☒ | ANNUAL 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 |
Commission file number | 001-35968 |
Iowa | 42-1206172 | ||||
(State or Other Jurisdiction of | (I.R.S. Employer | ||||
Incorporation or Organization) | Identification Number) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $1.00 par value | MOFG | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page No. | ||||||||||||||
PART I | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 1B. | ||||||||||||||
Item 1C. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
Item 7. | ||||||||||||||
Item 7A. | ||||||||||||||
Item 8. | ||||||||||||||
Item 9. | ||||||||||||||
Item 9A. | ||||||||||||||
Item 9B. | ||||||||||||||
Item 9C. | ||||||||||||||
PART III | ||||||||||||||
Item 10. | ||||||||||||||
Item 11. | ||||||||||||||
Item 12. | ||||||||||||||
Item 13. | ||||||||||||||
Item 14. | ||||||||||||||
PART IV | ||||||||||||||
Item 15. | ||||||||||||||
Item 16. |
ACL | Allowance for Credit Losses | FHLBDM | Federal Home Loan Bank of Des Moines | ||||||||
AFS | Available for Sale | FHLMC | Federal Home Loan Mortgage Corporation | ||||||||
AOCI | Accumulated Other Comprehensive Income | FNBF | First National Bank in Fairfield | ||||||||
ASC | Accounting Standards Codification | FNBM | First National Bank of Muscatine | ||||||||
ASU | Accounting Standards Update | FNMA | Federal National Mortgage Association | ||||||||
ATB | ATBancorp | FRB or Federal Reserve | Board of Governors of the Federal Reserve System | ||||||||
ATM | Automated Teller Machine | GAAP | U.S. Generally Accepted Accounting Principles | ||||||||
Basel III Rules | A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013 | GLBA | Gramm-Leach-Bliley Act of 1999 | ||||||||
BHCA | Bank Holding Company Act of 1956, as amended | HTM | Held to Maturity | ||||||||
BOD | Bank of Denver | IOFB | Iowa First Bancshares Corp. | ||||||||
BOLI | Bank-Owned Life Insurance | LIBOR | The London Inter-bank Offered Rate | ||||||||
BTFP | Bank Term Funding Program | MBEFD | Loan Modification for Borrowers Experiencing Financial Difficulty | ||||||||
CAA | Consolidated Appropriations Act, 2021 | MBS | Mortgage-Backed Securities | ||||||||
CECL | Current Expected Credit Loss | PCD | Purchased Financial Assets with Credit Deterioration | ||||||||
CMO | Collateralized Mortgage Obligations | PPP | Paycheck Protection Program | ||||||||
COVID-19 | Coronavirus Disease 2019 | PRSUs | Performance-Based Restricted Stock Unit Awards | ||||||||
CRA | Community Reinvestment Act | ROU | Right-of-Use | ||||||||
CRE | Commercial Real Estate | RPA | Credit Risk Participation Agreement | ||||||||
DNVB | Denver Bankshares, Inc. | RRE | Residential Real Estate | ||||||||
DCF | Discounted Cash Flow Method | SBA | U.S. Small Business Administration | ||||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | SEC | U.S. Securities and Exchange Commission | ||||||||
ESOP | Employee Stock Ownership Plan | SOFR | Secured Overnight Financing Rate | ||||||||
EVE | Economic Value of Equity | TDR | Troubled Debt Restructuring | ||||||||
FASB | Financial Accounting Standards Board | TRSUs | Time-Based Restricted Stock Unit Awards | ||||||||
FDIC | Federal Deposit Insurance Corporation | ||||||||||
FHLB | Federal Home Loan Bank | ||||||||||
Number of Banking Offices | |||||
Iowa banking offices | 35 | ||||
Minnesota banking offices | 12 | ||||
Wisconsin banking offices | 7 | ||||
Florida banking offices | 2 | ||||
Colorado banking offices | 1 | ||||
57 |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | |||||||||||||||||||||||
October 1 - 31, 2023 | — | $ | — | — | $ | 15,000,000 | ||||||||||||||||||||
November 1 - 30, 2023 | 58 | 22.16 | — | 15,000,000 | ||||||||||||||||||||||
December 1 - 31, 2023 | — | — | — | 15,000,000 | ||||||||||||||||||||||
Total | 58 | $ | 22.16 | — | $ | 15,000,000 | ||||||||||||||||||||
At | |||||||||||||||||||||||||||||||||||
Index | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | |||||||||||||||||||||||||||||
MidWestOne Financial Group, Inc. | $ | 100.00 | $ | 149.84 | $ | 105.35 | $ | 143.40 | $ | 144.96 | $ | 128.27 | |||||||||||||||||||||||
Nasdaq Composite Index | 100.00 | 136.69 | 198.10 | 242.03 | 163.28 | 236.17 | |||||||||||||||||||||||||||||
S&P U.S. BMI Banks - Midwest Region Index | 100.00 | 130.10 | 111.85 | 147.78 | 127.53 | 130.20 |
As of or For the Years Ended December 31, | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | 2021 | |||||||||||||||||
Net Interest Income | $ | 144,172 | $ | 166,358 | $ | 156,281 | ||||||||||||||
Noninterest Income | 18,423 | 47,519 | 42,453 | |||||||||||||||||
Total Revenue, Net of Interest Expense | 162,595 | 213,877 | 198,734 | |||||||||||||||||
Credit Loss Expense (Benefit) | 5,849 | 4,492 | (7,336) | |||||||||||||||||
Noninterest Expense | 131,913 | 132,788 | 116,592 | |||||||||||||||||
Income Before Income Tax Expense | 24,833 | 76,597 | 89,478 | |||||||||||||||||
Income Tax Expense | 3,974 | 15,762 | 19,992 | |||||||||||||||||
Net Income | $ | 20,859 | $ | 60,835 | $ | 69,486 | ||||||||||||||
Diluted Earnings Per Share | $ | 1.33 | $ | 3.87 | $ | 4.37 | ||||||||||||||
Return on Average Assets | 0.32 | % | 0.97 | % | 1.20 | % | ||||||||||||||
Return on Average Equity | 4.12 | 12.16 | 13.18 | |||||||||||||||||
Return on Average Tangible Equity(1) | 6.14 | 15.89 | 16.63 | |||||||||||||||||
Efficiency Ratio(1) | 67.28 | 56.98 | 54.65 | |||||||||||||||||
Dividend Payout Ratio | 72.93 | 24.42 | 20.55 | |||||||||||||||||
Common Equity Ratio | 8.16 | 7.49 | 8.75 | |||||||||||||||||
Tangible Common Equity Ratio(1) | 6.90 | 6.17 | 7.49 | |||||||||||||||||
Book Value per Share | $ | 33.41 | $ | 31.54 | $ | 33.66 | ||||||||||||||
Tangible Book Value per Share(1) | $ | 27.90 | $ | 25.60 | $ | 28.40 | ||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | ||||||||||||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 3,993,389 | $ | 205,189 | 5.14 | % | $ | 3,511,192 | $ | 150,791 | 4.29 | % | $ | 3,362,488 | $ | 143,141 | 4.26 | % | |||||||||||||||||||||||||||||||||||
Taxable investment securities | 1,684,360 | 38,978 | 2.31 | 1,891,234 | 39,019 | 2.06 | 1,577,146 | 25,692 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 355,454 | 9,353 | 2.63 | 435,907 | 11,788 | 2.70 | 463,526 | 12,468 | 2.69 | ||||||||||||||||||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,039,814 | 48,331 | 2.37 | 2,327,141 | 50,807 | 2.18 | 2,040,672 | 38,160 | 1.87 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 22,791 | 916 | 4.02 | 20,827 | 77 | 0.37 | 52,617 | 91 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets (2) | $ | 6,055,994 | $ | 254,436 | 4.20 | % | $ | 5,859,160 | $ | 201,675 | 3.44 | % | $ | 5,455,777 | $ | 181,392 | 3.32 | % | |||||||||||||||||||||||||||||||||||
Other assets | 419,366 | 385,124 | 324,779 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 6,475,360 | $ | 6,244,284 | $ | 5,780,556 | |||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,398,538 | $ | 8,990 | 0.64 | % | $ | 1,640,303 | $ | 5,416 | 0.33 | % | $ | 1,440,585 | $ | 4,208 | 0.29 | % | |||||||||||||||||||||||||||||||||||
Money market deposits | 1,037,123 | 23,924 | 2.31 | 992,390 | 4,707 | 0.47 | 946,784 | 2,006 | 0.21 | ||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | 624,990 | 2,802 | 0.45 | 674,846 | 1,169 | 0.17 | 594,543 | 1,210 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,443,770 | 50,048 | 3.47 | 925,592 | 8,953 | 0.97 | 882,271 | 5,774 | 0.65 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | 4,504,421 | 85,764 | 1.90 | 4,233,131 | 20,245 | 0.48 | 3,864,183 | 13,198 | 0.34 | ||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 94,563 | 975 | 1.03 | 152,466 | 872 | 0.57 | 176,606 | 436 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 199,530 | 10,144 | 5.08 | 70,729 | 2,198 | 3.11 | 15,151 | 115 | 0.76 | ||||||||||||||||||||||||||||||||||||||||||||
Total short-term borrowings | 294,093 | 11,119 | 3.78 | 223,195 | 3,070 | 1.38 | 191,757 | 551 | 0.29 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 131,137 | 8,558 | 6.53 | 148,863 | 7,086 | 4.76 | 178,395 | 6,736 | 3.78 | ||||||||||||||||||||||||||||||||||||||||||||
Total borrowed funds | 425,230 | 19,677 | 4.63 | 372,058 | 10,156 | 2.73 | 370,152 | 7,287 | 1.97 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 4,929,651 | $ | 105,441 | 2.14 | % | $ | 4,605,189 | $ | 30,401 | 0.66 | % | $ | 4,234,335 | $ | 20,485 | 0.48 | % | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | 951,188 | 1,075,918 | 974,044 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 88,770 | 62,706 | 45,141 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 505,751 | 500,471 | 527,036 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,475,360 | $ | 6,244,284 | $ | 5,780,556 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (2) | $ | 148,995 | $ | 171,274 | $ | 160,907 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread (2) | 2.06 | % | 2.78 | % | 2.84 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (2) | 2.46 | % | 2.92 | % | 2.95 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total deposits (5) | $ | 5,455,609 | $ | 85,764 | 1.57 | % | $ | 5,309,049 | $ | 20,245 | 0.38 | % | $ | 4,838,227 | $ | 13,198 | 0.27 | % | |||||||||||||||||||||||||||||||||||
Cost of funds (6) | 1.79 | % | 0.54 | % | 0.39 | % | |||||||||||||||||||||||||||||||||||||||||||||||
(1) | Average balance includes nonaccrual loans. | ||||
(2) | Tax equivalent. | ||||
(3) | Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $522 thousand, $765 thousand, and $11.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Loan purchase discount accretion was $3.7 million, $4.6 million, and $3.3 million for the years ended December 31, 2023, 2022 and 2021. Tax equivalent adjustments were $3.0 million, $2.5 million and $2.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. The federal statutory tax rate utilized was 21%. | ||||
(4) | Interest income includes tax equivalent adjustments of $1.8 million, $2.4 million and $2.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. The federal statutory tax rate utilized was 21%. | ||||
(5) | Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as interest expense on deposits divided by average total deposits. | ||||
(6) | Cost of funds is calculated as total interest expense divided by the sum of average total deposits and borrowed funds. |
Years Ended December 31, 2023, 2022, and 2021 | |||||||||||||||||||||||||||||||||||
Year 2023 to 2022 Change due to | Year 2022 to 2021 Change due to | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Volume | Yield/Cost | Net | Volume | Yield/Cost | Net | |||||||||||||||||||||||||||||
Increase (decrease) in interest income | |||||||||||||||||||||||||||||||||||
Loans, including fees(1) | $ | 22,382 | $ | 32,016 | $ | 54,398 | $ | 6,377 | $ | 1,273 | $ | 7,650 | |||||||||||||||||||||||
Taxable investment securities | (4,514) | 4,473 | (41) | 5,700 | 7,627 | 13,327 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (1) | (2,125) | (310) | (2,435) | (747) | 67 | (680) | |||||||||||||||||||||||||||||
Total securities held for investment (1) | (6,639) | 4,163 | (2,476) | 4,953 | 7,694 | 12,647 | |||||||||||||||||||||||||||||
Other | 8 | 831 | 839 | (77) | 63 | (14) | |||||||||||||||||||||||||||||
Change in interest income (1) | 15,751 | 37,010 | 52,761 | 11,253 | 9,030 | 20,283 | |||||||||||||||||||||||||||||
Increase (decrease) in interest expense | |||||||||||||||||||||||||||||||||||
Interest checking deposits | (900) | 4,474 | 3,574 | 620 | 588 | 1,208 | |||||||||||||||||||||||||||||
Money market deposits | 221 | 18,996 | 19,217 | 102 | 2,599 | 2,701 | |||||||||||||||||||||||||||||
Savings deposits | (92) | 1,725 | 1,633 | 150 | (191) | (41) | |||||||||||||||||||||||||||||
Time deposits | 7,318 | 33,777 | 41,095 | 297 | 2,882 | 3,179 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 6,547 | 58,972 | 65,519 | 1,169 | 5,878 | 7,047 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | (416) | 519 | 103 | (67) | 503 | 436 | |||||||||||||||||||||||||||||
Other short-term borrowings | 5,890 | 2,056 | 7,946 | 1,130 | 953 | 2,083 | |||||||||||||||||||||||||||||
Total short-term borrowings | 5,474 | 2,575 | 8,049 | 1,063 | 1,456 | 2,519 | |||||||||||||||||||||||||||||
Long-term debt | (920) | 2,392 | 1,472 | (1,229) | 1,579 | 350 | |||||||||||||||||||||||||||||
Total borrowed funds | 4,554 | 4,967 | 9,521 | (166) | 3,035 | 2,869 | |||||||||||||||||||||||||||||
Change in interest expense | 11,101 | 63,939 | 75,040 | 1,003 | 8,913 | 9,916 | |||||||||||||||||||||||||||||
Change in net interest income (1) | $ | 4,650 | $ | (26,929) | $ | (22,279) | $ | 10,250 | $ | 117 | $ | 10,367 | |||||||||||||||||||||||
Percentage increase (decrease) in net interest income over prior period | (13.0) | % | 6.4 | % | |||||||||||||||||||||||||||||||
(1) Tax equivalent |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
Investment services and trust activities | $ | 12,249 | $ | 11,223 | $ | 1,026 | 9.1 | % | $ | 11,223 | $ | 11,675 | $ | (452) | (3.9) | % | |||||||||||||||||||||||||||||||
Service charges and fees | 8,349 | 7,477 | 872 | 11.7 | 7,477 | 6,259 | 1,218 | 19.5 | |||||||||||||||||||||||||||||||||||||||
Card revenue | 7,214 | 7,210 | 4 | 0.1 | 7,210 | 7,015 | 195 | 2.8 | |||||||||||||||||||||||||||||||||||||||
Loan revenue | 4,700 | 10,504 | (5,804) | (55.3) | 10,504 | 12,948 | (2,444) | (18.9) | |||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | 2,500 | 2,305 | 195 | 8.5 | 2,305 | 2,162 | 143 | 6.6 | |||||||||||||||||||||||||||||||||||||||
Investment securities (losses) gains, net | (18,789) | 271 | (19,060) | (7,033.2) | 271 | 242 | 29 | 12.0 | |||||||||||||||||||||||||||||||||||||||
Other | 2,200 | 8,529 | (6,329) | (74.2) | 8,529 | 2,152 | 6,377 | 296.3 | |||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 18,423 | $ | 47,519 | $ | (29,096) | (61.2) | % | $ | 47,519 | $ | 42,453 | $ | 5,066 | 11.9 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | $ | 76,410 | $ | 78,103 | $ | (1,693) | (2.2) | % | $ | 78,103 | $ | 69,937 | $ | 8,166 | 11.7 | % | |||||||||||||||||||||||||||||||
Occupancy expense of premises, net | 10,034 | 10,272 | (238) | (2.3) | 10,272 | 9,274 | 998 | 10.8 | |||||||||||||||||||||||||||||||||||||||
Equipment | 9,195 | 8,693 | 502 | 5.8 | 8,693 | 7,816 | 877 | 11.2 | |||||||||||||||||||||||||||||||||||||||
Legal and professional | 7,365 | 8,646 | (1,281) | (14.8) | 8,646 | 5,256 | 3,390 | 64.5 | |||||||||||||||||||||||||||||||||||||||
Data processing | 5,799 | 5,574 | 225 | 4.0 | 5,574 | 5,216 | 358 | 6.9 | |||||||||||||||||||||||||||||||||||||||
Marketing | 3,610 | 4,272 | (662) | (15.5) | 4,272 | 4,022 | 250 | 6.2 | |||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 6,247 | 6,069 | 178 | 2.9 | 6,069 | 5,357 | 712 | 13.3 | |||||||||||||||||||||||||||||||||||||||
FDIC insurance | 3,294 | 1,660 | 1,634 | 98.4 | 1,660 | 1,572 | 88 | 5.6 | |||||||||||||||||||||||||||||||||||||||
Communications | 910 | 1,125 | (215) | (19.1) | 1,125 | 1,332 | (207) | (15.5) | |||||||||||||||||||||||||||||||||||||||
Foreclosed assets, net | 13 | (18) | 31 | (172.2) | (18) | 233 | (251) | (107.7) | |||||||||||||||||||||||||||||||||||||||
Other | 9,036 | 8,392 | 644 | 7.7 | 8,392 | 6,577 | 1,815 | 27.6 | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 131,913 | $ | 132,788 | $ | (875) | (0.7) | % | $ | 132,788 | $ | 116,592 | $ | 16,196 | 13.9 | % |
For the Year Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2021 | |||||||||||||||||
Merger-related expenses: | ||||||||||||||||||||
Compensation and employee benefits | $ | 70 | $ | 471 | $ | — | ||||||||||||||
Occupancy expense of premises, net | — | 1 | — | |||||||||||||||||
Equipment | — | 29 | 18 | |||||||||||||||||
Legal and professional | 191 | 948 | 202 | |||||||||||||||||
Data processing | 65 | 511 | — | |||||||||||||||||
Marketing | 38 | 164 | 2 | |||||||||||||||||
Communications | — | 3 | — | |||||||||||||||||
Other | 28 | 74 | 2 | |||||||||||||||||
Total impact of merger-related expenses to noninterest expense | $ | 392 | $ | 2,201 | $ | 224 |
(dollars in thousands) | December 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 81,727 | $ | 86,435 | $ | (4,708) | (5.4) | % | |||||||||||||||
Loans held for sale | 1,045 | 612 | 433 | 70.8 | |||||||||||||||||||
Debt securities available for sale at fair value | 795,134 | 1,153,547 | (358,413) | (31.1) | |||||||||||||||||||
Held to maturity securities at amortized cost | 1,075,190 | 1,129,421 | (54,231) | (4.8) | |||||||||||||||||||
Loans held for investment, net of unearned income | 4,126,947 | 3,840,524 | 286,423 | 7.5 | |||||||||||||||||||
Allowance for credit losses | (51,500) | (49,200) | (2,300) | 4.7 | |||||||||||||||||||
Total loans held for investment, net | 4,075,447 | 3,791,324 | 284,123 | 12.2 | |||||||||||||||||||
Other assets | 398,997 | 416,537 | (17,540) | (4.2) | |||||||||||||||||||
Total assets | $ | 6,427,540 | $ | 6,577,876 | $ | (150,336) | (2.3) | % | |||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Total deposits | $ | 5,395,673 | $ | 5,468,942 | $ | (73,269) | (1.3) | % | |||||||||||||||
Total borrowings | 423,560 | 531,083 | (107,523) | (20.2) | |||||||||||||||||||
Other liabilities | 83,929 | 85,058 | (1,129) | (1.3) | |||||||||||||||||||
Total shareholders’ equity | 524,378 | 492,793 | 31,585 | 6.4 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,427,540 | $ | 6,577,876 | $ | (150,336) | (2.3) | % | |||||||||||||||
December 31, | |||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||||||||||||||
Available for Sale | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
U.S. Government agencies and corporations | $ | — | — | % | $ | 7,345 | 0.6 | % | |||||||||||||||
States and political subdivisions | 130,139 | 16.4 | 285,356 | 24.7 | |||||||||||||||||||
Mortgage-backed securities | 5,311 | 0.7 | 5,944 | 0.5 | |||||||||||||||||||
Collateralized loan obligations | 50,437 | 6.3 | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 169,196 | 21.3 | 147,193 | 12.8 | |||||||||||||||||||
Corporate debt securities | 440,051 | 55.3 | 707,709 | 61.4 | |||||||||||||||||||
Fair value of debt securities available for sale | $ | 795,134 | 100.0 | % | $ | 1,153,547 | 100.0 | % | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
States and political subdivisions | $ | 532,422 | 49.5 | % | $ | 538,746 | 47.7 | % | |||||||||||||||
Mortgage-backed securities | 74,904 | 7.0 | 81,032 | 7.2 | % | ||||||||||||||||||
Collateralized mortgage obligations | 467,864 | 43.5 | 509,643 | 45.1 | % | ||||||||||||||||||
Amortized cost of debt securities held to maturity | $ | 1,075,190 | 100.0 | % | $ | 1,129,421 | 100.0 | % |
As of December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in thousands) | Amount | % of Total | Amount | % of Total | |||||||||||||||||||
Agricultural | $ | 118,414 | 2.9 | % | $ | 115,320 | 3.0 | % | |||||||||||||||
Commercial and industrial | 1,075,003 | 26.0 | 1,055,162 | 27.5 | |||||||||||||||||||
Commercial real estate | 2,225,310 | 54.0 | 1,980,018 | 51.6 | |||||||||||||||||||
Residential real estate | 640,437 | 15.5 | 614,428 | 15.9 | |||||||||||||||||||
Consumer | 67,783 | 1.6 | 75,596 | 2.0 | |||||||||||||||||||
Loans held for investment, net of unearned income | $ | 4,126,947 | 100.0 | % | $ | 3,840,524 | 100.0 | % | |||||||||||||||
Loans held for sale | $ | 1,045 | $ | 612 |
December 31, 2023 | |||||||||||
(dollars in thousands) | Amount | % of Total Loans | |||||||||
Construction & Development | $ | 323,195 | 7.8 | % | |||||||
Farmland | 184,955 | 4.5 | |||||||||
Multifamily | 383,178 | 9.3 | |||||||||
CRE Other: | |||||||||||
NOO CRE Office | 154,713 | 3.8 | |||||||||
OO CRE Office | 82,741 | 2.0 | |||||||||
Industrial and Warehouse | 380,517 | 9.2 | |||||||||
Retail | 263,664 | 6.4 | |||||||||
Hotel | 128,481 | 3.1 | |||||||||
Other | 323,866 | 7.8 | |||||||||
Total CRE | $ | 2,225,310 | 53.9 | % |
Maturities Within | Maturities After | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One Year | One Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Due Within | Due In | Due In | Due After | Fixed | Variable | Fixed | Variable | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 1 Year | 1-5 Years | 5-15 Years | 15 Years | Total | Rates | Rates | Rates | Rates | ||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | 73,570 | $ | 38,543 | $ | 5,571 | $ | 730 | $ | 118,414 | $ | 17,163 | $ | 56,407 | $ | 32,485 | $ | 12,359 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 142,651 | 371,403 | 364,872 | 196,077 | 1,075,003 | 29,564 | 113,087 | 598,055 | 334,297 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction & development | 84,733 | 180,194 | 55,473 | 2,795 | 323,195 | 41,832 | 42,901 | 142,995 | 95,467 | ||||||||||||||||||||||||||||||||||||||||||||
Farmland | 13,584 | 89,903 | 60,590 | 20,878 | 184,955 | 11,827 | 1,757 | 131,552 | 39,819 | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 44,247 | 230,369 | 106,311 | 2,251 | 383,178 | 23,414 | 20,833 | 232,142 | 106,789 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate-other | 109,624 | 761,498 | 437,365 | 25,495 | 1,333,982 | 77,841 | 31,783 | 772,261 | 452,097 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 252,188 | 1,261,964 | 659,739 | 51,419 | 2,225,310 | 154,914 | 97,274 | 1,278,950 | 694,172 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four- family first liens | 16,508 | 111,361 | 78,538 | 253,391 | 459,798 | 14,806 | 1,702 | 208,261 | 235,029 | ||||||||||||||||||||||||||||||||||||||||||||
One- to four- family junior liens | 3,219 | 29,048 | 145,115 | 3,257 | 180,639 | 1,424 | 1,795 | 88,216 | 89,204 | ||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | 19,727 | 140,409 | 223,653 | 256,648 | 640,437 | 16,230 | 3,497 | 296,477 | 324,233 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 9,539 | 44,296 | 13,948 | — | 67,783 | 3,666 | 5,873 | 57,734 | 510 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 497,675 | $ | 1,856,615 | $ | 1,267,783 | $ | 504,874 | $ | 4,126,947 | $ | 221,537 | $ | 276,138 | $ | 2,263,701 | $ | 1,365,571 |
December 31, | |||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||
Nonaccrual loans held for investment | $ | 25,891 | $ | 15,256 | |||||||
Accruing loans contractually past due 90 days or more | 468 | 565 | |||||||||
Total nonperforming loans | 26,359 | 15,821 | |||||||||
Foreclosed assets, net | 3,929 | 103 | |||||||||
Total nonperforming assets | $ | 30,288 | $ | 15,924 | |||||||
Nonaccrual loans ratio(1) | 0.63 | % | 0.40 | % | |||||||
Nonperforming loans ratios(2) | 0.64 | % | 0.41 | % | |||||||
Nonperforming assets ratio(3) | 0.47 | % | 0.24 | % | |||||||
(1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
(2 Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
(3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period. |
December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in thousands) | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | |||||||||||||||||||
Agricultural | $ | 613 | 2.9 | % | $ | 923 | 3.0 | % | |||||||||||||||
Commercial and industrial | 21,743 | 26.0 | 22,855 | 27.5 | |||||||||||||||||||
Commercial real estate | 23,759 | 54.0 | 20,123 | 51.5 | |||||||||||||||||||
Residential real estate | 4,762 | 15.5 | 4,678 | 16.0 | |||||||||||||||||||
Consumer | 623 | 1.6 | 621 | 2.0 | |||||||||||||||||||
Total | $ | 51,500 | 100.0 | % | $ | 49,200 | 100.0 | % | |||||||||||||||
Allowance for credit losses ratio(1) | 1.25 | % | 1.28 | % | |||||||||||||||||||
Allowance for credit losses to nonaccrual loans ratio(2) | 198.91 | % | 322.50 | % | |||||||||||||||||||
(1) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income at the end of the period. | |||||||||||||||||||||||
(2) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period. |
As of December 31, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
(in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Noninterest bearing deposits | $ | 897,053 | 16.6 | % | $ | 1,053,450 | 19.3 | % | |||||||||||||||
Interest checking deposits | 1,320,435 | 24.5 | 1,624,278 | 29.8 | |||||||||||||||||||
Money market deposits | 1,105,493 | 20.5 | 937,340 | 17.1 | |||||||||||||||||||
Savings deposits | 650,655 | 12.1 | 664,169 | 12.1 | |||||||||||||||||||
Total non-maturity deposits | 3,973,636 | 73.7 | 4,279,237 | 78.3 | |||||||||||||||||||
Time deposits of $250 and under | 973,253 | 18.0 | 686,233 | 12.6 | |||||||||||||||||||
Time deposits of over $250 | 448,784 | 8.3 | 503,472 | 9.1 | |||||||||||||||||||
Total time deposits | $ | 1,422,037 | 26.3 | % | $ | 1,189,705 | 21.7 | % | |||||||||||||||
Total deposits | $ | 5,395,673 | 100.0 | % | $ | 5,468,942 | 100.0 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average | % | Average | Average | % | Average | ||||||||||||||||||||||||||||||
(dollars in thousands) | Balance | Total | Rate | Balance | Total | Rate | |||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 951,188 | 17.4 | % | N/A | $ | 1,075,918 | 20.3 | % | N/A | |||||||||||||||||||||||||
Interest checking and money market | 2,435,661 | 44.6 | 1.35 | % | 2,632,693 | 49.6 | 0.38 | % | |||||||||||||||||||||||||||
Savings deposits | 624,990 | 11.5 | 0.45 | 674,846 | 12.7 | 0.17 | |||||||||||||||||||||||||||||
Time deposits | 1,443,770 | 26.5 | 3.47 | 925,592 | 17.4 | 0.97 | |||||||||||||||||||||||||||||
Total deposits | $ | 5,455,609 | 100.0 | % | 1.57 | % | $ | 5,309,049 | 100.0 | % | 0.37 | % |
(in thousands) | As of December 31, 2023 | As of December 31, 2022 | |||||||||
Three months or less | $ | 367,510 | $ | 215,848 | |||||||
Over three through six months | 102,017 | 202,422 | |||||||||
Over six months through one year | 156,628 | 133,142 | |||||||||
Over one year | 43,668 | 78,827 | |||||||||
Total | $ | 669,823 | $ | 630,239 |
Year Ended December 31, | |||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||
Securities sold under agreements to repurchase | $ | 5,064 | $ | 156,373 | |||||||
Federal home loan bank advances | 10,200 | 235,500 | |||||||||
Federal reserve bank borrowings | 285,000 | — | |||||||||
Total short-term borrowings | $ | 300,264 | $ | 391,873 | |||||||
Junior subordinated notes issued to capital trusts | 42,293 | 42,116 | |||||||||
Subordinated debentures | 64,137 | 64,006 | |||||||||
Finance lease payable | 604 | 787 | |||||||||
Federal home loan bank borrowings | 6,262 | 17,301 | |||||||||
Other long-term debt | 10,000 | 15,000 | |||||||||
Total long-term debt | $ | 123,296 | $ | 139,210 |
Less than | 1 to 3 | 3 to 5 | More than | |||||||||||||||||||||||||||||
(in thousands) | Total | 1 year | years | years | 5 years | |||||||||||||||||||||||||||
Commitments to extend credit | $ | 1,203,001 | $ | 318,573 | $ | 331,173 | $ | 166,635 | $ | 386,620 | ||||||||||||||||||||||
Commitments to sell loans | 1,045 | 1,045 | — | — | — | |||||||||||||||||||||||||||
Standby letters of credit | 7,795 | — | 6,329 | 505 | 961 | |||||||||||||||||||||||||||
Total | $ | 1,211,841 | $ | 319,618 | $ | 337,502 | $ | 167,140 | $ | 387,581 |
Contractual Obligations | Less than | 1 to 3 | 3 to 5 | More than | ||||||||||||||||||||||||||||
(dollars in thousands) | Total | 1 year | years | years | 5 years | |||||||||||||||||||||||||||
Time certificates of deposit | $ | 1,422,037 | $ | 1,236,794 | $ | 161,226 | $ | 17,398 | $ | 6,619 | ||||||||||||||||||||||
Federal funds purchased, repurchase agreements, and FHLB overnight advances | 300,264 | 300,264 | — | — | — | |||||||||||||||||||||||||||
FHLB borrowings | 6,262 | 6,262 | — | — | — | |||||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,293 | — | — | — | 42,293 | |||||||||||||||||||||||||||
Subordinated debentures | 64,137 | — | — | — | 64,137 | |||||||||||||||||||||||||||
Other long-term debt | 10,000 | — | — | 10,000 | — | |||||||||||||||||||||||||||
Noncancellable operating leases and finance lease obligations | 4,761 | 1,297 | 1,424 | 440 | 1,600 | |||||||||||||||||||||||||||
Total | $ | 1,849,754 | $ | 1,544,617 | $ | 162,650 | $ | 27,838 | $ | 114,649 |
December 31, 2023 | December 31, 2022 | |||||||||||||
Total shareholders’ equity to total assets ratio | 8.16 | % | 7.49 | % | ||||||||||
Tangible common equity ratio(1) | 6.90 | % | 6.17 | % | ||||||||||
Total risk-based capital ratio | 12.53 | % | 12.07 | % | ||||||||||
Tier 1 risk-based capital ratio | 10.38 | % | 10.05 | % | ||||||||||
Common equity tier 1 risk-based capital ratio | 9.59 | % | 9.28 | % | ||||||||||
Tier 1 leverage ratio | 8.58 | % | 8.35 | % | ||||||||||
Book value per share | $ | 33.41 | $ | 31.54 | ||||||||||
Tangible book value per share(1) | $ | 27.90 | $ | 25.60 | ||||||||||
(1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. |
Year Ended December 31, | |||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||
Cash and due from banks | $ | 76,237 | $ | 83,990 | |||||||
Interest-bearing deposits | 5,479 | 2,445 | |||||||||
Federal funds sold | 11 | — | |||||||||
Total | $ | 81,727 | $ | 86,435 |
Tangible Common Equity / Tangible Book Value Per Share/ Tangible Common Equity Ratio | As of December 31, | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2022 | 2021 | ||||||||||||||||||||
Total shareholders’ equity | $ | 524,378 | $ | 492,793 | $ | 527,475 | |||||||||||||||||
Intangible assets, net | (86,546) | (92,792) | (82,362) | ||||||||||||||||||||
Tangible common equity | $ | 437,832 | $ | 400,001 | $ | 445,113 | |||||||||||||||||
Total assets | $ | 6,427,540 | $ | 6,577,876 | $ | 6,025,128 | |||||||||||||||||
Intangible assets, net | (86,546) | (92,792) | (82,362) | ||||||||||||||||||||
Tangible assets | $ | 6,340,994 | $ | 6,485,084 | $ | 5,942,766 | |||||||||||||||||
Book value per share | $ | 33.41 | $ | 31.54 | $ | 33.66 | |||||||||||||||||
Tangible book value per share(1) | $ | 27.90 | $ | 25.60 | $ | 28.40 | |||||||||||||||||
Shares outstanding | 15,694,306 | 15,623,977 | 15,671,147 | ||||||||||||||||||||
Common equity ratio | 8.16 | % | 7.49 | % | 8.75 | % | |||||||||||||||||
Tangible common equity ratio(2) | 6.90 | % | 6.17 | % | 7.49 | % | |||||||||||||||||
(1) Tangible common equity divided by shares outstanding. | |||||||||||||||||||||||
(2) Tangible common equity divided by tangible assets. |
Net Interest Margin, Tax Equivalent / Core Net Interest Margin | For the Year Ended December 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2021 | ||||||||||||||||||||
Net interest income | $ | 144,172 | $ | 166,358 | $ | 156,281 | |||||||||||||||||
Tax equivalent adjustments: | |||||||||||||||||||||||
Loans(1) | 3,010 | 2,507 | 2,105 | ||||||||||||||||||||
Securities(1) | 1,813 | 2,409 | 2,521 | ||||||||||||||||||||
Net interest income, tax equivalent | $ | 148,995 | $ | 171,274 | $ | 160,907 | |||||||||||||||||
Loan purchase discount accretion | (3,729) | (4,561) | (3,344) | ||||||||||||||||||||
Core net interest income | $ | 145,266 | $ | 166,713 | $ | 157,563 | |||||||||||||||||
Net interest margin | 2.38 | % | 2.84 | % | 2.86 | % | |||||||||||||||||
Net interest margin, tax equivalent(2) | 2.46 | % | 2.92 | % | 2.95 | % | |||||||||||||||||
Core net interest margin(3) | 2.40 | % | 2.85 | % | 2.89 | % | |||||||||||||||||
Average interest earning assets | $ | 6,055,994 | $ | 5,859,160 | $ | 5,455,777 | |||||||||||||||||
(1) The federal statutory tax rate utilized was 21%. | |||||||||||||||||||||||
(2) Tax equivalent net interest income divided by average interest earning assets. | |||||||||||||||||||||||
(3) Core net interest income divided by average interest earning assets. |
December 31, | |||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 76,237 | $ | 83,990 | |||||||
Interest earning deposits in banks | 5,479 | 2,445 | |||||||||
Federal funds sold | 11 | — | |||||||||
Total cash and cash equivalents | 81,727 | 86,435 | |||||||||
Debt securities available for sale at fair value | 795,134 | 1,153,547 | |||||||||
Held to maturity securities at amortized cost | 1,075,190 | 1,129,421 | |||||||||
Total securities | 1,870,324 | 2,282,968 | |||||||||
Loans held for sale | 1,045 | 612 | |||||||||
Gross loans held for investment | 4,138,352 | 3,854,791 | |||||||||
Unearned income, net | (11,405) | (14,267) | |||||||||
Loans held for investment, net of unearned income | 4,126,947 | 3,840,524 | |||||||||
Allowance for credit losses | (51,500) | (49,200) | |||||||||
Total loans held for investment, net | 4,075,447 | 3,791,324 | |||||||||
Premises and equipment, net | 85,742 | 87,125 | |||||||||
Goodwill | 62,477 | 62,477 | |||||||||
Other intangible assets, net | 24,069 | 30,315 | |||||||||
Foreclosed assets, net | 3,929 | 103 | |||||||||
Other assets | 222,780 | 236,517 | |||||||||
Total assets | $ | 6,427,540 | $ | 6,577,876 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Noninterest bearing deposits | $ | 897,053 | $ | 1,053,450 | |||||||
Interest bearing deposits | 4,498,620 | 4,415,492 | |||||||||
Total deposits | 5,395,673 | 5,468,942 | |||||||||
Short-term borrowings | 300,264 | 391,873 | |||||||||
Long-term debt | 123,296 | 139,210 | |||||||||
Other liabilities | 83,929 | 85,058 | |||||||||
Total liabilities | 5,903,162 | 6,085,083 | |||||||||
Commitments and contingencies (Note 18) | |||||||||||
Shareholders' equity | |||||||||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | — | — | |||||||||
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,694,306 and 15,623,977 | 16,581 | 16,581 | |||||||||
Additional paid-in capital | 302,157 | 302,085 | |||||||||
Retained earnings | 294,784 | 289,289 | |||||||||
Treasury stock at cost, 886,711 and 957,040 shares | (24,245) | (26,115) | |||||||||
Accumulated other comprehensive loss | (64,899) | (89,047) | |||||||||
Total shareholders' equity | 524,378 | 492,793 | |||||||||
Total liabilities and shareholders' equity | $ | 6,427,540 | $ | 6,577,876 |
Years ended December 31, | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | 2021 | |||||||||||||||||
Interest income | ||||||||||||||||||||
Loans, including fees | $ | 202,179 | $ | 148,284 | $ | 141,036 | ||||||||||||||
Taxable investment securities | 38,978 | 39,019 | 25,692 | |||||||||||||||||
Tax-exempt investment securities | 7,540 | 9,379 | 9,947 | |||||||||||||||||
Other | 916 | 77 | 91 | |||||||||||||||||
Total interest income | 249,613 | 196,759 | 176,766 | |||||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 85,764 | 20,245 | 13,198 | |||||||||||||||||
Short-term borrowings | 11,119 | 3,070 | 551 | |||||||||||||||||
Long-term debt | 8,558 | 7,086 | 6,736 | |||||||||||||||||
Total interest expense | 105,441 | 30,401 | 20,485 | |||||||||||||||||
Net interest income | 144,172 | 166,358 | 156,281 | |||||||||||||||||
Credit loss expense (benefit) | 5,849 | 4,492 | (7,336) | |||||||||||||||||
Net interest income after credit loss expense (benefit) | 138,323 | 161,866 | 163,617 | |||||||||||||||||
Noninterest income | ||||||||||||||||||||
Investment services and trust activities | 12,249 | 11,223 | 11,675 | |||||||||||||||||
Service charges and fees | 8,349 | 7,477 | 6,259 | |||||||||||||||||
Card revenue | 7,214 | 7,210 | 7,015 | |||||||||||||||||
Loan revenue | 4,700 | 10,504 | 12,948 | |||||||||||||||||
Bank-owned life insurance | 2,500 | 2,305 | 2,162 | |||||||||||||||||
Investment securities (losses) gains, net | (18,789) | 271 | 242 | |||||||||||||||||
Other | 2,200 | 8,529 | 2,152 | |||||||||||||||||
Total noninterest income | 18,423 | 47,519 | 42,453 | |||||||||||||||||
Noninterest expense | ||||||||||||||||||||
Compensation and employee benefits | 76,410 | 78,103 | 69,937 | |||||||||||||||||
Occupancy expense of premises, net | 10,034 | 10,272 | 9,274 | |||||||||||||||||
Equipment | 9,195 | 8,693 | 7,816 | |||||||||||||||||
Legal and professional | 7,365 | 8,646 | 5,256 | |||||||||||||||||
Data processing | 5,799 | 5,574 | 5,216 | |||||||||||||||||
Marketing | 3,610 | 4,272 | 4,022 | |||||||||||||||||
Amortization of intangibles | 6,247 | 6,069 | 5,357 | |||||||||||||||||
FDIC insurance | 3,294 | 1,660 | 1,572 | |||||||||||||||||
Communications | 910 | 1,125 | 1,332 | |||||||||||||||||
Foreclosed assets, net | 13 | (18) | 233 | |||||||||||||||||
Other | 9,036 | 8,392 | 6,577 | |||||||||||||||||
Total noninterest expense | 131,913 | 132,788 | 116,592 | |||||||||||||||||
Income before income tax expense | 24,833 | 76,597 | 89,478 | |||||||||||||||||
Income tax expense | 3,974 | 15,762 | 19,992 | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | ||||||||||||||
Per common share information | ||||||||||||||||||||
Earnings - basic | $ | 1.33 | $ | 3.89 | $ | 4.38 | ||||||||||||||
Earnings - diluted | $ | 1.33 | $ | 3.87 | $ | 4.37 |
Years Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2021 | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized gain (loss) from AFS debt securities: | ||||||||||||||||||||
Unrealized net gain (loss) on debt securities AFS | 10,421 | (111,667) | (45,032) | |||||||||||||||||
Reclassification adjustment for losses (gains) included in net income | 19,768 | (271) | (242) | |||||||||||||||||
Reclassification of the change in fair value of AFS debt securities attributable to change in hedged risk | (819) | — | — | |||||||||||||||||
Income tax (expense) benefit | (7,433) | 28,951 | 11,817 | |||||||||||||||||
Unrealized net gain (loss) on AFS debt securities, net of reclassification adjustments | 21,937 | (82,987) | (33,457) | |||||||||||||||||
Reclassification of AFS debt securities to HTM: | ||||||||||||||||||||
Amortization of the net unrealized loss from the reclassification of AFS debt securities to HTM | 2,284 | 3,781 | — | |||||||||||||||||
Income tax expense | (578) | (976) | — | |||||||||||||||||
Amortization of net unrealized loss from the reclassification of AFS debt securities to HTM, net | 1,706 | 2,805 | — | |||||||||||||||||
Unrealized gain from cash flow hedging instruments: | ||||||||||||||||||||
Unrealized net gains in cash flow hedging instruments | 2,471 | — | — | |||||||||||||||||
Reclassification adjustment for net gain in cash flow hedging instruments included in income | (1,795) | — | — | |||||||||||||||||
Income tax expense | (171) | — | — | |||||||||||||||||
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment | 505 | — | — | |||||||||||||||||
Other comprehensive income (loss), net of tax | $ | 24,148 | $ | (80,182) | $ | (33,457) | ||||||||||||||
Comprehensive income (loss) | $ | 45,007 | $ | (19,347) | $ | 36,029 |
Common Stock | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 16,581 | $ | 300,137 | $ | 188,191 | $ | (14,251) | $ | 24,592 | $ | 515,250 | ||||||||||||||||||||||||||
Net income | — | — | 69,486 | — | — | 69,486 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (33,457) | (33,457) | ||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (49,907 shares, net) | — | (1,350) | (30) | 1,259 | — | (121) | ||||||||||||||||||||||||||||||||
Repurchase of common stock (395,540 shares) | — | — | — | (11,554) | — | (11,554) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | 2,153 | — | — | — | 2,153 | ||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.9000 per share) | — | — | (14,282) | — | — | (14,282) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 16,581 | $ | 300,940 | $ | 243,365 | $ | (24,546) | $ | (8,865) | $ | 527,475 | ||||||||||||||||||||||||||
Net income | — | — | 60,835 | — | — | 60,835 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (80,182) | (80,182) | ||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (44,231 shares, net) | — | (1,396) | (41) | 1,156 | — | (281) | ||||||||||||||||||||||||||||||||
Repurchase of common stock (91,401 shares) | — | — | — | (2,725) | — | (2,725) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | 2,541 | — | — | — | 2,541 | ||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.9500 per share) | — | — | (14,870) | — | — | (14,870) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 16,581 | $ | 302,085 | $ | 289,289 | $ | (26,115) | $ | (89,047) | $ | 492,793 | ||||||||||||||||||||||||||
Net income | — | — | 20,859 | — | — | 20,859 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 24,148 | 24,148 | ||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (70,329 shares, net) | — | (2,331) | (148) | 1,870 | — | (609) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | 2,403 | — | — | — | 2,403 | ||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.9700 per share) | — | — | (15,216) | — | — | (15,216) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | 16,581 | $ | 302,157 | $ | 294,784 | $ | (24,245) | $ | (64,899) | $ | 524,378 |
Years Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Operating Activities: | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Credit loss expense (benefit) | 5,849 | 4,492 | (7,336) | ||||||||||||||
Depreciation, amortization, and accretion | 12,572 | 10,162 | 1,566 | ||||||||||||||
Net change in premises and equipment due to writedown or sale | (92) | 724 | 271 | ||||||||||||||
Share-based compensation | 2,403 | 2,541 | 2,153 | ||||||||||||||
Net loss (gain) on sale or call of debt securities available for sale | 19,768 | (271) | (242) | ||||||||||||||
Net gain on sale of equity securities | (979) | — | — | ||||||||||||||
Net change in foreclosed assets due to writedown or sale | (38) | (31) | 155 | ||||||||||||||
Net gain on sale of loans held for sale | (1,166) | (1,842) | (8,052) | ||||||||||||||
Origination and participations purchased of loans held for sale | (49,166) | (90,493) | (293,235) | ||||||||||||||
Proceeds from sales of loans held for sale | 49,899 | 104,640 | 348,326 | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | (2,500) | (2,305) | (1,889) | ||||||||||||||
(Increase) decrease in deferred income taxes, net | (330) | 4,326 | 1,768 | ||||||||||||||
Bargain purchase gain | — | (3,769) | — | ||||||||||||||
Change in: | |||||||||||||||||
Other assets | 6,420 | (37,206) | 6,615 | ||||||||||||||
Other liabilities | (929) | 38,525 | (8,032) | ||||||||||||||
Net cash provided by operating activities | $ | 62,570 | $ | 90,328 | $ | 111,554 | |||||||||||
Investing Activities: | |||||||||||||||||
Purchases of equity securities | $ | (1,125) | $ | (1,250) | $ | — | |||||||||||
Proceeds from sales of equity securities | 2,011 | — | — | ||||||||||||||
Proceeds from sales of debt securities available for sale | 326,179 | 129,823 | 52,183 | ||||||||||||||
Proceeds from maturities and calls of debt securities available for sale | 130,740 | 142,006 | 404,894 | ||||||||||||||
Purchases of debt securities available for sale | (89,815) | (386,278) | (1,137,996) | ||||||||||||||
Proceeds from maturities and calls of debt securities held to maturity | 54,543 | 125,456 | — | ||||||||||||||
Net (increase) decrease in loans held for investment | (290,174) | (312,562) | 251,856 | ||||||||||||||
Purchases of premises and equipment | (4,055) | (2,663) | (2,014) | ||||||||||||||
Proceeds from sale of foreclosed assets | 184 | 795 | 2,117 | ||||||||||||||
Proceeds from sale of premises and equipment | 1,240 | 29 | 642 | ||||||||||||||
Net cash acquired in business acquisition | — | 31,375 | — | ||||||||||||||
Net cash provided by (used in) provided by investing activities | $ | 129,728 | $ | (273,269) | $ | (428,318) | |||||||||||
Financing Activities: | |||||||||||||||||
Net (decrease) increase in: | |||||||||||||||||
Deposits | $ | (73,389) | $ | (109,378) | $ | 567,302 | |||||||||||
Short-term borrowings | (91,609) | 208,964 | (49,421) | ||||||||||||||
Payments of subordinated debt issuance costs | — | — | (9) | ||||||||||||||
Redemption of subordinated debentures | — | — | (10,835) | ||||||||||||||
Payments on finance lease liability | (183) | (164) | (145) | ||||||||||||||
Payments of Federal Home Loan Bank borrowings | (11,000) | (31,000) | (43,000) | ||||||||||||||
Proceeds from other long-term debt | — | 25,000 | — | ||||||||||||||
Payments of other long-term debt | (5,000) | (10,000) | — | ||||||||||||||
Taxes paid relating to the release/lapse of restriction on RSUs | (609) | (281) | (121) | ||||||||||||||
Dividends paid | (15,216) | (14,870) | (14,282) | ||||||||||||||
Repurchase of common stock | — | (2,725) | (11,554) | ||||||||||||||
Net cash (used in) provided by financing activities | $ | (197,006) | $ | 65,546 | $ | 437,935 | |||||||||||
Net change in cash and cash equivalents | $ | (4,708) | $ | (117,395) | $ | 121,171 | |||||||||||
Cash and cash equivalents at beginning of year | 86,435 | 203,830 | 82,659 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 81,727 | $ | 86,435 | $ | 203,830 |
Years Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Cash paid during the period for interest | $ | 97,505 | $ | 27,841 | $ | 21,451 | |||||||||||
Cash paid during the period for income taxes, net of refunds | 3,437 | 13,222 | 17,985 | ||||||||||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||||||||
Transfer of loans to foreclosed assets | $ | 3,972 | $ | 510 | $ | 313 | |||||||||||
Investment securities purchased but not settled | — | — | 2,480 | ||||||||||||||
Transfer of premises and equipment to assets held for sale | 327 | 1,349 | — | ||||||||||||||
Transfer of debt securities available for sale to debt securities held to maturity | — | 1,253,179 | — | ||||||||||||||
Supplemental Schedule of non-cash investing activities from acquisition: | |||||||||||||||||
Non-cash assets acquired: | |||||||||||||||||
Investment securities | $ | — | $ | 119,820 | $ | — | |||||||||||
Total loans held for investment, net | — | 281,326 | — | ||||||||||||||
Premises and equipment | — | 7,363 | — | ||||||||||||||
Core deposit intangible | — | 16,500 | — | ||||||||||||||
Bank-owned life insurance | — | 7,862 | — | ||||||||||||||
Other assets | — | 6,278 | — | ||||||||||||||
Total non-cash assets acquired | — | 439,149 | — | ||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deposits | — | 463,638 | — | ||||||||||||||
Short-term borrowings | — | 1,541 | — | ||||||||||||||
FHLB borrowings | — | 250 | — | ||||||||||||||
Other liabilities | — | 1,326 | — | ||||||||||||||
Total liabilities assumed | $ | — | $ | 466,755 | $ | — |
Years | ||||||||||||||||||||
Type of Assets | Minimum | Maximum | Depreciation Method | |||||||||||||||||
Buildings and leasehold improvements | 10 | - | 39 | Straight-line | ||||||||||||||||
Furniture and equipment | 3 | - | 10 | Straight-line |
(in thousands) | June 9, 2022 | |||||||
Merger consideration | ||||||||
Cash consideration | $ | 46,672 | ||||||
Identifiable net assets acquired, at fair value | ||||||||
Assets acquired | ||||||||
Cash and due from banks | $ | 10,192 | ||||||
Interest earning deposits in banks | 67,855 | |||||||
Debt securities | 119,820 | |||||||
Loans held for investment | 281,326 | |||||||
Premises and equipment | 7,363 | |||||||
Core deposit intangible | 16,500 | |||||||
Other assets | 14,140 | |||||||
Total assets acquired | 517,196 | |||||||
Liabilities assumed | ||||||||
Deposits | $ | (463,638) | ||||||
Other liabilities | (3,117) | |||||||
Total liabilities assumed | (466,755) | |||||||
Identifiable net assets acquired, at fair value | 50,441 | |||||||
Bargain Purchase Gain | $ | 3,769 |
(in thousands) | June 9, 2022 | |||||||
Par value of PCD loans acquired | $ | 15,396 | ||||||
PCD ACL at acquisition | (3,371) | |||||||
Non-credit discount on PCD loans | (1,005) | |||||||
Purchase price of PCD loans | $ | 11,020 |
Unaudited Pro Forma for the | ||||||||||||||
Years Ended December 31, | ||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | ||||||||||||
Total revenues | $ | 217,157 | $ | 223,317 | ||||||||||
Net Income | $ | 61,451 | $ | 71,376 | ||||||||||
EPS - basic | $ | 3.93 | $ | 4.50 | ||||||||||
EPS - diluted | $ | 3.91 | $ | 4.49 |
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Noninterest Expense | |||||||||||||||||
Compensation and employee benefits | $ | 70 | $ | 471 | $ | — | |||||||||||
Occupancy expense of premises, net | — | 1 | — | ||||||||||||||
Equipment | — | 29 | 18 | ||||||||||||||
Legal and professional | 191 | 948 | 202 | ||||||||||||||
Data processing | 65 | 511 | — | ||||||||||||||
Marketing | 38 | 164 | 2 | ||||||||||||||
Communications | — | 3 | — | ||||||||||||||
Other | 28 | 74 | 2 | ||||||||||||||
Total acquisition-related expenses | $ | 392 | $ | 2,201 | $ | 224 |
As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 149 | $ | 8,417 | $ | 492 | $ | 114,713 | $ | 8,853 | $ | 123,130 | $ | 9,345 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 19 | — | — | 4,906 | 142 | 4,906 | 142 | |||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2 | 17,696 | 239 | — | — | 17,696 | 239 | |||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 6,278 | 90 | 127,792 | 21,018 | 134,070 | 21,108 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities | 133 | 2,377 | 80 | 429,222 | 47,287 | 431,599 | 47,367 | |||||||||||||||||||||||||||||||||||||
Total | 323 | $ | 34,768 | $ | 901 | $ | 676,633 | $ | 77,300 | $ | 711,401 | $ | 78,201 |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | 8 | $ | 7,345 | $ | 253 | $ | — | $ | — | $ | 7,345 | $ | 253 | |||||||||||||||||||||||||||||||
State and political subdivisions | 380 | 248,339 | 14,553 | 20,631 | 3,691 | 268,970 | 18,244 | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 27 | 5,323 | 231 | 45 | 1 | 5,368 | 232 | |||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 75,041 | 7,121 | 72,152 | 18,254 | 147,193 | 25,375 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities | 159 | 369,441 | 21,679 | 288,329 | 42,573 | 657,770 | 64,252 | |||||||||||||||||||||||||||||||||||||
Total | 594 | $ | 705,489 | $ | 43,837 | $ | 381,157 | $ | 64,519 | $ | 1,086,646 | $ | 108,356 |
Available For Sale | Held to Maturity | ||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 65,818 | $ | 64,730 | $ | 2,537 | $ | 2,502 | |||||||||||||||
Due after one year through five years | 383,566 | 353,730 | 146,159 | 133,315 | |||||||||||||||||||
Due after five years through ten years | 149,458 | 127,771 | 231,104 | 200,270 | |||||||||||||||||||
Due after ten years | 28,001 | 23,959 | 152,622 | 130,403 | |||||||||||||||||||
$ | 626,843 | $ | 570,190 | $ | 532,422 | $ | 466,490 | ||||||||||||||||
Mortgage-backed securities | 5,448 | 5,311 | 74,904 | 63,269 | |||||||||||||||||||
Collateralized loan obligations | 50,541 | 50,437 | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 190,304 | 169,196 | 467,864 | 365,504 | |||||||||||||||||||
Total | $ | 873,136 | $ | 795,134 | $ | 1,075,190 | $ | 895,263 |
As of December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Agricultural | $ | 118,414 | $ | 115,320 | |||||||
Commercial and industrial | 1,075,003 | 1,055,162 | |||||||||
Commercial real estate: | |||||||||||
Construction & development | 323,195 | 270,991 | |||||||||
Farmland | 184,955 | 183,913 | |||||||||
Multifamily | 383,178 | 252,129 | |||||||||
Commercial real estate-other | 1,333,982 | 1,272,985 | |||||||||
Total commercial real estate | 2,225,310 | 1,980,018 | |||||||||
Residential real estate: | |||||||||||
One- to four- family first liens | 459,798 | 451,210 | |||||||||
One- to four- family junior liens | 180,639 | 163,218 | |||||||||
Total residential real estate | 640,437 | 614,428 | |||||||||
Consumer | 67,783 | 75,596 | |||||||||
Loans held for investment, net of unearned income | 4,126,947 | 3,840,524 | |||||||||
Allowance for credit losses | (51,500) | (49,200) | |||||||||
Total loans held for investment, net | $ | 4,075,447 | $ | 3,791,324 |
Age Analysis of Past-Due Financial Assets | |||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | 90 Days or More Past Due and Accruing | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 117,852 | $ | 338 | $ | — | $ | 224 | $ | 118,414 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,058,301 | 440 | 401 | 15,861 | 1,075,003 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction & development | 323,165 | 30 | — | — | 323,195 | — | |||||||||||||||||||||||||||||
Farmland | 182,759 | 677 | 352 | 1,167 | 184,955 | — | |||||||||||||||||||||||||||||
Multifamily | 383,178 | — | — | — | 383,178 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,327,727 | 2,129 | 1,290 | 2,836 | 1,333,982 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 2,216,829 | 2,836 | 1,642 | 4,003 | 2,225,310 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 453,212 | 3,572 | 1,741 | 1,273 | 459,798 | 468 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 179,339 | 356 | 690 | 254 | 180,639 | — | |||||||||||||||||||||||||||||
Total residential real estate | 632,551 | 3,928 | 2,431 | 1,527 | 640,437 | 468 | |||||||||||||||||||||||||||||
Consumer | 67,622 | 118 | 28 | 15 | 67,783 | — | |||||||||||||||||||||||||||||
Total | $ | 4,093,155 | $ | 7,660 | $ | 4,502 | $ | 21,630 | $ | 4,126,947 | $ | 468 | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 114,922 | $ | 100 | $ | — | $ | 298 | $ | 115,320 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,052,406 | 922 | 111 | 1,723 | 1,055,162 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction & development | 270,905 | 86 | — | — | 270,991 | — | |||||||||||||||||||||||||||||
Farmland | 182,115 | 729 | — | 1,069 | 183,913 | — | |||||||||||||||||||||||||||||
Multifamily | 252,129 | — | — | — | 252,129 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,266,874 | 5,574 | 45 | 492 | 1,272,985 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 1,972,023 | 6,389 | 45 | 1,561 | 1,980,018 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 446,066 | 3,177 | 954 | 1,013 | 451,210 | 565 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 161,989 | 301 | 78 | 850 | 163,218 | — | |||||||||||||||||||||||||||||
Total residential real estate | 608,055 | 3,478 | 1,032 | 1,863 | 614,428 | 565 | |||||||||||||||||||||||||||||
Consumer | 75,443 | 110 | 17 | 26 | 75,596 | — | |||||||||||||||||||||||||||||
Total | $ | 3,822,849 | $ | 10,999 | $ | 1,205 | $ | 5,471 | $ | 3,840,524 | $ | 565 | |||||||||||||||||||||||
Nonaccrual | Nonaccrual with no Allowance for Credit Losses | 90 Days or More Past Due And Accruing | |||||||||||||||||||||||||||||||||
(in thousands) | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Agricultural | $ | 235 | $ | 377 | $ | 12 | $ | 281 | $ | — | $ | — | |||||||||||||||||||||||
Commercial and industrial | 17,770 | 2,728 | 12,549 | 1,049 | — | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Farmland | 1,654 | 2,278 | 1,490 | 1,997 | — | — | |||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 3,441 | 6,397 | 853 | 5,647 | — | — | |||||||||||||||||||||||||||||
Total commercial real estate | 5,095 | 8,675 | 2,343 | 7,644 | — | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 1,888 | 2,275 | 455 | 928 | 468 | 565 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 876 | 1,165 | — | — | — | — | |||||||||||||||||||||||||||||
Total residential real estate | 2,764 | 3,440 | 455 | 928 | 468 | 565 | |||||||||||||||||||||||||||||
Consumer | 27 | 36 | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 25,891 | $ | 15,256 | $ | 15,359 | $ | 9,902 | $ | 468 | $ | 565 |
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 11,859 | $ | 12,149 | $ | 8,352 | $ | 2,752 | $ | 689 | $ | 1,139 | $ | 71,680 | $ | 108,620 | |||||||||||||||||||||||||||||||
Special mention / watch | 266 | 550 | 670 | 91 | 5 | 522 | 3,705 | 5,809 | |||||||||||||||||||||||||||||||||||||||
Substandard | 709 | 193 | 302 | 208 | — | 224 | 2,349 | 3,985 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 12,834 | $ | 12,892 | $ | 9,324 | $ | 3,051 | $ | 694 | $ | 1,885 | $ | 77,734 | $ | 118,414 | |||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 176,021 | $ | 224,924 | $ | 193,011 | $ | 117,326 | $ | 25,555 | $ | 116,661 | $ | 147,690 | $ | 1,001,188 | |||||||||||||||||||||||||||||||
Special mention / watch | 2,541 | 416 | 3,209 | 3,385 | 193 | 272 | 14,692 | 24,708 | |||||||||||||||||||||||||||||||||||||||
Substandard | 897 | 2,921 | 2,010 | 561 | 8,507 | 29,432 | 4,779 | 49,107 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 179,459 | $ | 228,261 | $ | 198,230 | $ | 121,272 | $ | 34,255 | $ | 146,365 | $ | 167,161 | $ | 1,075,003 | |||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 99,803 | $ | 163,126 | $ | 43,189 | $ | 3,393 | $ | 821 | $ | 700 | $ | 9,552 | $ | 320,584 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,097 | — | 464 | — | — | — | 467 | 2,028 | |||||||||||||||||||||||||||||||||||||||
Substandard | 343 | 240 | — | — | — | — | — | 583 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 101,243 | $ | 163,366 | $ | 43,653 | $ | 3,393 | $ | 821 | $ | 700 | $ | 10,019 | $ | 323,195 | |||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 25,666 | $ | 44,907 | $ | 47,068 | $ | 18,863 | $ | 6,587 | $ | 14,845 | $ | 1,642 | $ | 159,578 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,229 | 6,898 | 2,409 | 5,982 | — | 965 | 276 | 17,759 | |||||||||||||||||||||||||||||||||||||||
Substandard | 1,830 | 210 | 1,542 | 1,052 | 926 | 2,029 | 29 | 7,618 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 28,725 | $ | 52,015 | $ | 51,019 | $ | 25,897 | $ | 7,513 | $ | 17,839 | $ | 1,947 | $ | 184,955 | |||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 32,077 | $ | 96,969 | $ | 111,032 | $ | 77,532 | $ | 8,701 | $ | 6,508 | $ | 4,208 | $ | 337,027 | |||||||||||||||||||||||||||||||
Special mention / watch | 5,318 | 1,237 | 277 | 18,984 | 7,850 | 4,586 | — | 38,252 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | — | 7,572 | 327 | — | — | — | 7,899 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 37,395 | $ | 98,206 | $ | 118,881 | $ | 96,843 | $ | 16,551 | $ | 11,094 | $ | 4,208 | $ | 383,178 | |||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 199,698 | $ | 295,066 | $ | 256,718 | $ | 250,676 | $ | 77,509 | $ | 90,170 | $ | 51,827 | $ | 1,221,664 | |||||||||||||||||||||||||||||||
Special mention / watch | 364 | 1,306 | 3,300 | 4,823 | 4,282 | 2,395 | 3,856 | 20,326 | |||||||||||||||||||||||||||||||||||||||
Substandard | 325 | 26,555 | 19,253 | 19,103 | 8,242 | 17,876 | 638 | 91,992 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 200,387 | $ | 322,927 | $ | 279,271 | $ | 274,602 | $ | 90,033 | $ | 110,441 | $ | 56,321 | $ | 1,333,982 | |||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||
Pass/Performing | $ | 62,644 | $ | 125,777 | $ | 92,767 | $ | 54,028 | $ | 19,674 | $ | 81,660 | $ | 13,283 | $ | 449,833 | |||||||||||||||||||||||||||||||
Special mention / watch | 629 | 716 | 36 | 620 | 1,827 | 319 | — | 4,147 | |||||||||||||||||||||||||||||||||||||||
Substandard/Nonperforming | 1,156 | 191 | 738 | 165 | 164 | 3,404 | — | 5,818 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 64,429 | $ | 126,684 | $ | 93,541 | $ | 54,813 | $ | 21,665 | $ | 85,383 | $ | 13,283 | $ | 459,798 | |||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 23,551 | $ | 29,919 | $ | 18,733 | $ | 7,292 | $ | 2,590 | $ | 7,867 | $ | 89,810 | $ | 179,762 | |||||||||||||||||||||||||||||||
Nonperforming | — | 192 | — | 25 | 23 | 637 | — | 877 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 23,551 | $ | 30,111 | $ | 18,733 | $ | 7,317 | $ | 2,613 | $ | 8,504 | $ | 89,810 | $ | 180,639 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 26,028 | $ | 14,319 | $ | 10,042 | $ | 4,421 | $ | 1,451 | $ | 7,350 | $ | 4,145 | $ | 67,756 | |||||||||||||||||||||||||||||||
Nonperforming | — | 22 | — | — | 3 | 2 | — | 27 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 26,028 | $ | 14,341 | $ | 10,042 | $ | 4,421 | $ | 1,454 | $ | 7,352 | $ | 4,145 | $ | 67,783 | |||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 607,768 | $ | 962,918 | $ | 752,137 | $ | 524,570 | $ | 139,536 | $ | 311,683 | $ | 299,882 | $ | 3,598,494 | |||||||||||||||||||||||||||||||
Special mention / watch | 11,444 | 11,123 | 10,365 | 33,885 | 14,157 | 9,059 | 22,996 | 113,029 | |||||||||||||||||||||||||||||||||||||||
Substandard | 5,260 | 30,310 | 31,417 | 21,416 | 17,839 | 52,965 | 7,795 | 167,002 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Performing | 49,579 | 44,238 | 28,775 | 11,713 | 4,041 | 15,217 | 93,955 | 247,518 | |||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 214 | — | 25 | 26 | 639 | — | 904 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 674,051 | $ | 1,048,803 | $ | 822,694 | $ | 591,609 | $ | 175,599 | $ | 389,563 | $ | 424,628 | $ | 4,126,947 | |||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Year-to-date Current Period Gross Write-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 8 | $ | 1 | $ | 17 | $ | 2 | $ | — | $ | — | $ | 28 | |||||||||||||||||||||||||||||||
Commercial and industrial | 239 | 343 | 223 | 133 | 464 | 45 | — | 1,447 | |||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Other | — | — | — | — | — | 2,337 | — | 2,337 | |||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family first liens | — | — | — | — | — | 36 | — | 36 | |||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family junior liens | — | 19 | — | — | — | — | — | 19 | |||||||||||||||||||||||||||||||||||||||
Consumer | — | 621 | 30 | 12 | 12 | 10 | 685 | ||||||||||||||||||||||||||||||||||||||||
Total Current Period Gross Write-offs | $ | 239 | $ | 991 | $ | 254 | $ | 162 | $ | 478 | $ | 2,428 | $ | — | $ | 4,552 |
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 (in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 20,279 | $ | 12,511 | $ | 5,398 | $ | 2,883 | $ | 939 | $ | 1,063 | $ | 65,395 | $ | 108,468 | |||||||||||||||||||||||||||||||
Special mention / watch | 143 | 1,012 | 115 | 36 | — | 604 | 1,655 | 3,565 | |||||||||||||||||||||||||||||||||||||||
Substandard | 48 | 646 | 366 | 4 | 7 | 302 | 1,914 | 3,287 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 20,470 | $ | 14,169 | $ | 5,879 | $ | 2,923 | $ | 946 | $ | 1,969 | $ | 68,964 | $ | 115,320 | |||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 262,500 | $ | 232,263 | $ | 151,567 | $ | 48,199 | $ | 27,680 | $ | 115,877 | $ | 163,205 | $ | 1,001,291 | |||||||||||||||||||||||||||||||
Special mention / watch | 3,975 | 3,574 | 5,465 | 592 | 3,299 | 1,864 | 12,299 | 31,068 | |||||||||||||||||||||||||||||||||||||||
Substandard | 556 | 166 | 1,172 | 756 | 556 | 18,585 | 1,012 | 22,803 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 267,031 | $ | 236,003 | $ | 158,204 | $ | 49,547 | $ | 31,535 | $ | 136,326 | $ | 176,516 | $ | 1,055,162 | |||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 144,597 | $ | 73,832 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 549 | $ | 28,069 | $ | 268,418 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,787 | 499 | — | — | — | — | — | 2,286 | |||||||||||||||||||||||||||||||||||||||
Substandard | 281 | — | — | — | — | 6 | — | 287 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 146,665 | $ | 74,331 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 555 | $ | 28,069 | $ | 270,991 | |||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 55,251 | $ | 52,802 | $ | 28,744 | $ | 7,266 | $ | 8,406 | $ | 12,895 | $ | 1,946 | $ | 167,310 | |||||||||||||||||||||||||||||||
Special mention / watch | 3,058 | 2,229 | 1,470 | — | 225 | 21 | 1,693 | 8,696 | |||||||||||||||||||||||||||||||||||||||
Substandard | 148 | 1,974 | 1,192 | 1,136 | 1,459 | 1,998 | — | 7,907 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 58,457 | $ | 57,005 | $ | 31,406 | $ | 8,402 | $ | 10,090 | $ | 14,914 | $ | 3,639 | $ | 183,913 | |||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 31,018 | $ | 93,907 | $ | 84,573 | $ | 17,137 | $ | 2,549 | $ | 5,161 | $ | 49 | $ | 234,394 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,000 | — | 1,567 | — | 5,931 | 1,178 | — | 9,676 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 7,725 | 334 | — | — | — | — | 8,059 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 32,018 | $ | 101,632 | $ | 86,474 | $ | 17,137 | $ | 8,480 | $ | 6,339 | $ | 49 | $ | 252,129 | |||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 322,753 | $ | 314,376 | $ | 296,368 | $ | 79,408 | $ | 31,041 | $ | 81,708 | $ | 51,064 | $ | 1,176,718 | |||||||||||||||||||||||||||||||
Special mention / watch | 8,858 | 3,399 | 13,245 | 10,365 | 1,137 | 8,122 | 2,518 | 47,644 | |||||||||||||||||||||||||||||||||||||||
Substandard | 752 | 589 | 19,702 | 13,294 | 10,197 | 4,089 | — | 48,623 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 332,363 | $ | 318,364 | $ | 329,315 | $ | 103,067 | $ | 42,375 | $ | 93,919 | $ | 53,582 | $ | 1,272,985 | |||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||
Pass/ performing | $ | 139,289 | $ | 103,534 | $ | 63,627 | $ | 23,831 | $ | 21,868 | $ | 77,967 | $ | 11,438 | 441,554 | ||||||||||||||||||||||||||||||||
Special mention / watch | 1,074 | 611 | 672 | 1,920 | 150 | 702 | — | 5,129 | |||||||||||||||||||||||||||||||||||||||
Substandard/ nonperforming | 175 | 438 | 174 | 175 | 674 | 2,891 | — | 4,527 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 140,538 | $ | 104,583 | $ | 64,473 | $ | 25,926 | $ | 22,692 | $ | 81,560 | $ | 11,438 | $ | 451,210 | |||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 37,296 | $ | 22,908 | $ | 8,906 | $ | 3,058 | $ | 3,757 | $ | 6,330 | $ | 79,798 | $ | 162,053 | |||||||||||||||||||||||||||||||
Nonperforming | — | 23 | 31 | 179 | 756 | 76 | 100 | 1,165 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 37,296 | $ | 22,931 | $ | 8,937 | $ | 3,237 | $ | 4,513 | $ | 6,406 | $ | 79,898 | $ | 163,218 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 32,584 | $ | 18,979 | $ | 7,966 | $ | 3,489 | $ | 1,646 | $ | 6,641 | $ | 4,255 | $ | 75,560 | |||||||||||||||||||||||||||||||
Nonperforming | — | 2 | 16 | 9 | 4 | 5 | — | 36 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 32,584 | $ | 18,981 | $ | 7,982 | $ | 3,498 | $ | 1,650 | $ | 6,646 | $ | 4,255 | $ | 75,596 | |||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 975,687 | $ | 883,225 | $ | 649,601 | $ | 179,713 | $ | 93,541 | $ | 295,220 | $ | 321,166 | $ | 3,398,153 | |||||||||||||||||||||||||||||||
Special mention / watch | 19,895 | 11,324 | 22,534 | 12,913 | 10,742 | 12,491 | 18,165 | 108,064 | |||||||||||||||||||||||||||||||||||||||
Substandard | 1,960 | 11,538 | 22,940 | 15,365 | 12,893 | 27,871 | 2,926 | 95,493 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Performing | 69,880 | 41,887 | 16,872 | 6,547 | 5,403 | 12,971 | 84,053 | 237,613 | |||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 25 | 47 | 188 | 760 | 81 | 100 | 1,201 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,067,422 | $ | 947,999 | $ | 711,994 | $ | 214,726 | $ | 123,339 | $ | 348,634 | $ | 426,410 | $ | 3,840,524 |
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11 | $ | 17,231 | $ | 10,932 | $ | 983 | $ | — | $ | 29,157 | |||||||||||||||||||||||
Collectively evaluated for impairment | 118,403 | 1,057,772 | 2,214,378 | 639,454 | 67,783 | 4,097,790 | |||||||||||||||||||||||||||||
Total | $ | 118,414 | $ | 1,075,003 | $ | 2,225,310 | $ | 640,437 | $ | 67,783 | $ | 4,126,947 | |||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 2,616 | $ | 705 | $ | 16 | $ | — | $ | 3,337 | |||||||||||||||||||||||
Collectively evaluated for impairment | 613 | 19,127 | 23,054 | 4,746 | 623 | 48,163 | |||||||||||||||||||||||||||||
Total | $ | 613 | $ | 21,743 | $ | 23,759 | $ | 4,762 | $ | 623 | $ | 51,500 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,531 | $ | 2,184 | $ | 15,768 | $ | 1,650 | $ | — | $ | 22,133 | |||||||||||||||||||||||
Collectively evaluated for impairment | 112,789 | 1,052,978 | 1,964,250 | 612,778 | 75,596 | 3,818,391 | |||||||||||||||||||||||||||||
Total | $ | 115,320 | $ | 1,055,162 | $ | 1,980,018 | $ | 614,428 | $ | 75,596 | $ | 3,840,524 | |||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 500 | $ | 600 | $ | 705 | $ | 180 | $ | — | $ | 1,985 | |||||||||||||||||||||||
Collectively evaluated for impairment | 423 | 22,255 | 19,418 | 4,498 | 621 | 47,215 | |||||||||||||||||||||||||||||
Total | $ | 923 | $ | 22,855 | $ | 20,123 | $ | 4,678 | $ | 621 | $ | 49,200 |
As of December 31, 2023 | ||||||||||||||||||||||||||||||||
Primary Type of Collateral | ||||||||||||||||||||||||||||||||
(in thousands) | Real Estate | Equipment | Other | Total | ACL Allocation | |||||||||||||||||||||||||||
Agricultural | $ | 11 | $ | — | $ | — | $ | 11 | $ | — | ||||||||||||||||||||||
Commercial and industrial | 15,991 | — | 1,240 | 17,231 | 2,616 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | |||||||||||||||||||||||||||
Farmland | 5,403 | — | — | 5,403 | — | |||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate-other | 5,350 | — | 179 | 5,529 | 705 | |||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
One- to four- family first liens | 481 | — | — | 481 | — | |||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 502 | 502 | 16 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 27,236 | $ | — | $ | 1,921 | $ | 29,157 | $ | 3,337 |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||
Primary Type of Collateral | ||||||||||||||||||||||||||||||||
(in thousands) | Real Estate | Equipment | Other | Total | ACL Allocation | |||||||||||||||||||||||||||
Agricultural | $ | 68 | $ | 2,463 | $ | — | $ | 2,531 | $ | 500 | ||||||||||||||||||||||
Commercial and industrial | 856 | 736 | 592 | 2,184 | 600 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | |||||||||||||||||||||||||||
Farmland | 4,515 | — | — | 4,515 | — | |||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate-other | 11,006 | — | 247 | 11,253 | 705 | |||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
One- to four- family first liens | 929 | — | — | 929 | — | |||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 721 | 721 | 180 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 17,374 | $ | 3,199 | $ | 1,560 | $ | 22,133 | $ | 1,985 |
Combination: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Principal Forgiveness | Payment Delay | Term Extension | Interest Rate Reduction | Term Extension & Interest Rate Reduction | Principal Forgiveness & Term Extension | Principal Forgiveness, Term Extension, & Interest Rate Reduction | Payment Delay & Term Extension | Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 10 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | 0.01 | % | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | 260 | 2,888 | — | 95 | 300 | — | 185 | 0.35 | % | ||||||||||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | 583 | — | — | — | — | — | 0.18 | % | ||||||||||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | 1,823 | — | — | — | — | — | 0.99 | % | ||||||||||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
CRE - Other | — | 5,468 | 1,165 | — | — | — | — | — | 0.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | — | — | — | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | — | — | 14 | — | — | — | — | — | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 5,738 | $ | 6,473 | $ | — | $ | 95 | $ | 300 | $ | — | $ | 185 |
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||
Agricultural | $ | — | $ | 10 | $ | — | $ | — | $ | 10 | |||||||||||||||||||
Commercial and industrial | 3,653 | — | — | 75 | 3,728 | ||||||||||||||||||||||||
CRE - Construction and development | 583 | — | — | — | 583 | ||||||||||||||||||||||||
CRE - Farmland | 1,471 | — | 352 | — | 1,823 | ||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | ||||||||||||||||||||||||
CRE - Other | 6,633 | — | — | — | 6,633 | ||||||||||||||||||||||||
RRE - One- to four- family first liens | — | — | — | — | — | ||||||||||||||||||||||||
RRE - One- to four- family junior liens | 14 | — | — | — | 14 | ||||||||||||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 12,354 | $ | 10 | $ | 352 | $ | 75 | $ | 12,791 |
(dollars in thousands) | Principal Forgiveness | Weighted Average Interest Rate Reduction | Weighted Average Term Extension (Months) | |||||||||||||||||
Commercial and industrial | $ | 63 | 1.25 | % | 7.4 | |||||||||||||||
CRE - Construction and development | — | — | % | 15.9 | ||||||||||||||||
CRE - Farmland | — | — | % | 1.3 | ||||||||||||||||
CRE - Other | 18 | — | % | 5.6 | ||||||||||||||||
RRE - One- to four- family first liens | — | — | % | 3.9 | ||||||||||||||||
RRE - One- to four- family junior liens | — | — | % | 49.8 | ||||||||||||||||
Total | $ | 81 | 1.25 | % | 5.3 |
As of December 31, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||
(in thousands) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||||
Designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps - loans | $ | 41,101 | $ | 2,071 | $ | 902 | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||
Interest rate swaps - securities | 150,000 | — | 821 | — | — | — | ||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 200,000 | 940 | 264 | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 391,101 | $ | 3,011 | $ | 1,987 | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 432,648 | $ | 22,028 | $ | 22,038 | $ | 331,197 | $ | 21,084 | $ | 21,087 | ||||||||||||||||||||||||||
RPAs - protection sold | 18,778 | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||
RPAs - protection purchased | 31,145 | — | 9 | 9,421 | — | — | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | 1,461 | 50 | — | 1,372 | 7 | — | ||||||||||||||||||||||||||||||||
Interest rate forward loan sales contracts | 2,075 | — | 23 | 1,400 | 8 | — | ||||||||||||||||||||||||||||||||
Total | $ | 486,107 | $ | 22,082 | $ | 22,070 | $ | 343,390 | $ | 21,099 | $ | 21,087 |
Amount of Gain (Loss) Recognized in AOCI on Derivative | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Interest rate swaps | $ | 2,471 | $ | — | Interest Expense | $ | 1,795 | $ | — |
Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships | |||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
(in thousands) | Interest Income | Other Income | Interest Income | Other Income | Interest Income | Other Income | |||||||||||||||||||||||||||||
Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded | $ | 1,106 | $ | — | $ | (36) | $ | — | $ | (439) | $ | — | |||||||||||||||||||||||
The effects of fair value and cash flow hedging: | |||||||||||||||||||||||||||||||||||
Gain (loss) on fair value hedging relationships in subtopic 815-20: | |||||||||||||||||||||||||||||||||||
Interest contracts - loans: | |||||||||||||||||||||||||||||||||||
Hedged items | 1,836 | — | (3,536) | — | (1,441) | — | |||||||||||||||||||||||||||||
Derivative designated as hedging instruments | (563) | — | 3,500 | — | 1,052 | — | |||||||||||||||||||||||||||||
Interest contracts - securities: | |||||||||||||||||||||||||||||||||||
Hedged items | 819 | — | — | — | — | — | |||||||||||||||||||||||||||||
Derivative designated as hedging instruments | (530) | — | — | — | — | — | |||||||||||||||||||||||||||||
Income statement effect of cash flow hedging relationship in subtopic 815-20: | |||||||||||||||||||||||||||||||||||
Interest contracts: | |||||||||||||||||||||||||||||||||||
Amount reclassified from AOCI into income | 1,795 | — | — | — | — | — | |||||||||||||||||||||||||||||
Line Item in the Balance Sheet in Which the Hedged Item is Included | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | ||||||||||||
(in thousands) | ||||||||||||||
Loans | $ | 39,976 | $ | (1,163) | ||||||||||
Securities | $ | 150,819 | $ | 819 |
Location in the Consolidated Statements of Income | For the Years Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||||||||
Interest rate swaps | Other income | $ | (8) | $ | 9 | $ | 38 | ||||||||||||||||
RPAs | Other income | 65 | 1 | 2 | |||||||||||||||||||
Interest rate lock commitments | Loan revenue | 43 | (323) | 330 | |||||||||||||||||||
Interest rate forward loan sales contracts | Loan revenue | (31) | (15) | 24 | |||||||||||||||||||
Total | $ | 69 | $ | (328) | $ | 394 |
Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts presented in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet | Net Assets / Liabilities | |||||||||||||||||||||||||||||||
(in thousands) | Financial Instruments | Cash Collateral Received / Paid | |||||||||||||||||||||||||||||||||
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||
Asset Derivatives | $ | 25,093 | $ | — | $ | 25,093 | $ | — | $ | 15,549 | $ | 9,544 | |||||||||||||||||||||||
Liability Derivatives | 24,057 | — | 24,057 | — | 2,420 | 21,637 | |||||||||||||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Asset Derivatives | $ | 23,655 | $ | — | $ | 23,655 | $ | — | $ | 18,858 | $ | 4,797 | |||||||||||||||||||||||
Liability Derivatives | 21,087 | — | 21,087 | — | 3,460 | 17,627 |
As of December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Land | $ | 14,998 | $ | 15,068 | |||||||
Buildings and leasehold improvements | 93,685 | 93,627 | |||||||||
Furniture and equipment | 23,057 | 22,614 | |||||||||
Construction in process | 1,119 | 503 | |||||||||
Premises and equipment | 132,859 | 131,812 | |||||||||
Accumulated depreciation and amortization | 47,117 | 44,687 | |||||||||
Premises and equipment, net | $ | 85,742 | $ | 87,125 |
As of December 31, 2023 | As of December 31, 2022 | ||||||||||||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Core deposit intangible | $ | 58,245 | $ | (41,499) | $ | 16,746 | $ | 58,245 | $ | (35,822) | $ | 22,423 | |||||||||||||||||||||||
Customer relationship intangible | 5,265 | (5,008) | 257 | 5,265 | (4,490) | 775 | |||||||||||||||||||||||||||||
Other | 2,700 | (2,674) | 26 | 2,700 | (2,623) | 77 | |||||||||||||||||||||||||||||
$ | 66,210 | $ | (49,181) | $ | 17,029 | $ | 66,210 | $ | (42,935) | $ | 23,275 | ||||||||||||||||||||||||
Indefinite-lived trade name intangible | 7,040 | 7,040 | |||||||||||||||||||||||||||||||||
Total other intangible assets, net | $ | 24,069 | $ | 30,315 | |||||||||||||||||||||||||||||||
(in thousands) | Core Deposit Intangible | Customer Relationship Intangible | Other | Total | |||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||
2024 | $ | 4,705 | $ | 239 | $ | 24 | $ | 4,968 | |||||||||||||||
2025 | 3,751 | 18 | 2 | 3,771 | |||||||||||||||||||
2026 | 2,797 | — | — | 2,797 | |||||||||||||||||||
2027 | 1,843 | — | — | 1,843 | |||||||||||||||||||
2028 | 1,325 | — | — | 1,325 | |||||||||||||||||||
Thereafter | 2,325 | — | — | 2,325 | |||||||||||||||||||
Total | $ | 16,746 | $ | 257 | $ | 26 | $ | 17,029 |
As of December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Bank-owned life insurance | $ | 98,039 | $ | 95,539 | |||||||
Interest receivable | 29,768 | 27,090 | |||||||||
FHLB stock | 5,806 | 19,248 | |||||||||
Mortgage servicing rights | 13,333 | 13,421 | |||||||||
Operating lease right-of-use assets, net | 2,337 | 2,492 | |||||||||
Federal and state taxes, current | 1,556 | 2,366 | |||||||||
Federal and state taxes, deferred | 31,218 | 39,071 | |||||||||
Derivative assets | 25,093 | 23,655 | |||||||||
Other receivables/assets | 15,630 | 13,635 | |||||||||
$ | 222,780 | $ | 236,517 |
As of December 31, | ||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||
Noninterest bearing deposits | $ | 897,053 | $ | 1,053,450 | ||||||||||
Interest checking deposits | 1,320,435 | 1,624,278 | ||||||||||||
Money market deposits | 1,105,493 | 937,340 | ||||||||||||
Savings deposits | 650,655 | 664,169 | ||||||||||||
Time deposits of $250 and under | 973,253 | 686,233 | ||||||||||||
Time deposits over $250 | 448,784 | 503,472 | ||||||||||||
Total deposits | $ | 5,395,673 | $ | 5,468,942 |
(in thousands) | |||||
2024 | $ | 1,236,794 | |||
2025 | 130,541 | ||||
2026 | 30,685 | ||||
2027 | 10,185 | ||||
2028 | 7,213 | ||||
Thereafter | 6,619 | ||||
Total | $ | 1,422,037 |
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(dollars in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | ||||||||||||||||||||||
Securities sold under agreements to repurchase | 0.72 | % | $ | 5,064 | 1.32 | % | $ | 156,373 | ||||||||||||||||||
Federal Home Loan Bank advances | 5.64 | 10,200 | 4.48 | 235,500 | ||||||||||||||||||||||
Federal Reserve Bank borrowings | 4.82 | 285,000 | — | — | ||||||||||||||||||||||
Total | 4.78 | % | $ | 300,264 | 3.22 | % | $ | 391,873 |
December 31, 2023 | Face Value | Book Value | Interest Rate | Rate | Maturity Date | Callable Date | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,970 | Three-month CME Term SOFR + 0.26% Spread + 1.68% Margin | 7.33 | % | 06/15/2036 | 06/15/2011 | |||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | 12,372 | 11,034 | Three-month CME Term SOFR + 0.26% Spread + 1.65% | 7.30 | % | 09/15/2037 | 06/15/2012 | |||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | 2,062 | 1,861 | Three-month CME Term SOFR + 0.26% Spread + 2.15% | 7.77 | % | 09/23/2036 | 09/23/2011 | |||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | 7,217 | 6,964 | Three-month CME Term SOFR + 0.26% Spread + 3.50% | 9.15 | % | 03/15/2038 | 03/15/2013 | |||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month CME Term SOFR + 0.26% Spread + 1.59% | 7.24 | % | 12/15/2037 | 12/15/2012 | |||||||||||||||||||||||||||||||
Total | $ | 44,847 | $ | 42,293 | ||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,928 | Three-month LIBOR + 1.68% | 6.45 | % | 06/15/2036 | 06/15/2011 | |||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | 12,372 | 10,969 | Three-month LIBOR + 1.65% | 6.42 | % | 09/15/2037 | 06/15/2012 | |||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | 2,062 | 1,832 | Three-month LIBOR + 2.15% | 6.88 | % | 09/23/2036 | 09/23/2011 | |||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | 7,217 | 6,923 | Three-month LIBOR + 3.50% | 8.27 | % | 03/15/2038 | 03/15/2013 | |||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 6.36 | % | 12/15/2037 | 12/15/2012 | |||||||||||||||||||||||||||||||
Total | $ | 44,847 | $ | 42,116 |
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | ||||||||||||||||||||||
Finance lease payable | 8.89 | % | $ | 604 | 8.89 | % | $ | 787 | ||||||||||||||||||
FHLB borrowings | 3.11 | 6,262 | 2.91 | 17,301 | ||||||||||||||||||||||
Notes payable to unaffiliated bank | 6.89 | 10,000 | 5.67 | 15,000 | ||||||||||||||||||||||
Total | 5.56 | % | $ | 16,866 | 4.30 | % | $ | 33,088 |
(in thousands) | Weighted Average Rate | Amount | ||||||||||||
Due in 2024 | 3.11 | % | $ | 6,250 | ||||||||||
Valuation adjustment from acquisition accounting | 12 | |||||||||||||
Total | $ | 6,262 |
December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Current: | |||||||||||||||||
Federal tax expense | $ | 2,438 | $ | 7,204 | $ | 12,675 | |||||||||||
State tax expense | 1,866 | 4,232 | 5,549 | ||||||||||||||
Deferred: | |||||||||||||||||
Deferred income tax expense | (330) | 4,326 | 1,768 | ||||||||||||||
Total income tax provision | $ | 3,974 | $ | 15,762 | $ | 19,992 |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | % of Pretax Income | Amount | % of Pretax Income | Amount | % of Pretax Income | |||||||||||||||||||||||||||||
Income tax based on statutory rate | $ | 5,215 | 21.0 | % | $ | 16,085 | 21.0 | % | $ | 18,790 | 21.0 | % | |||||||||||||||||||||||
Tax-exempt interest | (2,391) | (9.6) | (3,505) | (4.6) | (3,500) | (3.9) | |||||||||||||||||||||||||||||
Bank-owned life insurance | (525) | (2.1) | (484) | (0.6) | (451) | (0.5) | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 1,476 | 5.9 | 3,805 | 5.0 | 4,624 | 5.2 | |||||||||||||||||||||||||||||
Bargain purchase gain | — | — | (792) | (1.0) | — | — | |||||||||||||||||||||||||||||
Non-deductible acquisition expenses | 36 | 0.2 | 55 | 0.1 | 41 | — | |||||||||||||||||||||||||||||
General business credits | (40) | (0.2) | (60) | (0.1) | 22 | — | |||||||||||||||||||||||||||||
State tax reduction | — | — | 835 | 1.1 | — | — | |||||||||||||||||||||||||||||
Other | 203 | 0.8 | (177) | (0.3) | 466 | 0.5 | |||||||||||||||||||||||||||||
Total income tax expense | $ | 3,974 | 16.0 | % | $ | 15,762 | 20.6 | % | $ | 19,992 | 22.3 | % |
December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Deferred income tax assets: | |||||||||||
Allowance for credit losses | $ | 14,232 | $ | 13,693 | |||||||
Deferred compensation | 3,441 | 3,299 | |||||||||
Net operating losses (state and federal) | 8,407 | 7,707 | |||||||||
Unrealized losses on investment securities | 22,172 | 30,355 | |||||||||
Accrued compensation | 1,189 | 1,565 | |||||||||
ROU liabilities | 781 | 852 | |||||||||
Other | 1,975 | 2,474 | |||||||||
Gross deferred tax assets | 52,197 | 59,945 | |||||||||
Deferred income tax liabilities: | |||||||||||
Premises and equipment depreciation and amortization | 5,272 | 5,020 | |||||||||
Purchase accounting adjustments | 2,674 | 3,220 | |||||||||
Mortgage servicing rights | 3,382 | 3,403 | |||||||||
ROU assets | 754 | 804 | |||||||||
Other | 756 | 1,237 | |||||||||
Gross deferred tax liabilities | 12,838 | 13,684 | |||||||||
Net deferred income tax asset | 39,359 | 46,261 | |||||||||
Valuation allowance | 8,141 | 7,190 | |||||||||
Net deferred tax asset | $ | 31,218 | $ | 39,071 |
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Balance, beginning | $ | 1,087 | $ | 1,246 | $ | 1,395 | |||||||||||
Company contributions and interest | 80 | (12) | 79 | ||||||||||||||
Cash payments made | (137) | (147) | (228) | ||||||||||||||
Balance, ending | $ | 1,030 | $ | 1,087 | $ | 1,246 |
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Balance, beginning | $ | 3,597 | $ | 4,289 | $ | 4,771 | |||||||||||
Company paid interest | 90 | 103 | 137 | ||||||||||||||
Cash payments made | (418) | (795) | (619) | ||||||||||||||
Balance, ending | $ | 3,269 | $ | 3,597 | $ | 4,289 |
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Balance, beginning | $ | 6,156 | $ | 5,880 | $ | 6,159 | |||||||||||
Employee deferrals | 692 | 441 | 223 | ||||||||||||||
Company paid interest | 633 | 582 | 142 | ||||||||||||||
Cash payments made | (559) | (747) | (644) | ||||||||||||||
Balance, ending | $ | 6,922 | $ | 6,156 | $ | 5,880 |
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Balance, beginning | $ | 2,205 | $ | 1,991 | $ | 1,905 | |||||||||||
Company deferral expense | 177 | 214 | 86 | ||||||||||||||
Balance, ending | $ | 2,382 | $ | 2,205 | $ | 1,991 |
Weighted-Average | |||||||||||
Shares | Grant-Date Fair Value | ||||||||||
Non-vested at December 31, 2022 | 187,115 | $ | 30.19 | ||||||||
Granted based upon satisfaction of a performance factor | 5,971 | 30.32 | |||||||||
Granted | 96,373 | 28.29 | |||||||||
Vested | (90,803) | 30.12 | |||||||||
Forfeited | (1,309) | 31.18 | |||||||||
Reinvested | 8,495 | 29.52 | |||||||||
Non-vested at December 31, 2023 | 205,842 | $ | 29.30 |
Year Ended December 31, | |||||||||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | 2021 | ||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | |||||||||||
Weighted average shares outstanding | 15,678,045 | 15,649,247 | 15,876,727 | ||||||||||||||
Basic earnings per common share | $ | 1.33 | $ | 3.89 | $ | 4.38 | |||||||||||
Diluted Earnings Per Share: | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | |||||||||||
Weighted average shares outstanding, included all dilutive potential shares | 15,724,842 | 15,700,607 | 15,905,035 | ||||||||||||||
Diluted earnings per common share | $ | 1.33 | $ | 3.87 | $ | 4.37 |
Actual | For Capital Adequacy Purposes With Capital Conservation Buffer(1) | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio(1) | Amount | Ratio | |||||||||||||||||||||||||||||
At December 31, 2023: | |||||||||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $ | 668,748 | 12.53 | % | $ | 560,596 | 10.50 | % | N/A | N/A | |||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 554,177 | 10.38 | 453,816 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 511,884 | 9.59 | 373,731 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 554,177 | 8.58 | 258,487 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||||
MidWestOne Bank: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $ | 656,027 | 12.49 | % | $ | 551,658 | 10.50 | % | $ | 525,388 | 10.00 | % | |||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 606,456 | 11.54 | 446,580 | 8.50 | 420,310 | 8.00 | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 606,456 | 11.54 | 367,772 | 7.00 | 341,502 | 6.50 | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 606,456 | 9.39 | 258,339 | 4.00 | 322,924 | 5.00 | |||||||||||||||||||||||||||||
At December 31, 2022: | |||||||||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $ | 653,380 | 12.07 | % | $ | 568,452 | 10.50 | % | N/A | N/A | |||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 544,300 | 10.05 | 460,175 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 502,184 | 9.28 | 378,968 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 544,300 | 8.35 | 260,891 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||||
MidWestOne Bank: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $ | 654,297 | 12.10 | % | $ | 567,684 | 10.50 | % | $ | 540,652 | 10.00 | % | |||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 610,217 | 11.29 | 459,554 | 8.50 | 432,522 | 8.00 | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 610,217 | 11.29 | 378,456 | 7.00 | 351,424 | 6.50 | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 610,217 | 9.36 | 260,776 | 4.00 | 325,970 | 5.00 |
December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Commitments to extend credit | $ | 1,203,001 | $ | 1,190,607 | |||||||
Commitments to sell loans | 1,045 | 612 | |||||||||
Standby letters of credit | 7,795 | 18,398 | |||||||||
Total | $ | 1,211,841 | $ | 1,209,617 |
Year Ended December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Balance, beginning | $ | 15,603 | $ | 14,584 | |||||||
Advances | 17,729 | 6,001 | |||||||||
Change due to collections, loans sold, or changes in related parties | (18,692) | (4,982) | |||||||||
Balance, ending | $ | 14,640 | $ | 15,603 | |||||||
Available credit | $ | 14,836 | $ | 8,716 |
Fair Value Measurement at December 31, 2023 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
State and political subdivisions | $ | 130,139 | $ | — | $ | 130,139 | $ | — | |||||||||||||||
Mortgage-backed securities | 5,311 | — | 5,311 | — | |||||||||||||||||||
Collateralized loan obligations | 50,437 | — | 50,437 | — | |||||||||||||||||||
Collateralized mortgage obligations | 169,196 | — | 169,196 | — | |||||||||||||||||||
Corporate debt securities | 440,051 | — | 440,051 | — | |||||||||||||||||||
Derivative assets | 25,093 | — | 25,043 | 50 | |||||||||||||||||||
Mortgage servicing rights | 13,333 | — | 13,333 | — | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | 24,057 | $ | — | $ | 24,057 | $ | — |
Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,345 | $ | — | $ | 7,345 | $ | — | |||||||||||||||
State and political subdivisions | 285,356 | — | 285,356 | — | |||||||||||||||||||
Mortgage-backed securities | 5,944 | — | 5,944 | — | |||||||||||||||||||
Collateralized mortgage obligations | 147,193 | — | 147,193 | — | |||||||||||||||||||
Corporate debt securities | 707,709 | — | 707,709 | — | |||||||||||||||||||
Derivative assets | 23,655 | — | 23,648 | 7 | |||||||||||||||||||
Mortgage servicing rights | 13,421 | — | 13,421 | — | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | 21,087 | $ | — | $ | 21,087 | $ | — |
Fair Value at | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | December 31, 2023 | December 31, 2022 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 50 | $ | 7 | Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions | Pull-through rate | 70 | % | - | 100 | % | 88 | % |
Fair Value Measurement at December 31, 2023 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 6,524 | $ | — | $ | — | $ | 6,524 | |||||||||||||||
Foreclosed assets, net | 3,929 | — | — | 3,929 |
Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 3,159 | $ | — | $ | — | $ | 3,159 | |||||||||||||||
Foreclosed assets, net | 103 | — | — | 103 |
Fair Value at | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | December 31, 2023 | December 31, 2022 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | |||||||||||||||||||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 6,524 | $ | 3,159 | Fair value of collateral | Valuation adjustments | — | % | 33 | % | 11 | % | |||||||||||||||||||||||||||||
Foreclosed assets, net | 3,929 | 103 | Fair value of collateral | Valuation adjustments | 4 | % | 4 | % | 4 | % |
December 31, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 81,727 | $ | 81,727 | $ | 81,727 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 795,134 | 795,134 | — | 795,134 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,075,190 | 895,263 | — | 895,263 | — | ||||||||||||||||||||||||
Loans held for sale | 1,045 | 1,083 | — | 1,083 | — | ||||||||||||||||||||||||
Loans held for investment, net | 4,075,447 | 3,953,368 | — | — | 3,953,368 | ||||||||||||||||||||||||
Interest receivable | 29,768 | 29,768 | — | 29,768 | — | ||||||||||||||||||||||||
FHLB stock | 5,806 | 5,806 | — | 5,806 | — | ||||||||||||||||||||||||
Derivative assets | 25,093 | 25,093 | — | 25,043 | 50 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 897,053 | 897,053 | 897,053 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,498,620 | 4,489,322 | 3,076,582 | 1,412,740 | — | ||||||||||||||||||||||||
Short-term borrowings | 300,264 | 300,264 | 300,264 | — | — | ||||||||||||||||||||||||
Finance leases payable | 604 | 604 | — | 604 | — | ||||||||||||||||||||||||
FHLB borrowings | 6,262 | 6,199 | — | 6,199 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,293 | 37,938 | — | 37,938 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,137 | 61,940 | — | 61,940 | — | ||||||||||||||||||||||||
Other long-term debt | 10,000 | 10,000 | — | 10,000 | — | ||||||||||||||||||||||||
Derivative liabilities | 24,057 | 24,057 | — | 24,057 | — |
December 31, 2022 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 86,435 | $ | 86,435 | $ | 86,435 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 1,153,547 | 1,153,547 | — | 1,153,547 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,129,421 | 924,894 | — | 924,894 | — | ||||||||||||||||||||||||
Loans held for sale | 612 | 622 | — | 622 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,791,324 | 3,702,527 | — | — | 3,702,527 | ||||||||||||||||||||||||
Interest receivable | 27,090 | 27,090 | — | 27,090 | — | ||||||||||||||||||||||||
FHLB stock | 19,248 | 19,248 | — | 19,248 | — | ||||||||||||||||||||||||
Derivative assets | 23,655 | 23,655 | — | 23,648 | 7 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 1,053,450 | 1,053,450 | 1,053,450 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,415,492 | 4,393,315 | 3,225,787 | 1,167,528 | — | ||||||||||||||||||||||||
Short-term borrowings | 391,873 | 391,873 | 391,873 | — | — | ||||||||||||||||||||||||
Finance leases payable | 787 | 787 | — | 787 | — | ||||||||||||||||||||||||
FHLB borrowings | 17,301 | 17,032 | — | 17,032 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,116 | 39,023 | — | 39,023 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,006 | 64,004 | — | 64,004 | — | ||||||||||||||||||||||||
Other long-term debt | 15,000 | 15,000 | — | 15,000 | — | ||||||||||||||||||||||||
Derivative liabilities | 21,087 | 21,087 | — | 21,087 | — |
(dollars in thousands) | Classification | December 31, 2023 | December 31, 2022 | |||||||||||||||||
Operating lease right-of-use assets | $ | 2,337 | $ | 2,492 | ||||||||||||||||
Finance lease right-of-use asset | 255 | 350 | ||||||||||||||||||
Total right-of-use assets | $ | 2,592 | $ | 2,842 | ||||||||||||||||
Operating lease liability | $ | 3,078 | $ | 3,359 | ||||||||||||||||
Finance lease liability | 604 | 787 | ||||||||||||||||||
Total lease liabilities | $ | 3,682 | $ | 4,146 | ||||||||||||||||
Weighted-average remaining lease term: | Operating leases | 10.20 years | 9.23 years | |||||||||||||||||
Finance lease | 2.67 years | 3.67 years | ||||||||||||||||||
Weighted-average discount rate: | Operating leases | 4.43 | % | 4.23 | % | |||||||||||||||
Finance lease | 8.89 | % | 8.89 | % |
Years Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Lease Costs | |||||||||||||||||
Operating lease cost | $ | 1,182 | $ | 1,165 | $ | 1,194 | |||||||||||
Variable lease cost | 28 | 56 | 107 | ||||||||||||||
Interest on lease liabilities (1) | 61 | 76 | 90 | ||||||||||||||
Amortization of right-of-use assets | 96 | 96 | 95 | ||||||||||||||
Net lease cost | $ | 1,367 | $ | 1,393 | $ | 1,486 | |||||||||||
Other Information | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 1,265 | $ | 1,186 | $ | 1,177 | |||||||||||
Operating cash flows from finance lease | 61 | 76 | 90 | ||||||||||||||
Finance cash flows from finance lease | 183 | 164 | 145 | ||||||||||||||
Supplemental non-cash information on lease liabilities: | |||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 857 | 638 | 232 |
(in thousands) | Finance Leases | Operating Leases | |||||||||
Twelve Months Ended: | |||||||||||
December 31, 2024 | $ | 250 | $ | 1,047 | |||||||
December 31, 2025 | 254 | 568 | |||||||||
December 31, 2026 | 172 | 430 | |||||||||
December 31, 2027 | — | 302 | |||||||||
December 31, 2028 | — | 138 | |||||||||
Thereafter | — | 1,600 | |||||||||
Total undiscounted lease payment | $ | 676 | $ | 4,085 | |||||||
Amounts representing interest | (72) | (1,007) | |||||||||
Lease liability | $ | 604 | $ | 3,078 |
(in thousands) | Unrealized Gain (Loss) from AFS Debt Securities | Reclassificationof AFS Debt Securities to HTM | Unrealized Gain from Cash Flow Hedging Instruments | Total | ||||||||||||||||||||||
Balance, December 31, 2020 | $ | 24,592 | $ | — | $ | — | $ | 24,592 | ||||||||||||||||||
Other comprehensive loss before reclassifications | (33,278) | — | — | (33,278) | ||||||||||||||||||||||
Amounts reclassified from AOCI | (179) | — | — | (179) | ||||||||||||||||||||||
Net current-period other comprehensive loss | (33,457) | — | — | (33,457) | ||||||||||||||||||||||
Balance, December 31, 2021 | $ | (8,865) | $ | — | $ | — | $ | (8,865) | ||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (82,788) | 2,805 | — | (79,983) | ||||||||||||||||||||||
Amounts reclassified from AOCI | (199) | — | — | (199) | ||||||||||||||||||||||
Net current-period other comprehensive (loss) income | (82,987) | 2,805 | — | (80,182) | ||||||||||||||||||||||
Balance, December 31, 2022 | $ | (91,852) | $ | 2,805 | $ | — | $ | (89,047) | ||||||||||||||||||
Other comprehensive income before reclassifications | 7,782 | 1,706 | 1,846 | 11,334 | ||||||||||||||||||||||
Amounts reclassified from AOCI | 14,155 | — | (1,341) | 12,814 | ||||||||||||||||||||||
Net current-period other comprehensive income | 21,937 | 1,706 | 505 | 24,148 | ||||||||||||||||||||||
Balance, December 31, 2023 | $ | (69,915) | $ | 4,511 | $ | 505 | $ | (64,899) |
Years Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Investment securities losses (gains), net | $ | 19,768 | $ | (271) | $ | (242) | |||||||||||
Interest income | (819) | — | — | ||||||||||||||
Interest expense | (1,795) | — | — | ||||||||||||||
Income tax expense | (4,340) | 72 | 63 | ||||||||||||||
Net of tax | $ | 12,814 | $ | (199) | $ | (179) |
As of December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Assets | |||||||||||
Cash | $ | 19,818 | $ | 11,749 | |||||||
Investment in subsidiaries | 618,950 | 600,826 | |||||||||
Other assets | 4,094 | 3,364 | |||||||||
Total assets | $ | 642,862 | $ | 615,939 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Long-term debt | $ | 116,430 | $ | 121,122 | |||||||
Other liabilities | 2,054 | 2,024 | |||||||||
Total liabilities | 118,484 | 123,146 | |||||||||
Total shareholders’ equity | 524,378 | 492,793 | |||||||||
Total liabilities and shareholders’ equity | $ | 642,862 | $ | 615,939 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Income | |||||||||||||||||
Dividends received from subsidiaries | $ | 36,500 | $ | 36,000 | $ | 40,750 | |||||||||||
Interest and other income | 153 | 3,349 | 247 | ||||||||||||||
Total income | 36,653 | 39,349 | 40,997 | ||||||||||||||
Expense | |||||||||||||||||
Interest expense | (8,268) | (6,342) | (5,306) | ||||||||||||||
Compensation and employee benefits | (2,860) | (2,976) | (2,523) | ||||||||||||||
Other | (1,214) | (2,960) | (1,139) | ||||||||||||||
Total expenses | (12,342) | (12,278) | (8,968) | ||||||||||||||
Income before income taxes and equity in subsidiaries’ undistributed income | 24,311 | 27,071 | 32,029 | ||||||||||||||
Income tax benefit | 2,573 | 1,768 | 1,764 | ||||||||||||||
Equity in subsidiaries’ undistributed income | (6,025) | 31,996 | 35,693 | ||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||
Operating Activities: | |||||||||||||||||
Net income | $ | 20,859 | $ | 60,835 | $ | 69,486 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Equity in undistributed earnings of subsidiary | 6,025 | (31,996) | (35,693) | ||||||||||||||
Share-based compensation | 2,403 | 2,541 | 2,153 | ||||||||||||||
Net change in other assets and other liabilities | 732 | (433) | 327 | ||||||||||||||
Net cash provided by operating activities | $ | 30,019 | $ | 30,947 | $ | 36,273 | |||||||||||
Investing Activities: | |||||||||||||||||
Proceeds from sales of equity securities | $ | — | $ | 14 | $ | 70 | |||||||||||
Purchases of equity securities | (1,125) | (1,250) | (3) | ||||||||||||||
Proceeds from intercompany sale of bank-owned life insurance | — | — | 5,252 | ||||||||||||||
Net cash paid in business acquisition | — | (44,955) | — | ||||||||||||||
Net cash (used in) provided by investing activities | $ | (1,125) | $ | (46,191) | $ | 5,319 | |||||||||||
Financing Activities: | |||||||||||||||||
Payments of subordinated debt issuance costs | $ | — | $ | — | $ | (9) | |||||||||||
Redemption of subordinated debentures | — | — | (10,835) | ||||||||||||||
Proceeds from other long-term debt | — | 25,000 | — | ||||||||||||||
Payments of other long-term debt | (5,000) | (10,000) | — | ||||||||||||||
Taxes paid relating to the release/lapse of restriction on RSUs | (609) | (281) | (121) | ||||||||||||||
Dividends paid | (15,216) | (14,870) | (14,282) | ||||||||||||||
Repurchase of common stock | — | (2,725) | (11,554) | ||||||||||||||
Net cash used in by financing activities | $ | (20,825) | $ | (2,876) | $ | (36,801) | |||||||||||
Net (decrease) increase in cash | $ | 8,069 | $ | (18,120) | $ | 4,791 | |||||||||||
Cash and cash equivalents at beginning of year | 11,749 | 29,869 | 25,078 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 19,818 | $ | 11,749 | $ | 29,869 |
Three Months Ended | |||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
2023 | |||||||||||||||||||||||
Interest income | $ | 65,386 | $ | 63,572 | $ | 61,350 | $ | 59,305 | |||||||||||||||
Interest expense | 32,827 | 28,997 | 24,388 | 19,229 | |||||||||||||||||||
Net interest income | 32,559 | 34,575 | 36,962 | 40,076 | |||||||||||||||||||
Credit loss expense | 1,768 | 1,551 | 1,597 | 933 | |||||||||||||||||||
Noninterest income (loss) | 3,862 | 9,861 | 8,746 | (4,046) | |||||||||||||||||||
Noninterest expense | 32,131 | 31,544 | 34,919 | 33,319 | |||||||||||||||||||
Income before income taxes | 2,522 | 11,341 | 9,192 | 1,778 | |||||||||||||||||||
Income tax (benefit) expense | (208) | 2,203 | 1,598 | 381 | |||||||||||||||||||
Net income | $ | 2,730 | $ | 9,138 | $ | 7,594 | $ | 1,397 | |||||||||||||||
Earnings per common share | |||||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.58 | $ | 0.48 | $ | 0.09 | |||||||||||||||
Diluted | $ | 0.17 | $ | 0.58 | $ | 0.48 | $ | 0.09 | |||||||||||||||
2022 | |||||||||||||||||||||||
Interest income | $ | 56,757 | $ | 53,421 | $ | 44,729 | $ | 41,852 | |||||||||||||||
Interest expense | 13,193 | 7,688 | 5,004 | 4,516 | |||||||||||||||||||
Net interest income | 43,564 | 45,733 | 39,725 | 37,336 | |||||||||||||||||||
Credit loss expense | 572 | 638 | 3,282 | — | |||||||||||||||||||
Noninterest income | 10,940 | 12,588 | 12,347 | 11,644 | |||||||||||||||||||
Noninterest expense | 34,440 | 34,623 | 32,082 | 31,643 | |||||||||||||||||||
Income before income tax expense | 19,492 | 23,060 | 16,708 | 17,337 | |||||||||||||||||||
Income tax expense | 3,490 | 4,743 | 4,087 | 3,442 | |||||||||||||||||||
Net income | $ | 16,002 | $ | 18,317 | $ | 12,621 | $ | 13,895 | |||||||||||||||
Earnings per common share | |||||||||||||||||||||||
Basic | $ | 1.02 | $ | 1.17 | $ | 0.81 | $ | 0.89 | |||||||||||||||
Diluted | $ | 1.02 | $ | 1.17 | $ | 0.80 | $ | 0.88 |
Exhibit | ||||||||||||||
Number | Description | Incorporated by Reference to: | ||||||||||||
Agreement and Plan of Merger dated November 1, 2021, | Exhibit 2.1 to the Company’s Current Report on Form 8-K | |||||||||||||
by and among MidWestOne Financial Group, Inc., IFBC | filed with the SEC on November 1, 2021 | |||||||||||||
Acquisition Corp., and Iowa First Bancshares Corp.^ | ||||||||||||||
Amended and Restated Articles of Incorporation of | Exhibit 3.3 to the Company’s Amendment No. 1 to | |||||||||||||
MidWestOne Financial Group, Inc. filed with the | Registration Statement on Form S-4 (File No. 333-147628) | |||||||||||||
Secretary of State of the State of Iowa on March 14, 2008 | filed with the SEC on January 14, 2008 | |||||||||||||
Articles of Amendment (First Amendment) to the | Exhibit 3.1 to the Company’s Current Report on Form 8-K | |||||||||||||
Amended and Restated Articles of Incorporation of | filed with the SEC on January 23, 2009 | |||||||||||||
MidWestOne Financial Group, Inc. filed with the | ||||||||||||||
Secretary of State of the State of Iowa on | ||||||||||||||
January 23, 2009 | ||||||||||||||
Articles of Amendment (Second Amendment) to the | Exhibit 3.1 to the Company’s Current Report on Form 8-K | |||||||||||||
Amended and Restated Articles of Incorporation of | filed with the SEC on February 6, 2009 | |||||||||||||
MidWestOne Financial Group, Inc. filed with the | ||||||||||||||
Secretary of State of the State of Iowa on | ||||||||||||||
February 4, 2009 (containing the Certificate of | ||||||||||||||
Designations for the Company’s Fixed Rate | ||||||||||||||
Cumulative Perpetual Preferred Stock, Series A) | ||||||||||||||
Articles of Amendment (Third Amendment) to the | Exhibit 3.1 to the Company’s Form 10-Q for the quarter | |||||||||||||
Amended and Restated Articles of Incorporation of | ended March 31, 2017, filed with the SEC on May 4, 2017 | |||||||||||||
MidWestOne Financial Group, Inc., filed with the Secretary | ||||||||||||||
of State of the State of Iowa on April 21, 2017 | ||||||||||||||
Third Amended and Restated Bylaws, as Amended of | Exhibit 3.1 to the Company’s Current Report on Form 8-K | |||||||||||||
MidWestOne Financial Group, Inc. as of October 18, 2022 | filed with the SEC on October 19, 2022 | |||||||||||||
4.1 | Reference is made to Exhibits 3.1 through 3.5 hereof | N/A | ||||||||||||
Description of the Company’s Securities Registered | Exhibit 4.2 to the Company’s Form 10-K for the year ended | |||||||||||||
Pursuant to Section 12 of the Securities Exchange Act of | December 31, 2022, filed with the SEC on March 13, 2023 | |||||||||||||
1934 |
Exhibit | ||||||||||||||
Number | Description | Incorporated by Reference to: | ||||||||||||
Indenture, dated July 28, 2020, by and between | Exhibit 4.1 to the Company’s Current Report on Form 8-K | |||||||||||||
MidWestOne Financial Group, Inc. and U.S. Bank | filed with the SEC on July 29, 2020 | |||||||||||||
National Association, as trustee | ||||||||||||||
Forms of 5.75% Fixed-to-Floating Rate Subordinated Note | Exhibit 4.1 to the Company’s Current Report on Form 8-K | |||||||||||||
due 2030 (included as Exhibit A-1 and Exhibit A-2 to the | filed with the SEC on July 29, 2020 | |||||||||||||
Indenture filed as Exhibit 4.3 hereto) | ||||||||||||||
MidWestOne Financial Group, Inc. Employee Stock | Exhibit 10.1 to the Company’s Annual Report on Form 10-K | |||||||||||||
Ownership Plan and Trust (Restated as of January 1, | filed with the SEC on March 6, 2020 | |||||||||||||
2013)* | ||||||||||||||
MidWestOne Financial Group, Inc. 2017 Equity | Appendix A of the Company’s Definitive Proxy Statement on | |||||||||||||
Incentive Plan* | Schedule 14A filed with the SEC on March 10, 2017 | |||||||||||||
Form of MidWestOne Financial Group, Inc. 2017 Equity | Exhibit 10.4 to the Company’s Annual Report on Form 10-K | |||||||||||||
Incentive Plan Restricted Stock Unit Award Agreement* | filed with the SEC on March 11, 2021 | |||||||||||||
Form of MidWestOne Financial Group, Inc. 2017 Equity | Exhibit 10.5 to the Company’s Annual Report on Form 10-K | |||||||||||||
Incentive Plan Performance-Based Restricted Stock Unit | filed with the SEC on March 11, 2021 | |||||||||||||
Award Agreement* | ||||||||||||||
Employment Agreement between MidWestOne Financial | Exhibit 10.1 to the Company’s Current Report on | |||||||||||||
Group, Inc. and Charles N. Funk, dated October 18, 2017* | Form 8-K filed with the SEC on October 18, 2017 | |||||||||||||
Supplemental Retirement Agreement between Iowa State | Exhibit 10.13 of the Company’s Registration Statement on | |||||||||||||
Bank & Trust Company (now known as MidWestOne | Form S-4 (File No. 333-147628) filed with the SEC on | |||||||||||||
Bank) and Charles N. Funk, dated November 1, 2001* | November 27, 2007 | |||||||||||||
Employment Agreement between MidWestOne Financial | Exhibit 10.5 to the Company’s Current Report on | |||||||||||||
Group, Inc. and James M. Cantrell, dated October 18, | Form 8-K filed with the SEC on October 18, 2017 | |||||||||||||
2017* | ||||||||||||||
Credit Agreement by and between MidWestOne | Filed herewith | |||||||||||||
Financial Group, Inc. and U.S. Bank National Association | ||||||||||||||
dated June 7, 2022 | ||||||||||||||
First Amendment to the Credit Agreement by and | Filed herewith | |||||||||||||
between MidWestOne Financial Group, Inc. and U.S. Bank | ||||||||||||||
National Association dated September 30, 2022 | ||||||||||||||
Second Amendment to the Credit Agreement by and | Filed herewith | |||||||||||||
between MidWestOne Financial Group, Inc. and U.S. Bank | ||||||||||||||
National Association dated September 19, 2023 | ||||||||||||||
Third Amendment to the Credit Agreement by and | Filed herewith | |||||||||||||
between MidWestOne Financial Group, Inc. and U.S. Bank | ||||||||||||||
National Association dated February 12, 2024 | ||||||||||||||
Employment Agreement between MidWestOne Financial | Exhibit 10.1 to the Company’s Current Report on | |||||||||||||
Group, Inc. and Barry S. Ray, effective June 4, 2018* | Form 8-K filed with the SEC on May 4, 2018 | |||||||||||||
Employment Agreement between MidWestOne Financial | Exhibit 10.1 to the Company’s Current Report on | |||||||||||||
Group, Inc. and Gary L. Sims, effective June 25, 2018* | Form 8-K filed with the SEC on June 11, 2018 | |||||||||||||
Exhibit | ||||||||||||||
Number | Description | Incorporated by Reference to: | ||||||||||||
Change in Control Agreement between MidWestOne | Exhibit 10.23 to the Company’s Annual Report on Form 10-K | |||||||||||||
Financial Group, Inc. and David Lindstrom, effective | filed with the SEC on March 8, 2019 | |||||||||||||
February 21, 2018* | ||||||||||||||
Change in Control Agreement between MidWestOne | Exhibit 10.13 to the Company’s Annual Report on Form 10-K | |||||||||||||
Financial Group, Inc. and Gregory W. Turner, effective | filed with the SEC on March 6, 2020 | |||||||||||||
October 13, 2017* | ||||||||||||||
Amended and Restated MidWestOne Financial Group, Inc. | Exhibit 10.16 to the Company’s Annual Report on Form 10-K | |||||||||||||
Executive Deferred Compensation Plan, effective | filed with the SEC on March 11, 2021 | |||||||||||||
December 15, 2020* | ||||||||||||||
Amended and Restated Employment Agreement between | Exhibit 10.18 to the Company’s Annual Report on Form 10-K | |||||||||||||
MidWestOne Financial Group, Inc. and Len D. Devaisher, | filed with the SEC on March 10, 2022 | |||||||||||||
dated March 8, 2022* | ||||||||||||||
Letter Agreement which revises the Amended and Restated | Exhibit 10.1 to the Company’s Current Report on Form 8-K | |||||||||||||
Employment Agreement between MidWestOne Financial | filed with the SEC on September 29, 2022 | |||||||||||||
Group, Inc. and Len D. Devaisher, dated September 27, 2022* | ||||||||||||||
Employment Agreement between MidWestOne Financial | Exhibit 10.1 to the Company’s Current Report on Form 8-K | |||||||||||||
Group, Inc. and Charles N. Reeves, dated November 1, 2022* | filed with the SEC on October 19, 2022 | |||||||||||||
Letter Agreement, dated January 24, 2023, from the | Exhibit 10.1 to the Company’s Current Report on Form 8-K | |||||||||||||
Compensation Committee of the Board of Directors | filed with the SEC on January 26, 2023 | |||||||||||||
of MidWestOne Financial Group, Inc., to Charles N. Funk | ||||||||||||||
regarding compensation matters* | ||||||||||||||
MidWestOne Financial Group, Inc. 2023 Equity Incentive Plan* | Exhibit 4.6 to the Company’s Form S-8 filed with the SEC on | |||||||||||||
May 5, 2023 | ||||||||||||||
Form of MidWestOne Financial Group, Inc. 2023 Equity | Exhibit 4.7 to the Company’s Form S-8 filed with the SEC on | |||||||||||||
Incentive Plan Restricted Stock Unit Award Agreement* | May 5, 2023 | |||||||||||||
Form of MidWestOne Financial Group, Inc. 2023 Equity | Exhibit 4.8 to the Company’s Form S-8 filed with the SEC on | |||||||||||||
Incentive Plan Performance-Based Restricted Stock Unit | May 5, 2023 | |||||||||||||
Award Agreement* | ||||||||||||||
Insider Trading Policy and Guidelines with Respect to | Filed herewith | |||||||||||||
Certain Transactions in Company Securities of | ||||||||||||||
MidWestOne Financial Group, Inc., as amended | ||||||||||||||
January 23, 2024 | ||||||||||||||
Subsidiaries of MidWestOne Financial Group, Inc. | Filed herewith | |||||||||||||
Consent of RSM US LLP | Filed herewith | |||||||||||||
Certification of Principal Executive Officer pursuant to | Filed herewith | |||||||||||||
Rule 13a-14(a) and Rule 15d-14(a) | ||||||||||||||
Certification of Principal Financial Officer pursuant to | Filed herewith | |||||||||||||
Rule 13a-14(a) and Rule 15d-14(a) | ||||||||||||||
MIDWESTONE FINANCIAL GROUP, INC. | |||||||||||||||||
Dated: | March 8, 2024 | By: | /s/ CHARLES N. REEVES | ||||||||||||||
Charles N. Reeves | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||
By: | /s/ BARRY S. RAY | ||||||||||||||||
Barry S. Ray | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||
By: | /s/ JOHN J. RUPPEL | ||||||||||||||||
John J. Ruppel | |||||||||||||||||
Chief Accounting Officer | |||||||||||||||||
(Principal Accounting Officer) |
Signature | Title | Date | ||||||||||||
/s/ CHARLES N. REEVES | Chief Executive Officer; Director | March 8, 2024 | ||||||||||||
Charles N. Reeves | (Principal Executive Officer) | |||||||||||||
/s/ BARRY S. RAY | Chief Financial Officer | March 8, 2024 | ||||||||||||
Barry S. Ray | (Principal Financial Officer) | |||||||||||||
/s/ JOHN J. RUPPEL | Chief Accounting Officer | March 8, 2024 | ||||||||||||
John J. Ruppel | (Principal Accounting Officer) | |||||||||||||
/s/ KEVIN W. MONSON | Chairman of the Board | March 8, 2024 | ||||||||||||
Kevin W. Monson | ||||||||||||||
/s/ LARRY D. ALBERT | Director | March 8, 2024 | ||||||||||||
Larry D. Albert | ||||||||||||||
/s/ RICHARD R. DONOHUE | Director | March 8, 2024 | ||||||||||||
Richard R. Donohue | ||||||||||||||
/s/ CHARLES N. FUNK | Director | March 8, 2024 | ||||||||||||
Charles N. Funk | ||||||||||||||
/s/ JANET E. GODWIN | Director | March 8, 2024 | ||||||||||||
Janet E. Godwin | ||||||||||||||
/s/ DOUGLAS H. GREEFF | Director | March 8, 2024 | ||||||||||||
Douglas H. Greeff | ||||||||||||||
/s/ RICHARD J. HARTIG | Director | March 8, 2024 | ||||||||||||
Richard J. Hartig | ||||||||||||||
/s/ JENNIFER L. HAUSCHILDT | Director | March 8, 2024 | ||||||||||||
Jennifer L. Hauschildt | ||||||||||||||
/s/ MATTHEW J. HAYEK | Director | March 8, 2024 | ||||||||||||
Matthew J. Hayek | ||||||||||||||
/s/ RUTH E. HEINONEN | Director | March 8, 2024 | ||||||||||||
Ruth E. Heinonen | ||||||||||||||
/s/ NATHANIEL J. KAEDING | Director | March 8, 2024 | ||||||||||||
Nathaniel J. Kaeding | ||||||||||||||
/s/ TRACY S. MCCORMICK | Director | March 8, 2024 | ||||||||||||
Tracy S. McCormick | ||||||||||||||
Article I. DEFINITIONS AND ACCOUNTING TERMS | 1 | |||||||
Section 1.1 Defined Terms | 1 | |||||||
Section 1.2 Accounting Terms and Calculations | 12 | |||||||
Section 1.3 Computation of Time Periods | 12 | |||||||
Section 1.4 Other Definitional Terms | 12 | |||||||
Section 1.5 Delaware Divisions Law and Comparable Laws in Other Jurisdictions | 12 | |||||||
Article II. TERMS OF THE CREDIT FACILITIES | 12 | |||||||
Section 2.1 Lending Commitments | 12 | |||||||
Section 2.2 Procedure for Revolving Loans and Term Loan Advance | 13 | |||||||
Section 2.3 Notes | 13 | |||||||
Section 2.4 Interest Rate | 13 | |||||||
Section 2.5 Payment of the Loans | 14 | |||||||
Section 2.6 Prepayments | 15 | |||||||
Section 2.7 Computations | 15 | |||||||
Section 2.8 Payments | 15 | |||||||
Section 2.9 Unused Revolving Commitment Fee | 16 | |||||||
Section 2.10 Yield Protection | 16 | |||||||
Section 2.11 Capital Adequacy | 17 | |||||||
Section 2.12 Advances and Paying Procedure | 17 | |||||||
Section 2.13 Resting Period | 17 | |||||||
Section 2.14 Existing Credit Agreement | 17 | |||||||
Article III. CONDITIONS PRECEDENT | 17 | |||||||
Section 3.1 Conditions of Initial Transaction | 17 | |||||||
Section 3.2 Conditions Precedent to all Loans | 20 | |||||||
Article IV. REPRESENTATIONS AND WARRANTIES | 20 | |||||||
Section 4.1 Organization, Standing, Etc | 20 | |||||||
Section 4.2 Authorization and Validity | 20 | |||||||
Section 4.3 No Conflict; No Default | 21 | |||||||
Section 4.4 Government Consent | 21 | |||||||
Section 4.5 Financial Condition | 21 | |||||||
Section 4.6 Litigation | 22 | |||||||
Section 4.7 Environmental, Health and Safety Laws | 22 | |||||||
Section 4.8 ERISA | 22 | |||||||
Section 4.9 Federal Reserve Regulations | 22 | |||||||
Section 4.10 Title to Property; Leases; Liens; Subordination | 23 | |||||||
Section 4.11 Taxes | 23 | |||||||
Section 4.12 Trademarks, Patents | 23 | |||||||
Section 4.13 Burdensome Restrictions | 23 | |||||||
Section 4.14 Force Majeure | 23 | |||||||
Section 4.15 Investment Company Act | 23 |
Section 4.16 Retirement Benefits | 23 | |||||||
Section 4.17 Full Disclosure | 24 | |||||||
Section 4.18 Subsidiaries | 24 | |||||||
Section 4.19 Labor Matters | 24 | |||||||
Section 4.20 Bank Holding Company Act | 24 | |||||||
Section 4.21 Capital Stock | 24 | |||||||
Section 4.22 Solvency | 24 | |||||||
Section 4.23 Insurance | 25 | |||||||
Section 4.24 Restrictive Agreements | 25 | |||||||
Section 4.25 First Bancshares Acquisition | 25 | |||||||
Article V. AFFIRMATIVE COVENANTS | 25 | |||||||
Section 5.1 Financial Statements and Reports | 25 | |||||||
Section 5.2 Use of Loan Proceeds | 28 | |||||||
Section 5.3 Existence | 28 | |||||||
Section 5.4 Insurance | 28 | |||||||
Section 5.5 Payment of Taxes and Claims | 28 | |||||||
Section 5.6 Inspection | 29 | |||||||
Section 5.7 Maintenance of Properties | 29 | |||||||
Section 5.8 Books and Records | 29 | |||||||
Section 5.9 Compliance | 29 | |||||||
Section 5.10 ERISA | 29 | |||||||
Section 5.11 Environmental Matters; Reporting | 30 | |||||||
Section 5.12 Further Assurances | 30 | |||||||
Section 5.13 Compliance with Terms of Material Contracts | 30 | |||||||
Article VI. NEGATIVE COVENANTS | 30 | |||||||
Section 6.1 Merger; Acquisitions | 30 | |||||||
Section 6.2 Disposition of Assets | 31 | |||||||
Section 6.3 Plans | 31 | |||||||
Section 6.4 Change in Nature of Business | 31 | |||||||
Section 6.5 Loan Proceeds | 31 | |||||||
Section 6.6 Negative Pledges; Subsidiary Restrictions | 31 | |||||||
Section 6.7 Restricted Payments | 32 | |||||||
Section 6.8 Transactions with Affiliates | 32 | |||||||
Section 6.9 Accounting Changes | 32 | |||||||
Section 6.10 Subordinated Debt | 32 | |||||||
Section 6.11 Indebtedness | 33 | |||||||
Section 6.12 Liens | 33 | |||||||
Section 6.13 Contingent Liabilities | 34 | |||||||
Section 6.14 Non-Performing Loans and OREO to Tangible Capital | 34 | |||||||
Section 6.15 Loan Loss Reserves to Non-Performing Loans | 34 | |||||||
Section 6.16 Total Risk Based Capital | 34 | |||||||
Section 6.17 Regulatory Capital - Bank Subsidiaries | 35 |
Section 6.18 Fixed Charge Coverage Ratio | 35 | |||||||
Section 6.19 Hedging Agreements | 35 | |||||||
Section 6.20 Investments | 35 | |||||||
Section 6.21 First Bancshares Acquisition Documents | 35 | |||||||
Article VII. EVENTS OF DEFAULT AND REMEDIES | 35 | |||||||
Section 7.1 Events of Default | 35 | |||||||
Section 7.2 Remedies | 38 | |||||||
Section 7.3 Deposit Accounts; Offset | 38 | |||||||
Article VIII. MISCELLANEOUS | 38 | |||||||
Section 8.1 Modifications | 39 | |||||||
Section 8.2 Expenses | 39 | |||||||
Section 8.3 Waivers, etc. | 39 | |||||||
Section 8.4 Notices | 39 | |||||||
Section 8.5 Taxes | 39 | |||||||
Section 8.6 Successors and Assigns; Participations; Purchasing Banks | 39 | |||||||
Section 8.7 Confidentiality of Information | 41 | |||||||
Section 8.8 Governing Law and Construction | 41 | |||||||
Section 8.9 Consent to Jurisdiction | 41 | |||||||
Section 8.10 Waiver of Jury Trial | 42 | |||||||
Section 8.11 Survival of Agreement | 42 | |||||||
Section 8.12 Indemnification | 42 | |||||||
Section 8.13 Captions | 43 | |||||||
Section 8.14 Entire Agreement | 43 | |||||||
Section 8.15 Counterparts | 43 | |||||||
Section 8.16 Borrower Acknowledgments | 43 | |||||||
Section 8.17 Interest Rate Limitation | 43 | |||||||
Section 8.18 Electronic Records | 44 | |||||||
Section 8.19 USA PATRIOT NOTIFICATION | 44 | |||||||
Section 6.2(d) (to be reported for December 31 fiscal quarter only) Dispositions of branch banking locations having assets or liabilities, as measured as of the last day of the preceding fiscal year, in an aggregate amount for all such locations not to exceed $200,000,000 during any fiscal year (Maximum: $200,000,000 each fiscal year ending from and after December 31, 2022) | $ | |||||||
Section 6.14 Non-Performing Loans and OREO to Tangible Capital of the Subsidiary Banks, on a combined basis (Maximum: 15.00% as of the last day of each fiscal quarter ending from and after June 30, 2022) | % | |||||||
Section 6.15 The Loan Loss Reserves of the Subsidiary Bank, on a combined basis to Non-Performing Loans of the Subsidiary Banks, on a combined basis (Minimum: 80.00% as of the last day of each fiscal quarter ending from and after June 30, 2022) | % | |||||||
Section 6.16 Total Risk-Based Capital Ratio of the combined Subsidiary Banks (Minimum: 11.00% as of the last day of each fiscal quarter ending from and after June 30, 2022) | % | |||||||
Section 6.17 The Borrower and each Subsidiary Bank [is] / [is not] “well capitalized.” [The Borrower and/or the following Subsidiary Bank(s) [is/are] not “well capitalized: | % | |||||||
Section 6.18 Fixed Charge Coverage Ratio of the Borrower (Minimum: 1.25 to 1.0 as of the last day of each fiscal quarter ending from and after June 30, 2022) | % |
Subsidiary Bank | Number of Shares Issued and Outstanding | Percentage Owned | State of Incorporation | ||||||||
MidWestOne Bank | 100,000/ 100,000 | 100% | Iowa | ||||||||
Subsidiary | Percentage Owned | State of Incorporation | ||||||
ATBancorp Statutory Trust I | 100% | Delaware | ||||||
ATBancorp Statutory Trust II | 100% | Delaware | ||||||
Barron Investment Capital Trust I | 100% | Delaware | ||||||
Central Bancshares Capital Trust II | 100% | Delaware | ||||||
MidWestOne Statutory Trust II | 100% | Delaware | ||||||
Name of Trust | Face Value (in thousands) | Book Value (in thousands) | Index/Spread | [Current]Interest Rate | Maturity Date | Call Date | ||||||||||||||
ATBancorp Statutory Trust I ATBancorp Statutory Trust II Barron Investment Capital Trust I Central Bancshares Capital Trust II MidWestOne Statutory Trust II | $ 7,732 12,372 2,062 7,217 15,464 | $ 6,898 10,923 1,808 6,891 15,464 | Three-month LIBOR + 1.68% Three-month LIBOR + 1.65% Three-month LIBOR + 2.15% Three-month LIBOR + 3.50% Three-month LIBOR + 1.59% | 2.51 % 2.48 % 3.11 % 4.33 % 2.42 % | 06/15/2036 09/15/2037 09/23/2036 03/15/2038 12/15/2037 | 06/15/2011 06/15/2012 09/23/2011 03/15/2013 12/15/2012 | ||||||||||||||
TRUPs Total | $44,847 | $41,984 |
Face Value (in thousands) | Book Value (in thousands) | [Current]Interest Rate | Maturity Date | Call Date | |||||||||||||
Subordinated Debt | $65,000 | $63,908 | 5.75% | 07/30/2030 | 07/30/2025 |
Subsidiaries of the Company | Organized Under the Laws of | Percent Owned by the Company | ||||||||||||
MidWestOne Bank | State of Iowa | 100% | ||||||||||||
MidWestOne Statutory Trust II | State of Delaware | 100% of common securities | ||||||||||||
Central Bancshares Capital Trust II | State of Delaware | 100% of common securities | ||||||||||||
Barron Investment Capital Trust I | State of Delaware | 100% of common securities | ||||||||||||
ATBancorp Statutory Trust I | State of Delaware | 100% of common securities | ||||||||||||
ATBancorp Statutory Trust II | State of Delaware | 100% of common securities |
1) | I have reviewed this Annual Report on Form 10-K of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report; | |||||||||||||
4) | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ CHARLES N. REEVES | |||||
Charles N. Reeves | |||||
Chief Executive Officer | |||||
Date: | March 8, 2024 |
1) | I have reviewed this Annual Report on Form 10-K of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report; | |||||||||||||
4) | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ BARRY S. RAY | |||||
Barry S. Ray | |||||
Chief Financial Officer | |||||
Date: | March 8, 2024 |
1) | I have reviewed this Annual Report on Form 10-K of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report; | |||||||||||||
4) | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ JOHN J. RUPPEL | |||||
John J. Ruppel | |||||
Chief Accounting Officer | |||||
Date: | March 8, 2024 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ CHARLES N. REEVES | |||||
Charles N. Reeves | |||||
Chief Executive Officer | |||||
Date: | March 8, 2024 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ BARRY S. RAY | |||||
Barry S. Ray | |||||
Chief Financial Officer | |||||
Date: | March 8, 2024 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ JOHN J. RUPPEL | |||||
John J. Ruppel | |||||
Chief Accounting Officer | |||||
Date: | March 8, 2024 |