Summit(SMMF) - 2024 Q1 - Quarterly Results

markdown [Executive Summary & Key Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Key%20Highlights) Summit Financial Group reported strong Q1 2024 earnings, driven by operational execution and loan growth, with strategic merger approvals and robust financial performance [First Quarter 2024 Earnings Overview](index=1&type=section&id=1.1%20First%20Quarter%202024%20Earnings%20Overview) Summit Financial Group reported strong first-quarter 2024 earnings, driven by solid operational execution and loan growth, with net income applicable to common shares increasing significantly year-over-year and modestly quarter-over-quarter, reflecting a stable net interest margin and strong efficiency First Quarter 2024 Earnings Summary | Metric | Q1 2024 (in millions) | Q4 2023 (in millions) | Q1 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :-------------------- | :------------- | :------------- | | Net Income Applicable to Common Shares | $16.8 | $16.4 | $13.9 | +21.2 | +2.4 | | Diluted EPS | $1.14 | $1.11 | $1.08 | +5.6 | +2.7 | - The CEO highlighted a strong start to the year with solid earnings, a stable top quartile peer net interest margin, an enviable efficiency ratio, and best-in-class return on tangible common equity[3](index=3&type=chunk) [Strategic Developments & Financial Highlights](index=1&type=section&id=1.2%20Strategic%20Developments%20%26%20Financial%20Highlights) The company achieved key strategic milestones, including regulatory approvals for its merger with Burke & Herbert, and demonstrated robust financial performance with increases in tangible book value per common share, loans, and core deposits - The pending merger of equals with Burke & Herbert Financial Services Corp. has received all required regulatory approvals or waivers and is expected to close on May 3, 2024[4](index=4&type=chunk) Tangible Book Value Per Common Share | Metric | Q1 2024 (in $) | Q4 2023 (in $) | Change (in $) | | :----------------------------------- | :------------- | :------------- | :------------ | | Tangible Book Value Per Common Share | $24.91 | $23.89 | +$1.02 (4.3%) | - Total loans (excluding mortgage warehouse lines of credit and acquired loans) increased by **0.48%** (1.93% annualized) quarter-over-quarter and **6.7%** year-over-year[10](index=10&type=chunk) - Core deposits experienced a modest increase of **0.91%** (3.63% annualized) from the linked quarter[10](index=10&type=chunk) [Results from Operations](index=2&type=section&id=2.%20Results%20from%20Operations) This section details the company's net interest income, noninterest income, noninterest expense, and efficiency ratio, reflecting operational performance [Net Interest Income and Margin](index=2&type=section&id=2.1%20Net%20Interest%20Income%20and%20Margin) Net interest income showed strong year-over-year growth but a slight quarter-over-quarter decrease, with the net interest margin remaining stable Net Interest Income and Margin Performance | Metric | Q1 2024 (in millions) | Q4 2023 (in millions) | Q1 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :---------------- | :-------------------- | :-------------------- | :-------------------- | :------------- | :------------- | | Net Interest Income | $39.9 | $40.8 | $34.2 | +16.8 | -2.1 | | Net Interest Margin | 3.75 | 3.76 | 3.83 | -2.1 | -0.01 | [Noninterest Income](index=2&type=section&id=2.2%20Noninterest%20Income) Noninterest income increased year-over-year but decreased quarter-over-quarter, influenced by fluctuations in securities gains/losses and equity investments Noninterest Income Summary | Metric | Q1 2024 (in millions) | Q4 2023 (in millions) | Q1 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :------------------------- | :-------------------- | :-------------------- | :-------------------- | :------------- | :------------- | | Total Noninterest Income | $5.08 | $5.80 | $4.39 | +15.8 | -12.4 | | Net Realized Losses on Debt Securities | ($0.094) | $0.015 | ($0.059) | +59.3 | -726.7 | | Net Gains on Equity Investments | $0.040 | $0.365 | $0.045 | -11.1 | -89.0 | [Noninterest Expense](index=2&type=section&id=2.3%20Noninterest%20Expense) Total noninterest expense decreased quarter-over-quarter but increased year-over-year, primarily due to higher salary and benefit expenses from an acquisition and increased health insurance premiums, while acquisition-related expenses significantly declined Noninterest Expense Summary | Metric | Q1 2024 (in millions) | Q4 2023 (in millions) | Q1 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :------------------------ | :-------------------- | :-------------------- | :-------------------- | :------------- | :------------- | | Total Noninterest Expense | $23.0 | $23.9 | $19.4 | +18.3 | -4.0 | | Salaries and Employee Benefits | $12.1 | $11.4 | $10.8 | +11.6 | +6.1 | | Acquisition-related Expenses | $0.053 | $0.839 | $0.331 | -84.0 | -93.7 | - The year-over-year increase in salary and benefit expenses was primarily due to the PSB acquisition and higher group health insurance premiums[7](index=7&type=chunk) [Efficiency Ratio](index=2&type=section&id=2.4%20Efficiency%20Ratio) The efficiency ratio saw a slight increase both quarter-over-quarter and year-over-year, indicating a marginal shift in resource utilization Efficiency Ratio Performance | Metric | Q1 2024 (%) | Q4 2023 (%) | Q1 2023 (%) | YoY Change (%) | QoQ Change (%) | | :-------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Efficiency Ratio | 48.29 | 47.33 | 48.00 | +0.6 | +2.0 | [Balance Sheet Analysis](index=3&type=section&id=3.%20Balance%20Sheet%20Analysis) This section analyzes the company's total assets, loan portfolio, deposit structure, and shareholders' equity, highlighting key changes and trends [Total Assets](index=3&type=section&id=3.1%20Total%20Assets) Total assets experienced a modest increase during the first quarter of 2024 Total Assets Overview | Metric | March 31, 2024 (in billions) | December 31, 2023 (in billions) | Change (%) | | :---------- | :--------------------------- | :------------------------------ | :--------- | | Total Assets | $4.6 | $4.6 | +0.2 | [Loans](index=3&type=section&id=3.2%20Loans) Total loans, net of unearned fees, showed consistent growth both quarter-over-quarter and year-over-year, with specific categories like commercial and commercial real estate (non-owner occupied) contributing to the increase Loan Portfolio Summary | Metric | March 31, 2024 (in billions) | December 31, 2023 (in billions) | Change (%) | | :----------------------------------- | :--------------------------- | :------------------------------ | :--------- | | Total Loans, net of unearned fees | $3.70 | $3.68 | +0.4 (1.7% annualized) | | Total Loans (excl. mortgage warehouse & acquired) | $3.2 | N/A | +0.48 (1.93% annualized) | | Commercial Loans | $533.2 (in millions) | $503.8 (in millions) | +5.8 | | Commercial Real Estate (Non-owner occupied) | $1,280.9 (in millions) | $1,254.3 (in millions) | +2.1 | [Deposits](index=3&type=section&id=3.3%20Deposits) Deposits, particularly core deposits, demonstrated growth during the quarter, while the percentage of adjusted uninsured deposits slightly decreased Deposit Composition | Metric | March 31, 2024 (in billions) | December 31, 2023 (in billions) | Change (%) | | :---------------------- | :--------------------------- | :------------------------------ | :--------- | | Total Deposits | $3.7 | $3.7 | +0.9 (3.6% annualized) | | Core Deposits | $3.7 | N/A | +0.9 (3.6% annualized) | | Adjusted Uninsured Deposits (% of total) | 34.4 | 34.8 | -0.4 | [Shareholders' Equity](index=3&type=section&id=3.4%20Shareholders%27%20Equity) Shareholders' equity increased, primarily driven by retained earnings and positive impacts from interest rate hedges, despite some offsetting losses from available-for-sale debt securities Shareholders' Equity Overview | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | Change (%) | | :---------------------- | :--------------------------- | :------------------------------ | :--------- | | Total Shareholders' Equity | $454.3 | $440.2 | +3.2 | | Quarterly Common Dividend Per Share | $0.22 | $0.22 | 0 | | Outstanding Common Shares | 14,686,738 | 14,683,457 | +0.02 | - Tangible Book Value Per Common Share (TBVPCS) increased by **$1.02** to **$24.91**, positively impacted by retained earnings and unrealized net gains on interest rate caps and swaps (**$0.20** per common share), partially offset by unrealized net losses on AFS debt securities (**$0.18** per common share)[15](index=15&type=chunk) [Asset Quality](index=3&type=section&id=4.%20Asset%20Quality) This section evaluates the company's credit risk profile, including loan recoveries, provision for credit losses, allowance levels, and nonperforming assets [Loan Recoveries and Provision for Credit Losses](index=3&type=section&id=4.1%20Loan%20Recoveries%20and%20Provision%20for%20Credit%20Losses) The company recorded net loan recoveries for the quarter and no provision for credit losses, indicating a stable credit environment Loan Recoveries and Provision for Credit Losses | Metric | Q1 2024 (in thousands) | Q4 2023 (in millions) | Q1 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :-------------------------- | :--------------------- | :-------------------- | :-------------------- | :------------- | :------------- | | Net Loan Recoveries | $93 | $0.188 | $0.063 | +47.6 | -50.5 | | Provision for Credit Losses | $0 | $1.5 | $1.5 | -100.0 | -100.0 | [Allowance for Loan Credit Losses](index=3&type=section&id=4.2%20Allowance%20for%20Loan%20Credit%20Losses) The allowance for loan credit losses increased, both in absolute terms and as a percentage of total loans, while the coverage of nonperforming loans decreased due to a rise in NPAs Allowance for Loan Credit Losses | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | March 31, 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :----------------------------------- | :--------------------------- | :------------------------------ | :--------------------------- | :------------- | :------------- | | Allowance for Loan Credit Losses | $49.2 | $48.1 | $40.8 | +20.6 | +2.3 | | Allowance as % of Total Loans | 1.33 | 1.31 | 1.32 | +0.8 | +1.5 | | Allowance as % of Nonperforming Loans | 227.6 | 388.2 | N/A | N/A | -41.3 | - The allowance for credit losses on unfunded loan commitments decreased by **$1.05 million**, primarily due to a change in the mix of unfunded commitments, with a decrease in higher-loss-ratio construction loan commitments and an increase in lower-loss-factor commercial unfunded lines of credit[19](index=19&type=chunk) [Nonperforming Assets](index=3&type=section&id=4.3%20Nonperforming%20Assets) Nonperforming assets and nonperforming loans significantly increased quarter-over-quarter, leading to a higher percentage of assets classified as nonperforming Nonperforming Assets Summary | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | March 31, 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :--------------------------- | :--------------------------- | :------------------------------ | :--------------------------- | :------------- | :------------- | | Total Nonperforming Assets | $25.1 | $16.2 | $12.4 | +102.4 | +54.9 | | Nonperforming Assets as % of Assets | 0.54 | 0.35 | 0.31 | +74.2 | +54.3 | | Total Nonperforming Loans | $21.6 | $12.4 | $7.3 | +195.9 | +74.2 | [Loans Past Due 30-89 Days](index=12&type=section&id=4.4%20Loans%20Past%20Due%2030-89%20Days) Loans past due 30-89 days decreased significantly quarter-over-quarter, indicating an improvement in short-term delinquency Loans Past Due 30-89 Days | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | March 31, 2023 (in millions) | YoY Change (%) | QoQ Change (%) | | :---------------------- | :--------------------------- | :------------------------------ | :--------------------------- | :------------- | :------------- | | Total Loans Past Due 30-89 Days | $5.4 | $10.0 | $7.5 | -27.9 | -45.7 | [Company Information](index=4&type=section&id=5.%20Company%20Information) This section provides an overview of Summit Financial Group, its use of non-GAAP financial measures, and important forward-looking statement disclosures [About Summit Financial Group, Inc.](index=4&type=section&id=5.1%20About%20Summit%20Financial%20Group%2C%20Inc.) Summit Financial Group, Inc. is a $4.6 billion financial holding company operating through Summit Community Bank, Inc., serving a broad client base across multiple states with a focus on commercial lending and a blend of digital and branch services - Summit Financial Group, Inc. is a **$4.6 billion** financial holding company for Summit Community Bank, Inc[21](index=21&type=chunk) - The company serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia, Kentucky, the Eastern Shore of Maryland, and Delaware[21](index=21&type=chunk) - Summit focuses on in-market commercial lending and business banking services, leveraging efficient operations and core deposits, and offers residential, consumer lending, trust, wealth management, and other retail financial services through digital platforms and **54** full-service branch locations[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=5.2%20Non-GAAP%20Financial%20Measures) Summit's management utilizes non-GAAP financial measures, such as tangible common equity/tangible assets, efficiency ratio, and return on average tangible equity/common equity, to provide investors with a clearer understanding of operational performance and business trends, emphasizing that these should not replace GAAP measures - Summit uses non-GAAP financial measures like tangible common equity/tangible assets, efficiency ratio, return on average tangible equity, and return on average tangible common equity to help investors understand operational performance and business trends[22](index=22&type=chunk) - These non-GAAP measures are believed to facilitate comparisons within the financial services industry but should not be considered an alternative to GAAP[22](index=22&type=chunk) - Specific definitions for non-GAAP measures like Net Interest Margin (A), Efficiency Ratio (B), Return on average tangible equity (C), Return on average tangible common equity (D), Tangible book value per common share (A), and Tangible common equity to tangible assets (B) are provided in the report's notes[27](index=27&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) [Forward-Looking Statements](index=4&type=section&id=5.3%20Forward-Looking%20Statements) The press release includes forward-looking statements based on current expectations, which involve inherent risks and uncertainties that could cause actual results to differ materially from projections - The press release contains forward-looking statements based on current expectations, identified by words such as 'expects,' 'anticipates,' 'believes,' 'estimates,' and future or conditional verbs[23](index=23&type=chunk) - Actual results may differ materially due to various factors, including economic and market conditions, fiscal and monetary policies, credit losses, changes in nonperforming assets, interest rate changes, competition, regulatory changes, technological advances, and customer behavior[24](index=24&type=chunk) - The company undertakes no obligation to revise these statements following the date of the press release[24](index=24&type=chunk) [Financial Tables](index=5&type=section&id=6.%20Financial%20Tables) This section provides comprehensive financial tables, including quarterly performance, balance sheet data, loan and deposit compositions, regulatory capital ratios, and asset quality information [Quarterly Performance Summary (Q1 2024 vs Q1 2023)](index=5&type=section&id=6.1%20Quarterly%20Performance%20Summary%20(Q1%202024%20vs%20Q1%202023)) This section provides a detailed unaudited summary of the company's income statement, per share data, and key performance ratios for the first quarter of 2024 compared to the first quarter of 2023 Quarterly Performance Summary (Q1 2024 vs Q1 2023) | Metric | 3/31/2024 (in thousands) | 3/31/2023 (in thousands) | Percent Change (%) | | :----------------------------- | :----------------------- | :----------------------- | :----------------- | | Total interest income | $65,522 | $50,475 | 29.8 | | Total interest expense | $25,599 | $16,286 | 57.2 | | Net interest income | $39,923 | $34,189 | 16.8 | | Total noninterest income | $5,078 | $4,386 | 15.8 | | Total noninterest expense | $22,958 | $19,399 | 18.3 | | Net income applicable to common shares | $16,822 | $13,876 | 21.2 | | Diluted EPS | $1.14 | $1.08 | 5.6 | | Return on average assets | 1.47 | 1.43 | 2.8 | | Net interest margin | 3.75 | 3.83 | -2.1 | | Efficiency ratio | 48.29 | 48.00 | 0.6 | [Five Quarter Performance Summary (Income Statement)](index=7&type=section&id=6.2%20Five%20Quarter%20Performance%20Summary%20(Income%20Statement)) This table presents a five-quarter trend of the company's income statement, highlighting changes in interest income, interest expense, net interest income, noninterest income, and noninterest expense over time Five Quarter Performance Summary (Income Statement) | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Total interest income | $65,522 | $66,516 | $64,694 | $60,863 | $50,475 | | Total interest expense | $25,599 | $25,723 | $23,421 | $20,550 | $16,286 | | Net interest income | $39,923 | $40,793 | $41,273 | $40,313 | $34,189 | | Provision for credit losses | $0 | $1,500 | $1,250 | $8,000 | $1,500 | | Total noninterest income | $5,078 | $5,801 | $5,265 | $5,423 | $4,386 | | Total noninterest expense | $22,958 | $23,907 | $24,162 | $27,324 | $19,399 | | Net income applicable to common shares | $16,822 | $16,372 | $16,107 | $7,984 | $13,876 | [Five Quarter Performance Summary (Per Share Data & Ratios)](index=8&type=section&id=6.3%20Five%20Quarter%20Performance%20Summary%20(Per%20Share%20Data%20%26%20Ratios)) This table provides a five-quarter overview of per share data and key performance ratios, illustrating trends in earnings per share, dividends, and various profitability and efficiency metrics Five Quarter Performance Summary (Per Share Data & Ratios) | Per Share Data & Ratios | 3/31/2024 (in $) | 12/31/2023 (in $) | 9/30/2023 (in $) | 6/30/2023 (in $) | 3/31/2023 (in $) | | :---------------------- | :--------------- | :---------------- | :--------------- | :--------------- | :--------------- | | Diluted EPS | $1.14 | $1.11 | $1.09 | $0.54 | $1.08 | | Cash dividends per common share | $0.22 | $0.22 | $0.22 | $0.20 | $0.20 | | Common stock dividend payout ratio | 19.0 (%) | 19.5 (%) | 19.8 (%) | 36.7 (%) | 18.1 (%) | | Return on average assets | 1.47 (%) | 1.42 (%) | 1.42 (%) | 0.73 (%) | 1.43 (%) | | Net interest margin | 3.75 (%) | 3.76 (%) | 3.88 (%) | 3.89 (%) | 3.83 (%) | | Efficiency ratio | 48.29 (%) | 47.33 (%) | 47.15 (%) | 47.90 (%) | 48.00 (%) | [Selected Balance Sheet Data](index=9&type=section&id=6.4%20Selected%20Balance%20Sheet%20Data) This table provides a five-quarter snapshot of key balance sheet items, including assets, liabilities, and shareholders' equity, along with book value and tangible book value per common share Selected Balance Sheet Data | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Total assets | $4,642,884 | $4,634,322 | $4,604,208 | $4,552,270 | $3,977,407 | | Loans, net | $3,647,810 | $3,633,522 | $3,551,686 | $3,506,880 | $3,059,099 | | Deposits | $3,748,415 | $3,715,148 | $3,754,495 | $3,735,034 | $3,299,846 | | Total liabilities | $4,188,603 | $4,194,114 | $4,187,756 | $4,139,096 | $3,607,861 | | Total shareholders' equity | $454,281 | $440,208 | $416,452 | $413,174 | $369,546 | | Book value per common share | $29.92 | $28.96 | $27.36 | $27.14 | $27.73 | | Tangible book value per common share | $24.91 | $23.89 | $22.22 | $21.93 | $22.90 | | Tangible common equity to tangible assets | 8.0 (%) | 7.7 (%) | 7.2 (%) | 7.2 (%) | 7.5 (%) | [Loan Composition](index=10&type=section&id=6.5%20Loan%20Composition) This table details the composition of the loan portfolio across various categories over five quarters, showing trends in commercial, real estate, construction, and consumer lending Loan Composition | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Commercial | $533,214 | $503,842 | $511,951 | $511,457 | $498,268 | | Commercial real estate (Owner occupied) | $569,407 | $545,108 | $547,886 | $566,447 | $469,560 | | Commercial real estate (Non-owner occupied) | $1,280,948 | $1,254,337 | $1,217,029 | $1,193,927 | $1,036,358 | | Construction and development | $447,152 | $519,284 | $463,403 | $427,080 | $392,907 | | Residential real estate | $710,758 | $703,138 | $692,880 | $687,267 | $576,954 | | Total loans, net of unearned fees | $3,697,042 | $3,681,612 | $3,598,919 | $3,552,561 | $3,099,935 | [Deposit Composition](index=11&type=section&id=6.6%20Deposit%20Composition) This table provides a five-quarter breakdown of deposit types, including core deposits and brokered deposits, and estimated uninsured deposits Deposit Composition | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Non interest bearing checking | $605,509 | $593,576 | $630,055 | $679,139 | $552,716 | | Interest bearing checking | $2,145,824 | $2,164,522 | $2,144,737 | $2,024,341 | $1,886,011 | | Savings | $438,451 | $450,526 | $477,348 | $512,129 | $462,631 | | Time deposits | $525,932 | $473,687 | $469,530 | $465,026 | $327,037 | | Total core deposits | $3,715,716 | $3,682,311 | $3,721,670 | $3,680,635 | $3,228,395 | | Brokered deposits | $32,699 | $32,837 | $32,825 | $54,399 | $71,451 | | Total deposits | $3,748,415 | $3,715,148 | $3,754,495 | $3,735,034 | $3,299,846 | | Estimated uninsured deposits (A) | $1,288,845 | $1,291,467 | $1,283,610 | $1,189,908 | $933,703 | [Regulatory Capital Ratios](index=11&type=section&id=6.7%20Regulatory%20Capital%20Ratios) This table presents the regulatory capital ratios for both Summit Financial Group, Inc. and Summit Community Bank, Inc. over five quarters, demonstrating compliance and capital strength Regulatory Capital Ratios | Regulatory Capital Ratios | 3/31/2024 (%) | 12/31/2023 (%) | 9/30/2023 (%) | 6/30/2023 (%) | 3/31/2023 (%) | | :------------------------ | :------------ | :------------- | :------------ | :------------ | :------------ | | **Summit Financial Group, Inc.** | | | | | | | CET1 Risk-based Capital | 9.4 | 9.1 | 8.9 | 8.7 | 8.9 | | Tier 1 Risk-based Capital | 10.2 | 9.9 | 9.7 | 9.5 | 9.8 | | Total Risk Based Capital | 14.0 | 13.7 | 13.5 | 13.3 | 14.0 | | Tier 1 Leverage | 9.0 | 8.7 | 8.5 | 8.4 | 8.7 | | **Summit Community Bank, Inc.** | | | | | | | CET1 Risk-based Capital | 12.0 | 11.7 | 11.6 | 11.3 | 11.9 | | Tier 1 Risk-based Capital | 12.0 | 11.7 | 11.6 | 11.3 | 11.9 | | Total Risk Based Capital | 13.3 | 12.9 | 12.7 | 12.5 | 13.1 | | Tier 1 Leverage | 10.6 | 10.2 | 10.1 | 9.9 | 10.6 | [Asset Quality Information](index=12&type=section&id=6.8%20Asset%20Quality%20Information) This table provides a five-quarter summary of asset quality metrics, including net loan charge-offs/recoveries, allowance for loan credit losses, and nonperforming assets Asset Quality Information | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net loan charge-offs (recoveries) | ($93) | ($188) | $119 | $3,891 | ($63) | | Allowance for loan credit losses | $49,232 | $48,090 | $47,233 | $45,681 | $40,836 | | Allowance for loan credit losses as a percentage of period end loans | 1.33 (%) | 1.31 (%) | 1.31 (%) | 1.29 (%) | 1.32 (%) | | Total nonperforming assets | $25,059 | $16,168 | $17,351 | $16,082 | $12,430 | | Nonperforming loans to period end loans | 0.58 (%) | 0.34 (%) | 0.36 (%) | 0.32 (%) | 0.24 (%) | | Nonperforming assets to period end assets | 0.54 (%) | 0.35 (%) | 0.38 (%) | 0.35 (%) | 0.31 (%) | [Loans Past Due 30-89 Days](index=12&type=section&id=6.9%20Loans%20Past%20Due%2030-89%20Days) This table provides a five-quarter trend of loans past due 30-89 days across different loan categories, indicating short-term delinquency patterns Loans Past Due 30-89 Days | Metric | 3/31/2024 (in thousands) | 12/31/2023 (in thousands) | 9/30/2023 (in thousands) | 6/30/2023 (in thousands) | 3/31/2023 (in thousands) | | :----------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Commercial | $183 | $1,152 | $3,300 | $1,006 | $463 | | Commercial real estate | $281 | $1,711 | $781 | $513 | $1,000 | | Construction and development | $0 | $570 | $793 | $161 | $3,459 | | Residential real estate | $4,570 | $6,114 | $4,620 | $4,933 | $2,311 | | Consumer | $379 | $401 | $440 | $389 | $252 | | Total | $5,423 | $9,991 | $9,971 | $7,019 | $7,498 | [Average Balance Sheet, Interest Earnings & Expenses and Average Rates](index=13&type=section&id=6.10%20Average%20Balance%20Sheet%2C%20Interest%20Earnings%20%26%20Expenses%20and%20Average%20Rates) This table presents the average balance sheet, interest earnings and expenses, and average rates for Q1 2024, Q4 2023, and Q1 2023, providing insights into the company's interest rate sensitivity and profitability Average Balance Sheet, Interest Earnings & Expenses and Average Rates | Metric | Q1 2024 Average Balances (in thousands) | Q1 2024 Earnings/Expense (in thousands) | Q1 2024 Yield/Rate (%) | Q4 2023 Average Balances (in thousands) | Q4 2023 Earnings/Expense (in thousands) | Q4 2023 Yield/Rate (%) | Q1 2023 Average Balances (in thousands) | Q1 2023 Earnings/Expense (in thousands) | Q1 2023 Yield/Rate (%) | | :----------------------------- | :-------------------------------------- | :-------------------------------------- | :--------------------- | :-------------------------------------- | :-------------------------------------- | :--------------------- | :-------------------------------------- | :-------------------------------------- | :--------------------- | | Total interest earning assets | $4,318,968 | $65,831 | 6.13 | $4,340,501 | $66,905 | 6.12 | $3,657,918 | $50,866 | 5.64 | | Total interest bearing liabilities | $3,522,354 | $25,599 | 2.92 | $3,572,224 | $25,723 | 2.86 | $2,978,928 | $16,286 | 2.22 | | NET INTEREST EARNINGS | | $40,232 | | | $41,182 | | | $34,580 | | | NET INTEREST MARGIN | | | 3.75 | | | 3.76 | | | 3.83 |