CONNECTONE BANCORP, INC., 10-Q filed on 5/5/2023
Quarterly Report
v3.23.1
Document And Entity Information - shares
 3 Months Ended
Mar. 31, 2023
May 05, 2023
Document Information [Line Items]    
Entity Central Index Key 0000712771  
Entity Registrant Name ConnectOne Bancorp, Inc.  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2023  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 001-40751  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 52-1273725  
Entity Address, Address Line One 301 Sylvan Avenue  
Entity Address, City or Town Englewood Cliffs  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07632  
City Area Code 201  
Local Phone Number 816-8900  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   39,179,051
Depositary Shares [Member]    
Document Information [Line Items]    
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock)  
Trading Symbol CNOBP  
Security Exchange Name NASDAQ  
Common Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common stock  
Trading Symbol CNOB  
Security Exchange Name NASDAQ  
v3.23.1
Consolidated Statements of Condition (Current Period Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
ASSETS    
Cash and due from banks $ 58,063 $ 61,629
Interest-bearing deposits with banks 504,353 206,686
Cash and cash equivalents 562,416 268,315
Investment securities 629,001 634,884
Equity securities 18,025 15,811
Loans held-for-sale 11,197 13,772
Loans receivable 8,132,119 8,099,689
Less: Allowance for credit losses - loans 87,002 90,513
Net loans receivable 8,045,117 8,009,176
Investment in restricted stock, at cost 46,379 46,604
Bank premises and equipment, net 29,603 27,800
Accrued interest receivable 46,301 46,062
Bank owned life insurance 232,859 231,328
Right of use operating lease assets 9,541 10,179
Other real estate owned 0 264
Goodwill 208,372 208,372
Core deposit intangibles 6,940 7,312
Other assets 114,716 125,069
Total assets 9,960,467 9,644,948
Deposits:    
Noninterest-bearing 1,345,265 1,501,614
Interest-bearing 6,407,911 5,855,008
Total deposits 7,753,176 7,356,622
Borrowings 852,611 857,622
Subordinated debentures, net 79,060 153,255
Operating lease liabilities 10,717 11,397
Other liabilities 73,933 87,301
Total liabilities 8,769,497 8,466,197
STOCKHOLDERS’ EQUITY    
Preferred Stock, no par value; $1,000 per share liquidation preference; Authorized 5,000,000 shares; issued 115,000 shares as of March 31, 2023 and as of December 31, 2022; outstanding 115,000 shares as of March 31, 2023 and as of December 31, 2022 110,927 110,927
Common stock, no par value: Authorized 100,000,000 shares; issued 42,083,240 shares as of March 31, 2023 and 41,942,149 shares as of December 31, 2022; outstanding 39,179,051 shares as of March 31, 2023 and 39,243,123 as of December 31, 2022 586,946 586,946
Additional paid-in capital 31,350 30,126
Retained earnings 553,261 535,915
Treasury stock, at cost 2,904,189 common shares as of March 31, 2023 and 2,699,026 as of December 31, 2022 (57,652) (52,799)
Accumulated other comprehensive loss (33,862) (32,364)
Total stockholders’ equity 1,190,970 1,178,751
Total liabilities and stockholders’ equity $ 9,960,467 $ 9,644,948
v3.23.1
Consolidated Statements of Condition (Current Period Unaudited) (Parentheticals) - $ / shares
Mar. 31, 2023
Dec. 31, 2022
Preferred Stock, No Par Value (in dollars per share) $ 0 $ 0
Peferred Stock, Liquidation Preference Per Share (in dollars per share) $ 1,000 $ 1,000
Preferred Stock, Shares Authorized (in shares) 5,000,000 5,000,000
Preferred Stock, Shares Issued (in shares) 115,000 115,000
Preferred Stock, Shares Outstanding (in shares) 115,000 115,000
Common Stock, No Par Value (in dollars per share) $ 0 $ 0
Common Stock, Shares Authorized (in shares) 100,000,000 100,000,000
Common Stock, Shares, Issued (in shares) 42,083,240 41,942,149
Common Stock, Shares, Outstanding (in shares) 39,179,051 39,243,123
Treasury Stock, Common, Shares (in shares) 2,904,189 2,699,026
v3.23.1
Consolidated Statements of Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Interest income    
Interest and fees on loans $ 106,903 $ 76,025
Interest and dividends on investment securities:    
Taxable 4,229 1,873
Tax-exempt 1,092 709
Dividends 898 214
Interest on federal funds sold and other short-term investments 2,975 120
Total interest income 116,097 78,941
Interest expense    
Deposits 40,087 5,010
Borrowings 8,926 3,573
Total interest expense 49,013 8,583
Net interest income 67,084 70,358
Provision for credit losses 1,000 1,450
Net interest income after provision for credit losses 66,084 68,908
Noninterest income    
Deposit, loan and other income 1,403 1,743
Income on bank owned life insurance 1,531 1,206
Net gains on sale of loans held-for-sale 49 701
Net losses on equity securities (191) (596)
Total noninterest income 2,792 3,054
Noninterest expenses    
Salaries and employee benefits 22,261 18,783
Occupancy and equipment 2,761 1,929
FDIC insurance 950 606
Professional and consulting 2,194 1,792
Marketing and advertising 532 351
Information technology and communications 3,061 2,866
Amortization of intangibles 372 433
Other components of net periodic pension expense (25) (143)
Increase in value of acquisition price 0 683
Other expenses 2,764 1,930
Total noninterest expenses 34,870 29,230
Income before income tax expense 34,006 42,732
Income tax expense 9,077 11,351
Net income 24,929 31,381
Preferred dividends 1,509 1,509
Net income available to common stockholders $ 23,420 $ 29,872
Earnings per common share    
Basic (in dollars per share) $ 0.60 $ 0.76
Diluted (in dollars per share) $ 0.59 $ 0.75
v3.23.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Net income $ 24,929 $ 31,381
Other comprehensive income (loss):    
Unrealized holding gains (losses) on available-for-sale securities arising during the period 6,528 (30,625)
Tax effect (2,045) 8,139
Net of tax 4,483 (22,486)
Reclassification adjustment for realized gains included in net income 0 0
Tax effect 0 0
Net of tax 0 0
Unrealized (losses) gains on cash flow hedges (4,361) 19,000
Tax effect 1,312 (5,341)
Net of tax (3,049) 13,659
Reclassification adjustment for realized (gains) losses on cash flow hedges (4,267) 525
Tax effect 1,284 (147)
Net of tax (2,983) 378
Unrealized gains on pension plan 0 2,187
Tax effect (0) 615
Net of tax 0 1,572
Reclassification adjustment for realized losses on pension plan included in net income 74 16
Tax effect (23) (4)
Net of tax 51 12
Total other comprehensive loss (1,498) (6,865)
Total comprehensive income $ 23,431 $ 24,516
v3.23.1
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Performance Shares [Member]
Preferred Stock [Member]
Performance Shares [Member]
Common Stock [Member]
Performance Shares [Member]
Additional Paid-in Capital [Member]
Performance Shares [Member]
Retained Earnings [Member]
Performance Shares [Member]
Treasury Stock, Common [Member]
Performance Shares [Member]
AOCI Attributable to Parent [Member]
Performance Shares [Member]
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock, Common [Member]
AOCI Attributable to Parent [Member]
Total
Balance at Dec. 31, 2021               $ 110,927 $ 586,946 $ 27,246 $ 440,169 $ (39,672) $ (1,404) $ 1,124,212
Net income               0 0 0 31,381 0 0 31,381
Other comprehensive income (loss), net of tax               0 0 0 0 0 (6,865) (6,865)
Cash dividends declared on preferred stock               (1,509) (1,509)
Cash dividends declared on common stock               0 0 0 (5,152) 0 0 (5,152)
Exercise of stock options               0 0 91 0 0 0 91
Restricted stock grants, net of forfeitures               0 0 0 0 0 0 0
Stock grants               0 0 0 0 0 0 0
Net shares issued in satisfaction of units earned $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0
Stock-based compensation expense               0 0 1,147 0 0 0 1,147
Repurchase of stock               0 0 0 0 (4,786) 0 (4,786)
Balance at Mar. 31, 2022               110,927 586,946 28,484 464,889 (44,458) (8,269) 1,138,519
Balance at Dec. 31, 2022               110,927 586,946 30,126 535,915 (52,799) (32,364) 1,178,751
Net income               0 0 0 24,929 0 0 24,929
Other comprehensive income (loss), net of tax               0 0 0 0 0 (1,498) (1,498)
Cash dividends declared on preferred stock               0 0 0 (1,509) 0 0 (1,509)
Cash dividends declared on common stock               0 0 0 (6,074) 0 0 (6,074)
Exercise of stock options               0 0 81 0 0 0 81
Restricted stock grants, net of forfeitures               0 0 0 0 0 0 0
Stock grants               0 0 0 0 0 0 0
Net shares issued in satisfaction of units earned $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0
Stock-based compensation expense               0 0 1,143 0 0 0 1,143
Repurchase of stock               0 0 0 0 (4,853) 0 (4,853)
Balance at Mar. 31, 2023               $ 110,927 $ 586,946 $ 31,350 $ 553,261 $ (57,652) $ (33,862) $ 1,190,970
v3.23.1
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Performance Shares [Member]    
Net shares issued in satisfaction of units earned, shares (in shares) 52,353 22,350
Cash dividend declared on preferred stock, per share (in dollars per share) $ 0.328125 $ 0.328125
Cash dividends declared on common stock, per share (in dollars per share) $ 0.17 $ 0.13
Exercise of options, shares (in shares) 6,473 8,774
Restricted stock grants, shares (i (in shares) 49,202 32,454
Stock grants, shares (in shares) 995 153
Net shares issued in satisfaction of units earned, shares (in shares) 32,068 31,383
Repurchase of stock, shares (in shares) 205,163 144,793
v3.23.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities    
Net income $ 24,929 $ 31,381
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization of premises and equipment 1,076 983
Provision for credit losses 1,000 1,450
Amortization of intangibles 372 433
Net accretion of loans (743) (874)
Accretion on bank premises (12) (12)
Accretion on deposits (101) (321)
Amortization on borrowings, net 5 16
Stock-based compensation 1,143 1,147
Losses on equity securities, net 191 596
Gains on sale of loans held-for-sale, net (49) (701)
Loans originated for resale (854) (8,872)
Proceeds from sale of loans held-for-sale 1,202 9,472
Loss on sale of other real estate owned 22 0
Increase in cash surrender value of bank owned life insurance (1,531) (1,206)
Amortization of premium and accretion of discounts on securities available-for-sale 268 872
Amortization of subordinated debentures issuance costs 805 76
(Increase) decrease in accrued interest receivable (239) 71
Net change in operating leases (42) (27)
Increase in other assets (13,321) (10,585)
Increase in other liabilities 2,253 21,945
Net cash provided by operating activities 16,374 45,844
Cash flows from investing activities    
Purchases (4,763) (52,970)
Maturities, calls and principal repayments 16,906 43,950
Purchase of equity securities (2,405) 0
Net redemptions of restricted investment in bank stocks 225 2,572
Payments on loans held-for-sale 17 0
Net increase in loans (33,911) (153,048)
Purchases of premises and equipment (2,867) (718)
Proceeds from sale of OREO 242 0
Net cash used in investing activities (26,556) (160,214)
Cash flows from financing activities    
Net increase in deposits 396,654 227,773
Advances of Federal Home Loan Bank (“FHLB”) borrowings 750,000 150,000
Repayments of FHLB borrowings (755,016) (206,039)
Repayment of subordinated debt (75,000) 0
Cash dividends on preferred stock (1,509) (1,509)
Cash dividends paid on common stock (6,074) (5,152)
Repurchase of treasury stock (4,853) (4,786)
Proceeds from exercise of stock options 81 91
Net cash provided by financing activities 304,283 160,378
Net change in cash and cash equivalents 294,101 46,008
Cash and cash equivalents at beginning of period 268,315 265,536
Cash and cash equivalents at end of period 562,416 311,544
Supplemental disclosures of cash flow information    
Interest paid on deposits and borrowings 46,590 8,794
Income taxes 1,257 300
Supplemental disclosures of noncash activities    
Transfer of loans to other real estate owned 0 316
Transfer of loans from held-for-sale to held-for-investment 13,456 0
Transfer of loans from held-for-investment to held-for-sale $ 11,197 $ 2,391
v3.23.1
Note 1a - Nature of Operations, Principles of Consolidation and Risk and Uncertainties
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1a.   Nature of Operations, Principles of Consolidation and Risk and Uncertainties

 

Nature of Operations

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

 

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-four other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

 

Basis of Presentation and Principals of Consolidation

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The consolidated financial statements of the Parent Corporation are prepared on an accrual basis and include the accounts of the Parent Corporation and the Company. All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements.

 

Segments

 

FASB ASC 28, “Segment Reporting,” requires companies to report certain information about operating segments. The Company is managed as one segment: a community bank. All decisions including but not limited to loan growth, deposit funding, interest rate risk, credit risk and pricing are determined after assessing the effect on the totality of the organization. For example, loan growth is dependent on the ability of the organization to fund this growth through deposits or other borrowings. As a result, the Company is managed as one operating segment.

 

Use of Estimates

 

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

 

Risks and Uncertainties

 

The United States economy is currently experiencing a level of price inflation not experienced since the late 1970’s and early 1980’s. It is therefore difficult to predict the response of consumers and businesses to this level of inflation, and its impact on the economy. In addition, in order to attempt to control and reduce the level of inflation, the Federal Reserve has embarked on a series of interest rate increases along with quantitative tightening to further constrict economic conditions. It is unclear whether the Federal Reserve’s efforts will be successful, and what impact they may have on the United States’ economy. It is possible that the combined effects of inflation and increases in market interest rates could cause the economy of the United States to enter a recession, which could negatively affect the businesses of our borrowers and their ability to repay their loans or need credit, which could negatively affect our results of operations.  

 

 

 

Note 1b. Authoritative Accounting Guidance

 

Adoption of New Accounting Standards in 2023

 

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2022-02 on January 1, 2023 and it did not have a material effect on the Company’s consolidated financial statements.

 

Newly Issued, But Not Yet Effective Accounting Standards

 

In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.  ASU 2022-03 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements.

 

 
v3.23.1
Note 2 - Earnings Per Common Share
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 2.  Earnings per Common Share

 

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”).  The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

 

Earnings per common share have been computed based on the following:

 

  

Three Months Ended

 
  

March 31,

 

(dollars in thousands, except for per share data)

 

2023

  

2022

 

Net income available to common stockholders

 $23,420  $29,872 

Earnings allocated to participating securities

  (44)  (80)

Income attributable to common stock

 $23,376  $29,792 
         

Weighted average common shares outstanding, including participating securities

  39,178   39,560 

Weighted average participating securities

  (74)  (107)

Weighted average common shares outstanding

  39,104   39,453 

Incremental shares from assumed conversions of options, performance units and restricted shares

  197   274 

Weighted average common and equivalent shares outstanding

  39,301   39,727 
         

Earnings per common share:

        

Basic

 $0.60  $0.76 

Diluted

  0.59   0.75 

 

There were no antidilutive share equivalents for the quarters ended March 31, 2023 and  March 31, 2022.

 
v3.23.1
Note 3 - Investment Securities
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3.  Investment Securities

 

The Company’s investment securities are classified as available-for-sale as of March 31, 2023 and December 31, 2022. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of March 31, 2023 and December 31, 2022. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 6 of the Notes to Consolidated Financial Statements for further discussion.

 

The following tables present information related to the Company’s portfolio of securities available-for-sale as of March 31, 2023 and December 31, 2022.

 

                  

Allowance

 
                  

for

 
      

Gross

  

Gross

      

Investment

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

  

Credit

 
  

Cost

  

Gains

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

March 31, 2023

                    

Investment securities available-for-sale:

                    

Federal agency obligations

 $53,301  $1  $(9,787) $43,515  $- 

Residential mortgage pass-through securities

  469,925   322   (50,580)  419,667   - 

Commercial mortgage pass-through securities

  25,424   -   (3,464)  21,960   - 

Obligations of U.S. states and political subdivisions

  155,101   255   (17,060)  138,296   - 

Corporate bonds and notes

  4,000   -   (23)  3,977   - 

Asset-backed securities

  1,505   -   (51)  1,454   - 

Other securities

  132   -   -   132   - 

Total securities available-for-sale

 $709,388  $578  $(80,965) $629,001  $- 
                     

December 31, 2022

                    

Investment securities available-for-sale:

                    

Federal agency obligations

 $54,889  $-  $(10,439) $44,450  $- 

Residential mortgage pass-through securities

  475,263   178   (57,863)  417,578   - 

Commercial mortgage pass-through securities

  25,485   -   (4,381)  21,104   - 

Obligations of U.S. states and political subdivisions

  157,247   111   (14,462)  142,896   - 

Corporate bonds and notes

  7,000   -   (26)  6,974   - 

Asset-backed securities

  1,673   -   (33)  1,640   - 

Other securities

  242   -   -   242   - 

Total securities available-for-sale

 $721,799  $289  $(87,204) $634,884  $- 

 

Investment securities having a carrying value of approximately $377.5 million and $157.0 million as of March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits, borrowings, repurchase agreements, access to unutilized Federal Reserve Discount Window, Bank Term Funding ("BTF") program borrowings, and access to unutilized Federal Home Loan Bank advances and for other purposes required or permitted by law. As of March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

 

The following table presents information for investments in securities available-for-sale as of March 31, 2023, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately.

 

  

March 31, 2023

 
  

Amortized

  

Fair

 
  

Cost

  

Value

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

        

Due in one year or less

 $2,453  $2,453 

Due after one year through five years

  4,079   4,057 

Due after five years through ten years

  2,626   2,620 

Due after ten years

  204,749   178,112 

Residential mortgage pass-through securities

  469,925   419,667 

Commercial mortgage pass-through securities

  25,424   21,960 

Other securities

  132   132 

Total securities available-for-sale

 $709,388  $629,001 

 

There were no realized gains or losses on securities for the three months ended March 31, 2023 and December 31, 2022.

 

 

Impairment Analysis of Available--for-sale Debt Securities

 

The following tables indicate securities in an unrealized loss position for which an allowance for credit losses (“ACL”) has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of March 31, 2023 and December 31, 2022.

 

  

March 31, 2023

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligations

 $43,301  $(9,787) $2,798  $(209) $40,503  $(9,578)

Residential mortgage pass-through securities

  404,073   (50,580)  153,706   (4,627)  250,367   (45,953)

Commercial mortgage pass-through securities

  21,960   (3,464)  6,540   (460)  15,420   (3,004)

Obligations of U.S. states and political subdivisions

  118,428   (17,060)  26,397   (1,194)  92,031   (15,866)

Corporate bonds and notes

  1,977   (23)  1,977   (23)  -   - 

Asset-backed securities

  1,454   (51)  390   (21)  1,064   (30)

Total temporarily impaired securities

 $591,193  $(80,965) $191,808  $(6,534) $399,385  $(74,431)

 

  

December 31, 2022

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligations

 $44,451  $(10,439) $20,517  $(1,831) $23,934  $(8,608)

Residential mortgage pass-through securities

  403,039   (57,863)  218,918   (13,869)  184,121   (43,994)

Commercial mortgage pass-through securities

  21,105   (4,381)  14,523   (2,304)  6,582   (2,077)

Obligations of U.S. states and political subdivisions

  133,265   (14,462)  47,446   (3,404)  85,819   (11,058)

Corporate bonds and notes

  4,973   (26)  4,973   (26)  -   - 

Asset-backed securities

  1,640   (33)  1,048   (16)  592   (17)

Total temporarily impaired securities

 $608,473  $(87,204) $307,425  $(21,450) $301,048  $(65,754)

 

The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale. Accrued interest receivable for investment securities available-for-sale as of March 31, 2023 and December 31, 2022, totaled $2.2 million and $2.4 million, respectively.

 

The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities and state and municipal securities have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of March 31, 2023.

 

Federal agency obligations, residential mortgage-backed pass-through securities and commercial mortgage-backed pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government, and the current support they receive is subject to a cap as part of the agreement entered into in 2008. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, we concluded that a zero-allowance approach for these investment securities is appropriate.

 
v3.23.1
Note 4 - Derivatives
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 4. Derivatives

 

As part of our overall asset liability management and strategy the Company uses derivative instruments, which can include interest rate swaps, collars, caps, and floors.  The notional amount does not represent amounts exchanged by the parties.  The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis.

 

Derivatives Designated as Hedges

 

Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner:

 

1) Cash flow hedges: changes in fair value are recognized as a component in other comprehensive income

2) Fair value hedges: changes in fair value are recognized concurrently in earnings

 

As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings. The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.

 

 

Cash Flow Hedges

 

The Company entered into eleven pay fixed-rate interest rate swaps, with a total notional amount of $500 million, all of which were entered into in 2021 and 2022. These are designated as cash flow hedges of current, Federal Home Loan Bank advances. We are required to pay fixed rates of interest ranging from 0.63% to 3.41% and receive variable rates of interest that reset quarterly based on the daily compounding secured overnight financing rate (“SOFR”).  The eleven swaps carry expiration dates ranging from December 2025 to March 2028. The swaps are determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. 

   

The Company previously entered into one forward starting interest rate cap spread transaction, with a total notional amount of $150 million, which became effective on October 1, 2022 and matures in October of 2027 and one additional interest rate cap spread transaction, with a total notional amount of $75 million, which became effective in November 2022 and matures in November of 2027. These are designated as cash flow hedges of brokered certificates of deposits, and the interest rate cap spread is indexed to a benchmark of fed funds with payment required on a monthly basis. The structure of these instruments is such that the Company entered into a total of $225 million in notional amount of sold interest rate cap agreements, in which we are required to pay the counterparty an incremental amount if the index rate exceeds a set cap rate. Simultaneously, the Company purchased a total of $225 million notional amount of interest rate cap agreements in which we receive an incremental amount if the index rate is above a set cap rate.  No payments are required if the index rate is at, or below, the cap rate on the sold or purchased interest rate cap agreements.

 

Net interest (income) expense recorded on these swap and interest rate cap transactions totaled approximately ($4.3) million and $0.5 million during the three months ended March 31, 2023 and March 31, 2022, respectively, and is recorded as a component of either interest expense on FHLB Advances or brokered certificates of deposits.

 

 

The following table presents the net gains (losses) recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow hedge derivative instruments for the periods indicated:

 

  

Three Months Ended March 31, 2023

 
  

Amount of gain (loss) recognized in OCI (Effective Portion)

  

Amount of (gain) loss reclassified from OCI to interest expense

  

Amount of gain recognized in other Noninterest income (Ineffective Portion)

 
  

(dollars in thousands)

 

Interest rate contracts

 $(4,361) $(4,267) $- 
             

 

  

Three Months Ended March 31, 2022

 
  

Amount of gain (loss) recognized in OCI (Effective Portion)

  

Amount of (gain) loss reclassified from OCI to interest expense

  

Amount of gain recognized in other Noninterest income (Ineffective Portion)

 
  

(dollars in thousands)

 

Interest rate contracts

 $19,000  $525  $- 

 

The following table reflects the cash flow hedges included in the consolidated statements of condition as of March 31, 2023 and December 31, 2022:

 

  

March 31, 2023

  

December 31, 2022

 
  

Notional Amount

  

Fair Value

  

Notional Amount

  

Fair Value

 
      

(dollars in thousands)

     

Interest rate contracts

 $950,000  $47,620  $950,000  $56,797 

 
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 5. Loans and the Allowance for Credit Losses

 

Loans Receivable – The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred loan fees, as of March 31, 2023 and December 31, 2022:

 

  March 31, 2023  December 31, 2022 
  

(dollars in thousands)

 

Commercial

 $1,414,226  $1,472,734 

Commercial real estate

  5,835,880   5,795,228 

Commercial construction

  630,469   574,139 

Residential real estate

  259,166   264,748 

Consumer

  1,435   2,312 

Gross loans

  8,141,176   8,109,161 

Net deferred loan fees

  (9,057)  (9,472)

Total loans receivable

 $8,132,119  $8,099,689 

 

As of both   March 31, 2023 and December 31, 2022, loans totaling approximately $2.7 billion were pledged to secure borrowings from the FHLB of New York. During April 2023 the Bank increased its unpaid principal balances of loans pledged to $5.4 billion, as a result of increasing unutilized borrowing capacity at both the Federal Reserve Bank of New York and the FHLB of New York.

 

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale as of March 31, 2023 and December 31, 2022:

 

  March 31, 2023  December 31, 2022 
  

(dollars in thousands)

 

Commercial real estate

 $11,197  $13,473 

Residential real estate

  -   299 

Total carrying amount

 $11,197  $13,772 

 

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an ACL and nonaccrual loans without an ACL as of March 31, 2023 and December 31, 2022:

 

  

March 31, 2023

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $18,766  $555  $19,321 

Commercial real estate

  3,348   22,138   25,486 

Residential real estate

  815   2,045   2,860 

Total

 $22,929  $24,738  $47,667 

 

 

  

December 31, 2022

 
  Nonaccrual loans with ACL  Nonaccrual loans without ACL  Total nonaccrual loans 
  

(dollars in thousands)

 

Commercial

 $23,512  $1,745  $25,257 

Commercial real estate

  10,220   6,597   16,817 

Residential real estate

  604   1,776   2,380 

Total

 $34,336  $10,118  $44,454 

 

Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated and individually evaluated.

 

Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected.

 

 

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. The following table presents loans by origination and risk designation as of March 31, 2023 (dollars in thousands):

 

  

Term loans amortized cost basis by origination year

       
  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Revolving Loans

  

Total Gross Loans

 

Commercial

                                

Pass

 $88,764  $287,784  $275,151  $44,118  $18,468  $135,355  $525,263  $1,374,903 

Special mention

  -   -   -   -   578   8,468   3,312   12,358 

Substandard

  -   802   140   12   1,748   21,867   2,396   26,965 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $88,764  $288,586  $275,291  $44,130  $20,794  $165,690  $530,971  $1,414,226 
                                 

Commercial Real Estate

                                

Pass

 $58,920  $1,586,883  $1,593,747  $374,873  $364,428  $1,335,482  $434,426  $5,748,759 

Special mention

  -   -   -   -   -   37,007   -   37,007 

Substandard

  -   -   1,919   -   5,013   26,265   16,917   50,114 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $58,920  $1,586,883  $1,595,666  $374,873  $369,441  $1,398,754  $451,343  $5,835,880 
                                 

Commercial Construction

                                

Pass

 $-  $4,263  $7,340  $6,721  $-  $-  $603,779  $622,103 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,366   8,366 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $-  $4,263  $7,340  $6,721  $-  $-  $612,145  $630,469 
                                 

Residential

                                

Pass

 $2,768  $44,461  $25,141  $24,036  $21,394  $96,458  $37,979  $252,237 

Special mention

  -   -   -   -   -   662   3,407   4,069 

Substandard

  -   -   -   -   -   2,635   225   2,860 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $2,768  $44,461  $25,141  $24,036  $21,394  $99,755  $41,611  $259,166 
                                 

Consumer

                                

Pass

 $1,182  $157  $-  $7  $-  $1  $88  $1,435 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $1,182  $157  $-  $7  $-  $1  $88  $1,435 
                                 

Total

                                

Pass

 $151,634  $1,923,548  $1,901,379  $449,755  $404,290  $1,567,296  $1,601,535  $7,999,437 

Special mention

  -   -   -   -   578   46,137   6,719   53,434 

Substandard

  -   802   2,059   12   6,761   50,767   27,904   88,305 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $151,634  $1,924,350  $1,903,438  $449,767  $411,629  $1,664,200  $1,636,158  $8,141,176 

 

 

The following table presents loans by origination and risk designation as of December 31, 2022 (dollars in thousands):

 

  

Term loans amortized cost basis by origination year

       
  

2022

  

2021

  

2020

  

2019

  2018  

Prior

  

Revolving Loans

  

Total Gross Loans

 

Commercial

                                

Pass

 $301,636  $305,721  $47,952  $28,177  $52,950  $127,739  $550,483  $1,414,658 

Special mention

  -   -   -   583   26   8,551   3,292   12,452 

Substandard

  7,615   146   15   1,769   11,214   22,596   2,269   45,624 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $309,251  $305,867  $47,967  $30,529  $64,190  $158,886  $556,044  $1,472,734 
                                 

Commercial Real Estate

                                

Pass

 $1,571,751  $1,608,023  $382,987  $358,578  $375,886  $987,982  $401,365  $5,686,572 

Special mention

  3,040   -   -   -   -   37,774   8,839   49,653 

Substandard

  -   1,929   -   6,526   19,138   23,287   8,123   59,003 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,574,791  $1,609,952  $382,987  $365,104  $395,024  $1,049,043  $418,327  $5,795,228 
                                 

Commercial Construction

                                

Pass

 $8,615  $7,605  $6,720  $508  $-  $-  $542,460  $565,908 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,231   8,231 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,615  $7,605  $6,720  $508  $-  $-  $550,691  $574,139 
                                 

Residential Real Estate

                                

Pass

 $45,926  $25,318  $24,409  $21,557  $20,284  $78,314  $41,468  $257,276 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   3,379   4,093   7,472 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $45,926  $25,318  $24,409  $21,557  $20,284  $81,693  $45,561  $264,748 
                                 

Consumer

                                

Pass

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 
                                 

Total

                                

Pass

 $1,930,147  $1,946,667  $462,077  $408,820  $449,120  $1,194,037  $1,535,858  $7,926,726 

Special mention

  3,040   -   -   583   26   46,325   12,131   62,105 

Substandard

  7,615   2,075   15   8,295   30,352   49,262   22,716   120,330 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $1,940,802  $1,948,742  $462,092  $417,698  $479,498  $1,289,624  $1,570,705  $8,109,161 

    

 

Collateral Dependent Loans: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date. The following table presents collateral dependent loans that were individually evaluated for impairment as of March 31, 2023 and December 31, 2022:

 

  

March 31, 2023

 
  Real Estate  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $4,950  $16,650  $21,600 

Commercial real estate

  49,529   -   49,529 

Commercial construction

  8,366   -   8,366 

Residential real estate

  6,114   -   6,114 

Total

 $68,959  $16,650  $85,609 

 

  

December 31, 2022

 
  Real Estate  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $5,352  $22,517  $27,869 

Commercial real estate

  52,477   -   52,477 

Commercial construction

  8,232   -   8,232 

Residential real estate

  5,864   -   5,864 

Total

 $71,925  $22,517  $94,442 

 

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding the effect of net deferred fees, which are past due as of March 31, 2023 and December 31, 2022:

  

  

March 31, 2023

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 
  

(dollars in thousands)

 

Commercial

 $1,929  $-  $-  $19,321  $21,250  $1,392,976  $1,414,226 

Commercial real estate

  5,740   810   -   25,486   32,036   5,803,844   5,835,880 

Commercial construction

  4,707   -   -   -   4,707   625,762   630,469 

Residential real estate

  703   -   -   2,860   3,563   255,603   259,166 

Consumer

  -   -   -   -   -   1,435   1,435 

Total

 $13,079  $810  $-  $47,667  $61,556  $8,079,620  $8,141,176 

 

  

December 31, 2022

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 
  

(dollars in thousands)

 

Commercial

 $306  $-  $-  $25,257  $25,563  $1,447,171  $1,472,734 

Commercial real estate

  90   -   5,591   16,817   22,498   5,772,730   5,795,228 

Commercial construction

  -   -   -   -   -   574,139   574,139 

Residential real estate

  1,569   -   -   2,380   3,949   260,799   264,748 

Consumer

  -   -   -   -   -   2,312   2,312 

Total

 $1,965  $-  $5,591  $44,454  $52,010  $8,057,151  $8,109,161 

 

 

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for credit losses that are allocated to each loan portfolio segment:

 

  

March 31, 2023

 
  

Commercial

  Commercial real estate  

Commercial construction

  Residential real estate  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated impairment

 $5,861  $924  $-  $72  $-  $6,857 

Collectively evaluated impairment

  19,568   52,076   3,966   3,796   6   79,412 

Acquired with deteriorated credit quality individually analyzed

  733   -   -   -   -   733 

Total

 $26,162  $53,000  $3,966  $3,868  $6  $87,002 
                         

Gross loans

                        

Individually evaluated impairment

 $24,204  $49,529  $8,366  $6,115  $-  $88,214 

Collectively evaluated impairment

  1,387,738   5,786,351   622,103   253,051   1,435   8,050,678 

Acquired with deteriorated credit quality individually analyzed

  2,284   -   -   -   -   2,284 

Total

 $1,414,226  $5,835,880  $630,469  $259,166  $1,435  $8,141,176 

 

  

December 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated impairment

 $7,426  $1,003  $-  $50  $-  $8,479 

Collectively evaluated impairment

  19,319   50,818   3,718   4,093   7   77,955 

Acquired with deteriorated credit quality individually analyzed

  2,158   1,921   -   -   -   4,079 

Total

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 
                         

Gross loans

                        

Individually evaluated impairment

 $30,994  $46,886  $8,232  $5,864  $-  $91,976 

Collectively evaluated impairment

  1,436,866   5,742,751   565,907   258,884   2,312   8,006,720 

Acquired with deteriorated credit quality individually analyzed

  4,874   5,591   -   -   -   10,465 

Total

 $1,472,734  $5,795,228  $574,139  $264,748  $2,312  $8,109,161 

 

 

Activity in the Company’s ACL for loans for the three months ended March 31, 2023 is summarized in the tables below.

 

  

Three Months Ended March 31, 2023

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Balance as of December 31, 2022

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 

Charge-offs

  (2,767)  (1,717)  -   -   -   (4,484)

Recoveries

  -   -   -   1   -   1 

Provision for (reversal of) credit losses - loans

  26   975   248   (276)  (1)  972 
                         

Balance as of March 31, 2023

 $26,162  $53,000  $3,966  $3,868  $6  $87,002 

 

Activity in the Company’s ACL for loans for the three months ended March 31, 2022 is summarized in the table below.

 

  

Three Months Ended March 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Balance as of December 31, 2021

 $25,969  $45,589  $3,580  $3,628  $7  $78,773 

Charge-offs

  (49)  (225)  -   -   -   (274)

Recoveries

  1   -   -   31   -   32 

(Reversal of) provision for credit losses - loans

  (462)  2,504   (299)  (204)  -   1,539 
                         

Balance as of March 31, 2022

 $25,459  $47,868  $3,281  $3,455  $7  $80,070 

 

 

Loan Modifications to Borrowers Experiencing Financial Difficulty:

 

The Company adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.

 

The following table presents the amortized cost basis at the end of the reporting period of the loan modifications to borrowers experiencing financial difficulty:

 

 

  

Three Months Ended

 
  

March 31, 2023

 
  

Term Extension

  

% of Portfolio

 
  

(dollars in thousands)

 

Commercial

 $63   0.01%

 

The above table consists of one commercial loan on which 3.0 years was added to the life of the modified loan, which did not have a material effect on the cash flows. 

 

The following table presents the performance of loans that have been modified in the last twelve months:

 

 

             
             
  

March 31, 2023

 
  

Current

  

Past Due 30-89 Days

  

Past Due 90 Days or More

 
  

(dollars in thousands)

 

Commercial

 $63  $-  $- 

 

There were no loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2023 and which were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly.

 

Troubled debt restructurings:

 

Information on loan modifications prior to the adoption of ASU 2022-02 on January 1, 2023 is presented in accordance with the applicable accounting standards in effect at that time. During the three months ended March 31, 2022, the Company modified two loans that were determined to be troubled debt restructuring, a commercial loan and a commercial real estate loan, with outstanding balances of $98 thousand and $8.3 million, respectively. The commercial loan modified as a TDR during the three months ended March 31, 2022 was a maturity extension, while the commercial real estate loan modified as a TDR during the three months ended March 31, 2022 was an interest rate reduction, that was commensurate with a one-time, $500,000, principal paydown.

 

 

 

 

Allowance for Credit Losses for Unfunded Commitments

 

The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the provision for (reversal of) credit losses on the Company’s income statement. The following table presents a roll forward of the allowance for credit losses for unfunded commitments for the three months ended March 31, 2023 and 2022:

 

  

Three Months Ended

  

Three Months Ended

 
  

March 31,

  

March 31,

 
  

2023

  

2022

 
  

(dollars in thousands)

 

Balance at beginning of period

 $3,036  $2,351 

Provision for (reversal of) credit losses - unfunded commitments

  28   (89)

Balance at end of period

 $3,064  $2,262 

 

 

Components of (Reversal of) Provision for Credit Losses

 

The following table summarizes the provision for (reversal of) credit losses for the three months ended March 31, 2023 and 2022 :

 

  

Three Months Ended

  

Three Months Ended

 
  

March 31,

  

March 31,

 
  

2023

  

2022

 
  

(dollars in thousands)

 

Provision for credit losses - loans

 $972  $1,539 

Provision for (reversal of) credit losses - unfunded commitments

  28   (89)

Provision for credit losses

 $1,000  $1,450 

 
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 6. Fair Value Measurements and Fair Value of Financial Instruments

 

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

 

 Level 1:

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

 Level 2:

Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 Level 3:

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).

 

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

 

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

 

Investment Securities Available-for-Sale and Equity Securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

 

Derivatives: The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

 

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of March 31, 2023 and December 31, 2022 are as follows:

 

      

March 31, 2023

 
      

Fair Value Measurements at Reporting Date Using

 
  

Total Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements: Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $43,515  $-  $43,515  $- 

Residential mortgage pass-through securities

  419,667   -   419,667   - 

Commercial mortgage pass-through securities

  21,960   -   21,960   - 

Obligations of U.S. states and political subdivision

  138,296   -   130,808   7,488 

Corporate bonds and notes

  3,977   -   3,977   - 

Asset-backed securities

  1,454   -   1,454   - 

Other securities

  132   132   -   - 

Total available-for-sale

  629,001   132   621,381   7,488 
                 

Equity securities

  18,025   9,892   8,133   - 

Derivatives

  47,620   -   47,620   - 

Total assets

 $694,646  $10,024  $677,134  $7,488 

 

 

      

December 31, 2022

 
      

Fair Value Measurements at Reporting Date Using

 
  

Total Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements: Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $44,450  $-  $44,450  $- 

Residential mortgage pass- through securities

  417,578   -   417,578   - 

Commercial mortgage pass-through securities

  21,104   -   21,104   - 

Obligations of U.S. states and political subdivision

  142,896   -   135,547   7,349 

Corporate bonds and notes

  6,974   -   6,974   - 

Asset-backed securities

  1,640   -   1,640   - 

Other securities

  242   242   -   - 

Total available-for-sale

 $634,884  $242  $627,293  $7,349 
                 

Equity securities

  15,811   9,733   6,078   - 

Derivatives

  56,797   -   56,797   - 

Total assets

 $707,492  $9,975  $690,168  $7,349 

 

There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2023 and during the year ended December 31, 2022.

 

Assets Measured at Fair Value on a Nonrecurring Basis

 

The Company may be required periodically to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022.

 

Loans Held-for-Sale: Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or parts of these loans directly from the purchasing financial institutions (Level 2).

 

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value.  Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets (Level 3).

 

 

Collateral Dependent Loans: The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and are also based on Level 3 inputs.

 

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of March 31, 2023 and December 31, 2022 are as follows:

 

      

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 March 31, 2023  Quoted Prices in Active Markets for Identical Assets (Level 1)  Significant Other Observable Inputs (Level 2)  Significant Unobservable Inputs (Level 3) 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

 $11,635  $-  $-  $11,635 

Commercial real estate

  10,428   -   -   10,428 

Residential real estate

  1,363   -   -   1,363 

 

      

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 December 31, 2022  Quoted Prices in Active Markets for Identical Assets (Level 1)  Significant Other Observable Inputs (Level 2)  Significant Unobservable Inputs (Level 3) 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

 $14,550  $-  $-  $14,550 

Commercial real estate

  17,264   -   -   17,264 

Residential real estate

  1,392   -   -   1,392 

 

Collateral dependent loans – Collateral dependent loans as of March 31, 2023 that required a valuation allowance were $30.6 million with a related valuation allowance of $7.2 million compared to $43.8 million with a related valuation allowance of $10.5 million as of December 31, 2022.

 

 

Assets Measured with Significant Unobservable Level 3 Inputs

 

Recurring basis

 

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023 and for the year ended December 31, 2022:

 

  Municipal Securities 
  

(dollars in thousands)

 

Beginning balance, December 31, 2022

 $7,349 

Principal paydowns

  (74)

Change in unrealized gain (loss)

  213 

Ending balance, March 31, 2023

 $7,488 

  

  Municipal Securities 
  

(dollars in thousands)

 

Beginning balance, December 31, 2021

 $8,565 

Principal paydowns

  (287)

Changes in unrealized gain (loss)

  (929)

Ending balance, December 31, 2022

 $7,349 

 

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

 

March 31, 2023

           
  

Fair Value

 

Valuation Techniques

 

Unobservable Input

 

Rate

 

Securities available-for-sale:

    

(dollars in thousands)

      

Municipal securities

 $7,488 

Discounted cash flows

 

Discount rate

  4.0%

 

December 31, 2022

           
  

Fair Value

 

Valuation Techniques

 

Unobservable Input

 

Rate

 

Securities available-for-sale:

    

(dollars in thousands)

      

Municipal securities

 $7,349 

Discounted cash flows

 

Discount rate

  4.3%

 

 

Nonrecurring basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy of collateral dependent loans.

 

March 31, 2023

           

(dollars in thousands)

 

Fair Value

  

Valuation Techniques

Unobservable Input

 

Range (weighted average)

 

Commercial

 $11,150  

Market approach (100%)

Average transfer price as a price to unpaid principal balance

  65% –96% (67%) 

Commercial

  485  

Appraisals of collateral value

Comparable sales

 -10% to +13% (+3%) 

Commercial real estate

  10,428  

Appraisals of collateral value

Comparable sales

  -15% to +5% (6%) 

Residential real estate

  1,363  

Appraisals of collateral value

Comparable sales

 +21% to +39% (+27%) 

 

December 31, 2022

           

(dollars in thousands)

 

Fair Value

  

Valuation Techniques

Unobservable Input

 

Range (weighted average)

 

Commercial loans

 $14,028  

Market approach (100%)

Average transfer price as a price to unpaid principal balance

  65% to 96% (67%) 

Commercial loans

  522  

Appraisals of collateral value

Adjustment for comparable sales

 

-10% to +13% (+3%)

 

Commercial real estate loans

  17,264  

Appraisals of collateral value

Adjustment for comparable sales

 

-20% to +0% (-15%)

 

Residential real estate loans

  1,392  

Appraisals of collateral value

Adjustment for comparable sales

 

+21% to +39% (22%)

 

 

 

As of March 31, 2023 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2023 and December 31, 2022: 

 

          

Fair Value Measurements

 
  

Carrying Amount

  

Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 
  

(dollars in thousands)

 
                     

March 31, 2023

                    

Financial assets:

                    

Cash and due from banks

 $562,416  $562,416  $562,416  $-  $- 

Securities available-for-sale

  629,001   629,001   132   621,381   7,488 

Restricted investments in bank stocks

  46,379   n/a   n/a   n/a   n/a 

Equity securities

  18,025   18,025   9,892   8,133   - 

Net loans

  8,045,117   7,749,886   -   -   7,749,886 

Derivatives - interest rate contracts

  47,620   47,620   -   47,620   - 

Accrued interest receivable

  46,301   46,301   -   4,829   41,472 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,345,265   1,345,265   1,345,265   -   - 

Interest-bearing deposits

  6,407,911   6,378,261   3,701,249   2,677,012   - 

Borrowings

  852,611   850,698   -   850,698   - 

Subordinated debentures

  79,060   78,040   -   78,040   - 

Accrued interest payable

  8,639   8,639   -   8,639   - 
                     

December 31, 2022

                    

Financial assets:

                    

Cash and due from banks

 $268,315  $268,315  $268,315  $-  $- 

Investment securities available-for-sale

  634,884   634,884   242   627,293   7,349 

Restricted investment in bank stocks

  46,604   n/a   n/a   n/a   n/a 

Equity securities

  15,811   15,811   9,733   6,078   - 

Net loans

  8,009,176   7,723,378   -   -   7,723,378 

Derivatives - interest rate contracts

  56,797   56,797   -   56,797   - 

Accrued interest receivable

  46,062   46,062   -   4,685   41,377 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,501,614   1,501,614   1,501,614   -   - 

Interest-bearing deposits

  5,855,008   5,811,291   3,460,818   2,350,473   - 

Borrowings

  857,622   854,698   .   854,698   - 

Subordinated debentures

  153,255   153,581   -   153,581   - 

Accrued interest payable

  6,925   6,925   -   6,925   - 

 

 

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.

 

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

 

The Company’s remaining assets and liabilities, which are not considered financial instruments, have not been valued differently than has been customary with historical cost accounting. No disclosure of the relationship value of the Company’s core deposit base is required by FASB ASC 825-10.

 

Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

 

Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

 
v3.23.1
Note 7 - Comprehensive (Loss) Income
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

Note 7. Comprehensive (Loss) Income  

 

Total comprehensive (loss) income includes all changes in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s other comprehensive income is comprised of unrealized holding gains and losses on securities available-for-sale, unrealized gains (losses) on cash flow hedges, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, each net of taxes.

 

The following table represents the reclassification out of accumulated other comprehensive (loss) for the periods presented (dollars in thousands):

 

Details about Accumulated Other Comprehensive Income Components

 

Amounts Reclassified from Accumulated Other Comprehensive Income

 

Affected Line item in the Consolidated Statements of Income

  

Three Months Ended March 31,

  
  

2023

  

2022

  

Interest income (expense) on cash flow hedges

 $4,267  $(525)

Borrowings and brokered certificate of deposits expense

   (1,284)  147 

Income tax (expense) benefit

  $2,983  $(378) 
          

Amortization of pension plan net actuarial losses

 $(74) $(16)

Other components of net periodic pension expense

   23   4 

Income tax benefit

  $(51) $(12) 

Total reclassification

 $2,932  $(390) 

 

 

 

Accumulated other comprehensive loss as of March 31, 2023 and December 31, 2022 consisted of the following:

 

  

March 31, 2023

  

December 31, 2022

 
  

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 $(57,292) $(61,775)

Cash flow hedge, net of tax

  26,328   32,360 

Defined benefit pension and post-retirement plans, net of tax

  (2,898)  (2,949)

Total

 $(33,862) $(32,364)

 
v3.23.1
Note 8 - Stock-based Compensation
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 8.  Stock-based Compensation 

 

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of March 31, 2023. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of March 31, 2023 were approximately 59,209. The Company intends to issue all shares under the Plan in the form of newly issued shares.

 

Restricted stock, options and deferred stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock and deferred stock units granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient is no longer employed prior to the award's vesting. Any forfeitures would result in previously recognized expense being reversed. Restricted stock grants have the same dividend and voting rights as common stock, while options, performance units and deferred stock units do not.

 

All awards are issued at the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are recorded as incurred. Stock-based compensation expense was $1.1 million for both the three months ended March 31, 2023 and March 31, 2022.

  

 Activity under the Company’s options for the three months ended March 31, 2023 was as follows:

 

  Number of Stock Options  Weighted-Average Exercise Price  Weighted Average Remaining Contractual Term (in years)  Aggregate Intrinsic Value 

Outstanding as of December 31, 2022

  8,680  $12.95         

Granted

  -   -         

Exercised

  (6,473)  12.52         

Forfeited/cancelled/expired

  -   -         

Outstanding as of March 31, 2023

  2,207   14.24   0.41  $7,592 

Exercisable as of March 31, 2023

  2,207  $14.24   0.41  $7,592 

 

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on March 31, 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2023. This amount changes based on the fair market value of the Company’s stock.

 

 

Activity under the Company’s restricted stock for the three months ended March 31, 2023 was as follows:

 

  Nonvested Shares  Weighted Average Grant Date Fair Value 

Nonvested as of December 31, 2022

  85,931  $26.20 

Granted

  50,617   17.93 

Vested

  (24,445)  27.49 

Forfeited/cancelled/expired

  (1,415)  29.46 

Nonvested as of March 31, 2023

  110,688  $22.09 

 

As of March 31, 2023, there was approximately $1.4 million of total unrecognized compensation cost related to nonvested restricted stock granted. The cost is expected to be recognized over a weighted average period of 1.6 years.

 

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

 

  Units (expected)  Units (maximum)  Weighted Average Grant Date Fair Value 

Unearned as of December 31, 2022

  195,265      $17.98 

Awarded

  85,158       17.93 

Vested shares

  (116,192)      10.77 

Unearned as of March 31, 2023

  164,231   233,087  $23.06 

 

As of March 31, 2023, the specific number of shares related to performance units that were expected to vest was 164,231, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of March 31, 2023, the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 233,087. During the three months ended March 31, 2023, 116,192 shares vested. A total of 63,839 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the three months ended March 31, 2023 were 52,353 shares. As of March 31, 2023, compensation cost of approximately $2.4 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 2.3 years.

 

A summary of the status of unearned deferred stock units and the changes in deferred stock units during the period is presented in the table below:

 

  Units (expected)  Weighted Average Grant Date Fair Value 

Unearned as of December 31, 2022

  120,035  $23.84 

Awarded

  146,857   18.98 

Vested shares

  (70,669)  19.19 

Unearned as of March 31, 2023

  196,223  $21.88 

 

Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the three months ended March 31, 2023, 70,669 shares vested. A total of 38,601 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of deferred stock units during the three months ended March 31, 2023 were 32,068 shares. As of March 31, 2023, compensation cost of approximately $3.1 million related to non-vested deferred stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.8 years.

 
v3.23.1
Note 9 - Components of Net Periodic Pension Cost
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Retirement Benefits [Text Block]

Note 9.  Components of Net Periodic Pension Cost

 

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

 

  

Three Months Ended

 

Affected Line Item in the Consolidated

  

March 31,

 

Statements of Income

  

2023

  

2022

  
  

(dollars in thousands)

  

Service cost

 $-  $-  

Interest cost

  110   78 

Other components of net periodic pension expense

Expected return on plan assets

  (209)  (237)

Other components of net periodic pension expense

Net amortization

  74   16 

Other components of net periodic pension expense

Total periodic pension income

 $(25) $(143) 

 

Contributions

 

The Company did not contribute to the Pension Trust during the three months ended March 31, 2023. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2023. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.

 
v3.23.1
Note 10 - FHLB Borrowings
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Federal Home Loan Bank, Advances [Text Block]

Note 10. FHLB Borrowings

 

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

 

  

March 31, 2023

  

December 31, 2022

 
  

Amount

  

Rate

  

Amount

  

Rate

 
  

(dollars in thousands)

 

By remaining period to maturity:

                

Less than 1 year

 $825,000   5.08% $830,000   4.42%

1 year through less than 2 years

  -   -   -   - 

2 years through less than 3 years

  25,000   1.00   25,000   1.00 

3 years through less than 4 years

  2,050   2.23   2,050   2.23 

4 years through 5 years

  317   2.85   326   2.85 

After 5 years

  318   2.96   326   2.96 

FHLB borrowings - gross

  852,685   4.95%  857,702   4.32%

Fair value discount

  (74)      (80)    

Total FHLB borrowings

 $852,611      $857,622     

 

 

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

 

Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances bear fixed rates. The advances as of March 31, 2023 were primarily collateralized by approximately $2.1 billion of commercial mortgage loans and securities, net of required over collateralization amounts, under a blanket lien arrangement. As of March 31, 2023 the Company had remaining borrowing capacity of approximately $0.7 billion at FHLB. As of April 2023, the Company increased its collateral for advances to $2.9 billion, net of required over collateralization amounts, and increased its remaining borrowing capacity of $1.5 billion at FHLB.

 
v3.23.1
Note 11 - Subordinated Debentures
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Subordinated Borrowings Disclosure [Text Block]

Note 11. Subordinated Debentures

 

During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three-month LIBOR plus 2.85% and reprices quarterly. The rate as of March 31, 2023 was 7.65%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.

 

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of March 31, 2023 and December 31, 2022.

 

Issuance Date

 

Securities Issued

 

Liquidation Value

 

Coupon Rate

 

Maturity

 

Redeemable by Issuer Beginning

12/19/2003

 $5,000,000 

$1,000 per Capital Security

 

Floating 3-month LIBOR + 285 Basis Points

 

1/23/2034

 

1/23/2009

 

On June 10, 2020, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2020 Notes”). The 2020 Notes bear interest at 5.75% annually from, and including, the date of initial issuance to, but excluding, June 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2020. From and including June 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.

 

On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2018 Notes”). The 2018 Notes bore interest at a rate that resets quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 284 basis points (2.84%) payable quarterly in arrears. Interest on the 2018 Notes was to be paid on February 1, May 1, August 1, and November 1, of each year to but excluding the stated maturity date, unless in any case previously redeemed. The 2018 Notes were redeemed in full on February 1, 2023.

 

 

 
v3.23.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Nature of Operations [Policy Text Block]

Nature of Operations

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

 

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-four other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Principals of Consolidation

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The consolidated financial statements of the Parent Corporation are prepared on an accrual basis and include the accounts of the Parent Corporation and the Company. All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements.
Segment Reporting, Policy [Policy Text Block]

Segments

 

FASB ASC 28, “Segment Reporting,” requires companies to report certain information about operating segments. The Company is managed as one segment: a community bank. All decisions including but not limited to loan growth, deposit funding, interest rate risk, credit risk and pricing are determined after assessing the effect on the totality of the organization. For example, loan growth is dependent on the ability of the organization to fund this growth through deposits or other borrowings. As a result, the Company is managed as one operating segment.
Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.
Risks and Uncertainties [Policy Text Block]

Risks and Uncertainties

 

The United States economy is currently experiencing a level of price inflation not experienced since the late 1970’s and early 1980’s. It is therefore difficult to predict the response of consumers and businesses to this level of inflation, and its impact on the economy. In addition, in order to attempt to control and reduce the level of inflation, the Federal Reserve has embarked on a series of interest rate increases along with quantitative tightening to further constrict economic conditions. It is unclear whether the Federal Reserve’s efforts will be successful, and what impact they may have on the United States’ economy. It is possible that the combined effects of inflation and increases in market interest rates could cause the economy of the United States to enter a recession, which could negatively affect the businesses of our borrowers and their ability to repay their loans or need credit, which could negatively affect our results of operations.  
New Accounting Pronouncements, Policy [Policy Text Block]

Note 1b. Authoritative Accounting Guidance

 

Adoption of New Accounting Standards in 2023

 

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2022-02 on January 1, 2023 and it did not have a material effect on the Company’s consolidated financial statements.

 

Newly Issued, But Not Yet Effective Accounting Standards

 

In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.  ASU 2022-03 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements.
v3.23.1
Note 2 - Earnings Per Common Share (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Three Months Ended

 
  

March 31,

 

(dollars in thousands, except for per share data)

 

2023

  

2022

 

Net income available to common stockholders

 $23,420  $29,872 

Earnings allocated to participating securities

  (44)  (80)

Income attributable to common stock

 $23,376  $29,792 
         

Weighted average common shares outstanding, including participating securities

  39,178   39,560 

Weighted average participating securities

  (74)  (107)

Weighted average common shares outstanding

  39,104   39,453 

Incremental shares from assumed conversions of options, performance units and restricted shares

  197   274 

Weighted average common and equivalent shares outstanding

  39,301   39,727 
         

Earnings per common share:

        

Basic

 $0.60  $0.76 

Diluted

  0.59   0.75 
v3.23.1
Note 3 - Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Debt Securities, Available-for-Sale [Table Text Block]
                  

Allowance

 
                  

for

 
      

Gross

  

Gross

      

Investment

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

  

Credit

 
  

Cost

  

Gains

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

March 31, 2023

                    

Investment securities available-for-sale:

                    

Federal agency obligations

 $53,301  $1  $(9,787) $43,515  $- 

Residential mortgage pass-through securities

  469,925   322   (50,580)  419,667   - 

Commercial mortgage pass-through securities

  25,424   -   (3,464)  21,960   - 

Obligations of U.S. states and political subdivisions

  155,101   255   (17,060)  138,296   - 

Corporate bonds and notes

  4,000   -   (23)  3,977   - 

Asset-backed securities

  1,505   -   (51)  1,454   - 

Other securities

  132   -   -   132   - 

Total securities available-for-sale

 $709,388  $578  $(80,965) $629,001  $- 
                     

December 31, 2022

                    

Investment securities available-for-sale:

                    

Federal agency obligations

 $54,889  $-  $(10,439) $44,450  $- 

Residential mortgage pass-through securities

  475,263   178   (57,863)  417,578   - 

Commercial mortgage pass-through securities

  25,485   -   (4,381)  21,104   - 

Obligations of U.S. states and political subdivisions

  157,247   111   (14,462)  142,896   - 

Corporate bonds and notes

  7,000   -   (26)  6,974   - 

Asset-backed securities

  1,673   -   (33)  1,640   - 

Other securities

  242   -   -   242   - 

Total securities available-for-sale

 $721,799  $289  $(87,204) $634,884  $- 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

March 31, 2023

 
  

Amortized

  

Fair

 
  

Cost

  

Value

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

        

Due in one year or less

 $2,453  $2,453 

Due after one year through five years

  4,079   4,057 

Due after five years through ten years

  2,626   2,620 

Due after ten years

  204,749   178,112 

Residential mortgage pass-through securities

  469,925   419,667 

Commercial mortgage pass-through securities

  25,424   21,960 

Other securities

  132   132 

Total securities available-for-sale

 $709,388  $629,001 
Schedule of Unrealized Loss on Investments [Table Text Block]
  

March 31, 2023

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligations

 $43,301  $(9,787) $2,798  $(209) $40,503  $(9,578)

Residential mortgage pass-through securities

  404,073   (50,580)  153,706   (4,627)  250,367   (45,953)

Commercial mortgage pass-through securities

  21,960   (3,464)  6,540   (460)  15,420   (3,004)

Obligations of U.S. states and political subdivisions

  118,428   (17,060)  26,397   (1,194)  92,031   (15,866)

Corporate bonds and notes

  1,977   (23)  1,977   (23)  -   - 

Asset-backed securities

  1,454   (51)  390   (21)  1,064   (30)

Total temporarily impaired securities

 $591,193  $(80,965) $191,808  $(6,534) $399,385  $(74,431)
  

December 31, 2022

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligations

 $44,451  $(10,439) $20,517  $(1,831) $23,934  $(8,608)

Residential mortgage pass-through securities

  403,039   (57,863)  218,918   (13,869)  184,121   (43,994)

Commercial mortgage pass-through securities

  21,105   (4,381)  14,523   (2,304)  6,582   (2,077)

Obligations of U.S. states and political subdivisions

  133,265   (14,462)  47,446   (3,404)  85,819   (11,058)

Corporate bonds and notes

  4,973   (26)  4,973   (26)  -   - 

Asset-backed securities

  1,640   (33)  1,048   (16)  592   (17)

Total temporarily impaired securities

 $608,473  $(87,204) $307,425  $(21,450) $301,048  $(65,754)
v3.23.1
Note 4 - Derivatives (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
  

Three Months Ended March 31, 2023

 
  

Amount of gain (loss) recognized in OCI (Effective Portion)

  

Amount of (gain) loss reclassified from OCI to interest expense

  

Amount of gain recognized in other Noninterest income (Ineffective Portion)

 
  

(dollars in thousands)

 

Interest rate contracts

 $(4,361) $(4,267) $- 
             
  

Three Months Ended March 31, 2022

 
  

Amount of gain (loss) recognized in OCI (Effective Portion)

  

Amount of (gain) loss reclassified from OCI to interest expense

  

Amount of gain recognized in other Noninterest income (Ineffective Portion)

 
  

(dollars in thousands)

 

Interest rate contracts

 $19,000  $525  $- 
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
  

March 31, 2023

  

December 31, 2022

 
  

Notional Amount

  

Fair Value

  

Notional Amount

  

Fair Value

 
      

(dollars in thousands)

     

Interest rate contracts

 $950,000  $47,620  $950,000  $56,797 
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
  March 31, 2023  December 31, 2022 
  

(dollars in thousands)

 

Commercial

 $1,414,226  $1,472,734 

Commercial real estate

  5,835,880   5,795,228 

Commercial construction

  630,469   574,139 

Residential real estate

  259,166   264,748 

Consumer

  1,435   2,312 

Gross loans

  8,141,176   8,109,161 

Net deferred loan fees

  (9,057)  (9,472)

Total loans receivable

 $8,132,119  $8,099,689 
Schedule of Loans Held-for-sale [Table Text Block]
  March 31, 2023  December 31, 2022 
  

(dollars in thousands)

 

Commercial real estate

 $11,197  $13,473 

Residential real estate

  -   299 

Total carrying amount

 $11,197  $13,772 
Financing Receivable, Nonaccrual [Table Text Block]
  

March 31, 2023

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $18,766  $555  $19,321 

Commercial real estate

  3,348   22,138   25,486 

Residential real estate

  815   2,045   2,860 

Total

 $22,929  $24,738  $47,667 
  

December 31, 2022

 
  Nonaccrual loans with ACL  Nonaccrual loans without ACL  Total nonaccrual loans 
  

(dollars in thousands)

 

Commercial

 $23,512  $1,745  $25,257 

Commercial real estate

  10,220   6,597   16,817 

Residential real estate

  604   1,776   2,380 

Total

 $34,336  $10,118  $44,454 
Financing Receivable Origination And Risk Designation [Table Text Block]
  

Term loans amortized cost basis by origination year

       
  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Revolving Loans

  

Total Gross Loans

 

Commercial

                                

Pass

 $88,764  $287,784  $275,151  $44,118  $18,468  $135,355  $525,263  $1,374,903 

Special mention

  -   -   -   -   578   8,468   3,312   12,358 

Substandard

  -   802   140   12   1,748   21,867   2,396   26,965 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $88,764  $288,586  $275,291  $44,130  $20,794  $165,690  $530,971  $1,414,226 
                                 

Commercial Real Estate

                                

Pass

 $58,920  $1,586,883  $1,593,747  $374,873  $364,428  $1,335,482  $434,426  $5,748,759 

Special mention

  -   -   -   -   -   37,007   -   37,007 

Substandard

  -   -   1,919   -   5,013   26,265   16,917   50,114 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $58,920  $1,586,883  $1,595,666  $374,873  $369,441  $1,398,754  $451,343  $5,835,880 
                                 

Commercial Construction

                                

Pass

 $-  $4,263  $7,340  $6,721  $-  $-  $603,779  $622,103 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,366   8,366 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $-  $4,263  $7,340  $6,721  $-  $-  $612,145  $630,469 
                                 

Residential

                                

Pass

 $2,768  $44,461  $25,141  $24,036  $21,394  $96,458  $37,979  $252,237 

Special mention

  -   -   -   -   -   662   3,407   4,069 

Substandard

  -   -   -   -   -   2,635   225   2,860 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $2,768  $44,461  $25,141  $24,036  $21,394  $99,755  $41,611  $259,166 
                                 

Consumer

                                

Pass

 $1,182  $157  $-  $7  $-  $1  $88  $1,435 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $1,182  $157  $-  $7  $-  $1  $88  $1,435 
                                 

Total

                                

Pass

 $151,634  $1,923,548  $1,901,379  $449,755  $404,290  $1,567,296  $1,601,535  $7,999,437 

Special mention

  -   -   -   -   578   46,137   6,719   53,434 

Substandard

  -   802   2,059   12   6,761   50,767   27,904   88,305 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $151,634  $1,924,350  $1,903,438  $449,767  $411,629  $1,664,200  $1,636,158  $8,141,176 
  

Term loans amortized cost basis by origination year

       
  

2022

  

2021

  

2020

  

2019

  2018  

Prior

  

Revolving Loans

  

Total Gross Loans

 

Commercial

                                

Pass

 $301,636  $305,721  $47,952  $28,177  $52,950  $127,739  $550,483  $1,414,658 

Special mention

  -   -   -   583   26   8,551   3,292   12,452 

Substandard

  7,615   146   15   1,769   11,214   22,596   2,269   45,624 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $309,251  $305,867  $47,967  $30,529  $64,190  $158,886  $556,044  $1,472,734 
                                 

Commercial Real Estate

                                

Pass

 $1,571,751  $1,608,023  $382,987  $358,578  $375,886  $987,982  $401,365  $5,686,572 

Special mention

  3,040   -   -   -   -   37,774   8,839   49,653 

Substandard

  -   1,929   -   6,526   19,138   23,287   8,123   59,003 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,574,791  $1,609,952  $382,987  $365,104  $395,024  $1,049,043  $418,327  $5,795,228 
                                 

Commercial Construction

                                

Pass

 $8,615  $7,605  $6,720  $508  $-  $-  $542,460  $565,908 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,231   8,231 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,615  $7,605  $6,720  $508  $-  $-  $550,691  $574,139 
                                 

Residential Real Estate

                                

Pass

 $45,926  $25,318  $24,409  $21,557  $20,284  $78,314  $41,468  $257,276 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   3,379   4,093   7,472 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $45,926  $25,318  $24,409  $21,557  $20,284  $81,693  $45,561  $264,748 
                                 

Consumer

                                

Pass

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 
                                 

Total

                                

Pass

 $1,930,147  $1,946,667  $462,077  $408,820  $449,120  $1,194,037  $1,535,858  $7,926,726 

Special mention

  3,040   -   -   583   26   46,325   12,131   62,105 

Substandard

  7,615   2,075   15   8,295   30,352   49,262   22,716   120,330 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $1,940,802  $1,948,742  $462,092  $417,698  $479,498  $1,289,624  $1,570,705  $8,109,161 
Financing Receivable, Collateral Dependent [Table Text Block]
  

March 31, 2023

 
  Real Estate  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $4,950  $16,650  $21,600 

Commercial real estate

  49,529   -   49,529 

Commercial construction

  8,366   -   8,366 

Residential real estate

  6,114   -   6,114 

Total

 $68,959  $16,650  $85,609 
  

December 31, 2022

 
  Real Estate  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $5,352  $22,517  $27,869 

Commercial real estate

  52,477   -   52,477 

Commercial construction

  8,232   -   8,232 

Residential real estate

  5,864   -   5,864 

Total

 $71,925  $22,517  $94,442 
Financing Receivable, Past Due [Table Text Block]
  

March 31, 2023

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 
  

(dollars in thousands)

 

Commercial

 $1,929  $-  $-  $19,321  $21,250  $1,392,976  $1,414,226 

Commercial real estate

  5,740   810   -   25,486   32,036   5,803,844   5,835,880 

Commercial construction

  4,707   -   -   -   4,707   625,762   630,469 

Residential real estate

  703   -   -   2,860   3,563   255,603   259,166 

Consumer

  -   -   -   -   -   1,435   1,435 

Total

 $13,079  $810  $-  $47,667  $61,556  $8,079,620  $8,141,176 
  

December 31, 2022

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 
  

(dollars in thousands)

 

Commercial

 $306  $-  $-  $25,257  $25,563  $1,447,171  $1,472,734 

Commercial real estate

  90   -   5,591   16,817   22,498   5,772,730   5,795,228 

Commercial construction

  -   -   -   -   -   574,139   574,139 

Residential real estate

  1,569   -   -   2,380   3,949   260,799   264,748 

Consumer

  -   -   -   -   -   2,312   2,312 

Total

 $1,965  $-  $5,591  $44,454  $52,010  $8,057,151  $8,109,161 
Schedule of Evaluation of Impairment on Financing Receivables [Table Text Block]
  

March 31, 2023

 
  

Commercial

  Commercial real estate  

Commercial construction

  Residential real estate  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated impairment

 $5,861  $924  $-  $72  $-  $6,857 

Collectively evaluated impairment

  19,568   52,076   3,966   3,796   6   79,412 

Acquired with deteriorated credit quality individually analyzed

  733   -   -   -   -   733 

Total

 $26,162  $53,000  $3,966  $3,868  $6  $87,002 
                         

Gross loans

                        

Individually evaluated impairment

 $24,204  $49,529  $8,366  $6,115  $-  $88,214 

Collectively evaluated impairment

  1,387,738   5,786,351   622,103   253,051   1,435   8,050,678 

Acquired with deteriorated credit quality individually analyzed

  2,284   -   -   -   -   2,284 

Total

 $1,414,226  $5,835,880  $630,469  $259,166  $1,435  $8,141,176 
  

December 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated impairment

 $7,426  $1,003  $-  $50  $-  $8,479 

Collectively evaluated impairment

  19,319   50,818   3,718   4,093   7   77,955 

Acquired with deteriorated credit quality individually analyzed

  2,158   1,921   -   -   -   4,079 

Total

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 
                         

Gross loans

                        

Individually evaluated impairment

 $30,994  $46,886  $8,232  $5,864  $-  $91,976 

Collectively evaluated impairment

  1,436,866   5,742,751   565,907   258,884   2,312   8,006,720 

Acquired with deteriorated credit quality individually analyzed

  4,874   5,591   -   -   -   10,465 

Total

 $1,472,734  $5,795,228  $574,139  $264,748  $2,312  $8,109,161 
Financing Receivable, Allowance for Credit Loss [Table Text Block]
  

Three Months Ended March 31, 2023

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Balance as of December 31, 2022

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 

Charge-offs

  (2,767)  (1,717)  -   -   -   (4,484)

Recoveries

  -   -   -   1   -   1 

Provision for (reversal of) credit losses - loans

  26   975   248   (276)  (1)  972 
                         

Balance as of March 31, 2023

 $26,162  $53,000  $3,966  $3,868  $6  $87,002 
  

Three Months Ended March 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Balance as of December 31, 2021

 $25,969  $45,589  $3,580  $3,628  $7  $78,773 

Charge-offs

  (49)  (225)  -   -   -   (274)

Recoveries

  1   -   -   31   -   32 

(Reversal of) provision for credit losses - loans

  (462)  2,504   (299)  (204)  -   1,539 
                         

Balance as of March 31, 2022

 $25,459  $47,868  $3,281  $3,455  $7  $80,070 
Financing Receivable, Modified [Table Text Block]
  

Three Months Ended

 
  

March 31, 2023

 
  

Term Extension

  

% of Portfolio

 
  

(dollars in thousands)

 

Commercial

 $63   0.01%
Financing Receivable, Modified, Past Due [Table Text Block]
             
             
  

March 31, 2023

 
  

Current

  

Past Due 30-89 Days

  

Past Due 90 Days or More

 
  

(dollars in thousands)

 

Commercial

 $63  $-  $- 
Schedule of Allowance for Credit Losses on Unfunded Commitments [Table Text Block]
  

Three Months Ended

  

Three Months Ended

 
  

March 31,

  

March 31,

 
  

2023

  

2022

 
  

(dollars in thousands)

 

Balance at beginning of period

 $3,036  $2,351 

Provision for (reversal of) credit losses - unfunded commitments

  28   (89)

Balance at end of period

 $3,064  $2,262 
Schedule of Provision for (Reversal of) Credit Losses [Table Text Block]
  

Three Months Ended

  

Three Months Ended

 
  

March 31,

  

March 31,

 
  

2023

  

2022

 
  

(dollars in thousands)

 

Provision for credit losses - loans

 $972  $1,539 

Provision for (reversal of) credit losses - unfunded commitments

  28   (89)

Provision for credit losses

 $1,000  $1,450 
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
      

March 31, 2023

 
      

Fair Value Measurements at Reporting Date Using

 
  

Total Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements: Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $43,515  $-  $43,515  $- 

Residential mortgage pass-through securities

  419,667   -   419,667   - 

Commercial mortgage pass-through securities

  21,960   -   21,960   - 

Obligations of U.S. states and political subdivision

  138,296   -   130,808   7,488 

Corporate bonds and notes

  3,977   -   3,977   - 

Asset-backed securities

  1,454   -   1,454   - 

Other securities

  132   132   -   - 

Total available-for-sale

  629,001   132   621,381   7,488 
                 

Equity securities

  18,025   9,892   8,133   - 

Derivatives

  47,620   -   47,620   - 

Total assets

 $694,646  $10,024  $677,134  $7,488 
      

December 31, 2022

 
      

Fair Value Measurements at Reporting Date Using

 
  

Total Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements: Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $44,450  $-  $44,450  $- 

Residential mortgage pass- through securities

  417,578   -   417,578   - 

Commercial mortgage pass-through securities

  21,104   -   21,104   - 

Obligations of U.S. states and political subdivision

  142,896   -   135,547   7,349 

Corporate bonds and notes

  6,974   -   6,974   - 

Asset-backed securities

  1,640   -   1,640   - 

Other securities

  242   242   -   - 

Total available-for-sale

 $634,884  $242  $627,293  $7,349 
                 

Equity securities

  15,811   9,733   6,078   - 

Derivatives

  56,797   -   56,797   - 

Total assets

 $707,492  $9,975  $690,168  $7,349 
Fair Value Measurements, Nonrecurring [Table Text Block]
      

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 March 31, 2023  Quoted Prices in Active Markets for Identical Assets (Level 1)  Significant Other Observable Inputs (Level 2)  Significant Unobservable Inputs (Level 3) 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

 $11,635  $-  $-  $11,635 

Commercial real estate

  10,428   -   -   10,428 

Residential real estate

  1,363   -   -   1,363 
      

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 December 31, 2022  Quoted Prices in Active Markets for Identical Assets (Level 1)  Significant Other Observable Inputs (Level 2)  Significant Unobservable Inputs (Level 3) 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

 $14,550  $-  $-  $14,550 

Commercial real estate

  17,264   -   -   17,264 

Residential real estate

  1,392   -   -   1,392 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
  Municipal Securities 
  

(dollars in thousands)

 

Beginning balance, December 31, 2022

 $7,349 

Principal paydowns

  (74)

Change in unrealized gain (loss)

  213 

Ending balance, March 31, 2023

 $7,488 
  Municipal Securities 
  

(dollars in thousands)

 

Beginning balance, December 31, 2021

 $8,565 

Principal paydowns

  (287)

Changes in unrealized gain (loss)

  (929)

Ending balance, December 31, 2022

 $7,349 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

March 31, 2023

           
  

Fair Value

 

Valuation Techniques

 

Unobservable Input

 

Rate

 

Securities available-for-sale:

    

(dollars in thousands)

      

Municipal securities

 $7,488 

Discounted cash flows

 

Discount rate

  4.0%

December 31, 2022

           
  

Fair Value

 

Valuation Techniques

 

Unobservable Input

 

Rate

 

Securities available-for-sale:

    

(dollars in thousands)

      

Municipal securities

 $7,349 

Discounted cash flows

 

Discount rate

  4.3%
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

March 31, 2023

           

(dollars in thousands)

 

Fair Value

  

Valuation Techniques

Unobservable Input

 

Range (weighted average)

 

Commercial

 $11,150  

Market approach (100%)

Average transfer price as a price to unpaid principal balance

  65% –96% (67%) 

Commercial

  485  

Appraisals of collateral value

Comparable sales

 -10% to +13% (+3%) 

Commercial real estate

  10,428  

Appraisals of collateral value

Comparable sales

  -15% to +5% (6%) 

Residential real estate

  1,363  

Appraisals of collateral value

Comparable sales

 +21% to +39% (+27%) 

December 31, 2022

           

(dollars in thousands)

 

Fair Value

  

Valuation Techniques

Unobservable Input

 

Range (weighted average)

 

Commercial loans

 $14,028  

Market approach (100%)

Average transfer price as a price to unpaid principal balance

  65% to 96% (67%) 

Commercial loans

  522  

Appraisals of collateral value

Adjustment for comparable sales

 

-10% to +13% (+3%)

 

Commercial real estate loans

  17,264  

Appraisals of collateral value

Adjustment for comparable sales

 

-20% to +0% (-15%)

 

Residential real estate loans

  1,392  

Appraisals of collateral value

Adjustment for comparable sales

 

+21% to +39% (22%)

 
Fair Value, by Balance Sheet Grouping [Table Text Block]
          

Fair Value Measurements

 
  

Carrying Amount

  

Fair Value

  

Quoted Prices in Active Markets for Identical Assets (Level 1)

  

Significant Other Observable Inputs (Level 2)

  

Significant Unobservable Inputs (Level 3)

 
  

(dollars in thousands)

 
                     

March 31, 2023

                    

Financial assets:

                    

Cash and due from banks

 $562,416  $562,416  $562,416  $-  $- 

Securities available-for-sale

  629,001   629,001   132   621,381   7,488 

Restricted investments in bank stocks

  46,379   n/a   n/a   n/a   n/a 

Equity securities

  18,025   18,025   9,892   8,133   - 

Net loans

  8,045,117   7,749,886   -   -   7,749,886 

Derivatives - interest rate contracts

  47,620   47,620   -   47,620   - 

Accrued interest receivable

  46,301   46,301   -   4,829   41,472 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,345,265   1,345,265   1,345,265   -   - 

Interest-bearing deposits

  6,407,911   6,378,261   3,701,249   2,677,012   - 

Borrowings

  852,611   850,698   -   850,698   - 

Subordinated debentures

  79,060   78,040   -   78,040   - 

Accrued interest payable

  8,639   8,639   -   8,639   - 
                     

December 31, 2022

                    

Financial assets:

                    

Cash and due from banks

 $268,315  $268,315  $268,315  $-  $- 

Investment securities available-for-sale

  634,884   634,884   242   627,293   7,349 

Restricted investment in bank stocks

  46,604   n/a   n/a   n/a   n/a 

Equity securities

  15,811   15,811   9,733   6,078   - 

Net loans

  8,009,176   7,723,378   -   -   7,723,378 

Derivatives - interest rate contracts

  56,797   56,797   -   56,797   - 

Accrued interest receivable

  46,062   46,062   -   4,685   41,377 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,501,614   1,501,614   1,501,614   -   - 

Interest-bearing deposits

  5,855,008   5,811,291   3,460,818   2,350,473   - 

Borrowings

  857,622   854,698   .   854,698   - 

Subordinated debentures

  153,255   153,581   -   153,581   - 

Accrued interest payable

  6,925   6,925   -   6,925   - 
v3.23.1
Note 7 - Comprehensive (Loss) Income (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details about Accumulated Other Comprehensive Income Components

 

Amounts Reclassified from Accumulated Other Comprehensive Income

 

Affected Line item in the Consolidated Statements of Income

  

Three Months Ended March 31,

  
  

2023

  

2022

  

Interest income (expense) on cash flow hedges

 $4,267  $(525)

Borrowings and brokered certificate of deposits expense

   (1,284)  147 

Income tax (expense) benefit

  $2,983  $(378) 
          

Amortization of pension plan net actuarial losses

 $(74) $(16)

Other components of net periodic pension expense

   23   4 

Income tax benefit

  $(51) $(12) 

Total reclassification

 $2,932  $(390) 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
  

March 31, 2023

  

December 31, 2022

 
  

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 $(57,292) $(61,775)

Cash flow hedge, net of tax

  26,328   32,360 

Defined benefit pension and post-retirement plans, net of tax

  (2,898)  (2,949)

Total

 $(33,862) $(32,364)
v3.23.1
Note 8 - Stock-based Compensation (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
  Number of Stock Options  Weighted-Average Exercise Price  Weighted Average Remaining Contractual Term (in years)  Aggregate Intrinsic Value 

Outstanding as of December 31, 2022

  8,680  $12.95         

Granted

  -   -         

Exercised

  (6,473)  12.52         

Forfeited/cancelled/expired

  -   -         

Outstanding as of March 31, 2023

  2,207   14.24   0.41  $7,592 

Exercisable as of March 31, 2023

  2,207  $14.24   0.41  $7,592 
Nonvested Restricted Stock Shares Activity [Table Text Block]
  Nonvested Shares  Weighted Average Grant Date Fair Value 

Nonvested as of December 31, 2022

  85,931  $26.20 

Granted

  50,617   17.93 

Vested

  (24,445)  27.49 

Forfeited/cancelled/expired

  (1,415)  29.46 

Nonvested as of March 31, 2023

  110,688  $22.09 
Schedule of Nonvested Performance-Based Units Activity [Table Text Block]
  Units (expected)  Units (maximum)  Weighted Average Grant Date Fair Value 

Unearned as of December 31, 2022

  195,265      $17.98 

Awarded

  85,158       17.93 

Vested shares

  (116,192)      10.77 

Unearned as of March 31, 2023

  164,231   233,087  $23.06 
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
  Units (expected)  Weighted Average Grant Date Fair Value 

Unearned as of December 31, 2022

  120,035  $23.84 

Awarded

  146,857   18.98 

Vested shares

  (70,669)  19.19 

Unearned as of March 31, 2023

  196,223  $21.88 
v3.23.1
Note 9 - Components of Net Periodic Pension Cost (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Net Benefit Costs [Table Text Block]
  

Three Months Ended

 

Affected Line Item in the Consolidated

  

March 31,

 

Statements of Income

  

2023

  

2022

  
  

(dollars in thousands)

  

Service cost

 $-  $-  

Interest cost

  110   78 

Other components of net periodic pension expense

Expected return on plan assets

  (209)  (237)

Other components of net periodic pension expense

Net amortization

  74   16 

Other components of net periodic pension expense

Total periodic pension income

 $(25) $(143) 
v3.23.1
Note 10 - FHLB Borrowings (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]
  

March 31, 2023

  

December 31, 2022

 
  

Amount

  

Rate

  

Amount

  

Rate

 
  

(dollars in thousands)

 

By remaining period to maturity:

                

Less than 1 year

 $825,000   5.08% $830,000   4.42%

1 year through less than 2 years

  -   -   -   - 

2 years through less than 3 years

  25,000   1.00   25,000   1.00 

3 years through less than 4 years

  2,050   2.23   2,050   2.23 

4 years through 5 years

  317   2.85   326   2.85 

After 5 years

  318   2.96   326   2.96 

FHLB borrowings - gross

  852,685   4.95%  857,702   4.32%

Fair value discount

  (74)      (80)    

Total FHLB borrowings

 $852,611      $857,622     
v3.23.1
Note 11 - Subordinated Debentures (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Schedule of Long-Term Debt Instruments [Table Text Block]

Issuance Date

 

Securities Issued

 

Liquidation Value

 

Coupon Rate

 

Maturity

 

Redeemable by Issuer Beginning

12/19/2003

 $5,000,000 

$1,000 per Capital Security

 

Floating 3-month LIBOR + 285 Basis Points

 

1/23/2034

 

1/23/2009
v3.23.1
Note 1a - Nature of Operations, Principles of Consolidation and Risk and Uncertainties (Details Textual)
 3 Months Ended
Mar. 31, 2023
Number of Operating Segments 1
v3.23.1
Note 2 - Earnings Per Common Share (Details Textual) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 0 0
v3.23.1
Note 2 - Earnings Per Common Share - Computation of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Net income available to common stockholders $ 23,420 $ 29,872
Earnings allocated to participating securities (44) (80)
Income attributable to common stock $ 23,376 $ 29,792
Weighted average common shares outstanding, including participating securities (in shares) 39,178 39,560
Weighted average participating securities (in shares) (74) (107)
Weighted average common shares outstanding (in shares) 39,104 39,453
Incremental shares from assumed conversions of options, performance units and restricted shares (in shares) 197 274
Weighted average common and equivalent shares outstanding (in shares) 39,301 39,727
Basic (in dollars per share) $ 0.60 $ 0.76
Diluted (in dollars per share) $ 0.59 $ 0.75
v3.23.1
Note 3 - Investment Securities (Details Textual)
Pure in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Debt Securities, Available-for-sale, Holding Greater than 10 Percent of Equity 0 0
Debt Securities, Available-for-Sale, Realized Gain (Loss) $ 0 $ 0
Accrued Investment Income Receivable 2,200 2,400
Debt Securities, Available-for-Sale, Allowance for Credit Loss 0 0
Asset Pledged as Collateral [Member]    
Debt Securities, Available-for-Sale, Restricted $ 377,500 $ 157,000
v3.23.1
Note 3 - Investment Securities - Portfolio of Securities Available-for-sale (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Amortized cost $ 709,388 $ 721,799
Gross unrealized gains 578 289
Gross unrealized losses (80,965) (87,204)
Securities available-for-sale 629,001 634,884
Allowance for investment credit losses 0 0
US Government Agencies Debt Securities [Member]    
Amortized cost 53,301 54,889
Gross unrealized gains 1 0
Gross unrealized losses (9,787) (10,439)
Securities available-for-sale 43,515 44,450
Allowance for investment credit losses 0 0
Residential Mortgage-Backed Securities [Member]    
Amortized cost 469,925 475,263
Gross unrealized gains 322 178
Gross unrealized losses (50,580) (57,863)
Securities available-for-sale 419,667 417,578
Allowance for investment credit losses 0 0
Commercial Mortgage-Backed Securities [Member]    
Amortized cost 25,424 25,485
Gross unrealized gains 0 0
Gross unrealized losses (3,464) (4,381)
Securities available-for-sale 21,960 21,104
Allowance for investment credit losses 0 0
US States and Political Subdivisions Debt Securities [Member]    
Amortized cost 155,101 157,247
Gross unrealized gains 255 111
Gross unrealized losses (17,060) (14,462)
Securities available-for-sale 138,296 142,896
Allowance for investment credit losses 0 0
Corporate Debt Securities [Member]    
Amortized cost 4,000 7,000
Gross unrealized gains 0 0
Gross unrealized losses (23) (26)
Securities available-for-sale 3,977 6,974
Allowance for investment credit losses 0 0
Asset-Backed Securities [Member]    
Amortized cost 1,505 1,673
Gross unrealized gains 0 0
Gross unrealized losses (51) (33)
Securities available-for-sale 1,454 1,640
Allowance for investment credit losses 0 0
Other Debt Obligations [Member]    
Amortized cost 132 242
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Securities available-for-sale 132 242
Allowance for investment credit losses $ 0 $ 0
v3.23.1
Note 3 - Investment Securities - Scheduled Maturities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Due in one year or less, amortized cost $ 2,453  
Due in one year or less, fair value 2,453  
Due after one year through five years, amortized cost 4,079  
Due after one year through five years, fair value 4,057  
Due after five years through ten years, amortized cost 2,626  
Due after five years through ten years, fair value 2,620  
Due after ten years, amortized cost 204,749  
Due after ten years, fair value 178,112  
Total securities available-for-sale, amortized cost 709,388 $ 721,799
Total securities available-for-sale, fair value 629,001 634,884
Residential Mortgage-Backed Securities [Member]    
Securities available-for-sale, without single maturity date, amortized cost 469,925  
Securities available-for-sale, without single maturity date, fair value 419,667  
Total securities available-for-sale, amortized cost 469,925 475,263
Total securities available-for-sale, fair value 419,667 417,578
Commercial Mortgage-Backed Securities [Member]    
Securities available-for-sale, without single maturity date, amortized cost 25,424  
Securities available-for-sale, without single maturity date, fair value 21,960  
Total securities available-for-sale, amortized cost 25,424 25,485
Total securities available-for-sale, fair value 21,960 21,104
Other Debt Obligations [Member]    
Securities available-for-sale, without single maturity date, amortized cost 132  
Securities available-for-sale, without single maturity date, fair value 132  
Total securities available-for-sale, amortized cost 132 242
Total securities available-for-sale, fair value $ 132 $ 242
v3.23.1
Note 3 - Investment Securities - Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Temporarily impaired securities, fair value $ 591,193 $ 608,473
Temporarily impaired securities, unrealized losses (80,965) (87,204)
Temporarily impaired securities, fair value, less than 12 months 191,808 307,425
Temporarily impaired securities, unrealized losses, less than 12 months (6,534) (21,450)
Temporarily impaired securities, fair value, 12 months or longer 399,385 301,048
Temporarily impaired securities, unrealized losses, 12 months or longer (74,431) (65,754)
US Government Agencies Debt Securities [Member]    
Temporarily impaired securities, fair value 43,301 44,451
Temporarily impaired securities, unrealized losses (9,787) (10,439)
Temporarily impaired securities, fair value, less than 12 months 2,798 20,517
Temporarily impaired securities, unrealized losses, less than 12 months (209) (1,831)
Temporarily impaired securities, fair value, 12 months or longer 40,503 23,934
Temporarily impaired securities, unrealized losses, 12 months or longer (9,578) (8,608)
Residential Mortgage-Backed Securities [Member]    
Temporarily impaired securities, fair value 404,073 403,039
Temporarily impaired securities, unrealized losses (50,580) (57,863)
Temporarily impaired securities, fair value, less than 12 months 153,706 218,918
Temporarily impaired securities, unrealized losses, less than 12 months (4,627) (13,869)
Temporarily impaired securities, fair value, 12 months or longer 250,367 184,121
Temporarily impaired securities, unrealized losses, 12 months or longer (45,953) (43,994)
Commercial Mortgage-Backed Securities [Member]    
Temporarily impaired securities, fair value 21,960 21,105
Temporarily impaired securities, unrealized losses (3,464) (4,381)
Temporarily impaired securities, fair value, less than 12 months 6,540 14,523
Temporarily impaired securities, unrealized losses, less than 12 months (460) (2,304)
Temporarily impaired securities, fair value, 12 months or longer 15,420 6,582
Temporarily impaired securities, unrealized losses, 12 months or longer (3,004) (2,077)
US States and Political Subdivisions Debt Securities [Member]    
Temporarily impaired securities, fair value 118,428 133,265
Temporarily impaired securities, unrealized losses (17,060) (14,462)
Temporarily impaired securities, fair value, less than 12 months 26,397 47,446
Temporarily impaired securities, unrealized losses, less than 12 months (1,194) (3,404)
Temporarily impaired securities, fair value, 12 months or longer 92,031 85,819
Temporarily impaired securities, unrealized losses, 12 months or longer (15,866) (11,058)
Corporate Debt Securities [Member]    
Temporarily impaired securities, fair value 1,977 4,973
Temporarily impaired securities, unrealized losses (23) (26)
Temporarily impaired securities, fair value, less than 12 months 1,977 4,973
Temporarily impaired securities, unrealized losses, less than 12 months (23) (26)
Temporarily impaired securities, fair value, 12 months or longer 0 0
Temporarily impaired securities, unrealized losses, 12 months or longer 0 0
Asset-Backed Securities [Member]    
Temporarily impaired securities, fair value 1,454 1,640
Temporarily impaired securities, unrealized losses (51) (33)
Temporarily impaired securities, fair value, less than 12 months 390 1,048
Temporarily impaired securities, unrealized losses, less than 12 months (21) (16)
Temporarily impaired securities, fair value, 12 months or longer 1,064 592
Temporarily impaired securities, unrealized losses, 12 months or longer $ (30) $ (17)
v3.23.1
Note 4 - Derivatives (Details Textual)
 3 Months Ended 12 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Nov. 30, 2022
USD ($)
Oct. 01, 2022
USD ($)
Dec. 31, 2021
USD ($)
Interest Income (Expense), Net $ 67,084,000 $ 70,358,000        
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]            
Derivative, Number of Instruments Held     11   1,000,000 11
Derivative Liability, Notional Amount     $ 500,000,000     $ 500
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]            
Derivative, Maturity Date     Dec. 31, 2025      
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]            
Derivative, Maturity Date     Mar. 31, 2028      
Commenced Fixed Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]            
Derivative, Fixed Interest Rate     0.63%      
Commenced Fixed Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]            
Derivative, Fixed Interest Rate     3.41%      
Interest Rate Cap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]            
Derivative Liability, Notional Amount       $ 75,000,000 $ 150,000,000  
Interest Income (Expense), Net $ 4,300,000 $ (500,000)        
Interest Rate Cap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Long [Member]            
Derivative Liability, Notional Amount     $ 225,000,000      
v3.23.1
Note 4 - Derivatives - Net Losses Recorded in Other Comprehensive Income (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Derivative, amount of gain (loss) recognized in OCI $ (4,361) $ 19,000
Derivative, amount of gain (loss) reclassified from OCI to interest income (4,267) 525
Derivative, Amount of gain recognized in other Noninterest income $ 0 $ 0
v3.23.1
Note 4 - Derivatives - Cash Flow Hedges Included in Consolidated Statements of Condition (Details) - Interest Rate Swap [Member] - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Derivative, notional amount $ 950,000 $ 950,000
Derivative, fair value $ 47,620 $ 56,797
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses (Details Textual)
 3 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Apr. 30, 2203
USD ($)
Dec. 31, 2022
USD ($)
Financing Receivable, after Allowance for Credit Loss $ 8,045,117,000     $ 8,009,176,000
Financing Receivable, Modified, Subsequent Default, Number of Contracts 0      
Financing Receivable, Trouble Debt Restructuring, Number of Contracts   2    
Commercial Portfolio Segment [Member]        
Financing Receivable, Modified, Accumulated   $ 98,000    
Commercial Real Estate Portfolio Segment [Member]        
Financing Receivable, Modified, Accumulated   8,300,000    
Financing Receivable, Troubled Debt Restructuring, One Time Principal Payment   $ 500,000    
Commercial Loan [Member] | Commercial Portfolio Segment [Member]        
Financing Receivable, Modified, Term Increase from Modification (Year) 3 years      
Asset Pledged as Collateral [Member] | Federal Home Loan Bank Advances [Member]        
Financing Receivable, after Allowance for Credit Loss $ 2,700,000,000     $ 2,700,000,000
Asset Pledged as Collateral [Member] | Federal Home Loan Bank Advances [Member] | Subsequent Event [Member]        
Financing Receivable, after Allowance for Credit Loss     $ 5,400,000,000  
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Composition of Loan Portfolio (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Gross loans $ 8,141,176 $ 8,109,161
Net deferred loan fees (9,057) (9,472)
Total loans receivable 8,132,119 8,099,689
Commercial Portfolio Segment [Member]    
Gross loans 1,414,226 1,472,734
Commercial Real Estate Portfolio Segment [Member]    
Gross loans 5,835,880 5,795,228
Commercial Construction Portfolio Segment [Member]    
Gross loans 630,469 574,139
Residential Portfolio Segment [Member]    
Gross loans 259,166 264,748
Consumer Portfolio Segment [Member]    
Gross loans $ 1,435 $ 2,312
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Composition of Loans Held-for-sale (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Loans held-for-sale $ 11,197 $ 13,772
Commercial Portfolio Segment [Member]    
Loans held-for-sale 11,197 13,473
Residential Mortgage [Member]    
Loans held-for-sale $ 0 $ 299
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Loans Receivable on Nonaccrual Status (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Nonaccrual loans with ACL $ 22,929 $ 34,336
Nonaccrual loans without ACL 24,738 10,118
Total Nonaccrual loans 47,667 44,454
Commercial Portfolio Segment [Member]    
Nonaccrual loans with ACL 18,766 23,512
Nonaccrual loans without ACL 555 1,745
Total Nonaccrual loans 19,321 25,257
Commercial Real Estate Portfolio Segment [Member]    
Nonaccrual loans with ACL 3,348 10,220
Nonaccrual loans without ACL 22,138 6,597
Total Nonaccrual loans 25,486 16,817
Residential Portfolio Segment [Member]    
Nonaccrual loans with ACL 815 604
Nonaccrual loans without ACL 2,045 1,776
Total Nonaccrual loans $ 2,860 $ 2,380
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Loans by Origination and Risk Designation (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Originated Current Fiscal Year $ 151,634 $ 1,940,802
Originated One Year Prior 1,924,350 1,948,742
Originated Two Years Prior 1,903,438 462,092
Originated Three Years Prior 449,767 417,698
Originated Four Years Prior 411,629 479,498
Originated Five or More Years Prior 1,664,200 1,289,624
Revolving Loans 1,636,158 1,570,705
Gross loans 8,141,176 8,109,161
Pass [Member]    
Originated Current Fiscal Year 151,634 1,930,147
Originated One Year Prior 1,923,548 1,946,667
Originated Two Years Prior 1,901,379 462,077
Originated Three Years Prior 449,755 408,820
Originated Four Years Prior 404,290 449,120
Originated Five or More Years Prior 1,567,296 1,194,037
Revolving Loans 1,601,535 1,535,858
Gross loans 7,999,437 7,926,726
Special Mention [Member]    
Originated Current Fiscal Year 0 3,040
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 583
Originated Four Years Prior 578 26
Originated Five or More Years Prior 46,137 46,325
Revolving Loans 6,719 12,131
Gross loans 53,434 62,105
Substandard [Member]    
Originated Current Fiscal Year 0 7,615
Originated One Year Prior 802 2,075
Originated Two Years Prior 2,059 15
Originated Three Years Prior 12 8,295
Originated Four Years Prior 6,761 30,352
Originated Five or More Years Prior 50,767 49,262
Revolving Loans 27,904 22,716
Gross loans 88,305 120,330
Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Commercial Portfolio Segment [Member]    
Originated Current Fiscal Year 88,764 309,251
Originated One Year Prior 288,586 305,867
Originated Two Years Prior 275,291 47,967
Originated Three Years Prior 44,130 30,529
Originated Four Years Prior 20,794 64,190
Originated Five or More Years Prior 165,690 158,886
Revolving Loans 530,971 556,044
Gross loans 1,414,226 1,472,734
Commercial Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 88,764 301,636
Originated One Year Prior 287,784 305,721
Originated Two Years Prior 275,151 47,952
Originated Three Years Prior 44,118 28,177
Originated Four Years Prior 18,468 52,950
Originated Five or More Years Prior 135,355 127,739
Revolving Loans 525,263 550,483
Gross loans 1,374,903 1,414,658
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 583
Originated Four Years Prior 578 26
Originated Five or More Years Prior 8,468 8,551
Revolving Loans 3,312 3,292
Gross loans 12,358 12,452
Commercial Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 7,615
Originated One Year Prior 802 146
Originated Two Years Prior 140 15
Originated Three Years Prior 12 1,769
Originated Four Years Prior 1,748 11,214
Originated Five or More Years Prior 21,867 22,596
Revolving Loans 2,396 2,269
Gross loans 26,965 45,624
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Commercial Real Estate Portfolio Segment [Member]    
Originated Current Fiscal Year 58,920 1,574,791
Originated One Year Prior 1,586,883 1,609,952
Originated Two Years Prior 1,595,666 382,987
Originated Three Years Prior 374,873 365,104
Originated Four Years Prior 369,441 395,024
Originated Five or More Years Prior 1,398,754 1,049,043
Revolving Loans 451,343 418,327
Gross loans 5,835,880 5,795,228
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 58,920 1,571,751
Originated One Year Prior 1,586,883 1,608,023
Originated Two Years Prior 1,593,747 382,987
Originated Three Years Prior 374,873 358,578
Originated Four Years Prior 364,428 375,886
Originated Five or More Years Prior 1,335,482 987,982
Revolving Loans 434,426 401,365
Gross loans 5,748,759 5,686,572
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 3,040
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 37,007 37,774
Revolving Loans 0 8,839
Gross loans 37,007 49,653
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 1,929
Originated Two Years Prior 1,919 0
Originated Three Years Prior 0 6,526
Originated Four Years Prior 5,013 19,138
Originated Five or More Years Prior 26,265 23,287
Revolving Loans 16,917 8,123
Gross loans 50,114 59,003
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Commercial Construction Portfolio Segment [Member]    
Originated Current Fiscal Year 0 8,615
Originated One Year Prior 4,263 7,605
Originated Two Years Prior 7,340 6,720
Originated Three Years Prior 6,721 508
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 612,145 550,691
Gross loans 630,469 574,139
Commercial Construction Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 0 8,615
Originated One Year Prior 4,263 7,605
Originated Two Years Prior 7,340 6,720
Originated Three Years Prior 6,721 508
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 603,779 542,460
Gross loans 622,103 565,908
Commercial Construction Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Commercial Construction Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 8,366 8,231
Gross loans 8,366 8,231
Commercial Construction Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Residential Portfolio Segment [Member]    
Originated Current Fiscal Year 2,768 45,926
Originated One Year Prior 44,461 25,318
Originated Two Years Prior 25,141 24,409
Originated Three Years Prior 24,036 21,557
Originated Four Years Prior 21,394 20,284
Originated Five or More Years Prior 99,755 81,693
Revolving Loans 41,611 45,561
Gross loans 259,166 264,748
Residential Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 2,768 45,926
Originated One Year Prior 44,461 25,318
Originated Two Years Prior 25,141 24,409
Originated Three Years Prior 24,036 21,557
Originated Four Years Prior 21,394 20,284
Originated Five or More Years Prior 96,458 78,314
Revolving Loans 37,979 41,468
Gross loans 252,237 257,276
Residential Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 662 0
Revolving Loans 3,407 0
Gross loans 4,069 0
Residential Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 2,635 3,379
Revolving Loans 225 4,093
Gross loans 2,860 7,472
Residential Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Consumer Portfolio Segment [Member]    
Originated Current Fiscal Year 1,182 2,219
Originated One Year Prior 157 0
Originated Two Years Prior 0 9
Originated Three Years Prior 7 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 1 2
Revolving Loans 88 82
Gross loans 1,435 2,312
Consumer Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 1,182 2,219
Originated One Year Prior 157 0
Originated Two Years Prior 0 9
Originated Three Years Prior 7 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 1 2
Revolving Loans 88 82
Gross loans 1,435 2,312
Consumer Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Consumer Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans 0 0
Consumer Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Gross loans $ 0 $ 0
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Gross loans $ 8,141,176 $ 8,109,161
Real Estate [Member]    
Gross loans 68,959 71,925
Other Collateral Pledged [Member]    
Gross loans 16,650 22,517
Collateral Pledged [Member]    
Gross loans 85,609 94,442
Commercial Portfolio Segment [Member]    
Gross loans 1,414,226 1,472,734
Commercial Portfolio Segment [Member] | Real Estate [Member]    
Gross loans 4,950 5,352
Commercial Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Gross loans 16,650 22,517
Commercial Portfolio Segment [Member] | Collateral Pledged [Member]    
Gross loans 21,600 27,869
Commercial Real Estate Portfolio Segment [Member]    
Gross loans 5,835,880 5,795,228
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member]    
Gross loans 49,529 52,477
Commercial Real Estate Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Gross loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Collateral Pledged [Member]    
Gross loans 49,529 52,477
Commercial Construction Portfolio Segment [Member]    
Gross loans 630,469 574,139
Commercial Construction Portfolio Segment [Member] | Real Estate [Member]    
Gross loans 8,366 8,232
Commercial Construction Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Gross loans 0 0
Commercial Construction Portfolio Segment [Member] | Collateral Pledged [Member]    
Gross loans 8,366 8,232
Residential Portfolio Segment [Member]    
Gross loans 259,166 264,748
Residential Portfolio Segment [Member] | Real Estate [Member]    
Gross loans 6,114 5,864
Residential Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Gross loans 0 0
Residential Portfolio Segment [Member] | Collateral Pledged [Member]    
Gross loans $ 6,114 $ 5,864
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Analysis of Aging of Loans (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Gross loans $ 8,141,176 $ 8,109,161
Nonaccrual 47,667 44,454
Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 13,079 1,965
Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 810 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 5,591
Financial Asset, Past Due [Member]    
Gross loans 61,556 52,010
Financial Asset, Not Past Due [Member]    
Gross loans 8,079,620 8,057,151
Commercial Portfolio Segment [Member]    
Gross loans 1,414,226 1,472,734
Nonaccrual 19,321 25,257
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 1,929 306
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 0 0
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 0
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Gross loans 21,250 25,563
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Gross loans 1,392,976 1,447,171
Commercial Real Estate Portfolio Segment [Member]    
Gross loans 5,835,880 5,795,228
Nonaccrual 25,486 16,817
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 5,740 90
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 810 0
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 5,591
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Gross loans 32,036 22,498
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Gross loans 5,803,844 5,772,730
Commercial Construction Portfolio Segment [Member]    
Gross loans 630,469 574,139
Nonaccrual 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 4,707 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Gross loans 4,707 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Gross loans 625,762 574,139
Residential Portfolio Segment [Member]    
Gross loans 259,166 264,748
Nonaccrual 2,860 2,380
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 703 1,569
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 0 0
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 0
Residential Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Gross loans 3,563 3,949
Residential Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Gross loans 255,603 260,799
Consumer Portfolio Segment [Member]    
Gross loans 1,435 2,312
Nonaccrual 0 0
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Gross loans 0 0
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Gross loans 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Gross loans 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Gross loans 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Gross loans $ 1,435 $ 2,312
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Impairment Evaluation on Loans and Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Individually evaluated impairment $ 6,857 $ 8,479
Collectively evaluated impairment 79,412 77,955
Total 87,002 90,513
Individually evaluated impairment 88,214 91,976
Collectively evaluated impairment 8,050,678 8,006,720
Total 8,141,176 8,109,161
Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 733 4,079
Individually evaluated impairment 2,284 10,465
Commercial Portfolio Segment [Member]    
Individually evaluated impairment 5,861 7,426
Collectively evaluated impairment 19,568 19,319
Total 26,162 28,903
Individually evaluated impairment 24,204 30,994
Collectively evaluated impairment 1,387,738 1,436,866
Total 1,414,226 1,472,734
Commercial Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 733 2,158
Individually evaluated impairment 2,284 4,874
Commercial Real Estate Portfolio Segment [Member]    
Individually evaluated impairment 924 1,003
Collectively evaluated impairment 52,076 50,818
Total 53,000 53,742
Individually evaluated impairment 49,529 46,886
Collectively evaluated impairment 5,786,351 5,742,751
Total 5,835,880 5,795,228
Commercial Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 0 1,921
Individually evaluated impairment 0 5,591
Commercial Construction Portfolio Segment [Member]    
Individually evaluated impairment 0 0
Collectively evaluated impairment 3,966 3,718
Total 3,966 3,718
Individually evaluated impairment 8,366 8,232
Collectively evaluated impairment 622,103 565,907
Total 630,469 574,139
Commercial Construction Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 0 0
Individually evaluated impairment 0 0
Residential Portfolio Segment [Member]    
Individually evaluated impairment 72 50
Collectively evaluated impairment 3,796 4,093
Total 3,868 4,143
Individually evaluated impairment 6,115 5,864
Collectively evaluated impairment 253,051 258,884
Total 259,166 264,748
Residential Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 0 0
Individually evaluated impairment 0 0
Consumer Portfolio Segment [Member]    
Individually evaluated impairment 0 0
Collectively evaluated impairment 6 7
Total 6 7
Individually evaluated impairment 0 0
Collectively evaluated impairment 1,435 2,312
Total 1,435 2,312
Consumer Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Individually evaluated impairment 0 0
Individually evaluated impairment $ 0 $ 0
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Activity in the ACL for Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Provision for (reversal of) credit losses - loans $ 972 $ 1,539
Commercial Portfolio Segment [Member]    
Balance 28,903 25,969
Charge-offs (2,767) (49)
Recoveries 0 1
Provision for (reversal of) credit losses - loans 26 (462)
Balance 26,162 25,459
Commercial Real Estate Portfolio Segment [Member]    
Balance 53,742 45,589
Charge-offs (1,717) (225)
Recoveries 0 0
Provision for (reversal of) credit losses - loans 975 2,504
Balance 53,000 47,868
Commercial Construction Portfolio Segment [Member]    
Balance 3,718 3,580
Charge-offs 0 0
Recoveries 0 0
Provision for (reversal of) credit losses - loans 248 (299)
Balance 3,966 3,281
Residential Portfolio Segment [Member]    
Balance 4,143 3,628
Charge-offs 0 0
Recoveries 1 31
Provision for (reversal of) credit losses - loans (276) (204)
Balance 3,868 3,455
Consumer Portfolio Segment [Member]    
Balance 7 7
Charge-offs 0 0
Recoveries 0 0
Provision for (reversal of) credit losses - loans (1) 0
Balance 6 7
Unallocated Financing Receivables [Member]    
Balance 90,513 78,773
Charge-offs (4,484) (274)
Recoveries 1 32
Provision for (reversal of) credit losses - loans 972 1,539
Balance $ 87,002 $ 80,070
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Amortized Cost of of the Modified Loans (Details) - Commercial Portfolio Segment [Member]
$ in Thousands
 3 Months Ended
Mar. 31, 2023
USD ($)
Commercial $ 63
Commercial 0.01%
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Aging of Modified Loans (Details) - Commercial Portfolio Segment [Member]
$ in Thousands
 3 Months Ended
Mar. 31, 2023
USD ($)
Commercial $ 63
Financial Asset, Not Past Due [Member]  
Commercial 63
Financial Asset, 30 to 89 Days Past Due [Member]  
Commercial 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]  
Commercial $ 0
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Rollforward of Allowance for Credit Losses for Unfunded Commitments (Details) - Unfunded Loan Commitment [Member] - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Balance at beginning of period $ 3,036 $ 2,351
Provision for (reversal of) credit losses - unfunded commitments 28 (89)
Balance at end of period $ 3,064 $ 2,262
v3.23.1
Note 5 - Loans and the Allowance for Credit Losses - Summary of (Reversal of) Provision for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Provision for credit losses - loans $ 972 $ 1,539
Provision for credit losses 1,000 1,450
Unfunded Loan Commitment [Member]    
Provision for (reversal of) credit losses - unfunded commitments $ 28 $ (89)
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments (Details Textual) - Collateral Pledged [Member] - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Impaired Financing Receivable, with Related Allowance, Recorded Investment $ 30.6 $ 43.8
Impaired Financing Receivable, Related Allowance $ 7.2 $ 10.5
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Securities available-for-sale $ 629,001 $ 634,884
Fair Value, Recurring [Member]    
Securities available-for-sale 629,001 634,884
Equity securities 18,025 15,811
Derivatives - interest rate contracts 47,620 56,797
Total assets 694,646 707,492
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 132 242
Equity securities 9,892 9,733
Derivatives - interest rate contracts 0 0
Total assets 10,024 9,975
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 621,381 627,293
Equity securities 8,133 6,078
Derivatives - interest rate contracts 47,620 56,797
Total assets 677,134 690,168
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 7,488 7,349
Equity securities 0 0
Derivatives - interest rate contracts 0 0
Total assets 7,488 7,349
US Government Agencies Debt Securities [Member]    
Securities available-for-sale 43,515 44,450
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 43,515 44,450
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 43,515 44,450
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Residential Mortgage-Backed Securities [Member]    
Securities available-for-sale 419,667 417,578
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 419,667 417,578
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 419,667 417,578
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Commercial Mortgage-Backed Securities [Member]    
Securities available-for-sale 21,960 21,104
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 21,960 21,104
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 21,960 21,104
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
US States and Political Subdivisions Debt Securities [Member]    
Securities available-for-sale 138,296 142,896
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 138,296 142,896
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 130,808 135,547
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 7,488 7,349
Corporate Debt Securities [Member]    
Securities available-for-sale 3,977 6,974
Corporate Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 3,977 6,974
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 3,977 6,974
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Asset-Backed Securities [Member]    
Securities available-for-sale 1,454 1,640
Asset-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 1,454 1,640
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 1,454 1,640
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Other Debt Obligations [Member]    
Securities available-for-sale 132 242
Other Debt Obligations [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 132 242
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 132 242
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 0 0
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale $ 0 $ 0
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Commercial Portfolio Segment [Member]    
Collateral dependent loans $ 11,635 $ 14,550
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 11,635 14,550
Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans 10,428 17,264
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 10,428 17,264
Residential Portfolio Segment [Member]    
Collateral dependent loans 1,363 1,392
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans $ 1,363 $ 1,392
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Details) - US States and Political Subdivisions Debt Securities [Member] - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Beginning $ 7,349 $ 8,565
Principal paydowns (74) (287)
Change in unrealized gain (loss) 213 (929)
Beginning $ 7,488 $ 7,349
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Quantitative Information About Significant Unobservable Inputs (Details)
$ in Thousands
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Securities available-for-sale $ 629,001 $ 634,884
Fair Value, Recurring [Member]    
Securities available-for-sale 629,001 634,884
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 7,488 7,349
US States and Political Subdivisions Debt Securities [Member]    
Securities available-for-sale 138,296 142,896
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 138,296 142,896
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale $ 7,488 $ 7,349
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member]    
Securities available-for-sale, rate 0.040 0.043
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Significant Unobservable Inputs for Assets Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member]
$ in Thousands
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Commercial Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 11,635 $ 14,550
Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans, fair value 10,428 17,264
Residential Portfolio Segment [Member]    
Collateral dependent loans, fair value 1,363 1,392
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member]    
Collateral dependent loans, fair value 11,635 14,550
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Valuation, Market Approach [Member]    
Collateral dependent loans, fair value $ 11,150 $ 14,028
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Valuation, Market Approach [Member] | Maximum [Member]    
Collateral dependent loans, rate 96 96
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Valuation, Market Approach [Member] | Weighted Average [Member]    
Collateral dependent loans, rate 67 67
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Valuation, Market Approach [Member] | Minimum [Member]    
Collateral dependent loans, rate 65 65
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 485 $ 522
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Maximum [Member]    
Collateral dependent loans, rate 13 13
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Weighted Average [Member]    
Collateral dependent loans, rate 3 3
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Minimum [Member]    
Collateral dependent loans, rate 10 10
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 10,428 $ 17,264
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 10,428 $ 17,264
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Maximum [Member]    
Collateral dependent loans, rate 5 0
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Weighted Average [Member]    
Collateral dependent loans, rate 6 15
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Minimum [Member]    
Collateral dependent loans, rate 15 20
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 1,363 $ 1,392
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 1,363 $ 1,392
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Maximum [Member]    
Collateral dependent loans, rate 39 39
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Weighted Average [Member]    
Collateral dependent loans, rate 27 22
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member] | Minimum [Member]    
Collateral dependent loans, rate 21 21
v3.23.1
Note 6 - Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Securities available-for-sale $ 629,001 $ 634,884
Reported Value Measurement [Member]    
Cash and due from banks 562,416 268,315
Securities available-for-sale 629,001 634,884
Restricted investments in bank stocks 46,379 46,604
Equity securities 18,025 15,811
Net loans 8,045,117 8,009,176
Derivatives - interest rate contracts 47,620 56,797
Accrued interest receivable 46,301 46,062
Noninterest-bearing deposits 1,345,265 1,501,614
Interest-bearing deposits 6,407,911 5,855,008
Borrowings 852,611 857,622
Subordinated debentures 79,060 153,255
Accrued interest payable 8,639 6,925
Estimate of Fair Value Measurement [Member]    
Cash and due from banks 562,416 268,315
Securities available-for-sale 629,001 634,884
Equity securities 18,025 15,811
Net loans   7,723,378
Derivatives - interest rate contracts 47,620 56,797
Accrued interest receivable 46,301 46,062
Noninterest-bearing deposits 1,345,265 1,501,614
Interest-bearing deposits 6,378,261 5,811,291
Borrowings 850,698 854,698
Subordinated debentures 78,040 153,581
Accrued interest payable 8,639 6,925
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and due from banks 562,416 268,315
Securities available-for-sale 132 242
Equity securities 9,892 9,733
Net loans 0 0
Derivatives - interest rate contracts 0 0
Accrued interest receivable 0 0
Noninterest-bearing deposits 1,345,265 1,501,614
Interest-bearing deposits 3,701,249 3,460,818
Borrowings 0  
Subordinated debentures 0 0
Accrued interest payable 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Cash and due from banks 0 0
Securities available-for-sale 621,381 627,293
Equity securities 8,133 6,078
Net loans 0 0
Derivatives - interest rate contracts 47,620 56,797
Accrued interest receivable 4,829 4,685
Noninterest-bearing deposits 0 0
Interest-bearing deposits 2,677,012 2,350,473
Borrowings 850,698 854,698
Subordinated debentures 78,040 153,581
Accrued interest payable 8,639 6,925
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Cash and due from banks 0 0
Securities available-for-sale 7,488 7,349
Equity securities 0 0
Net loans   7,723,378
Derivatives - interest rate contracts 0 0
Accrued interest receivable 41,472 41,377
Noninterest-bearing deposits 0 0
Interest-bearing deposits 0 0
Borrowings 0 0
Subordinated debentures 0 0
Accrued interest payable $ 0 $ 0
v3.23.1
Note 7 - Comprehensive (Loss) Income - Reclassification out of Accumulated Other Comprehensive (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Interest income (expense) on cash flow hedges $ 67,084 $ 70,358
Income tax expense 9,077 11,351
Net income 24,929 31,381
Other components of net periodic pension expense (25) (143)
Reclassification out of Accumulated Other Comprehensive Income [Member]    
Net income 2,932 (390)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]    
Interest income (expense) on cash flow hedges 4,267 (525)
Income tax expense 23 4
Net income (51) (12)
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]    
Income tax expense (1,284) 147
Net income 2,983 (378)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]    
Other components of net periodic pension expense $ (74) $ (16)
v3.23.1
Note 7 - Comprehensive (Loss) Income - Accumulated Other Comprehensive (Loss) (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Balance $ 1,190,970 $ 1,178,751 $ 1,138,519 $ 1,124,212
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]        
Balance (57,292) (61,775)    
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]        
Balance 26,328 32,360    
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]        
Balance (2,898) (2,949)    
AOCI Attributable to Parent [Member]        
Balance $ (33,862) $ (32,364) $ (8,269) $ (1,404)
v3.23.1
Note 8 - Stock-based Compensation (Details Textual) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 23, 2017
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement, Expense   $ 1.1 $ 1.1    
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)   32,068 31,383    
Performance Shares [Member]          
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount   $ 2.4      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   2 years 3 months 18 days      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Expected toVested (in shares)   164,231      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Expected to Vest, Performance Obligations Exceeded (in shares)   233,087      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   116,192      
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares)   63,839      
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)   52,353 22,350    
Restricted Stock [Member]          
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount   $ 1.4      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)         1 year 7 months 6 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)       24,445  
Restricted Stock Units (RSUs) [Member]          
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount   $ 3.1      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   1 year 9 months 18 days      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   70,669      
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares)   38,601      
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)   32,068      
The 2017 Equity Compensation Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) 750,000        
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)   59,209      
The 2017 Equity Compensation Plan [Member] | Restricted Stock, Options and Restricted Stock Units [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 3 years        
The 2017 Equity Compensation Plan [Member] | Restricted Stock, Options and Restricted Stock Units [Member] | Vesting Each Year [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage 33.33%        
The 2017 Equity Compensation Plan [Member] | Share-Based Payment Arrangement, Option [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) 10 years        
The 2017 Equity Compensation Plan [Member] | Performance Shares [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 3 years        
v3.23.1
Note 8 - Stock-based Compensation - Activity in Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Outstanding, number of stock options (in shares) 8,680  
Outstanding, weighted-average exercise price (in dollars per share) $ 12.95  
Granted, number of stock options (in shares) 0  
Granted, weighted-average exercise price (in dollars per share) $ 0  
Exercised, number of stock options (in shares) (6,473) (8,774)
Exercised, weighted-average exercise price (in dollars per share) $ 12.52  
Forfeited/cancelled/expired, number of stock options (in shares) 0  
Forfeited/cancelled/expired, weighted-average exercise price (in dollars per share) $ 0  
Outstanding, number of stock options (in shares) 2,207  
Outstanding, weighted-average exercise price (in dollars per share) $ 14.24  
Outstanding, weighted average remaining contractual term (Year) 4 months 28 days  
Outstanding, aggregate intrinsic value $ 7,592  
Exercisable, number of stock options (in shares) 2,207  
Exercisable, weighted-average exercise price (in dollars per share) $ 14.24  
Exercisable, weighted average remaining contractual term (Year) 4 months 28 days  
Exercisable, aggregate intrinsic value $ 7,592  
v3.23.1
Note 8 - Share-based Compensation - Activity in Restricted Shares (Details) - Restricted Stock [Member]
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Nonvested, shares (in shares) | shares 85,931
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 26.20
Granted, shares (in shares) | shares 50,617
Granted, weighted average grant date fair value (in dollars per share) | $ / shares $ 17.93
Vested, shares (in shares) | shares (24,445)
Vested, weighted average grant date fair value (in dollars per share) | $ / shares $ 27.49
Forfeited/cancelled/expired, shares (in shares) | shares (1,415)
Forfeited/cancelled/expired, weighted average grant date fair value (in dollars per share) | $ / shares $ 29.46
Nonvested, shares (in shares) | shares 110,688
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 22.09
v3.23.1
Note 8 - Stock-based Compensation - Summary of Unearned Performance Unit Awards (Details) - Performance Shares [Member]
 3 Months Ended
Mar. 31, 2023
$ / shares
shares
Nonvested, shares (in shares) 195,265
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 17.98
Awarded, units (in shares) 85,158
Awarded, weighted average grant date fair value (in dollars per share) | $ / shares $ 17.93
Vested shares, units (in shares) (116,192)
Vested shares, weighted average grant date fair value (in dollars per share) | $ / shares $ 10.77
Nonvested, shares (in shares) 164,231
Unearned, units (maximum) (in shares) 233,087
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 23.06
v3.23.1
Note 8 - Stock-based Compensation - Summary of Unearned Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member]
 3 Months Ended
Mar. 31, 2023
$ / shares
shares
Nonvested, shares (in shares) | shares 120,035
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 23.84
Awarded, units (in shares) | shares 146,857
Awarded, weighted average grant date fair value (in dollars per share) | $ / shares $ 18.98
Vested shares, units (in shares) | shares (70,669)
Vested shares, weighted average grant date fair value (in dollars per share) | $ / shares $ 19.19
Nonvested, shares (in shares) | shares 196,223
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 21.88
v3.23.1
Note 9 - Components of Net Periodic Pension Cost - Net Periodic Pension Cost (Details) - Pension Plan [Member] - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Service cost $ 0 $ 0
Interest cost 110 78
Expected return on plan assets (209) (237)
Net amortization 74 16
Total periodic pension income $ (25) $ (143)
v3.23.1
Note 10 - FHLB Borrowings (Details Textual) - USD ($)
$ in Millions
Apr. 30, 2023
Mar. 31, 2023
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged   $ 2.1
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds   $ 0.7
Subsequent Event [Member]    
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged $ 2.9  
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds $ 1.5  
v3.23.1
Note 10 - FHLB Borrowings - FHLB Borrowings and Weighted Average Interest Rates (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Less than 1 year, amount $ 825,000 $ 830,000
Less than 1 year, rate 5.08% 4.42%
1 year through less than 2 years, amount $ 0 $ 0
1 year through less than 2 years, rate 0.00% 0.00%
2 years through less than 3 years, amount $ 25,000 $ 25,000
2 years through less than 3 years, rate 1.00% 1.00%
3 years through less than 4 years, amount $ 2,050 $ 2,050
3 years through less than 4 years, rate 2.23% 2.23%
4 years through 5 years, amount $ 317 $ 326
4 years through 5 years, rate 2.85% 2.85%
After 5 years, amount $ 318 $ 326
After 5 years, rate 2.96% 2.96%
FHLB borrowings - gross $ 852,685 $ 857,702
FHLB borrowings - gross 4.95% 4.32%
Fair value discount $ (74) $ (80)
Borrowings $ 852,611 $ 857,622
v3.23.1
Note 11 - Subordinated Debentures (Details Textual) - Subordinated Debt [Member] - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Jun. 10, 2020
Jan. 11, 2018
Dec. 31, 2003
Mar. 31, 2023
Dec. 19, 2003
The 2020 Notes [Member]          
Debt Instrument, Face Amount $ 75.0        
Debt Instrument, Interest Rate, Stated Percentage 5.75%        
The Notes [Member]          
Debt Instrument, Face Amount   $ 75.0      
LIBOR - London Interbank Offered Rate [Member] | The Notes [Member]          
Debt Instrument, Basis Spread on Variable Rate   2.84%      
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | The 2020 Notes [Member]          
Debt Instrument, Basis Spread on Variable Rate 5.605%        
Center Bancorp Statutory Trust II [Member]          
Debt Instrument, Face Amount       $ 5,000.0 $ 5.0
Proceeds from Issuance of Debt     $ 5.2    
Debt Instrument, Basis Spread on Variable Rate       2.85%  
Debt Instrument, Interest Rate, Effective Percentage       7.65%  
Center Bancorp Statutory Trust II [Member] | LIBOR - London Interbank Offered Rate [Member]          
Debt Instrument, Basis Spread on Variable Rate     2.85%    
v3.23.1
Note 11 - Subordinated Debentures - Summary of Mandatory Redeemable Trust Preferred Securities (Details) - Subordinated Debt [Member] - Center Bancorp Statutory Trust II [Member] - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 19, 2003
Securities issued $ 5,000 $ 5
Liquidation value (in dollars per share) $ 1,000  
Coupon rate 2.85%  
Maturity Jan. 23, 2034  
Redeemable by issuer beginning Jan. 23, 2009