Loans 90 days or more past due and still accruing interest
—
—
—
—
—
Subtotal
9,026
7,792
7,250
5,974
5,355
Less: Government guaranteed loans
1,940
1,790
2,102
1,489
1,665
Total non-performing loans
7,086
6,002
5,148
4,485
3,690
Other real estate and repossessed assets
413
938
781
945
1,059
Total non-performing assets
$
7,499
$
6,940
$
5,929
$
5,430
$
4,749
As a percent of Portfolio Loans
Non-performing loans
0.17
%
0.15
%
0.13
%
0.12
%
0.10
%
Allowance for credit losses
1.47
1.47
1.46
1.46
1.47
Non-performing assets to total assets
0.14
0.13
0.11
0.10
0.09
Allowance for credit losses as a percent of non-performing loans
847.23
989.32
1,115.85
1,253.98
1,526.10
Allowance for credit losses
Three months ended March 31,
2025
2024
Loans
Securities
Unfunded Commitments
Loans
Securities
Unfunded Commitments
(Dollars in thousands)
Balance at beginning of period
$
59,379
$
132
$
5,131
$
54,658
$
157
$
5,504
Additions (deductions)
Provision for credit losses
724
(3)
—
1,871
(1,127)
—
Recoveries credited to allowance
550
—
—
596
1,125
—
Assets charged against the allowance
(618)
—
—
(812)
—
—
Additions included in non-interest expense
—
—
196
—
—
(652)
Balance at end of period
$
60,035
$
129
$
5,327
$
56,313
$
155
$
4,852
Net loans charged (recovered) against the allowance to average Portfolio Loans
0.01
%
0.02
%
1
Capitalization
March 31, 2025
December 31, 2024
(In thousands)
Subordinated debt
$
39,605
$
39,586
Subordinated debentures
39,813
39,796
Amount not qualifying as regulatory capital
(829)
(810)
Amount qualifying as regulatory capital
78,589
78,572
Shareholders’ equity
Common stock
318,365
318,777
Retained earnings
215,995
205,853
Accumulated other comprehensive income (loss)
(67,083)
(69,944)
Total shareholders’ equity
467,277
454,686
Total capitalization
$
545,866
$
533,258
Non-Interest Income
Three months ended
March 31, 2025
December 31, 2024
March 31, 2024
(In thousands)
Interchange income
$
3,127
$
3,294
$
3,151
Service charges on deposit accounts
2,814
2,976
2,872
Net gains (losses) on assets
Mortgage loans
2,303
1,705
1,364
Equity securities at fair value
—
—
—
Securities
(330)
(14)
(269)
Mortgage loan servicing, net
(636)
7,761
2,725
Investment and insurance commissions
754
744
804
Bank owned life insurance
297
268
181
Other
2,095
2,387
1,733
Total non-interest income
$
10,424
$
19,121
$
12,561
Capitalized Mortgage Loan Servicing Rights
Three months ended March 31,
2025
2024
(In thousands)
Balance at beginning of period
$
46,796
$
42,243
Originated servicing rights capitalized
855
828
Change in fair value
(2,424)
506
Sale of originated servicing rights (1)
(12,962)
—
Loss on sale of originated servicing rights (1)
(94)
—
Balance at end of period
$
32,171
$
43,577
(1) On January 31, 2025 we sold $931.6 million of mortgage loan servicing rights (26.3% of total servicing portfolio) and transferred the servicing on March 3, 2025. This sale represented approximately $13.1 million (27.9%) of the total capitalized mortgage loan servicing right asset.
2
Mortgage Loan Activity
Three months ended
March 31, 2025
December 31, 2024
March 31, 2024
(Dollars in thousands)
Mortgage loans originated
$
107,779
$
134,144
$
93,994
Mortgage loans sold
82,618
106,222
80,818
Net gains on mortgage loans
2,303
1,705
1,364
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")
2.79
%
1.61
%
1.69
%
Fair value adjustments included in the Loan Sales Margin
0.88
%
(0.32)
%
0.48
%
Non-Interest Expense
Three months ended
March 31, 2025
December 31, 2024
March 31, 2024
(In thousands)
Compensation
$
13,197
$
13,458
$
13,277
Performance-based compensation
3,441
5,351
3,476
Payroll taxes and employee benefits
3,745
4,077
4,017
Compensation and employee benefits
20,383
22,886
20,770
Data processing
3,729
3,688
3,255
Occupancy, net
2,223
1,953
2,074
Interchange expense
1,119
1,131
1,097
Furniture, fixtures and equipment
885
928
954
Advertising
861
1,198
491
Loan and collection
786
606
512
FDIC deposit insurance
711
729
782
Communications
591
462
615
Legal and professional
479
849
486
Taxes, licenses and fees
326
311
261
Director fees
232
240
237
Costs (recoveries) related to unfunded lending commitments
196
303
(652)
Amortization of intangible assets
122
129
129
Provision for loss reimbursement on sold loans
(11)
2
3
Net (gains) losses on other real estate and repossessed assets
(66)
—
(76)
Other
1,696
1,572
1,255
Total non-interest expense
$
34,262
$
36,987
$
32,193
3
Average Balances and Tax Equivalent Rates
Three Months Ended March 31,
2025
2024
Average Balance
Interest
Rate (2)
Average Balance
Interest
Rate (2)
(Dollars in thousands)
Assets
Taxable loans
$
4,053,593
$
57,685
5.74
%
$
3,801,985
$
54,955
5.80
%
Tax-exempt loans (1)
7,348
105
5.78
8,541
111
5.23
Taxable securities
619,764
4,036
2.60
680,133
5,251
3.09
Tax-exempt securities (1)
263,912
3,200
4.85
319,007
3,548
4.45
Interest bearing cash
117,706
1,291
4.45
84,182
1,143
5.46
Other investments
16,273
279
6.85
16,821
298
7.13
Interest Earning Assets
5,078,596
66,596
5.28
4,910,669
65,306
5.34
Cash and due from banks
57,464
55,550
Other assets, net
241,962
235,233
Total Assets
$
5,378,022
$
5,201,452
Liabilities
Savings and interest-bearing checking
2,836,290
12,840
1.84
2,633,519
13,367
2.04
Time deposits
871,377
8,115
3.78
864,672
9,443
4.39
Other borrowings
92,185
1,504
6.58
129,255
2,119
6.59
Interest Bearing Liabilities
3,799,852
22,459
2.40
%
3,627,446
24,929
2.76
Non-interest bearing deposits
1,007,665
1,063,454
Other liabilities
109,214
107,327
Shareholders’ equity
461,291
403,225
Total liabilities and shareholders’ equity
$
5,378,022
$
5,201,452
Net Interest Income
$
44,137
$
40,377
Net Interest Income as a Percent of Average Interest Earning Assets
3.49
%
3.30
%
(1)
Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)
Annualized
4
Commercial Loan Portfolio Analysis as of March 31, 2025
Total Commercial Loans
Watch Credits
Percent of Loan Category in Watch Credit
Loan Category
All Loans
Performing
Non-accrual
Total
(Dollars in thousands)
Land
$
9,259
$
—
$
—
$
—
—
%
Land Development
23,303
—
—
—
—
Construction
135,788
16,903
—
16,903
12.4
Income Producing
688,915
24,038
—
24,038
3.5
Owner Occupied
590,885
10,220
46
10,266
1.7
Total Commercial Real Estate Loans
$
1,448,150
$
51,161
$
46
$
51,207
3.5
Other Commercial Loans
$
544,037
$
32,042
81
$
32,123
5.9
Total non-performing commercial loans
$
127
Commercial Loan Portfolio Analysis as of December 31, 2024