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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment InformationOur operations are conducted through two operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses are incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. Operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationship of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.
The Banking segment originates loans and provides deposits and fee based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment.
The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment.
Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate.
Revenues are comprised of net interest income before the provision (benefit) for credit losses and noninterest income. Noninterest expenses are allocated to each operating segment. Provision for credit losses is primarily allocated to the Banking segment. Allocation methodologies may be subject to periodic adjustment as management systems evolve and/or the business or product lines within the segments change.
Significant segment totals are reconciled to the financial statements as follows for the three months ended September 30,:
BankingMortgage OperationsCorporateTotal Segments
2023
Summary of Operations
Net interest income (loss)$73,496 $1,171 $(1,257)$73,410 
Provision (benefit) for credit losses6,319 (2,429)— 3,890 
Noninterest income:
Service charges on deposit accounts5,475 — — 5,475 
Credit and debit card fees2,996 — — 2,996 
Trust and investment advisory fees1,398 — — 1,398 
Income from mortgage banking services, net(526)7,939 — 7,413 
Other noninterest income1,368 — — 1,368 
Total noninterest income10,711 7,939 — 18,650 
Noninterest expense:
Salary and employee benefits27,701 5,844 423 33,968 
Occupancy and equipment7,449 707 60 8,216 
Other noninterest expenses9,990 3,820 182 13,992 
Total noninterest expense45,140 10,371 665 56,176 
Income (loss) before income taxes$32,748 $1,168 $(1,922)$31,994 
Other Information
Depreciation expense$1,567 $57 $— $1,624 
Identifiable assets$6,824,853 $871,032 $60,990 $7,756,875 
BankingMortgage OperationsCorporateTotal Segments
2022
Summary of Operations
Net interest income (loss)$68,159 $1,492 $(1,165)$68,486 
Provision for credit losses3,223 527 — 3,750 
Noninterest income:
Service charges on deposit accounts4,807 — — 4,807 
Credit and debit card fees3,103 — — 3,103 
Trust and investment advisory fees1,552 — — 1,552 
Income from mortgage banking services, net(701)14,486 — 13,785 
Other noninterest income1,706 — — 1,706 
Total noninterest income10,467 14,486 — 24,953 
Noninterest expense:
Salary and employee benefits23,210 8,922 376 32,508 
Occupancy7,190 988 38 8,216 
Other noninterest expenses11,146 3,314 364 14,824 
Total noninterest expense41,546 13,224 778 55,548 
Income (loss) before income taxes$33,857 $2,227 $(1,943)$34,141 
Other Information
Depreciation expense$1,839 $81 $— $1,920 
Identifiable assets$6,315,984 $693,473 $43,460 $7,052,917 
Significant segment totals are reconciled to the financial statements as follows for the nine months ended September 30,:
BankingMortgage OperationsCorporateTotal Segments
2023
Summary of Operations
Net interest income (loss)$220,608 $4,532 $(3,778)$221,362 
Provision (benefit) for credit losses12,382 (710)— 11,672 
Noninterest income:
Service charges on deposit accounts15,848 — — 15,848 
Credit and debit card fees9,033 1 — 9,034 
Trust and investment advisory fees4,337 — — 4,337 
Income from mortgage banking services, net(1,126)27,627 — 26,501 
Other noninterest income6,151 — — 6,151 
Total noninterest income34,243 27,628 — 61,871 
Noninterest expense:
Salary and employee benefits81,667 19,868 1,538 103,073 
Occupancy and equipment22,105 2,088 145 24,338 
Other noninterest expenses30,293 11,155 1,626 43,074 
Total noninterest expense134,065 33,111 3,309 170,485 
Income (loss) before income taxes$108,404 $(241)$(7,087)$101,076 
Other Information
Depreciation expense$4,870 $177 $— $5,047 
Identifiable assets$6,824,853 $871,032 $60,990 $7,756,875 
BankingMortgage OperationsCorporateTotal Segments
2022
Summary of Operations
Net interest income (loss)$167,606 $5,193 $(4,443)$168,356 
Provision for credit losses9,853 2,597 — 12,450 
Noninterest income:
Service charges on deposit accounts13,111 — — 13,111 
Credit and debit card fees8,508 — — 8,508 
Trust and investment advisory fees5,408 — — 5,408 
Income from mortgage banking services, net(1,972)41,989 — 40,017 
Other noninterest income3,913 (9)— 3,904 
Total noninterest income28,968 41,980 — 70,948 
Noninterest expense:
Salary and employee benefits69,880 30,854 1,247 101,981 
Occupancy19,937 2,826 39 22,802 
Other noninterest expenses46,203 10,439 2,258 58,900 
Total noninterest expense136,020 44,119 3,544 183,683 
Income (loss) before income taxes$50,701 $457 $(7,987)$43,171 
Other Information
Depreciation expense$5,011 $294 $— $5,305 
Identifiable assets$6,315,984 $693,473 $43,460 $7,052,917