BYLINE BANCORP, INC., 10-K filed on 3/4/2024
Annual Report
v3.24.0.1
Document And Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2023
Mar. 01, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Registrant Name Byline Bancorp, Inc.    
Entity Central Index Key 0001702750    
Current Fiscal Year End Date --12-31    
Entity Filer Category Accelerated Filer    
Entity File Number 001-38139    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-3012593    
Entity Address, Address Line One 180 North LaSalle Street    
Entity Address, Address Line Two Suite 300    
Entity Address, City or Town Chicago    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60601    
City Area Code 773    
Local Phone Number 244-7000    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Public Float     $ 441,941,160
Entity Common Stock, Shares Outstanding   44,378,792  
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Document Annual Report true    
Document Transition Report false    
Documents Incorporated by Reference Portions of the Registrant’s Definitive Proxy Statement relating to its 2024 Annual Meeting of Stockholders, scheduled to be held on June 4, 2024, are incorporated by reference into Part III of this Report.    
Title of each class Common Stock    
Trading Symbol BY    
Name of each exchange on which registered NYSE    
Auditor Firm ID 659    
Auditor Name Moss Adams LLP    
Auditor Location Portland, Oregon, United States of America    
v3.24.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
ASSETS    
Cash and due from banks $ 60,431 $ 62,274
Interest bearing deposits with other banks 165,705 117,079
Cash and cash equivalents 226,136 179,353
Equity and other securities, at fair value 8,743 7,989
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 1,342,480 1,174,431
Securities held-to-maturity, at amortized cost ($1,149 and $2,672 fair value at December 31, 2023 and 2022, respectively) 1,157 2,705
Restricted stock, at cost 16,304 28,202
Loans held for sale 18,005 47,823
Loans and leases:    
Loans and leases 6,684,306 5,421,258
Allowance for credit losses - loans and leases (101,686) (81,924)
Net loans and leases 6,582,620 5,339,334
Servicing assets, at fair value 19,844 19,172
Accrued interest receivable 43,922 29,815
Premises and equipment, net 66,627 56,798
Operating lease right-of-use asset 12,474 11,352
Assets held for sale 4,484 8,673
Other real estate owned, net 1,200 4,717
Goodwill 181,705 148,353
Other intangible assets, net 21,773 10,534
Bank-owned life insurance 96,900 82,093
Deferred tax assets, net 50,058 68,213
Due from counterparty 35,277 11,569
Other assets 152,258 131,815
Total assets 8,881,967 7,362,941
LIABILITIES    
Non-interest-bearing demand deposits 1,905,876 2,138,645
Interest-bearing deposits:    
Interest bearing checking, savings accounts, and money market accounts 3,386,171 2,633,549
Time deposits 1,884,952 922,927
Total deposits 7,176,999 5,695,121
Federal Home Loan Bank advances 325,000 625,000
Term loan 18,333 0
Line of credit 11,250 0
Subordinated notes, net 73,866 73,691
Securities sold under agreements to repurchase 40,607 15,399
Junior subordinated debentures issued to capital trusts, net 70,452 37,338
Accrued interest payable 22,233 4,494
Operating lease liability 14,268 14,391
Accrued expenses and other liabilities 138,808 131,691
Total liabilities 7,891,816 6,597,125
COMMITMENTS AND CONTINGENT LIABILITIES (Note 16)
STOCKHOLDERS' EQUITY (Note 24)    
Preferred stock, $0.01 par value per share, 25,000,000 shares authorized; 10,438 shares issued and outstanding at December 31, 2021 0 0
Common stock, voting $0.01 par value at December 31, 2022 and 2021; 150,000,000 shares authorized; 39,518,702 shares issued at December 31, 2022 and 39,203,747 issued at December 31, 2021 451 389
Additional paid-in capital 710,488 598,297
Retained earnings 429,036 335,794
Treasury stock at cost, 2,025,927 shares at December 31, 2022 and 1,489,844 shares at December 31, 2021 (49,707) (51,114)
Accumulated other comprehensive loss, net of tax (100,117) (117,550)
Total stockholders’ equity 990,151 765,816
Total liabilities and stockholders’ equity $ 8,881,967 $ 7,362,941
v3.24.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Securities available-for-sale, amortized cost $ 1,516,801 $ 1,378,343
Securities held-to-maturity, fair value $ 1,149 $ 2,672
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 25,000,000 25,000,000
Common stock, voting par value $ 0.01 $ 0.01
Common stock, voting shares authorized 150,000,000 150,000,000
Common stock, voting shares issued 45,714,241 39,518,702
Treasury stock 1,950,185 2,025,927
v3.24.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
INTEREST AND DIVIDEND INCOME      
Interest and fees on loans and leases $ 440,984 $ 273,412 $ 222,993
Interest on taxable securities 27,404 21,946 19,694
Interest on tax-exempt securities 3,397 3,444 3,907
Other interest and dividend income 7,693 2,757 2,332
Total interest and dividend income 479,478 301,559 248,926
INTEREST EXPENSE      
Deposits 121,436 19,796 4,502
Other borrowings 17,161 9,322 1,663
Subordinated notes and debentures 10,260 7,111 6,374
Total interest expense 148,857 36,229 12,539
Net interest income 330,621 265,330 236,387
PROVISION FOR CREDIT LOSSES 31,653 23,879 973
Net interest income after provision for credit losses 298,968 241,451 235,414
NON-INTEREST INCOME      
Fees and service charges on deposits 9,211 8,152 7,254
Loan servicing revenue 13,503 13,479 12,693
Loan servicing asset revaluation (5,089) (11,743) (6,658)
ATM and interchange fees 4,462 4,437 4,476
Net gains on sales of securities available-for-sale 0 50 1,435
Change in fair value of equity securities, net 1,071 (603) (62)
Net gains on sales of loans 22,805 31,899 46,274
Wealth management and trust income 4,158 3,807 3,069
Other non-interest income 6,194 7,836 5,772
Total non-interest income 56,315 57,314 74,253
NON-INTEREST EXPENSE      
Salaries and employee benefits 126,979 118,051 101,222
Occupancy expense, net 14,030 13,197 16,553
Equipment expense 4,478 3,791 4,059
Impairment loss on assets held for sale 2,000 372 12,332
Loan and lease related expenses 2,936 1,707 5,957
Legal, audit, and other professional fees 12,946 10,357 10,198
Data processing 19,509 13,358 11,780
Net loss recognized on other real estate owned and other related expenses 385 708 1,078
Regulatory assessments 4,143 2,953 1,717
Other intangible assets amortization expense 6,011 6,671 7,073
Advertising and promotions 3,796 2,825 1,800
Telecommunications 1,447 918 1,155
Other non-interest expense 10,943 9,174 10,531
Total non-interest expense 209,603 184,082 185,455
INCOME BEFORE PROVISION FOR INCOME TAXES 145,680 114,683 124,212
PROVISION FOR INCOME TAXES 37,802 26,729 31,427
NET INCOME 107,878 87,954 92,785
Dividends on preferred shares 0 196 783
INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 107,878 $ 87,758 $ 92,002
EARNINGS PER COMMON SHARE      
Basic $ 2.69 $ 2.37 $ 2.45
Diluted $ 2.67 $ 2.34 $ 2.4
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Other Comprehensive Income [Abstract]      
Net Income (Loss) $ 107,878 $ 87,954 $ 92,785
Securities available-for-sale      
Unrealized holding gains (losses) arising during the period 29,591 (191,922) (39,290)
Reclassification adjustments for net gains included in net income 0 (50) (1,435)
Tax effect (7,974) 51,226 11,254
Net of tax 21,617 (140,746) (29,471)
Cash flow hedges      
Unrealized holding gains arising during the period 9,605 43,977 4,140
Reclassification adjustments for net (gains) losses included in net income (15,336) (1,022) 148
Tax effect 1,547 (11,457) (1,166)
Net of tax (4,184) 31,498 3,122
Total other comprehensive income (loss) 17,433 (109,248) (26,349)
Comprehensive income (loss) $ 125,311 $ (21,294) $ 66,436
v3.24.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)
$ in Thousands
Total
Cumulative-Effect Adjustment (ASU 2016-13)
Preferred Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Retained Earnings
Cumulative-Effect Adjustment (ASU 2016-13)
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Series B Preferred Stock
Preferred Stock
Beginning balance at Dec. 31, 2020 $ 805,464   $ 10,438 $ 384 $ 587,165 $ 191,098   $ (1,668) $ 18,047  
Beginning balance, shares at Dec. 31, 2020     10,438 38,618,054            
Net Income (Loss) 92,785         92,785        
Other comprehensive income (loss), net of tax (26,349)               (26,349)  
Issuance of common stock upon exercise of stock options, net 1,456     $ 1 1,355     100    
Issuance of common stock upon exercise of stock options net, shares       115,897            
Restricted stock activity (1,135)     $ 1 (1)     (1,135)    
Restricted stock activity, shares       258,458            
Issuance of common stock in connection with employee stock purchase plan 1,217     $ 1 1,216          
Issuance of common stock in connection with employee stock purchase plan, shares       53,202            
Cash dividends declared on preferred stock (783)         (783)        
Cash dividends declared on common stock (11,424)         (11,424)        
Repurchases of common stock $ (28,867)             28,867    
Repurchase of common stock, shares 1,331,708     (1,331,708)            
Share-based compensation expense $ 4,018       4,018          
Ending balance at Dec. 31, 2021 836,382   $ 10,438 $ 387 593,753 271,676   (31,570) (8,302)  
Ending balance, shares at Dec. 31, 2021     10,438 37,713,903            
Net Income (Loss) 87,954         87,954        
Other comprehensive income (loss), net of tax (109,248)               (109,248)  
Issuance of common stock upon exercise of stock options, net (2,588)       (592)     (1,996)    
Issuance of common stock upon exercise of stock options net, shares       224,640            
Restricted stock activity (1,595)     $ 2 (197)     (1,400)    
Restricted stock activity, shares       195,127            
Issuance of common stock in connection with employee stock purchase plan 1,125     $ 0 (1)     1,126    
Issuance of common stock in connection with employee stock purchase plan, shares       48,173            
Redemption of Series B Preferred Stock (10,438)                 $ (10,438)
Stock Redeemed or Called During Period, Shares                   (10,438)
Cash dividends declared on preferred stock (196)         (196)        
Cash dividends declared on common stock (13,543)         (13,543)        
Repurchases of common stock $ (17,274)             (17,274)    
Repurchase of common stock, shares 689,068     (689,068)            
Share-based compensation expense $ 5,334       5,334          
Ending balance at Dec. 31, 2022 765,816 $ (10,097) $ 0 $ 389 598,297 335,794 $ (10,097) (51,114) (117,550)  
Ending balance, shares at Dec. 31, 2022     0 37,492,775            
Net Income (Loss) 107,878         107,878        
Other comprehensive income (loss), net of tax 17,433               17,433  
Issuance of common stock upon exercise of stock options, net $ 659     $ 1 658          
Issuance of common stock upon exercise of stock options net, shares 59,153                  
Issuance of common stock and stock options due to business combination, net of issuance costs $ 107,017     $ 59 106,958          
Issuance of common stock and stock options due to business combination, net of issuance costs, shares       5,932,323            
Restricted stock activity (2,251)     $ 2 (2,140)     (113)    
Restricted stock activity, shares       206,193            
Issuance of common stock in connection with employee stock purchase plan 1,520       0     1,520    
Issuance of common stock in connection with employee stock purchase plan, shares       73,612            
Cash dividends declared on common stock $ (14,636)         (14,636)        
Repurchase of common stock, shares 0                  
Share-based compensation expense $ 6,715       6,715          
Ending balance at Dec. 31, 2023 $ 990,151   $ 0 $ 451 $ 710,488 $ 429,036   $ (49,707) $ (100,117)  
Ending balance, shares at Dec. 31, 2023     0 43,764,056            
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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Dividends per share $ 0.36 $ 0.36 $ 0.3
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES      
Net Income (Loss) $ 107,878 $ 87,954 $ 92,785
Adjustments to reconcile net income to net cash from operating activities:      
Provision for credit losses 31,653 23,879 973
Impairment Loss on Premises and Equipment 0 0 2,227
Impairment loss on right-of-use asset 395 0 1,872
Impairment loss on assets held for sale 2,000 372 12,332
Depreciation and amortization of premises and equipment 4,529 4,288 5,991
Net amortization of securities 894 4,272 8,315
Net change in fair value of equity securities, net (1,071) 603 62
Net gains on sales of securities available-for-sale 0 (50) (1,435)
Net losses (gains) on sales and valuation adjustments of premises and equipment (723) 297 (313)
Net gains on sales of loans (22,805) (31,899) (46,274)
Originations of U.S. government guaranteed loans (331,923) (360,454) (452,803)
Proceeds from U.S. government guaranteed loans sold 360,943 417,849 493,823
Accretion of premiums and discounts on acquired loans, net (16,726) (4,555) (6,451)
Net change in servicing assets (672) 4,572 (1,702)
Net losses on sales and valuation adjustments of other real estate owned 508 247 524
Net amortization of other acquisition accounting adjustments 7,983 6,671 6,999
Amortization of subordinated debt issuance cost 175 174 175
Accretion of junior subordinated debentures discount 453 432 455
Share-based compensation expense 6,715 5,334 4,018
Deferred tax provision (benefit) 26,578 25,564 (60)
Increase in cash surrender value of bank owned life insurance (2,345) (2,052) (1,481)
Changes in assets and liabilities:      
Accrued interest receivable and other assets (1,061) (74,591) (30,442)
Accrued interest payable and other liabilities (7,311) 111,426 (15,164)
Net cash provided by operating activities 166,067 220,333 74,426
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchases of securities available-for-sale (185,527) (104,083) (645,461)
Proceeds from maturities and calls of securities available-for-sale 11,161 26,750 46,837
Proceeds from paydowns of securities available-for-sale 101,396 139,383 338,943
Proceeds from sales and calls of securities available-for-sale 163,649 23,293 295,597
Proceeds from maturities and calls of securities held-to-maturity 1,545 1,170 500
Redemptions (purchases) of Federal Home Loan Bank stock, net 14,956 (6,200) (11,495)
Proceeds from other loans sold 6,750 0 3,964
Net change in loans and leases (460,262) (900,334) (207,769)
Purchases of premises and equipment (3,861) (3,633) (2,236)
Proceeds from sales of premises and equipment 0 28 296
Proceeds from sales of assets held for sale 2,538 3,277 9,040
Proceeds from sales of other real estate owned 3,580 491 4,285
Investment in bank owned life insurance 0 0 (68,549)
Net cash received in acquisition of business 7,834 0 0
Net cash used in investing activities (336,241) (819,858) (236,048)
CASH FLOWS FROM FINANCING ACTIVITIES      
Net increase in deposits 515,415 540,074 403,090
Proceeds from short-term borrowings 17,695,200 22,269,500 13,337,000
Repayments of short-term borrowings (18,035,200) (22,134,500) (13,081,000)
Proceeds from revolving line of credit 15,000 0 0
Repayments of revolving line of credit (3,750) 0 0
Proceeds from term loan 20,000 0 0
Repayments of term loan (1,667) 0 0
Proceeds from Paycheck Protection Program Liquidity Facility 0 0 196,679
Repayments of Paycheck Protection Program Liquidity Facility 0 0 (568,586)
Net change in securities sold under agreements to repurchase 24,753 (14,324) (12,271)
Dividends paid on preferred stock 0 (196) (783)
Dividends paid on common stock (14,585) (13,401) (11,269)
Proceeds from issuance of common stock 1,791 1,506 2,140
Redemption of preferred stock 0 (10,438) 0
Repurchase of common stock 0 (17,274) (28,867)
Net cash provided by financing activities 216,957 620,947 236,133
NET INCREASE IN CASH AND CASH EQUIVALENTS 46,783 21,422 74,511
CASH AND CASH EQUIVALENTS, beginning of period 179,353 157,931 83,420
CASH AND CASH EQUIVALENTS, end of period 226,136 179,353 157,931
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid during the period for interest 128,636 31,181 13,051
Cash payments during the period for taxes 12,244 28,652 34,824
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Reclassification from equity securities to other assets 0 2,236 0
Transfer of loans to other real estate owned 571 3,343 436
Right of use asset exchanged for operating lease liabilties 4,786 3,006 5,141
Common stock issued due to acquisition of a business 107,107 0 0
Common dividend declared, not paid 51 142 155
Common share withholding 2,251 4,733 0
Total assets acquired from acquisition 1,160,491 0 0
Value ascribed to goodwill 33,352 0 0
Total liabilities assumed from acquisition $ 1,054,929 $ 0 $ 0
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Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net Income (Loss) $ 107,878 $ 87,954 $ 92,785
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Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
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Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Business Description And Accounting Policies [Abstract]  
Business and Summary of Significant Accounting Policies

Note 1—Business and Summary of Significant Accounting Policies

Nature of business—Byline Bancorp, Inc. (the "Company," "we," "us," "our") is a bank holding company whose principal activity is the ownership and management of its subsidiary bank, Byline Bank (the "Bank"). The Bank originates commercial, commercial real estate and consumer loans and leases, U.S. government guaranteed loans, and receives deposits from customers located primarily in the Chicago, Illinois metropolitan area. The Bank operates 47 Chicago metropolitan area and one Wauwatosa, Wisconsin, banking offices. The Bank operates under an Illinois state bank charter, provides a full range of banking services, and has full trust powers. The Bank also provides wealth management services. As an Illinois state‑chartered financial institution that is not a member of the Federal Reserve System (the "FRB"), the Bank is subject to regulation by the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation ("FDIC"). The Company is regulated by the FRB.

The Bank is a participant in the Small Business Administration ("SBA") and the United States Department of Agriculture ("USDA") (collectively referred to as "U.S. government guaranteed loans") lending programs and originates U.S. government guaranteed loans.

The Bank engages in short‑term direct financing lease contracts through BFG Corporation, doing business as Byline Financial Group ("BFG"), a wholly‑owned subsidiary of the Bank. BFG is located in Bannockburn, Illinois with sales offices in Illinois, and sales representatives in Illinois, Florida, Michigan, New Jersey and New York.

Subsequent events—No subsequent events were identified that would have required a change to the consolidated financial statements or disclosure in the notes to the consolidated financial statements. In the first quarter of 2024, we announced plans to consolidate two branches during the second quarter of 2024. We expect these consolidations to generate approximately $1.1 million of annual cost savings and anticipate charges of $1.5 million in the first half of 2024.

Basis of financial statement presentation and consolidation—The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP") and rules and regulations of the Securities and Exchange Commission ("SEC"). In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purposes of issuing trust preferred securities and related trust common securities. Refer to Note 14—Subordinated Notes and Junior Subordinated Debentures, for additional discussion.

Dollars within footnote tables disclosed within the consolidated financial statements are presented in thousands, except share and per share data. Operating results include the years ended December 31, 2023, 2022 and 2021.

Use of estimates—In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Statements of Financial Condition and certain revenues and expenses for the periods included in the Consolidated Statements of Operations and the accompanying notes. Actual results could differ from those estimates.

Estimates that are particularly susceptible to significant changes in the near term relate to allowance for credit losses, fair value measurements for assets and liabilities, the valuation of assets and liabilities acquired in business combinations, and other intangible assets and goodwill.

Business combinations—The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805"). The Company recognizes the fair value of the assets acquired and liabilities assumed as of the date of acquisition, with any excess of the fair value of consideration provided over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Transaction costs are immediately expensed as applicable. The results of operations of the acquired business are included in the Consolidated Statements of Operations from the effective date of the acquisition, which is the date control is obtained.

The acquiring company retains the right to make appropriate adjustments to the assets and liabilities of the acquired entity for information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period ends as of the earlier of (a) one year from the acquisition date or (b) the date when the acquirer receives the information necessary to complete the business combination accounting.

Cash and cash equivalents—Cash and cash equivalents have original maturities of three months or less. The Company holds cash and cash equivalents on deposit with other banks and financial institutions in amounts that periodically exceed the federal deposit insurance limit. The Company evaluates the credit quality of these banks and financial institutions to mitigate its credit risk and has not experienced any losses in such accounts. Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.

Note 1—Business and Summary of Significant Accounting Policies (continued)

Banks are required by the Federal Reserve Act to maintain reserves against deposits. Reserves are held either in the form of vault cash or balances maintained with the FRB and are based on the average daily deposit balances and statutory reserve ratios prescribed by the type of deposit account. In March 2020, the FRB adopted a rule to amend its reserve regulation which included lowering the reserve requirement to zero percent. As a result, at December 31, 2023 and 2022, there was no reserve balance required to be maintained at the FRB.

Equity and other securities—Equity and other securities have no stated maturities and may be sold in response to the same environmental factors as securities available for sale. Equity and other securities are recorded at fair value with changes in fair value included in earnings.

Securities—Securities are classified as available‑for‑sale if the instrument may be sold in response to such factors including changes in market interest rates and related changes in prepayment risk, needs for liquidity, changes in the availability of and the yield on alternative instruments, and changes in funding sources and terms. Gains or losses on the sales of available‑for‑sale securities are recorded on the trade date and determined using the specific‑identification method. Unrealized holding gains or losses, net of tax, on available‑for‑sale securities are carried as accumulated other comprehensive income (loss) within stockholders’ equity until realized. Securities are classified as held‑to‑maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. The recognition of interest income on a debt security is discontinued when any principal or interest payment becomes 90 days past due, at which time the debt security is placed on non-accrual status. All accrued and unpaid interest on such debt security is then reversed. Accrued interest receivable is excluded from the estimate of expected credit losses.

Fair values of securities are generally based on quoted market prices for the same or similar instruments. Refer to Note 17—Fair Value Measurement for additional discussion on the determination of fair values. Interest income includes the amortization of purchase premiums and discounts, which are recognized using the effective interest method over the terms of the securities.

Allowance for credit losses - securities—Management measures expected credit losses on held-to-maturity debt securities on a collective basis by security type. The Company’s held-to-maturity portfolio contains municipal bonds that are typically rated by major rating agencies as ‘Aa’ or better. The Company uses industry historical credit loss information adjusted for current conditions to establish an allowance for credit losses. For securities available-for-sale in a loss position, the Company evaluates, on a security-by-security basis, whether the decline in fair value below amortized cost resulted from a credit loss or other factors, and if the loss is attributable to credit loss, the loss is recognized through an allowance for credit losses on securities. In assessing credit loss, the Company considers, among other things: the extent to which fair value is less than the amortized cost basis, adverse conditions specific to the security or industry, historical payment patterns, the likelihood of future payments and changes to the rating of a security by a rating agency. The full amount of the loss will be charged to earnings if the Company intends to sell an impaired security, or it is more likely than not that the Company would be required to sell an impaired security before recovering its amortized cost basis. There was no recorded allowance for credit losses on securities as of December 31, 2023 or 2022. Changes in the allowance for credit losses would be recorded as a provision for credit losses. Losses would be charged against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security. Prior to the adoption of ASU 2016-13, declines in the fair value of securities below their cost deemed to be other‑than‑temporary impairment ("OTTI") were reflected in operations as realized losses. Refer to Note 4—Securities for additional information.

Restricted stock—The Company owns stock of the Federal Home Loan Bank of Chicago ("FHLB"). No ready market exists for this stock, and it has no quoted market value. As a member of the FHLB system, the Bank is required to maintain an investment in FHLB stock. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, the Company owns stock of Bankers Bank, which is redeemable at par and carried at cost.

Restricted stock is generally viewed as a long‑term investment. Accordingly, when evaluating for impairment, its value is determined based on the ultimate recoverability of the par value rather than by recognizing declines in value. The Company did not recognize impairment of its restricted stock as a result of its impairment analyses for the years ended December 31, 2023, 2022 and 2021.

Note 1—Business and Summary of Significant Accounting Policies (continued)

Loans held for sale—Loans that management has the intent and ability to sell are designated as held for sale. U.S. government guaranteed loans and mortgage loans originated are carried at either amortized cost or estimated fair value. The Company determines whether to account for loans at fair value or amortized cost at origination. The loans accounted for at fair value remain at fair value after the determination. The loans accounted for at amortized cost are carried at the lower of cost or fair value, valued on a loan by loan basis. Decreases in fair value, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on sales of U.S. government guaranteed loans are recognized based on the difference between the net sales proceeds and the carrying value of the sold portion of the loan, less the fair value of the servicing asset recognized, and are reflected as operating activities in the Consolidated Statements of Cash Flows. The difference between the initial carrying balance of the retained portion of the loan and the relative fair value of the sold portion is recorded as a discount to the retained portion of the loan, establishing a new carrying balance. The recorded discount is accreted to earnings on a level yield basis. U.S. government guaranteed loans are generally sold with servicing retained. Loans sold that have not yet settled as of year-end are classified as due-from counterparty on the Consolidated Statements of Financial Condition.

Originated loans—Originated loans are stated at the amount of unpaid principal outstanding, net of purchase premiums and discounts, and any deferred fees or costs. Net deferred fees, costs, discounts and premiums are recognized as yield adjustments over the contractual life of the loan. Interest on loans is calculated daily based on the principal amount outstanding. Additionally, once an acquired non-credit-deteriorated loan or purchases credit deteriorated ("PCD") loan is performing and reaches its contractual maturity date, it is re-underwritten, and if renewed, it is classified as an originated loan.

Prior to the adoption of ASC 326, originated loans were classified as impaired when, based on current information and events, it was probable that the Company would be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement. The carrying value of impaired loans was based on the present value of expected future cash flows (discounted at each loan’s effective interest rate) or, for collateral dependent loans, at the fair value of the collateral less estimated selling costs. If the measurement of each impaired loan’s value was less than the recorded investment in the loan, impairment was recognized. Refer to Note 2—Recently Issued Accounting Pronouncements for additional information and refer to Note 5—Loans and Lease Receivables and Allowance for Credit Losses for disclosure of individually evaluated and collateral-dependent loans previously considered impaired.

Accrual of interest on loans is discontinued when the loan is 90 days past due or when, in management’s opinion, the borrower may be unable to make payments as they become due. When the accrual of interest is discontinued, all unpaid accrued interest is reversed through interest income and excluded from the estimate of credit losses. Payments received during the time a loan is on non‑accrual status are applied to principal. Interest income is not recognized until the loan is returned to accrual status or after the principal balance is paid in full. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured as evidenced by agreed upon performance for a period of not less than six months.

Modifications for financial difficulty—Modified loans and leases are reviewed to determine if the modification was done for borrowers experiencing financial difficulty. The concessions may be granted in various forms, including a reduction in the stated interest rate, reduction in the loan balance or accrued interest, extension of the maturity date, or a combination of these.

The adoption of ASU 2022-02 on January 1, 2023 eliminated the recognition and measurement of trouble debt restructuring (TDRs) and enhanced the disclosures for modifications to loans related to borrowers experiencing financial difficulties.

Direct finance leases—The Company engages in leasing for small‑ticket equipment, software, machinery and ancillary supplies and services to customers under leases that qualify as direct financing leases for financial reporting. Certain leases qualify as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values of the related equipment, are recorded as lease receivables when the lease is signed and funded, and the lease property is delivered to the customer. The excess of the minimum lease payments and residual values over the amount financed is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease based on the effective yield interest method. Residual value is the estimated fair value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s residual values are estimates for reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review of the residual value results in other‑than‑temporary impairment, the impairment is recognized in current period earnings. An upward adjustment of the estimated residual value is not recorded.

Note 1—Business and Summary of Significant Accounting Policies (continued)

The policies for delinquency and non‑accrual for direct finance leases are materially consistent with those described for all classes of loan receivables. The Company defers and amortizes certain initial direct costs over the contractual term of the lease as an adjustment to the yield. The unamortized direct costs are recorded as a reduction of unearned lease income.

Purchased Credit Deteriorated Loans—The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through credit loss expense.

Acquired non‑credit-deteriorated loans and leases—Acquired non‑credit-deteriorated loans and leases are accounted for under ASC Subtopic 310‑20, Receivables Nonrefundable Fees and Other Costs ("ASC 310‑20"). The difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loan. While credit discounts are included in the determination of the fair value from non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the consolidated statement of operations. Any subsequent deterioration (improvement) in credit quality is recognized by recording a provision (recapture) for credit losses.

Allowance for credit losses - loans and leases—The allowance for credit losses - loans and leases is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes uncollectibility of loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Cash flow models calculate an expected life-of-loan loss percentage for each loan category by calculating the probability of default, based on the migration of loans from performing to non-performing and a loss given default, based on net lifetime losses incurred. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The allowance for credit losses is measured on a collective (segment) basis when similar risk characteristics exist. Segments generally reflect underlying collateral categories as well taking into consideration the risk ratings and unguaranteed balance of small business loans. Management considers various economic scenarios in its forecast when evaluating economic indicators and weights the various scenario calculation results to arrive at the forecast that most reflects management’s expectation of future conditions. After a one-year forecast period, a one-year reversion period adjusts loss experience to the historical average on a straight-line basis.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, adjusted for undiscounted selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management does not adjust the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Note 1—Business and Summary of Significant Accounting Policies (continued)

The Company also maintains an allowance for credit losses on off-balance sheet credit exposures for unfunded loan commitments. This allowance is reflected as a component of other liabilities which represents management’s current estimate of expected losses in the unfunded loan commitments. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life based on management’s consideration of past events, current conditions and reasonable and supportable economic forecasts. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for credit losses on outstanding loans.

Results for the full years and periods ended December 31, 2023 and 2022 are presented under the current expected credit losses ("CECL") methodology while activity for the year ended December 31, 2021 was reported under the incurred loss methodology. Refer to Note 5—Loans and Lease Receivables and Allowance for Credit Losses, for further discussion.

Servicing assets—Servicing assets are recognized separately when they are acquired through sales of loans. When loans are sold with servicing rights retained, servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.

Sales of U.S. government guaranteed loans are executed on a servicing retained basis. The standard SBA loan sale agreement is structured to provide the Company with a servicing spread paid from a portion of the interest cash flow of the loan. SBA regulations require the Company to retain a portion of the cash flow from the interest payments received for a sold loan. The USDA loan sale agreements are not standardized with respect to servicing.

Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material.

The Company has elected the fair value measurement method and measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur and are recorded as loan servicing asset revaluation on the Consolidated Statements of Operations. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in the prepayment speed and discount rate assumptions have the most significant impact on the fair value of servicing rights.

Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material.

Concentrations of credit risk—Most of the Company’s business activity is concentrated with customers located within its principal market areas, with the exception of government guaranteed loans and leasing activities. The Company originates commercial real estate, construction, land development and other land, commercial and industrial, residential real estate, installment and other loans, and leases. Generally, loans are secured by accounts receivable, inventory, deposit accounts, personal property or real estate.

Rights to collateral vary and are legally documented to the extent practicable. The Company has a concentration in commercial real estate loans and the ability of borrowers to honor these and other contracts is dependent upon the real estate and general economic conditions within their geographic market.

Transfers of financial assets—Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. The Company has assessed that partial sales of financial assets meet the definition of participating interest. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company and the transferee obtains the right (free of conditions that constrain it from taking advantage of that right beyond a trivial benefit) to pledge or exchange the transferred assets. Gains or losses are recognized in the period of sale upon derecognition of the asset.

Note 1—Business and Summary of Significant Accounting Policies (continued)

Premises and equipment—Premises and equipment acquired through a business combination are initially stated at the acquisition date fair value less accumulated depreciation. All other premises and equipment are stated at cost less accumulated depreciation. Depreciation on premises and equipment is recognized on a straight‑line basis over their estimated useful lives ranging from three to 39 years. Land is also carried at its fair value following a business combination and is not subject to depreciation. Leasehold improvements are amortized over the shorter of the life of the related asset or expected term of the underlying lease. Gains and losses on the dispositions of premises and equipment are included in non‑interest income. Expenditures for new premises, equipment and major betterments are capitalized. Normal costs of maintenance and repairs are expensed as incurred.

Long‑lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amounts may be not recoverable. Impairment exists when the undiscounted expected future cash flows of a long‑lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in non‑interest expense.

Assets held for sale—Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets. The properties are being actively marketed and transferred to assets held for sale based at the lower of its carrying value or its fair value, less estimated costs to sell. Assets held for sale are evaluated periodically for impairment, with any impairment losses recorded in non-interest expense.

Other real estate owned—Other real estate owned ("OREO") includes real estate assets that have been acquired through, or in lieu of, loan foreclosure or repossession and are to be sold. OREO assets are initially recorded at fair value, less estimated costs to sell, of the collateral of the loan, on the date of foreclosure or repossession, establishing a new cost basis. Adjustments that reduce loan balances to fair value at the time of foreclosure or repossession are recognized as charge‑offs in the allowance for credit losses - loans and leases. After foreclosure or repossession, management periodically obtains new valuations, and real estate or other assets may be adjusted to a lower carrying amount, determined by the fair value of the asset, less estimated costs to sell. Any subsequent write‑downs are recorded as a decrease in the asset and charged against other real estate owned valuation adjustments. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in non‑interest expense. Any losses on the sales of other real estate owned properties are recognized immediately. OREO is recorded net of participating interests sold.

Goodwill—The excess of the cost of our recapitalization and acquisitions over the fair value of the net assets acquired, including core deposit intangible, consists of goodwill. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles—Goodwill and Other ("ASC 350").

Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. All of the Company’s goodwill is allocated to the Bank, which is the Company’s only applicable reporting unit for the purposes of testing goodwill for impairment. The Company has selected November 30 as the date it performs the annual goodwill impairment test. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists. The Company performs impairment testing using a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, a material change in the estimated value of the Company based on current market multiples common for community banks of similar size and operations; a significant change in our stock price or market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. If the assessment of qualitative factors indicates that it is not more likely than not that impairment exists, an impairment loss is recognized if the carrying amount of the reporting unit goodwill exceeds its fair value.

Based on an annual analysis completed as of November 30, 2023, 2022 and 2021, the Company did not recognize impairment losses during the years ended December 31, 2023, 2022, and 2021.

Other intangible assets—Other intangible assets primarily consist of core deposit intangible assets. Other intangible assets with definite useful lives are amortized to their estimated residual values over their respective estimated useful lives and are also reviewed periodically for impairment. Amortization of other intangible assets is included in other non‑interest expense. Core deposit intangibles were recognized apart from goodwill based on market valuations. Core deposit intangibles are amortized over an approximate ten year period. In valuing core deposit intangibles, the Company considered variables such as deposit servicing costs, attrition rates and market discount rates. If the estimated fair value is less than the carrying value, the core deposit intangible would be reduced to such value and the impairment recognized as non‑interest expense.

Customer relationship intangibles—Customer relationship intangibles relate to the value of existing trust and wealth management relationships and are amortized over 12 years. In valuing the relationship intangibles, the Company considered variables such as attrition, investment appreciation, and discount rates.

Note 1—Business and Summary of Significant Accounting Policies (continued)

Bank‑owned life insurance—The Company holds life insurance policies that provide protection against the adverse financial effects that could result from the death of current and former employees and provide tax deferred income. Although the lives of individual current or former management‑level employees are insured, the Company is the owner and is split beneficiary on certain policies. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. Split‑dollar life insurance is recorded as an asset at cash surrender value. Increases in the cash value of these policies, as well as insurance proceeds received, are recorded in other non‑interest income and are not subject to income tax.

Income taxes—The Company uses the asset and liability method to account for income taxes. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The Company’s annual tax rate is based on its income, statutory tax rates and available tax planning opportunities. Deferred tax assets and liabilities are adjusted through the tax provision for the effects of changes in tax laws and rates on the date of enactment. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss carryforwards. The Company reviews its deferred tax positions periodically and adjusts the balances as new information becomes available. The Company evaluates the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. The Company uses short and long‑range business forecasts to provide additional information for its evaluation of the recoverability of deferred tax assets. As of December 31, 2023 and 2022, the Company had no material uncertain tax positions. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense. However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties. The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense.

A deferred tax valuation allowance is established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some of the deferred tax asset will not be realized. At December 31, 2023 and 2022, the Company did not record a deferred tax valuation allowance. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Derivative financial instruments and hedging activities—The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the future cash flows of certain assets. ASC Topic 815, Derivatives and Hedging ("ASC 815"), establishes accounting and reporting standards requiring that every derivative instrument be recorded in the Consolidated Statements of Financial Condition as either an asset or liability measured at its fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. On the date the derivative contract is entered into, the Company designates the derivative as a fair value hedge, a cash flow hedge, or a non‑designated derivative.

Fair value hedges are accounted for by recording the changes in the fair value of the derivative instrument and the changes in the fair value related to the risk being hedged of the hedged asset or liability on the Consolidated Statements of Financial Condition with corresponding offsets recorded in the Consolidated Statements of Operations. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as an asset or liability.

Cash flow hedges are accounted for by recording the changes in the fair value of the derivative instrument in other comprehensive income (loss) and are recognized in the Consolidated Statements of Operations when the hedged item affects earnings.

Derivative instruments that are not designated as hedges according to accounting guidance are reported in the Consolidated Statements of Financial Condition at fair value and the changes in fair value are recognized as non‑interest income during the period of the change.

The Company formally documents the relationship between a derivative instrument and a hedged asset or liability, as well as its risk management objective and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

Note 1—Business and Summary of Significant Accounting Policies (continued)

Comprehensive income—Recognized revenue, expenses, gains and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available‑for‑sale securities and adjustments related to cash flow hedges, are reported on a cumulative basis, net of tax effects, as a separate component of equity on the Consolidated Statements of Financial Condition. Changes in such items, along with net income, are components of comprehensive income.

Advertising expense—Advertising costs are expensed as incurred.

Off‑balance sheet instruments—In the ordinary course of business, the Company has entered into off‑balance sheet arrangements consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded in the consolidated financial statements when they are funded or when the related fees are incurred or received.

Segment reporting—The Company has one reportable segment. The Company’s chief operating decision makers evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segment disclosures are not required.

Loss contingencies—Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the Consolidated Financial Statements for the years ended December 31, 2023, 2022, and 2021.

Share‑based compensation—The Company accounts for share‑based compensation in accordance with ASC Topic 718, Compensation—Stock Compensation ("ASC 718"), which requires compensation cost relating to share‑based compensation transactions be recognized in the Consolidated Statements of Operations, based generally upon the grant‑date fair value of the share‑based compensation granted by the Company. Share‑based awards may have service, market or performance conditions. Refer to Note 18—Share-Based Compensation for additional information.

Earnings per share—Earnings per common share ("EPS") is computed under the two-class method. Pursuant to the two-class method, non-vested stock-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Application of the two-class method resulted in the equivalent earnings per share to the treasury method. Basic earnings per common share is computed by dividing net earnings allocated to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation and warrants for common stock using the treasury stock method.

Dividend restrictions—Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to stockholders.

Fair value of assets and liabilities—Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, including respective accrued interest balances, in an orderly transaction between market participants at the measurement date. The Company determines fair value based upon quoted prices when available or through the use of alternative approaches, such as matrix or model pricing, when market quotes are not readily accessible or available. The valuation techniques used are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Changes in assumptions or in market conditions could significantly affect these estimates.

Reclassifications—Some items in prior years consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years’ net income or stockholders’ equity.
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Accounting Pronouncements Recently Issued
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Accounting Pronouncements Recently Issued

Note 2—Accounting Pronouncements Recently Issued

The following reflect recent accounting pronouncements that were adopted and are pending adoption by the Company.

Adopted Accounting Pronouncements

Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures (Topic 326) – In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-02, Credit Losses – Troubled Debt Restructurings and Vintage Disclosures. The Company adopted this update effective March 31, 2023. This update eliminates the recognition and measurement guidance for troubled debt restructurings ("TDRs") by creditors in ASC 310-40. The update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments in this ASU require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases in the existing vintage disclosures. Refer to Note 5—Loan and Lease Receivables and Allowance for Credit Losses for additional details regarding these disclosures.

Issued Accounting Pronouncements Pending Adoption

Fair Value Measurement (Topic 820) – In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The guidance in the ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account on the equity security and, therefore, is not considered in measuring fair value. The ASU also requires additional disclosures about the restriction. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Business Combinations (Topic 805) – In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture ("JV") Formations: Recognition and Initial Measurement. The guidance requires newly-formed JVs to apply a new basis of accounting to all of its contributed net assets, which results in the JV initially measuring its contributed net assets under ASC 805-20, Business Combinations. The new guidance would be applied prospectively and is effective for all newly-formed joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Segment Reporting – Improvements to Reportable Segment Disclosures (Topic 280) – In November 2023, the FASB issued ASU 2023-07 to enhance disclosures about significant segment expenses for public entities reporting segment information under Topic 280. It requires that a public entity disclose, on an annual and interim basis, significant expense categories for each reportable segment. Significant expense categories are derived from expenses that are 1) regularly reported to an entity’s chief operating decision-maker ("CODM"), and 2) included in a segment’s reported measure of profit or loss. The disclosures should include an amount for "other segment items," reflecting the difference between 1) segment revenue less significant segment expenses, and 2) the reportable segment’s profit or loss measures. It requires that a public entity disclose the title and position of the CODM and how the CODM uses the reported measure of profit or loss to assess segment performance and to allocate resources. Further it clarifies that entities with a single reportable segment must disclose both new and existing segment reporting requirements. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities must adopt the guidance on a retrospective basis. The Company is evaluating the internal control and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Income Taxes – Improvements to Income Tax Disclosures (Topic 740) – In December 2023, the FASB issued ASU 2023-09 to provide additional transparency into an entity’s income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The standard requires that public business entities disclose, on an annual basis, specific categories in the rate reconciliation and additional information for reconciling items meeting a certain quantitative threshold. The amendments also require that entities disclose on an annual basis: 1) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and 2) the income taxes paid (net of refunds received) disaggregated by individual jurisdictions exceeding 5% of total income taxes paid (net of refunds received). The amendments are effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.
v3.24.0.1
Acquisition of a Business
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Acquisition of a Business

Note 3—Acquisition of a Business

On July 1, 2023, the Company acquired all of the outstanding common stock of Inland Bancorp, Inc. ("Inland") and its subsidiaries pursuant to an Agreement and Plan of Merger, dated as of November 30, 2022 (the "Merger Agreement"). Inland was merged with and into Byline. As a result of the merger, Inland’s wholly owned subsidiary bank, Inland Bank and Trust, was merged with and into Byline Bank, with Byline Bank as the surviving bank. The acquisition improves the Company’s footprint in the Chicagoland market, diversifies its commercial banking business, and strengthens the core deposit base.

In a related but separate transaction, on March 31, 2023, Byline entered into a side letter agreement with the majority shareholder of Inland in which Byline agreed to purchase 2,408,992 shares of Inland common stock. The purchase price was calculated based on the terms of the Merger Agreement. The transaction was completed on June 30, 2023, which resulted in the payment of cash in the amount of $9.9 million.

At the effective time of the merger (the "Effective Time"), each share of Inland’s common stock was converted into the right to receive: (1) 0.19 shares of Byline’s common stock, par value $0.01 per share, and (2) a cash payment in the amount of $0.68 per share, with cash paid in lieu of any fractional shares. The per share cash consideration was based on the total $21.2 million divided by the outstanding shares of Inland common stock. Based on the closing price of shares of the Company’s common stock of $18.09, as reported by the New York Stock Exchange, and 5,932,323 shares of common stock issued with respect to the outstanding shares of Inland common stock, the stock consideration was valued at $107.3 million. Options to acquire 288,200 shares of Inland common stock that were outstanding at the Effective Time were canceled, at the option holders' election, in exchange for a cash payment in accordance with the Merger Agreement of $424,000, to be paid after the closing date. In addition, the 2,408,992 shares of Inland common stock purchased on June 30, 2023 were canceled as of the effective time of the transaction. The value of the total merger consideration at closing was $138.9 million. Stock issuance costs were $299,000.

The transaction resulted in goodwill of $33.4 million, which is nondeductible for tax purposes, as this acquisition was a nontaxable transaction. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired and reflects related synergies expected from the combined operations. Merger-related expenses, including core system conversion expenses of $3.5 million, acquisition advisory expenses of $2.5 million, salaries and employee benefits of $2.5 million, and other non-interest expenses of $688,000 related to the Inland acquisition are reflected in non-interest expense on the Consolidated Statements of Operations for the year ended December 31, 2023.

The acquisition of Inland was accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed, and consideration exchanged were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values become available.

Note 3—Acquisition of a Business (continued)

The following table presents a summary of the preliminary estimates of fair values of assets acquired and liabilities assumed as of the acquisition date:

Assets

 

 

 

Cash and cash equivalents

 

$

39,731

 

Securities available-for-sale

 

 

239,602

 

Restricted stock

 

 

3,058

 

Loans

 

 

808,000

 

Allowance for credit losses

 

 

(10,596

)

Premises and equipment

 

 

11,307

 

Operating lease right-of-use asset

 

 

3,813

 

Other intangible assets

 

 

17,250

 

Bank-owned life insurance

 

 

12,455

 

Deferred tax assets, net

 

 

14,848

 

Other assets

 

 

21,023

 

Total assets acquired

 

 

1,160,491

 

Liabilities

 

 

 

Deposits

 

 

964,491

 

Federal Home Loan Bank advances

 

 

40,000

 

Securities sold under agreements to repurchase

 

 

455

 

Junior subordinated debentures

 

 

32,661

 

Operating lease liability

 

 

4,034

 

Accrued expenses and other liabilities

 

 

13,288

 

Total liabilities assumed

 

 

1,054,929

 

Net assets acquired

 

$

105,562

 

Consideration paid

 

 

 

Common stock (5,932,323 shares issued at $18.09 per share)

 

 

107,017

 

Cash paid

 

 

31,897

 

Total consideration paid

 

 

138,914

 

Goodwill

 

$

33,352

 

 

Note 3—Acquisition of a Business (continued)

The following table presents the fair value and gross contractual amounts receivable of acquired non-credit-deteriorated loans from the Inland acquisition, and their respective expected contractual cash flows as of the acquisition date:

 

Fair value

 

$

582,831

 

Gross contractual amounts receivable

 

 

699,918

 

Estimate of contractual cash flows not expected to be collected(1)

 

 

4,239

 

Estimate of contractual cash flows expected to be collected

 

 

695,679

 

(1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default.

The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2023 and 2022, as if the acquisition had occurred on January 1, 2022. The pro forma results combine the historical results of Inland into the Company’s Consolidated Statements of Operations, including the impact of certain acquisition accounting adjustments, which includes loan discount accretion, intangible assets amortization, deposit premium accretion, fixed assets amortization, and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Recognized acquisition-related expenses and other adjustments related to the timing of expenses, are included in net income in the following table:

 

Year Ended

 

 

December 31,

 

 

2023

 

 

2022

 

Total revenues (net interest income and non-interest income)

$

411,252

 

 

$

391,621

 

Net income

$

120,246

 

 

$

97,724

 

Earnings per share—basic

$

2.80

 

 

$

2.28

 

Earnings per share—diluted

$

2.77

 

 

$

2.25

 

The operating results of the Company include the operating results generated by the acquired assets and assumed liabilities of Inland for the period from July 1, 2023 through December 31, 2023. Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as Inland was merged into the Company and separate financial information is not readily available.
v3.24.0.1
Securities
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 4—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2023 and 2022 and the corresponding amounts of gross unrealized gains and losses:

2023

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

116,398

 

 

$

61

 

 

$

(1,025

)

 

$

115,434

 

U.S. Government agencies

 

 

147,062

 

 

 

37

 

 

 

(16,404

)

 

 

130,695

 

Obligations of states, municipalities, and political
   subdivisions

 

 

86,022

 

 

 

396

 

 

 

(4,143

)

 

 

82,275

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

786,970

 

 

 

4,247

 

 

 

(95,414

)

 

 

695,803

 

Non-agency

 

 

122,359

 

 

 

—

 

 

 

(22,099

)

 

 

100,260

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

181,452

 

 

 

—

 

 

 

(34,248

)

 

 

147,204

 

Corporate securities

 

 

40,681

 

 

 

—

 

 

 

(4,510

)

 

 

36,171

 

Asset-backed securities

 

 

35,857

 

 

 

2

 

 

 

(1,221

)

 

 

34,638

 

Total

 

$

1,516,801

 

 

$

4,743

 

 

$

(179,064

)

 

$

1,342,480

 

 

2023

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

$

1,157

 

 

$

—

 

 

$

(8

)

 

$

1,149

 

Total

 

$

1,157

 

 

$

—

 

 

$

(8

)

 

$

1,149

 

 

2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

42,430

 

 

$

2

 

 

$

(1,709

)

 

$

40,723

 

U.S. Government agencies

 

 

150,524

 

 

 

116

 

 

 

(20,276

)

 

 

130,364

 

Obligations of states, municipalities, and political
   subdivisions

 

 

68,019

 

 

 

9

 

 

 

(6,152

)

 

 

61,876

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

707,157

 

 

 

—

 

 

 

(111,361

)

 

 

595,796

 

Non-agency

 

 

130,654

 

 

 

—

 

 

 

(24,405

)

 

 

106,249

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

191,172

 

 

 

—

 

 

 

(34,142

)

 

 

157,030

 

Corporate securities

 

 

45,302

 

 

 

—

 

 

 

(3,866

)

 

 

41,436

 

Asset-backed securities

 

 

43,085

 

 

 

—

 

 

 

(2,128

)

 

 

40,957

 

Total

 

$

1,378,343

 

 

$

127

 

 

$

(204,039

)

 

$

1,174,431

 

 

2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

$

2,705

 

 

$

—

 

 

$

(33

)

 

$

2,672

 

Total

 

$

2,705

 

 

$

—

 

 

$

(33

)

 

$

2,672

 

The Company did not classify securities as trading during 2023 and 2022

Note 4—Securities (continued)

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022 are summarized as follows:

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

2023

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

7

 

 

$

5,018

 

 

$

(4

)

 

$

31,843

 

 

$

(1,021

)

 

$

36,861

 

 

$

(1,025

)

U.S. Government agencies

 

 

18

 

 

 

535

 

 

 

(9

)

 

 

119,109

 

 

 

(16,395

)

 

 

119,644

 

 

 

(16,404

)

Obligations of states, municipalities and
   political subdivisions

 

 

61

 

 

 

12,267

 

 

 

(156

)

 

 

49,617

 

 

 

(3,987

)

 

 

61,884

 

 

 

(4,143

)

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

102

 

 

 

8,332

 

 

 

(49

)

 

 

543,648

 

 

 

(95,365

)

 

 

551,980

 

 

 

(95,414

)

Non-agency

 

 

20

 

 

 

636

 

 

 

—

 

 

 

99,624

 

 

 

(22,099

)

 

 

100,260

 

 

 

(22,099

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

48

 

 

 

6,765

 

 

 

(1,517

)

 

 

140,439

 

 

 

(32,731

)

 

 

147,204

 

 

 

(34,248

)

Corporate securities

 

 

21

 

 

 

—

 

 

 

—

 

 

 

36,171

 

 

 

(4,510

)

 

 

36,171

 

 

 

(4,510

)

Asset-backed securities

 

 

6

 

 

 

—

 

 

 

—

 

 

 

25,653

 

 

 

(1,221

)

 

 

25,653

 

 

 

(1,221

)

Total

 

 

283

 

 

$

33,553

 

 

$

(1,735

)

 

$

1,046,104

 

 

$

(177,329

)

 

$

1,079,657

 

 

$

(179,064

)

Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities and
   political subdivisions

 

 

2

 

 

$

—

 

 

$

—

 

 

$

1,149

 

 

$

(8

)

 

$

1,149

 

 

$

(8

)

Total

 

 

2

 

 

$

—

 

 

$

—

 

 

$

1,149

 

 

$

(8

)

 

$

1,149

 

 

$

(8

)

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

2022

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

6

 

 

$

21,720

 

 

$

(1,078

)

 

$

9,339

 

 

$

(631

)

 

$

31,059

 

 

$

(1,709

)

U.S. Government agencies

 

 

17

 

 

 

44,508

 

 

 

(4,782

)

 

 

70,609

 

 

 

(15,494

)

 

 

115,117

 

 

 

(20,276

)

Obligations of states, municipalities and
   political subdivisions

 

 

58

 

 

 

50,216

 

 

 

(3,858

)

 

 

7,185

 

 

 

(2,294

)

 

 

57,401

 

 

 

(6,152

)

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

101

 

 

 

117,598

 

 

 

(11,045

)

 

 

478,198

 

 

 

(100,316

)

 

 

595,796

 

 

 

(111,361

)

Non-agency

 

 

19

 

 

 

35,486

 

 

 

(7,569

)

 

 

70,763

 

 

 

(16,836

)

 

 

106,249

 

 

 

(24,405

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

47

 

 

 

76,193

 

 

 

(11,840

)

 

 

74,315

 

 

 

(22,302

)

 

 

150,508

 

 

 

(34,142

)

Corporate securities

 

 

24

 

 

 

37,130

 

 

 

(3,128

)

 

 

4,306

 

 

 

(738

)

 

 

41,436

 

 

 

(3,866

)

Asset-backed securities

 

 

8

 

 

 

25,455

 

 

 

(503

)

 

 

15,502

 

 

 

(1,625

)

 

 

40,957

 

 

 

(2,128

)

Total

 

 

280

 

 

$

408,306

 

 

$

(43,803

)

 

$

730,217

 

 

$

(160,236

)

 

$

1,138,523

 

 

$

(204,039

)

Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities and
   political subdivisions

 

 

4

 

 

$

2,672

 

 

$

(33

)

 

$

—

 

 

$

—

 

 

$

2,672

 

 

$

(33

)

Total

 

 

4

 

 

$

2,672

 

 

$

(33

)

 

$

—

 

 

$

—

 

 

$

2,672

 

 

$

(33

)

 

Note 4—Securities (continued)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had unrealized losses for potential credit losses and determined there were none. There were 283 securities available-for-sale with unrealized losses at December 31, 2023, compared to 280 at December 31, 2022. There were two securities held-to-maturity with unrealized losses at December 31, 2023 and four at December 31, 2022. There was no allowance for credit losses for held-to-maturity debt securities at December 31, 2023 or December 31, 2022. The evaluation for potential credit losses is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing payment performance of the securities.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security types. The Company’s held-to-maturity portfolio contains municipal bonds that are typically rated by major rating agencies as ‘Aa’ or better. The Company uses industry historical credit loss information adjusted for current conditions to establish an allowance for credit losses. Accrued interest receivable on securities available-for-sale and held-to-maturity totaled $4.5 million and $3.9 million at December 31, 2023 and December 31, 2022, respectively, and are excluded from the estimate of credit losses.

The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2023, 2022, and 2021 are listed below:

 

 

2023

 

 

2022

 

 

2021

 

Proceeds

 

$

163,649

 

 

$

23,293

 

 

$

203,791

 

Gross gains

 

 

—

 

 

 

100

 

 

 

2,830

 

Gross losses

 

 

—

 

 

 

50

 

 

 

1,395

 

There were $163.6 million of sales of acquired Inland securities during the year ended December 31, 2023. The sales did not result in gains or losses given their close proximity to the acquisition date.

Securities posted and pledged as collateral at December 31, 2023 and 2022 had carrying amounts of $464.5 million and $270.6 million, respectively. At December 31, 2023 and 2022, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $390.3 million and $223.5 million, respectively, and for customer repurchase agreements of $47.8 million and $23.8 million, respectively. At December 31, 2023, and 2022 there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At December 31, 2023 and 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.

At December 31, 2023, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

Amortized
Cost

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

Due in one year or less

 

$

87,034

 

 

$

86,730

 

Due from one to five years

 

 

122,749

 

 

 

117,315

 

Due from five to ten years

 

 

171,812

 

 

 

154,829

 

Due after ten years

 

 

44,425

 

 

 

40,339

 

Mortgage-backed securities

 

 

1,090,781

 

 

 

943,267

 

Total

 

$

1,516,801

 

 

$

1,342,480

 

Held-to-maturity

 

 

 

 

 

 

Due in one year or less

 

$

550

 

 

$

547

 

Due from one to five years

 

 

607

 

 

 

602

 

Total

 

$

1,157

 

 

$

1,149

 
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans and Lease Receivables and Allowance for Credit Losses

Note 5—Loans and Lease Receivables and Allowance for Credit Losses

Loan and Lease Receivables

Outstanding loan and lease receivables as of December 31, 2023 and 2022 were categorized as follows:

 

 

2023

 

 

2022

 

Commercial real estate

 

$

2,317,289

 

 

$

1,905,909

 

Residential real estate

 

 

718,733

 

 

 

489,411

 

Construction, land development, and other land

 

 

528,275

 

 

 

440,016

 

Commercial and industrial

 

 

2,444,405

 

 

 

2,055,213

 

Installment and other

 

 

3,138

 

 

 

1,709

 

Lease financing receivables

 

 

659,686

 

 

 

518,654

 

Total loans and leases

 

 

6,671,526

 

 

 

5,410,912

 

Net unamortized deferred fees and costs

 

 

6,600

 

 

 

5,014

 

Initial direct costs

 

 

6,180

 

 

 

5,332

 

Allowance for credit losses - loans and leases

 

 

(101,686

)

 

 

(81,924

)

Net loans and leases

 

$

6,582,620

 

 

$

5,339,334

 

 

 

 

2023

 

 

2022

 

Lease financing receivables

 

 

 

 

 

 

Net minimum lease payments

 

$

644,507

 

 

$

509,980

 

Unguaranteed residual values

 

 

92,127

 

 

 

54,118

 

Unearned income

 

 

(76,948

)

 

 

(45,444

)

Total lease financing receivables

 

 

659,686

 

 

 

518,654

 

Initial direct costs

 

 

6,180

 

 

 

5,332

 

Lease financial receivables before allowance for
   credits losses - loans and leases

 

$

665,866

 

 

$

523,986

 

Total loans and leases consist of originated loans and leases, PCD loans, and acquired non-credit-deteriorated loans and leases. At December 31, 2023 and 2022, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $93.3 million and $123.2 million, respectively. At December 31, 2023 and 2022, the discount on the unguaranteed portion of the U.S. government guaranteed loans was $26.2 million and $26.7 million, respectively, which are included in total loans and leases. At December 31, 2023 and 2022, installment and other loans included overdraft deposits of $754,000 and $467,000, respectively, which were reclassified as loans. At December 31, 2023 and 2022, loans and loans held for sale pledged as security for borrowings were each $2.2 billion.

The minimum annual lease payments for lease financing receivables as of December 31, 2023 are summarized as follows:

 

 

Minimum Lease
Payments

 

2024

 

$

205,973

 

2025

 

 

183,204

 

2026

 

 

136,621

 

2027

 

 

82,425

 

2028

 

 

32,524

 

Thereafter

 

 

3,760

 

Total

 

$

644,507

 

 

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. PCD loans are loans acquired from a business combination with evidence of more than insignificant credit deterioration and are accounted for under ASC Topic 326. Acquired non-credit-deteriorated loans and leases represent loans and leases acquired from a business combination without more than insignificant evidence of credit deterioration and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of December 31, 2023 and 2022:

2023

 

Originated

 

 

Purchased Credit Deteriorated

 

 

Acquired
Non-Credit-
Deteriorated

 

 

Total

 

Commercial real estate

 

$

1,907,029

 

 

$

137,807

 

 

$

275,476

 

 

$

2,320,312

 

Residential real estate

 

 

465,133

 

 

 

42,510

 

 

 

211,887

 

 

 

719,530

 

Construction, land development, and other land

 

 

415,162

 

 

 

25,331

 

 

 

86,344

 

 

 

526,837

 

Commercial and industrial

 

 

2,311,563

 

 

 

19,460

 

 

 

117,538

 

 

 

2,448,561

 

Installment and other

 

 

2,919

 

 

 

125

 

 

 

156

 

 

 

3,200

 

Lease financing receivables

 

 

665,239

 

 

 

—

 

 

 

627

 

 

 

665,866

 

Total loans and leases

 

$

5,767,045

 

 

$

225,233

 

 

$

692,028

 

 

$

6,684,306

 

 

2022

 

Originated

 

 

Purchased Credit Deteriorated

 

 

Acquired
Non-Credit-
Deteriorated

 

 

Total

 

Commercial real estate

 

$

1,712,152

 

 

$

45,143

 

 

$

152,193

 

 

$

1,909,488

 

Residential real estate

 

 

426,226

 

 

 

32,228

 

 

 

31,508

 

 

 

489,962

 

Construction, land development, and other land

 

 

438,617

 

 

 

372

 

 

 

—

 

 

 

438,989

 

Commercial and industrial

 

 

2,030,616

 

 

 

2,192

 

 

 

24,266

 

 

 

2,057,074

 

Installment and other

 

 

1,410

 

 

 

140

 

 

 

209

 

 

 

1,759

 

Lease financing receivables

 

 

521,689

 

 

 

—

 

 

 

2,297

 

 

 

523,986

 

Total loans and leases

 

$

5,130,710

 

 

$

80,075

 

 

$

210,473

 

 

$

5,421,258

 

PCD loans—The unpaid principal balance and carrying amount of all PCD (formerly acquired impaired) loans are summarized below. The balances do not include an allowance for credit losses of $10.0 million and $1.9 million, at December 31, 2023 and 2022, respectively.

 

 

2023

 

 

2022

 

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

Commercial real estate

 

$

185,007

 

 

$

137,807

 

 

$

85,089

 

 

$

45,143

 

Residential real estate

 

 

88,036

 

 

 

42,510

 

 

 

76,270

 

 

 

32,228

 

Construction, land development, and other land

 

 

32,140

 

 

 

25,331

 

 

 

7,042

 

 

 

372

 

Commercial and industrial

 

 

21,870

 

 

 

19,460

 

 

 

3,902

 

 

 

2,192

 

Installment and other

 

 

789

 

 

 

125

 

 

 

807

 

 

 

140

 

Total purchased credit deteriorated loans

 

$

327,842

 

 

$

225,233

 

 

$

173,110

 

 

$

80,075

 

The following table is a reconciliation of the acquired Inland PCD loans between their purchase price and their par value at the time of acquisition. Refer to Note 3—Acquisition of a Business for further information.

Fair value of loans at acquisition

 

$

214,573

 

Allowance for credit losses - loans and leases, at acquisition

 

 

10,596

 

Non-credit discount/premium at acquisition

 

 

17,909

 

Par value of acquired PCD loans at acquisition

 

$

243,078

 

 

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Acquired non-credit-deteriorated loans and leases—The unpaid principal balance and carrying value for acquired non‑credit-deteriorated loans and leases, excluding an allowance for credit losses of $4.7 million and $5.3 million at December 31, 2023 and 2022, were as follows:

 

 

2023

 

 

2022

 

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

Commercial real estate

 

$

284,819

 

 

$

275,476

 

 

$

155,652

 

 

$

152,193

 

Residential real estate

 

 

227,392

 

 

 

211,887

 

 

 

31,863

 

 

 

31,508

 

Construction, land development, and other land

 

 

87,143

 

 

 

86,344

 

 

 

63

 

 

 

—

 

Commercial and industrial

 

 

123,540

 

 

 

117,538

 

 

 

25,022

 

 

 

24,266

 

Installment and other

 

 

170

 

 

 

156

 

 

 

216

 

 

 

209

 

Lease financing receivables

 

 

628

 

 

 

627

 

 

 

2,302

 

 

 

2,297

 

Total acquired non-credit-deteriorated loans and leases

 

$

723,692

 

 

$

692,028

 

 

$

215,118

 

 

$

210,473

 

The Company hedges interest rates on certain loans using interest rate swaps through which the Company pays variable amounts and receives fixed amounts. Refer to Note 21—Derivative Instruments and Hedging Activities for additional discussion.

Allowance for Credit Losses

The Company adopted CECL on December 31, 2022, and applied it retroactively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Loans and leases considered for inclusion in the allowance for credit losses include acquired non-credit-deteriorated loans and leases, purchased credit deteriorated loans, and originated loans and leases.

The Bank’s credit risk rating methodology assigns risk ratings from 1 to 10, where a higher rating represents higher risk. Risk ratings for all loans of $1.0 million or more are reviewed annually. The risk rating categories are described by the following groupings:

Pass—Ratings 1‑4 define the risk levels of borrowers and guarantors that offer a minimal to an acceptable level of risk.

Watch—A watch asset (rating of 5) has credit exposure that presents higher than average risk and warrants greater than routine attention by Bank personnel due to conditions affecting the borrower, the borrower’s industry or the economic environment.

Special Mention—A special mention asset (rating of 6) has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard Accrual—A substandard accrual asset (rating of 7) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This classification may be used in limited cases, where despite credit severity, the borrower is current on payments and there is an agreed plan for credit remediation.

Substandard Non‑Accrual—A substandard asset (rating of 8) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful—A doubtful asset (rating of 9) has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss—A loss asset (rating of 10) is considered uncollectible and of such little value that its continuance as a realizable asset is not warranted.

Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of initial origination. During the years ended December 31, 2023, and 2022, $52.2 million and $13.2 million of revolving loans were converted to term loans, respectively.

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses calculation as of December 31, 2023 and 2022.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

 

 

December 31, 2023

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

247,856

 

 

$

452,127

 

 

$

516,624

 

 

$

229,053

 

 

$

143,283

 

 

$

388,872

 

 

$

28,360

 

 

$

2,006,175

 

      Watch

 

 

12,501

 

 

 

22,094

 

 

 

26,408

 

 

 

46,713

 

 

 

20,364

 

 

 

68,003

 

 

 

—

 

 

 

196,083

 

      Special Mention

 

 

—

 

 

 

799

 

 

 

10,752

 

 

 

2,618

 

 

 

12,751

 

 

 

25,790

 

 

 

—

 

 

 

52,710

 

      Substandard

 

 

—

 

 

 

2,888

 

 

 

5,841

 

 

 

1,771

 

 

 

7,483

 

 

 

46,532

 

 

 

829

 

 

 

65,344

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

193

 

 

$

60

 

 

$

1,511

 

 

$

4,054

 

 

$

3,911

 

 

$

—

 

 

$

9,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

55,178

 

 

$

135,477

 

 

$

104,005

 

 

$

54,651

 

 

$

37,806

 

 

$

225,593

 

 

$

57,865

 

 

$

670,575

 

      Watch

 

 

—

 

 

 

4,811

 

 

 

—

 

 

 

17,417

 

 

 

7,167

 

 

 

8,708

 

 

 

1,597

 

 

 

39,700

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,594

 

 

 

127

 

 

 

1

 

 

 

413

 

 

 

4,135

 

      Substandard

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,523

 

 

 

952

 

 

 

5,120

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

21

 

 

$

—

 

 

$

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development, & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

82,449

 

 

$

145,174

 

 

$

184,544

 

 

$

35,466

 

 

$

9,772

 

 

$

1,429

 

 

$

174

 

 

$

459,008

 

      Watch

 

 

1,392

 

 

 

13,990

 

 

 

21,313

 

 

 

18,716

 

 

 

3,125

 

 

 

—

 

 

 

—

 

 

 

58,536

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

9,279

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,279

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

14

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

475,720

 

 

$

514,902

 

 

$

288,392

 

 

$

109,430

 

 

$

73,059

 

 

$

147,168

 

 

$

524,348

 

 

$

2,133,019

 

      Watch

 

 

41,027

 

 

 

33,080

 

 

 

50,407

 

 

 

1,385

 

 

 

6,951

 

 

 

18,180

 

 

 

39,531

 

 

 

190,561

 

      Special Mention

 

 

—

 

 

 

6,164

 

 

 

10,595

 

 

 

2,631

 

 

 

1,112

 

 

 

6,643

 

 

 

36,354

 

 

 

63,499

 

      Substandard

 

 

—

 

 

 

7,332

 

 

 

6,067

 

 

 

6,431

 

 

 

10,116

 

 

 

18,381

 

 

 

13,155

 

 

 

61,482

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

Gross charge-offs, year ended December 31, 2023

 

$

1,518

 

 

$

1,938

 

 

$

5,372

 

 

$

4,451

 

 

$

1,087

 

 

$

1,045

 

 

$

—

 

 

$

15,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

564

 

 

$

132

 

 

$

79

 

 

$

133

 

 

$

28

 

 

$

424

 

 

$

1,814

 

 

$

3,174

 

      Watch

 

 

—

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

26

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

327,099

 

 

$

207,640

 

 

$

93,242

 

 

$

29,343

 

 

$

5,443

 

 

$

856

 

 

$

—

 

 

$

663,623

 

      Watch

 

 

—

 

 

 

67

 

 

 

1,008

 

 

 

16

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,091

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

179

 

 

 

101

 

 

 

36

 

 

 

—

 

 

 

316

 

      Substandard

 

 

259

 

 

 

138

 

 

 

384

 

 

 

55

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

836

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

Gross charge-offs, year ended December 31, 2023

 

$

734

 

 

$

886

 

 

$

549

 

 

$

139

 

 

$

75

 

 

$

54

 

 

$

—

 

 

$

2,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,188,866

 

 

$

1,455,452

 

 

$

1,186,886

 

 

$

458,076

 

 

$

269,391

 

 

$

764,342

 

 

$

612,561

 

 

$

5,935,574

 

      Watch

 

 

54,920

 

 

 

74,042

 

 

 

99,161

 

 

 

84,247

 

 

 

37,607

 

 

 

94,892

 

 

 

41,128

 

 

 

485,997

 

      Special Mention

 

 

—

 

 

 

6,963

 

 

 

30,626

 

 

 

9,022

 

 

 

14,091

 

 

 

32,470

 

 

 

36,767

 

 

 

129,939

 

      Substandard

 

 

259

 

 

 

10,358

 

 

 

12,399

 

 

 

8,446

 

 

 

17,948

 

 

 

68,450

 

 

 

14,936

 

 

 

132,796

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

Gross charge-offs, year ended December 31, 2023

 

$

2,252

 

 

$

3,017

 

 

$

5,981

 

 

$

6,101

 

 

$

5,216

 

 

$

5,034

 

 

$

—

 

 

$

27,601

 

 

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

 

 

December 31, 2022

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Loans

 

 

Loans (1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

471,009

 

 

$

510,529

 

 

$

207,765

 

 

$

111,792

 

 

$

84,382

 

 

$

324,271

 

 

$

28,343

 

 

$

1,738,091

 

      Watch

 

 

6,422

 

 

 

12,723

 

 

 

20,583

 

 

 

11,004

 

 

 

17,269

 

 

 

44,462

 

 

 

—

 

 

 

112,463

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

121

 

 

 

1,075

 

 

 

1,232

 

 

 

10,075

 

 

 

—

 

 

 

12,503

 

      Substandard

 

 

—

 

 

 

1,910

 

 

 

915

 

 

 

13,042

 

 

 

12,685

 

 

 

22,915

 

 

 

—

 

 

 

51,467

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

186

 

 

$

101

 

 

$

1,766

 

 

$

35

 

 

$

1,749

 

 

$

—

 

 

$

3,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

68,752

 

 

$

59,075

 

 

$

41,768

 

 

$

31,726

 

 

$

48,432

 

 

$

170,279

 

 

$

49,622

 

 

$

469,654

 

      Watch

 

 

—

 

 

 

—

 

 

 

1,137

 

 

 

682

 

 

 

4,098

 

 

 

9,026

 

 

 

2,586

 

 

 

17,529

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

323

 

 

 

32

 

 

 

420

 

 

 

876

 

 

 

—

 

 

 

1,651

 

      Substandard

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,185

 

 

 

660

 

 

 

3,756

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

33

 

 

$

35

 

 

$

1,140

 

 

$

—

 

 

$

1,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

62,310

 

 

$

203,672

 

 

$

61,895

 

 

$

27,189

 

 

$

26,489

 

 

$

38,186

 

 

$

185

 

 

$

419,926

 

      Watch

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,409

 

 

 

—

 

 

 

3,064

 

 

 

—

 

 

 

7,473

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

1,845

 

 

 

—

 

 

 

4,199

 

 

 

—

 

 

 

—

 

 

 

6,044

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,530

 

 

 

4,012

 

 

 

4

 

 

 

—

 

 

 

5,546

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

94

 

 

$

—

 

 

$

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

508,664

 

 

$

305,056

 

 

$

137,335

 

 

$

72,486

 

 

$

96,304

 

 

$

113,965

 

 

$

549,431

 

 

$

1,783,241

 

      Watch

 

 

16,657

 

 

 

20,856

 

 

 

15,857

 

 

 

32,282

 

 

 

19,362

 

 

 

9,809

 

 

 

47,119

 

 

 

161,942

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

697

 

 

 

1,162

 

 

 

2,958

 

 

 

7,831

 

 

 

22,320

 

 

 

48,024

 

      Substandard

 

 

1,156

 

 

 

3,415

 

 

 

6,671

 

 

 

11,949

 

 

 

5,434

 

 

 

25,275

 

 

 

10,738

 

 

 

64,638

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

Gross charge-offs, year ended December 31, 2022

 

$

223

 

 

$

111

 

 

$

824

 

 

$

2,412

 

 

$

643

 

 

$

1,164

 

 

$

—

 

 

$

5,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

332

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

15

 

 

$

584

 

 

$

429

 

 

$

1,650

 

      Watch

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

73

 

 

 

—

 

 

 

109

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7

 

 

$

—

 

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

296,395

 

 

$

148,588

 

 

$

53,642

 

 

$

14,478

 

 

$

7,245

 

 

$

934

 

 

$

—

 

 

$

521,282

 

      Watch

 

 

93

 

 

 

1,560

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,679

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

290

 

 

 

182

 

 

 

250

 

 

 

23

 

 

 

—

 

 

 

745

 

      Substandard

 

 

35

 

 

 

82

 

 

 

80

 

 

 

77

 

 

 

6

 

 

 

 

 

 

—

 

 

 

280

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

Gross charge-offs, year ended December 31, 2022

 

$

84

 

 

$

645

 

 

$

503

 

 

$

—

 

 

$

96

 

 

$

144

 

 

$

—

 

 

$

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,407,462

 

 

$

1,227,066

 

 

$

502,470

 

 

$

257,750

 

 

$

262,867

 

 

$

648,219

 

 

$

628,010

 

 

$

4,933,844

 

      Watch

 

 

23,206

 

 

 

35,139

 

 

 

37,603

 

 

 

48,377

 

 

 

40,731

 

 

 

66,434

 

 

 

49,705

 

 

 

301,195

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

3,276

 

 

 

2,451

 

 

 

9,059

 

 

 

18,805

 

 

 

22,320

 

 

 

68,967

 

      Substandard

 

 

1,191

 

 

 

5,407

 

 

 

7,900

 

 

 

26,979

 

 

 

22,433

 

 

 

50,379

 

 

 

11,398

 

 

 

125,687

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

Gross charge-offs, year ended December 31, 2022

 

$

307

 

 

$

942

 

 

$

1,428

 

 

$

4,211

 

 

$

809

 

 

$

4,298

 

 

$

—

 

 

$

11,995

 

(1) Includes $8.4 million of substandard loans classified as held for sale.

For the years ended December 31, 2023 and 2022 there were no loans or leases which were risk rated Doubtful or Loss.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

The following tables summarize contractual delinquency information of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation at December 31, 2023 and December 31, 2022:

 

 

December 31, 2023

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

259,998

 

 

$

474,878

 

 

$

558,236

 

 

$

279,098

 

 

$

178,729

 

 

$

501,620

 

 

$

29,189

 

 

$

2,281,748

 

      30-59 Days Past Due

 

 

359

 

 

 

648

 

 

 

638

 

 

 

74

 

 

 

3,176

 

 

 

484

 

 

 

—

 

 

 

5,379

 

      60-89 Days Past Due

 

 

—

 

 

 

826

 

 

 

—

 

 

 

286

 

 

 

—

 

 

 

1,208

 

 

 

—

 

 

 

2,320

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

1,556

 

 

 

751

 

 

 

697

 

 

 

1,976

 

 

 

25,885

 

 

 

—

 

 

 

30,865

 

      Total Past Due

 

 

359

 

 

 

3,030

 

 

 

1,389

 

 

 

1,057

 

 

 

5,152

 

 

 

27,577

 

 

 

—

 

 

 

38,564

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

55,178

 

 

$

136,448

 

 

$

102,973

 

 

$

75,125

 

 

$

45,050

 

 

$

230,102

 

 

$

59,476

 

 

$

704,352

 

      30-59 Days Past Due

 

 

—

 

 

 

3,840

 

 

 

1,032

 

 

 

537

 

 

 

29

 

 

 

4,122

 

 

 

399

 

 

 

9,959

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21

 

 

 

127

 

 

 

—

 

 

 

148

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,474

 

 

 

952

 

 

 

5,071

 

      Total Past Due

 

 

—

 

 

 

3,840

 

 

 

1,139

 

 

 

726

 

 

 

399

 

 

 

7,723

 

 

 

1,351

 

 

 

15,178

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

83,841

 

 

$

156,815

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

524,488

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

516,747

 

 

$

552,251

 

 

$

351,534

 

 

$

114,859

 

 

$

83,780

 

 

$

177,239

 

 

$

611,766

 

 

$

2,408,176

 

      30-59 Days Past Due

 

 

—

 

 

 

1,545

 

 

 

1,099

 

 

 

238

 

 

 

2,513

 

 

 

400

 

 

 

455

 

 

 

6,250

 

      60-89 Days Past Due

 

 

—

 

 

 

1,505

 

 

 

—

 

 

 

234

 

 

 

3,416

 

 

 

1,139

 

 

 

496

 

 

 

6,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

6,177

 

 

 

2,828

 

 

 

4,546

 

 

 

1,529

 

 

 

11,594

 

 

 

671

 

 

 

27,345

 

      Total Past Due

 

 

—

 

 

 

9,227

 

 

 

3,927

 

 

 

5,018

 

 

 

7,458

 

 

 

13,133

 

 

 

1,622

 

 

 

40,385

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

325,833

 

 

$

206,800

 

 

$

93,795

 

 

$

29,292

 

 

$

5,537

 

 

$

889

 

 

$

—

 

 

$

662,146

 

      30-59 Days Past Due

 

 

726

 

 

 

426

 

 

 

153

 

 

 

38

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

1,349

 

      60-89 Days Past Due

 

 

540

 

 

 

481

 

 

 

302

 

 

 

218

 

 

 

3

 

 

 

1

 

 

 

—

 

 

 

1,545

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

138

 

 

 

384

 

 

 

45

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

826

 

      Total Past Due

 

 

1,525

 

 

 

1,045

 

 

 

839

 

 

 

301

 

 

 

7

 

 

 

3

 

 

 

—

 

 

 

3,720

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,242,161

 

 

$

1,527,324

 

 

$

1,321,778

 

 

$

552,689

 

 

$

326,021

 

 

$

911,718

 

 

$

702,419

 

 

$

6,584,110

 

      30-59 Days Past Due

 

 

1,085

 

 

 

6,459

 

 

 

2,922

 

 

 

887

 

 

 

5,722

 

 

 

5,008

 

 

 

854

 

 

 

22,937

 

      60-89 Days Past Due

 

 

540

 

 

 

5,161

 

 

 

302

 

 

 

738

 

 

 

3,440

 

 

 

2,475

 

 

 

496

 

 

 

13,152

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

7,871

 

 

 

4,070

 

 

 

5,477

 

 

 

3,854

 

 

 

40,953

 

 

 

1,623

 

 

 

64,107

 

      Total Past Due

 

 

1,884

 

 

 

19,491

 

 

 

7,294

 

 

 

7,102

 

 

 

13,016

 

 

 

48,436

 

 

 

2,973

 

 

 

100,196

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

 

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Total non-accrual loans without an allowance included $1.6 million of commercial real estate loans, $3.6 million of residential real estate loans and $2.3 million of commercial and industrial loans as of December 31, 2023. The Company recognized $3.8 million of interest income on non-accrual loans and leases for the year ended December 31, 2023.

 

 

December 31, 2022

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans(1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

477,334

 

 

$

525,048

 

 

$

229,260

 

 

$

132,067

 

 

$

112,126

 

 

$

387,349

 

 

$

28,343

 

 

$

1,891,527

 

      30-59 Days Past Due

 

 

97

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

471

 

 

 

2,060

 

 

 

—

 

 

 

2,682

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,016

 

 

 

—

 

 

 

1,016

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

60

 

 

 

124

 

 

 

4,846

 

 

 

2,971

 

 

 

11,298

 

 

 

—

 

 

 

19,299

 

      Total Past Due

 

 

97

 

 

 

114

 

 

 

124

 

 

 

4,846

 

 

 

3,442

 

 

 

14,374

 

 

 

—

 

 

 

22,997

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

68,752

 

 

$

59,075

 

 

$

40,731

 

 

$

32,440

 

 

$

52,950

 

 

$

180,128

 

 

$

52,146

 

 

$

486,222

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

2,497

 

 

 

—

 

 

 

—

 

 

 

108

 

 

 

122

 

 

 

2,727

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,130

 

 

 

600

 

 

 

3,641

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

2,731

 

 

 

381

 

 

 

296

 

 

 

2,238

 

 

 

722

 

 

 

6,368

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,250

 

 

$

185

 

 

$

438,985

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

524,341

 

 

$

339,915

 

 

$

156,713

 

 

$

113,350

 

 

$

122,523

 

 

$

153,039

 

 

$

628,747

 

 

$

2,038,628

 

      30-59 Days Past Due

 

 

980

 

 

 

1,371

 

 

 

391

 

 

 

1,717

 

 

 

368

 

 

 

922

 

 

 

—

 

 

 

5,749

 

      60-89 Days Past Due

 

 

—

 

 

 

8

 

 

 

80

 

 

 

87

 

 

 

—

 

 

 

472

 

 

 

—

 

 

 

647

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,156

 

 

 

1,089

 

 

 

3,376

 

 

 

2,725

 

 

 

1,167

 

 

 

2,447

 

 

 

861

 

 

 

12,821

 

      Total Past Due

 

 

2,136

 

 

 

2,468

 

 

 

3,847

 

 

 

4,529

 

 

 

1,535

 

 

 

3,841

 

 

 

861

 

 

 

19,217

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

294,948

 

 

$

149,642

 

 

$

53,680

 

 

$

14,557

 

 

$

7,411

 

 

$

955

 

 

$

—

 

 

$

521,193

 

      30-59 Days Past Due

 

 

1,461

 

 

 

467

 

 

 

295

 

 

 

104

 

 

 

77

 

 

 

2

 

 

 

—

 

 

 

2,406

 

      60-89 Days Past Due

 

 

79

 

 

 

39

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

127

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

35

 

 

 

82

 

 

 

63

 

 

 

76

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

260

 

      Total Past Due

 

 

1,575

 

 

 

588

 

 

 

358

 

 

 

180

 

 

 

90

 

 

 

2

 

 

 

—

 

 

 

2,793

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,428,051

 

 

$

1,277,498

 

 

$

544,189

 

 

$

325,621

 

 

$

329,727

 

 

$

763,378

 

 

$

709,850

 

 

$

5,378,314

 

      30-59 Days Past Due

 

 

2,538

 

 

 

1,892

 

 

 

3,183

 

 

 

1,821

 

 

 

916

 

 

 

3,092

 

 

 

122

 

 

 

13,564

 

      60-89 Days Past Due

 

 

79

 

 

 

47

 

 

 

80

 

 

 

87

 

 

 

9

 

 

 

1,488

 

 

 

—

 

 

 

1,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,191

 

 

 

1,231

 

 

 

3,797

 

 

 

8,028

 

 

 

4,438

 

 

 

15,879

 

 

 

1,461

 

 

 

36,025

 

      Total Past Due

 

 

3,808

 

 

 

3,170

 

 

 

7,060

 

 

 

9,936

 

 

 

5,363

 

 

 

20,459

 

 

 

1,583

 

 

 

51,379

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

(1) Includes $8.4 million of substandard loans classified as held for sale.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Total non-accrual loans without an allowance included $10.8 million of commercial real estate loans, $4.3 million of commercial and industrial loans, and $2.6 million of residential real estate loans, as of December 31, 2022. The Company recognized $2.5 million of interest income on non-accrual loans and leases for the year ended December 31, 2022.

The following tables summarize the balance and activity within the allowance for credit losses, the components of the allowance for credit losses in terms of loans and leases individually and collectively evaluated for expected credit losses, and corresponding loan and lease balances by type for the years ended December 31, 2023, 2022 and 2021. Results for the full year and period ended December 31, 2023 and 2022 are presented under the CECL methodology; results for the year ended December 31, 2021 are reported in accordance with previously applicable accounting standards. Refer to Note 1—Business and Summary of Significant Accounting Policies, for more detail on the Company’s policy on allowance for credit losses.

2023

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for credit losses - loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

Adjustment for acquired PCD loans

 

 

8,230

 

 

 

660

 

 

 

97

 

 

 

1,609

 

 

 

—

 

 

 

—

 

 

 

10,596

 

Provision/(recapture)

 

 

7,237

 

 

 

(402

)

 

 

(325

)

 

 

23,402

 

 

 

11

 

 

 

2,297

 

 

 

32,220

 

Charge-offs

 

 

(9,729

)

 

 

(21

)

 

 

—

 

 

 

(15,411

)

 

 

(3

)

 

 

(2,437

)

 

 

(27,601

)

Recoveries

 

 

1,438

 

 

 

118

 

 

 

—

 

 

 

2,293

 

 

 

4

 

 

 

694

 

 

 

4,547

 

Ending balance

 

$

33,237

 

 

$

3,495

 

 

$

2,906

 

 

$

53,782

 

 

$

36

 

 

$

8,230

 

 

$

101,686

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

12,361

 

 

$

—

 

 

$

—

 

 

$

14,880

 

 

$

—

 

 

$

—

 

 

$

27,241

 

Collectively evaluated for impairment

 

 

20,876

 

 

 

3,495

 

 

 

2,906

 

 

 

38,902

 

 

 

36

 

 

 

8,230

 

 

 

74,445

 

Total allowance for credit losses - loans and leases

 

$

33,237

 

 

$

3,495

 

 

$

2,906

 

 

$

53,782

 

 

$

36

 

 

$

8,230

 

 

$

101,686

 

 

2023

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

64,339

 

 

$

3,593

 

 

$

813

 

 

$

44,749

 

 

$

—

 

 

$

—

 

 

$

113,494

 

Collectively evaluated for
   impairment

 

 

2,255,973

 

 

 

715,937

 

 

 

526,024

 

 

 

2,403,812

 

 

 

3,200

 

 

 

665,866

 

 

 

6,570,812

 

Total loans and leases

 

$

2,320,312

 

 

$

719,530

 

 

$

526,837

 

 

$

2,448,561

 

 

$

3,200

 

 

$

665,866

 

 

$

6,684,306

 

The allowance for credit losses increased $10.6 million for the year ended December 31, 2023 due to an acquisition adjustment on PCD loans related to the Inland transaction. For the same periods, a provision for credit losses of $2.7 million was recorded for acquired non-credit deteriorated loans related to the Inland acquisition.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

2022

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for credit losses - loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance pre-CECL adoption

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

Impact of CECL adoption

 

 

6,367

 

 

 

1,047

 

 

 

1,191

 

 

 

1,253

 

 

 

9

 

 

 

2,301

 

 

 

12,168

 

Provision/(recapture)

 

 

5,252

 

 

 

907

 

 

 

1,476

 

 

 

12,002

 

 

 

(9

)

 

 

3,046

 

 

 

22,674

 

Charge-offs

 

 

(3,837

)

 

 

(1,208

)

 

 

(94

)

 

 

(5,377

)

 

 

(7

)

 

 

(1,472

)

 

 

(11,995

)

Recoveries

 

 

1,361

 

 

 

766

 

 

 

39

 

 

 

882

 

 

 

22

 

 

 

995

 

 

 

4,065

 

Ending balance

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

6,101

 

 

$

—

 

 

$

265

 

 

$

8,972

 

 

$

—

 

 

$

—

 

 

$

15,338

 

Collectively evaluated for impairment

 

 

19,960

 

 

 

3,140

 

 

 

2,869

 

 

 

32,917

 

 

 

24

 

 

 

7,676

 

 

 

66,586

 

Total allowance for credit losses - loans and leases

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

 

2022

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

37,959

 

 

$

879

 

 

$

5,541

 

 

$

47,846

 

 

$

—

 

 

$

—

 

 

$

92,225

 

Collectively evaluated for
   impairment

 

 

1,871,529

 

 

 

489,083

 

 

 

433,448

 

 

 

2,009,228

 

 

 

1,759

 

 

 

523,986

 

 

 

5,329,033

 

Total loans and leases

 

$

1,909,488

 

 

$

489,962

 

 

$

438,989

 

 

$

2,057,074

 

 

$

1,759

 

 

$

523,986

 

 

$

5,421,258

 

 

2021

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for loan and lease losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

19,584

 

 

$

2,400

 

 

$

1,352

 

 

$

41,183

 

 

$

15

 

 

$

1,813

 

 

$

66,347

 

Provision/(recapture)

 

 

1,263

 

 

 

(663

)

 

 

(504

)

 

 

(219

)

 

 

(6

)

 

 

1,586

 

 

 

1,457

 

Charge-offs

 

 

(4,698

)

 

 

(124

)

 

 

(326

)

 

 

(9,015

)

 

 

—

 

 

 

(1,501

)

 

 

(15,664

)

Recoveries

 

 

769

 

 

 

15

 

 

 

—

 

 

 

1,180

 

 

 

—

 

 

 

908

 

 

 

2,872

 

Ending balance

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

6,538

 

 

$

—

 

 

$

—

 

 

$

14,500

 

 

$

—

 

 

$

—

 

 

$

21,038

 

Collectively evaluated for impairment

 

 

8,570

 

 

 

622

 

 

 

519

 

 

 

18,265

 

 

 

7

 

 

 

2,806

 

 

 

30,789

 

Loans acquired with deteriorated credit
   quality

 

 

1,810

 

 

 

1,006

 

 

 

3

 

 

 

364

 

 

 

2

 

 

 

—

 

 

 

3,185

 

Total allowance for loan and lease losses

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

 

2021

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Paycheck Protection Program

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

35,051

 

 

$

1,802

 

 

$

—

 

 

$

36,070

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

72,923

 

Collectively evaluated for
   impairment

 

 

1,558,537

 

 

 

429,311

 

 

 

324,087

 

 

 

1,541,877

 

 

 

123,712

 

 

 

1,204

 

 

 

358,426

 

 

 

4,337,154

 

Loans acquired with deteriorated
   credit quality

 

 

72,160

 

 

 

49,401

 

 

 

1,312

 

 

 

4,014

 

 

 

—

 

 

 

164

 

 

 

—

 

 

 

127,051

 

Total loans and leases

 

$

1,665,748

 

 

$

480,514

 

 

$

325,399

 

 

$

1,581,961

 

 

$

123,712

 

 

$

1,368

 

 

$

358,426

 

 

$

4,537,128

 

The Company increased the allowance for credit losses - loans and leases by $19.8 million for the year ended December 31, 2023, which included a $10.6 million adjustment for acquired purchased credit deteriorated loans. The remaining increase in allowance for credit losses reflects increased provisions related to loan and lease portfolio growth and increases in individually evaluated loans. Portfolio growth, summarized by loan category in the previous tables, indicates growth in commercial and industrial loans of $391.5 million for the year and a related $11.9 million increase in ACL. The commercial real estate portfolio grew $410.8 million from prior year resulting in an increase of $7.2 million to ACL. Additionally, the allocation of ACL to the individually evaluated portfolio increased $11.9 million during the year due to migration of classified loans from the collectively evaluated portfolio. For the year ended December 31, 2023, the ACL on PCD loans increased $8.1 million, primarily related to the adjustment for acquired PCD loans as part of the Inland acquisition, net of $1.2 million in charge-offs and $1.2 million in provision recapture.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

The Company increased the allowance for credit losses - loans and leases by $26.9 million for the year ended December 31, 2022, which included a $12.2 million cumulative effective adjustment as of January 1, 2022 for the impact of adopting CECL. The remaining increase in current expected credit losses reflects increased provisions related to loan and lease portfolio growth, qualitative adjustments, and increases in individually evaluated loans. Portfolio growth, summarized by loan category in the previous tables, indicates growth in commercial and industrial loans of $474.4 million for the year and a related $7.5 million increase in ACL (excluding the CECL adoption adjustment). The commercial real estate portfolio grew $243.7 million from prior year resulting in an increase of $2.8 million to ACL. An increase in qualitative adjustments was allocated to address economic uncertainty and to address the negative credit impact of increased interest rates based on portfolio classification. Additionally, the allocation of ACL to the individually evaluated portfolio increased $6.9 million during the year due to migration of classified loans from the collectively evaluated portfolio. For the year ended December 31, 2022, the provision for credit losses on PCD loans decreased $1.6 million, primarily related to a $47.0 million decrease in loans outstanding and $341,000 of net recoveries on PCD loans.

Comparisons between 2022 and 2021 balances are not presented because of the different classifications used for CECL adoption.

The Company decreased the allowance by $11.3 million for the year ended December 31, 2021. For acquired impaired loans, the Company decreased the allowance by $3.3 million for the year ended December 31, 2021. For loans individually evaluated for impairment, the Company decreased the allowance by $2.9 million for the year ended December 31, 2021. For loans collectively evaluated for impairment, the Company decreased the allowance by $5.1 million for the year ended December 31, 2021.

The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2021, which excludes acquired impaired loans:

 

 

2021

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

17,233

 

 

$

19,252

 

 

$

—

 

 

$

26,041

 

 

$

1,262

 

Residential real estate

 

 

1,802

 

 

 

1,919

 

 

 

—

 

 

 

2,647

 

 

 

123

 

Commercial and industrial

 

 

16,624

 

 

 

19,148

 

 

 

—

 

 

 

16,808

 

 

 

923

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

17,818

 

 

 

20,117

 

 

 

6,538

 

 

 

26,575

 

 

 

1,563

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

164

 

 

 

2

 

Commercial and industrial

 

 

19,446

 

 

 

21,198

 

 

 

14,500

 

 

 

27,251

 

 

 

2,114

 

Total impaired loans

 

$

72,923

 

 

$

81,634

 

 

$

21,038

 

 

$

99,486

 

 

$

5,987

 

For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non‑accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount.

The following table presents loans with modified terms as of December 31, 2023:

December 31, 2023

 

Payment Delay

 

 

Term Modification

 

 

Combination Term Modification and Interest Rate Reduction

 

 

Total Modified by Class

 

 

% of Class of Loans and Leases

 

Modified loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

10,815

 

 

$

—

 

 

$

10,815

 

 

 

0.5

%

Commercial and industrial

 

 

43

 

 

 

62,289

 

 

 

364

 

 

 

62,696

 

 

 

2.6

%

Total modified loans

 

$

43

 

 

$

73,104

 

 

$

364

 

 

$

73,511

 

 

 

1.1

%

 

Loans reflected as having a payment delay included a general adjustment in loan terms similar to those of pass-rated credits. The weighted average term extension (in months) for loans modified during the year ended December 31, 2023 was 18 months. Loans having term modifications included extension of term as a result of a new borrower structure and other miscellaneous term adjustments. Loans having a combination of term modification and interest rate reduction reflect a longer amortization period and a reduction in the weighted average contractual rate of 2.69%. There was $9.1 million in commitments outstanding on modified loans at December 31, 2023.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Prior to 2023, TDRs were granted due to borrower financial difficulty and provide for a modification of loan repayment terms. Trouble debt restructurings are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for credit losses - loans and leases. The tables below present TDRs by loan category as of December 31, 2022, and 2021. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs.

2022

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Individually Evaluated

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2

 

 

$

551

 

 

$

551

 

 

$

—

 

 

$

109

 

Commercial and industrial

 

 

1

 

 

 

24

 

 

 

24

 

 

 

—

 

 

 

34

 

Residential real estate

 

 

2

 

 

 

144

 

 

 

144

 

 

 

—

 

 

 

—

 

Total accruing

 

 

5

 

 

 

719

 

 

 

719

 

 

 

—

 

 

 

143

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

3

 

 

 

830

 

 

 

623

 

 

 

207

 

 

 

73

 

Commercial and industrial

 

 

6

 

 

 

2,017

 

 

 

982

 

 

 

1,035

 

 

 

38

 

Total non-accruing

 

 

9

 

 

 

2,847

 

 

 

1,605

 

 

 

1,242

 

 

 

111

 

Total troubled debt restructurings

 

 

14

 

 

$

3,566

 

 

$

2,324

 

 

$

1,242

 

 

$

254

 

 

2021

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Specific
Reserves

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

5

 

 

$

1,703

 

 

$

1,703

 

 

$

—

 

 

$

215

 

Commercial and industrial

 

 

1

 

 

 

56

 

 

 

56

 

 

 

—

 

 

 

131

 

Residential real estate

 

 

2

 

 

 

168

 

 

 

168

 

 

 

—

 

 

 

—

 

Total accruing

 

 

8

 

 

 

1,927

 

 

 

1,927

 

 

 

—

 

 

 

346

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

4

 

 

 

1,034

 

 

 

918

 

 

 

116

 

 

 

111

 

Commercial and industrial

 

 

3

 

 

 

1,745

 

 

 

588

 

 

 

1,157

 

 

 

—

 

Total non-accruing

 

 

7

 

 

 

2,779

 

 

 

1,506

 

 

 

1,273

 

 

 

111

 

Total troubled debt restructurings

 

 

15

 

 

$

4,706

 

 

$

3,433

 

 

$

1,273

 

 

$

457

 

There was no commitment outstanding on troubled debt restructurings at December 31, 2022.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2022, and 2021:

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

Accruing:

 

 

 

 

 

 

Beginning balance

 

$

1,927

 

 

$

2,495

 

Additions

 

 

—

 

 

 

281

 

Net payments

 

 

(1,208

)

 

 

(636

)

Net transfers (to) from non-accrual

 

 

—

 

 

 

(213

)

Ending balance

 

 

719

 

 

 

1,927

 

Non-accruing:

 

 

 

 

 

 

Beginning balance

 

 

1,506

 

 

 

5,650

 

Additions

 

 

756

 

 

 

673

 

Net payments

 

 

(536

)

 

 

(3,671

)

Charge-offs

 

 

(121

)

 

 

(1,359

)

Net transfers (to) from accrual

 

 

—

 

 

 

213

 

Ending balance

 

 

1,605

 

 

 

1,506

 

Total troubled debt restructurings

 

$

2,324

 

 

$

3,433

 

There were no troubled debt restructurings that subsequently defaulted within 12 months of the restructure date during the year ended December 31, 2022 or 2021.

The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of December 31, 2023 and 2022:

2023

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

28,767

 

 

$

35,572

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

64,339

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,793

 

 

 

800

 

 

 

—

 

 

 

—

 

 

 

3,593

 

Construction, land development,
  and other land

 

 

813

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

813

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,749

 

 

 

44,749

 

Total

 

$

813

 

 

$

28,767

 

 

$

35,572

 

 

$

2,793

 

 

$

800

 

 

$

—

 

 

$

44,749

 

 

$

113,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

9,749

 

 

$

28,210

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37,959

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

237

 

 

 

422

 

 

 

220

 

 

 

—

 

 

 

879

 

Construction, land development,
  and other land

 

 

5,541

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,541

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,034

 

 

 

26,034

 

Total

 

$

5,541

 

 

$

9,749

 

 

$

28,210

 

 

$

237

 

 

$

422

 

 

$

220

 

 

$

26,034

 

 

$

70,413

 

 

The following table presents the change in balance for allowance for credit losses - unfunded commitments, which are included in the Consolidated Statement of Financial Condition as part of Accrued expenses and other liabilities, as of December 31, 2023, 2022 and 2021:

 

 

For the Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,203

 

 

$

1,403

 

 

$

1,887

 

Impact of CECL adoption

 

 

—

 

 

 

1,595

 

 

 

—

 

Provision/(recapture) for/of unfunded commitments

 

 

(567

)

 

 

1,205

 

 

 

(484

)

Ending balance

 

$

3,636

 

 

$

4,203

 

 

$

1,403

 
v3.24.0.1
Servicing Assets
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Servicing Assets

Note 6—Servicing Assets

Activity for servicing assets and the related changes in fair value for the years ended December 31, 2023, 2022 and 2021 is as follows:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

19,172

 

 

$

23,744

 

 

$

22,042

 

Additions, net

 

 

5,761

 

 

 

7,171

 

 

 

8,360

 

Changes in fair value

 

 

(5,089

)

 

 

(11,743

)

 

 

(6,658

)

Ending balance

 

$

19,844

 

 

$

19,172

 

 

$

23,744

 

Loans serviced for others are not included in the Consolidated Statements of Financial Condition. The unpaid principal balances of these loans serviced for others were as follows as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Loan portfolios serviced for:

 

 

 

 

 

 

SBA guaranteed loans

 

$

1,530,401

 

 

$

1,521,014

 

USDA guaranteed loans

 

 

197,942

 

 

 

211,150

 

Total

 

$

1,728,343

 

 

$

1,732,164

 

Loan servicing revenue totaled $13.5 million for the years ended December 31, 2023 and 2022, and $12.7 million for the year ended December 31, 2021.

Loan servicing asset revaluation, which represents the changes in fair value of servicing assets, totaled downward valuations of $5.1 million, $11.7 million, and $6.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Changes in the fair value of the loan servicing asset are reported on the Consolidated Statement of Operations.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in secondary market premiums and prepayment speed assumptions have the most significant impact on the fair value of servicing rights. Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which may result in a decrease in the fair value of servicing assets. Measurement of fair value is limited to the conditions existing, and the assumptions used as of a particular point in time, and those assumptions may change over time. Refer to Note 17—Fair Value Measurement for further details.
v3.24.0.1
Other Real Estate Owned
 12 Months Ended
Dec. 31, 2023
Real Estate [Abstract]  
Other Real Estate Owned

Note 7—Other Real Estate Owned

The following table presents the change in OREO for the years ended December 31, 2023, 2022 and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,717

 

 

$

2,112

 

 

$

6,350

 

Net additions to OREO

 

 

571

 

 

 

3,343

 

 

 

571

 

Proceeds from sales of OREO

 

 

(3,580

)

 

 

(491

)

 

 

(4,285

)

Gains (losses) on sales of OREO

 

 

(81

)

 

 

78

 

 

 

390

 

Valuation adjustments

 

 

(427

)

 

 

(325

)

 

 

(914

)

Ending balance

 

$

1,200

 

 

$

4,717

 

 

$

2,112

 

At December 31, 2023, the balance of real estate owned did not include any foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2022, the balance included $2.3 million in foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property.

At December 31, 2023, there was $27,000 of consumer mortgage loans secured by residential real estate properties in foreclosure. At December 31, 2022, there were no recorded investments of consumer mortgage loans secured by residential real estate properties in foreclosure.

There were no internally financed sales of OREO for the year ended December 31, 2023 or 2022.
v3.24.0.1
Premises and Equipment and Assets Held for Sale
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Premises and Equipment and Assets Held for Sale

Note 8—Premises and Equipment and Assets Held for Sale

Classifications of premises and equipment as of December 31, 2023 and 2022 and were as follows:

 

 

2023

 

 

2022

 

Premises

 

$

43,883

 

 

$

41,340

 

Furniture, fixtures and equipment

 

 

16,789

 

 

 

16,032

 

Leasehold improvements

 

 

7,182

 

 

 

5,331

 

Total cost

 

 

67,854

 

 

 

62,703

 

Less accumulated depreciation, amortization and impairment

 

 

(33,398

)

 

 

(34,606

)

Net book value of premises, furniture, fixtures, equipment, and leasehold improvements

 

 

34,456

 

 

 

28,097

 

Construction in progress

 

 

374

 

 

 

57

 

Land

 

 

31,797

 

 

 

28,644

 

Premises and equipment, net

 

$

66,627

 

 

$

56,798

 

Depreciation and amortization expense related to premises and equipment for the years ended December 31, 2023, 2022 and 2021 was $4.5 million, $4.3 million and $6.0 million, respectively. Refer to Note 9—Leases for additional discussion related to operating lease commitments.

During 2021, two branches were removed from community banking operations but remained open as lending offices. Additionally, one piece of vacant land, one piece of vacant land/vacant single-family residence and eight branches were transferred to assets held for sale. One piece of vacant land/vacant single-family residence and 10 former branch locations were sold.

During the year ended December 31, 2021, an impairment charge of $2.2 million was recognized on premises and is reflected in other non-interest expense.

During 2022, six branches were closed and consolidated, three branches were transferred to assets held for sale, and five former branch locations and one vacant property were sold.

During 2023, six branch locations were acquired as part of the Inland acquisition, and two former branch locations were sold.

Branches owned by the Company and actively marketed for sale are transferred to assets held for sale based on the lower of carrying value or fair value, less estimated costs to sell. Assets are considered held for sale when management has approved the sale of the assets following a branch closure or other events. The following table presents the change in assets held for sale for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

8,673

 

 

$

9,153

 

 

$

13,023

 

Transfers in

 

 

—

 

 

 

2,961

 

 

 

16,870

 

Proceeds from sales

 

 

(2,538

)

 

 

(3,277

)

 

 

(9,040

)

Net gains on sales

 

 

349

 

 

 

208

 

 

 

632

 

Impairment charge

 

 

(2,000

)

 

 

(372

)

 

 

(12,332

)

Ending balance

 

$

4,484

 

 

$

8,673

 

 

$

9,153

 
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

Note 9—Leases

The Company enters into leases in the normal course of business primarily for its banking facilities and branches. The Company’s operating leases have varying maturity dates through year end 2036, some of which include renewal or termination options to extend the lease. In addition, the Company leases or subleases real estate to third parties. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company uses its incremental borrowing rate at leases commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company's incremental borrowing rate is based on the FHLB regular advance rate, adjusted for the lease term and other factors. At December 31, 2023, the weighted average discount borrowing rate was 2.90% and the weighted average remaining life of operating leases was 6.1 years compared to 1.95% and 6.2 years for December 31, 2022.

The following table presents certain information related to the lease costs for operating leases included as a component of occupancy expense on the Consolidated Statement of Operations for the years ended December 31, 2023, 2022 and 2021:

 

 

2023

 

 

2022

 

 

 

2021

 

Operating lease cost

 

$

2,738

 

 

$

2,760

 

 

$

3,461

 

Short-term lease cost

 

 

434

 

 

 

214

 

 

 

160

 

Variable lease cost

 

 

1,675

 

 

 

1,585

 

 

 

1,819

 

Less: Sublease income

 

 

(630

)

 

 

(572

)

 

 

(653

)

Total lease cost, net

 

$

4,217

 

 

$

3,987

 

 

$

4,787

 

Operating cash flows paid for operating lease amounts included in the measure of lease liabilities were $4.1 million for each of the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, operating cash flows paid included early termination payments of $471,000 for two of the Company’s previously closed branch facilities, resulting in a gain of $838,000.

The Company recorded $4.8 million and $3.0 million of right-of-use lease assets in exchange for operating lease liabilities for the years ended December 31, 2023 and 2022, respectively. In 2023, the additions recorded to right-of-use assets and operating lease liabilities included $3.8 million related to the acquisition of Inland. Refer to Note 3—Acquisition of a Business for further details.

During the year ended December 31, 2023, the Company recorded $395,000 of impairment related to an acquired non-branch facility it closed. There were no impairments on lease assets during 2022. During the year ended December 31, 2021, impairment losses of $1.9 million were recognized on operating lease right-of-use asset and are reflected in other non-interest expense.

The future minimum lease payments for finance leases and operating leases, subsequent to December 31, 2023, as recorded on the balance sheet, are summarized as follows:

 

 

Operating Lease
Commitments

 

2024

 

$

3,807

 

2025

 

 

3,227

 

2026

 

 

2,490

 

2027

 

 

1,443

 

2028

 

 

1,122

 

Thereafter

 

 

4,058

 

Total

 

$

16,147

 

Imputed interest

 

 

(1,879

)

Present value of future minimum lease payments

 

$

14,268

 

The total amount of minimum rentals to be received in the future on these subleases is approximately $1.1 million, and the leases have contractual lives extending through 2028. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts.

v3.24.0.1
Goodwill, Core Deposit Intangible and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Core Deposit Intangible and Other Intangible Assets

Note 10—Goodwill, Core Deposit Intangible and Other Intangible Assets

The Company’s annual goodwill test was performed as of November 30, 2023. The Company determined that no impairment existed as of that date. Refer to Note 1—Business and Summary of Significant Accounting Policies for discussion of goodwill.

The following table summarizes the changes in the Company’s goodwill and core deposit intangible assets for the years ended December 31, 2023, 2022, and 2021:

 

2023

 

 

2022

 

 

2021

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

Beginning balance

$

148,353

 

$

8,886

 

 

$

1,648

 

 

$

148,353

 

$

15,004

 

 

$

2,201

 

 

$

148,353

 

$

21,809

 

 

$

2,469

 

Additions

 

33,352

 

 

17,250

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Amortization or accretion

 

—

 

 

(5,743

)

 

 

(268

)

 

 

—

 

 

(6,118

)

 

 

(553

)

 

 

—

 

 

(6,805

)

 

 

(268

)

Ending balance

$

181,705

 

$

20,393

 

 

$

1,380

 

 

$

148,353

 

$

8,886

 

 

$

1,648

 

 

$

148,353

 

$

15,004

 

 

$

2,201

 

Accumulated amortization
   or accretion

N/A

 

$

52,323

 

 

$

1,836

 

 

N/A

 

$

46,580

 

 

$

1,568

 

 

N/A

 

$

40,462

 

 

$

1,015

 

Weighted average
  remaining amortization
  or accretion period

N/A

 

8.3 Years

 

 

5.2 Years

 

 

N/A

 

4.4 Years

 

 

6.2 Years

 

 

N/A

 

4.8 Years

 

 

8.3 Years

 

The Company added additional goodwill and core deposit intangible assets in conjunction with the Inland acquisition. Please refer to Note 3—Acquisition of a Business for further details.

The following table presents the estimated amortization expense for core deposit intangible and other intangible assets recognized at December 31, 2023:

 

 

Estimated
Amortization

 

2024

 

$

5,380

 

2025

 

 

4,473

 

2026

 

 

3,566

 

2027

 

 

2,676

 

2028

 

 

2,101

 

Thereafter

 

 

3,577

 

Total

 

$

21,773

 
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11—Income Taxes

The following were the components of provision for income taxes for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Current tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

6,349

 

 

$

(3,774

)

 

$

21,605

 

State and local

 

 

4,875

 

 

 

4,939

 

 

 

9,882

 

Total current tax expense

 

 

11,224

 

 

 

1,165

 

 

 

31,487

 

Deferred tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

23,569

 

 

 

25,157

 

 

 

2,966

 

State and local

 

 

3,009

 

 

 

407

 

 

 

(3,026

)

Total deferred tax expense (benefit)

 

 

26,578

 

 

 

25,564

 

 

 

(60

)

Provision for income taxes

 

$

37,802

 

 

$

26,729

 

 

$

31,427

 

The following is a reconciliation between the statutory U.S. federal income tax rate of 21% for 2023, 2022 and 2021, and the effective tax rate:

 

 

2023

 

 

2022

 

 

2021

 

 

Calculated tax expense at statutory rate

 

 

21.0

 

%

 

21.0

 

%

 

21.0

 

%

Increase (decrease) in income taxes resulting from:

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal income tax

 

 

5.4

 

 

 

4.8

 

 

 

5.4

 

 

Tax exempt income

 

 

(0.8

)

 

 

(1.0

)

 

 

(0.9

)

 

Share-based compensation

 

 

(0.2

)

 

 

(1.7

)

 

 

(0.2

)

 

Non-deductible expenses

 

 

0.5

 

 

 

0.2

 

 

 

—

 

 

Total income tax expense

 

 

25.9

 

%

 

23.3

 

%

 

25.3

 

%

The following were the significant components of the deferred tax assets and liabilities as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses

 

$

22,292

 

 

$

22,008

 

Interest on non-accrual loans

 

 

5,652

 

 

 

2,610

 

Allowance for credit losses - loans and leases and loan basis

 

 

38,204

 

 

 

23,721

 

Servicing assets

 

 

2,702

 

 

 

3,511

 

Premises and equipment

 

 

5,603

 

 

 

4,671

 

Other real estate owned

 

 

441

 

 

 

356

 

Net unrealized holding loss on securities available-for-sale

 

 

46,492

 

 

 

54,465

 

Accrued expenses

 

 

5,365

 

 

 

5,375

 

Other

 

 

5,761

 

 

 

3,343

 

Total deferred tax assets

 

 

132,512

 

 

 

120,060

 

Deferred tax liabilities:

 

 

 

 

 

 

Equipment leasing

 

 

(59,218

)

 

 

(32,872

)

Core deposit intangibles

 

 

(5,807

)

 

 

(2,814

)

Deposits

 

 

(343

)

 

 

—

 

Trust preferred securities

 

 

(4,413

)

 

 

(2,046

)

Net unrealized holding gain on cash flow hedges

 

 

(10,959

)

 

 

(12,506

)

Other

 

 

(1,714

)

 

 

(1,609

)

Total deferred tax liabilities

 

 

(82,454

)

 

 

(51,847

)

Net deferred tax assets

 

$

50,058

 

 

$

68,213

 

 

Note 11—Income Taxes (continued)

The following were the gross carryforwards available to offset future taxable income as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal gross NOL carryforwards - begin to expire in 2030

 

$

7,560

 

 

$

8,316

 

Federal gross NOL carryforwards - with no expiration

 

 

2,468

 

 

 

1,436

 

Illinois gross NLD carryforwards - begin to expire in 2031

 

 

268,969

 

 

 

265,961

 

Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of net operating loss ("NOL") and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50 percent occurs within a three‑year period. The Company has determined that such an ownership change occurred as of June 28, 2013 as a result of our recapitalization. This ownership change resulted in estimated annual limitations on the utilization of tax attributes, including net operating loss carryforwards. Approximately $756,000 of the restricted Federal net operating losses will become available each year related to Federal net operating losses generated prior to the 2013 recapitalization. In connection with the Company’s acquisition of Oak Park River Forest, the Company acquired $4.3 million of additional Federal net operating losses that are subject to an annual Section 382 limitation of approximately $781,000. In connection with the Company’s acquisition of Inland, the Company acquired $3.9 million of additional Federal net operating losses that are subject to an annual Section 382 limitation of approximately $4.2 million which is pro-rated to $2.1 million for 2023 based on the Inland acquisition date. The Federal net operating losses acquired in connection with the Oak Park River Forest and Inland acquisitions have no expiration.

During the second quarter of 2021, Illinois Senate Bill 2017 was passed which created a temporary limitation on Net Loss Deduction ("NLD") usage. For tax years 2021, 2022, and 2023, C Corporations are limited to applying a maximum of $100,000 of NLD to taxable income. NLDs that are limited during these years have an extended expiration date for the years in which they are limited. The extended expiration of the Company’s NLD carryforwards are from December 31, 2031 to December 31, 2043.

The Company and the Bank file consolidated income tax returns. The Company and the Bank are no longer subject to United States federal income tax examinations for years before 2020 and state income tax examinations for years before 2019.
v3.24.0.1
Deposits
 12 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
Deposits

Note 12—Deposits

The following is a summary of the Company’s deposits as of December 31, 2023 and 2022:

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Non-interest-bearing demand deposits

 

$

1,905,876

 

 

$

2,138,645

 

Interest-bearing checking accounts

 

 

577,609

 

 

 

592,098

 

Money market demand accounts

 

 

2,266,030

 

 

 

1,415,653

 

Other savings

 

 

542,532

 

 

 

625,798

 

Time deposits (below $250,000)

 

 

1,520,082

 

 

 

762,250

 

Time deposits ($250,000 and above)

 

 

364,870

 

 

 

160,677

 

Total deposits

 

$

7,176,999

 

 

$

5,695,121

 

There were $480.0 million and $251.5 million of brokered deposits included in Time deposits below $250,000 at December 31, 2023 and 2022, respectively.

At December 31, 2023, the scheduled maturities of time deposits were as follows:

 

 

Scheduled Maturities

 

2024

 

$

1,831,528

 

2025

 

 

39,153

 

2026

 

 

8,521

 

2027

 

 

4,639

 

2028

 

 

1,111

 

Total

 

$

1,884,952

 

 

The Company hedges interest rates on certain money market accounts using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. Refer to Note 21—Derivative Instruments and Hedging Activities for additional discussion.
v3.24.0.1
Other Borrowings
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Other Borrowings

Note 13—Other Borrowings

The following is a summary of the Company’s other borrowings as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal Home Loan Bank advances

 

$

325,000

 

 

$

625,000

 

Securities sold under agreements to repurchase

 

 

40,607

 

 

 

15,399

 

Term Loan

 

 

18,333

 

 

 

—

 

Line of credit

 

 

11,250

 

 

 

—

 

Total

 

$

395,190

 

 

$

640,399

 

Byline Bank has the capacity to borrow funds from the discount window of the FRB. As of December 31, 2023 and 2022, there were no outstanding advances under the FRB discount window line. The Company pledges loans and leases as collateral for the FRB discount window borrowing. Refer to Note 5—Loan and Lease Receivables and Allowance for Credit Losses for additional discussion.

On January 17, 2024, the Company entered into a Letter Agreement with the Federal Reserve Bank of Chicago that allows the Bank to access the Bank Term Funding Program ("BTFP"). On January 22, 2024, the Company opened an advance of $200.0 million from the FRB as part of the BTFP. Under the terms of the BTFP, the bank pledges securities to FBR Chicago as collateral for available advances. The advance carries a fixed interest rate of 4.91%, and matures on January 22, 2025. Advances under the BTFP are prepayable at any time without a prepayment penalty.

At December 31, 2023, FHLB fixed-rate advances totaled $75.0 million, with an interest rate of 5.45% and matured in January 2024. Total variable rate advances were $250.0 million at December 31, 2023, with an interest rate of 5.59% that may reset daily and matured in March 2024. The Company’s advances from the FHLB are collateralized by residential real estate loans, commercial real estate loans, and securities. The Company’s required investment in FHLB stock is $4.50 for every $100 in advances. Refer to Note 4—Securities for additional discussion, subject to the availability of proper collateral. The Bank’s maximum borrowing capacity is limited to 35% of total assets.

Securities sold under agreements to repurchase represent a demand deposit product offered to customers that sweep balances in excess of the FDIC insurance limit into overnight repurchase agreements. The Company pledges securities as collateral for the repurchase agreements. Refer to Note 4—Securities for additional discussion.

On October 13, 2016, the Company entered into a $30.0 million revolving credit agreement with a correspondent bank. Through subsequent amendments, the revolving credit agreement was reduced to $15.0 million. The amended revolving line of credit bears interest at either SOFR plus 205 basis points or Prime Rate minus 75 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. On May 26, 2023, the Company amended the agreement with the lender, which provides for: i) the renewal of the revolving line-of-credit facility of up to $15.0 million, extending its maturity date to May 26, 2024; and ii) a new term loan facility in the principal amount of up to $20.0 million with a maturity date of May 26, 2026, each subject to the existing Negative Pledge Agreement dated October 11, 2018, as amended. The term loan bears interest at either SOFR plus 230 basis points or Prime Rate minus 50 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 50 basis points.

At December 31, 2023, the variable term loan had a $18.3 million outstanding balance and an interest rate of 7.64%. At December 31, 2023, the variable rate line of credit had a $11.3 million outstanding balance and an interest rate of 7.39%. At December 31, 2022, the line of credit had no outstanding balance.

The following table presents short-term credit lines available for use as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal Home Loan Bank line

 

$

2,781,747

 

 

$

1,903,549

 

Federal Reserve Bank of Chicago discount window line

 

 

866,490

 

 

 

804,578

 

Available federal funds lines

 

 

123,750

 

 

 

135,000

 

The Company hedges interest rates on borrowed funds using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. Refer to Note 21—Derivative Instruments and Hedging Activities for additional discussion.
v3.24.0.1
Subordinated Notes and Junior Subordinated Debentures
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Subordinated Notes and Junior Subordinated Debentures

Note 14—Subordinated Notes and Junior Subordinated Debentures

During 2020, the Company issued $75.0 million in aggregate principal amount of its fixed-to-floating subordinated notes that mature on July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month Secured Overnight Financing Rate plus 588 basis points thereafter until maturity. The transaction resulted in debt issuance costs of approximately $1.7 million that are being amortized over 10 years.

As of December 31, 2023 and 2022, the liability outstanding relating to the subordinated notes, net of unamortized debt issuance costs, was $73.9 million and $73.7 million, respectively. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the FRB to the extent such approval is then required. The subordinated notes qualify as Tier 2 capital for regulatory purposes.

At December 31, 2023 and 2022, the Company’s junior subordinated debentures by issuance were as follows:

 

 

 

 

Aggregate Principal Amount

 

 

 

 

 

Name of Trust

 

Stated
Maturity

 

December 31, 2023

 

 

December 31, 2022

 

 

Contractual Rate at December 31, 2023

 

Interest Rate Spread(1)

Metropolitan Statutory Trust I

 

March 17, 2034

 

$

35,000

 

 

$

35,000

 

 

8.43%

 

SOFR + spread adjustment + 2.79%

First Evanston Bancorp Trust I

 

March 15, 2035

 

 

10,000

 

 

 

10,000

 

 

7.43%

 

SOFR + spread adjustment + 1.78%

AmeriMark Capital Trust I

 

April 23, 2034

 

 

5,000

 

 

 

—

 

 

8.42%

 

SOFR + spread adjustment + 2.75%

Inland Bancorp Trust II

 

September 15, 2035

 

 

10,000

 

 

 

—

 

 

7.25%

 

SOFR + spread adjustment + 1.60%

Inland Bancorp Trust III

 

December 15, 2036

 

 

10,000

 

 

 

—

 

 

7.30%

 

SOFR + spread adjustment + 1.65%

Inland Bancorp Trust IV

 

June 6, 2037

 

 

7,000

 

 

 

—

 

 

7.24%

 

SOFR + spread adjustment + 1.62%

Inland Bancorp Trust V

 

September 15, 2037

 

 

10,000

 

 

 

—

 

 

7.07%

 

SOFR + spread adjustment + 1.42%

Total liability, at par

 

 

 

 

87,000

 

 

 

45,000

 

 

 

 

 

Discount

 

 

 

 

(16,548

)

 

 

(7,662

)

 

 

 

 

Total liability, at carrying value

 

 

 

$

70,452

 

 

$

37,338

 

 

 

 

 

(1) SOFR is three month SOFR and the spread adjustment is 0.26161%

In 2004, the Company’s predecessor, Metropolitan Bank Group, Inc., issued $35.0 million floating rate junior subordinated debentures to Metropolitan Statutory Trust I, which was formed for the issuance of trust preferred securities. Beginning on September 14, 2023, the interest rate reset to the three-month CME Secured Overnight Financing Rate ("SOFR") plus a tenor spread adjustment of 0.26161% plus 2.79% (8.43% and 7.53% at December 31, 2023 and 2022, respectively). Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2009.

As part of the acquisition of First Evanston Bancorp, Inc. ("First Evanston"), the Company assumed the obligations to First Evanston Bancorp Trust I of $10.0 million in principal amount, which was formed for the issuance of trust preferred securities. Beginning on September 15, 2023, the interest rate reset to the three-month SOFR plus a tenor spread adjustment of 0.26161% plus 1.78% (7.43% and 6.55% at December 31, 2023 and 2022, respectively), which is in effect until the debentures mature in 2035. Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2010. The Company has the option to defer interest payments on the debentures from time to time for a period not to exceed five consecutive years.

As part of the Inland acquisition, the Company assumed the obligations to several trust preferred securities. Refer to Note 3—Acquisition of a Business for further details. Interest rates are calculated as the three-month SOFR plus a tenor spread adjustment of 0.26161% plus negotiated additional basis points. Refer to table above for contractual rates and interest rate spread calculation. Interest is paid on a quarterly basis.

The Trusts are not consolidated with the Company. Accordingly, the Company reports the subordinated debentures held by the Trusts as liabilities. The Company owns all of the common securities of each trust. The junior subordinated debentures qualify, and are treated as, Tier 1 regulatory capital of the Company subject to regulatory limitations. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment.
v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans

Note 15—Employee Benefit Plans

The Company’s defined contribution 401(k) savings plan (the "Plan") covers substantially all employees that have completed certain service requirements. The Board of Directors determines the amount of any discretionary profit sharing contribution made to the Plan. There were no profit sharing contributions to the Plan for the years ended December 31, 2023, 2022, or 2021. The net assets of the Plan are not included in the Consolidated Statements of Financial Condition.

The 401(k) employer match contribution is equal to 100% of the first 3% and 50% for the next 2% contributed to the Plan by employees. Total expense for the employer contributions made to the Plan were $3.3 million, $3.0 million and, $2.6 million during the years ended December 31, 2023, 2022 and 2021, respectively.

On June 14, 2017, the Company’s Board of Directors adopted the Byline Bancorp, Inc. Employee Stock Purchase Plan (the "ESPP") within the meaning of Section 423 of the Internal Revenue Code, as amended. The ESPP allows employees to purchase shares of the Company’s common stock at a discount to the market price of the stock through automatic payroll deductions. A total of 200,000 shares of common stock were reserved for sale under the ESPP, subject to adjustment in accordance with the terms of the ESPP. On June 7, 2022, an additional 200,000 shares were reserved. The Company issued 73,612 shares in connection with the ESPP for the year ended December 31, 2023, leaving 152,524 available at December 31, 2023. The Company recognized $388,000, $169,000, and $401,000 of compensation expense for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Commitments and Contingent Liabilities
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities

Note 16—Commitments and Contingent Liabilities

Legal contingencies—In the ordinary course of business, the Company and Bank have various outstanding commitments and contingent liabilities that are not recognized in the accompanying consolidated financial statements. In addition, the Company may be a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is currently not expected to have a material adverse effect on the Company’s Consolidated Financial Statements.

Operating lease commitments—Refer to Note 9—Leases for additional information on operating lease commitments.

Commitments to extend credit—The Company is party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contractual or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of non‑performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for funded instruments. The Company does not anticipate any material losses as a result of the commitments and letters of credit. Refer to Note 5—Loans and Lease Receivables and Allowance for Credit Losses for additional information on the allowance for unfunded commitments.

The following table summarizes the contract or notional amount of outstanding loan and lease commitments at December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Commitments to extend credit

 

$

269,325

 

 

$

2,013,819

 

 

$

2,283,144

 

 

$

258,049

 

 

$

1,821,175

 

 

$

2,079,224

 

Letters of credit

 

 

612

 

 

 

67,443

 

 

 

68,055

 

 

 

536

 

 

 

61,328

 

 

 

61,864

 

Total

 

$

269,937

 

 

$

2,081,262

 

 

$

2,351,199

 

 

$

258,585

 

 

$

1,882,503

 

 

$

2,141,088

 

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties).

Letters of credit are conditional commitments issued by the Company to guarantee to a third-party the performance of a customer. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Note 16—Commitments and Contingent Liabilities (continued)

Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.00% to 15.00% and maturities up to 2053. Variable rate loan commitments have interest rates ranging from 4.00% to 18.50% and maturities up to 2049.
v3.24.0.1
Fair Value Measurement
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 17—Fair Value Measurement

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. In addition, the Company has the ability to obtain fair values for markets that are not accessible. These types of inputs create the following fair value hierarchy:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available. The Company’s own data used to develop unobservable inputs may be adjusted for market considerations when reasonably available.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to assets and liabilities.

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a recurring basis:

Securities available-for-sale—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

The Company’s methodology for pricing non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Company references a publicly issued bond by the same issuer if available as well as other additional key metrics to support the credit worthiness. Typically, pricing for these types of bonds would require a higher yield than a similar rated bond from the same issuer. A reduction in price is applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one notch lower (i.e., a "AA" rating for a comparable bond would be reduced to "AA-" for the Company’s valuation). In 2023 and 2022, all of the ratings derived by the Company were "BBB-" or better with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined, the Company obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets.

Equity and other securities—The Company utilizes the same fair value measurement methodology for equity and other securities as detailed in the securities available-sale portfolio above.

Servicing assets—Fair value is based on a loan-by-loan basis taking into consideration the original term to maturity, the current age of the loan and the remaining term to maturity. The valuation methodology utilized for the servicing assets begins with generating estimated future cash flows for each servicing asset, based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows are then calculated utilizing market-based discount rate assumptions.

Derivative instruments—Interest rate derivatives are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are validated by comparison with valuations provided by the respective counterparties. Derivative financial instruments are included in other assets and other liabilities in the Consolidated Statements of Financial Condition.

Note 17—Fair Value Measurement (continued)

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

115,434

 

 

$

115,434

 

 

$

—

 

 

$

—

 

U.S. Government agencies

 

 

130,695

 

 

 

—

 

 

 

130,695

 

 

 

—

 

Obligations of states, municipalities, and political
   subdivisions

 

 

82,275

 

 

 

—

 

 

 

82,275

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

695,803

 

 

 

—

 

 

 

695,803

 

 

 

—

 

Non-Agency

 

 

100,260

 

 

 

—

 

 

 

100,260

 

 

 

—

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

147,204

 

 

 

—

 

 

 

147,204

 

 

 

—

 

Corporate securities

 

 

36,171

 

 

 

—

 

 

 

36,171

 

 

 

—

 

Asset-backed securities

 

 

34,638

 

 

 

—

 

 

 

34,638

 

 

 

—

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,554

 

 

 

2,554

 

 

 

—

 

 

 

—

 

Equity securities

 

 

6,189

 

 

 

—

 

 

 

5,908

 

 

 

281

 

Servicing assets

 

 

19,844

 

 

 

—

 

 

 

—

 

 

 

19,844

 

Derivative assets

 

 

56,923

 

 

 

—

 

 

 

56,923

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

19,345

 

 

 

—

 

 

 

19,345

 

 

 

—

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

40,723

 

 

$

40,723

 

 

$

—

 

 

$

—

 

U.S. Government agencies

 

 

130,364

 

 

 

—

 

 

 

130,364

 

 

 

—

 

Obligations of states, municipalities, and political
   subdivisions

 

 

61,876

 

 

 

—

 

 

 

61,876

 

 

 

—

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

595,796

 

 

 

—

 

 

 

595,796

 

 

 

—

 

Non-Agency

 

 

106,249

 

 

 

—

 

 

 

106,249

 

 

 

—

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

157,030

 

 

 

—

 

 

 

157,030

 

 

 

—

 

Corporate securities

 

 

41,436

 

 

 

 

 

 

41,436

 

 

 

—

 

Asset-backed securities

 

 

40,957

 

 

 

—

 

 

 

40,957

 

 

 

—

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,518

 

 

 

2,518

 

 

 

—

 

 

 

—

 

Equity securities

 

 

5,471

 

 

 

—

 

 

 

4,805

 

 

 

666

 

Servicing assets

 

 

19,172

 

 

 

—

 

 

 

—

 

 

 

19,172

 

Derivative assets

 

 

65,342

 

 

 

—

 

 

 

65,342

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

17,817

 

 

 

—

 

 

 

17,817

 

 

 

—

 

 

Note 17—Fair Value Measurement (continued)

The Company has originated, and acquired through a business combination, servicing assets classified as Level 3 of the fair value hierarchy. The Company acquired single‑issuer trust preferred securities which are categorized as Level 3 of the fair value hierarchy. These securities are classified as equity securities consistent with accounting guidance.

The Company did not have any transfers to or from Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2023 and 2022.

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

 

Years Ended December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Investment Securities

 

 

Servicing Assets

 

Balance, beginning of period

$

666

 

 

$

686

 

 

$

19,172

 

 

$

23,744

 

Additions, net

 

—

 

 

 

—

 

 

 

5,761

 

 

 

7,171

 

Maturities

 

(400

)

 

 

—

 

 

 

—

 

 

 

—

 

Accretion

 

82

 

 

 

—

 

 

 

—

 

 

 

—

 

Change in fair value

 

(67

)

 

 

(20

)

 

 

(5,089

)

 

 

(11,743

)

Balance, end of period

$

281

 

 

$

666

 

 

$

19,844

 

 

$

19,172

 

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2023:

Financial Instruments

 

Valuation Technique

 

Unobservable Inputs

 

Range of
Inputs

 

Weighted
Average
Input

 

 

Impact to
Valuation from an
Increased or
Higher Input Value

Single issuer trust preferred

 

Discounted cash flow

 

Discount rate

 

7.9%

 

 

7.9

%

 

Decrease

Servicing assets

 

Discounted cash flow

 

Prepayment speeds

 

(1.0)%—31.9%

 

 

14.1

%

 

Decrease

 

 

 

 

Discount rate

 

(15.9)%—55.6%

 

 

14.3

%

 

Decrease

 

 

 

Expected weighted
average loan life

 

0.0—9.2 years

 

3.7 years

 

 

Increase

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a non-recurring basis:

Individually Evaluated Loans—The Company individually evaluates loans that do not share similar risk characteristics, including non-accrual loans. Specific allowance for credit losses is measured based on a discounted cash flow of ongoing operations, discounted at the loan’s original effective interest rate, or a calculation of the fair value of the underlying collateral less estimated selling costs. Valuations of individually assessed loans that are collateral dependent are supported by third party appraisals in accordance with the Bank’s credit policy. Accordingly, individually evaluated loans are classified as Level 3.

Assets held for sale—Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based on the lower of carrying value or its fair value, less estimated costs to sell.

Other real estate owned—Certain assets held within other real estate owned represent real estate or other collateral that has been adjusted to its estimated fair value, less cost to sell, as a result of transferring from the loan portfolio at the time of foreclosure or repossession and based on management’s periodic impairment evaluation. From time to time, non-recurring fair value adjustments to other real estate owned are recorded to reflect partial write-downs based on an observable market price or current appraised value of property.

 

Note 17—Fair Value Measurement (continued)

Adjustments to fair value based on such non-recurring transactions generally result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to impairment. The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, as of December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

51,978

 

 

$

—

 

 

$

—

 

 

$

51,978

 

Residential real estate

 

 

3,593

 

 

 

—

 

 

 

—

 

 

 

3,593

 

Construction, land development, and other land

 

 

813

 

 

 

—

 

 

 

—

 

 

 

813

 

Commercial and industrial

 

 

29,869

 

 

 

—

 

 

 

—

 

 

 

29,869

 

Assets held for sale

 

 

4,484

 

 

 

—

 

 

 

—

 

 

 

4,484

 

Other real estate owned

 

 

1,200

 

 

 

—

 

 

 

—

 

 

 

1,200

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

31,858

 

 

$

—

 

 

$

—

 

 

$

31,858

 

Residential real estate

 

 

879

 

 

 

—

 

 

 

—

 

 

 

879

 

Construction, land development, and other land

 

 

5,276

 

 

 

—

 

 

 

—

 

 

 

5,276

 

Commercial and industrial

 

 

38,874

 

 

 

—

 

 

 

—

 

 

 

38,874

 

Assets held for sale

 

 

8,673

 

 

 

—

 

 

 

—

 

 

 

8,673

 

Other real estate owned

 

 

4,717

 

 

 

—

 

 

 

—

 

 

 

4,717

 

The following methods and assumptions were used by the Company in estimating fair values of other assets and liabilities for disclosure purposes:

Cash and due from banks and interest bearing deposits with other banks—For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities held-to-maturity—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

Restricted stock—The fair value has been determined to approximate cost.

Loans held for sale—The fair value of loans held for sale are based on quoted market prices, where available, and determined by discounted estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans adjusted to reflect the inherent credit risk.

Loan and lease receivables, net—For certain variable rate loans that reprice frequently and with no significant changes in credit risk, fair value is estimated at carrying value. The fair value of other types of loans is estimated using an exit price notion for 2023 and 2022 values. It is estimated by discounting future cash flows, using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits—The fair value of demand deposits, savings accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting future cash flows, using rates currently offered for deposits of similar remaining maturities.

 

Note 17—Fair Value Measurement (continued)

Federal Home Loan Bank advances—The fair value of FHLB advances is estimated by discounting the agreements based on maturities using rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date.

Securities sold under agreements to repurchase—The carrying amount approximates fair value due to maturities of less than ninety days.

Term loan—The carrying amount approximates fair value, given the variable interest rate and repricing of interest.

Line of credit—The carrying amount approximates fair value, given the variable interest rate and repricing of interest.

Subordinated notes—The fair value is based on available market prices.

Junior subordinated debentures—The fair value of junior subordinated debentures, in the form of trust preferred securities, is determined using rates currently available to the Company for debt with similar terms and remaining maturities.

Accrued interest receivable and payable—The carrying amount approximates fair value.

Commitments to extend credit and letters of credit—The fair values of these off-balance sheet commitments to extend credit and commercial and letters of credit are not considered practicable to estimate because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs.

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy at December 31, 2023 and 2022 are as follows:

 

Fair Value

 

 

2023

 

 

2022

 

 

Hierarchy
Level

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

1

 

 

$

60,431

 

 

$

60,431

 

 

$

62,274

 

 

$

62,274

 

Interest bearing deposits with other banks

 

2

 

 

 

165,705

 

 

 

165,705

 

 

 

117,079

 

 

 

117,079

 

Securities held-to-maturity

 

2

 

 

 

1,157

 

 

 

1,149

 

 

 

2,705

 

 

 

2,672

 

Restricted stock

 

2

 

 

 

16,304

 

 

 

16,304

 

 

 

28,202

 

 

 

28,202

 

Loans held for sale

 

3

 

 

 

18,005

 

 

 

19,136

 

 

 

47,823

 

 

 

40,657

 

Loans and lease receivables, net (less individually
  evaluated loans of fair value $86,253 
  and $76,887, as of December 31,
  2023 and 2022, respectively)

 

3

 

 

 

6,496,367

 

 

 

6,326,413

 

 

 

5,262,447

 

 

 

5,259,991

 

Accrued interest receivable

 

3

 

 

 

43,922

 

 

 

43,922

 

 

 

29,815

 

 

 

29,815

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

2

 

 

 

1,905,876

 

 

 

1,905,876

 

 

 

2,138,645

 

 

 

2,138,645

 

Interest-bearing deposits

 

2

 

 

 

5,271,123

 

 

 

5,268,926

 

 

 

3,556,476

 

 

 

3,554,318

 

Accrued interest payable

 

2

 

 

 

22,233

 

 

 

22,233

 

 

 

4,494

 

 

 

4,494

 

Federal Home Loan Bank advances

 

2

 

 

 

325,000

 

 

 

325,000

 

 

 

625,000

 

 

 

625,000

 

Securities sold under repurchase agreement

 

2

 

 

 

40,607

 

 

 

40,607

 

 

 

15,399

 

 

 

15,399

 

Term loan

 

2

 

 

 

18,333

 

 

 

18,333

 

 

 

—

 

 

 

—

 

Line of credit

 

2

 

 

 

11,250

 

 

 

11,250

 

 

 

—

 

 

 

—

 

Subordinated notes

 

2

 

 

 

73,866

 

 

 

76,063

 

 

 

73,691

 

 

 

70,925

 

Junior subordinated debentures

 

3

 

 

 

70,452

 

 

 

72,701

 

 

 

37,338

 

 

 

40,131

 
v3.24.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Note 18—Share-Based Compensation

In June 2017, the Company's Board of Directors adopted, and the Company's stockholder approved, the 2017 Omnibus Incentive Compensation Plan (the "Omnibus Plan"). The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and other equity-based, equity-related or cash-based awards. A total of 2,600,000 shares of our common stock have been reserved for issuance under the Omnibus Plan. As of December 31, 2023, there were 1,181,493 shares available for future grants under the Omnibus Plan.

The Company primarily grants time-based restricted share awards that vest over a one to four year period, subject to continued employment. The Company also grants performance-based restricted share awards. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period, measured against a peer group consisting of publicly-traded bank holding companies. The value associated with the grant of restricted stock awards is determined by multiplying the fair market value of the Company's common stock on the grant date by the number of shares awarded.

During 2023, the Company granted 305,117 shares of restricted common stock, par value $0.01 per share. Of this total, 6,113 restricted shares will vest in one year, 209,772 restricted shares will vest ratably over three years on each anniversary of the grant date, and 37,850 restricted shares will cliff vest on the third anniversary of the grant date, all subject to continued employment. In addition, 51,382 performance based shares were granted during 2023. The number of performance-based shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period ending December 31, 2025, measured against the KBW Regional Bank Index. Results will be measured cumulatively at the end of the three years and any earned shares will vest on the third anniversary of the grant date.

The following table discloses the changes in all unvested restricted shares for the year ended December 31, 2023:

 

 

Omnibus Plan

 

 

 

Number of Shares

 

 

Weighted Average Grant Date Fair Value

 

Beginning balance, January 1, 2023

 

 

581,337

 

 

$

22.93

 

Granted

 

 

305,117

 

 

 

24.34

 

Incremental performance shares vested and issued

 

 

1,826

 

 

 

 

Vested

 

 

(238,638

)

 

 

21.18

 

Forfeited

 

 

(22,371

)

 

 

23.48

 

Ending balance outstanding at December 31, 2023

 

 

627,271

 

 

 

24.24

 

A total of 238,638, 234,603 and 148,577 restricted shares vested during the years ended December 31, 2023, 2022, and 2021, respectively. The fair value of restricted shares that vested during the years ended December 31, 2023, 2022 and 2021 were $5.7 million, $5.9 million and $3.4 million, respectively.

The Company recognizes share-based compensation based on the estimated fair value of the restricted stock at the grant date. The fair value of the total stock return performance-based awards granted in 2023 were calculated based on a Monte Carlo simulation, using expected volatilities between 38.11% and 39.80%, a risk-free rate of 4.42%, and a simulation term of 2.85 years. Based on the equal weighing of total stock return and return on average assets, the grant date fair value of the performance based awards was $25.20 per share. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations.

The following table summarizes restricted stock compensation expense for the years ended:

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Total share-based compensation - restricted stock

 

$

6,715

 

 

$

5,334

 

 

$

4,018

 

Income tax benefit

 

 

1,806

 

 

 

1,474

 

 

 

1,108

 

Unrecognized compensation expense - restricted stock

 

 

9,371

 

 

 

9,151

 

 

 

6,991

 

Weighted-average amortization period remaining

 

1.9 years

 

 

2.3 years

 

 

2.2 years

 

The fair value of the unvested restricted stock awards at December 31, 2023 was $14.8 million.

 

Note 18—Share-Based Compensation (continued)

During February 2024, the Company granted 347,492 shares of restricted common stock, par value $0.01 per share. Of this total, 268,595 restricted shares will vest ratably over three years on each anniversary of the grant date and 12,861 restricted shares will cliff vest on the third anniversary of the grant date, all subject to continued employment. In addition, 66,036 performance-based restricted shares were included in the February 2024 grant. The number of performance-based shares which may be earned under the award is dependent upon the Company’s total stockholder return and return on average assets, weighted equally, over a three-year period ending December 31, 2026, measured against the KBW Regional Bank Index. Results will be measured cumulatively at the end of the three years and any earned shares will vest on the third anniversary of the grant date.

In October 2014, the Company adopted the Byline Bancorp, Inc. Equity Incentive Plan ("BYB Plan"). The maximum number of shares available for grants under this plan was 2,476,122 shares. The Company granted 1,846,968 options to purchase shares under this plan. In June 2017, the Board of Directors terminated the BYB Plan and no future grants can be made under this plan. Options to purchase a total of 768,564 shares remain outstanding under the BYB Plan as of December 31, 2023.

The types of stock options granted under the BYB Plan were Time Options and Performance Options. The exercise price of each option is equal to the fair value of the stock as of the date of grant. These option awards had vesting periods ranging from one to five years and have 10-year contractual terms. Stock volatility was computed as the average of the volatilities of peer group companies. All outstanding stock options were fully vested and exercisable at December 31, 2023.

The fair values of the stock options were determined using the Black-Scholes-Merton model for Time Options and a Monte Carlo simulation model for Performance Options.

The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2023:

 

 

BYB Plan

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price

 

 

Intrinsic Value

 

 

Weighted Average Remaining Contractual Term (in Years)

 

Beginning balance, January 1, 2023

 

 

768,564

 

 

$

11.31

 

 

$

8,960

 

 

 

2.5

 

Expired

 

 

—

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

 

 

 

 

 

 

 

Forfeited

 

 

—

 

 

 

 

 

 

 

 

 

 

Ending balance outstanding at December 31, 2023

 

 

768,564

 

 

$

11.31

 

 

$

9,413

 

 

 

1.5

 

Exercisable at December 31, 2023

 

 

768,564

 

 

$

11.31

 

 

$

9,413

 

 

 

1.5

 

No stock options were exercised during the year ended December 31, 2023, and a total of 568,484, and 53,531 stock options were exercised during the years ended December 31, 2022 and 2021, respectively. Proceeds from the exercise of stock options were $470,000 and $751,000 with a related tax benefit of $2.3 million and $121,000, for the years ended December 31, 2022 and 2021, respectively. No stock options vested during the year ended December 31, 2023. No stock option compensation expense was recognized for the years ended December 31, 2023, 2022 and 2021.

Pursuant to the terms of the Agreement and Plan of Merger with First Evanston and its subsidiaries, dated as of November 27, 2017 (the "First Evanston Merger Agreement"), each outstanding First Evanston option held by a participant in the First Evanston Bancorp, Inc. Stock Incentive Plan (the "FEB Plan") ceased to represent a right to acquire shares of First Evanston common stock and was assumed and converted automatically into a fully vested and exercisable adjusted option to purchase shares of Byline common stock (each an "Adjusted Option"). In accordance with the First Evanston Merger Agreement, the number of shares of Byline common stock to which each such Adjusted Option relates is equal to the product (rounded down to the nearest whole share of Byline common stock) of: (a) the number of shares of First Evanston common stock subject to the First Evanston option immediately prior to May 31, 2018, multiplied by (b) 4.725. Each Adjusted Option has an exercise price per share of Byline common stock equal to the quotient (rounded up to the nearest whole cent) of (x) the per share exercise price of such First Evanston option immediately prior to May 31, 2018, divided by (y) 4.725. The description of the conversion process is based on, and qualified by, the First Evanston Merger Agreement.

Note 18—Share-Based Compensation (continued)

The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2023:

 

 

FEB Plan

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price

 

 

Intrinsic Value

 

 

Weighted Average Remaining Contractual Term (in Years)

 

Beginning balance, January 1, 2023

 

 

162,288

 

 

$

11.66

 

 

$

1,836

 

 

 

2.5

 

Exercised

 

 

(59,153

)

 

$

11.14

 

 

$

590

 

 

 

 

Forfeited

 

 

—

 

 

 

 

 

 

 

 

 

 

Expired

 

 

—

 

 

 

 

 

 

 

 

 

 

Ending balance outstanding at December 31, 2023

 

 

103,135

 

 

$

11.95

 

 

$

1,197

 

 

 

1.9

 

Exercisable at December 31, 2023

 

 

103,135

 

 

$

11.95

 

 

$

1,197

 

 

 

1.9

 

A total of 59,153, 7,559, and 62,366 stock options were exercised during the years ended December 31, 2023, 2022 and 2021, respectively. Proceeds from the exercise of stock options were $659,000, $80,000 and $705,000 with a related tax benefit of $158,000, $25,000 and $153,000, for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

Note 19—Related Party Transactions

Loans to related parties—Loans that may be made to the Bank’s executive officers, as defined in 12 CFR 215 (Regulation O), directors, principal stockholders and their affiliates are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability. As of December 31, 2023 and 2022, there were no material loans made to the related parties as described.

Deposits from related parties—Deposits from related parties were not material as of December 31, 2023 and 2022.

Other—As of December 31, 2023 and 2022, there were no receivables outstanding from related parties.
v3.24.0.1
Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2023
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Capital Requirements

Note 20—Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by their respective banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off‑balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital ("CET1"), Tier 1 capital and total capital to risk‑weighted assets and of Tier 1 capital to average consolidated assets, as defined in the regulations.

As of December 31, 2023, the most recent notification from the FDIC categorized the Bank as well‑capitalized under the framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The required regulatory capital ratios are set forth in the following tables along with the minimum capital amounts required for the Company and the Bank and the minimum capital amount required for the Bank to be considered to be well capitalized. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2023 and 2022 are also presented.

 

 

Actual

 

 

Minimum Capital
Required

 

 

Required to be
Considered
Well Capitalized

 

2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

1,123,568

 

 

 

13.38

%

 

$

671,576

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

1,085,915

 

 

 

12.97

%

 

 

669,904

 

 

 

8.00

%

 

$

837,380

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

956,027

 

 

 

11.39

%

 

$

503,682

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.86

%

 

 

502,428

 

 

 

6.00

%

 

$

669,904

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to risk weighted
   assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

869,027

 

 

 

10.35

%

 

$

377,762

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.86

%

 

 

376,821

 

 

 

4.50

%

 

$

544,297

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

956,027

 

 

 

10.86

%

 

$

352,089

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.30

%

 

 

351,735

 

 

 

4.00

%

 

$

439,669

 

 

 

5.00

%

 

 

 

Actual

 

 

Minimum Capital
Required

 

 

Required to be
Considered
Well Capitalized

 

2022

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

900,806

 

 

 

13.00

%

 

$

554,436

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

852,047

 

 

 

12.34

%

 

 

552,507

 

 

 

8.00

%

 

$

690,633

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

751,887

 

 

 

10.85

%

 

$

415,827

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

11.27

%

 

 

414,380

 

 

 

6.00

%

 

$

552,507

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to risk weighted
   assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

706,887

 

 

 

10.20

%

 

$

311,870

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

11.27

%

 

 

310,785

 

 

 

4.50

%

 

$

448,912

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

751,887

 

 

 

10.29

%

 

$

292,258

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

10.67

%

 

 

291,741

 

 

 

4.00

%

 

$

364,676

 

 

 

5.00

%

 

Note 20—Regulatory Capital Requirements (continued)

The ratios above reflect the Company’s election to opt into the regulators’ joint CECL transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios reflect 50% of the CECL impact as of December 31, 2023 and 25% as of December 31, 2022.

The Company and Byline Bank must maintain a capital conservation buffer consisting of CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. The Company and Byline Bank's capital ratios exceeded the minimum capital requirement, including the conservation buffers, by 5.85% and 7.36%, respectively, as of December 31, 2023.

Provisions of state and federal banking regulations may limit, by statute, the amount of dividends that may be paid to the Company by Byline Bank without prior approval of Byline Bank’s regulatory agencies. The Company is economically dependent on the cash dividends received from Byline Bank. These dividends represent the Company’s primary cash flow from operating activities used to service its obligations. For years ended December 31, 2023 and 2022, the Company received $35.0 million and $24.0 million, respectively, in cash dividends from Byline Bank. These funds were primarily used to pay interest on the subordinated notes, subordinated debentures issued in connection with trust preferred securities, dividends on the Company’s common and preferred stock, and other corporate expenses.

v3.24.0.1
Derivative Instruments and Hedge Activities
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedge Activities

Note 21—Derivative Instruments and Hedge Activities

As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

 

 

 

Fair Value

 

 

 

 

 

Fair Value

 

 

 

Notional
Amount

 

 

Other
Assets

 

 

Other
Liabilities

 

 

Notional
Amount

 

 

Other
Assets

 

 

Other
Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps designated
  as cash flow hedges

 

$

650,000

 

 

$

37,475

 

 

$

—

 

 

$

550,000

 

 

$

47,249

 

 

$

—

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other interest rate derivatives

 

 

706,126

 

 

 

19,447

 

 

 

(19,345

)

 

 

545,346

 

 

 

18,093

 

 

 

(17,817

)

Other credit derivatives

 

 

3,602

 

 

 

1

 

 

 

—

 

 

 

6,678

 

 

 

—

 

 

 

—

 

Total derivatives

 

$

1,359,728

 

 

$

56,923

 

 

$

(19,345

)

 

$

1,102,024

 

 

$

65,342

 

 

$

(17,817

)

As of the effective time of the transaction reported in Note 3—Acquisition of a Business, Byline acquired and assumed two types of derivative instruments. Interest rate swap agreements previously designated as cash flow hedges of certain junior subordinated debentures issued to capital trusts had notional amounts of $42.0 million and had a fair value of $3.5 million included in accrued interest receivable and other assets. In July 2023, the Company terminated the interest rate swap agreements resulting in a net gain of $6,000. Other interest rate swap agreements not designated as hedging instruments had notional amounts of $67.7 million and fair values of $6.2 million reported in accrued interest receivable and other assets and accrued interest payable and other liabilities as of the effective time of the transaction.

Interest rate swaps designated as cash flow hedges—Cash flow hedges of interest payments associated with certain other borrowings had notional amounts totaling $650.0 million and $550.0 million as of December 31, 2023 and 2022, respectively. The Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value of the derivatives hedging instrument with the fair value of the designated hedged transactions. As of December 31, 2023, the cash flow hedges aggregating $650.0 million in notional amounts are comprised of $450.0 million pay-fixed interest rate swaps associated with certain deposits and other borrowings, and $200.0 million receive-fixed interest rate swaps associated with certain variable rate loans.

As of December 31, 2023, pay-fixed interest rate swaps are comprised of six effective hedges. Receive-fixed interest rate swaps totaling $200.0 million are comprised of two effective hedges totaling $100.0 million, and two $50.0 million forward-starting swaps that are effective in March and August of 2024.

Note 21—Derivative Instruments and Hedge Activities (continued)

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the unrealized gain or loss on the derivatives is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest income or expense in the same period during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest income or expense as interest payments are made on the hedged instruments. Interest recorded on these swap transactions included $15.3 million and $1.0 million of interest income recorded during the year ended December 31, 2023, and 2022, respectively, and is reported as a component of interest expense on deposits and other borrowings. As of December 31, 2023, the Company estimates $16.6 million of the net unrealized gain to be reclassified as a net decrease to interest expense during the next twelve months.

Accumulated other comprehensive income also includes the amortization of the remaining balance related to terminated interest rate swaps designated as cash flow hedges, which are over the original life of the cash flow hedge. In March 2023, the Company terminated interest rate swaps designated as cash flow hedges totaling $100.0 million, of which $50.0 million became effective in May 2023 and $50.0 million became effective in June 2023. The transaction resulted in a gain of $4.2 million, net of tax, which was the clean value at termination date and began amortizing as a decrease to interest expense on the effective dates. The remaining unamortized balance was $3.7 million and $15,000 as of December 31, 2023 and 2022, respectively.

The following table reflects the cash flow hedges as of December 31, 2023:

 

Notional amounts

 

$

650,000

 

Derivative assets fair value

 

 

37,475

 

Derivative liabilities fair value

 

 

—

 

Weighted average remaining maturity

 

3.0 years

 

Receive rates are determined at the time the swaps become effective. As of December 31, 2023, the weighted average pay rates of the six effective pay-fixed hedges for $450.0 million were 1.04% and the weighted average receive rates were 5.32%. As of December 31, 2023, the weighted average pay rates of the receive-fixed interest rate swaps of $100.0 million were 8.50% and the weighted average receive rates were 7.44%.

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

Amount of
Gain
Recognized in
OCI

 

 

Amount of Gain
Reclassified
from OCI to
Income as a
Decrease to
Interest Expense

 

 

Amount of
Gain (Loss)
Recognized in
Other
Non-Interest
Income

 

 

Amount of
Gain
Recognized in
OCI

 

 

Amount of Gain
Reclassified
from OCI to
Income as a
Decrease to
Interest Expense

 

 

Amount of
Gain (Loss)
Recognized in
Other
Non-Interest
Income

 

Interest rate swaps

 

$

9,605

 

 

$

15,336

 

 

$

—

 

 

$

43,977

 

 

$

1,022

 

 

$

—

 

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Other interest rate derivatives—The total combined notional amount was $706.1 million as of December 31, 2023, with maturities ranging from March 2024 to March 2033. The fair values of the interest rate derivative agreements are reflected in other assets and other liabilities with corresponding gains or losses reflected in non-interest income. During the years ended December 31, 2023, 2022, and 2021, there were $617,000, $2.0 million, and $912,000 of transaction fees, respectively, included in other non-interest income, related to these derivative instruments.

 

Note 21—Derivative Instruments and Hedge Activities (continued)

These instruments are inherently subject to market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Market and credit risks are managed and monitored as part of the Company’s overall asset-liability management process. The credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company’s loan underwriting process. The Company’s loan underwriting process also approves the Bank’s swap counterparty used to mirror the borrowers’ swap. The Company has a bilateral agreement with each swap counterparty that provides that fluctuations in derivative values are to be fully collateralized with either cash or securities.

The following table reflects other interest rate derivatives as of December 31, 2023:

Notional amounts

 

$

706,126

 

Derivative assets fair value

 

 

19,447

 

Derivative liabilities fair value

 

 

19,345

 

Weighted average pay rates

 

 

4.30

%

Weighted average receive rates

 

 

5.79

%

Weighted average remaining maturity

 

4.6 years

 

 

Other credit derivatives—The Company has entered into risk participation agreements with counterparty banks to assume or sell a portion of the credit risk related to borrower transactions. As of December 31, 2023, the total notional amount of risk participated in was $1.2 million and the notional amount of risk participated out was $2.4 million. As of December 31, 2022, the total notional amount of risk participated in was $6.7 million. There were no risk participation agreements sold as of December 31, 2022. The credit risk related to the other credit derivatives assumed by the Company is managed through the Company’s loan underwriting process. Additionally, the Company enters into foreign currency contracts to manage foreign exchange risk associated with certain customer foreign currency transactions. These transactions were not material to the consolidated financial statements as of December 31, 2023, or 2022. The fair values of the credit derivatives is reflected in other assets and liabilities with corresponding gains or losses reflected in non-interest income or other comprehensive income.

The Company has agreements with its derivative counterparties that contain a cross-default provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations resulted in a net asset position.

The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Other interest rate derivatives

 

$

(174

)

 

$

702

 

 

$

541

 

Other credit derivatives

 

 

—

 

 

 

5

 

 

 

12

 

Total

 

$

(174

)

 

$

707

 

 

$

553

 

The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative asset and liabilities on the Consolidated Statements of Financial Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of December 31, 2023 and 2022:

 

 

 

 

 

Note 21—Derivative Instruments and Hedge Activities (continued)

 

 

2023

 

 

2022

 

 

 

Derivative
Assets
Fair Value

 

 

Derivative
Liabilities
Fair Value

 

 

Derivative
Assets
Fair Value

 

 

Derivative
Liabilities
Fair Value

 

Gross amounts recognized

 

$

56,923

 

 

$

(19,345

)

 

$

65,342

 

 

$

(17,817

)

Less: Amounts offset in the Consolidated Statements of Financial
   Condition

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net amount presented in the Consolidated Statements of Financial
   Condition

 

$

56,923

 

 

$

(19,345

)

 

$

65,342

 

 

$

(17,817

)

Gross amounts not offset in the Consolidated Statements of
   Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting derivative positions

 

 

(925

)

 

 

925

 

 

 

(43

)

 

 

43

 

Collateral received

 

 

(54,930

)

 

 

—

 

 

 

(64,370

)

 

 

—

 

Net credit exposure

 

$

1,068

 

 

$

(18,420

)

 

$

929

 

 

$

(17,774

)

As of December 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $19.3 million. If the Company had breached any of these provisions at December 31, 2023, it could have been required to settle its obligations under the agreements at their termination value less offsetting positions of $925,000. For purposes of this disclosure, the amount of posted collateral by the Company and by counterparties is limited to the amount offsetting the derivative asset and derivative liability.
v3.24.0.1
Parent Company Only Condensed Financial Statements
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Parent Company Only Condensed Financial Statements

Note 22—Parent Company Only Condensed Financial Statements

The following represents the condensed financial statements of Byline Bancorp, Inc., the Parent Company:

Statements of Financial Condition

Parent Company Only

 

 

As of December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Cash

 

$

39,461

 

 

$

25,275

 

Investment in banking subsidiary

 

 

1,112,514

 

 

 

835,538

 

Other assets

 

 

13,893

 

 

 

16,924

 

Total assets

 

$

1,165,868

 

 

$

877,737

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Line of credit

 

$

11,250

 

 

$

—

 

Term loan

 

 

18,333

 

 

 

—

 

Subordinated notes, net

 

 

73,866

 

 

 

73,691

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,452

 

 

 

37,338

 

Accrued expenses and other liabilities

 

 

1,816

 

 

 

892

 

Stockholders' equity

 

 

990,151

 

 

 

765,816

 

Total liabilities and stockholders' equity

 

$

1,165,868

 

 

$

877,737

 

 

 

 

 

 

 

 

 

 

 

Note 22—Parent Company Only Condensed Financial Statements (continued)

Statements of Operations

Parent Company Only

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

INCOME

 

 

 

 

 

 

 

 

 

Dividends from subsidiary

 

$

35,000

 

 

$

24,000

 

 

$

24,000

 

Other interest and dividend income

 

 

(247

)

 

 

(139

)

 

 

—

 

Change in fair value of equity securities, net

 

 

—

 

 

 

—

 

 

 

110

 

Other noninterest income

 

 

12

 

 

 

5

 

 

 

—

 

Total income

 

 

34,765

 

 

 

23,866

 

 

 

24,110

 

EXPENSES

 

 

 

 

 

 

 

 

 

Interest expense

 

 

11,495

 

 

 

7,149

 

 

 

6,412

 

Other noninterest expense

 

 

3,978

 

 

 

3,045

 

 

 

1,814

 

Total expenses

 

 

15,473

 

 

 

10,194

 

 

 

8,226

 

Income before provision for income taxes and equity in undistributed income
   of subsidiary

 

 

19,292

 

 

 

13,672

 

 

 

15,884

 

Benefit for income taxes

 

 

(4,107

)

 

 

(2,633

)

 

 

(2,022

)

Income before equity in undistributed income of subsidiary

 

 

23,399

 

 

 

16,305

 

 

 

17,906

 

Equity in undistributed income of subsidiary

 

 

84,479

 

 

 

71,649

 

 

 

74,879

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

 

Statements of Cash Flows

Parent Company Only

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed income of subsidiary

 

 

(84,479

)

 

 

(71,649

)

 

 

(74,879

)

Share-based compensation expense

 

 

6,715

 

 

 

5,334

 

 

 

4,018

 

Change in fair value of equity securities, net

 

 

—

 

 

 

—

 

 

 

(110

)

Amortization of subordinated debt issuance cost

 

 

175

 

 

 

174

 

 

 

175

 

Accretion of junior subordinated debentures discount

 

 

453

 

 

 

432

 

 

 

455

 

Changes in other assets and other liabilities

 

 

7,498

 

 

 

(14,531

)

 

 

(6,974

)

Net cash provided by operating activities

 

 

38,240

 

 

 

7,714

 

 

 

15,470

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Purchases of securities available-for-sale

 

 

(9,941

)

 

 

(250

)

 

 

(1,876

)

Net cash paid in acquisition of business

 

 

(30,902

)

 

 

—

 

 

 

—

 

Net cash used in investing activities

 

 

(40,843

)

 

 

(250

)

 

 

(1,876

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from revolving line of credit

 

 

15,000

 

 

 

—

 

 

 

—

 

Repayments of revolving line of credit

 

 

(3,750

)

 

 

—

 

 

 

—

 

Proceeds from term loan

 

 

20,000

 

 

 

—

 

 

 

—

 

Repayments of term loan

 

 

(1,667

)

 

 

—

 

 

 

—

 

Dividends paid on preferred stock

 

 

—

 

 

 

(196

)

 

 

(783

)

Dividends paid on common stock

 

 

(14,585

)

 

 

(13,401

)

 

 

(11,269

)

Proceeds from issuance of common stock, net

 

 

1,791

 

 

 

1,506

 

 

 

2,140

 

Repurchase of preferred stock

 

 

—

 

 

 

(10,438

)

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(17,274

)

 

 

(28,867

)

Net cash provided by (used in) financing activities

 

 

16,789

 

 

 

(39,803

)

 

 

(38,779

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

14,186

 

 

 

(32,339

)

 

 

(25,185

)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

25,275

 

 

 

57,614

 

 

 

82,799

 

CASH AND CASH EQUIVALENTS, end of period

 

$

39,461

 

 

$

25,275

 

 

$

57,614

 

 
v3.24.0.1
Earnings per Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings per Share

Note 23—Earnings per Share

A reconciliation of the numerators and denominators for earnings per common share computations is presented below. Incremental shares represent outstanding stock options for which the exercise price is less than the average market price of the Company’s common stock during the periods presented. Options to purchase 871,699, 930,852, and 1,507,745 shares of common stock were outstanding as of December 31, 2023, 2022, and 2021, respectively. There were 627,271, 581,337, and 542,520 restricted stock awards outstanding at December 31, 2023, 2022 and 2021, respectively. At December 31, 2023, 2022 and 2021, there were no stock options outstanding excluded from the calculation of diluted earnings per common share for anti-dilutive purposes. There were no non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents as of December 31, 2023, 2022 or 2021.

 

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

Less: Dividends on preferred shares

 

 

—

 

 

 

196

 

 

 

783

 

Net income available to common stockholders

 

$

107,878

 

 

$

87,758

 

 

$

92,002

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

 

 

Weighted-average common stock outstanding (basic)

 

 

40,045,208

 

 

 

36,972,972

 

 

 

37,609,723

 

Incremental shares

 

 

400,345

 

 

 

503,148

 

 

 

759,344

 

Weighted-average common stock outstanding (dilutive)

 

 

40,445,553

 

 

 

37,476,120

 

 

 

38,369,067

 

Basic earnings per common share

 

$

2.69

 

 

$

2.37

 

 

$

2.45

 

Diluted earnings per common share

 

$

2.67

 

 

$

2.34

 

 

$

2.40

 
v3.24.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Stockholders' Equity

Note 24—Stockholders’ Equity

A summary of the Company’s preferred and common stock at December 31, 2023 and 2022 is as follows:

 

 

2023

 

 

2022

 

Preferred stock

 

 

 

 

 

 

Par value per share

 

$

0.01

 

 

$

0.01

 

Shares authorized

 

 

25,000,000

 

 

 

25,000,000

 

Shares issued

 

 

—

 

 

 

—

 

Shares outstanding

 

 

—

 

 

 

—

 

Common stock, voting

 

 

 

 

 

 

Par value

 

$

0.01

 

 

$

0.01

 

Shares authorized

 

 

150,000,000

 

 

 

150,000,000

 

Shares issued

 

 

45,714,241

 

 

 

39,518,702

 

Shares outstanding

 

 

43,764,056

 

 

 

37,492,775

 

Treasury shares

 

 

1,950,185

 

 

 

2,025,927

 

During 2016, the Company authorized and issued Series B 7.50% fixed-to-floating non-voting, noncumulative perpetual preferred stock with a liquidation preference of $1,000 per share, plus the amount of unpaid dividends, if any, which was redeemable at the Company’s option on or after March 31, 2022. Holders of Series B Preferred Stock do not have any rights to convert such stock into shares of any other class of capital stock of the Company. Holders of Series B Preferred Stock were entitled to receive a fixed dividend of 7.50% per annum from the original issue date through December 30, 2021.

On February 15, 2022, the Company gave notice of its intention to redeem all of its outstanding shares of the Series B Preferred Stock (the "Preferred Stock Redemption"). The Preferred Stock Redemption was in accordance with the terms of the Certificate of Designations of the Series B Preferred Stock dated as of June 16, 2017 (the "Certificate of Designation"). On March 31, 2022, the Company redeemed all 10,438 outstanding shares of Series B Preferred Stock. Under the Certificate of Designations, the per share redemption price was the liquidation preference of $1,000 per share plus an amount equal to any declared and unpaid dividends thereon for any prior dividend period and totaled $10.6 million.

For the years ended December 31, 2022 and 2021 the Company declared and paid dividends on the Series B Preferred Stock of $196,000 and $783,000, respectively.

Note 24—Stockholders’ Equity (continued)

Total cash dividends declared and paid on the Company’s common stock during the years ended December 31, 2023, 2022 and 2021 were: $14.6 million declared and paid, or $0.36 per share, $13.5 million declared and $13.4 million paid, or $0.36 per share, and $11.4 million declared and $11.3 million paid, or $0.30 per share, respectively.

On December 10, 2020, we announced that our Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock, and on July 27, 2021, the Company's Board of Directors authorized an expansion of the stock repurchase program. Under the extended program, the Company was authorized to repurchase an additional 1,250,000 shares of the Company's outstanding common stock. The program was in effect from January 1, 2021 until December 31, 2022.

On December 12, 2022, we announced that our Board of Directors approved a new stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. The program was in effect from January 1, 2023 until December 31, 2023.

The Company did not purchase any shares under the stock repurchase program for the year ended December 31, 2023. The Company purchased 689,068 shares at a cost of $17.3 million under the stock repurchase program during the year ended December 31, 2022 and purchased 1,331,708 shares at a cost of $28.9 million under this program during the year ended December 31, 2021. Repurchased shares are recorded as treasury shares on the trade date using the treasury stock method, and the cash paid is recorded as treasury stock. Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statement of Financial Condition.

On December 6, 2023, we announced that our Board of Directors approved a new stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. The program will be effect from January 1, 2024 until December 31, 2024, unless terminated earlier. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The shares authorized to be repurchased represent approximately 2.9% of the Company’s outstanding common stock at December 31, 2023.

On January 23, 2024, the Company’s Board of Directors declared a cash dividend of $0.09 per share payable on February 20, 2024, to stockholders of record of the Company’s common stock as of February 6, 2024.
v3.24.0.1
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

Note 25—Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

The following table summarized the change in accumulated other comprehensive income (loss) for the years ended December 31, 2023, 2022, and 2021:

(dollars in thousands)

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Unrealized Gains (Losses) on Available-for-Sale Securities

 

 

Total Accumulated Other
Comprehensive
Income (Loss)

 

Balance, January 1, 2021

 

$

(305

)

 

$

18,352

 

 

$

18,047

 

Other comprehensive income (loss), net of tax

 

 

3,122

 

 

 

(29,471

)

 

 

(26,349

)

Balance, December 31, 2021

 

$

2,817

 

 

$

(11,119

)

 

$

(8,302

)

Other comprehensive income (loss), net of tax

 

 

31,498

 

 

 

(140,746

)

 

 

(109,248

)

Balance, December 31, 2022

 

$

34,315

 

 

$

(151,865

)

 

$

(117,550

)

Other comprehensive income (loss), net of tax

 

 

(4,184

)

 

 

21,617

 

 

 

17,433

 

Balance, December 31, 2023

 

$

30,131

 

 

$

(130,248

)

 

$

(100,117

)
v3.24.0.1
Selected Quarterly Financial Data (unaudited)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (unaudited)

Note 26—Selected Quarterly Financial Data (unaudited)

On December 31, 2022, the Company's Emerging Growth Company status expired and the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Adoption of CECL includes both a $10.1 million retroactive equity adjustment to January 1, 2022 (Day 1) and a $1.7 million fourth quarter adjustment to earnings (net of tax) to account for the difference in provision for credit losses between CECL and the incurred loss methodology for the first three quarters of 2022. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022. The following table presents select financial data for the first three quarters of 2022 as reported and recast, and for the fourth quarter 2022 as reported.

 

 

For the year ended December 31, 2022

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter

 

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

Interest and dividend
  income

 

$

61,818

 

 

$

(405

)

 

$

61,413

 

 

$

66,546

 

 

$

133

 

 

$

66,679

 

 

$

79,903

 

 

$

(240

)

 

$

79,663

 

 

$

93,804

 

Interest expense

 

 

3,082

 

 

 

—

 

 

 

3,082

 

 

 

4,919

 

 

 

—

 

 

 

4,919

 

 

 

11,028

 

 

 

—

 

 

 

11,028

 

 

 

17,200

 

   Net interest income

 

 

58,736

 

 

 

(405

)

 

 

58,331

 

 

 

61,627

 

 

 

133

 

 

 

61,760

 

 

 

68,875

 

 

 

(240

)

 

 

68,635

 

 

 

76,604

 

Provision/(recapture) for
  credit losses

 

 

4,995

 

 

 

1,564

 

 

 

6,559

 

 

 

5,908

 

 

 

(1,622

)

 

 

4,286

 

 

 

4,176

 

 

 

3,032

 

 

 

7,208

 

 

 

5,826

 

   Net interest income after
      provision/(recapture)
      for credit losses

 

 

53,741

 

 

 

(1,969

)

 

 

51,772

 

 

 

55,719

 

 

 

1,755

 

 

 

57,474

 

 

 

64,699

 

 

 

(3,272

)

 

 

61,427

 

 

 

70,778

 

Non-interest income

 

 

19,426

 

 

 

117

 

 

 

19,543

 

 

 

14,161

 

 

 

112

 

 

 

14,273

 

 

 

11,992

 

 

 

51

 

 

 

12,043

 

 

 

11,455

 

Non-interest expense

 

 

44,555

 

 

 

(599

)

 

 

43,956

 

 

 

43,773

 

 

 

(188

)

 

 

43,585

 

 

 

46,178

 

 

 

(137

)

 

 

46,041

 

 

 

50,500

 

   Income before provision
     for income taxes

 

 

28,612

 

 

 

(1,253

)

 

 

27,359

 

 

 

26,107

 

 

 

2,055

 

 

 

28,162

 

 

 

30,513

 

 

 

(3,084

)

 

 

27,429

 

 

 

31,733

 

Provision for income taxes

 

 

6,301

 

 

 

(340

)

 

 

5,961

 

 

 

5,824

 

 

 

558

 

 

 

6,382

 

 

 

7,857

 

 

 

(837

)

 

 

7,020

 

 

 

7,366

 

Net income

 

 

22,311

 

 

 

(913

)

 

 

21,398

 

 

 

20,283

 

 

 

1,497

 

 

 

21,780

 

 

 

22,656

 

 

 

(2,247

)

 

 

20,409

 

 

 

24,367

 

Dividends on preferred
  shares

 

 

196

 

 

 

—

 

 

 

196

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income available to common
  stockholders

 

$

22,115

 

 

$

(913

)

 

$

21,202

 

 

$

20,283

 

 

$

1,497

 

 

$

21,780

 

 

$

22,656

 

 

$

(2,247

)

 

$

20,409

 

 

$

24,367

 

Basic earnings per
  common share

 

$

0.60

 

 

$

(0.03

)

 

$

0.57

 

 

$

0.55

 

 

$

0.04

 

 

$

0.59

 

 

$

0.61

 

 

$

(0.06

)

 

$

0.55

 

 

$

0.66

 

Diluted earnings per
  common share

 

$

0.58

 

 

$

(0.02

)

 

$

0.56

 

 

$

0.54

 

 

$

0.04

 

 

$

0.58

 

 

$

0.61

 

 

$

(0.06

)

 

$

0.55

 

 

$

0.65

 

v3.24.0.1
Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Business Description And Accounting Policies [Abstract]  
Nature of business

Nature of business—Byline Bancorp, Inc. (the "Company," "we," "us," "our") is a bank holding company whose principal activity is the ownership and management of its subsidiary bank, Byline Bank (the "Bank"). The Bank originates commercial, commercial real estate and consumer loans and leases, U.S. government guaranteed loans, and receives deposits from customers located primarily in the Chicago, Illinois metropolitan area. The Bank operates 47 Chicago metropolitan area and one Wauwatosa, Wisconsin, banking offices. The Bank operates under an Illinois state bank charter, provides a full range of banking services, and has full trust powers. The Bank also provides wealth management services. As an Illinois state‑chartered financial institution that is not a member of the Federal Reserve System (the "FRB"), the Bank is subject to regulation by the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation ("FDIC"). The Company is regulated by the FRB.

The Bank is a participant in the Small Business Administration ("SBA") and the United States Department of Agriculture ("USDA") (collectively referred to as "U.S. government guaranteed loans") lending programs and originates U.S. government guaranteed loans.

The Bank engages in short‑term direct financing lease contracts through BFG Corporation, doing business as Byline Financial Group ("BFG"), a wholly‑owned subsidiary of the Bank. BFG is located in Bannockburn, Illinois with sales offices in Illinois, and sales representatives in Illinois, Florida, Michigan, New Jersey and New York.

Subsequent events—No subsequent events were identified that would have required a change to the consolidated financial statements or disclosure in the notes to the consolidated financial statements. In the first quarter of 2024, we announced plans to consolidate two branches during the second quarter of 2024. We expect these consolidations to generate approximately $1.1 million of annual cost savings and anticipate charges of $1.5 million in the first half of 2024.

Basis of financial statement presentation and consolidation

Basis of financial statement presentation and consolidation—The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP") and rules and regulations of the Securities and Exchange Commission ("SEC"). In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purposes of issuing trust preferred securities and related trust common securities. Refer to Note 14—Subordinated Notes and Junior Subordinated Debentures, for additional discussion.

Dollars within footnote tables disclosed within the consolidated financial statements are presented in thousands, except share and per share data. Operating results include the years ended December 31, 2023, 2022 and 2021.
Use of estimates

Use of estimates—In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Statements of Financial Condition and certain revenues and expenses for the periods included in the Consolidated Statements of Operations and the accompanying notes. Actual results could differ from those estimates.

Estimates that are particularly susceptible to significant changes in the near term relate to allowance for credit losses, fair value measurements for assets and liabilities, the valuation of assets and liabilities acquired in business combinations, and other intangible assets and goodwill.
Business combinations

Business combinations—The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805"). The Company recognizes the fair value of the assets acquired and liabilities assumed as of the date of acquisition, with any excess of the fair value of consideration provided over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Transaction costs are immediately expensed as applicable. The results of operations of the acquired business are included in the Consolidated Statements of Operations from the effective date of the acquisition, which is the date control is obtained.

The acquiring company retains the right to make appropriate adjustments to the assets and liabilities of the acquired entity for information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period ends as of the earlier of (a) one year from the acquisition date or (b) the date when the acquirer receives the information necessary to complete the business combination accounting.

Cash and cash equivalents—Cash and cash equivalents have original maturities of three months or less. The Company holds cash and cash equivalents on deposit with other banks and financial institutions in amounts that periodically exceed the federal deposit insurance limit. The Company evaluates the credit quality of these banks and financial institutions to mitigate its credit risk and has not experienced any losses in such accounts. Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.
Cash and cash equivalents

Banks are required by the Federal Reserve Act to maintain reserves against deposits. Reserves are held either in the form of vault cash or balances maintained with the FRB and are based on the average daily deposit balances and statutory reserve ratios prescribed by the type of deposit account. In March 2020, the FRB adopted a rule to amend its reserve regulation which included lowering the reserve requirement to zero percent. As a result, at December 31, 2023 and 2022, there was no reserve balance required to be maintained at the FRB.
Equity and other securities

Equity and other securities—Equity and other securities have no stated maturities and may be sold in response to the same environmental factors as securities available for sale. Equity and other securities are recorded at fair value with changes in fair value included in earnings.
Securities

Securities—Securities are classified as available‑for‑sale if the instrument may be sold in response to such factors including changes in market interest rates and related changes in prepayment risk, needs for liquidity, changes in the availability of and the yield on alternative instruments, and changes in funding sources and terms. Gains or losses on the sales of available‑for‑sale securities are recorded on the trade date and determined using the specific‑identification method. Unrealized holding gains or losses, net of tax, on available‑for‑sale securities are carried as accumulated other comprehensive income (loss) within stockholders’ equity until realized. Securities are classified as held‑to‑maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. The recognition of interest income on a debt security is discontinued when any principal or interest payment becomes 90 days past due, at which time the debt security is placed on non-accrual status. All accrued and unpaid interest on such debt security is then reversed. Accrued interest receivable is excluded from the estimate of expected credit losses.

Fair values of securities are generally based on quoted market prices for the same or similar instruments. Refer to Note 17—Fair Value Measurement for additional discussion on the determination of fair values. Interest income includes the amortization of purchase premiums and discounts, which are recognized using the effective interest method over the terms of the securities.

Allowance for credit losses - securities—Management measures expected credit losses on held-to-maturity debt securities on a collective basis by security type. The Company’s held-to-maturity portfolio contains municipal bonds that are typically rated by major rating agencies as ‘Aa’ or better. The Company uses industry historical credit loss information adjusted for current conditions to establish an allowance for credit losses. For securities available-for-sale in a loss position, the Company evaluates, on a security-by-security basis, whether the decline in fair value below amortized cost resulted from a credit loss or other factors, and if the loss is attributable to credit loss, the loss is recognized through an allowance for credit losses on securities. In assessing credit loss, the Company considers, among other things: the extent to which fair value is less than the amortized cost basis, adverse conditions specific to the security or industry, historical payment patterns, the likelihood of future payments and changes to the rating of a security by a rating agency. The full amount of the loss will be charged to earnings if the Company intends to sell an impaired security, or it is more likely than not that the Company would be required to sell an impaired security before recovering its amortized cost basis. There was no recorded allowance for credit losses on securities as of December 31, 2023 or 2022. Changes in the allowance for credit losses would be recorded as a provision for credit losses. Losses would be charged against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security. Prior to the adoption of ASU 2016-13, declines in the fair value of securities below their cost deemed to be other‑than‑temporary impairment ("OTTI") were reflected in operations as realized losses. Refer to Note 4—Securities for additional information.
Restricted stock

Restricted stock—The Company owns stock of the Federal Home Loan Bank of Chicago ("FHLB"). No ready market exists for this stock, and it has no quoted market value. As a member of the FHLB system, the Bank is required to maintain an investment in FHLB stock. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, the Company owns stock of Bankers Bank, which is redeemable at par and carried at cost.

Restricted stock is generally viewed as a long‑term investment. Accordingly, when evaluating for impairment, its value is determined based on the ultimate recoverability of the par value rather than by recognizing declines in value. The Company did not recognize impairment of its restricted stock as a result of its impairment analyses for the years ended December 31, 2023, 2022 and 2021.
Loans held for sale

Loans held for sale—Loans that management has the intent and ability to sell are designated as held for sale. U.S. government guaranteed loans and mortgage loans originated are carried at either amortized cost or estimated fair value. The Company determines whether to account for loans at fair value or amortized cost at origination. The loans accounted for at fair value remain at fair value after the determination. The loans accounted for at amortized cost are carried at the lower of cost or fair value, valued on a loan by loan basis. Decreases in fair value, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on sales of U.S. government guaranteed loans are recognized based on the difference between the net sales proceeds and the carrying value of the sold portion of the loan, less the fair value of the servicing asset recognized, and are reflected as operating activities in the Consolidated Statements of Cash Flows. The difference between the initial carrying balance of the retained portion of the loan and the relative fair value of the sold portion is recorded as a discount to the retained portion of the loan, establishing a new carrying balance. The recorded discount is accreted to earnings on a level yield basis. U.S. government guaranteed loans are generally sold with servicing retained. Loans sold that have not yet settled as of year-end are classified as due-from counterparty on the Consolidated Statements of Financial Condition.
Originated loans

Originated loans—Originated loans are stated at the amount of unpaid principal outstanding, net of purchase premiums and discounts, and any deferred fees or costs. Net deferred fees, costs, discounts and premiums are recognized as yield adjustments over the contractual life of the loan. Interest on loans is calculated daily based on the principal amount outstanding. Additionally, once an acquired non-credit-deteriorated loan or purchases credit deteriorated ("PCD") loan is performing and reaches its contractual maturity date, it is re-underwritten, and if renewed, it is classified as an originated loan.

Prior to the adoption of ASC 326, originated loans were classified as impaired when, based on current information and events, it was probable that the Company would be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement. The carrying value of impaired loans was based on the present value of expected future cash flows (discounted at each loan’s effective interest rate) or, for collateral dependent loans, at the fair value of the collateral less estimated selling costs. If the measurement of each impaired loan’s value was less than the recorded investment in the loan, impairment was recognized. Refer to Note 2—Recently Issued Accounting Pronouncements for additional information and refer to Note 5—Loans and Lease Receivables and Allowance for Credit Losses for disclosure of individually evaluated and collateral-dependent loans previously considered impaired.

Accrual of interest on loans is discontinued when the loan is 90 days past due or when, in management’s opinion, the borrower may be unable to make payments as they become due. When the accrual of interest is discontinued, all unpaid accrued interest is reversed through interest income and excluded from the estimate of credit losses. Payments received during the time a loan is on non‑accrual status are applied to principal. Interest income is not recognized until the loan is returned to accrual status or after the principal balance is paid in full. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured as evidenced by agreed upon performance for a period of not less than six months.
Modifications for financial difficulty

Modifications for financial difficulty—Modified loans and leases are reviewed to determine if the modification was done for borrowers experiencing financial difficulty. The concessions may be granted in various forms, including a reduction in the stated interest rate, reduction in the loan balance or accrued interest, extension of the maturity date, or a combination of these.

The adoption of ASU 2022-02 on January 1, 2023 eliminated the recognition and measurement of trouble debt restructuring (TDRs) and enhanced the disclosures for modifications to loans related to borrowers experiencing financial difficulties.
Direct finance leases

Direct finance leases—The Company engages in leasing for small‑ticket equipment, software, machinery and ancillary supplies and services to customers under leases that qualify as direct financing leases for financial reporting. Certain leases qualify as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values of the related equipment, are recorded as lease receivables when the lease is signed and funded, and the lease property is delivered to the customer. The excess of the minimum lease payments and residual values over the amount financed is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease based on the effective yield interest method. Residual value is the estimated fair value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s residual values are estimates for reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review of the residual value results in other‑than‑temporary impairment, the impairment is recognized in current period earnings. An upward adjustment of the estimated residual value is not recorded.

The policies for delinquency and non‑accrual for direct finance leases are materially consistent with those described for all classes of loan receivables. The Company defers and amortizes certain initial direct costs over the contractual term of the lease as an adjustment to the yield. The unamortized direct costs are recorded as a reduction of unearned lease income.
Purchase Credit Deteriorated Loans Purchased Credit Deteriorated Loans—The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through credit loss expense.
Acquired non-credit-deteriorated loans and leases Acquired non‑credit-deteriorated loans and leases—Acquired non‑credit-deteriorated loans and leases are accounted for under ASC Subtopic 310‑20, Receivables Nonrefundable Fees and Other Costs ("ASC 310‑20"). The difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loan. While credit discounts are included in the determination of the fair value from non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the consolidated statement of operations. Any subsequent deterioration (improvement) in credit quality is recognized by recording a provision (recapture) for credit losses.
Allowance for credit losses - loans and leases

Allowance for credit losses - loans and leases—The allowance for credit losses - loans and leases is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes uncollectibility of loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Cash flow models calculate an expected life-of-loan loss percentage for each loan category by calculating the probability of default, based on the migration of loans from performing to non-performing and a loss given default, based on net lifetime losses incurred. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The allowance for credit losses is measured on a collective (segment) basis when similar risk characteristics exist. Segments generally reflect underlying collateral categories as well taking into consideration the risk ratings and unguaranteed balance of small business loans. Management considers various economic scenarios in its forecast when evaluating economic indicators and weights the various scenario calculation results to arrive at the forecast that most reflects management’s expectation of future conditions. After a one-year forecast period, a one-year reversion period adjusts loss experience to the historical average on a straight-line basis.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, adjusted for undiscounted selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management does not adjust the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

The Company also maintains an allowance for credit losses on off-balance sheet credit exposures for unfunded loan commitments. This allowance is reflected as a component of other liabilities which represents management’s current estimate of expected losses in the unfunded loan commitments. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life based on management’s consideration of past events, current conditions and reasonable and supportable economic forecasts. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for credit losses on outstanding loans.

Results for the full years and periods ended December 31, 2023 and 2022 are presented under the current expected credit losses ("CECL") methodology while activity for the year ended December 31, 2021 was reported under the incurred loss methodology. Refer to Note 5—Loans and Lease Receivables and Allowance for Credit Losses, for further discussion.
Servicing assets

Servicing assets—Servicing assets are recognized separately when they are acquired through sales of loans. When loans are sold with servicing rights retained, servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.

Sales of U.S. government guaranteed loans are executed on a servicing retained basis. The standard SBA loan sale agreement is structured to provide the Company with a servicing spread paid from a portion of the interest cash flow of the loan. SBA regulations require the Company to retain a portion of the cash flow from the interest payments received for a sold loan. The USDA loan sale agreements are not standardized with respect to servicing.

Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material.

The Company has elected the fair value measurement method and measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur and are recorded as loan servicing asset revaluation on the Consolidated Statements of Operations. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in the prepayment speed and discount rate assumptions have the most significant impact on the fair value of servicing rights.

Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material.
Concentrations of credit risk

Concentrations of credit risk—Most of the Company’s business activity is concentrated with customers located within its principal market areas, with the exception of government guaranteed loans and leasing activities. The Company originates commercial real estate, construction, land development and other land, commercial and industrial, residential real estate, installment and other loans, and leases. Generally, loans are secured by accounts receivable, inventory, deposit accounts, personal property or real estate.

Rights to collateral vary and are legally documented to the extent practicable. The Company has a concentration in commercial real estate loans and the ability of borrowers to honor these and other contracts is dependent upon the real estate and general economic conditions within their geographic market.
Transfers of financial assets

Transfers of financial assets—Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. The Company has assessed that partial sales of financial assets meet the definition of participating interest. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company and the transferee obtains the right (free of conditions that constrain it from taking advantage of that right beyond a trivial benefit) to pledge or exchange the transferred assets. Gains or losses are recognized in the period of sale upon derecognition of the asset.
Premises and equipment

Premises and equipment—Premises and equipment acquired through a business combination are initially stated at the acquisition date fair value less accumulated depreciation. All other premises and equipment are stated at cost less accumulated depreciation. Depreciation on premises and equipment is recognized on a straight‑line basis over their estimated useful lives ranging from three to 39 years. Land is also carried at its fair value following a business combination and is not subject to depreciation. Leasehold improvements are amortized over the shorter of the life of the related asset or expected term of the underlying lease. Gains and losses on the dispositions of premises and equipment are included in non‑interest income. Expenditures for new premises, equipment and major betterments are capitalized. Normal costs of maintenance and repairs are expensed as incurred.

Long‑lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amounts may be not recoverable. Impairment exists when the undiscounted expected future cash flows of a long‑lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in non‑interest expense.
Assets held for sale

Assets held for sale—Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets. The properties are being actively marketed and transferred to assets held for sale based at the lower of its carrying value or its fair value, less estimated costs to sell. Assets held for sale are evaluated periodically for impairment, with any impairment losses recorded in non-interest expense.
Other real estate owned

Other real estate owned—Other real estate owned ("OREO") includes real estate assets that have been acquired through, or in lieu of, loan foreclosure or repossession and are to be sold. OREO assets are initially recorded at fair value, less estimated costs to sell, of the collateral of the loan, on the date of foreclosure or repossession, establishing a new cost basis. Adjustments that reduce loan balances to fair value at the time of foreclosure or repossession are recognized as charge‑offs in the allowance for credit losses - loans and leases. After foreclosure or repossession, management periodically obtains new valuations, and real estate or other assets may be adjusted to a lower carrying amount, determined by the fair value of the asset, less estimated costs to sell. Any subsequent write‑downs are recorded as a decrease in the asset and charged against other real estate owned valuation adjustments. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in non‑interest expense. Any losses on the sales of other real estate owned properties are recognized immediately. OREO is recorded net of participating interests sold.
Goodwill

Goodwill—The excess of the cost of our recapitalization and acquisitions over the fair value of the net assets acquired, including core deposit intangible, consists of goodwill. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles—Goodwill and Other ("ASC 350").

Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. All of the Company’s goodwill is allocated to the Bank, which is the Company’s only applicable reporting unit for the purposes of testing goodwill for impairment. The Company has selected November 30 as the date it performs the annual goodwill impairment test. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists. The Company performs impairment testing using a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, a material change in the estimated value of the Company based on current market multiples common for community banks of similar size and operations; a significant change in our stock price or market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. If the assessment of qualitative factors indicates that it is not more likely than not that impairment exists, an impairment loss is recognized if the carrying amount of the reporting unit goodwill exceeds its fair value.

Based on an annual analysis completed as of November 30, 2023, 2022 and 2021, the Company did not recognize impairment losses during the years ended December 31, 2023, 2022, and 2021.
Other intangible assets

Other intangible assets—Other intangible assets primarily consist of core deposit intangible assets. Other intangible assets with definite useful lives are amortized to their estimated residual values over their respective estimated useful lives and are also reviewed periodically for impairment. Amortization of other intangible assets is included in other non‑interest expense. Core deposit intangibles were recognized apart from goodwill based on market valuations. Core deposit intangibles are amortized over an approximate ten year period. In valuing core deposit intangibles, the Company considered variables such as deposit servicing costs, attrition rates and market discount rates. If the estimated fair value is less than the carrying value, the core deposit intangible would be reduced to such value and the impairment recognized as non‑interest expense.

Customer relationship intangibles

Customer relationship intangibles—Customer relationship intangibles relate to the value of existing trust and wealth management relationships and are amortized over 12 years. In valuing the relationship intangibles, the Company considered variables such as attrition, investment appreciation, and discount rates.

Bank-owned life insurance

Bank‑owned life insurance—The Company holds life insurance policies that provide protection against the adverse financial effects that could result from the death of current and former employees and provide tax deferred income. Although the lives of individual current or former management‑level employees are insured, the Company is the owner and is split beneficiary on certain policies. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. Split‑dollar life insurance is recorded as an asset at cash surrender value. Increases in the cash value of these policies, as well as insurance proceeds received, are recorded in other non‑interest income and are not subject to income tax.
Income taxes

Income taxes—The Company uses the asset and liability method to account for income taxes. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The Company’s annual tax rate is based on its income, statutory tax rates and available tax planning opportunities. Deferred tax assets and liabilities are adjusted through the tax provision for the effects of changes in tax laws and rates on the date of enactment. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss carryforwards. The Company reviews its deferred tax positions periodically and adjusts the balances as new information becomes available. The Company evaluates the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. The Company uses short and long‑range business forecasts to provide additional information for its evaluation of the recoverability of deferred tax assets. As of December 31, 2023 and 2022, the Company had no material uncertain tax positions. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense. However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties. The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense.

A deferred tax valuation allowance is established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some of the deferred tax asset will not be realized. At December 31, 2023 and 2022, the Company did not record a deferred tax valuation allowance. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Derivative financial instruments and hedging activities

Derivative financial instruments and hedging activities—The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the future cash flows of certain assets. ASC Topic 815, Derivatives and Hedging ("ASC 815"), establishes accounting and reporting standards requiring that every derivative instrument be recorded in the Consolidated Statements of Financial Condition as either an asset or liability measured at its fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. On the date the derivative contract is entered into, the Company designates the derivative as a fair value hedge, a cash flow hedge, or a non‑designated derivative.

Fair value hedges are accounted for by recording the changes in the fair value of the derivative instrument and the changes in the fair value related to the risk being hedged of the hedged asset or liability on the Consolidated Statements of Financial Condition with corresponding offsets recorded in the Consolidated Statements of Operations. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as an asset or liability.

Cash flow hedges are accounted for by recording the changes in the fair value of the derivative instrument in other comprehensive income (loss) and are recognized in the Consolidated Statements of Operations when the hedged item affects earnings.

Derivative instruments that are not designated as hedges according to accounting guidance are reported in the Consolidated Statements of Financial Condition at fair value and the changes in fair value are recognized as non‑interest income during the period of the change.

The Company formally documents the relationship between a derivative instrument and a hedged asset or liability, as well as its risk management objective and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Comprehensive income

Comprehensive income—Recognized revenue, expenses, gains and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available‑for‑sale securities and adjustments related to cash flow hedges, are reported on a cumulative basis, net of tax effects, as a separate component of equity on the Consolidated Statements of Financial Condition. Changes in such items, along with net income, are components of comprehensive income.
Advertising expense

Advertising expense—Advertising costs are expensed as incurred.
Off-balance sheet instruments

Off‑balance sheet instruments—In the ordinary course of business, the Company has entered into off‑balance sheet arrangements consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded in the consolidated financial statements when they are funded or when the related fees are incurred or received.
Segment reporting

Segment reporting—The Company has one reportable segment. The Company’s chief operating decision makers evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segment disclosures are not required.
Loss contingencies

Loss contingencies—Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the Consolidated Financial Statements for the years ended December 31, 2023, 2022, and 2021.
Share-based compensation

Share‑based compensation—The Company accounts for share‑based compensation in accordance with ASC Topic 718, Compensation—Stock Compensation ("ASC 718"), which requires compensation cost relating to share‑based compensation transactions be recognized in the Consolidated Statements of Operations, based generally upon the grant‑date fair value of the share‑based compensation granted by the Company. Share‑based awards may have service, market or performance conditions. Refer to Note 18—Share-Based Compensation for additional information.
Earnings per share

Earnings per share—Earnings per common share ("EPS") is computed under the two-class method. Pursuant to the two-class method, non-vested stock-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Application of the two-class method resulted in the equivalent earnings per share to the treasury method. Basic earnings per common share is computed by dividing net earnings allocated to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation and warrants for common stock using the treasury stock method.
Dividend restrictions

Dividend restrictions—Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to stockholders.
Fair value of assets and liabilities

Fair value of assets and liabilities—Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, including respective accrued interest balances, in an orderly transaction between market participants at the measurement date. The Company determines fair value based upon quoted prices when available or through the use of alternative approaches, such as matrix or model pricing, when market quotes are not readily accessible or available. The valuation techniques used are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Changes in assumptions or in market conditions could significantly affect these estimates.
Reclassifications

Reclassifications—Some items in prior years consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years’ net income or stockholders’ equity.
Accounting Pronouncements Recently Adopted or Issued

The following reflect recent accounting pronouncements that were adopted and are pending adoption by the Company.

Adopted Accounting Pronouncements

Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures (Topic 326) – In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-02, Credit Losses – Troubled Debt Restructurings and Vintage Disclosures. The Company adopted this update effective March 31, 2023. This update eliminates the recognition and measurement guidance for troubled debt restructurings ("TDRs") by creditors in ASC 310-40. The update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments in this ASU require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases in the existing vintage disclosures. Refer to Note 5—Loan and Lease Receivables and Allowance for Credit Losses for additional details regarding these disclosures.

Issued Accounting Pronouncements Pending Adoption

Fair Value Measurement (Topic 820) – In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The guidance in the ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account on the equity security and, therefore, is not considered in measuring fair value. The ASU also requires additional disclosures about the restriction. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Business Combinations (Topic 805) – In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture ("JV") Formations: Recognition and Initial Measurement. The guidance requires newly-formed JVs to apply a new basis of accounting to all of its contributed net assets, which results in the JV initially measuring its contributed net assets under ASC 805-20, Business Combinations. The new guidance would be applied prospectively and is effective for all newly-formed joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Segment Reporting – Improvements to Reportable Segment Disclosures (Topic 280) – In November 2023, the FASB issued ASU 2023-07 to enhance disclosures about significant segment expenses for public entities reporting segment information under Topic 280. It requires that a public entity disclose, on an annual and interim basis, significant expense categories for each reportable segment. Significant expense categories are derived from expenses that are 1) regularly reported to an entity’s chief operating decision-maker ("CODM"), and 2) included in a segment’s reported measure of profit or loss. The disclosures should include an amount for "other segment items," reflecting the difference between 1) segment revenue less significant segment expenses, and 2) the reportable segment’s profit or loss measures. It requires that a public entity disclose the title and position of the CODM and how the CODM uses the reported measure of profit or loss to assess segment performance and to allocate resources. Further it clarifies that entities with a single reportable segment must disclose both new and existing segment reporting requirements. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities must adopt the guidance on a retrospective basis. The Company is evaluating the internal control and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Income Taxes – Improvements to Income Tax Disclosures (Topic 740) – In December 2023, the FASB issued ASU 2023-09 to provide additional transparency into an entity’s income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The standard requires that public business entities disclose, on an annual basis, specific categories in the rate reconciliation and additional information for reconciling items meeting a certain quantitative threshold. The amendments also require that entities disclose on an annual basis: 1) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and 2) the income taxes paid (net of refunds received) disaggregated by individual jurisdictions exceeding 5% of total income taxes paid (net of refunds received). The amendments are effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.
v3.24.0.1
Acquisition of a Business (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Summary of Estimates Fair Values of Assets and Liabilities Assumed as of Acquisition Date

Note 3—Acquisition of a Business (continued)

The following table presents a summary of the preliminary estimates of fair values of assets acquired and liabilities assumed as of the acquisition date:

Assets

 

 

 

Cash and cash equivalents

 

$

39,731

 

Securities available-for-sale

 

 

239,602

 

Restricted stock

 

 

3,058

 

Loans

 

 

808,000

 

Allowance for credit losses

 

 

(10,596

)

Premises and equipment

 

 

11,307

 

Operating lease right-of-use asset

 

 

3,813

 

Other intangible assets

 

 

17,250

 

Bank-owned life insurance

 

 

12,455

 

Deferred tax assets, net

 

 

14,848

 

Other assets

 

 

21,023

 

Total assets acquired

 

 

1,160,491

 

Liabilities

 

 

 

Deposits

 

 

964,491

 

Federal Home Loan Bank advances

 

 

40,000

 

Securities sold under agreements to repurchase

 

 

455

 

Junior subordinated debentures

 

 

32,661

 

Operating lease liability

 

 

4,034

 

Accrued expenses and other liabilities

 

 

13,288

 

Total liabilities assumed

 

 

1,054,929

 

Net assets acquired

 

$

105,562

 

Consideration paid

 

 

 

Common stock (5,932,323 shares issued at $18.09 per share)

 

 

107,017

 

Cash paid

 

 

31,897

 

Total consideration paid

 

 

138,914

 

Goodwill

 

$

33,352

 

 
Summary of Fair Value and Gross Contractual Amounts Receivable and Respective Expected Contractual Cash Flows

The following table presents the fair value and gross contractual amounts receivable of acquired non-credit-deteriorated loans from the Inland acquisition, and their respective expected contractual cash flows as of the acquisition date:

 

Fair value

 

$

582,831

 

Gross contractual amounts receivable

 

 

699,918

 

Estimate of contractual cash flows not expected to be collected(1)

 

 

4,239

 

Estimate of contractual cash flows expected to be collected

 

 

695,679

 

(1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default.

Summary of Pro Forma Information for Results of Operations

The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2023 and 2022, as if the acquisition had occurred on January 1, 2022. The pro forma results combine the historical results of Inland into the Company’s Consolidated Statements of Operations, including the impact of certain acquisition accounting adjustments, which includes loan discount accretion, intangible assets amortization, deposit premium accretion, fixed assets amortization, and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Recognized acquisition-related expenses and other adjustments related to the timing of expenses, are included in net income in the following table:

 

Year Ended

 

 

December 31,

 

 

2023

 

 

2022

 

Total revenues (net interest income and non-interest income)

$

411,252

 

 

$

391,621

 

Net income

$

120,246

 

 

$

97,724

 

Earnings per share—basic

$

2.80

 

 

$

2.28

 

Earnings per share—diluted

$

2.77

 

 

$

2.25

 
v3.24.0.1
Securities (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost and Fair Values of Securities Available-for-sale,Held to Maturity and Other Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2023 and 2022 and the corresponding amounts of gross unrealized gains and losses:

2023

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

116,398

 

 

$

61

 

 

$

(1,025

)

 

$

115,434

 

U.S. Government agencies

 

 

147,062

 

 

 

37

 

 

 

(16,404

)

 

 

130,695

 

Obligations of states, municipalities, and political
   subdivisions

 

 

86,022

 

 

 

396

 

 

 

(4,143

)

 

 

82,275

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

786,970

 

 

 

4,247

 

 

 

(95,414

)

 

 

695,803

 

Non-agency

 

 

122,359

 

 

 

—

 

 

 

(22,099

)

 

 

100,260

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

181,452

 

 

 

—

 

 

 

(34,248

)

 

 

147,204

 

Corporate securities

 

 

40,681

 

 

 

—

 

 

 

(4,510

)

 

 

36,171

 

Asset-backed securities

 

 

35,857

 

 

 

2

 

 

 

(1,221

)

 

 

34,638

 

Total

 

$

1,516,801

 

 

$

4,743

 

 

$

(179,064

)

 

$

1,342,480

 

 

2023

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

$

1,157

 

 

$

—

 

 

$

(8

)

 

$

1,149

 

Total

 

$

1,157

 

 

$

—

 

 

$

(8

)

 

$

1,149

 

 

2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

42,430

 

 

$

2

 

 

$

(1,709

)

 

$

40,723

 

U.S. Government agencies

 

 

150,524

 

 

 

116

 

 

 

(20,276

)

 

 

130,364

 

Obligations of states, municipalities, and political
   subdivisions

 

 

68,019

 

 

 

9

 

 

 

(6,152

)

 

 

61,876

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

707,157

 

 

 

—

 

 

 

(111,361

)

 

 

595,796

 

Non-agency

 

 

130,654

 

 

 

—

 

 

 

(24,405

)

 

 

106,249

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

191,172

 

 

 

—

 

 

 

(34,142

)

 

 

157,030

 

Corporate securities

 

 

45,302

 

 

 

—

 

 

 

(3,866

)

 

 

41,436

 

Asset-backed securities

 

 

43,085

 

 

 

—

 

 

 

(2,128

)

 

 

40,957

 

Total

 

$

1,378,343

 

 

$

127

 

 

$

(204,039

)

 

$

1,174,431

 

 

2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

$

2,705

 

 

$

—

 

 

$

(33

)

 

$

2,672

 

Total

 

$

2,705

 

 

$

—

 

 

$

(33

)

 

$

2,672

 
Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale and Held to Maturity

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022 are summarized as follows:

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

2023

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

7

 

 

$

5,018

 

 

$

(4

)

 

$

31,843

 

 

$

(1,021

)

 

$

36,861

 

 

$

(1,025

)

U.S. Government agencies

 

 

18

 

 

 

535

 

 

 

(9

)

 

 

119,109

 

 

 

(16,395

)

 

 

119,644

 

 

 

(16,404

)

Obligations of states, municipalities and
   political subdivisions

 

 

61

 

 

 

12,267

 

 

 

(156

)

 

 

49,617

 

 

 

(3,987

)

 

 

61,884

 

 

 

(4,143

)

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

102

 

 

 

8,332

 

 

 

(49

)

 

 

543,648

 

 

 

(95,365

)

 

 

551,980

 

 

 

(95,414

)

Non-agency

 

 

20

 

 

 

636

 

 

 

—

 

 

 

99,624

 

 

 

(22,099

)

 

 

100,260

 

 

 

(22,099

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

48

 

 

 

6,765

 

 

 

(1,517

)

 

 

140,439

 

 

 

(32,731

)

 

 

147,204

 

 

 

(34,248

)

Corporate securities

 

 

21

 

 

 

—

 

 

 

—

 

 

 

36,171

 

 

 

(4,510

)

 

 

36,171

 

 

 

(4,510

)

Asset-backed securities

 

 

6

 

 

 

—

 

 

 

—

 

 

 

25,653

 

 

 

(1,221

)

 

 

25,653

 

 

 

(1,221

)

Total

 

 

283

 

 

$

33,553

 

 

$

(1,735

)

 

$

1,046,104

 

 

$

(177,329

)

 

$

1,079,657

 

 

$

(179,064

)

Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities and
   political subdivisions

 

 

2

 

 

$

—

 

 

$

—

 

 

$

1,149

 

 

$

(8

)

 

$

1,149

 

 

$

(8

)

Total

 

 

2

 

 

$

—

 

 

$

—

 

 

$

1,149

 

 

$

(8

)

 

$

1,149

 

 

$

(8

)

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

2022

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

6

 

 

$

21,720

 

 

$

(1,078

)

 

$

9,339

 

 

$

(631

)

 

$

31,059

 

 

$

(1,709

)

U.S. Government agencies

 

 

17

 

 

 

44,508

 

 

 

(4,782

)

 

 

70,609

 

 

 

(15,494

)

 

 

115,117

 

 

 

(20,276

)

Obligations of states, municipalities and
   political subdivisions

 

 

58

 

 

 

50,216

 

 

 

(3,858

)

 

 

7,185

 

 

 

(2,294

)

 

 

57,401

 

 

 

(6,152

)

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

101

 

 

 

117,598

 

 

 

(11,045

)

 

 

478,198

 

 

 

(100,316

)

 

 

595,796

 

 

 

(111,361

)

Non-agency

 

 

19

 

 

 

35,486

 

 

 

(7,569

)

 

 

70,763

 

 

 

(16,836

)

 

 

106,249

 

 

 

(24,405

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

47

 

 

 

76,193

 

 

 

(11,840

)

 

 

74,315

 

 

 

(22,302

)

 

 

150,508

 

 

 

(34,142

)

Corporate securities

 

 

24

 

 

 

37,130

 

 

 

(3,128

)

 

 

4,306

 

 

 

(738

)

 

 

41,436

 

 

 

(3,866

)

Asset-backed securities

 

 

8

 

 

 

25,455

 

 

 

(503

)

 

 

15,502

 

 

 

(1,625

)

 

 

40,957

 

 

 

(2,128

)

Total

 

 

280

 

 

$

408,306

 

 

$

(43,803

)

 

$

730,217

 

 

$

(160,236

)

 

$

1,138,523

 

 

$

(204,039

)

Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities and
   political subdivisions

 

 

4

 

 

$

2,672

 

 

$

(33

)

 

$

—

 

 

$

—

 

 

$

2,672

 

 

$

(33

)

Total

 

 

4

 

 

$

2,672

 

 

$

(33

)

 

$

—

 

 

$

—

 

 

$

2,672

 

 

$

(33

)
Summary of Proceeds From Sales and Calls of Securities Available-for-sale and Associated Gains and Losses

The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2023, 2022, and 2021 are listed below:

 

 

2023

 

 

2022

 

 

2021

 

Proceeds

 

$

163,649

 

 

$

23,293

 

 

$

203,791

 

Gross gains

 

 

—

 

 

 

100

 

 

 

2,830

 

Gross losses

 

 

—

 

 

 

50

 

 

 

1,395

 
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

At December 31, 2023, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

Amortized
Cost

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

Due in one year or less

 

$

87,034

 

 

$

86,730

 

Due from one to five years

 

 

122,749

 

 

 

117,315

 

Due from five to ten years

 

 

171,812

 

 

 

154,829

 

Due after ten years

 

 

44,425

 

 

 

40,339

 

Mortgage-backed securities

 

 

1,090,781

 

 

 

943,267

 

Total

 

$

1,516,801

 

 

$

1,342,480

 

Held-to-maturity

 

 

 

 

 

 

Due in one year or less

 

$

550

 

 

$

547

 

Due from one to five years

 

 

607

 

 

 

602

 

Total

 

$

1,157

 

 

$

1,149

 
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Outstanding Loan and Lease Receivables

Outstanding loan and lease receivables as of December 31, 2023 and 2022 were categorized as follows:

 

 

2023

 

 

2022

 

Commercial real estate

 

$

2,317,289

 

 

$

1,905,909

 

Residential real estate

 

 

718,733

 

 

 

489,411

 

Construction, land development, and other land

 

 

528,275

 

 

 

440,016

 

Commercial and industrial

 

 

2,444,405

 

 

 

2,055,213

 

Installment and other

 

 

3,138

 

 

 

1,709

 

Lease financing receivables

 

 

659,686

 

 

 

518,654

 

Total loans and leases

 

 

6,671,526

 

 

 

5,410,912

 

Net unamortized deferred fees and costs

 

 

6,600

 

 

 

5,014

 

Initial direct costs

 

 

6,180

 

 

 

5,332

 

Allowance for credit losses - loans and leases

 

 

(101,686

)

 

 

(81,924

)

Net loans and leases

 

$

6,582,620

 

 

$

5,339,334

 

 

 

 

2023

 

 

2022

 

Lease financing receivables

 

 

 

 

 

 

Net minimum lease payments

 

$

644,507

 

 

$

509,980

 

Unguaranteed residual values

 

 

92,127

 

 

 

54,118

 

Unearned income

 

 

(76,948

)

 

 

(45,444

)

Total lease financing receivables

 

 

659,686

 

 

 

518,654

 

Initial direct costs

 

 

6,180

 

 

 

5,332

 

Lease financial receivables before allowance for
   credits losses - loans and leases

 

$

665,866

 

 

$

523,986

 
Summary of Minimum Annual Lease Payments for Lease Financing Receivables

The minimum annual lease payments for lease financing receivables as of December 31, 2023 are summarized as follows:

 

 

Minimum Lease
Payments

 

2024

 

$

205,973

 

2025

 

 

183,204

 

2026

 

 

136,621

 

2027

 

 

82,425

 

2028

 

 

32,524

 

Thereafter

 

 

3,760

 

Total

 

$

644,507

 

 
Summary of Balances for Each Respective Loan and Lease Category The following tables summarize the balances for each respective loan and lease category as of December 31, 2023 and 2022:

2023

 

Originated

 

 

Purchased Credit Deteriorated

 

 

Acquired
Non-Credit-
Deteriorated

 

 

Total

 

Commercial real estate

 

$

1,907,029

 

 

$

137,807

 

 

$

275,476

 

 

$

2,320,312

 

Residential real estate

 

 

465,133

 

 

 

42,510

 

 

 

211,887

 

 

 

719,530

 

Construction, land development, and other land

 

 

415,162

 

 

 

25,331

 

 

 

86,344

 

 

 

526,837

 

Commercial and industrial

 

 

2,311,563

 

 

 

19,460

 

 

 

117,538

 

 

 

2,448,561

 

Installment and other

 

 

2,919

 

 

 

125

 

 

 

156

 

 

 

3,200

 

Lease financing receivables

 

 

665,239

 

 

 

—

 

 

 

627

 

 

 

665,866

 

Total loans and leases

 

$

5,767,045

 

 

$

225,233

 

 

$

692,028

 

 

$

6,684,306

 

 

2022

 

Originated

 

 

Purchased Credit Deteriorated

 

 

Acquired
Non-Credit-
Deteriorated

 

 

Total

 

Commercial real estate

 

$

1,712,152

 

 

$

45,143

 

 

$

152,193

 

 

$

1,909,488

 

Residential real estate

 

 

426,226

 

 

 

32,228

 

 

 

31,508

 

 

 

489,962

 

Construction, land development, and other land

 

 

438,617

 

 

 

372

 

 

 

—

 

 

 

438,989

 

Commercial and industrial

 

 

2,030,616

 

 

 

2,192

 

 

 

24,266

 

 

 

2,057,074

 

Installment and other

 

 

1,410

 

 

 

140

 

 

 

209

 

 

 

1,759

 

Lease financing receivables

 

 

521,689

 

 

 

—

 

 

 

2,297

 

 

 

523,986

 

Total loans and leases

 

$

5,130,710

 

 

$

80,075

 

 

$

210,473

 

 

$

5,421,258

 
Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans The balances do not include an allowance for credit losses of $10.0 million and $1.9 million, at December 31, 2023 and 2022, respectively.

 

 

2023

 

 

2022

 

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

Commercial real estate

 

$

185,007

 

 

$

137,807

 

 

$

85,089

 

 

$

45,143

 

Residential real estate

 

 

88,036

 

 

 

42,510

 

 

 

76,270

 

 

 

32,228

 

Construction, land development, and other land

 

 

32,140

 

 

 

25,331

 

 

 

7,042

 

 

 

372

 

Commercial and industrial

 

 

21,870

 

 

 

19,460

 

 

 

3,902

 

 

 

2,192

 

Installment and other

 

 

789

 

 

 

125

 

 

 

807

 

 

 

140

 

Total purchased credit deteriorated loans

 

$

327,842

 

 

$

225,233

 

 

$

173,110

 

 

$

80,075

 
Summary of Reconciliation of Acquired Inland PCD Loans between Purchase Price and Par Value at Acquisition

The following table is a reconciliation of the acquired Inland PCD loans between their purchase price and their par value at the time of acquisition. Refer to Note 3—Acquisition of a Business for further information.

Fair value of loans at acquisition

 

$

214,573

 

Allowance for credit losses - loans and leases, at acquisition

 

 

10,596

 

Non-credit discount/premium at acquisition

 

 

17,909

 

Par value of acquired PCD loans at acquisition

 

$

243,078

 

 
Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-Impaired Loans and Leases The unpaid principal balance and carrying value for acquired non‑credit-deteriorated loans and leases, excluding an allowance for credit losses of $4.7 million and $5.3 million at December 31, 2023 and 2022, were as follows:

 

 

2023

 

 

2022

 

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

 

Unpaid
Principal
Balance

 

 

Carrying
Value

 

Commercial real estate

 

$

284,819

 

 

$

275,476

 

 

$

155,652

 

 

$

152,193

 

Residential real estate

 

 

227,392

 

 

 

211,887

 

 

 

31,863

 

 

 

31,508

 

Construction, land development, and other land

 

 

87,143

 

 

 

86,344

 

 

 

63

 

 

 

—

 

Commercial and industrial

 

 

123,540

 

 

 

117,538

 

 

 

25,022

 

 

 

24,266

 

Installment and other

 

 

170

 

 

 

156

 

 

 

216

 

 

 

209

 

Lease financing receivables

 

 

628

 

 

 

627

 

 

 

2,302

 

 

 

2,297

 

Total acquired non-credit-deteriorated loans and leases

 

$

723,692

 

 

$

692,028

 

 

$

215,118

 

 

$

210,473

 
Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Credit Losses Calculation

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses calculation as of December 31, 2023 and 2022.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

 

 

December 31, 2023

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

247,856

 

 

$

452,127

 

 

$

516,624

 

 

$

229,053

 

 

$

143,283

 

 

$

388,872

 

 

$

28,360

 

 

$

2,006,175

 

      Watch

 

 

12,501

 

 

 

22,094

 

 

 

26,408

 

 

 

46,713

 

 

 

20,364

 

 

 

68,003

 

 

 

—

 

 

 

196,083

 

      Special Mention

 

 

—

 

 

 

799

 

 

 

10,752

 

 

 

2,618

 

 

 

12,751

 

 

 

25,790

 

 

 

—

 

 

 

52,710

 

      Substandard

 

 

—

 

 

 

2,888

 

 

 

5,841

 

 

 

1,771

 

 

 

7,483

 

 

 

46,532

 

 

 

829

 

 

 

65,344

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

193

 

 

$

60

 

 

$

1,511

 

 

$

4,054

 

 

$

3,911

 

 

$

—

 

 

$

9,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

55,178

 

 

$

135,477

 

 

$

104,005

 

 

$

54,651

 

 

$

37,806

 

 

$

225,593

 

 

$

57,865

 

 

$

670,575

 

      Watch

 

 

—

 

 

 

4,811

 

 

 

—

 

 

 

17,417

 

 

 

7,167

 

 

 

8,708

 

 

 

1,597

 

 

 

39,700

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,594

 

 

 

127

 

 

 

1

 

 

 

413

 

 

 

4,135

 

      Substandard

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,523

 

 

 

952

 

 

 

5,120

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

21

 

 

$

—

 

 

$

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development, & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

82,449

 

 

$

145,174

 

 

$

184,544

 

 

$

35,466

 

 

$

9,772

 

 

$

1,429

 

 

$

174

 

 

$

459,008

 

      Watch

 

 

1,392

 

 

 

13,990

 

 

 

21,313

 

 

 

18,716

 

 

 

3,125

 

 

 

—

 

 

 

—

 

 

 

58,536

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

9,279

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,279

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

14

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

475,720

 

 

$

514,902

 

 

$

288,392

 

 

$

109,430

 

 

$

73,059

 

 

$

147,168

 

 

$

524,348

 

 

$

2,133,019

 

      Watch

 

 

41,027

 

 

 

33,080

 

 

 

50,407

 

 

 

1,385

 

 

 

6,951

 

 

 

18,180

 

 

 

39,531

 

 

 

190,561

 

      Special Mention

 

 

—

 

 

 

6,164

 

 

 

10,595

 

 

 

2,631

 

 

 

1,112

 

 

 

6,643

 

 

 

36,354

 

 

 

63,499

 

      Substandard

 

 

—

 

 

 

7,332

 

 

 

6,067

 

 

 

6,431

 

 

 

10,116

 

 

 

18,381

 

 

 

13,155

 

 

 

61,482

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

Gross charge-offs, year ended December 31, 2023

 

$

1,518

 

 

$

1,938

 

 

$

5,372

 

 

$

4,451

 

 

$

1,087

 

 

$

1,045

 

 

$

—

 

 

$

15,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

564

 

 

$

132

 

 

$

79

 

 

$

133

 

 

$

28

 

 

$

424

 

 

$

1,814

 

 

$

3,174

 

      Watch

 

 

—

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

26

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

327,099

 

 

$

207,640

 

 

$

93,242

 

 

$

29,343

 

 

$

5,443

 

 

$

856

 

 

$

—

 

 

$

663,623

 

      Watch

 

 

—

 

 

 

67

 

 

 

1,008

 

 

 

16

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,091

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

179

 

 

 

101

 

 

 

36

 

 

 

—

 

 

 

316

 

      Substandard

 

 

259

 

 

 

138

 

 

 

384

 

 

 

55

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

836

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

Gross charge-offs, year ended December 31, 2023

 

$

734

 

 

$

886

 

 

$

549

 

 

$

139

 

 

$

75

 

 

$

54

 

 

$

—

 

 

$

2,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,188,866

 

 

$

1,455,452

 

 

$

1,186,886

 

 

$

458,076

 

 

$

269,391

 

 

$

764,342

 

 

$

612,561

 

 

$

5,935,574

 

      Watch

 

 

54,920

 

 

 

74,042

 

 

 

99,161

 

 

 

84,247

 

 

 

37,607

 

 

 

94,892

 

 

 

41,128

 

 

 

485,997

 

      Special Mention

 

 

—

 

 

 

6,963

 

 

 

30,626

 

 

 

9,022

 

 

 

14,091

 

 

 

32,470

 

 

 

36,767

 

 

 

129,939

 

      Substandard

 

 

259

 

 

 

10,358

 

 

 

12,399

 

 

 

8,446

 

 

 

17,948

 

 

 

68,450

 

 

 

14,936

 

 

 

132,796

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

Gross charge-offs, year ended December 31, 2023

 

$

2,252

 

 

$

3,017

 

 

$

5,981

 

 

$

6,101

 

 

$

5,216

 

 

$

5,034

 

 

$

—

 

 

$

27,601

 

 

 

 

December 31, 2022

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Loans

 

 

Loans (1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

471,009

 

 

$

510,529

 

 

$

207,765

 

 

$

111,792

 

 

$

84,382

 

 

$

324,271

 

 

$

28,343

 

 

$

1,738,091

 

      Watch

 

 

6,422

 

 

 

12,723

 

 

 

20,583

 

 

 

11,004

 

 

 

17,269

 

 

 

44,462

 

 

 

—

 

 

 

112,463

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

121

 

 

 

1,075

 

 

 

1,232

 

 

 

10,075

 

 

 

—

 

 

 

12,503

 

      Substandard

 

 

—

 

 

 

1,910

 

 

 

915

 

 

 

13,042

 

 

 

12,685

 

 

 

22,915

 

 

 

—

 

 

 

51,467

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

186

 

 

$

101

 

 

$

1,766

 

 

$

35

 

 

$

1,749

 

 

$

—

 

 

$

3,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

68,752

 

 

$

59,075

 

 

$

41,768

 

 

$

31,726

 

 

$

48,432

 

 

$

170,279

 

 

$

49,622

 

 

$

469,654

 

      Watch

 

 

—

 

 

 

—

 

 

 

1,137

 

 

 

682

 

 

 

4,098

 

 

 

9,026

 

 

 

2,586

 

 

 

17,529

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

323

 

 

 

32

 

 

 

420

 

 

 

876

 

 

 

—

 

 

 

1,651

 

      Substandard

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,185

 

 

 

660

 

 

 

3,756

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

33

 

 

$

35

 

 

$

1,140

 

 

$

—

 

 

$

1,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

62,310

 

 

$

203,672

 

 

$

61,895

 

 

$

27,189

 

 

$

26,489

 

 

$

38,186

 

 

$

185

 

 

$

419,926

 

      Watch

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,409

 

 

 

—

 

 

 

3,064

 

 

 

—

 

 

 

7,473

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

1,845

 

 

 

—

 

 

 

4,199

 

 

 

—

 

 

 

—

 

 

 

6,044

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,530

 

 

 

4,012

 

 

 

4

 

 

 

—

 

 

 

5,546

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

94

 

 

$

—

 

 

$

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

508,664

 

 

$

305,056

 

 

$

137,335

 

 

$

72,486

 

 

$

96,304

 

 

$

113,965

 

 

$

549,431

 

 

$

1,783,241

 

      Watch

 

 

16,657

 

 

 

20,856

 

 

 

15,857

 

 

 

32,282

 

 

 

19,362

 

 

 

9,809

 

 

 

47,119

 

 

 

161,942

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

697

 

 

 

1,162

 

 

 

2,958

 

 

 

7,831

 

 

 

22,320

 

 

 

48,024

 

      Substandard

 

 

1,156

 

 

 

3,415

 

 

 

6,671

 

 

 

11,949

 

 

 

5,434

 

 

 

25,275

 

 

 

10,738

 

 

 

64,638

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

Gross charge-offs, year ended December 31, 2022

 

$

223

 

 

$

111

 

 

$

824

 

 

$

2,412

 

 

$

643

 

 

$

1,164

 

 

$

—

 

 

$

5,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

332

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

15

 

 

$

584

 

 

$

429

 

 

$

1,650

 

      Watch

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

73

 

 

 

—

 

 

 

109

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7

 

 

$

—

 

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

296,395

 

 

$

148,588

 

 

$

53,642

 

 

$

14,478

 

 

$

7,245

 

 

$

934

 

 

$

—

 

 

$

521,282

 

      Watch

 

 

93

 

 

 

1,560

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,679

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

290

 

 

 

182

 

 

 

250

 

 

 

23

 

 

 

—

 

 

 

745

 

      Substandard

 

 

35

 

 

 

82

 

 

 

80

 

 

 

77

 

 

 

6

 

 

 

 

 

 

—

 

 

 

280

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

Gross charge-offs, year ended December 31, 2022

 

$

84

 

 

$

645

 

 

$

503

 

 

$

—

 

 

$

96

 

 

$

144

 

 

$

—

 

 

$

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,407,462

 

 

$

1,227,066

 

 

$

502,470

 

 

$

257,750

 

 

$

262,867

 

 

$

648,219

 

 

$

628,010

 

 

$

4,933,844

 

      Watch

 

 

23,206

 

 

 

35,139

 

 

 

37,603

 

 

 

48,377

 

 

 

40,731

 

 

 

66,434

 

 

 

49,705

 

 

 

301,195

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

3,276

 

 

 

2,451

 

 

 

9,059

 

 

 

18,805

 

 

 

22,320

 

 

 

68,967

 

      Substandard

 

 

1,191

 

 

 

5,407

 

 

 

7,900

 

 

 

26,979

 

 

 

22,433

 

 

 

50,379

 

 

 

11,398

 

 

 

125,687

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

Gross charge-offs, year ended December 31, 2022

 

$

307

 

 

$

942

 

 

$

1,428

 

 

$

4,211

 

 

$

809

 

 

$

4,298

 

 

$

—

 

 

$

11,995

 

(1) Includes $8.4 million of substandard loans classified as held for sale.
Summary of Contractual Delinquency Information

The following tables summarize contractual delinquency information of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation at December 31, 2023 and December 31, 2022:

 

 

December 31, 2023

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

259,998

 

 

$

474,878

 

 

$

558,236

 

 

$

279,098

 

 

$

178,729

 

 

$

501,620

 

 

$

29,189

 

 

$

2,281,748

 

      30-59 Days Past Due

 

 

359

 

 

 

648

 

 

 

638

 

 

 

74

 

 

 

3,176

 

 

 

484

 

 

 

—

 

 

 

5,379

 

      60-89 Days Past Due

 

 

—

 

 

 

826

 

 

 

—

 

 

 

286

 

 

 

—

 

 

 

1,208

 

 

 

—

 

 

 

2,320

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

1,556

 

 

 

751

 

 

 

697

 

 

 

1,976

 

 

 

25,885

 

 

 

—

 

 

 

30,865

 

      Total Past Due

 

 

359

 

 

 

3,030

 

 

 

1,389

 

 

 

1,057

 

 

 

5,152

 

 

 

27,577

 

 

 

—

 

 

 

38,564

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

55,178

 

 

$

136,448

 

 

$

102,973

 

 

$

75,125

 

 

$

45,050

 

 

$

230,102

 

 

$

59,476

 

 

$

704,352

 

      30-59 Days Past Due

 

 

—

 

 

 

3,840

 

 

 

1,032

 

 

 

537

 

 

 

29

 

 

 

4,122

 

 

 

399

 

 

 

9,959

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21

 

 

 

127

 

 

 

—

 

 

 

148

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,474

 

 

 

952

 

 

 

5,071

 

      Total Past Due

 

 

—

 

 

 

3,840

 

 

 

1,139

 

 

 

726

 

 

 

399

 

 

 

7,723

 

 

 

1,351

 

 

 

15,178

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

83,841

 

 

$

156,815

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

524,488

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

516,747

 

 

$

552,251

 

 

$

351,534

 

 

$

114,859

 

 

$

83,780

 

 

$

177,239

 

 

$

611,766

 

 

$

2,408,176

 

      30-59 Days Past Due

 

 

—

 

 

 

1,545

 

 

 

1,099

 

 

 

238

 

 

 

2,513

 

 

 

400

 

 

 

455

 

 

 

6,250

 

      60-89 Days Past Due

 

 

—

 

 

 

1,505

 

 

 

—

 

 

 

234

 

 

 

3,416

 

 

 

1,139

 

 

 

496

 

 

 

6,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

6,177

 

 

 

2,828

 

 

 

4,546

 

 

 

1,529

 

 

 

11,594

 

 

 

671

 

 

 

27,345

 

      Total Past Due

 

 

—

 

 

 

9,227

 

 

 

3,927

 

 

 

5,018

 

 

 

7,458

 

 

 

13,133

 

 

 

1,622

 

 

 

40,385

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

325,833

 

 

$

206,800

 

 

$

93,795

 

 

$

29,292

 

 

$

5,537

 

 

$

889

 

 

$

—

 

 

$

662,146

 

      30-59 Days Past Due

 

 

726

 

 

 

426

 

 

 

153

 

 

 

38

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

1,349

 

      60-89 Days Past Due

 

 

540

 

 

 

481

 

 

 

302

 

 

 

218

 

 

 

3

 

 

 

1

 

 

 

—

 

 

 

1,545

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

138

 

 

 

384

 

 

 

45

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

826

 

      Total Past Due

 

 

1,525

 

 

 

1,045

 

 

 

839

 

 

 

301

 

 

 

7

 

 

 

3

 

 

 

—

 

 

 

3,720

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,242,161

 

 

$

1,527,324

 

 

$

1,321,778

 

 

$

552,689

 

 

$

326,021

 

 

$

911,718

 

 

$

702,419

 

 

$

6,584,110

 

      30-59 Days Past Due

 

 

1,085

 

 

 

6,459

 

 

 

2,922

 

 

 

887

 

 

 

5,722

 

 

 

5,008

 

 

 

854

 

 

 

22,937

 

      60-89 Days Past Due

 

 

540

 

 

 

5,161

 

 

 

302

 

 

 

738

 

 

 

3,440

 

 

 

2,475

 

 

 

496

 

 

 

13,152

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

7,871

 

 

 

4,070

 

 

 

5,477

 

 

 

3,854

 

 

 

40,953

 

 

 

1,623

 

 

 

64,107

 

      Total Past Due

 

 

1,884

 

 

 

19,491

 

 

 

7,294

 

 

 

7,102

 

 

 

13,016

 

 

 

48,436

 

 

 

2,973

 

 

 

100,196

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

Total non-accrual loans without an allowance included $1.6 million of commercial real estate loans, $3.6 million of residential real estate loans and $2.3 million of commercial and industrial loans as of December 31, 2023. The Company recognized $3.8 million of interest income on non-accrual loans and leases for the year ended December 31, 2023.

 

 

December 31, 2022

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans(1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

477,334

 

 

$

525,048

 

 

$

229,260

 

 

$

132,067

 

 

$

112,126

 

 

$

387,349

 

 

$

28,343

 

 

$

1,891,527

 

      30-59 Days Past Due

 

 

97

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

471

 

 

 

2,060

 

 

 

—

 

 

 

2,682

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,016

 

 

 

—

 

 

 

1,016

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

60

 

 

 

124

 

 

 

4,846

 

 

 

2,971

 

 

 

11,298

 

 

 

—

 

 

 

19,299

 

      Total Past Due

 

 

97

 

 

 

114

 

 

 

124

 

 

 

4,846

 

 

 

3,442

 

 

 

14,374

 

 

 

—

 

 

 

22,997

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

68,752

 

 

$

59,075

 

 

$

40,731

 

 

$

32,440

 

 

$

52,950

 

 

$

180,128

 

 

$

52,146

 

 

$

486,222

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

2,497

 

 

 

—

 

 

 

—

 

 

 

108

 

 

 

122

 

 

 

2,727

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,130

 

 

 

600

 

 

 

3,641

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

2,731

 

 

 

381

 

 

 

296

 

 

 

2,238

 

 

 

722

 

 

 

6,368

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,250

 

 

$

185

 

 

$

438,985

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

524,341

 

 

$

339,915

 

 

$

156,713

 

 

$

113,350

 

 

$

122,523

 

 

$

153,039

 

 

$

628,747

 

 

$

2,038,628

 

      30-59 Days Past Due

 

 

980

 

 

 

1,371

 

 

 

391

 

 

 

1,717

 

 

 

368

 

 

 

922

 

 

 

—

 

 

 

5,749

 

      60-89 Days Past Due

 

 

—

 

 

 

8

 

 

 

80

 

 

 

87

 

 

 

—

 

 

 

472

 

 

 

—

 

 

 

647

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,156

 

 

 

1,089

 

 

 

3,376

 

 

 

2,725

 

 

 

1,167

 

 

 

2,447

 

 

 

861

 

 

 

12,821

 

      Total Past Due

 

 

2,136

 

 

 

2,468

 

 

 

3,847

 

 

 

4,529

 

 

 

1,535

 

 

 

3,841

 

 

 

861

 

 

 

19,217

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

294,948

 

 

$

149,642

 

 

$

53,680

 

 

$

14,557

 

 

$

7,411

 

 

$

955

 

 

$

—

 

 

$

521,193

 

      30-59 Days Past Due

 

 

1,461

 

 

 

467

 

 

 

295

 

 

 

104

 

 

 

77

 

 

 

2

 

 

 

—

 

 

 

2,406

 

      60-89 Days Past Due

 

 

79

 

 

 

39

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

127

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

35

 

 

 

82

 

 

 

63

 

 

 

76

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

260

 

      Total Past Due

 

 

1,575

 

 

 

588

 

 

 

358

 

 

 

180

 

 

 

90

 

 

 

2

 

 

 

—

 

 

 

2,793

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,428,051

 

 

$

1,277,498

 

 

$

544,189

 

 

$

325,621

 

 

$

329,727

 

 

$

763,378

 

 

$

709,850

 

 

$

5,378,314

 

      30-59 Days Past Due

 

 

2,538

 

 

 

1,892

 

 

 

3,183

 

 

 

1,821

 

 

 

916

 

 

 

3,092

 

 

 

122

 

 

 

13,564

 

      60-89 Days Past Due

 

 

79

 

 

 

47

 

 

 

80

 

 

 

87

 

 

 

9

 

 

 

1,488

 

 

 

—

 

 

 

1,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,191

 

 

 

1,231

 

 

 

3,797

 

 

 

8,028

 

 

 

4,438

 

 

 

15,879

 

 

 

1,461

 

 

 

36,025

 

      Total Past Due

 

 

3,808

 

 

 

3,170

 

 

 

7,060

 

 

 

9,936

 

 

 

5,363

 

 

 

20,459

 

 

 

1,583

 

 

 

51,379

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

(1) Includes $8.4 million of substandard loans classified as held for sale.
Allowance for Credit Losses The following tables summarize the balance and activity within the allowance for credit losses, the components of the allowance for credit losses in terms of loans and leases individually and collectively evaluated for expected credit losses, and corresponding loan and lease balances by type for the years ended December 31, 2023, 2022 and 2021.

2023

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for credit losses - loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

Adjustment for acquired PCD loans

 

 

8,230

 

 

 

660

 

 

 

97

 

 

 

1,609

 

 

 

—

 

 

 

—

 

 

 

10,596

 

Provision/(recapture)

 

 

7,237

 

 

 

(402

)

 

 

(325

)

 

 

23,402

 

 

 

11

 

 

 

2,297

 

 

 

32,220

 

Charge-offs

 

 

(9,729

)

 

 

(21

)

 

 

—

 

 

 

(15,411

)

 

 

(3

)

 

 

(2,437

)

 

 

(27,601

)

Recoveries

 

 

1,438

 

 

 

118

 

 

 

—

 

 

 

2,293

 

 

 

4

 

 

 

694

 

 

 

4,547

 

Ending balance

 

$

33,237

 

 

$

3,495

 

 

$

2,906

 

 

$

53,782

 

 

$

36

 

 

$

8,230

 

 

$

101,686

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

12,361

 

 

$

—

 

 

$

—

 

 

$

14,880

 

 

$

—

 

 

$

—

 

 

$

27,241

 

Collectively evaluated for impairment

 

 

20,876

 

 

 

3,495

 

 

 

2,906

 

 

 

38,902

 

 

 

36

 

 

 

8,230

 

 

 

74,445

 

Total allowance for credit losses - loans and leases

 

$

33,237

 

 

$

3,495

 

 

$

2,906

 

 

$

53,782

 

 

$

36

 

 

$

8,230

 

 

$

101,686

 

 

2023

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

64,339

 

 

$

3,593

 

 

$

813

 

 

$

44,749

 

 

$

—

 

 

$

—

 

 

$

113,494

 

Collectively evaluated for
   impairment

 

 

2,255,973

 

 

 

715,937

 

 

 

526,024

 

 

 

2,403,812

 

 

 

3,200

 

 

 

665,866

 

 

 

6,570,812

 

Total loans and leases

 

$

2,320,312

 

 

$

719,530

 

 

$

526,837

 

 

$

2,448,561

 

 

$

3,200

 

 

$

665,866

 

 

$

6,684,306

 

2022

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land Development,
and Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for credit losses - loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance pre-CECL adoption

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

Impact of CECL adoption

 

 

6,367

 

 

 

1,047

 

 

 

1,191

 

 

 

1,253

 

 

 

9

 

 

 

2,301

 

 

 

12,168

 

Provision/(recapture)

 

 

5,252

 

 

 

907

 

 

 

1,476

 

 

 

12,002

 

 

 

(9

)

 

 

3,046

 

 

 

22,674

 

Charge-offs

 

 

(3,837

)

 

 

(1,208

)

 

 

(94

)

 

 

(5,377

)

 

 

(7

)

 

 

(1,472

)

 

 

(11,995

)

Recoveries

 

 

1,361

 

 

 

766

 

 

 

39

 

 

 

882

 

 

 

22

 

 

 

995

 

 

 

4,065

 

Ending balance

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

6,101

 

 

$

—

 

 

$

265

 

 

$

8,972

 

 

$

—

 

 

$

—

 

 

$

15,338

 

Collectively evaluated for impairment

 

 

19,960

 

 

 

3,140

 

 

 

2,869

 

 

 

32,917

 

 

 

24

 

 

 

7,676

 

 

 

66,586

 

Total allowance for credit losses - loans and leases

 

$

26,061

 

 

$

3,140

 

 

$

3,134

 

 

$

41,889

 

 

$

24

 

 

$

7,676

 

 

$

81,924

 

 

2022

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

37,959

 

 

$

879

 

 

$

5,541

 

 

$

47,846

 

 

$

—

 

 

$

—

 

 

$

92,225

 

Collectively evaluated for
   impairment

 

 

1,871,529

 

 

 

489,083

 

 

 

433,448

 

 

 

2,009,228

 

 

 

1,759

 

 

 

523,986

 

 

 

5,329,033

 

Total loans and leases

 

$

1,909,488

 

 

$

489,962

 

 

$

438,989

 

 

$

2,057,074

 

 

$

1,759

 

 

$

523,986

 

 

$

5,421,258

 

 

2021

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Allowance for loan and lease losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

19,584

 

 

$

2,400

 

 

$

1,352

 

 

$

41,183

 

 

$

15

 

 

$

1,813

 

 

$

66,347

 

Provision/(recapture)

 

 

1,263

 

 

 

(663

)

 

 

(504

)

 

 

(219

)

 

 

(6

)

 

 

1,586

 

 

 

1,457

 

Charge-offs

 

 

(4,698

)

 

 

(124

)

 

 

(326

)

 

 

(9,015

)

 

 

—

 

 

 

(1,501

)

 

 

(15,664

)

Recoveries

 

 

769

 

 

 

15

 

 

 

—

 

 

 

1,180

 

 

 

—

 

 

 

908

 

 

 

2,872

 

Ending balance

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

Ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

6,538

 

 

$

—

 

 

$

—

 

 

$

14,500

 

 

$

—

 

 

$

—

 

 

$

21,038

 

Collectively evaluated for impairment

 

 

8,570

 

 

 

622

 

 

 

519

 

 

 

18,265

 

 

 

7

 

 

 

2,806

 

 

 

30,789

 

Loans acquired with deteriorated credit
   quality

 

 

1,810

 

 

 

1,006

 

 

 

3

 

 

 

364

 

 

 

2

 

 

 

—

 

 

 

3,185

 

Total allowance for loan and lease losses

 

$

16,918

 

 

$

1,628

 

 

$

522

 

 

$

33,129

 

 

$

9

 

 

$

2,806

 

 

$

55,012

 

 

2021

 

Commercial
Real Estate

 

 

Residential
Real Estate

 

 

Construction,
Land
Development,
and
Other Land

 

 

Commercial
and
Industrial

 

 

Paycheck Protection Program

 

 

Installment
and Other

 

 

Lease
Financing
Receivables

 

 

Total

 

Loans and leases ending balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for
   impairment

 

$

35,051

 

 

$

1,802

 

 

$

—

 

 

$

36,070

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

72,923

 

Collectively evaluated for
   impairment

 

 

1,558,537

 

 

 

429,311

 

 

 

324,087

 

 

 

1,541,877

 

 

 

123,712

 

 

 

1,204

 

 

 

358,426

 

 

 

4,337,154

 

Loans acquired with deteriorated
   credit quality

 

 

72,160

 

 

 

49,401

 

 

 

1,312

 

 

 

4,014

 

 

 

—

 

 

 

164

 

 

 

—

 

 

 

127,051

 

Total loans and leases

 

$

1,665,748

 

 

$

480,514

 

 

$

325,399

 

 

$

1,581,961

 

 

$

123,712

 

 

$

1,368

 

 

$

358,426

 

 

$

4,537,128

 
Summary of Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized for Loans and Leases Considered Impaired

The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2021, which excludes acquired impaired loans:

 

 

2021

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

17,233

 

 

$

19,252

 

 

$

—

 

 

$

26,041

 

 

$

1,262

 

Residential real estate

 

 

1,802

 

 

 

1,919

 

 

 

—

 

 

 

2,647

 

 

 

123

 

Commercial and industrial

 

 

16,624

 

 

 

19,148

 

 

 

—

 

 

 

16,808

 

 

 

923

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

17,818

 

 

 

20,117

 

 

 

6,538

 

 

 

26,575

 

 

 

1,563

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

164

 

 

 

2

 

Commercial and industrial

 

 

19,446

 

 

 

21,198

 

 

 

14,500

 

 

 

27,251

 

 

 

2,114

 

Total impaired loans

 

$

72,923

 

 

$

81,634

 

 

$

21,038

 

 

$

99,486

 

 

$

5,987

 
Summary of Loans with Modified Terms

The following table presents loans with modified terms as of December 31, 2023:

December 31, 2023

 

Payment Delay

 

 

Term Modification

 

 

Combination Term Modification and Interest Rate Reduction

 

 

Total Modified by Class

 

 

% of Class of Loans and Leases

 

Modified loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

10,815

 

 

$

—

 

 

$

10,815

 

 

 

0.5

%

Commercial and industrial

 

 

43

 

 

 

62,289

 

 

 

364

 

 

 

62,696

 

 

 

2.6

%

Total modified loans

 

$

43

 

 

$

73,104

 

 

$

364

 

 

$

73,511

 

 

 

1.1

%
Summary of TDR's by Loan Category The tables below present TDRs by loan category as of December 31, 2022, and 2021. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs.

2022

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Individually Evaluated

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2

 

 

$

551

 

 

$

551

 

 

$

—

 

 

$

109

 

Commercial and industrial

 

 

1

 

 

 

24

 

 

 

24

 

 

 

—

 

 

 

34

 

Residential real estate

 

 

2

 

 

 

144

 

 

 

144

 

 

 

—

 

 

 

—

 

Total accruing

 

 

5

 

 

 

719

 

 

 

719

 

 

 

—

 

 

 

143

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

3

 

 

 

830

 

 

 

623

 

 

 

207

 

 

 

73

 

Commercial and industrial

 

 

6

 

 

 

2,017

 

 

 

982

 

 

 

1,035

 

 

 

38

 

Total non-accruing

 

 

9

 

 

 

2,847

 

 

 

1,605

 

 

 

1,242

 

 

 

111

 

Total troubled debt restructurings

 

 

14

 

 

$

3,566

 

 

$

2,324

 

 

$

1,242

 

 

$

254

 

 

2021

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Specific
Reserves

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

5

 

 

$

1,703

 

 

$

1,703

 

 

$

—

 

 

$

215

 

Commercial and industrial

 

 

1

 

 

 

56

 

 

 

56

 

 

 

—

 

 

 

131

 

Residential real estate

 

 

2

 

 

 

168

 

 

 

168

 

 

 

—

 

 

 

—

 

Total accruing

 

 

8

 

 

 

1,927

 

 

 

1,927

 

 

 

—

 

 

 

346

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

4

 

 

 

1,034

 

 

 

918

 

 

 

116

 

 

 

111

 

Commercial and industrial

 

 

3

 

 

 

1,745

 

 

 

588

 

 

 

1,157

 

 

 

—

 

Total non-accruing

 

 

7

 

 

 

2,779

 

 

 

1,506

 

 

 

1,273

 

 

 

111

 

Total troubled debt restructurings

 

 

15

 

 

$

4,706

 

 

$

3,433

 

 

$

1,273

 

 

$

457

 
Summary of Loans Modified as Troubled Debt Restructurings

Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2022, and 2021:

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

Accruing:

 

 

 

 

 

 

Beginning balance

 

$

1,927

 

 

$

2,495

 

Additions

 

 

—

 

 

 

281

 

Net payments

 

 

(1,208

)

 

 

(636

)

Net transfers (to) from non-accrual

 

 

—

 

 

 

(213

)

Ending balance

 

 

719

 

 

 

1,927

 

Non-accruing:

 

 

 

 

 

 

Beginning balance

 

 

1,506

 

 

 

5,650

 

Additions

 

 

756

 

 

 

673

 

Net payments

 

 

(536

)

 

 

(3,671

)

Charge-offs

 

 

(121

)

 

 

(1,359

)

Net transfers (to) from accrual

 

 

—

 

 

 

213

 

Ending balance

 

 

1,605

 

 

 

1,506

 

Total troubled debt restructurings

 

$

2,324

 

 

$

3,433

 
Summary Of Collateral Dependent Loans And Leases

The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of December 31, 2023 and 2022:

2023

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

28,767

 

 

$

35,572

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

64,339

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,793

 

 

 

800

 

 

 

—

 

 

 

—

 

 

 

3,593

 

Construction, land development,
  and other land

 

 

813

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

813

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,749

 

 

 

44,749

 

Total

 

$

813

 

 

$

28,767

 

 

$

35,572

 

 

$

2,793

 

 

$

800

 

 

$

—

 

 

$

44,749

 

 

$

113,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

9,749

 

 

$

28,210

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37,959

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

237

 

 

 

422

 

 

 

220

 

 

 

—

 

 

 

879

 

Construction, land development,
  and other land

 

 

5,541

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,541

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,034

 

 

 

26,034

 

Total

 

$

5,541

 

 

$

9,749

 

 

$

28,210

 

 

$

237

 

 

$

422

 

 

$

220

 

 

$

26,034

 

 

$

70,413

 
Summary of Change in Balance for Allowance for Credit Losses Unfunded Commitments

The following table presents the change in balance for allowance for credit losses - unfunded commitments, which are included in the Consolidated Statement of Financial Condition as part of Accrued expenses and other liabilities, as of December 31, 2023, 2022 and 2021:

 

 

For the Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,203

 

 

$

1,403

 

 

$

1,887

 

Impact of CECL adoption

 

 

—

 

 

 

1,595

 

 

 

—

 

Provision/(recapture) for/of unfunded commitments

 

 

(567

)

 

 

1,205

 

 

 

(484

)

Ending balance

 

$

3,636

 

 

$

4,203

 

 

$

1,403

 
v3.24.0.1
Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Summary of Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized for Loans and Leases Considered Impaired

The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2021, which excludes acquired impaired loans:

 

 

2021

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

17,233

 

 

$

19,252

 

 

$

—

 

 

$

26,041

 

 

$

1,262

 

Residential real estate

 

 

1,802

 

 

 

1,919

 

 

 

—

 

 

 

2,647

 

 

 

123

 

Commercial and industrial

 

 

16,624

 

 

 

19,148

 

 

 

—

 

 

 

16,808

 

 

 

923

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

17,818

 

 

 

20,117

 

 

 

6,538

 

 

 

26,575

 

 

 

1,563

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

164

 

 

 

2

 

Commercial and industrial

 

 

19,446

 

 

 

21,198

 

 

 

14,500

 

 

 

27,251

 

 

 

2,114

 

Total impaired loans

 

$

72,923

 

 

$

81,634

 

 

$

21,038

 

 

$

99,486

 

 

$

5,987

 
Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Credit Losses Calculation

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses calculation as of December 31, 2023 and 2022.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

 

 

December 31, 2023

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

247,856

 

 

$

452,127

 

 

$

516,624

 

 

$

229,053

 

 

$

143,283

 

 

$

388,872

 

 

$

28,360

 

 

$

2,006,175

 

      Watch

 

 

12,501

 

 

 

22,094

 

 

 

26,408

 

 

 

46,713

 

 

 

20,364

 

 

 

68,003

 

 

 

—

 

 

 

196,083

 

      Special Mention

 

 

—

 

 

 

799

 

 

 

10,752

 

 

 

2,618

 

 

 

12,751

 

 

 

25,790

 

 

 

—

 

 

 

52,710

 

      Substandard

 

 

—

 

 

 

2,888

 

 

 

5,841

 

 

 

1,771

 

 

 

7,483

 

 

 

46,532

 

 

 

829

 

 

 

65,344

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

193

 

 

$

60

 

 

$

1,511

 

 

$

4,054

 

 

$

3,911

 

 

$

—

 

 

$

9,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

55,178

 

 

$

135,477

 

 

$

104,005

 

 

$

54,651

 

 

$

37,806

 

 

$

225,593

 

 

$

57,865

 

 

$

670,575

 

      Watch

 

 

—

 

 

 

4,811

 

 

 

—

 

 

 

17,417

 

 

 

7,167

 

 

 

8,708

 

 

 

1,597

 

 

 

39,700

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,594

 

 

 

127

 

 

 

1

 

 

 

413

 

 

 

4,135

 

      Substandard

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,523

 

 

 

952

 

 

 

5,120

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

21

 

 

$

—

 

 

$

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development, & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

82,449

 

 

$

145,174

 

 

$

184,544

 

 

$

35,466

 

 

$

9,772

 

 

$

1,429

 

 

$

174

 

 

$

459,008

 

      Watch

 

 

1,392

 

 

 

13,990

 

 

 

21,313

 

 

 

18,716

 

 

 

3,125

 

 

 

—

 

 

 

—

 

 

 

58,536

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

9,279

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,279

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

14

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

475,720

 

 

$

514,902

 

 

$

288,392

 

 

$

109,430

 

 

$

73,059

 

 

$

147,168

 

 

$

524,348

 

 

$

2,133,019

 

      Watch

 

 

41,027

 

 

 

33,080

 

 

 

50,407

 

 

 

1,385

 

 

 

6,951

 

 

 

18,180

 

 

 

39,531

 

 

 

190,561

 

      Special Mention

 

 

—

 

 

 

6,164

 

 

 

10,595

 

 

 

2,631

 

 

 

1,112

 

 

 

6,643

 

 

 

36,354

 

 

 

63,499

 

      Substandard

 

 

—

 

 

 

7,332

 

 

 

6,067

 

 

 

6,431

 

 

 

10,116

 

 

 

18,381

 

 

 

13,155

 

 

 

61,482

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

Gross charge-offs, year ended December 31, 2023

 

$

1,518

 

 

$

1,938

 

 

$

5,372

 

 

$

4,451

 

 

$

1,087

 

 

$

1,045

 

 

$

—

 

 

$

15,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

564

 

 

$

132

 

 

$

79

 

 

$

133

 

 

$

28

 

 

$

424

 

 

$

1,814

 

 

$

3,174

 

      Watch

 

 

—

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

26

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

Gross charge-offs, year ended December 31, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

327,099

 

 

$

207,640

 

 

$

93,242

 

 

$

29,343

 

 

$

5,443

 

 

$

856

 

 

$

—

 

 

$

663,623

 

      Watch

 

 

—

 

 

 

67

 

 

 

1,008

 

 

 

16

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,091

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

179

 

 

 

101

 

 

 

36

 

 

 

—

 

 

 

316

 

      Substandard

 

 

259

 

 

 

138

 

 

 

384

 

 

 

55

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

836

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

Gross charge-offs, year ended December 31, 2023

 

$

734

 

 

$

886

 

 

$

549

 

 

$

139

 

 

$

75

 

 

$

54

 

 

$

—

 

 

$

2,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,188,866

 

 

$

1,455,452

 

 

$

1,186,886

 

 

$

458,076

 

 

$

269,391

 

 

$

764,342

 

 

$

612,561

 

 

$

5,935,574

 

      Watch

 

 

54,920

 

 

 

74,042

 

 

 

99,161

 

 

 

84,247

 

 

 

37,607

 

 

 

94,892

 

 

 

41,128

 

 

 

485,997

 

      Special Mention

 

 

—

 

 

 

6,963

 

 

 

30,626

 

 

 

9,022

 

 

 

14,091

 

 

 

32,470

 

 

 

36,767

 

 

 

129,939

 

      Substandard

 

 

259

 

 

 

10,358

 

 

 

12,399

 

 

 

8,446

 

 

 

17,948

 

 

 

68,450

 

 

 

14,936

 

 

 

132,796

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

Gross charge-offs, year ended December 31, 2023

 

$

2,252

 

 

$

3,017

 

 

$

5,981

 

 

$

6,101

 

 

$

5,216

 

 

$

5,034

 

 

$

—

 

 

$

27,601

 

 

 

 

December 31, 2022

 

 

 

Term loans amortized cost by origination year

 

 

Revolving

 

 

Total

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Loans

 

 

Loans (1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

471,009

 

 

$

510,529

 

 

$

207,765

 

 

$

111,792

 

 

$

84,382

 

 

$

324,271

 

 

$

28,343

 

 

$

1,738,091

 

      Watch

 

 

6,422

 

 

 

12,723

 

 

 

20,583

 

 

 

11,004

 

 

 

17,269

 

 

 

44,462

 

 

 

—

 

 

 

112,463

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

121

 

 

 

1,075

 

 

 

1,232

 

 

 

10,075

 

 

 

—

 

 

 

12,503

 

      Substandard

 

 

—

 

 

 

1,910

 

 

 

915

 

 

 

13,042

 

 

 

12,685

 

 

 

22,915

 

 

 

—

 

 

 

51,467

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

186

 

 

$

101

 

 

$

1,766

 

 

$

35

 

 

$

1,749

 

 

$

—

 

 

$

3,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

68,752

 

 

$

59,075

 

 

$

41,768

 

 

$

31,726

 

 

$

48,432

 

 

$

170,279

 

 

$

49,622

 

 

$

469,654

 

      Watch

 

 

—

 

 

 

—

 

 

 

1,137

 

 

 

682

 

 

 

4,098

 

 

 

9,026

 

 

 

2,586

 

 

 

17,529

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

323

 

 

 

32

 

 

 

420

 

 

 

876

 

 

 

—

 

 

 

1,651

 

      Substandard

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,185

 

 

 

660

 

 

 

3,756

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

33

 

 

$

35

 

 

$

1,140

 

 

$

—

 

 

$

1,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

62,310

 

 

$

203,672

 

 

$

61,895

 

 

$

27,189

 

 

$

26,489

 

 

$

38,186

 

 

$

185

 

 

$

419,926

 

      Watch

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,409

 

 

 

—

 

 

 

3,064

 

 

 

—

 

 

 

7,473

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

1,845

 

 

 

—

 

 

 

4,199

 

 

 

—

 

 

 

—

 

 

 

6,044

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,530

 

 

 

4,012

 

 

 

4

 

 

 

—

 

 

 

5,546

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

94

 

 

$

—

 

 

$

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

508,664

 

 

$

305,056

 

 

$

137,335

 

 

$

72,486

 

 

$

96,304

 

 

$

113,965

 

 

$

549,431

 

 

$

1,783,241

 

      Watch

 

 

16,657

 

 

 

20,856

 

 

 

15,857

 

 

 

32,282

 

 

 

19,362

 

 

 

9,809

 

 

 

47,119

 

 

 

161,942

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

697

 

 

 

1,162

 

 

 

2,958

 

 

 

7,831

 

 

 

22,320

 

 

 

48,024

 

      Substandard

 

 

1,156

 

 

 

3,415

 

 

 

6,671

 

 

 

11,949

 

 

 

5,434

 

 

 

25,275

 

 

 

10,738

 

 

 

64,638

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

Gross charge-offs, year ended December 31, 2022

 

$

223

 

 

$

111

 

 

$

824

 

 

$

2,412

 

 

$

643

 

 

$

1,164

 

 

$

—

 

 

$

5,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

332

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

15

 

 

$

584

 

 

$

429

 

 

$

1,650

 

      Watch

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

73

 

 

 

—

 

 

 

109

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

Gross charge-offs, year ended December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7

 

 

$

—

 

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

296,395

 

 

$

148,588

 

 

$

53,642

 

 

$

14,478

 

 

$

7,245

 

 

$

934

 

 

$

—

 

 

$

521,282

 

      Watch

 

 

93

 

 

 

1,560

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,679

 

      Special Mention

 

 

—

 

 

 

—

 

 

 

290

 

 

 

182

 

 

 

250

 

 

 

23

 

 

 

—

 

 

 

745

 

      Substandard

 

 

35

 

 

 

82

 

 

 

80

 

 

 

77

 

 

 

6

 

 

 

 

 

 

—

 

 

 

280

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

Gross charge-offs, year ended December 31, 2022

 

$

84

 

 

$

645

 

 

$

503

 

 

$

—

 

 

$

96

 

 

$

144

 

 

$

—

 

 

$

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Pass

 

$

1,407,462

 

 

$

1,227,066

 

 

$

502,470

 

 

$

257,750

 

 

$

262,867

 

 

$

648,219

 

 

$

628,010

 

 

$

4,933,844

 

      Watch

 

 

23,206

 

 

 

35,139

 

 

 

37,603

 

 

 

48,377

 

 

 

40,731

 

 

 

66,434

 

 

 

49,705

 

 

 

301,195

 

      Special Mention

 

 

—

 

 

 

13,056

 

 

 

3,276

 

 

 

2,451

 

 

 

9,059

 

 

 

18,805

 

 

 

22,320

 

 

 

68,967

 

      Substandard

 

 

1,191

 

 

 

5,407

 

 

 

7,900

 

 

 

26,979

 

 

 

22,433

 

 

 

50,379

 

 

 

11,398

 

 

 

125,687

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

Gross charge-offs, year ended December 31, 2022

 

$

307

 

 

$

942

 

 

$

1,428

 

 

$

4,211

 

 

$

809

 

 

$

4,298

 

 

$

—

 

 

$

11,995

 

(1) Includes $8.4 million of substandard loans classified as held for sale.
Summary of Contractual Delinquency Information

The following tables summarize contractual delinquency information of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation at December 31, 2023 and December 31, 2022:

 

 

December 31, 2023

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

259,998

 

 

$

474,878

 

 

$

558,236

 

 

$

279,098

 

 

$

178,729

 

 

$

501,620

 

 

$

29,189

 

 

$

2,281,748

 

      30-59 Days Past Due

 

 

359

 

 

 

648

 

 

 

638

 

 

 

74

 

 

 

3,176

 

 

 

484

 

 

 

—

 

 

 

5,379

 

      60-89 Days Past Due

 

 

—

 

 

 

826

 

 

 

—

 

 

 

286

 

 

 

—

 

 

 

1,208

 

 

 

—

 

 

 

2,320

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

1,556

 

 

 

751

 

 

 

697

 

 

 

1,976

 

 

 

25,885

 

 

 

—

 

 

 

30,865

 

      Total Past Due

 

 

359

 

 

 

3,030

 

 

 

1,389

 

 

 

1,057

 

 

 

5,152

 

 

 

27,577

 

 

 

—

 

 

 

38,564

 

         Total

 

$

260,357

 

 

$

477,908

 

 

$

559,625

 

 

$

280,155

 

 

$

183,881

 

 

$

529,197

 

 

$

29,189

 

 

$

2,320,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

55,178

 

 

$

136,448

 

 

$

102,973

 

 

$

75,125

 

 

$

45,050

 

 

$

230,102

 

 

$

59,476

 

 

$

704,352

 

      30-59 Days Past Due

 

 

—

 

 

 

3,840

 

 

 

1,032

 

 

 

537

 

 

 

29

 

 

 

4,122

 

 

 

399

 

 

 

9,959

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21

 

 

 

127

 

 

 

—

 

 

 

148

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

107

 

 

 

189

 

 

 

349

 

 

 

3,474

 

 

 

952

 

 

 

5,071

 

      Total Past Due

 

 

—

 

 

 

3,840

 

 

 

1,139

 

 

 

726

 

 

 

399

 

 

 

7,723

 

 

 

1,351

 

 

 

15,178

 

         Total

 

$

55,178

 

 

$

140,288

 

 

$

104,112

 

 

$

75,851

 

 

$

45,449

 

 

$

237,825

 

 

$

60,827

 

 

$

719,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

83,841

 

 

$

156,815

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

524,488

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

2,349

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,349

 

         Total

 

$

83,841

 

 

$

159,164

 

 

$

215,136

 

 

$

54,182

 

 

$

12,897

 

 

$

1,443

 

 

$

174

 

 

$

526,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

516,747

 

 

$

552,251

 

 

$

351,534

 

 

$

114,859

 

 

$

83,780

 

 

$

177,239

 

 

$

611,766

 

 

$

2,408,176

 

      30-59 Days Past Due

 

 

—

 

 

 

1,545

 

 

 

1,099

 

 

 

238

 

 

 

2,513

 

 

 

400

 

 

 

455

 

 

 

6,250

 

      60-89 Days Past Due

 

 

—

 

 

 

1,505

 

 

 

—

 

 

 

234

 

 

 

3,416

 

 

 

1,139

 

 

 

496

 

 

 

6,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

6,177

 

 

 

2,828

 

 

 

4,546

 

 

 

1,529

 

 

 

11,594

 

 

 

671

 

 

 

27,345

 

      Total Past Due

 

 

—

 

 

 

9,227

 

 

 

3,927

 

 

 

5,018

 

 

 

7,458

 

 

 

13,133

 

 

 

1,622

 

 

 

40,385

 

         Total

 

$

516,747

 

 

$

561,478

 

 

$

355,461

 

 

$

119,877

 

 

$

91,238

 

 

$

190,372

 

 

$

613,388

 

 

$

2,448,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

564

 

 

$

132

 

 

$

104

 

 

$

133

 

 

$

28

 

 

$

425

 

 

$

1,814

 

 

$

3,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

325,833

 

 

$

206,800

 

 

$

93,795

 

 

$

29,292

 

 

$

5,537

 

 

$

889

 

 

$

—

 

 

$

662,146

 

      30-59 Days Past Due

 

 

726

 

 

 

426

 

 

 

153

 

 

 

38

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

1,349

 

      60-89 Days Past Due

 

 

540

 

 

 

481

 

 

 

302

 

 

 

218

 

 

 

3

 

 

 

1

 

 

 

—

 

 

 

1,545

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

138

 

 

 

384

 

 

 

45

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

826

 

      Total Past Due

 

 

1,525

 

 

 

1,045

 

 

 

839

 

 

 

301

 

 

 

7

 

 

 

3

 

 

 

—

 

 

 

3,720

 

         Total

 

$

327,358

 

 

$

207,845

 

 

$

94,634

 

 

$

29,593

 

 

$

5,544

 

 

$

892

 

 

$

—

 

 

$

665,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,242,161

 

 

$

1,527,324

 

 

$

1,321,778

 

 

$

552,689

 

 

$

326,021

 

 

$

911,718

 

 

$

702,419

 

 

$

6,584,110

 

      30-59 Days Past Due

 

 

1,085

 

 

 

6,459

 

 

 

2,922

 

 

 

887

 

 

 

5,722

 

 

 

5,008

 

 

 

854

 

 

 

22,937

 

      60-89 Days Past Due

 

 

540

 

 

 

5,161

 

 

 

302

 

 

 

738

 

 

 

3,440

 

 

 

2,475

 

 

 

496

 

 

 

13,152

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

259

 

 

 

7,871

 

 

 

4,070

 

 

 

5,477

 

 

 

3,854

 

 

 

40,953

 

 

 

1,623

 

 

 

64,107

 

      Total Past Due

 

 

1,884

 

 

 

19,491

 

 

 

7,294

 

 

 

7,102

 

 

 

13,016

 

 

 

48,436

 

 

 

2,973

 

 

 

100,196

 

         Total

 

$

1,244,045

 

 

$

1,546,815

 

 

$

1,329,072

 

 

$

559,791

 

 

$

339,037

 

 

$

960,154

 

 

$

705,392

 

 

$

6,684,306

 

Total non-accrual loans without an allowance included $1.6 million of commercial real estate loans, $3.6 million of residential real estate loans and $2.3 million of commercial and industrial loans as of December 31, 2023. The Company recognized $3.8 million of interest income on non-accrual loans and leases for the year ended December 31, 2023.

 

 

December 31, 2022

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Revolving
Loans

 

 

Total
Loans(1)

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

477,334

 

 

$

525,048

 

 

$

229,260

 

 

$

132,067

 

 

$

112,126

 

 

$

387,349

 

 

$

28,343

 

 

$

1,891,527

 

      30-59 Days Past Due

 

 

97

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

471

 

 

 

2,060

 

 

 

—

 

 

 

2,682

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,016

 

 

 

—

 

 

 

1,016

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

60

 

 

 

124

 

 

 

4,846

 

 

 

2,971

 

 

 

11,298

 

 

 

—

 

 

 

19,299

 

      Total Past Due

 

 

97

 

 

 

114

 

 

 

124

 

 

 

4,846

 

 

 

3,442

 

 

 

14,374

 

 

 

—

 

 

 

22,997

 

         Total

 

$

477,431

 

 

$

525,162

 

 

$

229,384

 

 

$

136,913

 

 

$

115,568

 

 

$

401,723

 

 

$

28,343

 

 

$

1,914,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

68,752

 

 

$

59,075

 

 

$

40,731

 

 

$

32,440

 

 

$

52,950

 

 

$

180,128

 

 

$

52,146

 

 

$

486,222

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

2,497

 

 

 

—

 

 

 

—

 

 

 

108

 

 

 

122

 

 

 

2,727

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

234

 

 

 

381

 

 

 

296

 

 

 

2,130

 

 

 

600

 

 

 

3,641

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

2,731

 

 

 

381

 

 

 

296

 

 

 

2,238

 

 

 

722

 

 

 

6,368

 

         Total

 

$

68,752

 

 

$

59,075

 

 

$

43,462

 

 

$

32,821

 

 

$

53,246

 

 

$

182,366

 

 

$

52,868

 

 

$

492,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, Land Development,
  & Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,250

 

 

$

185

 

 

$

438,985

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

         Total

 

$

62,310

 

 

$

203,672

 

 

$

63,740

 

 

$

33,128

 

 

$

34,700

 

 

$

41,254

 

 

$

185

 

 

$

438,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

524,341

 

 

$

339,915

 

 

$

156,713

 

 

$

113,350

 

 

$

122,523

 

 

$

153,039

 

 

$

628,747

 

 

$

2,038,628

 

      30-59 Days Past Due

 

 

980

 

 

 

1,371

 

 

 

391

 

 

 

1,717

 

 

 

368

 

 

 

922

 

 

 

—

 

 

 

5,749

 

      60-89 Days Past Due

 

 

—

 

 

 

8

 

 

 

80

 

 

 

87

 

 

 

—

 

 

 

472

 

 

 

—

 

 

 

647

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,156

 

 

 

1,089

 

 

 

3,376

 

 

 

2,725

 

 

 

1,167

 

 

 

2,447

 

 

 

861

 

 

 

12,821

 

      Total Past Due

 

 

2,136

 

 

 

2,468

 

 

 

3,847

 

 

 

4,529

 

 

 

1,535

 

 

 

3,841

 

 

 

861

 

 

 

19,217

 

         Total

 

$

526,477

 

 

$

342,383

 

 

$

160,560

 

 

$

117,879

 

 

$

124,058

 

 

$

156,880

 

 

$

629,608

 

 

$

2,057,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installment and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

      30-59 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      60-89 Days Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Total Past Due

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

         Total

 

$

366

 

 

$

146

 

 

$

65

 

 

$

79

 

 

$

17

 

 

$

657

 

 

$

429

 

 

$

1,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

294,948

 

 

$

149,642

 

 

$

53,680

 

 

$

14,557

 

 

$

7,411

 

 

$

955

 

 

$

—

 

 

$

521,193

 

      30-59 Days Past Due

 

 

1,461

 

 

 

467

 

 

 

295

 

 

 

104

 

 

 

77

 

 

 

2

 

 

 

—

 

 

 

2,406

 

      60-89 Days Past Due

 

 

79

 

 

 

39

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

127

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

35

 

 

 

82

 

 

 

63

 

 

 

76

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

260

 

      Total Past Due

 

 

1,575

 

 

 

588

 

 

 

358

 

 

 

180

 

 

 

90

 

 

 

2

 

 

 

—

 

 

 

2,793

 

         Total

 

$

296,523

 

 

$

150,230

 

 

$

54,038

 

 

$

14,737

 

 

$

7,501

 

 

$

957

 

 

$

—

 

 

$

523,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Current

 

$

1,428,051

 

 

$

1,277,498

 

 

$

544,189

 

 

$

325,621

 

 

$

329,727

 

 

$

763,378

 

 

$

709,850

 

 

$

5,378,314

 

      30-59 Days Past Due

 

 

2,538

 

 

 

1,892

 

 

 

3,183

 

 

 

1,821

 

 

 

916

 

 

 

3,092

 

 

 

122

 

 

 

13,564

 

      60-89 Days Past Due

 

 

79

 

 

 

47

 

 

 

80

 

 

 

87

 

 

 

9

 

 

 

1,488

 

 

 

—

 

 

 

1,790

 

      Greater than 90 Accruing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

      Non-accrual

 

 

1,191

 

 

 

1,231

 

 

 

3,797

 

 

 

8,028

 

 

 

4,438

 

 

 

15,879

 

 

 

1,461

 

 

 

36,025

 

      Total Past Due

 

 

3,808

 

 

 

3,170

 

 

 

7,060

 

 

 

9,936

 

 

 

5,363

 

 

 

20,459

 

 

 

1,583

 

 

 

51,379

 

         Total

 

$

1,431,859

 

 

$

1,280,668

 

 

$

551,249

 

 

$

335,557

 

 

$

335,090

 

 

$

783,837

 

 

$

711,433

 

 

$

5,429,693

 

(1) Includes $8.4 million of substandard loans classified as held for sale.
Summary of TDR's by Loan Category The tables below present TDRs by loan category as of December 31, 2022, and 2021. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs.

2022

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Individually Evaluated

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2

 

 

$

551

 

 

$

551

 

 

$

—

 

 

$

109

 

Commercial and industrial

 

 

1

 

 

 

24

 

 

 

24

 

 

 

—

 

 

 

34

 

Residential real estate

 

 

2

 

 

 

144

 

 

 

144

 

 

 

—

 

 

 

—

 

Total accruing

 

 

5

 

 

 

719

 

 

 

719

 

 

 

—

 

 

 

143

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

3

 

 

 

830

 

 

 

623

 

 

 

207

 

 

 

73

 

Commercial and industrial

 

 

6

 

 

 

2,017

 

 

 

982

 

 

 

1,035

 

 

 

38

 

Total non-accruing

 

 

9

 

 

 

2,847

 

 

 

1,605

 

 

 

1,242

 

 

 

111

 

Total troubled debt restructurings

 

 

14

 

 

$

3,566

 

 

$

2,324

 

 

$

1,242

 

 

$

254

 

 

2021

 

Number
of
Loans

 

 

Pre-Modification
Outstanding
Recorded
Investment

 

 

Post-Modification
Outstanding
Recorded
Investment

 

 

Charge-offs

 

 

Specific
Reserves

 

Accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

5

 

 

$

1,703

 

 

$

1,703

 

 

$

—

 

 

$

215

 

Commercial and industrial

 

 

1

 

 

 

56

 

 

 

56

 

 

 

—

 

 

 

131

 

Residential real estate

 

 

2

 

 

 

168

 

 

 

168

 

 

 

—

 

 

 

—

 

Total accruing

 

 

8

 

 

 

1,927

 

 

 

1,927

 

 

 

—

 

 

 

346

 

Non-accruing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

4

 

 

 

1,034

 

 

 

918

 

 

 

116

 

 

 

111

 

Commercial and industrial

 

 

3

 

 

 

1,745

 

 

 

588

 

 

 

1,157

 

 

 

—

 

Total non-accruing

 

 

7

 

 

 

2,779

 

 

 

1,506

 

 

 

1,273

 

 

 

111

 

Total troubled debt restructurings

 

 

15

 

 

$

4,706

 

 

$

3,433

 

 

$

1,273

 

 

$

457

 
Summary of Loans Modified as Troubled Debt Restructurings

Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2022, and 2021:

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

Accruing:

 

 

 

 

 

 

Beginning balance

 

$

1,927

 

 

$

2,495

 

Additions

 

 

—

 

 

 

281

 

Net payments

 

 

(1,208

)

 

 

(636

)

Net transfers (to) from non-accrual

 

 

—

 

 

 

(213

)

Ending balance

 

 

719

 

 

 

1,927

 

Non-accruing:

 

 

 

 

 

 

Beginning balance

 

 

1,506

 

 

 

5,650

 

Additions

 

 

756

 

 

 

673

 

Net payments

 

 

(536

)

 

 

(3,671

)

Charge-offs

 

 

(121

)

 

 

(1,359

)

Net transfers (to) from accrual

 

 

—

 

 

 

213

 

Ending balance

 

 

1,605

 

 

 

1,506

 

Total troubled debt restructurings

 

$

2,324

 

 

$

3,433

 
Summary Of Collateral Dependent Loans And Leases

The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of December 31, 2023 and 2022:

2023

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

28,767

 

 

$

35,572

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

64,339

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,793

 

 

 

800

 

 

 

—

 

 

 

—

 

 

 

3,593

 

Construction, land development,
  and other land

 

 

813

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

813

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,749

 

 

 

44,749

 

Total

 

$

813

 

 

$

28,767

 

 

$

35,572

 

 

$

2,793

 

 

$

800

 

 

$

—

 

 

$

44,749

 

 

$

113,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Commercial Construction

 

 

Non-owner Occupied Commercial

 

 

Owner-Occupied Commercial

 

 

Multi-Family

 

 

Single Family Residence (1st Lien)

 

 

Single Family Residence (2nd Lien)

 

 

Business Assets

 

 

Total

 

Commercial real estate

 

$

—

 

 

$

9,749

 

 

$

28,210

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37,959

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

237

 

 

 

422

 

 

 

220

 

 

 

—

 

 

 

879

 

Construction, land development,
  and other land

 

 

5,541

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,541

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,034

 

 

 

26,034

 

Total

 

$

5,541

 

 

$

9,749

 

 

$

28,210

 

 

$

237

 

 

$

422

 

 

$

220

 

 

$

26,034

 

 

$

70,413

 
Summary of Change in Balance for Allowance for Credit Losses Unfunded Commitments

The following table presents the change in balance for allowance for credit losses - unfunded commitments, which are included in the Consolidated Statement of Financial Condition as part of Accrued expenses and other liabilities, as of December 31, 2023, 2022 and 2021:

 

 

For the Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,203

 

 

$

1,403

 

 

$

1,887

 

Impact of CECL adoption

 

 

—

 

 

 

1,595

 

 

 

—

 

Provision/(recapture) for/of unfunded commitments

 

 

(567

)

 

 

1,205

 

 

 

(484

)

Ending balance

 

$

3,636

 

 

$

4,203

 

 

$

1,403

 
v3.24.0.1
Servicing Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Activity for Servicing Assets and Related Changes in Fair Value

Activity for servicing assets and the related changes in fair value for the years ended December 31, 2023, 2022 and 2021 is as follows:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

19,172

 

 

$

23,744

 

 

$

22,042

 

Additions, net

 

 

5,761

 

 

 

7,171

 

 

 

8,360

 

Changes in fair value

 

 

(5,089

)

 

 

(11,743

)

 

 

(6,658

)

Ending balance

 

$

19,844

 

 

$

19,172

 

 

$

23,744

 
Unpaid Principal Balances of Loans Serviced for Others

Loans serviced for others are not included in the Consolidated Statements of Financial Condition. The unpaid principal balances of these loans serviced for others were as follows as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Loan portfolios serviced for:

 

 

 

 

 

 

SBA guaranteed loans

 

$

1,530,401

 

 

$

1,521,014

 

USDA guaranteed loans

 

 

197,942

 

 

 

211,150

 

Total

 

$

1,728,343

 

 

$

1,732,164

 
v3.24.0.1
Other Real Estate Owned (Tables)
 12 Months Ended
Dec. 31, 2023
Real Estate [Abstract]  
Change in Other Real Estate Owned

The following table presents the change in OREO for the years ended December 31, 2023, 2022 and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,717

 

 

$

2,112

 

 

$

6,350

 

Net additions to OREO

 

 

571

 

 

 

3,343

 

 

 

571

 

Proceeds from sales of OREO

 

 

(3,580

)

 

 

(491

)

 

 

(4,285

)

Gains (losses) on sales of OREO

 

 

(81

)

 

 

78

 

 

 

390

 

Valuation adjustments

 

 

(427

)

 

 

(325

)

 

 

(914

)

Ending balance

 

$

1,200

 

 

$

4,717

 

 

$

2,112

 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Summary of Lease Costs and Company's Operating Leases

The following table presents certain information related to the lease costs for operating leases included as a component of occupancy expense on the Consolidated Statement of Operations for the years ended December 31, 2023, 2022 and 2021:

 

 

2023

 

 

2022

 

 

 

2021

 

Operating lease cost

 

$

2,738

 

 

$

2,760

 

 

$

3,461

 

Short-term lease cost

 

 

434

 

 

 

214

 

 

 

160

 

Variable lease cost

 

 

1,675

 

 

 

1,585

 

 

 

1,819

 

Less: Sublease income

 

 

(630

)

 

 

(572

)

 

 

(653

)

Total lease cost, net

 

$

4,217

 

 

$

3,987

 

 

$

4,787

 
Schedule of Future Minimum Lease Payments for Operating Leases

The future minimum lease payments for finance leases and operating leases, subsequent to December 31, 2023, as recorded on the balance sheet, are summarized as follows:

 

 

Operating Lease
Commitments

 

2024

 

$

3,807

 

2025

 

 

3,227

 

2026

 

 

2,490

 

2027

 

 

1,443

 

2028

 

 

1,122

 

Thereafter

 

 

4,058

 

Total

 

$

16,147

 

Imputed interest

 

 

(1,879

)

Present value of future minimum lease payments

 

$

14,268

 
v3.24.0.1
Premises and Equipment and Assets Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule for Classification of Premises and Equipment

Classifications of premises and equipment as of December 31, 2023 and 2022 and were as follows:

 

 

2023

 

 

2022

 

Premises

 

$

43,883

 

 

$

41,340

 

Furniture, fixtures and equipment

 

 

16,789

 

 

 

16,032

 

Leasehold improvements

 

 

7,182

 

 

 

5,331

 

Total cost

 

 

67,854

 

 

 

62,703

 

Less accumulated depreciation, amortization and impairment

 

 

(33,398

)

 

 

(34,606

)

Net book value of premises, furniture, fixtures, equipment, and leasehold improvements

 

 

34,456

 

 

 

28,097

 

Construction in progress

 

 

374

 

 

 

57

 

Land

 

 

31,797

 

 

 

28,644

 

Premises and equipment, net

 

$

66,627

 

 

$

56,798

 
Change in Assets Held for Sale The following table presents the change in assets held for sale for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

8,673

 

 

$

9,153

 

 

$

13,023

 

Transfers in

 

 

—

 

 

 

2,961

 

 

 

16,870

 

Proceeds from sales

 

 

(2,538

)

 

 

(3,277

)

 

 

(9,040

)

Net gains on sales

 

 

349

 

 

 

208

 

 

 

632

 

Impairment charge

 

 

(2,000

)

 

 

(372

)

 

 

(12,332

)

Ending balance

 

$

4,484

 

 

$

8,673

 

 

$

9,153

 
v3.24.0.1
Goodwill, Core Deposit Intangible and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Changes in Goodwill, Core Deposit Intangible Assets and Customer Relationship Intangible Assets

The following table summarizes the changes in the Company’s goodwill and core deposit intangible assets for the years ended December 31, 2023, 2022, and 2021:

 

2023

 

 

2022

 

 

2021

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

 

Goodwill

 

Core Deposit
Intangible

 

 

Customer
Relationship
Intangible

 

Beginning balance

$

148,353

 

$

8,886

 

 

$

1,648

 

 

$

148,353

 

$

15,004

 

 

$

2,201

 

 

$

148,353

 

$

21,809

 

 

$

2,469

 

Additions

 

33,352

 

 

17,250

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Amortization or accretion

 

—

 

 

(5,743

)

 

 

(268

)

 

 

—

 

 

(6,118

)

 

 

(553

)

 

 

—

 

 

(6,805

)

 

 

(268

)

Ending balance

$

181,705

 

$

20,393

 

 

$

1,380

 

 

$

148,353

 

$

8,886

 

 

$

1,648

 

 

$

148,353

 

$

15,004

 

 

$

2,201

 

Accumulated amortization
   or accretion

N/A

 

$

52,323

 

 

$

1,836

 

 

N/A

 

$

46,580

 

 

$

1,568

 

 

N/A

 

$

40,462

 

 

$

1,015

 

Weighted average
  remaining amortization
  or accretion period

N/A

 

8.3 Years

 

 

5.2 Years

 

 

N/A

 

4.4 Years

 

 

6.2 Years

 

 

N/A

 

4.8 Years

 

 

8.3 Years

 
Estimated Amortization Expense for Core Deposit Intangible and Customer Relationship Intangible Recognized

The following table presents the estimated amortization expense for core deposit intangible and other intangible assets recognized at December 31, 2023:

 

 

Estimated
Amortization

 

2024

 

$

5,380

 

2025

 

 

4,473

 

2026

 

 

3,566

 

2027

 

 

2,676

 

2028

 

 

2,101

 

Thereafter

 

 

3,577

 

Total

 

$

21,773

 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of components of provision for income taxes

The following were the components of provision for income taxes for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Current tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

6,349

 

 

$

(3,774

)

 

$

21,605

 

State and local

 

 

4,875

 

 

 

4,939

 

 

 

9,882

 

Total current tax expense

 

 

11,224

 

 

 

1,165

 

 

 

31,487

 

Deferred tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

23,569

 

 

 

25,157

 

 

 

2,966

 

State and local

 

 

3,009

 

 

 

407

 

 

 

(3,026

)

Total deferred tax expense (benefit)

 

 

26,578

 

 

 

25,564

 

 

 

(60

)

Provision for income taxes

 

$

37,802

 

 

$

26,729

 

 

$

31,427

 
T
Schedule of reconciliation between statutory U.S. federal income tax rate and effective tax rate he following is a reconciliation between the statutory U.S. federal income tax rate of 21% for 2023, 2022 and 2021, and the effective tax rate:

 

 

2023

 

 

2022

 

 

2021

 

 

Calculated tax expense at statutory rate

 

 

21.0

 

%

 

21.0

 

%

 

21.0

 

%

Increase (decrease) in income taxes resulting from:

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal income tax

 

 

5.4

 

 

 

4.8

 

 

 

5.4

 

 

Tax exempt income

 

 

(0.8

)

 

 

(1.0

)

 

 

(0.9

)

 

Share-based compensation

 

 

(0.2

)

 

 

(1.7

)

 

 

(0.2

)

 

Non-deductible expenses

 

 

0.5

 

 

 

0.2

 

 

 

—

 

 

Total income tax expense

 

 

25.9

 

%

 

23.3

 

%

 

25.3

 

%
Schedule of components of deferred tax assets and liabilities

The following were the significant components of the deferred tax assets and liabilities as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses

 

$

22,292

 

 

$

22,008

 

Interest on non-accrual loans

 

 

5,652

 

 

 

2,610

 

Allowance for credit losses - loans and leases and loan basis

 

 

38,204

 

 

 

23,721

 

Servicing assets

 

 

2,702

 

 

 

3,511

 

Premises and equipment

 

 

5,603

 

 

 

4,671

 

Other real estate owned

 

 

441

 

 

 

356

 

Net unrealized holding loss on securities available-for-sale

 

 

46,492

 

 

 

54,465

 

Accrued expenses

 

 

5,365

 

 

 

5,375

 

Other

 

 

5,761

 

 

 

3,343

 

Total deferred tax assets

 

 

132,512

 

 

 

120,060

 

Deferred tax liabilities:

 

 

 

 

 

 

Equipment leasing

 

 

(59,218

)

 

 

(32,872

)

Core deposit intangibles

 

 

(5,807

)

 

 

(2,814

)

Deposits

 

 

(343

)

 

 

—

 

Trust preferred securities

 

 

(4,413

)

 

 

(2,046

)

Net unrealized holding gain on cash flow hedges

 

 

(10,959

)

 

 

(12,506

)

Other

 

 

(1,714

)

 

 

(1,609

)

Total deferred tax liabilities

 

 

(82,454

)

 

 

(51,847

)

Net deferred tax assets

 

$

50,058

 

 

$

68,213

 

 
Operating Loss and Credit Carryforwards

The following were the gross carryforwards available to offset future taxable income as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal gross NOL carryforwards - begin to expire in 2030

 

$

7,560

 

 

$

8,316

 

Federal gross NOL carryforwards - with no expiration

 

 

2,468

 

 

 

1,436

 

Illinois gross NLD carryforwards - begin to expire in 2031

 

 

268,969

 

 

 

265,961

 
v3.24.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
Schedule of Deposits

The following is a summary of the Company’s deposits as of December 31, 2023 and 2022:

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Non-interest-bearing demand deposits

 

$

1,905,876

 

 

$

2,138,645

 

Interest-bearing checking accounts

 

 

577,609

 

 

 

592,098

 

Money market demand accounts

 

 

2,266,030

 

 

 

1,415,653

 

Other savings

 

 

542,532

 

 

 

625,798

 

Time deposits (below $250,000)

 

 

1,520,082

 

 

 

762,250

 

Time deposits ($250,000 and above)

 

 

364,870

 

 

 

160,677

 

Total deposits

 

$

7,176,999

 

 

$

5,695,121

 
Schedule of Maturities of Time Deposits

At December 31, 2023, the scheduled maturities of time deposits were as follows:

 

 

Scheduled Maturities

 

2024

 

$

1,831,528

 

2025

 

 

39,153

 

2026

 

 

8,521

 

2027

 

 

4,639

 

2028

 

 

1,111

 

Total

 

$

1,884,952

 

 

The Company hedges interest rates on certain money market accounts using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. Refer to Note 21—Derivative Instruments and Hedging Activities for additional discussion.
v3.24.0.1
Other Borrowings (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Summary of Other Borrowings

The following is a summary of the Company’s other borrowings as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal Home Loan Bank advances

 

$

325,000

 

 

$

625,000

 

Securities sold under agreements to repurchase

 

 

40,607

 

 

 

15,399

 

Term Loan

 

 

18,333

 

 

 

—

 

Line of credit

 

 

11,250

 

 

 

—

 

Total

 

$

395,190

 

 

$

640,399

 
Summary of Short-term Credit Lines Available for Use

The following table presents short-term credit lines available for use as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

Federal Home Loan Bank line

 

$

2,781,747

 

 

$

1,903,549

 

Federal Reserve Bank of Chicago discount window line

 

 

866,490

 

 

 

804,578

 

Available federal funds lines

 

 

123,750

 

 

 

135,000

 
v3.24.0.1
Subordinated Notes and Junior Subordinated Debentures (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Junior Subordinated Debentures by Issuance

At December 31, 2023 and 2022, the Company’s junior subordinated debentures by issuance were as follows:

 

 

 

 

Aggregate Principal Amount

 

 

 

 

 

Name of Trust

 

Stated
Maturity

 

December 31, 2023

 

 

December 31, 2022

 

 

Contractual Rate at December 31, 2023

 

Interest Rate Spread(1)

Metropolitan Statutory Trust I

 

March 17, 2034

 

$

35,000

 

 

$

35,000

 

 

8.43%

 

SOFR + spread adjustment + 2.79%

First Evanston Bancorp Trust I

 

March 15, 2035

 

 

10,000

 

 

 

10,000

 

 

7.43%

 

SOFR + spread adjustment + 1.78%

AmeriMark Capital Trust I

 

April 23, 2034

 

 

5,000

 

 

 

—

 

 

8.42%

 

SOFR + spread adjustment + 2.75%

Inland Bancorp Trust II

 

September 15, 2035

 

 

10,000

 

 

 

—

 

 

7.25%

 

SOFR + spread adjustment + 1.60%

Inland Bancorp Trust III

 

December 15, 2036

 

 

10,000

 

 

 

—

 

 

7.30%

 

SOFR + spread adjustment + 1.65%

Inland Bancorp Trust IV

 

June 6, 2037

 

 

7,000

 

 

 

—

 

 

7.24%

 

SOFR + spread adjustment + 1.62%

Inland Bancorp Trust V

 

September 15, 2037

 

 

10,000

 

 

 

—

 

 

7.07%

 

SOFR + spread adjustment + 1.42%

Total liability, at par

 

 

 

 

87,000

 

 

 

45,000

 

 

 

 

 

Discount

 

 

 

 

(16,548

)

 

 

(7,662

)

 

 

 

 

Total liability, at carrying value

 

 

 

$

70,452

 

 

$

37,338

 

 

 

 

 

(1) SOFR is three month SOFR and the spread adjustment is 0.26161%
v3.24.0.1
Commitments and Contingent Liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments

The following table summarizes the contract or notional amount of outstanding loan and lease commitments at December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Commitments to extend credit

 

$

269,325

 

 

$

2,013,819

 

 

$

2,283,144

 

 

$

258,049

 

 

$

1,821,175

 

 

$

2,079,224

 

Letters of credit

 

 

612

 

 

 

67,443

 

 

 

68,055

 

 

 

536

 

 

 

61,328

 

 

 

61,864

 

Total

 

$

269,937

 

 

$

2,081,262

 

 

$

2,351,199

 

 

$

258,585

 

 

$

1,882,503

 

 

$

2,141,088

 
v3.24.0.1
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

115,434

 

 

$

115,434

 

 

$

—

 

 

$

—

 

U.S. Government agencies

 

 

130,695

 

 

 

—

 

 

 

130,695

 

 

 

—

 

Obligations of states, municipalities, and political
   subdivisions

 

 

82,275

 

 

 

—

 

 

 

82,275

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

695,803

 

 

 

—

 

 

 

695,803

 

 

 

—

 

Non-Agency

 

 

100,260

 

 

 

—

 

 

 

100,260

 

 

 

—

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

147,204

 

 

 

—

 

 

 

147,204

 

 

 

—

 

Corporate securities

 

 

36,171

 

 

 

—

 

 

 

36,171

 

 

 

—

 

Asset-backed securities

 

 

34,638

 

 

 

—

 

 

 

34,638

 

 

 

—

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,554

 

 

 

2,554

 

 

 

—

 

 

 

—

 

Equity securities

 

 

6,189

 

 

 

—

 

 

 

5,908

 

 

 

281

 

Servicing assets

 

 

19,844

 

 

 

—

 

 

 

—

 

 

 

19,844

 

Derivative assets

 

 

56,923

 

 

 

—

 

 

 

56,923

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

19,345

 

 

 

—

 

 

 

19,345

 

 

 

—

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

40,723

 

 

$

40,723

 

 

$

—

 

 

$

—

 

U.S. Government agencies

 

 

130,364

 

 

 

—

 

 

 

130,364

 

 

 

—

 

Obligations of states, municipalities, and political
   subdivisions

 

 

61,876

 

 

 

—

 

 

 

61,876

 

 

 

—

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

595,796

 

 

 

—

 

 

 

595,796

 

 

 

—

 

Non-Agency

 

 

106,249

 

 

 

—

 

 

 

106,249

 

 

 

—

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

157,030

 

 

 

—

 

 

 

157,030

 

 

 

—

 

Corporate securities

 

 

41,436

 

 

 

 

 

 

41,436

 

 

 

—

 

Asset-backed securities

 

 

40,957

 

 

 

—

 

 

 

40,957

 

 

 

—

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,518

 

 

 

2,518

 

 

 

—

 

 

 

—

 

Equity securities

 

 

5,471

 

 

 

—

 

 

 

4,805

 

 

 

666

 

Servicing assets

 

 

19,172

 

 

 

—

 

 

 

—

 

 

 

19,172

 

Derivative assets

 

 

65,342

 

 

 

—

 

 

 

65,342

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

17,817

 

 

 

—

 

 

 

17,817

 

 

 

—

 

 
Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

 

Years Ended December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Investment Securities

 

 

Servicing Assets

 

Balance, beginning of period

$

666

 

 

$

686

 

 

$

19,172

 

 

$

23,744

 

Additions, net

 

—

 

 

 

—

 

 

 

5,761

 

 

 

7,171

 

Maturities

 

(400

)

 

 

—

 

 

 

—

 

 

 

—

 

Accretion

 

82

 

 

 

—

 

 

 

—

 

 

 

—

 

Change in fair value

 

(67

)

 

 

(20

)

 

 

(5,089

)

 

 

(11,743

)

Balance, end of period

$

281

 

 

$

666

 

 

$

19,844

 

 

$

19,172

 
Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2023:

Financial Instruments

 

Valuation Technique

 

Unobservable Inputs

 

Range of
Inputs

 

Weighted
Average
Input

 

 

Impact to
Valuation from an
Increased or
Higher Input Value

Single issuer trust preferred

 

Discounted cash flow

 

Discount rate

 

7.9%

 

 

7.9

%

 

Decrease

Servicing assets

 

Discounted cash flow

 

Prepayment speeds

 

(1.0)%—31.9%

 

 

14.1

%

 

Decrease

 

 

 

 

Discount rate

 

(15.9)%—55.6%

 

 

14.3

%

 

Decrease

 

 

 

Expected weighted
average loan life

 

0.0—9.2 years

 

3.7 years

 

 

Increase
Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, as of December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

51,978

 

 

$

—

 

 

$

—

 

 

$

51,978

 

Residential real estate

 

 

3,593

 

 

 

—

 

 

 

—

 

 

 

3,593

 

Construction, land development, and other land

 

 

813

 

 

 

—

 

 

 

—

 

 

 

813

 

Commercial and industrial

 

 

29,869

 

 

 

—

 

 

 

—

 

 

 

29,869

 

Assets held for sale

 

 

4,484

 

 

 

—

 

 

 

—

 

 

 

4,484

 

Other real estate owned

 

 

1,200

 

 

 

—

 

 

 

—

 

 

 

1,200

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

31,858

 

 

$

—

 

 

$

—

 

 

$

31,858

 

Residential real estate

 

 

879

 

 

 

—

 

 

 

—

 

 

 

879

 

Construction, land development, and other land

 

 

5,276

 

 

 

—

 

 

 

—

 

 

 

5,276

 

Commercial and industrial

 

 

38,874

 

 

 

—

 

 

 

—

 

 

 

38,874

 

Assets held for sale

 

 

8,673

 

 

 

—

 

 

 

—

 

 

 

8,673

 

Other real estate owned

 

 

4,717

 

 

 

—

 

 

 

—

 

 

 

4,717

 
Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy at December 31, 2023 and 2022 are as follows:

 

Fair Value

 

 

2023

 

 

2022

 

 

Hierarchy
Level

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

1

 

 

$

60,431

 

 

$

60,431

 

 

$

62,274

 

 

$

62,274

 

Interest bearing deposits with other banks

 

2

 

 

 

165,705

 

 

 

165,705

 

 

 

117,079

 

 

 

117,079

 

Securities held-to-maturity

 

2

 

 

 

1,157

 

 

 

1,149

 

 

 

2,705

 

 

 

2,672

 

Restricted stock

 

2

 

 

 

16,304

 

 

 

16,304

 

 

 

28,202

 

 

 

28,202

 

Loans held for sale

 

3

 

 

 

18,005

 

 

 

19,136

 

 

 

47,823

 

 

 

40,657

 

Loans and lease receivables, net (less individually
  evaluated loans of fair value $86,253 
  and $76,887, as of December 31,
  2023 and 2022, respectively)

 

3

 

 

 

6,496,367

 

 

 

6,326,413

 

 

 

5,262,447

 

 

 

5,259,991

 

Accrued interest receivable

 

3

 

 

 

43,922

 

 

 

43,922

 

 

 

29,815

 

 

 

29,815

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

2

 

 

 

1,905,876

 

 

 

1,905,876

 

 

 

2,138,645

 

 

 

2,138,645

 

Interest-bearing deposits

 

2

 

 

 

5,271,123

 

 

 

5,268,926

 

 

 

3,556,476

 

 

 

3,554,318

 

Accrued interest payable

 

2

 

 

 

22,233

 

 

 

22,233

 

 

 

4,494

 

 

 

4,494

 

Federal Home Loan Bank advances

 

2

 

 

 

325,000

 

 

 

325,000

 

 

 

625,000

 

 

 

625,000

 

Securities sold under repurchase agreement

 

2

 

 

 

40,607

 

 

 

40,607

 

 

 

15,399

 

 

 

15,399

 

Term loan

 

2

 

 

 

18,333

 

 

 

18,333

 

 

 

—

 

 

 

—

 

Line of credit

 

2

 

 

 

11,250

 

 

 

11,250

 

 

 

—

 

 

 

—

 

Subordinated notes

 

2

 

 

 

73,866

 

 

 

76,063

 

 

 

73,691

 

 

 

70,925

 

Junior subordinated debentures

 

3

 

 

 

70,452

 

 

 

72,701

 

 

 

37,338

 

 

 

40,131

 
v3.24.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Omnibus Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Changes in Restricted Shares

The following table discloses the changes in all unvested restricted shares for the year ended December 31, 2023:

 

 

Omnibus Plan

 

 

 

Number of Shares

 

 

Weighted Average Grant Date Fair Value

 

Beginning balance, January 1, 2023

 

 

581,337

 

 

$

22.93

 

Granted

 

 

305,117

 

 

 

24.34

 

Incremental performance shares vested and issued

 

 

1,826

 

 

 

 

Vested

 

 

(238,638

)

 

 

21.18

 

Forfeited

 

 

(22,371

)

 

 

23.48

 

Ending balance outstanding at December 31, 2023

 

 

627,271

 

 

 

24.24

 
BYB Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices

The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2023:

 

 

BYB Plan

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price

 

 

Intrinsic Value

 

 

Weighted Average Remaining Contractual Term (in Years)

 

Beginning balance, January 1, 2023

 

 

768,564

 

 

$

11.31

 

 

$

8,960

 

 

 

2.5

 

Expired

 

 

—

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

 

 

 

 

 

 

 

Forfeited

 

 

—

 

 

 

 

 

 

 

 

 

 

Ending balance outstanding at December 31, 2023

 

 

768,564

 

 

$

11.31

 

 

$

9,413

 

 

 

1.5

 

Exercisable at December 31, 2023

 

 

768,564

 

 

$

11.31

 

 

$

9,413

 

 

 

1.5

 
FEB Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices

The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2023:

 

 

FEB Plan

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price

 

 

Intrinsic Value

 

 

Weighted Average Remaining Contractual Term (in Years)

 

Beginning balance, January 1, 2023

 

 

162,288

 

 

$

11.66

 

 

$

1,836

 

 

 

2.5

 

Exercised

 

 

(59,153

)

 

$

11.14

 

 

$

590

 

 

 

 

Forfeited

 

 

—

 

 

 

 

 

 

 

 

 

 

Expired

 

 

—

 

 

 

 

 

 

 

 

 

 

Ending balance outstanding at December 31, 2023

 

 

103,135

 

 

$

11.95

 

 

$

1,197

 

 

 

1.9

 

Exercisable at December 31, 2023

 

 

103,135

 

 

$

11.95

 

 

$

1,197

 

 

 

1.9

 
Restricted Shares  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Stock Compensation Expense

The following table summarizes restricted stock compensation expense for the years ended:

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Total share-based compensation - restricted stock

 

$

6,715

 

 

$

5,334

 

 

$

4,018

 

Income tax benefit

 

 

1,806

 

 

 

1,474

 

 

 

1,108

 

Unrecognized compensation expense - restricted stock

 

 

9,371

 

 

 

9,151

 

 

 

6,991

 

Weighted-average amortization period remaining

 

1.9 years

 

 

2.3 years

 

 

2.2 years

 
v3.24.0.1
Regulatory Capital Requirements (Tables)
 12 Months Ended
Dec. 31, 2023
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Summary of Bank's Actual Capital Amounts and Ratios The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2023 and 2022 are also presented.

 

 

Actual

 

 

Minimum Capital
Required

 

 

Required to be
Considered
Well Capitalized

 

2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

1,123,568

 

 

 

13.38

%

 

$

671,576

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

1,085,915

 

 

 

12.97

%

 

 

669,904

 

 

 

8.00

%

 

$

837,380

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

956,027

 

 

 

11.39

%

 

$

503,682

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.86

%

 

 

502,428

 

 

 

6.00

%

 

$

669,904

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to risk weighted
   assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

869,027

 

 

 

10.35

%

 

$

377,762

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.86

%

 

 

376,821

 

 

 

4.50

%

 

$

544,297

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

956,027

 

 

 

10.86

%

 

$

352,089

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

993,375

 

 

 

11.30

%

 

 

351,735

 

 

 

4.00

%

 

$

439,669

 

 

 

5.00

%

 

 

 

Actual

 

 

Minimum Capital
Required

 

 

Required to be
Considered
Well Capitalized

 

2022

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

900,806

 

 

 

13.00

%

 

$

554,436

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

852,047

 

 

 

12.34

%

 

 

552,507

 

 

 

8.00

%

 

$

690,633

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

751,887

 

 

 

10.85

%

 

$

415,827

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

11.27

%

 

 

414,380

 

 

 

6.00

%

 

$

552,507

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to risk weighted
   assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

706,887

 

 

 

10.20

%

 

$

311,870

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

11.27

%

 

 

310,785

 

 

 

4.50

%

 

$

448,912

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

751,887

 

 

 

10.29

%

 

$

292,258

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

778,128

 

 

 

10.67

%

 

 

291,741

 

 

 

4.00

%

 

$

364,676

 

 

 

5.00

%
v3.24.0.1
Derivative Instruments and Hedge Activities (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

 

 

 

Fair Value

 

 

 

 

 

Fair Value

 

 

 

Notional
Amount

 

 

Other
Assets

 

 

Other
Liabilities

 

 

Notional
Amount

 

 

Other
Assets

 

 

Other
Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps designated
  as cash flow hedges

 

$

650,000

 

 

$

37,475

 

 

$

—

 

 

$

550,000

 

 

$

47,249

 

 

$

—

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other interest rate derivatives

 

 

706,126

 

 

 

19,447

 

 

 

(19,345

)

 

 

545,346

 

 

 

18,093

 

 

 

(17,817

)

Other credit derivatives

 

 

3,602

 

 

 

1

 

 

 

—

 

 

 

6,678

 

 

 

—

 

 

 

—

 

Total derivatives

 

$

1,359,728

 

 

$

56,923

 

 

$

(19,345

)

 

$

1,102,024

 

 

$

65,342

 

 

$

(17,817

)

As of the effective time of the transaction reported in Note 3—Acquisition of a Business, Byline acquired and assumed two types of derivative instruments. Interest rate swap agreements previously designated as cash flow hedges of certain junior subordinated debentures issued to capital trusts had notional amounts of $42.0 million and had a fair value of $3.5 million included in accrued interest receivable and other assets. In July 2023, the Company terminated the interest rate swap agreements resulting in a net gain of $6,000. Other interest rate swap agreements not designated as hedging instruments had notional amounts of $67.7 million and fair values of $6.2 million reported in accrued interest receivable and other assets and accrued interest payable and other liabilities as of the effective time of the transaction.

Summary of Cash Flow Hedges

The following table reflects the cash flow hedges as of December 31, 2023:

 

Notional amounts

 

$

650,000

 

Derivative assets fair value

 

 

37,475

 

Derivative liabilities fair value

 

 

—

 

Weighted average remaining maturity

 

3.0 years

 
Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations Relating to Cash Flow Derivative Instruments

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended December 31, 2023 and 2022:

 

 

2023

 

 

2022

 

 

 

Amount of
Gain
Recognized in
OCI

 

 

Amount of Gain
Reclassified
from OCI to
Income as a
Decrease to
Interest Expense

 

 

Amount of
Gain (Loss)
Recognized in
Other
Non-Interest
Income

 

 

Amount of
Gain
Recognized in
OCI

 

 

Amount of Gain
Reclassified
from OCI to
Income as a
Decrease to
Interest Expense

 

 

Amount of
Gain (Loss)
Recognized in
Other
Non-Interest
Income

 

Interest rate swaps

 

$

9,605

 

 

$

15,336

 

 

$

—

 

 

$

43,977

 

 

$

1,022

 

 

$

—

 
Summary of Other Interest Rate Derivatives

The following table reflects other interest rate derivatives as of December 31, 2023:

Notional amounts

 

$

706,126

 

Derivative assets fair value

 

 

19,447

 

Derivative liabilities fair value

 

 

19,345

 

Weighted average pay rates

 

 

4.30

%

Weighted average receive rates

 

 

5.79

%

Weighted average remaining maturity

 

4.6 years

 

 
Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations Relating to Derivative Instruments not Designated in Hedging Relationship

The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the years ended December 31, 2023, 2022, and 2021:

 

 

2023

 

 

2022

 

 

2021

 

Other interest rate derivatives

 

$

(174

)

 

$

702

 

 

$

541

 

Other credit derivatives

 

 

—

 

 

 

5

 

 

 

12

 

Total

 

$

(174

)

 

$

707

 

 

$

553

 
Summary of Company's Interest Rate Derivative and Offsetting Positions The table below summarizes the Company’s interest rate derivatives and offsetting positions as of December 31, 2023 and 2022:

 

 

 

 

 

Note 21—Derivative Instruments and Hedge Activities (continued)

 

 

2023

 

 

2022

 

 

 

Derivative
Assets
Fair Value

 

 

Derivative
Liabilities
Fair Value

 

 

Derivative
Assets
Fair Value

 

 

Derivative
Liabilities
Fair Value

 

Gross amounts recognized

 

$

56,923

 

 

$

(19,345

)

 

$

65,342

 

 

$

(17,817

)

Less: Amounts offset in the Consolidated Statements of Financial
   Condition

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net amount presented in the Consolidated Statements of Financial
   Condition

 

$

56,923

 

 

$

(19,345

)

 

$

65,342

 

 

$

(17,817

)

Gross amounts not offset in the Consolidated Statements of
   Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting derivative positions

 

 

(925

)

 

 

925

 

 

 

(43

)

 

 

43

 

Collateral received

 

 

(54,930

)

 

 

—

 

 

 

(64,370

)

 

 

—

 

Net credit exposure

 

$

1,068

 

 

$

(18,420

)

 

$

929

 

 

$

(17,774

)
v3.24.0.1
Parent Company Only Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule of Statements of Condensed Financial Statements

The following represents the condensed financial statements of Byline Bancorp, Inc., the Parent Company:

Statements of Financial Condition

Parent Company Only

 

 

As of December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Cash

 

$

39,461

 

 

$

25,275

 

Investment in banking subsidiary

 

 

1,112,514

 

 

 

835,538

 

Other assets

 

 

13,893

 

 

 

16,924

 

Total assets

 

$

1,165,868

 

 

$

877,737

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Line of credit

 

$

11,250

 

 

$

—

 

Term loan

 

 

18,333

 

 

 

—

 

Subordinated notes, net

 

 

73,866

 

 

 

73,691

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,452

 

 

 

37,338

 

Accrued expenses and other liabilities

 

 

1,816

 

 

 

892

 

Stockholders' equity

 

 

990,151

 

 

 

765,816

 

Total liabilities and stockholders' equity

 

$

1,165,868

 

 

$

877,737

 

 

 

 

 

 

 

 

 

 

 

Note 22—Parent Company Only Condensed Financial Statements (continued)

Statements of Operations

Parent Company Only

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

INCOME

 

 

 

 

 

 

 

 

 

Dividends from subsidiary

 

$

35,000

 

 

$

24,000

 

 

$

24,000

 

Other interest and dividend income

 

 

(247

)

 

 

(139

)

 

 

—

 

Change in fair value of equity securities, net

 

 

—

 

 

 

—

 

 

 

110

 

Other noninterest income

 

 

12

 

 

 

5

 

 

 

—

 

Total income

 

 

34,765

 

 

 

23,866

 

 

 

24,110

 

EXPENSES

 

 

 

 

 

 

 

 

 

Interest expense

 

 

11,495

 

 

 

7,149

 

 

 

6,412

 

Other noninterest expense

 

 

3,978

 

 

 

3,045

 

 

 

1,814

 

Total expenses

 

 

15,473

 

 

 

10,194

 

 

 

8,226

 

Income before provision for income taxes and equity in undistributed income
   of subsidiary

 

 

19,292

 

 

 

13,672

 

 

 

15,884

 

Benefit for income taxes

 

 

(4,107

)

 

 

(2,633

)

 

 

(2,022

)

Income before equity in undistributed income of subsidiary

 

 

23,399

 

 

 

16,305

 

 

 

17,906

 

Equity in undistributed income of subsidiary

 

 

84,479

 

 

 

71,649

 

 

 

74,879

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

 

Statements of Cash Flows

Parent Company Only

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed income of subsidiary

 

 

(84,479

)

 

 

(71,649

)

 

 

(74,879

)

Share-based compensation expense

 

 

6,715

 

 

 

5,334

 

 

 

4,018

 

Change in fair value of equity securities, net

 

 

—

 

 

 

—

 

 

 

(110

)

Amortization of subordinated debt issuance cost

 

 

175

 

 

 

174

 

 

 

175

 

Accretion of junior subordinated debentures discount

 

 

453

 

 

 

432

 

 

 

455

 

Changes in other assets and other liabilities

 

 

7,498

 

 

 

(14,531

)

 

 

(6,974

)

Net cash provided by operating activities

 

 

38,240

 

 

 

7,714

 

 

 

15,470

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Purchases of securities available-for-sale

 

 

(9,941

)

 

 

(250

)

 

 

(1,876

)

Net cash paid in acquisition of business

 

 

(30,902

)

 

 

—

 

 

 

—

 

Net cash used in investing activities

 

 

(40,843

)

 

 

(250

)

 

 

(1,876

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from revolving line of credit

 

 

15,000

 

 

 

—

 

 

 

—

 

Repayments of revolving line of credit

 

 

(3,750

)

 

 

—

 

 

 

—

 

Proceeds from term loan

 

 

20,000

 

 

 

—

 

 

 

—

 

Repayments of term loan

 

 

(1,667

)

 

 

—

 

 

 

—

 

Dividends paid on preferred stock

 

 

—

 

 

 

(196

)

 

 

(783

)

Dividends paid on common stock

 

 

(14,585

)

 

 

(13,401

)

 

 

(11,269

)

Proceeds from issuance of common stock, net

 

 

1,791

 

 

 

1,506

 

 

 

2,140

 

Repurchase of preferred stock

 

 

—

 

 

 

(10,438

)

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(17,274

)

 

 

(28,867

)

Net cash provided by (used in) financing activities

 

 

16,789

 

 

 

(39,803

)

 

 

(38,779

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

14,186

 

 

 

(32,339

)

 

 

(25,185

)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

25,275

 

 

 

57,614

 

 

 

82,799

 

CASH AND CASH EQUIVALENTS, end of period

 

$

39,461

 

 

$

25,275

 

 

$

57,614

 

 
v3.24.0.1
Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Earnings per Share

 

 

Years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Net income

 

$

107,878

 

 

$

87,954

 

 

$

92,785

 

Less: Dividends on preferred shares

 

 

—

 

 

 

196

 

 

 

783

 

Net income available to common stockholders

 

$

107,878

 

 

$

87,758

 

 

$

92,002

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

 

 

Weighted-average common stock outstanding (basic)

 

 

40,045,208

 

 

 

36,972,972

 

 

 

37,609,723

 

Incremental shares

 

 

400,345

 

 

 

503,148

 

 

 

759,344

 

Weighted-average common stock outstanding (dilutive)

 

 

40,445,553

 

 

 

37,476,120

 

 

 

38,369,067

 

Basic earnings per common share

 

$

2.69

 

 

$

2.37

 

 

$

2.45

 

Diluted earnings per common share

 

$

2.67

 

 

$

2.34

 

 

$

2.40

 
v3.24.0.1
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Summary of Preferred and Common Stock

A summary of the Company’s preferred and common stock at December 31, 2023 and 2022 is as follows:

 

 

2023

 

 

2022

 

Preferred stock

 

 

 

 

 

 

Par value per share

 

$

0.01

 

 

$

0.01

 

Shares authorized

 

 

25,000,000

 

 

 

25,000,000

 

Shares issued

 

 

—

 

 

 

—

 

Shares outstanding

 

 

—

 

 

 

—

 

Common stock, voting

 

 

 

 

 

 

Par value

 

$

0.01

 

 

$

0.01

 

Shares authorized

 

 

150,000,000

 

 

 

150,000,000

 

Shares issued

 

 

45,714,241

 

 

 

39,518,702

 

Shares outstanding

 

 

43,764,056

 

 

 

37,492,775

 

Treasury shares

 

 

1,950,185

 

 

 

2,025,927

 
v3.24.0.1
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

The following table summarized the change in accumulated other comprehensive income (loss) for the years ended December 31, 2023, 2022, and 2021:

(dollars in thousands)

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Unrealized Gains (Losses) on Available-for-Sale Securities

 

 

Total Accumulated Other
Comprehensive
Income (Loss)

 

Balance, January 1, 2021

 

$

(305

)

 

$

18,352

 

 

$

18,047

 

Other comprehensive income (loss), net of tax

 

 

3,122

 

 

 

(29,471

)

 

 

(26,349

)

Balance, December 31, 2021

 

$

2,817

 

 

$

(11,119

)

 

$

(8,302

)

Other comprehensive income (loss), net of tax

 

 

31,498

 

 

 

(140,746

)

 

 

(109,248

)

Balance, December 31, 2022

 

$

34,315

 

 

$

(151,865

)

 

$

(117,550

)

Other comprehensive income (loss), net of tax

 

 

(4,184

)

 

 

21,617

 

 

 

17,433

 

Balance, December 31, 2023

 

$

30,131

 

 

$

(130,248

)

 

$

(100,117

)
v3.24.0.1
Selected Quarterly Financial Data (unaudited) (Tables)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Selected Quarterly Financial Data (unaudited) The following table presents select financial data for the first three quarters of 2022 as reported and recast, and for the fourth quarter 2022 as reported.

 

 

For the year ended December 31, 2022

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter

 

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

 

Adjustment

 

 

Recast

 

 

As Reported

 

Interest and dividend
  income

 

$

61,818

 

 

$

(405

)

 

$

61,413

 

 

$

66,546

 

 

$

133

 

 

$

66,679

 

 

$

79,903

 

 

$

(240

)

 

$

79,663

 

 

$

93,804

 

Interest expense

 

 

3,082

 

 

 

—

 

 

 

3,082

 

 

 

4,919

 

 

 

—

 

 

 

4,919

 

 

 

11,028

 

 

 

—

 

 

 

11,028

 

 

 

17,200

 

   Net interest income

 

 

58,736

 

 

 

(405

)

 

 

58,331

 

 

 

61,627

 

 

 

133

 

 

 

61,760

 

 

 

68,875

 

 

 

(240

)

 

 

68,635

 

 

 

76,604

 

Provision/(recapture) for
  credit losses

 

 

4,995

 

 

 

1,564

 

 

 

6,559

 

 

 

5,908

 

 

 

(1,622

)

 

 

4,286

 

 

 

4,176

 

 

 

3,032

 

 

 

7,208

 

 

 

5,826

 

   Net interest income after
      provision/(recapture)
      for credit losses

 

 

53,741

 

 

 

(1,969

)

 

 

51,772

 

 

 

55,719

 

 

 

1,755

 

 

 

57,474

 

 

 

64,699

 

 

 

(3,272

)

 

 

61,427

 

 

 

70,778

 

Non-interest income

 

 

19,426

 

 

 

117

 

 

 

19,543

 

 

 

14,161

 

 

 

112

 

 

 

14,273

 

 

 

11,992

 

 

 

51

 

 

 

12,043

 

 

 

11,455

 

Non-interest expense

 

 

44,555

 

 

 

(599

)

 

 

43,956

 

 

 

43,773

 

 

 

(188

)

 

 

43,585

 

 

 

46,178

 

 

 

(137

)

 

 

46,041

 

 

 

50,500

 

   Income before provision
     for income taxes

 

 

28,612

 

 

 

(1,253

)

 

 

27,359

 

 

 

26,107

 

 

 

2,055

 

 

 

28,162

 

 

 

30,513

 

 

 

(3,084

)

 

 

27,429

 

 

 

31,733

 

Provision for income taxes

 

 

6,301

 

 

 

(340

)

 

 

5,961

 

 

 

5,824

 

 

 

558

 

 

 

6,382

 

 

 

7,857

 

 

 

(837

)

 

 

7,020

 

 

 

7,366

 

Net income

 

 

22,311

 

 

 

(913

)

 

 

21,398

 

 

 

20,283

 

 

 

1,497

 

 

 

21,780

 

 

 

22,656

 

 

 

(2,247

)

 

 

20,409

 

 

 

24,367

 

Dividends on preferred
  shares

 

 

196

 

 

 

—

 

 

 

196

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income available to common
  stockholders

 

$

22,115

 

 

$

(913

)

 

$

21,202

 

 

$

20,283

 

 

$

1,497

 

 

$

21,780

 

 

$

22,656

 

 

$

(2,247

)

 

$

20,409

 

 

$

24,367

 

Basic earnings per
  common share

 

$

0.60

 

 

$

(0.03

)

 

$

0.57

 

 

$

0.55

 

 

$

0.04

 

 

$

0.59

 

 

$

0.61

 

 

$

(0.06

)

 

$

0.55

 

 

$

0.66

 

Diluted earnings per
  common share

 

$

0.58

 

 

$

(0.02

)

 

$

0.56

 

 

$

0.54

 

 

$

0.04

 

 

$

0.58

 

 

$

0.61

 

 

$

(0.06

)

 

$

0.55

 

 

$

0.65

 
v3.24.0.1
Business and Summary of Significant Accounting Policies - Nature of business (Details)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Dec. 31, 2023
Item
Chicago metropolitan area    
Nature of business    
Number of bank branches | Item   47
Wisconsin    
Nature of business    
Number of bank branches | Item   1
Subsequent Event    
Nature of business    
Annual cost savings | $ $ 1.1  
Anticipate Charges | $ $ 1.5  
v3.24.0.1
Business and Summary of Significant Accounting Policies - Cash and cash equivalents (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Business Description And Accounting Policies [Abstract]    
Reserve requirement $ 0 $ 0
v3.24.0.1
Business and Summary of Significant Accounting Policies - Premises and equipment (Details)
Dec. 31, 2023
Minimum  
Premises and equipment  
Estimated useful lives (in years) 3 years
Maximum  
Premises and equipment  
Estimated useful lives (in years) 39 years
v3.24.0.1
Business and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Description And Accounting Policies [Abstract]      
Goodwill, impairment loss $ 0 $ 0 $ 0
v3.24.0.1
Business and Summary of Significant Accounting Policies - Other intangible assets (Details)
Dec. 31, 2023
Maximum  
Finite Lived Intangible Assets [Line Items]  
Intangibles amortization period (in years) 10 years
v3.24.0.1
Business and Summary of Significant Accounting Policies - Customer Relationship Intangibles (Details)
Dec. 31, 2023
Customer Relationships  
Finite Lived Intangible Assets [Line Items]  
Intangibles amortization period (in years) 12 years
v3.24.0.1
Business and Summary of Significant Accounting Policies - Income taxes (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Business Description And Accounting Policies [Abstract]    
Uncertain tax positions $ 0 $ 0
v3.24.0.1
Business and Summary of Significant Accounting Policies - Segment reporting (Details)
 12 Months Ended
Dec. 31, 2023
Segment
Business Description And Accounting Policies [Abstract]  
Number of reportable segment 1
v3.24.0.1
Acquisition of a Business - Additional Information (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jul. 01, 2023
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]                
Common stock, voting par value         $ 0.01 $ 0.01    
Goodwill         $ 181,705,000 $ 148,353,000 $ 148,353,000 $ 148,353,000
Salaries and employee benefits         126,979,000 118,051,000 101,222,000  
Other non-interest expense         $ 10,943,000 $ 9,174,000 $ 10,531,000  
Inland Bancorp, Inc.                
Business Acquisition [Line Items]                
Business acquisition date of agreement         Jul. 01, 2023      
Number of shares purchased   2,408,992 2,408,992          
Business acquisition transaction completion Date         Jun. 30, 2023      
Right to receive common stock upon conversion 0.19              
Common stock, voting par value $ 0.01              
Cash payment per share $ 0.68              
Consideration paid in cash $ 21,200,000       $ 31,897,000      
Common stock issued price per share $ 18.09       $ 18.09      
Issuance of common shares 5,932,323       5,932,323      
Value of common stock consideration $ 107,300,000              
Options to acquire common stock shares 288,200              
Option to acquire common stock value $ 424,000              
Total merger consideration 138,900,000     $ 9,900,000 $ 138,914,000      
Stock issuance costs 299,000              
Goodwill $ 33,400,000       33,352,000      
Inland Bancorp, Inc. | Non-interest Expense                
Business Acquisition [Line Items]                
Core system conversion expenses         3,500,000      
Acquisition advisory expenses         2,500,000      
Salaries and employee benefits         2,500,000      
Other non-interest expense         $ 688,000      
v3.24.0.1
Acquisition of a Business - Summary of Estimated Fair Values of Assets and Liabilities Assumed as of Acquisition Date (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jul. 01, 2023
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Consideration paid            
Goodwill     $ 181,705 $ 148,353 $ 148,353 $ 148,353
Inland Bancorp, Inc.            
Assets            
Cash and cash equivalents     39,731      
Securities available-for-sale     239,602      
Restricted stock     3,058      
Loans     808,000      
Allowance for credit losses     (10,596)      
Premises and equipment     11,307      
Operating lease right-of-use asset     3,813      
Other intangible assets     17,250      
Bank-owned life insurance     12,455      
Deferred tax assets, net     14,848      
Other assets     21,023      
Total assets acquired     1,160,491      
Liabilities            
Deposits     964,491      
Federal Home Loan Bank advances     40,000      
Securities sold under agreements to repurchase     455      
Junior subordinated debentures     32,661      
Operating lease liability     4,034      
Accrued expenses and other liabilities     13,288      
Total liabilities assumed     1,054,929      
Net assets acquired     105,562      
Consideration paid            
Common stock (5,932,323 shares issued at $18.09 per share)     107,017      
Cash paid $ 21,200   31,897      
Total consideration paid 138,900 $ 9,900 138,914      
Goodwill $ 33,400   $ 33,352      
v3.24.0.1
Acquisition of a Business - Summary of Estimated Fair Values of Assets and Liabilities Assumed as of Acquisition Date (Parenthetical) (Details) - Inland Bancorp, Inc. - $ / shares
 12 Months Ended
Jul. 01, 2023
Dec. 31, 2023
Business Acquisition [Line Items]    
Stock issued (in shares) 5,932,323 5,932,323
Stock issued (in dollars per share) $ 18.09 $ 18.09
v3.24.0.1
Acquisition of a Business - Summary of Fair Value and Gross Contractual Amount Recivable and Respective Expected Contractual Cash Flow (Detail) - Inland Bancorp, Inc.
$ in Thousands
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]  
Fair value $ 582,831
Gross contractual amounts receivable 699,918
Estimate of contractual cash flows not expected to be collected 4,239 [1]
Estimate of contractual cash flows expected to be collected $ 695,679
[1] Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default.
v3.24.0.1
Acquisition of a Business - Summary of Pro Forma Information for Results of Operations (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Business Combinations [Abstract]    
Total revenues (net interest income and non-interest income) $ 411,252 $ 391,621
Net income $ 120,246 $ 97,724
Earnings per share—basic $ 2.8 $ 2.28
Earnings per share—diluted $ 2.77 $ 2.25
v3.24.0.1
Securities - Summary of Amortized Cost and Fair Values of Securities Available-for-sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value $ 1,516,801 $ 1,378,343
Available-for-sale Securities, Gross Unrealized Gains 4,743 127
Available-for-sale Securities, Gross Unrealized Losses (179,064) (204,039)
Available-for-sale Securities, Fair Value 1,342,480 1,174,431
U.S. Treasury Notes    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 116,398 42,430
Available-for-sale Securities, Gross Unrealized Gains 61 2
Available-for-sale Securities, Gross Unrealized Losses (1,025) (1,709)
Available-for-sale Securities, Fair Value 115,434 40,723
U.S. Government Agencies    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 147,062 150,524
Available-for-sale Securities, Gross Unrealized Gains 37 116
Available-for-sale Securities, Gross Unrealized Losses (16,404) (20,276)
Available-for-sale Securities, Fair Value 130,695 130,364
Obligations of States, Municipalities, and Political Subdivisions    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 86,022 68,019
Available-for-sale Securities, Gross Unrealized Gains 396 9
Available-for-sale Securities, Gross Unrealized Losses (4,143) (6,152)
Available-for-sale Securities, Fair Value 82,275 61,876
Agency, Residential Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 786,970 707,157
Available-for-sale Securities, Gross Unrealized Gains 4,247 0
Available-for-sale Securities, Gross Unrealized Losses (95,414) (111,361)
Available-for-sale Securities, Fair Value 695,803 595,796
Non-Agency, Residential Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 122,359 130,654
Available-for-sale Securities, Gross Unrealized Gains 0 0
Available-for-sale Securities, Gross Unrealized Losses (22,099) (24,405)
Available-for-sale Securities, Fair Value 100,260 106,249
Agency, Commercial Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 181,452 191,172
Available-for-sale Securities, Gross Unrealized Gains 0 0
Available-for-sale Securities, Gross Unrealized Losses (34,248) (34,142)
Available-for-sale Securities, Fair Value 147,204 157,030
Corporate Securities    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 40,681 45,302
Available-for-sale Securities, Gross Unrealized Gains 0 0
Available-for-sale Securities, Gross Unrealized Losses (4,510) (3,866)
Available-for-sale Securities, Fair Value 36,171 41,436
Asset-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Securities available-for-sale, at fair value 35,857 43,085
Available-for-sale Securities, Gross Unrealized Gains 2 0
Available-for-sale Securities, Gross Unrealized Losses (1,221) (2,128)
Available-for-sale Securities, Fair Value $ 34,638 $ 40,957
v3.24.0.1
Securities - Summary of Amortized Cost and Fair Values of Securities Held-to-maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Held To Maturity Securities [Line Items]    
Held-to-maturity Securities, Amortized Cost $ 1,157 $ 2,705
Held-to-maturity Securities, Gross Unrealized Gains 0 0
Held-to-maturity Securities, Gross Unrealized Losses (8) (33)
Held-to-maturity Securities, Fair Value 1,149 2,672
Obligations of States, Municipalities, and Political Subdivisions    
Schedule Of Held To Maturity Securities [Line Items]    
Held-to-maturity Securities, Amortized Cost 1,157 2,705
Held-to-maturity Securities, Gross Unrealized Gains 0 0
Held-to-maturity Securities, Gross Unrealized Losses (8) (33)
Held-to-maturity Securities, Fair Value $ 1,149 $ 2,672
v3.24.0.1
Securities - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Security
Dec. 31, 2022
USD ($)
Security
Dec. 31, 2021
USD ($)
Schedule Of Investments [Line Items]      
Trading securities $ 0 $ 0  
Securities available-for-sale and held-to-maturity 4,500 3,900  
Sale of securities 163,649 23,293 $ 203,791
Investment securities pledged as collateral $ 464,500 $ 270,600  
Minimum      
Schedule Of Investments [Line Items]      
Percentage of shareholders equity for which securities holdings exceeds for no issuer other than U.S. Government and agencies 10.00% 10.00%  
Federal Home Loan Bank Advances      
Schedule Of Investments [Line Items]      
Carrying amount of securities pledged as collateral $ 0 $ 0  
Public Fund Deposits      
Schedule Of Investments [Line Items]      
Carrying amount of securities pledged as collateral 390,300 223,500  
Customer Repurchase Agreements      
Schedule Of Investments [Line Items]      
Carrying amount of securities pledged as collateral $ 47,800 $ 23,800  
Available-for-sale Securities      
Schedule Of Investments [Line Items]      
Investment securities with unrealized losses | Security 283 280  
Held-to-maturity Securities      
Schedule Of Investments [Line Items]      
Investment securities with unrealized losses | Security 2 4  
v3.24.0.1
Securities - Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Security
Dec. 31, 2022
USD ($)
Security
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 283 280
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 33,553 $ 408,306
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (1,735) (43,803)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 1,046,104 730,217
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (177,329) (160,236)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 1,079,657 1,138,523
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (179,064) $ (204,039)
Held to maturity securities continuous unrealized loss position number of positions | Security 2 4
Held to maturity securities continuous unrealized loss position less than twelve months fair value $ 0 $ 2,672
Held to maturity securities continuous unrealized loss position less than 12 months accumulated loss 0 (33)
Held to maturity securities continuous unrealized loss position twelve months or longer fair value 1,149 0
Held to maturity securities continuous unrealized loss position 12 months or longer accumulated loss (8) 0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value, Total 1,149 2,672
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss, Total $ (8) $ (33)
U.S.treasury notes    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 7 6
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 5,018 $ 21,720
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (4) (1,078)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 31,843 9,339
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (1,021) (631)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 36,861 31,059
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (1,025) $ (1,709)
U.S. Government Agencies    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 18 17
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 535 $ 44,508
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (9) (4,782)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 119,109 70,609
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (16,395) (15,494)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 119,644 115,117
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (16,404) $ (20,276)
Obligations of States, Municipalities, and Political Subdivisions    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 61 58
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 12,267 $ 50,216
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (156) (3,858)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 49,617 7,185
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (3,987) (2,294)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 61,884 57,401
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (4,143) $ (6,152)
Held to maturity securities continuous unrealized loss position number of positions | Security 2 4
Held to maturity securities continuous unrealized loss position less than twelve months fair value $ 0 $ 2,672
Held to maturity securities continuous unrealized loss position less than 12 months accumulated loss 0 (33)
Held to maturity securities continuous unrealized loss position twelve months or longer fair value 1,149 0
Held to maturity securities continuous unrealized loss position 12 months or longer accumulated loss (8) 0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value, Total 1,149 2,672
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss, Total $ (8) $ (33)
Agency, Residential Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 102 101
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 8,332 $ 117,598
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (49) (11,045)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 543,648 478,198
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (95,365) (100,316)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 551,980 595,796
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (95,414) $ (111,361)
Non-Agency, Residential Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 20 19
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 636 $ 35,486
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 0 (7,569)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 99,624 70,763
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (22,099) (16,836)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 100,260 106,249
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (22,099) $ (24,405)
Agency, Commercial Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 48 47
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 6,765 $ 76,193
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (1,517) (11,840)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 140,439 74,315
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (32,731) (22,302)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 147,204 150,508
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (34,248) $ (34,142)
Corporate Securities    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 21 24
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 0 $ 37,130
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 0 (3,128)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 36,171 4,306
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (4,510) (738)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 36,171 41,436
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (4,510) $ (3,866)
Asset-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security 6 8
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 0 $ 25,455
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 0 (503)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 25,653 15,502
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (1,221) (1,625)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value 25,653 40,957
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses $ (1,221) $ (2,128)
v3.24.0.1
Securities - Summary of Proceeds From Sales and Calls of Securities Available-for-sale and Associated Gains and Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-Sale, Realized Gain (Loss) [Abstract]      
Proceeds $ 163,649 $ 23,293 $ 203,791
Gross gains 0 100 2,830
Gross losses $ 0 $ 50 $ 1,395
v3.24.0.1
Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Available-for-sale Securities Debt Maturities, Amortized Cost [Abstract]    
Available-for-sale Securities, Due in one year or less, Amortized Cost $ 87,034  
Available-for-sale Securities, Due from one to five years, Amortized Cost 122,749  
Available-for-sale Securities, Due from five to ten years, Amortized Cost 171,812  
Available-for-sale Securities, Due after ten years, Amortized Cost 44,425  
Available-for-sale Securities, Not due at single maturity, Amortized Cost 1,090,781  
Securities available-for-sale, at fair value 1,516,801 $ 1,378,343
Held-to-maturity Securities Debt Maturities, Amortized Cost [Abstract]    
Held-to-maturity Securities, Due in one year or less, Amortized Cost 550  
Held-to-maturity Securities, Due from one to five years, Amortized Cost 607  
Held-to-maturity Securities, Amortized Cost 1,157 2,705
Available-for-sale Securities Debt Maturities, Fair Value [Abstract]    
Available-for-sale Securities, Due in one year or less, Fair Value 86,730  
Available-for-sale Securities, Due from one to five years, Fair Value 117,315  
Available-for-sale Securities, Due from five to ten years, Fair Value 154,829  
Available-for-sale Securities, Due after ten years, Fair Value 40,339  
Available-for-sale Securities, Not due at single maturity, Fair Value 943,267  
Available-for-sale Securities, Fair Value, Total 1,342,480 1,174,431
Held-to-maturity Securities Debt Maturities, Fair Value [Abstract]    
Held-to-maturity Securities, Due in one year or less, Fair Value 547  
Held-to-maturity Securities, Due from one to five years, Fair Value 602  
Held-to-maturity securities, Fair Value, Total $ 1,149 $ 2,672
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Schedule of Outstanding Loan and Lease Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases $ 6,671,526 $ 5,410,912    
Net unamortized deferred fees and costs 6,600 5,014    
Initial direct costs 6,180 5,332    
Allowance for credit losses - loans and leases (101,686) (81,924) $ (55,012) $ (66,347)
Net loans and leases 6,582,620 5,339,334    
Lease financing receivables        
Net minimum lease payments 644,507 509,980    
Unguaranteed residual values 92,127 54,118    
Unearned income (76,948) (45,444)    
Total lease financing receivables 659,686 518,654    
Initial direct costs 6,180 5,332    
Lease financial receivables before allowance for credits losses - loans and leases 665,866 523,986    
Commercial Real Estate        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 2,317,289 1,905,909    
Allowance for credit losses - loans and leases (33,237) (26,061) (16,918) (19,584)
Residential Real Estate        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 718,733 489,411    
Allowance for credit losses - loans and leases (3,495) (3,140) (1,628) (2,400)
Construction, Land Development, and Other Land        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 528,275 440,016    
Allowance for credit losses - loans and leases (2,906) (3,134) (522) (1,352)
Commercial and Industrial        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 2,444,405 2,055,213    
Allowance for credit losses - loans and leases (53,782) (41,889) (33,129) (41,183)
Installment and Other        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 3,138 1,709    
Allowance for credit losses - loans and leases (36) (24) (9) (15)
Lease Financing Receivables        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 659,686 518,654    
Allowance for credit losses - loans and leases $ (8,230) $ (7,676) $ (2,806) $ (1,813)
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases $ 6,671,526,000 $ 5,410,912,000    
Financing Receivable, after Allowance for Credit Loss 2,200,000,000 2,200,000,000    
Revolving loans converted to term loans 52,200,000 13,200,000    
Allowance for loan and lease losses 101,686,000 81,924,000 $ 55,012,000 $ 66,347,000
Acquired Impaired Loans        
Accounts Notes And Loans Receivable [Line Items]        
Allowance for loan and lease losses 10,000,000 1,900,000    
Acquired Non Impaired Loans [Member]        
Accounts Notes And Loans Receivable [Line Items]        
Allowance for loan and lease losses 4,700,000 5,300,000    
Installment and Other        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 3,138,000 1,709,000    
Overdraft deposits reclassified as loans 754,000 467,000    
Allowance for loan and lease losses 36,000 24,000 $ 9,000 $ 15,000
U.S. Government Guaranteed Loans        
Accounts Notes And Loans Receivable [Line Items]        
Total loans and leases 93,300,000 123,200,000    
Discount on the unguaranteed portion of government guaranteed loans $ 26,200,000 $ 26,700,000    
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Additional Information 1 (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 01, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease   $ 19,800 $ 26,900 $ 11,300  
Risk ratings for loans   1,000      
Individually evaluated for impairment Increases   113,494 92,225 72,923  
Adjustment for acquired PCD loans   10,596      
Provision for credit losses   32,220 22,674 1,457  
Charge-offs   27,601 11,995 15,664  
Net recoveries on PCD loans   4,547 4,065 2,872  
Recorded investment in troubled debt restructurings that subsequently defaulted within twelve months     0 0  
Interest income on non-accrual loans and leases   $ 440,984 273,412 222,993  
Loans receivable, weighted average rate of interest   2.69%      
Commitments outstanding on modified loans   $ 9,100      
Reserve for unfunded commitments   3,636 4,203 1,403 $ 1,887
Impact of CECL Adoption [Member]          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease $ 12,200        
Reserve for unfunded commitments   0 1,595    
Commercial Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Individually evaluated for impairment Increases   64,339 37,959 35,051  
Adjustment for acquired PCD loans   8,230      
Provision for credit losses   7,237 5,252 1,263  
Charge-offs   9,729 3,837 4,698  
Net recoveries on PCD loans   1,438 1,361 769  
Non-accrual loans without allowance   1,600 10,800    
Commercial and Industrial          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Individually evaluated for impairment Increases   44,749 47,846 36,070  
Adjustment for acquired PCD loans   1,609      
Provision for credit losses   23,402 12,002 (219)  
Charge-offs   15,411 5,377 9,015  
Net recoveries on PCD loans   2,293 882 1,180  
Non-accrual loans without allowance   2,300 4,300    
Residential Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Individually evaluated for impairment Increases   3,593 879 1,802  
Adjustment for acquired PCD loans   660      
Provision for credit losses   (402) 907 (663)  
Charge-offs   21 1,208 124  
Net recoveries on PCD loans   118 766 15  
Non-accrual loans without allowance   3,600 2,600    
Individually Evaluated For Impairment          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease   11,900 6,900 2,900  
Individually Evaluated For Impairment | Commercial Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease   7,200 2,800    
Individually evaluated for impairment Increases   410,800 243,700    
Individually Evaluated For Impairment | Commercial and Industrial          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease   11,900 7,500    
Individually evaluated for impairment Increases   391,500 474,400    
Purchased Credit Deteriorated Loan          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease     1,600    
Adjustment for acquired PCD loans   8,100      
Provision for credit losses   1,200      
Charge-offs   1,200      
Allowance for loan and lease loss decrease in loans outstanding     47,000    
Net recoveries on PCD loans     341,000    
Acquired Impaired Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease       3,300  
Collectively Evaluated For Impairment          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses period increase decrease       $ 5,100  
Acquired Non-Credit Deteriorated          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Provision for credit losses   2,700      
Non Accrual Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Interest income on non-accrual loans and leases   $ 3,800 $ 2,500    
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Minimum Annual Lease Payments for Lease Financing Receivables (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Receivables [Abstract]  
2024 $ 205,973
2025 183,204
2026 136,621
2027 82,425
2028 32,524
Thereafter 3,760
Total $ 644,507
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Balances for Each Respective Loan and Lease Category (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases $ 6,684,306 $ 5,421,258 $ 4,537,128
Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 5,767,045 5,130,710  
Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 225,233 80,075  
Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 692,028 210,473  
Commercial Real Estate      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 2,320,312 1,909,488 1,665,748
Commercial Real Estate | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 1,907,029 1,712,152  
Commercial Real Estate | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 137,807 45,143  
Commercial Real Estate | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 275,476 152,193  
Residential Real Estate      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 719,530 489,962 480,514
Residential Real Estate | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 465,133 426,226  
Residential Real Estate | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 42,510 32,228  
Residential Real Estate | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 211,887 31,508  
Construction, Land Development, and Other Land      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 526,837 438,989 325,399
Construction, Land Development, and Other Land | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 415,162 438,617  
Construction, Land Development, and Other Land | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 25,331 372  
Construction, Land Development, and Other Land | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 86,344 0  
Commercial and Industrial      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 2,448,561 2,057,074 1,581,961
Commercial and Industrial | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 2,311,563 2,030,616  
Commercial and Industrial | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 19,460 2,192  
Commercial and Industrial | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 117,538 24,266  
Installment and Other      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 3,200 1,759 1,368
Installment and Other | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 2,919 1,410  
Installment and Other | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 125 140  
Installment and Other | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 156 209  
Lease Financing Receivables      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 665,866 523,986 $ 358,426
Lease Financing Receivables | Originated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 665,239 521,689  
Lease Financing Receivables | Purchased Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases 0 0  
Lease Financing Receivables | Acquired Non-Credit Deteriorated      
Accounts Notes And Loans Receivable [Line Items]      
Total loans and leases $ 627 $ 2,297  
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans (Details) - Acquired Impaired Loans - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance $ 327,842 $ 173,110
Carrying Value 225,233 80,075
Commercial Real Estate    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 185,007 85,089
Carrying Value 137,807 45,143
Residential Real Estate    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 88,036 76,270
Carrying Value 42,510 32,228
Construction, Land Development, and Other Land    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 32,140 7,042
Carrying Value 25,331 372
Commercial and Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 21,870 3,902
Carrying Value 19,460 2,192
Installment and Other    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 789 807
Carrying Value $ 125 $ 140
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Reconcilliation of Acquired Inland Pcd Loans Between Purchase Price and Par Value at Acquisition (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Receivables [Abstract]  
Fair value of loans at acquisition $ 214,573
Allowance for credit losses - loans and leases, at acquisition 10,596
Non-credit discount/premium at acquisition 17,909
Par value of acquired PCD loans at acquisition $ 243,078
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-impaired Loans and Leases (Details) - Acquired Non-impaired Loans - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance $ 723,692 $ 215,118
Carrying Value 692,028 210,473
Commercial Real Estate    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 284,819 155,652
Carrying Value 275,476 152,193
Residential Real Estate    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 227,392 31,863
Carrying Value 211,887 31,508
Construction, Land Development, and Other Land    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 87,143 63
Carrying Value 86,344 0
Commercial and Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 123,540 25,022
Carrying Value 117,538 24,266
Installment and Other    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 170 216
Carrying Value 156 209
Lease Financing Receivables    
Accounts Notes And Loans Receivable [Line Items]    
Unpaid Principal Balance 628 2,302
Carrying Value $ 627 $ 2,297
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Credit Losses Calculation (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 $ 2,252  
2022 3,017 $ 307
2021 5,981 942
2020 6,101 1,428
2019 5,216 4,211
2018   809
Prior 5,034 4,298
Revolving Loans 0 0
Total loans 27,601 11,995 [1]
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 193 0
2021 60 186
2020 1,511 101
2019 4,054 1,766
2018   35
Prior 3,911 1,749
Revolving Loans 0 0
Total loans 9,729 3,837 [1]
Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 33
2018   35
Prior 21 1,140
Revolving Loans 0 0
Total loans 21 1,208 [1]
Construction, Land Development, and Other Land    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 94
Revolving Loans 0 0
Total loans 0 94 [1]
Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,518  
2022 1,938 223
2021 5,372 111
2020 4,451 824
2019 1,087 2,412
2018   643
Prior 1,045 1,164
Revolving Loans 0 0
Total loans 15,411 5,377 [1]
Installment and Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 3 7
Revolving Loans 0 0
Total loans 3 7 [1]
Lease Financing Receivables    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 734  
2022 886 84
2021 549 645
2020 139 503
2019 75 0
2018   96
Prior 54 144
Revolving Loans 0 0
Total loans 2,437 1,472 [1]
Loans Excluding Acquired Impaired Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,244,045  
2022 1,546,815 1,431,859
2021 1,329,072 1,280,668
2020 559,791 551,249
2019 339,037 335,557
2018   335,090
Prior 960,154 783,837
Revolving Loans 705,392 711,433
Total loans 6,684,306 5,429,693 [1],[2]
Loans Excluding Acquired Impaired Loans | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,188,866  
2022 1,455,452 1,407,462
2021 1,186,886 1,227,066
2020 458,076 502,470
2019 269,391 257,750
2018   262,867
Prior 764,342 648,219
Revolving Loans 612,561 628,010
Total loans 5,935,574 4,933,844 [1]
Loans Excluding Acquired Impaired Loans | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 54,920  
2022 74,042 23,206
2021 99,161 35,139
2020 84,247 37,603
2019 37,607 48,377
2018   40,731
Prior 94,892 66,434
Revolving Loans 41,128 49,705
Total loans 485,997 301,195 [1]
Loans Excluding Acquired Impaired Loans | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 6,963 0
2021 30,626 13,056
2020 9,022 3,276
2019 14,091 2,451
2018   9,059
Prior 32,470 18,805
Revolving Loans 36,767 22,320
Total loans 129,939 68,967 [1]
Loans Excluding Acquired Impaired Loans | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 259  
2022 10,358 1,191
2021 12,399 5,407
2020 8,446 7,900
2019 17,948 26,979
2018   22,433
Prior 68,450 50,379
Revolving Loans 14,936 11,398
Total loans 132,796 125,687 [1]
Loans Excluding Acquired Impaired Loans | Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 260,357  
2022 477,908 477,431
2021 559,625 525,162
2020 280,155 229,384
2019 183,881 136,913
2018   115,568
Prior 529,197 401,723
Revolving Loans 29,189 28,343
Total loans 2,320,312 1,914,524 [1],[2]
Loans Excluding Acquired Impaired Loans | Commercial Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 247,856  
2022 452,127 471,009
2021 516,624 510,529
2020 229,053 207,765
2019 143,283 111,792
2018   84,382
Prior 388,872 324,271
Revolving Loans 28,360 28,343
Total loans 2,006,175 1,738,091 [1]
Loans Excluding Acquired Impaired Loans | Commercial Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 12,501  
2022 22,094 6,422
2021 26,408 12,723
2020 46,713 20,583
2019 20,364 11,004
2018   17,269
Prior 68,003 44,462
Revolving Loans 0 0
Total loans 196,083 112,463 [1]
Loans Excluding Acquired Impaired Loans | Commercial Real Estate | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 799 0
2021 10,752 0
2020 2,618 121
2019 12,751 1,075
2018   1,232
Prior 25,790 10,075
Revolving Loans 0 0
Total loans 52,710 12,503 [1]
Loans Excluding Acquired Impaired Loans | Commercial Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 2,888 0
2021 5,841 1,910
2020 1,771 915
2019 7,483 13,042
2018   12,685
Prior 46,532 22,915
Revolving Loans 829 0
Total loans 65,344 51,467 [1]
Loans Excluding Acquired Impaired Loans | Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,178  
2022 140,288 68,752
2021 104,112 59,075
2020 75,851 43,462
2019 45,449 32,821
2018   53,246
Prior 237,825 182,366
Revolving Loans 60,827 52,868
Total loans 719,530 492,590 [1],[2]
Loans Excluding Acquired Impaired Loans | Residential Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,178  
2022 135,477 68,752
2021 104,005 59,075
2020 54,651 41,768
2019 37,806 31,726
2018   48,432
Prior 225,593 170,279
Revolving Loans 57,865 49,622
Total loans 670,575 469,654 [1]
Loans Excluding Acquired Impaired Loans | Residential Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 4,811 0
2021 0 0
2020 17,417 1,137
2019 7,167 682
2018   4,098
Prior 8,708 9,026
Revolving Loans 1,597 2,586
Total loans 39,700 17,529 [1]
Loans Excluding Acquired Impaired Loans | Residential Real Estate | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 3,594 323
2019 127 32
2018   420
Prior 1 876
Revolving Loans 413 0
Total loans 4,135 1,651 [1]
Loans Excluding Acquired Impaired Loans | Residential Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 107 0
2020 189 234
2019 349 381
2018   296
Prior 3,523 2,185
Revolving Loans 952 660
Total loans 5,120 3,756 [1]
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 83,841  
2022 159,164 62,310
2021 215,136 203,672
2020 54,182 63,740
2019 12,897 33,128
2018   34,700
Prior 1,443 41,254
Revolving Loans 174 185
Total loans 526,837 438,989 [1],[2]
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 82,449  
2022 145,174 62,310
2021 184,544 203,672
2020 35,466 61,895
2019 9,772 27,189
2018   26,489
Prior 1,429 38,186
Revolving Loans 174 185
Total loans 459,008 419,926 [1]
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,392  
2022 13,990 0
2021 21,313 0
2020 18,716 0
2019 3,125 4,409
2018   0
Prior 0 3,064
Revolving Loans 0 0
Total loans 58,536 7,473 [1]
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 9,279 0
2020 0 1,845
2019 0 0
2018   4,199
Prior 0 0
Revolving Loans 0 0
Total loans 9,279 6,044 [1]
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 1,530
2018   4,012
Prior 14 4
Revolving Loans 0 0
Total loans 14 5,546 [1]
Loans Excluding Acquired Impaired Loans | Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 516,747  
2022 561,478 526,477
2021 355,461 342,383
2020 119,877 160,560
2019 91,238 117,879
2018   124,058
Prior 190,372 156,880
Revolving Loans 613,388 629,608
Total loans 2,448,561 2,057,845 [1],[2]
Loans Excluding Acquired Impaired Loans | Commercial and Industrial | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 475,720  
2022 514,902 508,664
2021 288,392 305,056
2020 109,430 137,335
2019 73,059 72,486
2018   96,304
Prior 147,168 113,965
Revolving Loans 524,348 549,431
Total loans 2,133,019 1,783,241 [1]
Loans Excluding Acquired Impaired Loans | Commercial and Industrial | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 41,027  
2022 33,080 16,657
2021 50,407 20,856
2020 1,385 15,857
2019 6,951 32,282
2018   19,362
Prior 18,180 9,809
Revolving Loans 39,531 47,119
Total loans 190,561 161,942 [1]
Loans Excluding Acquired Impaired Loans | Commercial and Industrial | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 6,164 0
2021 10,595 13,056
2020 2,631 697
2019 1,112 1,162
2018   2,958
Prior 6,643 7,831
Revolving Loans 36,354 22,320
Total loans 63,499 48,024 [1]
Loans Excluding Acquired Impaired Loans | Commercial and Industrial | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 7,332 1,156
2021 6,067 3,415
2020 6,431 6,671
2019 10,116 11,949
2018   5,434
Prior 18,381 25,275
Revolving Loans 13,155 10,738
Total loans 61,482 64,638 [1]
Loans Excluding Acquired Impaired Loans | Installment and Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 564  
2022 132 366
2021 104 146
2020 133 65
2019 28 79
2018   17
Prior 425 657
Revolving Loans 1,814 429
Total loans 3,200 1,759 [2]
Loans Excluding Acquired Impaired Loans | Installment and Other | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 564  
2022 132 332
2021 79 146
2020 133 65
2019 28 79
2018   15
Prior 424 584
Revolving Loans 1,814 429
Total loans 3,174 1,650 [1]
Loans Excluding Acquired Impaired Loans | Installment and Other | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 34
2021 25 0
2020 0 0
2019 0 0
2018   2
Prior 1 73
Revolving Loans 0 0
Total loans 26 109 [1]
Loans Excluding Acquired Impaired Loans | Installment and Other | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [1]
Loans Excluding Acquired Impaired Loans | Installment and Other | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [1]
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 327,358  
2022 207,845 296,523
2021 94,634 150,230
2020 29,593 54,038
2019 5,544 14,737
2018   7,501
Prior 892 957
Revolving Loans 0 0
Total loans 665,866 523,986 [1],[2]
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 327,099  
2022 207,640 296,395
2021 93,242 148,588
2020 29,343 53,642
2019 5,443 14,478
2018   7,245
Prior 856 934
Revolving Loans 0 0
Total loans 663,623 521,282 [1]
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 67 93
2021 1,008 1,560
2020 16 26
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 1,091 1,679 [1]
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 179 290
2019 101 182
2018   250
Prior 36 23
Revolving Loans 0 0
Total loans 316 745 [1]
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 259  
2022 138 35
2021 384 82
2020 55 80
2019 0 77
2018   6
Prior 0  
Revolving Loans 0 0
Total loans $ 836 $ 280 [1]
[1] Includes $8.4 million of substandard loans classified as held for sale.
[2] (1) Includes $8.4 million of substandard loans classified as held for sale
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Contractual Delinquency Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 $ 2,252  
2022 3,017 $ 307
2021 5,981 942
2020 6,101 1,428
2019 5,216 4,211
2018   809
Prior 5,034 4,298
Revolving Loans 0 0
Total loans 27,601 11,995 [1]
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 193 0
2021 60 186
2020 1,511 101
2019 4,054 1,766
2018   35
Prior 3,911 1,749
Revolving Loans 0 0
Total loans 9,729 3,837 [1]
Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 33
2018   35
Prior 21 1,140
Revolving Loans 0 0
Total loans 21 1,208 [1]
Construction, Land Development, and Other Land    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 94
Revolving Loans 0 0
Total loans 0 94 [1]
Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,518  
2022 1,938 223
2021 5,372 111
2020 4,451 824
2019 1,087 2,412
2018   643
Prior 1,045 1,164
Revolving Loans 0 0
Total loans 15,411 5,377 [1]
Installment and Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 3 7
Revolving Loans 0 0
Total loans 3 7 [1]
Lease Financing Receivables    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 734  
2022 886 84
2021 549 645
2020 139 503
2019 75 0
2018   96
Prior 54 144
Revolving Loans 0 0
Total loans 2,437 1,472 [1]
Acquired Non-Impaired and Originated Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,244,045  
2022 1,546,815 1,431,859
2021 1,329,072 1,280,668
2020 559,791 551,249
2019 339,037 335,557
2018   335,090
Prior 960,154 783,837
Revolving Loans 705,392 711,433
Total loans 6,684,306 5,429,693 [1],[2]
Acquired Non-Impaired and Originated Loans | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,242,161  
2022 1,527,324 1,428,051
2021 1,321,778 1,277,498
2020 552,689 544,189
2019 326,021 325,621
2018   329,727
Prior 911,718 763,378
Revolving Loans 702,419 709,850
Total loans 6,584,110 5,378,314 [2]
Acquired Non-Impaired and Originated Loans | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,085  
2022 6,459 2,538
2021 2,922 1,892
2020 887 3,183
2019 5,722 1,821
2018   916
Prior 5,008 3,092
Revolving Loans 854 122
Total loans 22,937 13,564 [2]
Acquired Non-Impaired and Originated Loans | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 540  
2022 5,161 79
2021 302 47
2020 738 80
2019 3,440 87
2018   9
Prior 2,475 1,488
Revolving Loans 496 0
Total loans 13,152 1,790 [2]
Acquired Non-Impaired and Originated Loans | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 259  
2022 7,871 1,191
2021 4,070 1,231
2020 5,477 3,797
2019 3,854 8,028
2018   4,438
Prior 40,953 15,879
Revolving Loans 1,623 1,461
Total loans 64,107 36,025 [2]
Acquired Non-Impaired and Originated Loans | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,884  
2022 19,491 3,808
2021 7,294 3,170
2020 7,102 7,060
2019 13,016 9,936
2018   5,363
Prior 48,436 20,459
Revolving Loans 2,973 1,583
Total loans 100,196 51,379 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 260,357  
2022 477,908 477,431
2021 559,625 525,162
2020 280,155 229,384
2019 183,881 136,913
2018   115,568
Prior 529,197 401,723
Revolving Loans 29,189 28,343
Total loans 2,320,312 1,914,524 [1],[2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 259,998  
2022 474,878 477,334
2021 558,236 525,048
2020 279,098 229,260
2019 178,729 132,067
2018   112,126
Prior 501,620 387,349
Revolving Loans 29,189 28,343
Total loans 2,281,748 1,891,527 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 359  
2022 648 97
2021 638 54
2020 74 0
2019 3,176 0
2018   471
Prior 484 2,060
Revolving Loans 0 0
Total loans 5,379 2,682 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 826 0
2021 0 0
2020 286 0
2019 0 0
2018   0
Prior 1,208 1,016
Revolving Loans 0 0
Total loans 2,320 1,016 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 1,556 0
2021 751 60
2020 697 124
2019 1,976 4,846
2018   2,971
Prior 25,885 11,298
Revolving Loans 0 0
Total loans 30,865 19,299 [2]
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 359  
2022 3,030 97
2021 1,389 114
2020 1,057 124
2019 5,152 4,846
2018   3,442
Prior 27,577 14,374
Revolving Loans 0 0
Total loans 38,564 22,997 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,178  
2022 140,288 68,752
2021 104,112 59,075
2020 75,851 43,462
2019 45,449 32,821
2018   53,246
Prior 237,825 182,366
Revolving Loans 60,827 52,868
Total loans 719,530 492,590 [1],[2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,178  
2022 136,448 68,752
2021 102,973 59,075
2020 75,125 40,731
2019 45,050 32,440
2018   52,950
Prior 230,102 180,128
Revolving Loans 59,476 52,146
Total loans 704,352 486,222 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 3,840 0
2021 1,032 0
2020 537 2,497
2019 29 0
2018   0
Prior 4,122 108
Revolving Loans 399 122
Total loans 9,959 2,727 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 21 0
2018   0
Prior 127 0
Revolving Loans 0 0
Total loans 148 0 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 107 0
2020 189 234
2019 349 381
2018   296
Prior 3,474 2,130
Revolving Loans 952 600
Total loans 5,071 3,641 [2]
Acquired Non-Impaired and Originated Loans | Residential Real Estate | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 3,840 0
2021 1,139 0
2020 726 2,731
2019 399 381
2018   296
Prior 7,723 2,238
Revolving Loans 1,351 722
Total loans 15,178 6,368 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 83,841  
2022 159,164 62,310
2021 215,136 203,672
2020 54,182 63,740
2019 12,897 33,128
2018   34,700
Prior 1,443 41,254
Revolving Loans 174 185
Total loans 526,837 438,989 [1],[2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 83,841  
2022 156,815 62,310
2021 215,136 203,672
2020 54,182 63,740
2019 12,897 33,128
2018   34,700
Prior 1,443 41,250
Revolving Loans 174 185
Total loans 524,488 438,985 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 2,349 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 2,349 0 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 4
Revolving Loans 0 0
Total loans 0 4 [2]
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 2,349 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 4
Revolving Loans 0 0
Total loans 2,349 4 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 516,747  
2022 561,478 526,477
2021 355,461 342,383
2020 119,877 160,560
2019 91,238 117,879
2018   124,058
Prior 190,372 156,880
Revolving Loans 613,388 629,608
Total loans 2,448,561 2,057,845 [1],[2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 516,747  
2022 552,251 524,341
2021 351,534 339,915
2020 114,859 156,713
2019 83,780 113,350
2018   122,523
Prior 177,239 153,039
Revolving Loans 611,766 628,747
Total loans 2,408,176 2,038,628 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 1,545 980
2021 1,099 1,371
2020 238 391
2019 2,513 1,717
2018   368
Prior 400 922
Revolving Loans 455 0
Total loans 6,250 5,749 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 1,505 0
2021 0 8
2020 234 80
2019 3,416 87
2018   0
Prior 1,139 472
Revolving Loans 496 0
Total loans 6,790 647 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 6,177 1,156
2021 2,828 1,089
2020 4,546 3,376
2019 1,529 2,725
2018   1,167
Prior 11,594 2,447
Revolving Loans 671 861
Total loans 27,345 12,821 [2]
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 9,227 2,136
2021 3,927 2,468
2020 5,018 3,847
2019 7,458 4,529
2018   1,535
Prior 13,133 3,841
Revolving Loans 1,622 861
Total loans 40,385 19,217 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 564  
2022 132 366
2021 104 146
2020 133 65
2019 28 79
2018   17
Prior 425 657
Revolving Loans 1,814 429
Total loans 3,200 1,759 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 564  
2022 132 366
2021 104 146
2020 133 65
2019 28 79
2018   17
Prior 425 657
Revolving Loans 1,814 429
Total loans 3,200 1,759 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Installment and Other | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 327,358  
2022 207,845 296,523
2021 94,634 150,230
2020 29,593 54,038
2019 5,544 14,737
2018   7,501
Prior 892 957
Revolving Loans 0 0
Total loans 665,866 523,986 [1],[2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 325,833  
2022 206,800 294,948
2021 93,795 149,642
2020 29,292 53,680
2019 5,537 14,557
2018   7,411
Prior 889 955
Revolving Loans 0 0
Total loans 662,146 521,193 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 30 to 59 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 726  
2022 426 1,461
2021 153 467
2020 38 295
2019 4 104
2018   77
Prior 2 2
Revolving Loans 0 0
Total loans 1,349 2,406 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 60 to 89 Days Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 540  
2022 481 79
2021 302 39
2020 218 0
2019 3 0
2018   9
Prior 1 0
Revolving Loans 0 0
Total loans 1,545 127 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | Greater than 90 Accruing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018   0
Prior 0 0
Revolving Loans 0 0
Total loans 0 0 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | Non-accrual    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 259  
2022 138 35
2021 384 82
2020 45 63
2019 0 76
2018   4
Prior 0 0
Revolving Loans 0 0
Total loans 826 260 [2]
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | Total Past Due    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,525  
2022 1,045 1,575
2021 839 588
2020 301 358
2019 7 180
2018   90
Prior 3 2
Revolving Loans 0 0
Total loans $ 3,720 $ 2,793 [2]
[1] Includes $8.4 million of substandard loans classified as held for sale.
[2] (1) Includes $8.4 million of substandard loans classified as held for sale
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses Allowance for Credit Losses - Summary of Contractual Delinquency Information (Parenthetical) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Substandard  
Financing Receivable, Past Due [Line Items]  
Loans held for sale $ 8.4
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Allowance for Credit Losses and Corresponding Loan and Lease Balances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance for loan and lease losses      
Beginning balance $ 81,924 $ 55,012 $ 66,347
Adjustment for acquired PCD loans 10,596    
Provision/(recapture) for credit losses 32,220 22,674 1,457
Charge-offs (27,601) (11,995) (15,664)
Recoveries 4,547 4,065 2,872
Ending balance 101,686 81,924 55,012
Ending balance:      
Individually evaluated for impairment 27,241 15,338 21,038
Collectively evaluated for impairment 74,445 66,586 30,789
Loans acquired with deteriorated credit quality     3,185
Allowance for loan and lease losses 101,686 81,924 55,012
Loans and leases ending balance:      
Individually evaluated for impairment 113,494 92,225 72,923
Collectively evaluated for impairment 6,570,812 5,329,033 4,337,154
Financing Receivable, after Allowance for Credit Loss 2,200,000 2,200,000  
Total loans and leases 6,684,306 5,421,258 4,537,128
Pre-CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance   16,918  
Ending balance     16,918
Ending balance:      
Allowance for loan and lease losses     16,918
Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 12,168    
Ending balance   12,168  
Ending balance:      
Allowance for loan and lease losses   12,168  
Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     127,051
Commercial Real Estate      
Allowance for loan and lease losses      
Beginning balance 26,061 16,918 19,584
Adjustment for acquired PCD loans 8,230    
Provision/(recapture) for credit losses 7,237 5,252 1,263
Charge-offs (9,729) (3,837) (4,698)
Recoveries 1,438 1,361 769
Ending balance 33,237 26,061 16,918
Ending balance:      
Individually evaluated for impairment 12,361 6,101 6,538
Collectively evaluated for impairment 20,876 19,960 8,570
Loans acquired with deteriorated credit quality     1,810
Allowance for loan and lease losses 33,237 26,061 16,918
Loans and leases ending balance:      
Individually evaluated for impairment 64,339 37,959 35,051
Collectively evaluated for impairment 2,255,973 1,871,529 1,558,537
Total loans and leases 2,320,312 1,909,488 1,665,748
Commercial Real Estate | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 6,367    
Ending balance   6,367  
Ending balance:      
Allowance for loan and lease losses   6,367  
Commercial Real Estate | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     72,160
Residential Real Estate      
Allowance for loan and lease losses      
Beginning balance 3,140 1,628 2,400
Adjustment for acquired PCD loans 660    
Provision/(recapture) for credit losses (402) 907 (663)
Charge-offs (21) (1,208) (124)
Recoveries 118 766 15
Ending balance 3,495 3,140 1,628
Ending balance:      
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 3,495 3,140 622
Loans acquired with deteriorated credit quality     1,006
Allowance for loan and lease losses 3,495 3,140 1,628
Loans and leases ending balance:      
Individually evaluated for impairment 3,593 879 1,802
Collectively evaluated for impairment 715,937 489,083 429,311
Total loans and leases 719,530 489,962 480,514
Residential Real Estate | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 1,047    
Ending balance   1,047  
Ending balance:      
Allowance for loan and lease losses   1,047  
Residential Real Estate | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     49,401
Construction, Land Development, and Other Land      
Allowance for loan and lease losses      
Beginning balance 3,134 522 1,352
Adjustment for acquired PCD loans 97    
Provision/(recapture) for credit losses (325) 1,476 (504)
Charge-offs 0 (94) (326)
Recoveries 0 39 0
Ending balance 2,906 3,134 522
Ending balance:      
Individually evaluated for impairment 0 265 0
Collectively evaluated for impairment 2,906 2,869 519
Loans acquired with deteriorated credit quality     3
Allowance for loan and lease losses 2,906 3,134 522
Loans and leases ending balance:      
Individually evaluated for impairment 813 5,541 0
Collectively evaluated for impairment 526,024 433,448 324,087
Total loans and leases 526,837 438,989 325,399
Construction, Land Development, and Other Land | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 1,191    
Ending balance   1,191  
Ending balance:      
Allowance for loan and lease losses   1,191  
Construction, Land Development, and Other Land | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     1,312
Commercial and Industrial      
Allowance for loan and lease losses      
Beginning balance 41,889 33,129 41,183
Adjustment for acquired PCD loans 1,609    
Provision/(recapture) for credit losses 23,402 12,002 (219)
Charge-offs (15,411) (5,377) (9,015)
Recoveries 2,293 882 1,180
Ending balance 53,782 41,889 33,129
Ending balance:      
Individually evaluated for impairment 14,880 8,972 14,500
Collectively evaluated for impairment 38,902 32,917 18,265
Loans acquired with deteriorated credit quality     364
Allowance for loan and lease losses 53,782 41,889 33,129
Loans and leases ending balance:      
Individually evaluated for impairment 44,749 47,846 36,070
Collectively evaluated for impairment 2,403,812 2,009,228 1,541,877
Total loans and leases 2,448,561 2,057,074 1,581,961
Commercial and Industrial | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 1,253    
Ending balance   1,253  
Ending balance:      
Allowance for loan and lease losses   1,253  
Commercial and Industrial | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     4,014
Paycheck Protection Program ("PPP")      
Loans and leases ending balance:      
Individually evaluated for impairment     0
Collectively evaluated for impairment     123,712
Total loans and leases     123,712
Paycheck Protection Program ("PPP") | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     0
Installment and Other      
Allowance for loan and lease losses      
Beginning balance 24 9 15
Adjustment for acquired PCD loans 0    
Provision/(recapture) for credit losses 11 (9) (6)
Charge-offs (3) (7) 0
Recoveries 4 22 0
Ending balance 36 24 9
Ending balance:      
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 36 24 7
Loans acquired with deteriorated credit quality     2
Allowance for loan and lease losses 36 24 9
Loans and leases ending balance:      
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 3,200 1,759 1,204
Total loans and leases 3,200 1,759 1,368
Installment and Other | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance 9    
Ending balance   9  
Ending balance:      
Allowance for loan and lease losses   9  
Installment and Other | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     164
Lease Financing Receivables      
Allowance for loan and lease losses      
Beginning balance 7,676 2,806 1,813
Adjustment for acquired PCD loans 0    
Provision/(recapture) for credit losses 2,297 3,046 1,586
Charge-offs (2,437) (1,472) (1,501)
Recoveries 694 995 908
Ending balance 8,230 7,676 2,806
Ending balance:      
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 8,230 7,676 2,806
Loans acquired with deteriorated credit quality     0
Allowance for loan and lease losses 8,230 7,676 2,806
Loans and leases ending balance:      
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 665,866 523,986 358,426
Total loans and leases 665,866 523,986 358,426
Lease Financing Receivables | Impact of CECL Adoption [Member]      
Allowance for loan and lease losses      
Beginning balance $ 2,301    
Ending balance   2,301  
Ending balance:      
Allowance for loan and lease losses   $ 2,301  
Lease Financing Receivables | Loans Acquired with Deteriorated Credit Quality      
Loans and leases ending balance:      
Financing Receivable, after Allowance for Credit Loss     $ 0
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized for Loans and Leases Considered Impaired (Details) - Loans Excluding Acquired Impaired Loans
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Financing Receivable Impaired [Line Items]  
Recorded Investment $ 72,923
Unpaid Principal Balance 81,634
Related Allowance 21,038
Average Recorded Investment 99,486
Interest Income Recognized 5,987
Commercial Real Estate  
Financing Receivable Impaired [Line Items]  
Recorded Investment, With no related allowance recorded 17,233
Recorded Investment, With an allowance recorded 17,818
Unpaid Principal Balance, With no related allowance recorded 19,252
Unpaid Principal Balance, With an allowance recorded 20,117
Related Allowance 6,538
Average Recorded Investment, With no related allowance recorded 26,041
Average Recorded Investment, With an allowance recorded 26,575
Interest Income Recognized, With no related allowance recorded 1,262
Interest Income Recognized, With an allowance recorded 1,563
Residential Real Estate  
Financing Receivable Impaired [Line Items]  
Recorded Investment, With no related allowance recorded 1,802
Recorded Investment, With an allowance recorded 0
Unpaid Principal Balance, With no related allowance recorded 1,919
Unpaid Principal Balance, With an allowance recorded 0
Related Allowance 0
Average Recorded Investment, With no related allowance recorded 2,647
Average Recorded Investment, With an allowance recorded 164
Interest Income Recognized, With no related allowance recorded 123
Interest Income Recognized, With an allowance recorded 2
Commercial and Industrial  
Financing Receivable Impaired [Line Items]  
Recorded Investment, With no related allowance recorded 16,624
Recorded Investment, With an allowance recorded 19,446
Unpaid Principal Balance, With no related allowance recorded 19,148
Unpaid Principal Balance, With an allowance recorded 21,198
Related Allowance 14,500
Average Recorded Investment, With no related allowance recorded 16,808
Average Recorded Investment, With an allowance recorded 27,251
Interest Income Recognized, With no related allowance recorded 923
Interest Income Recognized, With an allowance recorded $ 2,114
v3.24.0.1
Loan and Lease Receivables and Allowance for Credit Losses - Summary of Loans with Modified Terms (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings   $ 2,324 $ 3,433
% of class of loans and leases 1.10%    
Commercial Real Estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
% of class of loans and leases 0.50%    
Commercial and Industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
% of class of loans and leases 2.60%    
Payment Delay      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings $ 43    
Payment Delay | Commercial Real Estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 0    
Payment Delay | Commercial and Industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 43    
Term Modification      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 73,104    
Term Modification | Commercial Real Estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 10,815    
Term Modification | Commercial and Industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 62,289    
Combination Term Modification and Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 364    
Combination Term Modification and Interest Rate Reduction | Commercial Real Estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 0    
Combination Term Modification and Interest Rate Reduction | Commercial and Industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 364    
Total Modified by Class      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 73,511    
Total Modified by Class | Commercial Real Estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings 10,815    
Total Modified by Class | Commercial and Industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Total troubled debt restructurings $ 62,696    
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of TDR's by Loan Category (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Loan
Dec. 31, 2021
USD ($)
Loan
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 14 15
Pre-Modification Outstanding Recorded Investment $ 3,566 $ 4,706
Post-Modification Outstanding Recorded Investment 2,324 3,433
Charge-offs 1,242 1,273
Individually Evaluated $ 254  
Specific Reserves   $ 457
Accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 5 8
Pre-Modification Outstanding Recorded Investment $ 719 $ 1,927
Post-Modification Outstanding Recorded Investment 719 1,927
Individually Evaluated $ 143  
Specific Reserves   $ 346
Non-accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 9 7
Pre-Modification Outstanding Recorded Investment $ 2,847 $ 2,779
Post-Modification Outstanding Recorded Investment 1,605 1,506
Charge-offs 1,242 1,273
Individually Evaluated $ 111  
Specific Reserves   $ 111
Commercial Real Estate | Accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 2 5
Pre-Modification Outstanding Recorded Investment $ 551 $ 1,703
Post-Modification Outstanding Recorded Investment 551 1,703
Individually Evaluated $ 109  
Specific Reserves   $ 215
Commercial Real Estate | Non-accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 3 4
Pre-Modification Outstanding Recorded Investment $ 830 $ 1,034
Post-Modification Outstanding Recorded Investment 623 918
Charge-offs 207 116
Individually Evaluated $ 73  
Specific Reserves   $ 111
Commercial and Industrial | Accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 1 1
Pre-Modification Outstanding Recorded Investment $ 24 $ 56
Post-Modification Outstanding Recorded Investment 24 56
Individually Evaluated $ 34  
Specific Reserves   $ 131
Commercial and Industrial | Non-accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 6 3
Pre-Modification Outstanding Recorded Investment $ 2,017 $ 1,745
Post-Modification Outstanding Recorded Investment 982 588
Charge-offs 1,035 $ 1,157
Individually Evaluated $ 38  
Residential Real Estate | Accruing    
Financing Receivable Modifications [Line Items]    
Number of Loans | Loan 2 2
Pre-Modification Outstanding Recorded Investment $ 144 $ 168
Post-Modification Outstanding Recorded Investment $ 144 $ 168
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Loans Modified as Troubled Debt Restructurings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
Beginning balance $ 1,927 $ 2,495
Additions 0 281
Net payments (1,208) (636)
Net transfers (to) from non-accrual 0 (213)
Ending balance 719 1,927
Beginning balance 1,506 5,650
Additions 756 673
Net payments (536) (3,671)
Charge-offs (121) (1,359)
Net transfers (to) from accrual 0 213
Ending balance 1,605 1,506
Total troubled debt restructurings $ 2,324 $ 3,433
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary Of Collateral Dependent Loans And Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses $ 113,494 $ 70,413
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 64,339 37,959
Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 3,593 879
Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 813 5,541
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 44,749 26,034
Commercial Construction [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 813 5,541
Commercial Construction [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Commercial Construction [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Commercial Construction [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 813 5,541
Commercial Construction [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Non-owner Occupied Commercial [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 28,767 9,749
Non-owner Occupied Commercial [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 28,767 9,749
Non-owner Occupied Commercial [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Non-owner Occupied Commercial [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Non-owner Occupied Commercial [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Owner Occupied Commercial [member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 35,572 28,210
Owner Occupied Commercial [member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 35,572 28,210
Owner Occupied Commercial [member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Owner Occupied Commercial [member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Owner Occupied Commercial [member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Multi-Family [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 2,793 237
Multi-Family [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Multi-Family [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 2,793 237
Multi-Family [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Multi-Family [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (1st Lien) [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 800 422
Single Family Residence (1st Lien) [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (1st Lien) [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 800 422
Single Family Residence (1st Lien) [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (1st Lien) [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (2nd Lien) [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 220
Single Family Residence (2nd Lien) [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (2nd Lien) [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 220
Single Family Residence (2nd Lien) [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Single Family Residence (2nd Lien) [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Business Assets [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 44,749 26,034
Business Assets [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Business Assets [Member] | Residential Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Business Assets [Member] | Construction, Land Development, and Other Land    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses 0 0
Business Assets [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Allowance For Credit Losses $ 44,749 $ 26,034
v3.24.0.1
Loans and Lease Receivables and Allowance for Credit Losses - Summary of Change in Balance for Allowance for Credit Losses Unfunded Commitments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]      
Beginning balance $ 4,203 $ 1,403 $ 1,887
Provision/(recapture) for/of unfunded commitments (567) 1,205 (484)
Ending balance 3,636 4,203 $ 1,403
Impact of CECL Adoption [Member]      
Financing Receivable, Credit Quality Indicator [Line Items]      
Beginning balance 1,595    
Ending balance $ 0 $ 1,595  
v3.24.0.1
Servicing Assets - Activity for Servicing Assets and Related Changes in Fair Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Transfers and Servicing [Abstract]      
Beginning balance $ 19,172 $ 23,744 $ 22,042
Additions, net 5,761 7,171 8,360
Changes in fair value (5,089) (11,743) (6,658)
Ending balance $ 19,844 $ 19,172 $ 23,744
v3.24.0.1
Servicing Assets - Unpaid Principal Balances of Loans Serviced for Others (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Loan portfolios serviced for:    
Unpaid principal balances of loans serviced $ 1,728,343 $ 1,732,164
SBA guaranteed loans    
Loan portfolios serviced for:    
Unpaid principal balances of loans serviced 1,530,401 1,521,014
USDA guaranteed loans    
Loan portfolios serviced for:    
Unpaid principal balances of loans serviced $ 197,942 $ 211,150
v3.24.0.1
Servicing Assets - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounts Notes And Loans Receivable [Line Items]      
Changes in fair value of servicing assets $ (5,089) $ (11,743) $ (6,658)
Loan Servicing Revenue [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value of servicing assets $ 13,500 $ 13,500 $ 12,700
v3.24.0.1
Other Real Estate Owned - Change in Other Real Estate Owned (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Real Estate [Abstract]      
Other real estate owned, beginning balance $ 4,717 $ 2,112 $ 6,350
Net additions to OREO 571 3,343 571
Proceeds from sales of OREO (3,580) (491) (4,285)
Gains (losses) on sales of OREO (81) 78 390
Valuation adjustments (427) (325) (914)
Other real estate owned, ending balance $ 1,200 $ 4,717 $ 2,112
v3.24.0.1
Other Real Estate Owned - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Real Estate [Line Items]        
Foreclosed real estate properties recorded as result of obtaining physical possession of property $ 1,200,000 $ 4,717,000 $ 2,112,000 $ 6,350,000
Residential consumer mortgage loans in process of foreclosure 27,000,000 0    
Proceeds from sale of internally financed sales of OREO $ 0 0    
Residential Real Estate        
Real Estate [Line Items]        
Foreclosed real estate properties recorded as result of obtaining physical possession of property   $ 2,300,000    
v3.24.0.1
Leases - Summary of Lease Costs and Company's Operating Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 2,738 $ 2,760 $ 3,461
Short-term lease cost 434 214 160
Variable lease cost 1,675 1,585 1,819
Less: Sublease income (630) (572) (653)
Total lease cost, net $ 4,217 $ 3,987 $ 4,787
v3.24.0.1
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 3,807
2025 3,227
2026 2,490
2027 1,443
2028 1,122
Thereafter 4,058
Total 16,147
Imputed interest (1,879)
Present value of future minimum lease payments $ 14,268
v3.24.0.1
Leases - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Lessee, Lease, Description [Line Items]    
Lessor, Operating Lease Maturity Year 2036  
Weighted average remaining life of operating leases 6 years 1 month 6 days 6 years 2 months 12 days
Weighted-average discount rate of operating leases 2.90% 1.95%
Operating cash flows paid for operating lease $ 4,100,000 $ 4,100,000
Termination payments 471,000  
Gain on termination 838,000  
Right-of-use lease assets in exchange for operating lease liabilities 4,800,000 3,000,000
Operating lease right-of-use asset 12,474,000 11,352,000
Impairment Losses 1,900,000  
Minimum rental to be received in future on subleases $ 1,100,000  
Sublease contract maturity year 2028  
Inland Bancorp, Inc.    
Lessee, Lease, Description [Line Items]    
Operating lease right-of-use asset $ 3,800,000  
Impairment charge related to acquisition $ 395,000,000 $ 0
v3.24.0.1
Premises and Equipment and Assets Held For Sale - Schedule for Classification of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Premises and equipment    
Premises $ 43,883 $ 41,340
Furniture, fixtures and equipment 16,789 16,032
Leasehold improvements 7,182 5,331
Total cost 67,854 62,703
Less accumulated depreciation,amortization and impairment (33,398) (34,606)
Premises and equipment, net 66,627 56,798
Net book value of premises, furniture, fixtures, equipment, and leasehold improvements    
Premises and equipment    
Premises and equipment, net 34,456 28,097
Construction in progress    
Premises and equipment    
Premises and equipment, net 374 57
Land    
Premises and equipment    
Premises and equipment, net $ 31,797 $ 28,644
v3.24.0.1
Premises and Equipment and Assets Held For Sale - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Item
Dec. 31, 2022
USD ($)
Item
Dec. 31, 2021
USD ($)
Item
Property, Plant and Equipment [Abstract]      
Depreciation and amortization of premises and equipment | $ $ 4,529 $ 4,288 $ 5,991
Number of branches closure   6 2
Number of other Facilities 6 3 8
Number of former branch sold 2 1 10
Number of piece of vacant land     1
Impairment loses | $     $ 2,200
v3.24.0.1
Premises and Equipment and Assets Held For Sale - Change in Assets Held for Sale (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Beginning balance $ 8,673 $ 9,153 $ 13,023
Transfers in 0 2,961 16,870
Proceeds from sales (2,538) (3,277) (9,040)
Net gains on sales 349 208 632
Impairment charge (2,000) (372) (12,332)
Ending balance $ 4,484 $ 8,673 $ 9,153
v3.24.0.1
Goodwill, Core Deposit Intangible and Other Intangible Assets - Summary of Changes in Goodwill and Core Deposit Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule Of Goodwill And Intangible Assets [Line Items]      
Beginning balance, Goodwill $ 148,353 $ 148,353 $ 148,353
Additions 33,352    
Ending balance, Goodwill 181,705 148,353 148,353
Amortization or accretion (6,011) (6,671) (7,073)
Core Deposits      
Schedule Of Goodwill And Intangible Assets [Line Items]      
Beginning balance 8,886 15,004 21,809
Additions 17,250    
Amortization or accretion (5,743) (6,118) (6,805)
Ending balance 20,393 8,886 15,004
Accumulated amortization or accretion $ 52,323 $ 46,580 $ 40,462
Weighted average remaining amortization or accretion period 8 years 3 months 18 days 4 years 4 months 24 days 4 years 9 months 18 days
Customer Relationships      
Schedule Of Goodwill And Intangible Assets [Line Items]      
Beginning balance $ 1,648 $ 2,201 $ 2,469
Amortization or accretion (268) (553) (268)
Ending balance 1,380 1,648 2,201
Accumulated amortization or accretion $ 1,836 $ 1,568 $ 1,015
Weighted average remaining amortization or accretion period 5 years 2 months 12 days 6 years 2 months 12 days 8 years 3 months 18 days
v3.24.0.1
Goodwill, Core Deposit Intangible and Other Intangible Assets - Estimated Amortization Expense for Core Deposit Intangible and Other Intangible Assets Recognized (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 5,380  
2025 4,473  
2026 3,566  
2027 2,676  
2028 2,101  
Thereafter 3,577  
Total $ 21,773 $ 10,534
v3.24.0.1
Income Taxes - Provision for income taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current tax expense (benefit):      
Federal $ 6,349 $ (3,774) $ 21,605
State and local 4,875 4,939 9,882
Total current tax expense 11,224 1,165 31,487
Deferred tax expense (benefit):      
Federal 23,569 25,157 2,966
State and local 3,009 407 (3,026)
Total deferred tax expense (benefit) 26,578 25,564 (60)
Provision for income taxes $ 37,802 $ 26,729 $ 31,427
v3.24.0.1
Income Taxes - Reconciliation between statutory and effective tax rate (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation between statutory U.S. federal income tax rate and effective tax rate      
Calculated tax expense at statutory rate 21.00% 21.00% 21.00%
Increase (decrease) in income taxes resulting from:      
State taxes, net of federal income tax 5.40% 4.80% 5.40%
Tax exempt income (0.80%) (1.00%) (0.90%)
Share-based compensation (0.20%) (1.70%) (0.20%)
Non-deductible expenses 0.50% 0.20% 0.00%
Total income tax expense 25.90% 23.30% 25.30%
v3.24.0.1
Income Taxes - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
Income Tax [Line Items]  
Operating loss carryforwards, limitations on use Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of net operating loss ("NOL") and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50 percent occurs within a three‑year period.
Cumulative change in ownership Percentage 50.00%
Estimated net operating losses available each year $ 756,000
Oak Park River Forest Bankshares, Inc.  
Income Tax [Line Items]  
Estimated net operating losses available each year 781,000
Net operating loss carryforwards 4,300,000
Inland Acquisition  
Income Tax [Line Items]  
Estimated net operating losses available each year 4,200,000
Net operating loss carryforwards 3,900,000
Prorated Amount 2,100,000
State and Local Jurisdiction  
Income Tax [Line Items]  
Net operating loss carryforwards $ 100,000
Operating Loss Carryforwards Expiration Term Dec. 31, 2043
v3.24.0.1
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Net operating losses $ 22,292 $ 22,008
Interest on non-accrual loans 5,652 2,610
Allowance for credit losses - loans and leases and loan basis 38,204 23,721
Servicing assets 2,702 3,511
Premises and equipment 5,603 4,671
Other real estate owned 441 356
Net unrealized holding loss on securities available-for-sale 46,492 54,465
Accrued expenses 5,365 5,375
Other 5,761 3,343
Total deferred tax assets 132,512 120,060
Deferred tax liabilities:    
Equipment leasing (59,218) (32,872)
Core deposit intangibles (5,807) (2,814)
Deposits (343) 0
Trust preferred securities (4,413) (2,046)
Net unrealized holding gain on cash flow hedges (10,959) (12,506)
Other (1,714) (1,609)
Total deferred tax liabilities (82,454) (51,847)
Net deferred tax assets $ 50,058 $ 68,213
v3.24.0.1
Income Taxes - Operating loss and credit carryforwards (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Federal    
Operating loss carryforwards    
Net operating loss carryforwards $ 2,468,000 $ 1,436,000
Federal | 2030    
Operating loss carryforwards    
Net operating loss carryforwards 7,560,000 8,316,000
Illinois    
Operating loss carryforwards    
Net operating loss carryforwards 100,000  
Illinois | 2031    
Operating loss carryforwards    
Net operating loss carryforwards $ 268,969,000 $ 265,961,000
v3.24.0.1
Income Taxes - Operating loss and credit carryforwards (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2023
Federal  
Operating loss carryforwards  
Operating loss carryforwards expiration year 2030
Illinois  
Operating loss carryforwards  
Operating loss carryforwards expiration year 2031
v3.24.0.1
Deposits - Schedule of Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deposits [Abstract]    
Non-interest-bearing demand deposits $ 1,905,876 $ 2,138,645
Interest-bearing checking accounts 577,609 592,098
Money market demand accounts 2,266,030 1,415,653
Other savings 542,532 625,798
Time deposits (below $250,000) 1,520,082 762,250
Time deposits ($250,000 and above) 364,870 160,677
Total deposits $ 7,176,999 $ 5,695,121
v3.24.0.1
Deposits - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deposits [Abstract]    
Time deposits $ 250,000 $ 250,000
Time deposit brokered $ 480,000 $ 251,500
v3.24.0.1
Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Time Deposit [Abstract]    
2024 $ 1,831,528  
2025 39,153  
2026 8,521  
2027 4,639  
2028 1,111  
Total $ 1,884,952 $ 922,927
v3.24.0.1
Other Borrowings - Summary of Other Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
Federal Home Loan Bank advances $ 325,000 $ 625,000
Securities sold under agreements to repurchase 40,607 15,399
Term Loan 18,333 0
Line of credit 11,250 0
Total $ 395,190 $ 640,399
v3.24.0.1
Other Borrowings - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
May 26, 2026
May 26, 2024
Jan. 22, 2024
Oct. 10, 2019
Dec. 31, 2023
Dec. 31, 2022
Oct. 13, 2016
Line Of Credit Facility [Line Items]              
Federal Reserve Bank discount window borrowing         $ 0 $ 0  
Federal Home Loan Bank advances         325,000 625,000  
Federal Home Loan Bank Variable Rate Advances         250,000    
Federal Home Loan Bank fixed rate advances         $ 75,000    
Federal home loan bank advances, Fixed interest rate         5.45%    
Federal Home Loan Bank, Advances, Interest Rate         5.59%    
Federal home loan bank, required investment conversion ratio         4.5    
Federal home loan bank advances maximum borrowing capacity as percentage of total assets         35.00%    
Line of credit facility, amount         $ 11,250 0  
Term Loan         $ 18,333 0  
Short-Term Debt, Percentage Bearing Variable Interest Rate         7.64%    
Line of Credit Facility, Interest Rate         7.39%    
Forecast              
Line Of Credit Facility [Line Items]              
Line of credit facility, extended maturity date   May 26, 2024          
Line of credit facility, maximum borrowing capacity $ 20,000            
Debt instrument, maturity date May 26, 2026            
Forecast | Revolving Credit Facility              
Line Of Credit Facility [Line Items]              
Line of credit facility, maximum borrowing capacity   $ 15,000          
Federal Reserve Bank Advances | Subsequent Event              
Line Of Credit Facility [Line Items]              
Debt instrument, interest rate     4.91%        
Advance from Federal Reserve Bank of Chicago     $ 200,000        
Debt instrument, maturity date     Jan. 22, 2025        
Correspondent Bank | Ridgestone              
Line Of Credit Facility [Line Items]              
Line of credit facility, interest rate terms         The term loan bears interest at either SOFR plus 230 basis points or Prime Rate minus 50 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 50 basis points.    
Correspondent Bank | Credit agreement | Ridgestone              
Line Of Credit Facility [Line Items]              
Line of credit facility, amount             $ 30,000
Correspondent Bank | Amended Credit Agreement | Ridgestone | SOFR              
Line Of Credit Facility [Line Items]              
Interest rate spread       205.00%      
Correspondent Bank | Amended Credit Agreement | Ridgestone | Prime Rate              
Line Of Credit Facility [Line Items]              
Interest rate spread       75.00%      
Correspondent Bank | Fourth Amendment Revolving Credit Agreement | Ridgestone              
Line Of Credit Facility [Line Items]              
Line of credit facility, amount           $ 0 $ 15,000
Line of credit facility, interest rate terms         The amended revolving line of credit bears interest at either SOFR plus 205 basis points or Prime Rate minus 75 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. At December 31, 2022, the line of credit had no outstanding balance.  
Correspondent Bank | Forecast | Amended Credit Agreement | Ridgestone | SOFR              
Line Of Credit Facility [Line Items]              
Interest rate spread   230.00%          
Correspondent Bank | Forecast | Amended Credit Agreement | Ridgestone | Prime Rate              
Line Of Credit Facility [Line Items]              
Interest rate spread   50.00%          
v3.24.0.1
Other Borrowings - Summary of Short-term Credit Lines Available for Use (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Federal Home Loan Bank Line    
Debt Instrument [Line Items]    
Short-term credit lines available for use $ 2,781,747 $ 1,903,549
Federal Reserve Bank of Chicago Discount Window Line    
Debt Instrument [Line Items]    
Short-term credit lines available for use 866,490 804,578
Available Federal Funds Line    
Debt Instrument [Line Items]    
Short-term credit lines available for use $ 123,750 $ 135,000
v3.24.0.1
Subordinated Notes and Junior Subordinated Debentures - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 15, 2023
Sep. 14, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Debt Instrument [Line Items]          
Principal amount     $ 87,000 $ 45,000  
Accrued interest payable     $ 22,233 $ 4,494  
Three Month CME Secured Overnight Financing Rate Plus Tenor Spread Adjustment          
Debt Instrument [Line Items]          
Adjustment spread Interest rate     0.26161%    
Fixed-To-Floating Subordinate Notes Mature on July 1, 2030 | Subordinated Notes          
Debt Instrument [Line Items]          
Debt instrument, face amount         $ 75,000
Debt instrument, interest rate         6.00%
Debt instrument, maturity date     Jul. 01, 2030    
Debt instrument, redemption, description     As of December 31, 2023 and 2022, the liability outstanding relating to the subordinated notes, net of unamortized debt issuance costs, was $73.9 million and $73.7 million, respectively. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the FRB to the extent such approval is then required. As of December 31, 2023 and 2022, the liability outstanding relating to the subordinated notes, net of unamortized debt issuance costs, was $73.9 million and $73.7 million, respectively. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the FRB to the extent such approval is then required.  
Debt issuance costs         $ 1,700
Debt issuance costs, amortization period     10 years    
Unamortized debt issuance costs     $ 73,900 $ 73,700  
Fixed-To-Floating Subordinate Notes Mature on July 1, 2030 | Subordinated Notes | Three-Month Secured Overnight Financing Rate Plus 588 Basis Points          
Debt Instrument [Line Items]          
Debt instrument, description of variable rate basis     The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month Secured Overnight Financing Rate plus 588 basis points thereafter until maturity.    
Metropolitan Statutory Trust 1          
Debt Instrument [Line Items]          
Principal amount     $ 35,000 $ 35,000  
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures          
Debt Instrument [Line Items]          
Debt instrument, maturity date     Mar. 17, 2034    
Contractual rate     8.43% 7.53%  
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures | Three Month CME Secured Overnight Financing Rate Plus Tenor Spread Adjustment          
Debt Instrument [Line Items]          
Adjustment spread Interest rate   0.26161%      
Interest rate spread     2.79%    
First Evanston Bancorp Trust I          
Debt Instrument [Line Items]          
Principal amount     $ 10,000 $ 10,000  
First Evanston Bancorp Trust I | Junior Subordinated Debentures          
Debt Instrument [Line Items]          
Debt instrument, maturity date     Mar. 15, 2035    
Contractual rate     7.43% 6.55%  
First Evanston Bancorp Trust I | Junior Subordinated Debentures | Three Month CME Secured Overnight Financing Rate Plus Tenor Spread Adjustment          
Debt Instrument [Line Items]          
Adjustment spread Interest rate 0.26161%        
Interest rate spread     1.78%    
v3.24.0.1
Subordinated Notes and Junior Subordinated Debentures - Junior Subordinated Debentures by Issuance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par $ 87,000 $ 45,000
Total liability, at carrying value 70,452 37,338
Metropolitan Statutory Trust 1    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 35,000 35,000
First Evanston Bancorp Trust I    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 10,000 10,000
AmeriMark Capital Trust One    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 5,000 0
Inland Bancorp Trust Two    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 10,000 0
Inland Bancorp Trust Three    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 10,000 0
Inland Bancorp Trust Four    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 7,000 0
Inland Bancorp Trust Five    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Total liability, at par 10,000 0
Junior Subordinated Debentures    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Discount $ (16,548) $ (7,662)
Junior Subordinated Debentures | Metropolitan Statutory Trust 1    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Mar. 17, 2034  
Contractual Rate 8.43% 7.53%
Junior Subordinated Debentures | Metropolitan Statutory Trust 1 | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 2.79%  
Interest Rate Spread [1] 2.79%  
Junior Subordinated Debentures | First Evanston Bancorp Trust I    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Mar. 15, 2035  
Contractual Rate 7.43% 6.55%
Junior Subordinated Debentures | First Evanston Bancorp Trust I | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 1.78%  
Interest Rate Spread [1] 1.78%  
Junior Subordinated Debentures | AmeriMark Capital Trust One    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Apr. 23, 2034  
Contractual Rate 8.42%  
Junior Subordinated Debentures | AmeriMark Capital Trust One | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 2.75%  
Interest Rate Spread [1] 2.75%  
Junior Subordinated Debentures | Inland Bancorp Trust Two    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Sep. 15, 2035  
Contractual Rate 7.25%  
Junior Subordinated Debentures | Inland Bancorp Trust Two | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 1.60%  
Interest Rate Spread [1] 1.60%  
Junior Subordinated Debentures | Inland Bancorp Trust Three    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Dec. 15, 2036  
Contractual Rate 7.30%  
Junior Subordinated Debentures | Inland Bancorp Trust Three | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 1.65%  
Interest Rate Spread [1] 1.65%  
Junior Subordinated Debentures | Inland Bancorp Trust Four    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Jun. 06, 2037  
Contractual Rate 7.24%  
Junior Subordinated Debentures | Inland Bancorp Trust Four | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 1.62%  
Interest Rate Spread [1] 1.62%  
Junior Subordinated Debentures | Inland Bancorp Trust Five    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Stated Maturity Sep. 15, 2037  
Contractual Rate 7.07%  
Junior Subordinated Debentures | Inland Bancorp Trust Five | Secured Overnight Financing Rate Plus Spread Adjustment    
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]    
Interest Rate Spread, Description [1] SOFR + spread adjustment + 1.42%  
Interest Rate Spread [1] 1.42%  
[1]

(1) SOFR is three month SOFR and the spread adjustment is 0.26161%
v3.24.0.1
Subordinated Notes and Junior Subordinated Debentures - Junior Subordinated Debentures by issuance ( Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2023
Three month SOFR and spread adjustment  
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items]  
Adjustment spread Interest rate 0.26161%
v3.24.0.1
Employee Benefit Plans - Additional Information (Details) - USD ($)
 12 Months Ended
Jan. 01, 2017
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jun. 07, 2022
Jun. 14, 2017
Employee Benefit Plans            
Profit sharing contributions   $ 0 $ 0 $ 0    
Employer contribution to Plan   $ 3,300,000 $ 3,000,000 $ 2,600,000    
Common Stock            
Employee Benefit Plans            
Stock issued under employee stock purchase plans   73,612 48,173 53,202    
Employee Stock Purchase Plan            
Employee Benefit Plans            
Common stock reserved for sale   152,524     200,000 200,000
Compensation expense   $ 388,000,000 $ 169,000,000 $ 1,000,000    
3% contributed by employees            
Employee Benefit Plans            
Employer matching contribution 100.00%          
Contribution by employees 3.00%          
2% contributed by employees            
Employee Benefit Plans            
Employer matching contribution 50.00%          
Contribution by employees 2.00%          
v3.24.0.1
Commitments and Contingent Liabilities - Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Commitments And Contingencies Liabilities [Line Items]    
Fixed Rate $ 269,937 $ 258,585
Variable Rate 2,081,262 1,882,503
Total 2,351,199 2,141,088
Commitments to Extend Credit    
Commitments And Contingencies Liabilities [Line Items]    
Fixed Rate 269,325 258,049
Variable Rate 2,013,819 1,821,175
Total 2,283,144 2,079,224
Letters of Credit    
Commitments And Contingencies Liabilities [Line Items]    
Fixed Rate 612 536
Variable Rate 67,443 61,328
Total $ 68,055 $ 61,864
v3.24.0.1
Commitments and Contingent Liabilities - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
Commitments And Contingencies Liabilities [Line Items]  
Fixed rate loan commitments maturity year 2053
Variable rate loan commitments maturity year 2049
Maximum  
Commitments And Contingencies Liabilities [Line Items]  
Commitments to make loans period 90 days
Loan commitments fixed interest rate 15.00%
Loan commitments variable interest rate 18.50%
Minimum  
Commitments And Contingencies Liabilities [Line Items]  
Loan commitments fixed interest rate 1.00%
Loan commitments variable interest rate 4.00%
v3.24.0.1
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) $ 1,342,480 $ 1,174,431    
Equity and other securities, at fair value 8,743 7,989    
Servicing assets, at fair value 19,844 19,172 $ 23,744 $ 22,042
Derivative assets $ 56,923 $ 65,342    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant and Equipment, Net Property, Plant and Equipment, Net    
Derivative liabilities $ 19,345 $ 17,817    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities and Other Liabilities Accrued Liabilities and Other Liabilities    
U.S. Treasury Notes        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) $ 115,434 $ 40,723    
U.S. Government Agencies        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 130,695 130,364    
Obligations of States, Municipalities, and Political Subdivisions        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 82,275 61,876    
Corporate Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 36,171 41,436    
Asset-Backed Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 34,638 40,957    
Fair Value, Measurements, Recurring        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Servicing assets, at fair value 19,844 19,172    
Derivative assets 56,923 65,342    
Derivative liabilities 19,345 17,817    
Fair Value, Measurements, Recurring | U.S. Treasury Notes        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 115,434 40,723    
Fair Value, Measurements, Recurring | U.S. Government Agencies        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 130,695 130,364    
Fair Value, Measurements, Recurring | Obligations of States, Municipalities, and Political Subdivisions        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 82,275 61,876    
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 695,803 595,796    
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Non-Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 100,260 106,249    
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Commercial | Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 147,204 157,030    
Fair Value, Measurements, Recurring | Corporate Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 36,171 41,436    
Fair Value, Measurements, Recurring | Asset-Backed Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 34,638 40,957    
Fair Value, Measurements, Recurring | Mutual Funds        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Equity and other securities, at fair value 2,554 2,518    
Fair Value, Measurements, Recurring | Equity Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Equity and other securities, at fair value 6,189 5,471    
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury Notes        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 115,434 40,723    
Fair Value, Measurements, Recurring | Level 1 | Mutual Funds        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Equity and other securities, at fair value 2,554 2,518    
Fair Value, Measurements, Recurring | Level 2        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Derivative assets 56,923 65,342    
Derivative liabilities 19,345 17,817    
Fair Value, Measurements, Recurring | Level 2 | U.S. Government Agencies        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 130,695 130,364    
Fair Value, Measurements, Recurring | Level 2 | Obligations of States, Municipalities, and Political Subdivisions        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 82,275 61,876    
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 695,803 595,796    
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Non-Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 100,260 106,249    
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Commercial | Agency        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 147,204 157,030    
Fair Value, Measurements, Recurring | Level 2 | Corporate Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 36,171 41,436    
Fair Value, Measurements, Recurring | Level 2 | Asset-Backed Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Securities available-for-sale, at fair value ($1,149 and $2,672 amortized cost at December 31, 2023 and 2022, respectively) 34,638 40,957    
Fair Value, Measurements, Recurring | Level 2 | Equity Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Equity and other securities, at fair value 5,908 4,805    
Fair Value, Measurements, Recurring | Level 3        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Servicing assets, at fair value 19,844 19,172    
Fair Value, Measurements, Recurring | Level 3 | Equity Securities        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Equity and other securities, at fair value $ 281 $ 666    
v3.24.0.1
Fair Value Measurement - Additional Information (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]    
Fair value, equity, to or from level 3 transfers, amount $ 0  
Fair value liabilities to or from level 1 and level 2 $ 0 $ 0
v3.24.0.1
Fair Value Measurement - Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Equity Securities, FV-NI, Realized Gain (Loss) Equity Securities, FV-NI, Realized Gain (Loss)
Investment Securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Balance, beginning of period $ 666 $ 686
Additions, net 0 0
Maturities (400) 0
Accretion 82 0
Change in fair value (67) (20)
Balance, end of period 281 666
Servicing Assets    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Balance, beginning of period 19,172 23,744
Additions, net 5,761 7,171
Maturities 0 0
Accretion 0 0
Change in fair value (5,089) (11,743)
Balance, end of period $ 19,844 $ 19,172
v3.24.0.1
Fair Value Measurement - Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Level 3
 12 Months Ended
Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Debt Instrument, Valuation Technique [Extensible List] Single Issuer Trust Preferred
Servicing Asset, Valuation Technique [Extensible List] Servicing Assets
Single Issuer Trust Preferred  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Impact to Valuation from an Increased or Higher Input Value Decrease
Unobservable Inputs 0.079
Single Issuer Trust Preferred | Weighted Average  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs 0.079
Servicing Assets | Prepayment Speeds  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Impact to Valuation from an Increased or Higher Input Value Decrease
Servicing Assets | Prepayment Speeds | Minimum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs (0.01)
Servicing Assets | Prepayment Speeds | Maximum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs 0.319
Servicing Assets | Prepayment Speeds | Weighted Average  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs 0.141
Servicing Assets | Discount Rate  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Impact to Valuation from an Increased or Higher Input Value Decrease
Servicing Assets | Discount Rate | Minimum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs (0.159)
Servicing Assets | Discount Rate | Maximum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs 0.556
Servicing Assets | Discount Rate | Weighted Average  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Unobservable Inputs 0.143
Servicing Assets | Expected Weighted Average Loan life  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Impact to Valuation from an Increased or Higher Input Value Increase
Servicing Assets | Expected Weighted Average Loan life | Minimum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Expected weighted average loan life 0 years
Servicing Assets | Expected Weighted Average Loan life | Maximum  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Expected weighted average loan life 9 years 2 months 12 days
Servicing Assets | Expected Weighted Average Loan life | Weighted Average  
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Expected weighted average loan life 3 years 8 months 12 days
v3.24.0.1
Fair Value Measurement - Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value $ 86,253 $ 76,887
Commercial Real Estate    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 51,978 31,858
Residential Real Estate    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 3,593 879
Construction, Land Development, and Other Land    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 813 5,276
Commercial and Industrial    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 29,869 38,874
Other Real Estate Owned    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 1,200 4,717
Level 3 | Commercial Real Estate    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 51,978 31,858
Level 3 | Residential Real Estate    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 3,593 879
Level 3 | Construction, Land Development, and Other Land    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 813 5,276
Level 3 | Commercial and Industrial    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 29,869 38,874
Level 3 | Other Real Estate Owned    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 1,200 4,717
Assets Held For Sale    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value 4,484 8,673
Assets Held For Sale | Level 3    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets, Fair Value $ 4,484 $ 8,673
v3.24.0.1
Fair Value Measurement - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financial assets    
Cash and due from banks $ 60,431 $ 62,274
Interest bearing deposits with other banks 165,705 117,079
Securities held-to-maturity, fair value 1,149 2,672
Restricted stock, at cost 16,304 28,202
Loans held for sale 18,005 47,823
Loans and lease receivables, net (less individually evaluated loans of fair value $86,253 and $76,887, as of December 31, 2023 and 2022, respectively) 6,582,620 5,339,334
Accrued interest receivable 43,922 29,815
Financial liabilities    
Federal Home Loan Bank advances 325,000 625,000
Securities sold under agreements to repurchase 40,607 15,399
Term Loan 18,333 0
Line of credit 11,250 0
Subordinated notes, net 73,866 73,691
Junior subordinated debentures issued to capital trusts, net 70,452 37,338
Level 1 | Carrying Amount    
Financial assets    
Cash and due from banks 60,431 62,274
Level 1 | Estimate of Fair Value Measurement    
Financial assets    
Cash and due from banks 60,431 62,274
Level 2 | Carrying Amount    
Financial assets    
Interest bearing deposits with other banks 165,705 117,079
Securities held-to-maturity, fair value 1,157 2,705
Restricted stock, at cost 16,304 28,202
Financial liabilities    
Non-interest-bearing deposits 1,905,876 2,138,645
Interest-bearing deposits 5,271,123 3,556,476
Accrued interest payable 22,233 4,494
Federal Home Loan Bank advances 325,000 625,000
Securities sold under agreements to repurchase 40,607 15,399
Term Loan 18,333 0
Line of credit 11,250 0
Subordinated notes, net 73,866 73,691
Level 2 | Estimate of Fair Value Measurement    
Financial assets    
Interest bearing deposits with other banks 165,705 117,079
Securities held-to-maturity, fair value 1,149 2,672
Restricted stock, at cost 16,304 28,202
Financial liabilities    
Non-interest-bearing deposits 1,905,876 2,138,645
Interest-bearing deposits 5,268,926 3,554,318
Accrued interest payable 22,233 4,494
Federal Home Loan Bank advances 325,000 625,000
Securities sold under agreements to repurchase 40,607 15,399
Term Loan 18,333 0
Line of credit 11,250 0
Subordinated notes, net 76,063 70,925
Level 3 | Carrying Amount    
Financial assets    
Loans held for sale 18,005 47,823
Loans and lease receivables, net (less individually evaluated loans of fair value $86,253 and $76,887, as of December 31, 2023 and 2022, respectively) 6,496,367 5,262,447
Accrued interest receivable 43,922 29,815
Financial liabilities    
Junior subordinated debentures issued to capital trusts, net 70,452 37,338
Level 3 | Estimate of Fair Value Measurement    
Financial assets    
Loans held for sale 19,136 40,657
Loans and lease receivables, net (less individually evaluated loans of fair value $86,253 and $76,887, as of December 31, 2023 and 2022, respectively) 6,326,413 5,259,991
Accrued interest receivable 43,922 29,815
Financial liabilities    
Junior subordinated debentures issued to capital trusts, net $ 72,701 $ 40,131
v3.24.0.1
Fair Value Measurement - Summary of Estimated Fair Values of Financial Instruments (Parenthetical) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]    
Impaired loans at fair value $ 86,253 $ 76,887
v3.24.0.1
Share-Based Compensation - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Feb. 29, 2024
Oct. 30, 2014
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jun. 30, 2017
Oct. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Common stock, voting par value     $ 0.01 $ 0.01      
Number of options exercised     59,153        
Common Stock              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Number of options exercised       224,640 115,897    
Restricted Shares | Common Stock              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares of restricted voting common stock granted     305,117        
Common stock, voting par value     $ 0.01        
Restricted Shares | Common Stock | Subsequent Event              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares of restricted voting common stock granted 347,492            
Common stock, voting par value $ 0.01            
Restricted Shares | Common Stock | Each Anniversary of Grant Date Over Four Years | Subsequent Event              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period 3 years            
Restricted Shares | Common Stock | Each Anniversary of Grant Date Vest Over Three Years              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares vest on grant date     209,772        
Award vesting period     3 years        
Restricted Shares | Common Stock | Each Anniversary of Grant Date Vest Over Three Years | Subsequent Event              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares vest on grant date 268,595            
Restricted Shares | Common Stock | Threshold performance              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares vest on grant date     6,113        
Award vesting period     1 year        
Restricted Shares | Common Stock | Third Anniversary of Grant Date              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares vest on grant date     37,850        
Restricted Shares | Common Stock | Third Anniversary of Grant Date | Subsequent Event              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares vest on grant date 12,861            
Performance-based Restricted Shares              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares of restricted voting common stock granted     51,382        
Period for number of shares earned under return on average assets       3 years      
Performance-based Restricted Shares | Subsequent Event              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares of restricted voting common stock granted 66,036            
Period for number of shares earned under return on average assets 3 years            
Performance Shares [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Risk-free interest rate     4.42%        
Simulation term     2 years 10 months 6 days        
Share price     $ 25.2        
Performance Shares [Member] | Maximum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Expected volatility     39.80%        
Performance Shares [Member] | Minimum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Expected volatility     38.11%        
Omnibus Plan              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Number of common stock reserved for issuance           2,600,000  
Number of common shares available for future grants     1,181,493        
Omnibus Plan | Restricted Shares              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Shares of restricted voting common stock granted     305,117        
Restricted shares vested     238,638 234,603 148,577    
Fair value of restricted shares, vested     $ 5,700,000 $ 5,900,000 $ 3,400,000    
Fair value of unvested restricted stock awards     $ 14,800,000        
Share price     $ 24.24 $ 22.93      
Number of shares outstanding     627,271 581,337      
Omnibus Plan | Time Options Grants | Maximum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     4 years        
Omnibus Plan | Time Options Grants | Minimum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     1 year        
BYB Plan              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Number of common shares available for future grants           0  
Number of options granted   1,846,968          
Number of shares outstanding     768,564 768,564      
Number of options exercised     0 568,484 53,531    
Proceeds from the exercise of stock options       $ 470,000 $ 751,000    
Tax benefit from exercise of stock options       $ 2,300,000 $ 121,000    
Options vested     0        
BYB Plan | Maximum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Number of common shares available for future grants             2,476,122
BYB Plan | Time Options Grants              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award contractual term     10 years        
BYB Plan | Time Options Grants | Maximum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     5 years        
BYB Plan | Time Options Grants | Minimum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     1 year        
BYB Plan | Performance Options Grants              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award contractual term     10 years        
BYB Plan | Performance Options Grants | Maximum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     5 years        
BYB Plan | Performance Options Grants | Minimum              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Award vesting period     1 year        
FEB Plan              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Number of shares outstanding     103,135 162,288      
Number of options exercised     59,153 7,559 62,366    
Proceeds from the exercise of stock options     $ 659,000 $ 80,000 $ 705,000    
Tax benefit from exercise of stock options     $ 158,000 $ 25,000 $ 153,000    
Conversion calculation percentage     4.725%        
v3.24.0.1
Share-Based Compensation - Summary of Changes in Restricted Shares (Details) - Omnibus Plan - Restricted Shares - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of shares, beginning balance 581,337    
Number of shares, granted 305,117    
Incremental performance shares vested 1,826    
Number of shares, vested (238,638) (234,603) (148,577)
Number of shares, forfeited (22,371)    
Number of shares, ending balance 627,271 581,337  
Weighted average grant date fair value, beginning balance $ 22.93    
Weighted average grant date fair value, granted 24.34    
Weighted average grant date fair value, vested 21.18    
Weighted average grant date fair value, forfeited 23.48    
Weighted average grant date fair value, ending balance $ 24.24 $ 22.93  
v3.24.0.1
Share-Based Compensation - Summary of Stock Compensation Expense (Details) - Restricted Shares - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation $ 6,715 $ 5,334 $ 4,018
Income tax benefit 1,806 1,474 1,108
Unrecognized compensation expense $ 9,371 $ 9,151 $ 6,991
Weighted-average amortization period remaining 1 year 10 months 24 days 2 years 3 months 18 days 2 years 2 months 12 days
v3.24.0.1
Share-Based Compensation - Summary Activity in shares Subjected to Options and Weighted Average Exercise Prices (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Shares, Exercised (59,153)    
BYB Plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Shares, Beginning balance 768,564    
Number of Shares, Exercised 0 (568,484) (53,531)
Number of Shares, Ending balance 768,564 768,564  
Number of Shares, Exercisable 768,564    
Weighted Average Exercise Price, Beginning balance $ 11.31    
Weighted Average Exercise Price, Ending balance 11.31 $ 11.31  
Weighted Average Exercise Price, Exercisable $ 11.31    
Intrinsic Value, Outstanding $ 9,413 $ 8,960  
Intrinsic Value, Exercisable $ 9,413    
Weighted Average Remaining Contractual Term (in Years) 1 year 6 months 2 years 6 months  
Weighted Average Remaining Contractual Term (in Years), Exercisable 1 year 6 months    
FEB Plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Shares, Beginning balance 162,288    
Number of Shares, Exercised (59,153) (7,559) (62,366)
Number of Shares, Ending balance 103,135 162,288  
Number of Shares, Exercisable 103,135    
Weighted Average Exercise Price, Beginning balance $ 11.66    
Weighted Average Exercise Price, Exercised 11.14    
Weighted Average Exercise Price, Ending balance 11.95 $ 11.66  
Weighted Average Exercise Price, Exercisable $ 11.95    
Intrinsic Value, Outstanding $ 1,197 $ 1,836  
Intrinsic Value, Exercised 590    
Intrinsic Value, Exercisable $ 1,197    
Weighted Average Remaining Contractual Term (in Years) 1 year 10 months 24 days 2 years 6 months  
Weighted Average Remaining Contractual Term (in Years), Exercisable 1 year 10 months 24 days    
v3.24.0.1
Related Party Transactions - Additional Information (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Related Party    
Related Party Transaction [Line Items]    
Receivables outstanding from related parties $ 0 $ 0
v3.24.0.1
Regulatory Capital Requirements (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Total capital to risk weighted assets:    
Total capital to risk weighted assets, Actual Amount $ 1,123,568 $ 900,806
Total capital to risk weighted assets, Actual Ratio ( as a percentage) 0.1338 0.13
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount $ 671,576 $ 554,436
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.08 0.08
Tier 1 capital to risk weighted assets:    
Tier 1 capital to risk weighted assets, Actual Amount $ 956,027 $ 751,887
Tier 1 capital to risk weighted assets, Actual Ratio ( as a percentage) 0.1139 0.1085
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount $ 503,682 $ 415,827
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.06 0.06
Common Equity Tier 1 (CET1) to risk weighted assets:    
Common Equity Tier 1 (CET1) to risk weighted, Actual Amount $ 869,027 $ 706,887
Common Equity Tier 1 (CET1) to risk weighted, Actual Ratio ( as a percentage) 10.35% 10.20%
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Amount $ 377,762 $ 311,870
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 4.50% 4.50%
Tier 1 capital to average assets:    
Tier 1 capital to average, Actual Amount $ 956,027 $ 751,887
Tier 1 capital to average, Actual Ratio ( as a percentage) 0.1086 0.1029
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Amount $ 352,089 $ 292,258
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.04 0.04
Bank    
Total capital to risk weighted assets:    
Total capital to risk weighted assets, Actual Amount $ 1,085,915 $ 852,047
Total capital to risk weighted assets, Actual Ratio ( as a percentage) 0.1297 0.1234
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount $ 669,904 $ 552,507
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.08 0.08
Total capital to risk weighted assets, Minimum Amount To Be Well Capitalized Amount $ 837,380 $ 690,633
Total capital to risk weighted assets, Minimum Amount To Be Well Capitalized Ratio (as a percentage) 0.10 0.10
Tier 1 capital to risk weighted assets:    
Tier 1 capital to risk weighted assets, Actual Amount $ 993,375 $ 778,128
Tier 1 capital to risk weighted assets, Actual Ratio ( as a percentage) 0.1186 0.1127
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount $ 502,428 $ 414,380
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.06 0.06
Tier 1 capital to risk weighted assets, Minimum Amount To Be Well Capitalized Amount $ 669,904 $ 552,507
Tier 1 capital to risk weighted assets, Minimum Amount To Be Well Capitalized Ratio (asa percentage) 0.08 0.08
Common Equity Tier 1 (CET1) to risk weighted assets:    
Common Equity Tier 1 (CET1) to risk weighted, Actual Amount $ 993,375 $ 778,128
Common Equity Tier 1 (CET1) to risk weighted, Actual Ratio ( as a percentage) 11.86% 11.27%
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Amount $ 376,821 $ 310,785
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 4.50% 4.50%
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount To Be Well Capitalized Amount $ 544,297 $ 448,912
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount To Be Well Capitalized Ratio (as a percentage) 6.50% 6.50%
Tier 1 capital to average assets:    
Tier 1 capital to average, Actual Amount $ 993,375 $ 778,128
Tier 1 capital to average, Actual Ratio ( as a percentage) 0.113 0.1067
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Amount $ 351,735 $ 291,741
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) 0.04 0.04
Tier 1 capital to average, Minimum Amount To Be Well Capitalized Amount $ 439,669 $ 364,676
Tier 1 capital to average, Minimum Amount To Be Well Capitalized Ratio ( as a percentage) 0.05 0.05
v3.24.0.1
Regulatory Capital Requirements - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Capital Ratios Description The ratios above reflect the Company’s election to opt into the regulators’ joint CECL transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios reflect 50% of the CECL impact as of December 31, 2023 and 25% as of December 31, 2022.  
Bank | Trust Preferred Securities Interest and Preferred Dividends    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Proceeds from Dividends Received $ 35.0 $ 24.0
Federal Deposit Corporation And Federal Reserve Board    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Capital conservation buffer above the minimum capital requirements 5.85%  
Federal Deposit Corporation And Federal Reserve Board | Bank    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Capital conservation buffer above the minimum capital requirements 7.36%  
Federal Deposit Corporation And Federal Reserve Board | Rules Phased in beginning January 2016    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Additional capital conservation buffer requirement subsequent years ratio 2.50%  
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jul. 01, 2023
Dec. 31, 2022
Derivatives Fair Value [Line Items]      
Notional Amount $ 1,359,728   $ 1,102,024
Other Assets 56,923   65,342
Other Liabilities (19,345)   (17,817)
Cash Flow Hedges      
Derivatives Fair Value [Line Items]      
Notional Amount 650,000    
Other Assets 37,475    
Other Liabilities 0    
Interest Rate Swap | Cash Flow Hedges      
Derivatives Fair Value [Line Items]      
Notional Amount 42,000    
Other Assets 3,500    
Other Interest Rate Derivatives      
Derivatives Fair Value [Line Items]      
Notional Amount 706,126    
Other Assets 19,447    
Other Liabilities (19,345)    
Other Interest Rate Derivatives | Cash Flow Hedges      
Derivatives Fair Value [Line Items]      
Notional Amount 450,000    
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedges      
Derivatives Fair Value [Line Items]      
Notional Amount 650,000   550,000
Other Assets 37,475   47,249
Other Liabilities 0   0
Derivatives Not Designated As Hedging Instruments | Other Credit Derivatives      
Derivatives Fair Value [Line Items]      
Notional Amount 3,602   6,678
Other Assets 1   0
Other Liabilities 0   0
Derivatives Not Designated As Hedging Instruments | Interest Rate Swap      
Derivatives Fair Value [Line Items]      
Notional Amount   $ 67,700  
Derivatives Not Designated As Hedging Instruments | Other Interest Rate Derivatives      
Derivatives Fair Value [Line Items]      
Notional Amount 706,126   545,346
Other Assets 19,447   18,093
Other Liabilities $ (19,345)   $ (17,817)
v3.24.0.1
Derivative Instruments and Hedge Activities - Additional Information (Details) - USD ($)
 12 Months Ended
Jul. 01, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]        
Derivative notional amount   $ 1,359,728,000 $ 1,102,024,000  
Other Assets   56,923,000 65,342,000  
Interest recorded   17,161,000 9,322,000 $ 1,663,000
Unrealized gain (loss) to be reclassified as an decrease to interest expense during the next twelve months   16,600,000    
Fair value of derivatives net liability position   19,300,000    
Offsetting derivative positions   925,000 43,000  
Interest Rate Swap        
Derivative [Line Items]        
Net gain on termination of interest rate swap agreements $ 6,000,000      
Interest recorded   15,300,000 1,000,000  
Other Interest Rate Derivatives        
Derivative [Line Items]        
Derivative notional amount   706,126,000    
Other Assets   $ 19,447,000    
Weighted average pay rates   4.30%    
Derivative maturity date, start year   2024-03    
Derivative maturity date, end year   2033-03    
Derivative instruments transaction fees   $ 617,000 2,000,000 $ 912,000
Weighted average receive rates   5.79%    
Other Credit Derivatives        
Derivative [Line Items]        
Derivative notional amount   $ 1,200,000 6,700,000  
Notional amount of nonderivative instruments   2,400,000    
Cash Flow Hedges        
Derivative [Line Items]        
Derivative notional amount   650,000,000    
Other Assets   $ 37,475,000    
Weighted average pay rates   8.50%    
Weighted average receive rates   1.04%    
Cash Flow Hedges | Interest Rate Swap        
Derivative [Line Items]        
Derivative notional amount   $ 42,000,000    
Other Assets   3,500,000    
Cash Flow Hedges | Fixed interest rate swap        
Derivative [Line Items]        
Derivative notional amount   $ 100,000,000    
Weighted average pay rates   5.32%    
Weighted average receive rates   7.44%    
Cash Flow Hedges | Other Interest Rate Derivatives        
Derivative [Line Items]        
Derivative notional amount   $ 450,000,000    
Derivatives Not Designated As Hedging Instruments        
Derivative [Line Items]        
Fair value of derivative assets and liabilities 6,200,000      
Derivatives Not Designated As Hedging Instruments | Interest Rate Swap        
Derivative [Line Items]        
Derivative notional amount $ 67,700,000      
Derivatives Not Designated As Hedging Instruments | Other Interest Rate Derivatives        
Derivative [Line Items]        
Derivative notional amount   706,126,000 545,346,000  
Other Assets   19,447,000 18,093,000  
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate Swap        
Derivative [Line Items]        
Derivative notional amount   650,000,000 550,000,000  
Other Assets   37,475,000 47,249,000  
Remaining balance in accumulated other comprehensive income   4,200,000    
Remaining unamortized balance   3,700,000 $ 15,000  
Terminated swaps   100,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate Swaps Effective in May 2023        
Derivative [Line Items]        
Terminated swaps   50,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate Swaps Effective in June 2023        
Derivative [Line Items]        
Terminated swaps   50,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Fixed interest rate swap        
Derivative [Line Items]        
Derivative notional amount   200,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Fixed interest rate swap | Adjustable Rate Loans        
Derivative [Line Items]        
Derivative notional amount   200,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate Swap Two Effective Hedges        
Derivative [Line Items]        
Derivative notional amount   100,000,000    
Designated as Hedging Instrument | Cash Flow Hedges | Forward-Starting Interest Rate Swaps Due August 2024        
Derivative [Line Items]        
Derivative notional amount   50,000,000    
Deposits And Other Borrowings | Designated as Hedging Instrument | Cash Flow Hedges | Fixed interest rate swap        
Derivative [Line Items]        
Derivative notional amount   $ 450,000,000    
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Cash Flow Hedges (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Notional Amount $ 1,359,728 $ 1,102,024
Derivative assets fair value 56,923 65,342
Derivative liabilities fair value 19,345 $ 17,817
Cash Flow Hedges    
Derivative [Line Items]    
Notional Amount 650,000  
Derivative assets fair value 37,475  
Derivative liabilities fair value $ 0  
Weighted average remaining maturity 3 years  
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]      
Amount of Gain Recognized in OCI $ 9,605 $ 43,977 $ 4,140
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax    
Interest Rate Swap      
Derivative [Line Items]      
Amount of Gain Recognized in OCI $ 9,605 43,977  
Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense 15,336 1,022  
Amount of Gain (Loss) Recognized in Other Non-Interest Income $ 0 $ 0  
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Other Interest Rate Derivatives (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Notional Amount $ 1,359,728 $ 1,102,024
Derivative assets fair value 56,923 65,342
Derivative liabilities fair value 19,345 $ 17,817
Other Interest Rate Derivatives    
Derivative [Line Items]    
Notional Amount 706,126  
Derivative assets fair value 19,447  
Derivative liabilities fair value $ 19,345  
Weighted average pay rates 4.30%  
Weighted average receive rates 5.79%  
Weighted average maturity 4 years 7 months 6 days  
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]      
Amounts relating to derivative instruments, not designated in hedging relationship $ (174) $ 707 $ 553
Other Credit Derivatives      
Derivative [Line Items]      
Amounts relating to derivative instruments, not designated in hedging relationship 0 5 12
Other Interest Rate Derivatives      
Derivative [Line Items]      
Amounts relating to derivative instruments, not designated in hedging relationship $ (174) $ 702 $ 541
v3.24.0.1
Derivative Instruments and Hedge Activities - Summary of Company's Interest Rate Derivative and Offsetting Positions (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative assets fair value $ 56,923,000 $ 65,342,000
Less: Amounts offset in the Consolidated Statements of Financial Condition 0 0
Net amount presented in the Consolidated Statements of Financial Condition 56,923,000 65,342,000
Gross amounts not offset in the Consolidated Statements of Financial Condition    
Offsetting derivative positions (925,000) (43,000)
Collateral posted (54,930,000) (64,370,000)
Net credit exposure 1,068,000 929,000
Derivative liabilities fair value (19,345,000) (17,817,000)
Less: Amounts offset in the Consolidated Statements of Financial Condition 0 0
Net amount presented in the Consolidated Statements of Financial Condition (19,345,000) (17,817,000)
Gross amounts not offset in the Consolidated Statements of Financial Condition    
Offsetting derivative positions 925,000 43,000
Collateral posted 0 0
Net credit exposure $ (18,420,000) $ (17,774,000)
v3.24.0.1
Parent Company Only Condensed Financial Statements - Statements of Financial Condition (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
ASSETS        
Other assets $ 152,258 $ 131,815    
Total assets 8,881,967 7,362,941    
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Line of credit 11,250 0    
Term Loan 18,333 0    
Subordinated notes, net 73,866 73,691    
Junior subordinated debentures issued to capital trusts, net 70,452 37,338    
Accrued expenses and other liabilities 138,808 131,691    
Stockholders' equity 990,151 765,816 $ 836,382 $ 805,464
Total liabilities and stockholders’ equity 8,881,967 7,362,941    
Company        
ASSETS        
Cash 39,461 25,275    
Investment in banking subsidiary 1,112,514 835,538    
Other assets 13,893 16,924    
Total assets 1,165,868 877,737    
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Line of credit 11,250 0    
Term Loan 18,333 0    
Subordinated notes, net 73,866 73,691    
Junior subordinated debentures issued to capital trusts, net 70,452 37,338    
Accrued expenses and other liabilities 1,816 892    
Stockholders' equity 990,151 765,816    
Total liabilities and stockholders’ equity $ 1,165,868 $ 877,737    
v3.24.0.1
Parent Company Only Condensed Financial Statements - Statements of Financial Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
INCOME      
Other Interest and Dividend Income $ 7,693 $ 2,757 $ 2,332
Other noninterest income 6,194 7,836 5,772
EXPENSES      
Interest expense 148,857 36,229 12,539
Other non-interest expense 10,943 9,174 10,531
Benefit for income taxes 37,802 26,729 31,427
NET INCOME 107,878 87,954 92,785
Company      
INCOME      
Dividends from subsidiary 35,000 24,000 24,000
Other Interest and Dividend Income (247) (139) 0
Change in fair value of equity securities, net 0 0 110
Other noninterest income 12 5 0
Total income 34,765 23,866 24,110
EXPENSES      
Interest expense 11,495 7,149 6,412
Other non-interest expense 3,978 3,045 1,814
Total expenses 15,473 10,194 8,226
Income before provision for income taxes and equity in undistributed income of subsidiary 19,292 13,672 15,884
Benefit for income taxes (4,107) (2,633) (2,022)
Income before equity in undistributed income of subsidiary 23,399 16,305 17,906
Equity in undistributed income of subsidiary 84,479 71,649 74,879
NET INCOME $ 107,878 $ 87,954 $ 92,785
v3.24.0.1
Parent Company Only Condensed Financial Statements - Statements of Financial Cash Flow (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES      
Net Income (Loss) $ 107,878 $ 87,954 $ 92,785
Adjustments to reconcile net income to net cash from operating activities:      
Share-based compensation expense 6,715 5,334 4,018
Amortization of subordinated debt issuance cost 175 174 175
Accretion of junior subordinated debentures discount 453 432 455
Net cash provided by operating activities 166,067 220,333 74,426
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchases of securities available-for-sale (185,527) (104,083) (645,461)
Net cash used in investing activities (336,241) (819,858) (236,048)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from revolving line of credit 15,000 0 0
Repayments of revolving line of credit (3,750) 0 0
Proceeds from term loan 20,000 0 0
Dividends paid on preferred stock 0 (196) (783)
Dividends paid on common stock (14,585) (13,401) (11,269)
Proceeds from issuance of common stock, net 1,791 1,506 2,140
Repurchase of preferred stock 0 (10,438) 0
Repurchase of common stock 0 (17,274) (28,867)
Net cash provided by financing activities 216,957 620,947 236,133
NET INCREASE IN CASH AND CASH EQUIVALENTS 46,783 21,422 74,511
CASH AND CASH EQUIVALENTS, beginning of period 179,353 157,931 83,420
CASH AND CASH EQUIVALENTS, end of period 226,136 179,353 157,931
Company      
CASH FLOWS FROM OPERATING ACTIVITIES      
Net Income (Loss) 107,878 87,954 92,785
Adjustments to reconcile net income to net cash from operating activities:      
Equity in undistributed income of subsidiary (84,479) (71,649) (74,879)
Share-based compensation expense 6,715 5,334 4,018
Change in fair value of equity securities, net 0 0 (110)
Amortization of subordinated debt issuance cost 175 174 175
Accretion of junior subordinated debentures discount 453 432 455
Changes in other assets and other liabilities 7,498 (14,531) (6,974)
Net cash provided by operating activities 38,240 7,714 15,470
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchases of securities available-for-sale (9,941) (250) (1,876)
Net cash paid in acquisition of business (30,902) 0 0
Net cash used in investing activities (40,843) (250) (1,876)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from revolving line of credit 15,000 0 0
Repayments of revolving line of credit (3,750) 0 0
Proceeds from term loan 20,000 0 0
Repayments of term loan (1,667) 0 0
Dividends paid on preferred stock 0 (196) (783)
Dividends paid on common stock (14,585) (13,401) (11,269)
Proceeds from issuance of common stock, net 1,791 1,506 2,140
Repurchase of preferred stock 0 (10,438) 0
Repurchase of common stock 0 (17,274) (28,867)
Net cash provided by financing activities 16,789 (39,803) (38,779)
NET INCREASE IN CASH AND CASH EQUIVALENTS 14,186 (32,339) (25,185)
CASH AND CASH EQUIVALENTS, beginning of period 25,275 57,614 82,799
CASH AND CASH EQUIVALENTS, end of period $ 39,461 $ 25,275 $ 57,614
v3.24.0.1
Earnings per Share - Additional Information (Details) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share Basic [Line Items]      
Shares outstanding 40,045,208 36,972,972 37,609,723
Non-vested share-based payment awards 0 0 0
Common Stock      
Earnings Per Share Basic [Line Items]      
Shares outstanding 871,699 930,852 1,507,745
Restricted Stock Award      
Earnings Per Share Basic [Line Items]      
Shares outstanding 627,271 581,337 542,520
Employee Stock Option      
Earnings Per Share Basic [Line Items]      
Shares outstanding 0 0 0
v3.24.0.1
Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Net Income (Loss) $ 107,878 $ 87,954 $ 92,785
Dividends on preferred shares 0 196 783
Net income available to common stockholders $ 107,878 $ 87,758 $ 92,002
Weighted-average common stock outstanding:      
Weighted-average common stock outstanding (basic) 40,045,208 36,972,972 37,609,723
Incremental shares 400,345 503,148 759,344
Weighted-average common stock outstanding (dilutive) 40,445,553 37,476,120 38,369,067
Basic earnings per common share $ 2.69 $ 2.37 $ 2.45
Diluted earnings per common share $ 2.67 $ 2.34 $ 2.4
v3.24.0.1
Stockholders' Equity - Summary of Preferred and Common Stock (Details) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Equity [Abstract]    
Par value per share $ 0.01 $ 0.01
Shares authorized 25,000,000 25,000,000
Shares issued 0 0
Shares outstanding 0 0
Common stock, voting par value $ 0.01 $ 0.01
Common stock, voting shares authorized 150,000,000 150,000,000
Common stock, voting shares issued 45,714,241 39,518,702
Shares outstanding 43,764,056 37,492,775
Treasury shares 1,950,185 2,025,927
v3.24.0.1
Stockholders' Equity - Additional Information (Details) - USD ($)
 12 Months Ended
Jan. 23, 2024
Feb. 15, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2016
Dec. 06, 2023
Dec. 12, 2022
Jul. 27, 2021
Dec. 10, 2020
Class Of Stock [Line Items]                    
Dividends declared and paid     $ 0 $ 196,000 $ 783,000          
Aggregate number of shares authorized to repurchase             1,250,000 1,250,000 1,250,000 1,250,000
Approximate percentage of shares authorized to be repurchased             2.90%      
Cash dividends declared     $ 14,636,000 $ 13,543,000 $ 11,424,000          
Cash dividends declared per share     $ 0.36 $ 0.36 $ 0.30          
Preferred stock, shares outstanding     0 0            
Common stock, par value     $ 0.01 $ 0.01            
Number of shares purchased     0 689,068 1,331,708          
Common stock, voting shares issued     45,714,241 39,518,702            
Repurchase of stock, value       $ 17,274,000 $ 28,867,000          
Common Stock                    
Class Of Stock [Line Items]                    
Dividends declared and paid     $ 14,600,000 $ 13,400,000 $ 11,300,000          
Number of shares purchased       (689,068) (1,331,708)          
Subsequent Event                    
Class Of Stock [Line Items]                    
Dividend payable date Feb. 20, 2024                  
Dividends record date Feb. 06, 2024                  
Dividends payable $ 90.00                  
Series B Preferred Stock                    
Class Of Stock [Line Items]                    
Preferred stock, dividend rate, percentage           7.50%        
Preferred stock fixed dividend close date           Dec. 30, 2021        
Preferred stock redemption price per share   $ 1,000                
Dividends, Preferred Stock, Total   $ 10,600,000                
Dividends declared and paid       $ 196,000 $ 783,000          
Preferred stock, shares outstanding   10,438                
Preferred Stock, Redemption Date   Mar. 31, 2022                
v3.24.0.1
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) - Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance $ 765,816 $ 836,382 $ 805,464
Other comprehensive income (loss), net of tax 17,433 (109,248) (26,349)
Ending balance 990,151 765,816 836,382
Unrealized Gains (Losses) on Cash Flow Hedges      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance 34,315 2,817 (305)
Other comprehensive income (loss), net of tax (4,184) 31,498 3,122
Ending balance 30,131 34,315 2,817
Unrealized Gains (Losses) on Available-for-Sale Securities      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (151,865) (11,119) 18,352
Other comprehensive income (loss), net of tax 21,617 (140,746) (29,471)
Ending balance (130,248) (151,865) (11,119)
Accumulated Other Comprehensive Income (Loss)      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (117,550) (8,302) 18,047
Other comprehensive income (loss), net of tax 17,433 (109,248) (26,349)
Ending balance $ (100,117) $ (117,550) $ (8,302)
v3.24.0.1
Selected Quarterly Financial Data (unaudited) - Schedule of Selected Quarterly Financial Data (unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest and dividend income         $ 479,478 $ 301,559 $ 248,926
Interest expense         148,857 36,229 12,539
Net interest income         330,621 265,330 236,387
Provision/(recapture) for credit losses         32,220 22,674 1,457
Net interest income after provision for credit losses         298,968 241,451 235,414
Non-interest income         56,315 57,314 74,253
Non-interest expense         209,603 184,082 185,455
INCOME BEFORE PROVISION FOR INCOME TAXES         145,680 114,683 124,212
PROVISION FOR INCOME TAXES         37,802 26,729 31,427
NET INCOME         107,878 87,954 92,785
Dividends on preferred shares         0 196 783
INCOME AVAILABLE TO COMMON STOCKHOLDERS         $ 107,878 $ 87,758 $ 92,002
Basic earnings per common share         $ 2.69 $ 2.37 $ 2.45
Diluted earnings per common share         $ 2.67 $ 2.34 $ 2.4
As Reported [Member]              
Interest and dividend income $ 93,804 $ 79,903 $ 66,546 $ 61,818      
Interest expense 17,200 11,028 4,919 3,082      
Net interest income 76,604 68,875 61,627 58,736      
Provision/(recapture) for credit losses 5,826 4,176 5,908 4,995      
Net interest income after provision for credit losses 70,778 64,699 55,719 53,741      
Non-interest income 11,455 11,992 14,161 19,426      
Non-interest expense 50,500 46,178 43,773 44,555      
INCOME BEFORE PROVISION FOR INCOME TAXES 31,733 30,513 26,107 28,612      
PROVISION FOR INCOME TAXES 7,366 7,857 5,824 6,301      
NET INCOME 24,367 22,656 20,283 22,311      
Dividends on preferred shares 0 0 0 196      
INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 24,367 $ 22,656 $ 20,283 $ 22,115      
Basic earnings per common share $ 0.66 $ 0.61 $ 0.55 $ 0.6      
Diluted earnings per common share $ 0.65 $ 0.61 $ 0.54 $ 0.58      
Adjustment [Member]              
Interest and dividend income   $ (240) $ 133 $ (405)      
Interest expense   0 0 0      
Net interest income   (240) 133 (405)      
Provision/(recapture) for credit losses   3,032 (1,622) 1,564      
Net interest income after provision for credit losses   (3,272) 1,755 (1,969)      
Non-interest income   51 112 117      
Non-interest expense   (137) (188) (599)      
INCOME BEFORE PROVISION FOR INCOME TAXES   (3,084) 2,055 (1,253)      
PROVISION FOR INCOME TAXES   (837) 558 (340)      
NET INCOME   (2,247) 1,497 (913)      
Dividends on preferred shares   0 0 0      
INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ (2,247) $ 1,497 $ (913)      
Basic earnings per common share   $ (0.06) $ 0.04 $ (0.03)      
Diluted earnings per common share   $ (0.06) $ 0.04 $ (0.02)      
Recast [Member]              
Interest and dividend income   $ 79,663 $ 66,679 $ 61,413      
Interest expense   11,028 4,919 3,082      
Net interest income   68,635 61,760 58,331      
Provision/(recapture) for credit losses   7,208 4,286 6,559      
Net interest income after provision for credit losses   61,427 57,474 51,772      
Non-interest income   12,043 14,273 19,543      
Non-interest expense   46,041 43,585 43,956      
INCOME BEFORE PROVISION FOR INCOME TAXES   27,429 28,162 27,359      
PROVISION FOR INCOME TAXES   7,020 6,382 5,961      
NET INCOME   20,409 21,780 21,398      
Dividends on preferred shares   0 0 196      
INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 20,409 $ 21,780 $ 21,202      
Basic earnings per common share   $ 0.55 $ 0.59 $ 0.57      
Diluted earnings per common share   $ 0.55 $ 0.58 $ 0.56      
v3.24.0.1
Selected Quarterly Financial Data (unaudited) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2022
Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]    
Retroactive equity adjustment   $ 10.1
Adjustment to earnings (net of tax) $ 1.7