residential Mortgage Loans Held for Sale $ 54,442 $ 55,118 $ 54,488 $ 54,635 Residential Mortgage Loan Commitments ("IRLCs") (1) 51,984 1,346 36,535 819 Forward Sales Contracts (2) 34,000 (216) 15,500 187 $ 56,248 $ 55,641 (1) Recorded in other assets at fair value (2) Recorded in other liabilities and other assets at fair value At March 31, 2023, the Company had $ 0.3 0.3 loans were on nonaccrual status. At December 31, 2022, the Company had 0.6 89 days past due and $ 0.1 Mortgage banking revenue was as follows: Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Net realized gains on sales of mortgage loans $ 3,192 $ 5,136 Net change in unrealized gain on mortgage loans held for sale 529 (975) Net change in the fair value of mortgage loan commitments (IRLCs) 527 (141) Net change in the fair value of forward sales contracts (402) 857 Pair-Offs on net settlement of forward sales contracts (1) 2,255 Mortgage servicing rights additions 1,034 632 Net origination fees 2,116 1,182 Total mortgage banking $ 6,995 $ 8,946 Residential Mortgage Servicing The Company may retain the right to service residential mortgage loans others is the primary driver of servicing revenue. The following represents a summary of mortgage servicing rights. (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of residential mortgage loans serviced for others 3,232 2,975 Outstanding principal balance of residential mortgage loans serviced $ 1,011,366 $ 895,145 Weighted average 4.33% 4.19% Remaining contractual term (in months) 339 345 Conforming conventional loans serviced by the Company are sold to Federal recourse basis, whereby foreclosure losses are generally serviced by the Company are secured through the Government National insured against loss by the Federal Housing Administration or partially guaranteed March 31, 2023, the servicing portfolio balance consisted of the following 48 %), GNMA ( 1 %), and private investor ( 51 %). The Company had no 0.3 December 31, 2022, respectively. and other liabilities, respectively, and March 31, 2022, the Company repurchased $ 0.9 0.4 When delinquent residential loans are repurchased, the Company has GNMA pools. Activity in the capitalized mortgage servicing rights was as follows: Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Beginning balance $ 6,067 $ 3,774 Additions due to loans sold with servicing retained 1,135 632 Deletions and amortization (401) (405) Ending balance $ 6,801 $ 4,001 At March 31, 2023, we recorded the sale of $ 334 pending FNMA approval. 2.3 1.38 million were recorded as a secured borrowing in Other Liabilities within the Consolidated Subsequent to March 31, 2023, FNMA approval was obtained. The Company did no t record any permanent impairment losses on mortgage servicing rights for the 2023 or 2022. The key unobservable inputs used in determining the fair value of the Company’s March 31, 2023 December 31, 2022 Minimum Maximum Minimum Maximum Discount rates 9.51% 12.00% 9.50% 12.00% Annual prepayment speeds 7.12% 19.55% 12.33% 20.45% Cost of servicing (per loan) $ 85 $ 95 $ 85 $ 95 Changes in residential mortgage interest rates directly affect servicing rights. estimated loan curtailment, anticipated defaults, and other relevant factors. 21.20 % at March 31, 2023 and 17.22 % at December 31, 2022. Warehouse The Company has the following warehouse lines of credit and master repurchase March 31, 2023. Amounts (Dollars in Thousands) Outstanding $ 75 2.00% 3.00% , with a floor rate of 3.25% . 0.5 8,309 $ 60 December 2023 . 2.25% , to 3.25% . 13,864 Total Warehouse $ 22,173 Warehouse 50.2 million. At March 31, 2023, the Company had residential mortgage pledged as collateral under the above warehouse lines of credit and master repurchase covenants which include certain financial requirements, including assets, and maximum debt to net worth ratio, as defined in the agreements. covenants at March 31, 2023. The Company has extended a $ 50 51 % owned subsidiary entity. transactions under this line of credit are eliminated in the Company’s total short term borrowings noted on the Consolidated Statement of 31, 2023 and December 31, 2022 was $ 32.8 22.9 |
DERIVATIVES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Derivatives [Abstract] | |
Derivatives | NOTE 5 – DERIVATIVES The Company enters into derivative financial instruments to manage exposures receipt or payment of future known and uncertain cash amounts, the value of derivative financial instruments are used to manage differences in expected cash receipts and its known or expected cash payments principally Cash Flow Hedges of Interest Rate Risk Interest rate swaps with notional amounts totaling $ 30 debt. 2.50 % and receive a variable interest rate based on three-month LIBOR plus a weighted average margin of 1.83 %. For derivatives designated and that qualify as cash flow hedges of interest rate risk, accumulated other comprehensive income (“AOCI”) and subsequently which the hedged transaction affects earnings. Amounts will be reclassified to interest expense as interest payments are made on the The following table reflects the cash flow hedges included in the consolidated Statement of Financial Notional Fair Weighted Average (Dollars in Thousands) Condition Location Amount Value March 31, 2023 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 5,394 7.3 December 31, 2022 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 6,195 7.5 The following table presents the net gains (losses) recorded in AOCI and the flow derivative instruments (interest rate swaps related to subordinated Amount of (Loss) Amount of Gain Gain Recognized (Loss) Reclassified (Dollars in Thousands) Category in AOCI from AOCI to Income Three months ended March 31, 2023 Interest expense $ (598) $ 309 Three months ended March 31, 2022 Interest expense 1,370 (28) The Company estimates there will be approximately $ 1.2 months. The Company had a collateral liability of $ 5.4 5.8 |
LEASES |
3 Months Ended |
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Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE 6 – LEASES Operating leases in which the Company is the lessee are recorded as operating liabilities, included in other assets and liabilities, respectively, The Company’s operating 1 43 leases are not complex and do not contain residual value guarantees, variable made in applying the requirements of Topic Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term. At March 31, 2023, the operating lease ROU assets and liabilities were $ 24.7 25.1 31, 2022, ROU assets and liabilities were $ 22.3 22.7 leases or any significant lessor agreements. The table below summarizes our lease expense and other information related Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Operating lease expense $ 700 $ 384 Short-term lease expense 139 179 Total lease expense $ 839 $ 563 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 706 $ 429 Right-of-use assets obtained in exchange for new operating lease liabilities 2,906 592 Weighted average 18.6 24.9 Weighted average 3.3% 2.0% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) March 31, 2023 2023 $ 2,354 2024 2,666 2025 2,438 2026 2,320 2027 2,245 2028 and thereafter 21,045 Total $ 33,068 Less: Interest (8,002) Present Value $ 25,066 At March 31, 2023, the Company had no A related party is the lessor in an operating lease with the Company. 0.2 through 2052, for an aggregate remaining obligation of $ 2.4 |
EMPLOYEE BENEFIT PLANS |
3 Months Ended |
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Mar. 31, 2023 | |
Employee Benefit Plans [Abstract] | |
Employee benefit plans | NOTE 7 - EMPLOYEE BENEFIT PLANS The Company has a defined benefit pension plan covering substantially all full-time Supplemental Executive Retirement Plan (“SERP”) and a Supplemental executive officers. December 31, 2019. were not covered by the SERP. The components of the net periodic benefit cost for the Company’s Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Service Cost $ 872 $ 1,572 Interest Cost 1,458 1,166 Expected Return on Plan Assets (1,701) (2,675) Prior Service Cost Amortization 1 4 Net Loss Amortization 234 428 Pension Settlement - 209 Net Periodic Benefit Cost $ 864 $ 704 Discount Rate Used for Benefit Cost 5.63% 3.11% Long-term Rate of Return on Assets 6.75% 6.75% The components of the net periodic benefit cost for the Company's SERP plans were as follows: Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Service Cost $ 4 $ 8 Interest Cost 130 79 Prior Service Cost Amortization 38 69 Net Loss Amortization (155) 180 Net Periodic Benefit Cost $ 17 $ 336 Discount Rate Used for Benefit Cost 5.45% 2.80% The service cost component of net periodic benefit cost is reflected in income. of income. |
COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | NOTE 8 - COMMITMENTS AND CONTINGENCIES Lending Commitments . to meet the financing needs of its clients. credit. The Company’s maximum exposure the contractual amount of those instruments. letters of credit as it does for on-balance sheet instruments. obligations were as follows: March 31, 2023 December 31, 2022 (Dollars in Thousands) Fixed Variable Total Fixed Variable Total Commitments to Extend Credit $ 248,660 $ 577,180 $ 825,840 $ 243,614 $ 531,873 $ 775,487 Standby Letters of Credit 5,677 - 5,677 5,619 - 5,619 Total $ 254,337 $ 577,180 $ 831,517 $ 249,233 $ 531,873 $ 781,106 (1) Commitments include unfunded loans, revolving Commitments to extend credit are agreements to lend to a client so long as there is no violation of contract. many of the commitments are expected to expire without being drawn upon, represent future cash requirements. Standby letters of credit are conditional commitments issued by party. general, management does not anticipate any material losses as a result of potential losses arising from such transactions are reserved for in the same manner facilities. For both on- and off-balance sheet financial instruments, the Company deemed necessary. obtained upon extension of credit is based on management’s include deposits held in financial institutions; U.S. Treasury property, plant and The allowance for credit losses for off-balance sheet credit commitments adjusted as a provision for credit loss expense and is recorded in other liabilities. allowance. Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Beginning Balance $ 2,989 $ 2,897 Provision for Credit Losses (156) 79 Ending Balance $ 2,833 $ 2,976 Other Commitments. In the normal course of business, the Company enters into leases. See Note 6 – Leases for additional information on the maturity of the the Company has an outstanding commitment of up to $ 1.0 technology solutions for community banks and a commitment of up to $ 7.0 2023, the Company had contributed $ 0.3 2.8 December 31, 2022, the Company had contributed $ 0.2 1.0 commitment. Contingencies . there are no on the consolidated results of operations, financial position, or cash flows Indemnification Obligation . indemnify the Visa U.S.A. antitrust lawsuits challenging the practices of Visa U.S.A. network, obtained Class B shares of Visa, funded a litigation reserve for the Covered Litigation resulting in a reduction first quarter of 2011, the Company sold its remaining contract with the purchaser of the shares that requires a payment to the revisions to the conversion ratio for its Class B shares. earnings in the period incurred. liquidated and at which time the aforementioned swap contract will be terminated. 0.3 million. |
FAIR VALUE MEASUREMENTS |
3 Months Ended |
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Mar. 31, 2023 | |
Fair Value measurements [Abstract] | |
Fair value measurements | NOTE 9 – FAIR VALUE The fair value of an asset or liability is the price that would be received to sell that asset or paid transaction occurring in the principal market (or most advantageous market in liability. approach and/or the cost approach. assumptions that market participants would use in pricing an asset or liability. valuation inputs that gives the highest priority to quoted prices in active markets priority to unobservable inputs. ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting ability to access at the measurement date . ● Level 2 Inputs - Inputs other than quoted prices or indirectly. These might or similar assets or liabilities in markets that are not active, inputs other liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) corroborated, by market data by correlation or other means . ● Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect assumptions about the assumptions that market participants would Assets and Liabilities Measured at Fair Value Securities Available for Sale. U.S. Treasury securities are reported at fair value available for sale are reported at fair value utilizing Level 2 inputs. from an independent pricing service. spreads, cash flows, the U.S. Treasury yield curve, and conditions, among other things. In general, the Company does not purchase securities that have a complicated traditional investments, nearly all of which are U.S. Treasury general obligation or revenue-based municipal bonds. will validate prices supplied by the independent pricing service by compari source. Loans Held for Sale . using either quoted secondary-market prices or investor commitments. using quoted prices for a similar asset or assets, adjusted for the specific attributes of participants. Mortgage Banking Derivative Instruments. The fair values of interest rate lock commitments (“IRLCs”) are derived by valuation models incorporating market pricing for instruments with similar characteristics, investor commitment prices for best effort IRLCs which have servicing rights expected to be recorded upon sale of the loans, net estimated costs to originate and are therefore classified as Level 3 within the fair value hierarchy. observable market pricing for similar instruments and are therefore Interest Rate Swap. The Company’s derivative positions models generally accepted in the financial services industry and that external market data providers. Fair Value . valuation represents the amount due and payable to the counterparty based upon period. At March 31, 2023, there were no 0.1 A summary of fair values for assets and liabilities recorded at fair Level 1 Level 2 Level 3 Total (Dollars in Thousands) Inputs Inputs Inputs Value March 31, 2023 ASSETS: Securities Available for U.S. Government Treasury $ 22,373 $ - $ - $ 22,373 U.S. Government Agency - 174,290 - 174,290 States and Political Subdivisions - 41,479 - 41,479 Mortgage-Backed Securities - 69,014 - 69,014 Corporate Debt Securities - 88,432 - 88,432 Loans Held for Sale - 55,118 - 55,118 Interest Rate Swap Derivative - 5,394 - 5,394 Mortgage Banking IRLC Derivative - - 1,346 1,346 LIABILITIES: Mortgage Banking Hedge Derivative $ - $ 216 $ - $ 216 December 31, 2022 ASSETS: Securities Available for U.S. Government Treasury $ 22,050 $ - $ - $ 22,050 U.S. Government Agency - 186,052 - 186,052 States and Political Subdivisions - 40,329 - 40,329 Mortgage-Backed Securities - 69,405 - 69,405 Corporate Debt Securities - 88,236 - 88,236 Loans Held for Sale - 54,635 - 54,635 Interest Rate Swap Derivative - 6,195 - 6,195 Mortgage Banking Hedge Derivative - 187 - 187 Mortgage Banking IRLC Derivative - - 819 819 Mortgage Banking Activities . 4.3 and $ 6.7 4.3 13.6 three months ended March 31, 2022. inception of the IRLC to the Consolidated Statement of Financial Condition IRLCs transferred out of Level 3 represent IRLCs that were funded and moved Assets Measured at Fair Value Certain assets are measured at fair value on a non-recurring basis (i.e., the but are subject to fair value adjustments in certain circumstances). The following is a description of valuation methodologies used for assets measured Collateral Dependent Loans . costs. regulations. estimation involved in the real estate appraisal process. basis for additional impairment and adjusted accordingly. periods. 2.4 no carrying value of $ 0.7 0.1 Other Real Estate Owned . and reported at fair value through a charge-off estimated cost to sell. conformance with banking regulations. adjustments as necessary. involved in the real estate valuation process. Mortgage Servicing Rights . upon the fair value of the rights as compared to the carrying amount. estimated prepayment speeds of the underlying mortgage loans serviced and underlying loans (predominantly loan type and note interest rate). discount rate, weighted average prepayment speed, and the cost of loan provided in Note 4 – Mortgage Banking Activities. no allowance for loan servicing rights. Assets and Liabilities Disclosed at Fair Value The Company is required to disclose the estimated fair value of financial instruments, practical to estimate fair value and the following is a description of valuation Cash and Short-Term The carrying amount of cash and short-term investments is used to approximate the short time frame to maturity and as such assets do not present unanticipated Securities Held to Maturity . caption “Assets and Liabilities Measured at Fair Value Loans. techniques based upon projected cash flows and estimated discount Recognition and Measurement of Financial Assets and Financial , the values reported reflect the incorporation of a liquidity discount to meet the objective of “exit price” valuation. Deposits. amounts payable on demand at the reporting date. The fair value of fixed maturity value techniques and rates currently offered for deposits of Subordinated Notes Payable. flows and estimated discount rates as well as rates being offered Short-Term projected cash flows and estimated discount rates as well as rates being offered A summary of estimated fair values of significant financial instruments not March 31, 2023 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 84,549 $ 84,549 $ - $ - Short-Term Investments 303,403 303,403 - - Investment Securities, Held to Maturity 651,755 437,174 175,026 - Equity Securities (1) 1,883 - 1,883 - Other Equity Securities (2) 2,848 - 2,848 - Mortgage Servicing Rights 6,801 - - 9,541 Loans, Net of Allowance for Credit Losses 2,610,377 - - 2,464,688 LIABILITIES: Deposits $ 3,823,920 $ - $ 3,284,249 $ - Short-Term 26,632 - 26,632 - Subordinated Notes Payable 52,887 - 45,365 - Long-Term Borrowings 463 - 464 - December 31, 2022 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 72,114 $ 72,114 $ - $ - Short-Term Investments 528,536 528,536 - - Investment Securities, Held to Maturity 660,774 431,733 180,968 - Equity Securities (1) 10 - 10 - Other Equity Securities (2) 2,848 - 2,848 - Mortgage Servicing Rights 6,067 - - 8,503 Loans, Net of Allowance for Credit Losses 2,500,444 - - 2,357,533 LIABILITIES: Deposits $ 3,939,317 $ - $ 3,310,383 $ - Short-Term 56,793 - 56,793 - Subordinated Notes Payable 52,887 - 45,763 - Long-Term Borrowings 513 - 513 - Not readily marketable securities - reflected (2) Accounted for under the equity method – not readily All non-financial instruments are excluded from the above table. aggregate fair value amounts presented do not represent the underlying |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
3 Months Ended |
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Mar. 31, 2023 | |
Accumulated other comprehensive income (loss) [Abstract] | |
Accumulated other comprehensive income (loss) | NOTE 10 – ACCUMULATED The amounts allocated to accumulated other comprehensive income Accumulated Securities Other Available Interest Rate Retirement Comprehensive (Dollars in Thousands) Swap Plans Balance as of January 1, 2023 $ (37,349) $ 4,625 $ (4,505) $ (37,229) Other comprehensive income (loss) during the period 5,751 (598) - 5,153 Balance as of March 31, 2023 $ (31,598) $ 4,027 $ (4,505) $ (32,076) Balance as of January 1, 2022 $ (4,588) $ 1,530 $ (13,156) $ (16,214) Other comprehensive (loss) income during the period (19,055) 1,370 156 (17,529) Balance as of March 31, 2022 $ (23,643) $ 2,900 $ (13,000) $ (33,743) |
BUSINESS AND BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Business and Basis of Presentation [Abstract] | |
Nature of Operations | Nature of Operations . related services to individual and corporate clients through its subsidiary, Georgia, and Alabama. government agencies and undergoes periodic examinations |
Basis of Presentation | Basis of Presentation . and its wholly owned subsidiary, have been eliminated. The accompanying unaudited consolidated financial statements have principles for interim financial information and with the instructions to Form they do not include all of the information and notes required by generally accepted statements. presentation have been included. The Consolidated Statement of Financial Condition at December statements at that date, but does not include all of the information and notes complete financial statements. Company’s annual report |
Accounting Standards Updates | Accounting Standards Updates Adoption of New Accounting Standard, “Financial Instruments – Credit Losses (Topic the accounting guidance for troubled debt restructurings in Accounting Troubled Debt Restructurings by Creditors 2016-13, “Financial Instruments – Credit Losses (Topic 02 also requires that public business entities disclose current-period and net investments in leases within the scope of Subtopic 326-20, “Financial Cost.” Proposed Accounting Standards , ASU : entities to amortize leasehold improvements associated with common control ASU 2023-01 also provides certain practical expedients applicable to private 01 will be effective for us on January 1, 2024, though early adoption 2023-01 will have on its consolidated financial statements and related disclosures. ASU No. : Accounting for Investments in Tax Structures Using the Proportional Amortization Method.” ASU 2023-02 investments in tax credit structures. ASU 2023-02 allows entities to elect to account proportional amortization method, regardless of the program giving only available for qualifying tax equity investments in low-income on January 1, 2024, though early adoption is permitted. consolidated financial statements and related disclosures. |
INVESTMENT SECURITIES (Tables) |
3 Months Ended |
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Mar. 31, 2023 | |
Investments Securities [Abstract] | |
Schedule of amortized cost and related market value of investment securities available-for-sale | NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related fair value of investment securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) unrealized gains and losses. Available for Amortized Unrealized Unrealized Allowance for Fair (Dollars in Thousands) Cost Gains Losses Credit Losses Value March 31, 2023 U.S. Government Treasury $ 23,984 $ - $ 1,611 $ - $ 22,373 U.S. Government Agency 184,294 127 10,131 - 174,290 States and Political Subdivisions 47,143 7 5,663 (8) 41,479 Mortgage-Backed Securities (1) 79,148 3 10,137 - 69,014 Corporate Debt Securities 96,144 34 7,718 (28) 88,432 Other Securities (2) 7,355 - - - 7,355 Total $ 438,068 $ 171 $ 35,260 $ (36) $ 402,943 December 31, 2022 U.S. Government Treasury $ 23,977 $ 1 $ 1,928 $ - $ 22,050 U.S. Government Agency 198,888 27 12,863 - 186,052 States and Political Subdivisions 47,197 - 6,855 (13) 40,329 Mortgage-Backed Securities (1) 80,829 2 11,426 - 69,405 Corporate Debt Securities 97,119 19 8,874 (28) 88,236 Other Securities (2) 7,222 - - - 7,222 Total $ 455,232 $ 49 $ 41,946 $ (41) $ 413,294 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value March 31, 2023 U.S. Government Treasury $ 457,446 $ - $ 20,272 $ 437,174 Mortgage-Backed Securities (1) 194,309 19 19,302 175,026 Total $ 651,755 $ 19 $ 39,574 $ 612,200 December 31, 2022 U.S. Government Treasury $ 457,374 $ - $ 25,641 $ 431,733 Mortgage-Backed Securities (1) 203,370 8 22,410 180,968 Total $ 660,744 $ 8 $ 48,051 $ 612,701 (1) (2) Includes Federal Home Loan Bank and Federal Reserve Bank stock, 2.3 5.1 respectively, 2.1 5.1 |
Schedule of investment securities with maturity distribution based on contractual maturities | Available for Held to Maturity (Dollars in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 36,233 $ 35,696 $ - $ - Due after one year through five years 159,994 147,344 457,446 437,174 Due after five year through ten years 50,961 42,970 - - Mortgage-Backed Securities 79,148 69,014 194,309 175,026 U.S. Government Agency 104,377 100,564 - - Other Securities 7,355 7,355 - - Total $ 438,068 $ 402,943 $ 651,755 $ 612,200 |
Schedule of investment securities with continuous unrealized loss position | Less Than Greater Than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses March 31, 2023 Available for U.S. Government Treasury $ 994 $ - $ 19,481 $ 1,611 $ 20,475 $ 1,611 U.S. Government Agency 29,035 354 133,057 9,777 162,092 10,131 States and Political Subdivisions - - 39,905 5,663 39,905 5,663 Mortgage-Backed Securities - - 68,892 10,137 68,892 10,137 Corporate Debt Securities 10,009 215 74,472 7,503 84,481 7,718 Total $ 40,038 $ 569 $ 335,807 $ 34,691 $ 375,845 $ 35,260 Held to Maturity U.S. Government Treasury 4,827 106 432,346 20,166 437,173 20,272 Mortgage-Backed Securities 9,360 297 164,217 19,005 173,577 19,302 Total $ 14,187 $ 403 $ 596,563 $ 39,171 $ 610,750 $ 39,574 December 31, 2022 Available for U.S. Government Treasury $ 983 $ - $ 19,189 $ 1,928 $ 20,172 $ 1,928 U.S. Government Agency 63,112 2,572 113,004 10,291 176,116 12,863 States and Political Subdivisions 1,425 2 38,760 6,853 40,185 6,855 Mortgage-Backed Securities 6,594 959 60,458 10,467 67,052 11,426 Corporate Debt Securities 26,959 878 58,601 7,996 85,560 8,874 Total $ 99,073 $ 4,411 $ 290,012 $ 37,535 $ 389,085 $ 41,946 Held to Maturity U.S. Government Treasury 177,552 11,018 254,181 14,623 431,733 25,641 Mortgage-Backed Securities 88,723 6,814 91,462 15,596 180,185 22,410 Total $ 266,275 $ 17,832 $ 345,643 $ 30,219 $ 611,918 $ 48,051 |
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables) |
3 Months Ended |
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Mar. 31, 2023 | |
Loans Held For Investment And Allowance For Credit Losses [Abstract] | |
Schedule of composition of the loan portfolio | (Dollars in Thousands) March 31, 2023 December 31, 2022 Commercial, Financial and Agricultural $ 236,263 $ 247,362 Real Estate – Construction 253,903 234,519 Real Estate – Commercial Mortgage 798,438 782,557 Real Estate – Residential (1) 834,784 727,105 Real Estate – Home Equity 207,241 208,120 Consumer (2) 306,255 325,517 Loans Held For Investment, Net of Unearned Income $ 2,636,884 $ 2,525,180 (1) Includes loans in process balances of $ 8.5 6.1 (2) Includes overdraft balances of $ 0.9 1.1 |
Schedule of activity in the allowance for loan losses by portfolio class | Commercial, Real Estate Financial, Real Estate Commercial Real Estate Real Estate (Dollars in Thousands) Agricultural Construction Mortgage Residential Home Equity Consumer Total Three Months Ended March 31, 2023 Beginning Balance $ 1,506 $ 2,654 $ 4,815 $ 10,409 $ 1,864 $ 3,488 $ 24,736 Provision for Credit Losses 78 704 7 1,183 (10) 1,329 3,291 Charge-Offs (164) - (120) - - (2,366) (2,650) Recoveries 95 1 8 57 25 944 1,130 Net (Charge-Offs) Recoveries (69) 1 (112) 57 25 (1,422) (1,520) Ending Balance $ 1,515 $ 3,359 $ 4,710 $ 11,649 $ 1,879 $ 3,395 $ 26,507 Three Months Ended March 31, 2022 Beginning Balance $ 2,191 $ 3,302 $ 5,810 $ 4,129 $ 2,296 $ 3,878 $ 21,606 Provision for Credit Losses (161) (714) (181) 314 (405) 1,068 (79) Charge-Offs (73) - (266) - (33) (1,402) (1,774) Recoveries 165 8 29 27 58 716 1,003 Net (Charge-Offs) Recoveries 92 8 (237) 27 25 (686) (771) Ending Balance $ 2,122 $ 2,596 $ 5,392 $ 4,470 $ 1,916 $ 4,260 $ 20,756 |
Schedule of aging of the recorded investment in accruing past due loans by class of loans | 30-59 60-89 90 + Total Total Nonaccrual Total (Dollars in Thousands) DPD DPD DPD Past Due Current Loans Loans March 31, 2023 Commercial, Financial and Agricultural $ 248 $ 4 $ - $ 252 $ 235,999 $ 12 $ 236,263 Real Estate – Construction 1,137 - - 1,137 252,766 - 253,903 Real Estate – Commercial Mortgage 64 66 - 130 795,747 2,561 798,438 Real Estate – Residential (1) 1,040 - - 1,040 832,978 766 834,784 Real Estate – Home Equity 54 - - 54 206,505 682 207,241 Consumer 2,175 273 - 2,448 303,239 568 306,255 Total $ 4,718 $ 343 $ - $ 5,061 $ 2,627,234 $ 4,589 $ 2,636,884 December 31, 2022 Commercial, Financial and Agricultural $ 109 $ 126 $ - $ 235 $ 247,086 $ 41 $ 247,362 Real Estate – Construction 359 - - 359 234,143 17 234,519 Real Estate – Commercial Mortgage 158 149 - 307 781,605 645 782,557 Real Estate – Residential 845 530 - 1,375 725,491 239 727,105 Real Estate – Home Equity - 35 - 35 207,314 771 208,120 Consumer 3,666 1,852 - 5,518 319,415 584 325,517 Total $ 5,137 $ 2,692 $ - $ 7,829 $ 2,515,054 $ 2,297 $ 2,525,180 (1) Includes $ 0.3 |
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans | March 31, 2023 December 31, 2022 Nonaccrual Nonaccrual Nonaccrual Nonaccrual With No With 90 + Days With No With 90 + Days (Dollars in Thousands) ACL ACL Still Accruing ACL ACL Still Accruing Commercial, Financial and Agricultural $ - $ 12 $ - $ - $ 41 $ - Real Estate – Construction - - - - 17 - Real Estate – Commercial Mortgage 2,438 123 - 389 256 - Real Estate – Residential - 766 - - 239 - Real Estate – Home Equity - 682 - - 771 - Consumer - 568 - - 584 - Total Nonaccrual $ 2,438 $ 2,151 $ - $ 389 $ 1,908 $ - |
Amortized cost basis of collateral-dependent loans | March 31, 2023 December 31, 2022 Real Estate Non Real Estate Real Estate Non Real Estate (Dollars in Thousands) Secured Secured Secured Secured Commercial, Financial and Agricultural $ - $ - $ - $ - Real Estate – Construction - - - - Real Estate – Commercial Mortgage 2,207 - 389 - Real Estate – Residential - - 160 - Real Estate – Home Equity 231 - 130 - Consumer - - 21 - Total Collateral Dependent $ 2,438 $ - $ 700 $ - |
Summary of gross loans held for investment by years of origination | Term Revolving (Dollars in Thousands) 2023 2022 2021 2020 2019 Prior Loans Total Commercial, Financial, Agriculture: Pass $ 9,753 $ 86,415 $ 40,206 $ 17,534 $ 12,291 $ 15,965 $ 49,582 $ 231,746 Special Mention 1,200 - 748 71 2 47 2,322 4,390 Substandard - 80 - - 4 43 - 127 Total $ 10,953 $ 86,495 $ 40,954 $ 17,605 $ 12,297 $ 16,055 $ 51,904 $ 236,263 Current-Period Gross Writeoffs $ - $ 105 $ 22 $ 14 $ - $ 10 $ 13 $ 164 Real Estate - Construction: Pass $ 34,114 $ 149,982 $ 52,697 $ 7,275 $ 397 $ 123 $ 6,881 $ 251,469 Special Mention - - 859 25 453 - - 1,337 Substandard - - - 1,097 - - - 1,097 Total $ 34,114 $ 149,982 $ 53,556 $ 8,397 $ 850 $ 123 $ 6,881 $ 253,903 Real Estate - Commercial Mortgage: Pass $ 34,848 $ 245,205 $ 159,795 $ 131,444 $ 51,973 $ 137,449 $ 26,056 $ 786,770 Special Mention 995 339 992 240 1,402 2,819 300 7,087 Substandard - 822 966 753 642 763 635 4,581 Total $ 35,843 $ 246,366 $ 161,753 $ 132,437 $ 54,017 $ 141,031 $ 26,991 $ 798,438 Current-Period Gross Writeoffs $ - $ - $ - $ - $ - $ 120 $ - $ 120 Real Estate - Residential: Pass $ 133,468 $ 436,089 $ 92,988 $ 44,541 $ 28,365 $ 80,711 $ 9,109 $ 825,271 Special Mention - 93 356 525 - 632 - 1,606 Substandard - 1,042 1,133 1,725 953 3,054 - 7,907 Total $ 133,468 $ 437,224 $ 94,477 $ 46,791 $ 29,318 $ 84,397 $ 9,109 $ 834,784 Real Estate - Home Equity: Performing $ - $ 51 $ 133 $ 12 $ 387 $ 1,192 $ 204,784 $ 206,559 Nonperforming - - - - 14 76 592 682 Total $ - $ 51 $ 133 $ 12 $ 401 $ 1,268 $ 205,376 $ 207,241 Consumer: Performing $ 15,735 $ 122,092 $ 100,617 $ 32,203 $ 17,726 $ 12,242 $ 5,072 $ 305,687 Nonperforming - 269 170 19 84 26 - 568 Total $ 15,735 $ 122,361 $ 100,787 $ 32,222 $ 17,810 $ 12,268 $ 5,072 $ 306,255 Current-Period Gross Writeoffs $ 646 $ 915 $ 488 $ 110 $ 113 $ 47 $ 47 $ 2,366 |
MORTGAGE BANKING ACTIVITIES (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Mortgage Banking Activities [Abstract] | |
Residential Mortgage Loan Production | March 31, 2023 December 31, 2022 Unpaid Principal Unpaid Principal (Dollars in Thousands) Balance/Notional Fair Value Balance/Notional Fair Value Residential Mortgage Loans Held for Sale $ 54,442 $ 55,118 $ 54,488 $ 54,635 Residential Mortgage Loan Commitments ("IRLCs") (1) 51,984 1,346 36,535 819 Forward Sales Contracts (2) 34,000 (216) 15,500 187 $ 56,248 $ 55,641 (1) Recorded in other assets at fair value (2) Recorded in other liabilities and other assets at fair value |
Mortgage banking revenue | Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Net realized gains on sales of mortgage loans $ 3,192 $ 5,136 Net change in unrealized gain on mortgage loans held for sale 529 (975) Net change in the fair value of mortgage loan commitments (IRLCs) 527 (141) Net change in the fair value of forward sales contracts (402) 857 Pair-Offs on net settlement of forward sales contracts (1) 2,255 Mortgage servicing rights additions 1,034 632 Net origination fees 2,116 1,182 Total mortgage banking $ 6,995 $ 8,946 |
Summary of mortgage servicing rights | (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of residential mortgage loans serviced for others 3,232 2,975 Outstanding principal balance of residential mortgage loans serviced $ 1,011,366 $ 895,145 Weighted average 4.33% 4.19% Remaining contractual term (in months) 339 345 |
Capitalized mortgage servicing rights | Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Beginning balance $ 6,067 $ 3,774 Additions due to loans sold with servicing retained 1,135 632 Deletions and amortization (401) (405) Ending balance $ 6,801 $ 4,001 |
Key unobservable inputs used in determining the fair value of mortgage servicing rights | March 31, 2023 December 31, 2022 Minimum Maximum Minimum Maximum Discount rates 9.51% 12.00% 9.50% 12.00% Annual prepayment speeds 7.12% 19.55% 12.33% 20.45% Cost of servicing (per loan) $ 85 $ 95 $ 85 $ 95 |
Warehouse Line Borrowings | Amounts (Dollars in Thousands) Outstanding $ 75 2.00% 3.00% , with a floor rate of 3.25% . 0.5 8,309 $ 60 December 2023 . 2.25% , to 3.25% . 13,864 Total Warehouse $ 22,173 |
DERIVATIVES (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Derivatives [Abstract] | |
Cash flow hedges included in the Consolidated Statement of Financial Condition | Statement of Financial Notional Fair Weighted Average (Dollars in Thousands) Condition Location Amount Value March 31, 2023 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 5,394 7.3 December 31, 2022 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 6,195 7.5 |
Net gains (losses) recorded in accumulated other comprehensive income | Amount of (Loss) Amount of Gain Gain Recognized (Loss) Reclassified (Dollars in Thousands) Category in AOCI from AOCI to Income Three months ended March 31, 2023 Interest expense $ (598) $ 309 Three months ended March 31, 2022 Interest expense 1,370 (28) |
LEASES (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of lease expense and other information related to operating leases | Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Operating lease expense $ 700 $ 384 Short-term lease expense 139 179 Total lease expense $ 839 $ 563 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 706 $ 429 Right-of-use assets obtained in exchange for new operating lease liabilities 2,906 592 Weighted average 18.6 24.9 Weighted average 3.3% 2.0% |
Summary of maturity of remaining lease liabilities | The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) March 31, 2023 2023 $ 2,354 2024 2,666 2025 2,438 2026 2,320 2027 2,245 2028 and thereafter 21,045 Total $ 33,068 Less: Interest (8,002) Present Value $ 25,066 |
EMPLOYEE BENEFIT PLANS (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Periodic Benefit Cost | Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Service Cost $ 872 $ 1,572 Interest Cost 1,458 1,166 Expected Return on Plan Assets (1,701) (2,675) Prior Service Cost Amortization 1 4 Net Loss Amortization 234 428 Pension Settlement - 209 Net Periodic Benefit Cost $ 864 $ 704 Discount Rate Used for Benefit Cost 5.63% 3.11% Long-term Rate of Return on Assets 6.75% 6.75% |
Supplemental Executive Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Periodic Benefit Cost | The components of the net periodic benefit cost for the Company's SERP plans were as follows: Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Service Cost $ 4 $ 8 Interest Cost 130 79 Prior Service Cost Amortization 38 69 Net Loss Amortization (155) 180 Net Periodic Benefit Cost $ 17 $ 336 Discount Rate Used for Benefit Cost 5.45% 2.80% |
COMMITMENTS AND CONTINGENCIES (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of amounts associated with the entities off-balance sheet obligations | March 31, 2023 December 31, 2022 (Dollars in Thousands) Fixed Variable Total Fixed Variable Total Commitments to Extend Credit $ 248,660 $ 577,180 $ 825,840 $ 243,614 $ 531,873 $ 775,487 Standby Letters of Credit 5,677 - 5,677 5,619 - 5,619 Total $ 254,337 $ 577,180 $ 831,517 $ 249,233 $ 531,873 $ 781,106 (1) Commitments include unfunded loans, revolving |
Allowance for credit losses for off-balance sheet credit commitments | Three Months Ended March 31, (Dollars in Thousands) 2023 2022 Beginning Balance $ 2,989 $ 2,897 Provision for Credit Losses (156) 79 Ending Balance $ 2,833 $ 2,976 |
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Fair Value measurements [Abstract] | |
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | Level 1 Level 2 Level 3 Total (Dollars in Thousands) Inputs Inputs Inputs Value March 31, 2023 ASSETS: Securities Available for U.S. Government Treasury $ 22,373 $ - $ - $ 22,373 U.S. Government Agency - 174,290 - 174,290 States and Political Subdivisions - 41,479 - 41,479 Mortgage-Backed Securities - 69,014 - 69,014 Corporate Debt Securities - 88,432 - 88,432 Loans Held for Sale - 55,118 - 55,118 Interest Rate Swap Derivative - 5,394 - 5,394 Mortgage Banking IRLC Derivative - - 1,346 1,346 LIABILITIES: Mortgage Banking Hedge Derivative $ - $ 216 $ - $ 216 December 31, 2022 ASSETS: Securities Available for U.S. Government Treasury $ 22,050 $ - $ - $ 22,050 U.S. Government Agency - 186,052 - 186,052 States and Political Subdivisions - 40,329 - 40,329 Mortgage-Backed Securities - 69,405 - 69,405 Corporate Debt Securities - 88,236 - 88,236 Loans Held for Sale - 54,635 - 54,635 Interest Rate Swap Derivative - 6,195 - 6,195 Mortgage Banking Hedge Derivative - 187 - 187 Mortgage Banking IRLC Derivative - - 819 819 |
Schedule of financial instruments with estimated fair values | March 31, 2023 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 84,549 $ 84,549 $ - $ - Short-Term Investments 303,403 303,403 - - Investment Securities, Held to Maturity 651,755 437,174 175,026 - Equity Securities (1) 1,883 - 1,883 - Other Equity Securities (2) 2,848 - 2,848 - Mortgage Servicing Rights 6,801 - - 9,541 Loans, Net of Allowance for Credit Losses 2,610,377 - - 2,464,688 LIABILITIES: Deposits $ 3,823,920 $ - $ 3,284,249 $ - Short-Term 26,632 - 26,632 - Subordinated Notes Payable 52,887 - 45,365 - Long-Term Borrowings 463 - 464 - December 31, 2022 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 72,114 $ 72,114 $ - $ - Short-Term Investments 528,536 528,536 - - Investment Securities, Held to Maturity 660,774 431,733 180,968 - Equity Securities (1) 10 - 10 - Other Equity Securities (2) 2,848 - 2,848 - Mortgage Servicing Rights 6,067 - - 8,503 Loans, Net of Allowance for Credit Losses 2,500,444 - - 2,357,533 LIABILITIES: Deposits $ 3,939,317 $ - $ 3,310,383 $ - Short-Term 56,793 - 56,793 - Subordinated Notes Payable 52,887 - 45,763 - Long-Term Borrowings 513 - 513 - Not readily marketable securities - reflected (2) Accounted for under the equity method – not readily |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accumulated other comprehensive income (loss) [Abstract] | |
Schedule of activity in accumulated other comprehensive loss, net of tax | Accumulated Securities Other Available Interest Rate Retirement Comprehensive (Dollars in Thousands) Swap Plans Balance as of January 1, 2023 $ (37,349) $ 4,625 $ (4,505) $ (37,229) Other comprehensive income (loss) during the period 5,751 (598) - 5,153 Balance as of March 31, 2023 $ (31,598) $ 4,027 $ (4,505) $ (32,076) Balance as of January 1, 2022 $ (4,588) $ 1,530 $ (13,156) $ (16,214) Other comprehensive (loss) income during the period (19,055) 1,370 156 (17,529) Balance as of March 31, 2022 $ (23,643) $ 2,900 $ (13,000) $ (33,743) |
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES, (Narratives) (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Provision for Credit Losses | $ 3,291,000 | $ (79,000) | |
Net loan charge-offs | 1,520,000 | 771,000 | |
Change in financing receivable allowance | (1,800,000) | (900,000) | |
Accrued interest receivable | 8,600,000 | $ 8,000,000.0 | |
Real estate loans for which formal foreclosure proceedings were in process | 400,000 | 600,000 | |
Loan modified with a recorded investment | 0 | ||
Loans and Leases Receivable net deferred costs | 12,500,000 | $ 10,800,000 | |
CCHL [Member] | |||
Payments to Purchase Mortgage Loans Held-for-sale | $ 120,100,000 | $ 26,300,000 |
MORTGAGE BANKING ACTIVITIES (Residential Mortgage Loan Production) (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Assets | $ 124,593 | $ 120,519 |
Other Liabilities | 85,878 | 73,675 |
Loans Held For Sale, at Fair Value | 55,118 | 54,635 |
Residential Mortgage [Member] | ||
Loans Held for Sale | 54,442 | 54,488 |
Loans Held For Sale, at Fair Value | 55,118 | 54,635 |
Fair Value | 56,248 | 55,641 |
Residential Mortgage [Member] | Loan Commitments (IRLCs) [Member] | ||
Other Assets | 51,984 | 36,535 |
Other Assets Fair Value | 1,346 | 819 |
Residential Mortgage [Member] | Forward Sales Contracts [Member] | ||
Other Assets | 34,000 | 15,500 |
Other Assets Fair Value | $ 187 | |
Other Liabilities at Fair Value | $ (216) |
MORTGAGE BANKING ACTIVITIES (Mortgage banking revenue) (Details) - Mortgage banking [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Net realized gains on sales of mortgage loans | $ 3,192 | $ 5,136 |
Net change in unrealized gain on mortgage loans held for sale | 529 | (975) |
Net change in the fair value of mortgage loan commitments (IRLCs) | 527 | (141) |
Net change in the fair value of forward sales contracts | (402) | 857 |
Pair-Offs on net settlement of forward sales contracts | (1) | 2,255 |
Mortgage servicing rights additions | 1,034 | 632 |
Net origination fees | 2,116 | 1,182 |
Total mortgage banking revenues | $ 6,995 | $ 8,946 |
MORTGAGE BANKING ACTIVITIES (Summary of mortgage servicing rights) (Details) - Residential Mortgage [Member] $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023
USD ($)
Contracts
|
Dec. 31, 2022
USD ($)
Contracts
|
|
Servicing Assets at Fair Value [Line Items] | ||
Number of residential mortgage loans serviced for others | Contracts | 3,232 | 2,975 |
Outstanding principal balance of residential mortgage loans serviced for others | $ | $ 1,011,366 | $ 895,145 |
Weighted average interest rate | 4.33% | 4.19% |
Remaining contractual term (in months) | 339 months | 345 months |
MORTGAGE BANKING ACTIVITIES (Capitalized mortgage servicing rights) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | $ 6,067 | $ 3,774 |
Additions due to loans sold with servicing retained | 1,135 | 632 |
Deletions and amortization | (401) | (405) |
Ending balance | $ 6,801 | $ 4,001 |
MORTGAGE BANKING ACTIVITIES (Key unobservable inputs used in determining the fair value) (Details) - $ / LoanContracts |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Maximum [Member] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Discount rates | 12.00% | 12.00% |
Annual prepayment speeds | 19.55% | 20.45% |
Cost of servicing (per loan) | 95 | 95 |
Minimum [Member] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Discount rates | 9.51% | 9.50% |
Annual prepayment speeds | 7.12% | 12.33% |
Cost of servicing (per loan) | 85 | 85 |
DERIVATIVES (Cash flow hedges included in the Consolidated Statement of Financial Condition) (Details) - Interest rate swaps related to subordinated debt [Member] - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 30,000 | $ 30,000 |
Fair Value | $ 5,394 | $ 6,195 |
Weighted Average Maturity (Years) | 7 years 3 months 18 days | 7 years 6 months |
DERIVATIVES (Net gains (losses) recorded in accumulated other comprehensive income) (Details) - Interest rate product [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI | $ (598) | $ 1,370 |
Amount of Gain (Loss) Reclassified from AOCI to Income | $ 309 | $ (28) |
DERIVATIVES (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
LIBOR plus a weighted average margin | 1.83% | |
Collateral liability | $ 5,400 | $ 5,800 |
Interest rate swaps related to subordinated debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 30,000 | $ 30,000 |
Weighted average rate paid (fixed) | 2.50% | |
Interest rate product [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 1,200 |
LEASES (Summary of lease expense and other information related to operating leases) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Lease expenses: | ||
Operating lease expense | $ 700 | $ 384 |
Short-term lease expense | 139 | 179 |
Total lease expense | 839 | 563 |
Other information [Abstract] | ||
Operating cash flows from operating leases | 706 | 429 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,906 | $ 592 |
Weighted-average remaining lease term - operating leases (in years) | 18 years 7 months 6 days | 24 years 10 months 24 days |
Weighted-average discount rate - operating leases | 3.30% | 2.00% |
LEASES (Summary of maturity of remaining lease liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Summary of the maturity of remaining lease liabilities: | ||
2023 | $ 2,354 | |
2024 | 2,666 | |
2025 | 2,438 | |
2026 | 2,320 | |
2027 | 2,245 | |
2028 and thereafter | 21,045 | |
Total | 33,068 | |
Less: Interest | (8,002) | |
Present Value of Lease liability | $ 25,066 | $ 22,700 |
LEASES (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Lessee lease description [Line Items] | ||
Lessee operating lease description | Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term. | |
Operating lease right of use asset | $ 24,700,000 | $ 22,300,000 |
Present Value of Lease liability | 25,066,000 | $ 22,700,000 |
Operating lease liabilities, not yet commenced | 0 | |
Total lease payments | 33,068,000 | |
Lease payment transaction [Member] | ||
Lessee lease description [Line Items] | ||
Present Value of Lease liability | 2,400,000 | |
Operating lease, minimum annual payment | $ 200,000 | |
Minimum [Member] | ||
Lessee lease description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum [Member] | ||
Lessee lease description [Line Items] | ||
Remaining lease terms | 43 years |
EMPLOYEE BENEFIT PLANS (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Components of Net Periodic Benefit Costs: | ||
Pension Settlement | $ 0 | $ 209 |
Defined Benefit Pension Plan [Member] | ||
Components of Net Periodic Benefit Costs: | ||
Service Cost | 872 | 1,572 |
Interest Cost | 1,458 | 1,166 |
Expected Return on Plan Assets | (1,701) | (2,675) |
Prior Service Cost Amortization | 1 | 4 |
Net Loss Amortization | 234 | 428 |
Pension Settlement | 0 | 209 |
Net Periodic Benefit Cost | $ 864 | $ 704 |
Discount Rate Used for Benefit Cost | 5.63% | 3.11% |
Long-Term Rate of Return on Assets | 6.75% | 6.75% |
Supplemental Executive Retirement Plan [Member] | ||
Components of Net Periodic Benefit Costs: | ||
Service Cost | $ 4 | $ 8 |
Interest Cost | 130 | 79 |
Prior Service Cost Amortization | 38 | 69 |
Net Loss Amortization | (155) | 180 |
Net Periodic Benefit Cost | $ 17 | $ 336 |
Discount Rate Used for Benefit Cost | 5.45% | 2.80% |
COMMITMENTS AND CONTINGENCIES (Schedule of amounts associated with the entities off-balance sheet obligations) (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Loss Contingencies [Line Items] | ||
Fixed | $ 254,337 | $ 249,233 |
Variable | 577,180 | 531,873 |
Total | 831,517 | 781,106 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed | 248,660 | 243,614 |
Variable | 577,180 | 531,873 |
Total | 825,840 | 775,487 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed | 5,677 | 5,619 |
Variable | 0 | 0 |
Total | $ 5,677 | $ 5,619 |
COMMITMENTS AND CONTINGENCIES (Allowance for credit losses for off-balance sheet credit commitments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Beginning Balance | $ 2,989 | $ 2,897 |
Provision for Credit Losses | (156) | 79 |
Ending Balance | $ 2,833 | $ 2,976 |
COMMITMENTS AND CONTINGENCIES (Narratives) (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023
USD ($)
ClaimsLitigations
|
Dec. 31, 2022
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Loss Contingency Quarterly Accrual Payments until settled | $ 0.3 | |
Number of known pending claims or litigation | ClaimsLitigations | 0 | |
BankTech Ventures [Member] | ||
Other Commitments [Line Items] | ||
Contributions | $ 0.3 | $ 0.2 |
BankTech Ventures [Member] | Maximum [Member] | ||
Other Commitments [Line Items] | ||
Other Commitment | 1.0 | |
Solar fund [Member] | ||
Other Commitments [Line Items] | ||
Contributions | 2.8 | $ 1.0 |
Solar fund [Member] | Maximum [Member] | ||
Other Commitments [Line Items] | ||
Other Commitment | $ 7.0 |
FAIR VALUE MEASUREMENTS (Narratives) (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Fair Value measurements [Abstract] | |||
Level 3 issuances | $ 4,300,000 | $ 4,300,000 | |
Level 3 transfers | 6,700,000 | $ 13,600,000 | |
valuation allowance for loan servicing rights | 0 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Valuation allowance | 0 | $ 100,000 | |
Asset Pledged as Collateral [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Financing Receivable | 2,400,000 | 700,000 | |
Fair Value Swap [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional Amount | $ 0 | $ 100,000 |
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