RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS |
RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS The Company has restated herein the impacted line items to the Consolidated Balance Sheet as of December 31, 2023 and the Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Shareholders' Equity and Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022. In addition, the Company has restated the impacted line items to its unaudited quarterly Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Shareholders' Equity and Consolidated Statements of Cash Flows as of and for the three months ended March 31, 2024 and 2023, for the three and six months ended June 30, 2024 and 2023, and for the three and nine months ended September 30, 2024 and 2023. Description of Misstatements The errors relate to the Company’s accounting for loans originated pursuant to third-party loan origination programs. As part of these programs, the third-party providers offered various credit enhancements with respect to loans originated under the programs, including contributions to reserve accounts, yield maintenance and certain other payments. Historically, the Company accounted for all borrower payments and credit enhancement payments under these programs on a single unit, or net basis, with all such payments presented as interest income representing the Company’s effective yield on the portfolios. The Company has determined that these payments should instead be accounted for on a separate unit of account, or gross basis, with loan yields and interest income recorded at the gross borrower loan rate, credit losses and associated provisions for credit losses recorded on a gross basis over the life of the loans, and with all credit enhancement payments recorded separately as a credit enhancement derivative. Description of Restated Tables The following tables present the amounts previously reported and a reconciliation of the restated amounts reported on the restated Consolidated Balance Sheets, the restated Consolidated Statements of Income and the restated Consolidated Statements of Cash Flows for the periods presented. Restated Audited Financial Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Balance Sheet | | | | | | | | | | | | | | | | December 31, 2023 | | | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | | | | | | Loans | | $ | 6,131,079 | | | $ | (27,487) | | | $ | 6,103,592 | | | | | | | | Allowance for credit losses on loans | | (68,502) | | | (90,817) | | | (159,319) | | | | | | | | Total loans, net | | 6,062,577 | | | (118,304) | | | 5,944,273 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Accrued interest receivable | | 24,934 | | | 9,199 | | | 34,133 | | | | | | | | Credit enhancement asset | | — | | | 15,389 | | | 15,389 | | | | | | | | Other assets | | 182,992 | | | 16,894 | | | 199,886 | | | | | | | | Total assets | | $ | 7,866,868 | | | $ | (76,822) | | | $ | 7,790,046 | | | | | | | | | | | | | | | | | | | | | Accrued interest payable and other liabilities | | $ | 110,459 | | | $ | (82) | | | $ | 110,377 | | | | | | | | Total liabilities | | 7,075,015 | | | (82) | | | 7,074,933 | | | | | | | | | | | | | | | | | | | | | Retained earnings | | 322,379 | | | (76,740) | | | 245,639 | | | | | | | | Total shareholders' equity | | 791,853 | | | (76,740) | | | 715,113 | | | | | | | | | | | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 7,866,868 | | | $ | (76,822) | | | $ | 7,790,046 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Income | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2023 | | 2022 | (dollars in thousands. except per share data) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | | | | | | | Loans including fees: | | | | | | | | | | | | | Taxable | | $ | 365,529 | | | $ | 12,804 | | | $ | 378,333 | | | $ | 274,617 | | | $ | 10,960 | | | $ | 285,577 | | Total interest income | | 404,296 | | | 12,804 | | | 417,100 | | | 301,755 | | | 10,960 | | | 312,715 | | Net interest income | | 236,017 | | | 12,804 | | | 248,821 | | | 245,735 | | | 10,960 | | | 256,695 | | Provision for credit losses: | | | | | | | | | | | | | Provision for credit losses on loans | | 21,132 | | | 61,428 | | | 82,560 | | | 18,797 | | | 56,638 | | | 75,435 | | Total provision for credit losses | | 21,132 | | | 61,428 | | | 82,560 | | | 20,126 | | | 56,638 | | | 76,764 | | Net interest income after provision for credit losses | | 214,885 | | | (48,624) | | | 166,261 | | | 225,609 | | | (45,678) | | | 179,931 | | Noninterest income: | | | | | | | | | | | | | Credit enhancement income | | — | | | 48,194 | | | 48,194 | | | — | | | 69,976 | | | 69,976 | | Total noninterest income | | 66,590 | | | 48,194 | | | 114,784 | | | 79,891 | | | 69,976 | | | 149,867 | | Noninterest expense: | | | | | | | | | | | | | Loan servicing fees | | — | | | 19,181 | | | 19,181 | | | — | | | 22,750 | | | 22,750 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total noninterest expense | | 173,902 | | | 19,181 | | | 193,083 | | | 175,662 | | | 22,750 | | | 198,412 | | Income before income taxes | | 107,573 | | | (19,611) | | | 87,962 | | | 129,838 | | | 1,548 | | | 131,386 | | Income tax expense | | 32,113 | | | (5,306) | | | 26,807 | | | 30,813 | | | 336 | | | 31,149 | | Net income | | 75,460 | | | (14,305) | | | 61,155 | | | 99,025 | | | 1,212 | | | 100,237 | | Net income available to common shareholders | | $ | 66,547 | | | $ | (14,305) | | | $ | 52,242 | | | $ | 95,856 | | | $ | 1,212 | | | $ | 97,068 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2023 | | 2022 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | $ | 75,460 | | | $ | (14,305) | | | $ | 61,155 | | | $ | 99,025 | | | $ | 1,212 | | | $ | 100,237 | | Other comprehensive income (loss) | | 7,044 | | | — | | | 7,044 | | | (89,034) | | | — | | | (89,034) | | Total comprehensive income | | $ | 82,504 | | | $ | (14,305) | | | $ | 68,199 | | | $ | 9,991 | | | $ | 1,212 | | | $ | 11,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Shareholders' Equity | | | | | | | | | | | | | | | | Retained earnings | | Total shareholders' equity | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Balances, December 31, 2021 | | $ | 212,472 | | | $ | (63,647) | | | $ | 148,825 | | | $ | 663,837 | | | $ | (63,647) | | | $ | 600,190 | | Net income | | 99,025 | | | 1,212 | | | 100,237 | | | 99,025 | | | 1,212 | | | 100,237 | | Balances, December 31, 2022 | | 282,405 | | | (62,435) | | | 219,970 | | | 758,574 | | | (62,435) | | | 696,139 | | Net income | | 75,460 | | | (14,305) | | | 61,155 | | | 75,460 | | | (14,305) | | | 61,155 | | Balances, December 31, 2023 | | $ | 322,379 | | | $ | (76,740) | | | $ | 245,639 | | | $ | 791,853 | | | $ | (76,740) | | | $ | 715,113 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Cash Flows | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2023 | | 2022 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | $ | 75,460 | | | $ | (14,305) | | | $ | 61,155 | | | $ | 99,025 | | | $ | 1,212 | | | $ | 100,237 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | Provision for credit losses | | 21,132 | | | 61,428 | | | 82,560 | | | 20,126 | | | 56,638 | | | 76,764 | | Proceeds from sales of loans held for sale | | 98,851 | | | (40,899) | | | 57,952 | | | 269,958 | | | — | | | 269,958 | | Net change in operating assets and liabilities: | | | | | | | | | | | | | Accrued interest receivable | | (4,621) | | | 261 | | | (4,360) | | | (807) | | | (641) | | | (1,448) | | Credit enhancement asset | | — | | | (2,376) | | | (2,376) | | | — | | | (18,792) | | | (18,792) | | Other assets | | (18,731) | | | (5,307) | | | (24,038) | | | 876 | | | 337 | | | 1,213 | | Accrued expenses and other liabilities | | 27,661 | | | (82) | | | 27,579 | | | (13,579) | | | — | | | (13,579) | | Net cash provided by operating activities | | 154,638 | | | (1,280) | | | 153,358 | | | 247,065 | | | 38,754 | | | 285,819 | | Cash flows from investing activities: | | | | | | | | | | | | | Net decrease (increase) in loans | | 112,496 | | | (39,619) | | | 72,877 | | | (1,177,598) | | | (38,754) | | | (1,216,352) | | Proceeds from loans held for sale previously classified as portfolio loans | | — | | | 40,899 | | | 40,899 | | | — | | | — | | | — | | Net cash (used in) provided by investing activities | | $ | (76,080) | | | $ | 1,280 | | | $ | (74,800) | | | $ | (1,098,887) | | | $ | (38,754) | | | $ | (1,137,641) | |
Restated Unaudited Quarterly Financial Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Balance Sheets (unaudited) | | | | | | | | | | | | | | | | September 30, 2024 | | June 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Loans | | $ | 5,748,819 | | | $ | (20,582) | | | $ | 5,728,237 | | | $ | 5,851,994 | | | $ | (22,937) | | | $ | 5,829,057 | | Allowance for credit losses on loans | | (85,804) | | | (65,263) | | | (151,067) | | | (92,183) | | | (63,260) | | | (155,443) | | Total loans, net | | 5,663,015 | | | (85,845) | | | 5,577,170 | | | 5,759,811 | | | (86,197) | | | 5,673,614 | | Accrued interest receivable | | 27,099 | | | 7,938 | | | 35,037 | | | 25,756 | | | 8,359 | | | 34,115 | | Credit enhancement asset | | — | | | 20,633 | | | 20,633 | | | — | | | 18,202 | | | 18,202 | | Other assets | | 177,663 | | | 9,980 | | | 187,643 | | | 199,487 | | | 10,436 | | | 209,923 | | Total assets | | $ | 7,751,483 | | | $ | (47,294) | | | $ | 7,704,189 | | | $ | 7,757,274 | | | $ | (49,200) | | | $ | 7,708,074 | | | | | | | | | | | | | | | Accrued interest payable and other liabilities | | $ | 103,737 | | | $ | (256) | | | $ | 103,481 | | | $ | 103,694 | | | $ | (207) | | | $ | 103,487 | | Total liabilities | | 6,933,224 | | | $ | (256) | | | 6,932,968 | | | 6,971,502 | | | (207) | | | 6,971,295 | | | | | | | | | | | | | | | Retained earnings | | 334,522 | | | (47,038) | | | 287,484 | | | 325,022 | | | (48,993) | | | 276,029 | | Total shareholders' equity | | 818,259 | | | (47,038) | | | 771,221 | | | 785,772 | | | (48,993) | | | 736,779 | | | | | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 7,751,483 | | | $ | (47,294) | | | $ | 7,704,189 | | | $ | 7,757,274 | | | $ | (49,200) | | | $ | 7,708,074 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Balance Sheets (unaudited) (continued) | | | | | | | | | | | | | | | | March 31, 2024 | | September 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Loans | | $ | 5,958,462 | | | $ | (25,304) | | | $ | 5,933,158 | | | $ | 6,280,883 | | | $ | (27,448) | | | $ | 6,253,435 | | Allowance for credit losses on loans | | (78,057) | | | (82,787) | | | (160,844) | | | (66,669) | | | (91,146) | | | (157,815) | | Total loans, net | | 5,880,405 | | | (108,091) | | | 5,772,314 | | | 6,214,214 | | | (118,594) | | | 6,095,620 | | Credit enhancement asset | | — | | | 16,369 | | | 16,369 | | | — | | | 15,111 | | | 15,111 | | | | | | | | | | | | | | | Other assets | | 182,201 | | | 14,850 | | | 197,051 | | | 222,966 | | | 17,593 | | | 240,559 | | Total assets | | $ | 7,831,809 | | | $ | (68,101) | | | $ | 7,763,708 | | | $ | 7,969,285 | | | $ | (76,176) | | | $ | 7,893,109 | | | | | | | | | | | | | | | Accrued interest payable and other liabilities | | $ | 102,966 | | | $ | (139) | | | $ | 102,827 | | | $ | 106,743 | | | $ | (39) | | | $ | 106,704 | | Total liabilities | | 7,040,803 | | | (139) | | | 7,040,664 | | | 7,211,675 | | | (39) | | | 7,211,636 | | | | | | | | | | | | | | | Retained earnings | | 327,264 | | | (67,962) | | | 259,302 | | | 310,461 | | | (76,137) | | | 234,324 | | Total shareholders' equity | | 791,006 | | | (67,962) | | | 723,044 | | | 757,610 | | | (76,137) | | | 681,473 | | | | | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 7,831,809 | | | $ | (68,101) | | | $ | 7,763,708 | | | $ | 7,969,285 | | | $ | (76,176) | | | $ | 7,893,109 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | March 31, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Loans | | $ | 6,367,344 | | | $ | (27,922) | | | $ | 6,339,422 | | | $ | 6,354,271 | | | $ | (27,347) | | | $ | 6,326,924 | | Allowance for credit losses on loans | | (64,950) | | | (86,465) | | | (151,415) | | | (62,067) | | | (78,797) | | | (140,864) | | Total loans, net | | 6,302,394 | | | (114,387) | | | 6,188,007 | | | 6,292,204 | | | (106,144) | | | 6,186,060 | | | | | | | | | | | | | | | Credit enhancement asset | | — | | | 14,720 | | | 14,720 | | | — | | | 13,959 | | | 13,959 | | Other assets | | 175,821 | | | 16,404 | | | 192,225 | | | 160,272 | | | 14,195 | | | 174,467 | | Total assets | | $ | 8,034,721 | | | $ | (73,425) | | | $ | 7,961,296 | | | $ | 7,930,174 | | | $ | (68,385) | | | $ | 7,861,789 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Retained earnings | | $ | 307,888 | | | $ | (73,425) | | | $ | 234,463 | | | $ | 295,200 | | | $ | (68,385) | | | $ | 226,815 | | Total shareholders' equity | | 776,821 | | | $ | (73,425) | | | 703,396 | | | 775,643 | | | (68,385) | | | 707,258 | | | | | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 8,034,721 | | | $ | (73,425) | | | $ | 7,961,296 | | | $ | 7,930,174 | | | $ | (68,385) | | | $ | 7,861,789 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Income (unaudited) | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, 2024 | | September 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | | | | | | | Loans including fees: | | | | | | | | | | | | | Taxable | | $ | 88,860 | | | $ | 4,160 | | | $ | 93,020 | | | $ | 266,107 | | | $ | 11,854 | | | $ | 277,961 | | Total interest income | | 104,834 | | | 4,160 | | | 108,994 | | | 309,804 | | | 11,854 | | | 321,658 | | Net interest income | | 54,950 | | | 4,160 | | | 59,110 | | | 165,922 | | | 11,854 | | | 177,776 | | Provision for credit losses: | | | | | | | | | | | | | Provision for credit losses on loans | | 5,000 | | | 12,925 | | | 17,925 | | | 36,000 | | | 10,349 | | | 46,349 | | Total provision for credit losses | | 5,000 | | | 12,925 | | | 17,925 | | | 35,800 | | | 10,349 | | | 46,149 | | Net interest income after provision for credit losses | | 49,950 | | | (8,765) | | | 41,185 | | | 130,122 | | | 1,505 | | | 131,627 | | Noninterest income: | | | | | | | | | | | | | Credit enhancement income | | — | | | 14,206 | | | 14,206 | | | — | | | 45,188 | | | 45,188 | | Total noninterest income | | 19,339 | | | 14,206 | | | 33,545 | | | 58,182 | | | 45,188 | | | 103,370 | | Noninterest expense: | | | | | | | | | | | | | Loan servicing fees | | — | | | 3,031 | | | 3,031 | | | — | | | 10,077 | | | 10,077 | | Total noninterest expense | | 46,733 | | | 3,031 | | | 49,764 | | | 139,079 | | | 10,077 | | | 149,156 | | Income before income taxes | | 22,556 | | | 2,410 | | | 24,966 | | | 49,225 | | | 36,616 | | | 85,841 | | Income tax expense | | 4,080 | | | 455 | | | 4,535 | | | 10,114 | | | 6,914 | | | 17,028 | | Net income | | 18,476 | | | 1,955 | | | 20,431 | | | 39,111 | | | 29,702 | | | 68,813 | | Net income available to common shareholders | | $ | 16,247 | | | $ | 1,955 | | | $ | 18,202 | | | $ | 32,426 | | | $ | 29,702 | | | $ | 62,128 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2024 | | June 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | | | | | | | Loans including fees: | | | | | | | | | | | | | Taxable | | $ | 88,252 | | | $ | 3,843 | | | $ | 92,095 | | | $ | 177,247 | | | $ | 7,694 | | | $ | 184,941 | | Total interest income | | 103,295 | | | 3,843 | | | 107,138 | | | 204,970 | | | 7,694 | | | 212,664 | | Net interest income | | 55,052 | | | 3,843 | | | 58,895 | | | 110,972 | | | 7,694 | | | 118,666 | | Provision for credit losses: | | | | | | | | | | | | | Provision for credit losses on loans | | 17,000 | | | (8,518) | | | 8,482 | | | 31,000 | | | (2,576) | | | 28,424 | | Total provision for credit losses | | 16,800 | | | (8,518) | | | 8,282 | | | 30,800 | | | (2,576) | | | 28,224 | | Net interest income after provision for credit losses | | 38,252 | | | 12,361 | | | 50,613 | | | 80,172 | | | 10,270 | | | 90,442 | | Noninterest income: | | | | | | | | | | | | | Credit enhancement income | | — | | | 14,328 | | | 14,328 | | | — | | | 30,982 | | | 30,982 | | Total noninterest income | | 17,656 | | | 14,328 | | | 31,984 | | | 38,843 | | | 30,982 | | | 69,825 | | Noninterest expense: | | | | | | | | | | | | | Loan servicing fees | | — | | | 3,305 | | | 3,305 | | | — | | | 7,046 | | | 7,046 | | Total noninterest expense | | 47,479 | | | 3,305 | | | 50,784 | | | 92,346 | | | 7,046 | | | 99,392 | | Income before income taxes | | 8,429 | | | 23,384 | | | 31,813 | | | 26,669 | | | 34,206 | | | 60,875 | | Income tax expense | | 1,679 | | | 4,415 | | | 6,094 | | | 6,034 | | | 6,459 | | | 12,493 | | Net income | | 6,750 | | | 18,969 | | | 25,719 | | | 20,635 | | | 27,747 | | | 48,382 | | Net income available to common shareholders | | $ | 4,522 | | | $ | 18,969 | | | $ | 23,491 | | | $ | 16,179 | | | $ | 27,747 | | | $ | 43,926 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statement of Income (unaudited) (continued) | | | | | | | | | | Three Months Ended | | | March 31, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | Loans including fees: | | | | | | | Taxable | | $ | 88,995 | | | $ | 3,851 | | | $ | 92,846 | | Total interest income | | 101,675 | | | 3,851 | | | 105,526 | | Net interest income | | 55,920 | | | 3,851 | | | 59,771 | | Provision for credit losses: | | | | | | | Provision for credit losses on loans | | 14,000 | | | 5,942 | | | 19,942 | | Total provision for credit losses | | 14,000 | | | 5,942 | | | 19,942 | | Net interest income after provision for credit losses | | 41,920 | | | (2,091) | | | 39,829 | | Noninterest income: | | | | | | | Credit enhancement income | | — | | | 16,654 | | | 16,654 | | Total noninterest income | | 21,187 | | | 16,654 | | | 37,841 | | Noninterest expense: | | | | | | | Loan servicing fees | | — | | | 3,741 | | | 3,741 | | Total noninterest expense | | 44,867 | | | 3,741 | | | 48,608 | | Income before income taxes | | 18,240 | | | 10,822 | | | 29,062 | | Income tax expense | | 4,355 | | | 2,044 | | | 6,399 | | Net income | | 13,885 | | | 8,778 | | | 22,663 | | Net income available to common shareholders | | $ | 11,657 | | | $ | 8,778 | | | $ | 20,435 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, 2023 | | September 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | | | | | | | Loans including fees: | | | | | | | | | | | | | Taxable | | $ | 93,488 | | | $ | 3,029 | | | $ | 96,517 | | | $ | 272,297 | | | $ | 9,188 | | | $ | 281,485 | | Total interest income | | 103,585 | | | 3,029 | | | 106,614 | | | 299,615 | | | 9,188 | | | 308,803 | | Net interest income | | 58,596 | | | 3,029 | | | 61,625 | | | 177,940 | | | 9,188 | | | 187,128 | | Provision for credit losses: | | | | | | | | | | | | | Provision for credit losses on loans | | 5,168 | | | 17,194 | | | 22,362 | | | 14,182 | | | 52,278 | | | 66,460 | | Total provision for credit losses | | 5,168 | | | 17,194 | | | 22,362 | | | 14,182 | | | 52,278 | | | 66,460 | | Net interest income after provision for credit losses | | 53,428 | | | (14,165) | | | 39,263 | | | 163,758 | | | (43,090) | | | 120,668 | | Noninterest income: | | | | | | | | | | | | | Credit enhancement income | | — | | | 14,918 | | | 14,918 | | | — | | | 38,380 | | | 38,380 | | Total noninterest income | | 11,545 | | | 14,918 | | | 26,463 | | | 46,077 | | | 38,380 | | | 84,457 | | Noninterest expense: | | | | | | | | | | | | | Loan servicing fees | | — | | | 4,654 | | | 4,654 | | | — | | | 14,998 | | | 14,998 | | Total noninterest expense | | 42,038 | | | 4,654 | | | 46,692 | | | 129,414 | | | 14,998 | | | 144,412 | | Income before income taxes | | 22,935 | | | (3,901) | | | 19,034 | | | 80,421 | | | (19,708) | | | 60,713 | | Income tax expense | | 11,533 | | | (1,189) | | | 10,344 | | | 25,672 | | | (6,006) | | | 19,666 | | Net income | | 11,402 | | | (2,712) | | | 8,690 | | | 54,749 | | | (13,702) | | | 41,047 | | Net income available to common shareholders | | $ | 9,173 | | | $ | (2,712) | | | $ | 6,461 | | | $ | 48,064 | | | $ | (13,702) | | | $ | 34,362 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Income (unaudited) (continued) | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2023 | | June 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | | | | | | | Loans including fees: | | | | | | | | | | | | | Taxable | | $ | 91,350 | | | $ | 3,614 | | | $ | 94,964 | | | $ | 178,809 | | | $ | 6,159 | | | $ | 184,968 | | Total interest income | | 100,491 | | | 3,614 | | | 104,105 | | | 196,030 | | | 6,159 | | | 202,189 | | Net interest income | | 58,840 | | | 3,614 | | | 62,454 | | | 119,344 | | | 6,159 | | | 125,503 | | Provision for credit losses: | | | | | | | | | | | | | Provision for credit losses on loans | | 5,879 | | | 15,937 | | | 21,816 | | | 9,014 | | | 35,084 | | | 44,098 | | Total provision for credit losses | | 5,879 | | | 15,937 | | | 21,816 | | | 9,014 | | | 35,084 | | | 44,098 | | Net interest income after provision for credit losses | | 52,961 | | | (12,323) | | | 40,638 | | | 110,330 | | | (28,925) | | | 81,405 | | Noninterest income: | | | | | | | | | | | | | Credit enhancement income | | — | | | 10,082 | | | 10,082 | | | — | | | 23,462 | | | 23,462 | | Total noninterest income | | 18,753 | | | 10,082 | | | 28,835 | | | 34,532 | | | 23,462 | | | 57,994 | | Noninterest expense: | | | | | | | | | | | | | Loan servicing fees | | — | | | 5,008 | | | 5,008 | | | — | | | 10,344 | | | 10,344 | | Total noninterest expense | | 42,894 | | | 5,008 | | | 47,902 | | | 87,376 | | | 10,344 | | | 97,720 | | Income before income taxes | | 28,820 | | | (7,249) | | | 21,571 | | | 57,486 | | | (15,807) | | | 41,679 | | Income tax expense | | 7,245 | | | (2,209) | | | 5,036 | | | 14,139 | | | (4,817) | | | 9,322 | | Net income | | 21,575 | | | (5,040) | | | 16,535 | | | 43,347 | | | (10,990) | | | 32,357 | | Net income available to common shareholders | | $ | 19,347 | | | $ | (5,040) | | | $ | 14,307 | | | $ | 38,891 | | | $ | (10,990) | | | $ | 27,901 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | March 31, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | Interest income: | | | | | | | Loans including fees: | | | | | | | Taxable | | $ | 87,459 | | | $ | 2,545 | | | $ | 90,004 | | Total interest income | | 95,539 | | | 2,545 | | | 98,084 | | Net interest income | | 60,504 | | | 2,545 | | | 63,049 | | Provision for credit losses: | | | | | | | Provision for credit losses on loans | | 3,135 | | | 19,147 | | | 22,282 | | Total provision for credit losses | | 3,135 | | | 19,147 | | | 22,282 | | Net interest income after provision for credit losses | | 57,369 | | | (16,602) | | | 40,767 | | Noninterest income: | | | | | | | Credit enhancement income | | — | | | 13,380 | | | 13,380 | | Total noninterest income | | 15,779 | | | 13,380 | | | 29,159 | | Noninterest expense: | | | | | | | Loan servicing fees | | — | | | 5,336 | | | 5,336 | | Total noninterest expense | | 44,482 | | | 5,336 | | | 49,818 | | Income before income taxes | | 28,666 | | | (8,558) | | | 20,108 | | Income tax expense | | 6,894 | | | (2,608) | | | 4,286 | | Net income | | 21,772 | | | (5,950) | | | 15,822 | | Net income available to common shareholders | | $ | 19,544 | | | $ | (5,950) | | | $ | 13,594 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statement of Comprehensive Income (unaudited) | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, 2024 | | September 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | 18,476 | | | 1,955 | | | 20,431 | | | 39,111 | | | 29,702 | | | 68,813 | | Other comprehensive income | | 21,941 | | | — | | | 21,941 | | | 16,113 | | | — | | | 16,113 | | Total comprehensive income | | 40,417 | | | 1,955 | | | 42,372 | | | 55,224 | | | 29,702 | | | 84,926 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2024 | | June 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | 6,750 | | | 18,969 | | | 25,719 | | | 20,635 | | | 27,747 | | | 48,382 | | Other comprehensive loss | | (1,162) | | | — | | | (1,162) | | | (5,828) | | | — | | | (5,828) | | Total comprehensive income | | 5,588 | | | 18,969 | | | 24,557 | | | 14,807 | | | 27,747 | | | 42,554 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | March 31, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | Net income | | 13,885 | | | 8,778 | | | 22,663 | | Other comprehensive loss | | (4,666) | | | — | | | (4,666) | | Total comprehensive income | | 9,219 | | | 8,778 | | | 17,997 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, 2023 | | September 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | 11,402 | | | (2,712) | | | 8,690 | | | 54,749 | | | (13,702) | | | 41,047 | | Other comprehensive loss | | (16,462) | | | — | | | (16,462) | | | (17,384) | | | — | | | (17,384) | | Total comprehensive (loss) income | | (5,060) | | | (2,712) | | | (7,772) | | | 37,365 | | | (13,702) | | | 23,663 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2023 | | June 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | 21,575 | | | (5,040) | | | 16,535 | | | 43,347 | | | (10,990) | | | 32,357 | | Other comprehensive loss | | (6,922) | | | — | | | (6,922) | | | (922) | | | — | | | (922) | | Total comprehensive income | | 14,653 | | | (5,040) | | | 9,613 | | | 42,425 | | | (10,990) | | | 31,435 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | March 31, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | Net income | | 21,772 | | | (5,950) | | | 15,822 | | Other comprehensive income | | 6,000 | | | — | | | 6,000 | | Total comprehensive income | | 27,772 | | | (5,950) | | | 21,822 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Shareholders' Equity (unaudited) | | | | | | | | | | | | | | | | Retained earnings | | Total shareholders' equity | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | | | | | | | | | | | | | | For the three months ended September 30, 2024 | | | | | | | | | | | Balances, June 30, 2024 | | $ | 325,022 | | | $ | (48,993) | | | $ | 276,029 | | | $ | 785,772 | | | $ | (48,993) | | | $ | 736,779 | | Net income | | 18,476 | | | 1,955 | | | 20,431 | | | 18,476 | | | 1,955 | | | 20,431 | | Balances, September 30, 2024 | | $ | 334,522 | | | $ | (47,038) | | | $ | 287,484 | | | $ | 818,259 | | | $ | (47,038) | | | $ | 771,221 | | For the nine months ended September 30, 2024 | | | | | | | | | | | Balances, December 31, 2023 | | $ | 322,379 | | | $ | (76,740) | | | $ | 245,639 | | | $ | 791,853 | | | $ | (76,740) | | | $ | 715,113 | | Net income | | 39,111 | | | 29,702 | | | 68,813 | | | 39,111 | | | 29,702 | | | 68,813 | | Balances, September 30, 2024 | | $ | 334,522 | | | $ | (47,038) | | | $ | 287,484 | | | $ | 818,259 | | | $ | (47,038) | | | $ | 771,221 | | | | | | | | | | | | | | | For the three months ended June 30, 2024 | | | | | | | | | | | Balances, March 31, 2024 | | $ | 327,264 | | | $ | (67,962) | | | $ | 259,302 | | | $ | 791,006 | | | $ | (67,962) | | | $ | 723,044 | | Net income | | 6,750 | | | 18,969 | | | 25,719 | | | 6,750 | | | 18,969 | | | 25,719 | | Balances, June 30, 2024 | | $ | 325,022 | | | $ | (48,993) | | | $ | 276,029 | | | $ | 785,772 | | | $ | (48,993) | | | $ | 736,779 | | For the six months ended June 30, 2024 | | | | | | | | | | | Balances, December 31, 2023 | | $ | 322,379 | | | $ | (76,740) | | | $ | 245,639 | | | $ | 791,853 | | | $ | (76,740) | | | $ | 715,113 | | Net income | | 20,635 | | | 27,747 | | | 48,382 | | | 20,635 | | | 27,747 | | | 48,382 | | Balances, June 30, 2024 | | $ | 325,022 | | | $ | (48,993) | | | $ | 276,029 | | | $ | 785,772 | | | $ | (48,993) | | | $ | 736,779 | | | | | | | | | | | | | | | For the three months ended March 31, 2024 | | | | | | | | | | | Balances, December 31, 2023 | | $ | 322,379 | | | $ | (76,740) | | | $ | 245,639 | | | $ | 791,853 | | | $ | (76,740) | | | $ | 715,113 | | Net income | | 13,885 | | | 8,778 | | | 22,663 | | | 13,885 | | | 8,778 | | | 22,663 | | Balances, March 31, 2024 | | $ | 327,264 | | | $ | (67,962) | | | $ | 259,302 | | | $ | 791,006 | | | $ | (67,962) | | | $ | 723,044 | | | | | | | | | | | | | | | For the three months ended September 30, 2023 | | | | | | | | | | | Balances, June 30, 2023 | | $ | 307,888 | | | $ | (73,425) | | | $ | 234,463 | | | $ | 776,821 | | | $ | (73,425) | | | $ | 703,396 | | Net income | | 11,402 | | | (2,712) | | | 8,690 | | | 11,402 | | | (2,712) | | | 8,690 | | Balances, September 30, 2023 | | $ | 310,461 | | | $ | (76,137) | | | $ | 234,324 | | | $ | 757,610 | | | $ | (76,137) | | | $ | 681,473 | | For the nine months ended September 30, 2023 | | | | | | | | | | | Balances, December 31, 2022 | | $ | 282,405 | | | $ | (62,435) | | | $ | 219,970 | | | $ | 758,574 | | | $ | (62,435) | | | $ | 696,139 | | Net income | | 54,749 | | | (13,702) | | | 41,047 | | | 54,749 | | | (13,702) | | | 41,047 | | Balances, September 30, 2023 | | $ | 310,461 | | | $ | (76,137) | | | $ | 234,324 | | | $ | 757,610 | | | $ | (76,137) | | | $ | 681,473 | | | | | | | | | | | | | | | For the three months ended June 30, 2023 | | | | | | | | | | | Balances, March 31, 2023 | | $ | 295,200 | | | $ | (68,385) | | | $ | 226,815 | | | $ | 775,643 | | | $ | (68,385) | | | $ | 707,258 | | Net income | | 21,575 | | | (5,040) | | | 16,535 | | | 21,575 | | | (5,040) | | | 16,535 | | Balances, June 30, 2023 | | $ | 307,888 | | | $ | (73,425) | | | $ | 234,463 | | | $ | 776,821 | | | $ | (73,425) | | | $ | 703,396 | | For the six months ended June 30, 2023 | | | | | | | | | | | Balances, December 31, 2022 | | $ | 282,405 | | | $ | (62,435) | | | $ | 219,970 | | | $ | 758,574 | | | $ | (62,435) | | | $ | 696,139 | | Net income | | 43,347 | | | (10,990) | | | 32,357 | | | 43,347 | | | (10,990) | | | 32,357 | | Balances, June 30, 2023 | | $ | 307,888 | | | $ | (73,425) | | | $ | 234,463 | | | $ | 776,821 | | | $ | (73,425) | | | $ | 703,396 | | | | | | | | | | | | | | | For the three months ended March 31, 2023 | | | | | | | | | | | Balances, December 31, 2022 | | 282,405 | | | (62,435) | | | 219,970 | | | 758,574 | | | (62,435) | | | 696,139 | | Net income | | 21,772 | | | (5,950) | | | 15,822 | | | 21,772 | | | (5,950) | | | 15,822 | | Balances, March 31, 2023 | | 295,200 | | | (68,385) | | | 226,815 | | | 775,643 | | | (68,385) | | | 707,258 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Restated Consolidated Statements of Cash Flows (unaudited) | | | | | | | | | | | | | | | | Nine Months Ended | | Six Months Ended | | | September 30, 2024 | | June 30, 2024 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | $ | 39,111 | | | $ | 29,702 | | | $ | 68,813 | | | $ | 20,635 | | | $ | 27,747 | | | $ | 48,382 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | Provision for credit losses | | 35,800 | | | 10,349 | | | 46,149 | | | 30,800 | | | (2,576) | | | 28,224 | | Net change in operating assets and liabilities: | | | | | | | | | | | | | Accrued interest receivable | | (2,165) | | | 1,261 | | | (904) | | | (822) | | | 840 | | | 18 | | Credit enhancement asset | | — | | | (5,244) | | | (5,244) | | | — | | | (2,813) | | | (2,813) | | Other assets | | 5,203 | | | 6,914 | | | 12,117 | | | (16,278) | | | 6,458 | | | (9,820) | | Accrued expenses and other liabilities | | (13,501) | | | (174) | | | (13,675) | | | (4,676) | | | (125) | | | (4,801) | | Net cash provided by operating activities | | 78,214 | | | 42,808 | | | 121,022 | | | 44,983 | | | 29,531 | | | 74,514 | | Cash flows from investing activities: | | | | | | | | | | | | | Net decrease in loans | | 348,351 | | | (42,808) | | | 305,543 | | | 257,249 | | | (29,531) | | | 227,718 | | Net cash provided by (used in) investing activities | | $ | 75,020 | | | $ | (42,808) | | | $ | 32,212 | | | $ | 63,892 | | | $ | (29,531) | | | $ | 34,361 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | March 31, 2024 | | September 30, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | $ | 13,885 | | | $ | 8,778 | | | $ | 22,663 | | | $ | 54,749 | | | $ | (13,702) | | | $ | 41,047 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | Provision for credit losses | | 14,000 | | | 5,942 | | | 19,942 | | | 14,182 | | | 52,278 | | | 66,460 | | Net change in operating assets and liabilities: | | | | | | | | | | | | | Accrued interest receivable | | (997) | | | 428 | | | (569) | | | (3,970) | | | (254) | | | (4,224) | | Credit enhancement asset | | — | | | (980) | | | (980) | | | — | | | (2,098) | | | (2,098) | | Other assets | | 1,034 | | | 2,044 | | | 3,078 | | | (58,408) | | | (6,005) | | | (64,413) | | Accrued expenses and other liabilities | | (5,100) | | | (57) | | | (5,157) | | | 30,874 | | | (40) | | | 30,834 | | Net cash provided by operating activities | | 26,917 | | | 16,155 | | | 43,072 | | | 67,283 | | | 30,179 | | | 97,462 | | Cash flows from investing activities: | | | | | | | | | | | | | Net decrease (increase) in loans | | 163,694 | | | (16,155) | | | 147,539 | | | (6,195) | | | (30,179) | | | (36,374) | | Net cash provided by (used in) investing activities | | $ | 43,069 | | | $ | (16,155) | | | $ | 26,914 | | | $ | (143,849) | | | $ | (30,179) | | | $ | (174,028) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | Three Months Ended | | | June 30, 2023 | | March 31, 2023 | (dollars in thousands) | | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Restated | Net income | | $ | 43,347 | | | $ | (10,990) | | | $ | 32,357 | | | $ | 21,772 | | | $ | (5,950) | | | $ | 15,822 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | Provision for credit losses | | 9,014 | | | 35,084 | | | 44,098 | | | 3,135 | | | 19,147 | | | 22,282 | | Net change in operating assets and liabilities: | | | | | | | | | | | | | Accrued interest receivable | | (687) | | | (378) | | | (1,065) | | | (221) | | | (145) | | | (366) | | Credit enhancement asset | | — | | | (1,707) | | | (1,707) | | | — | | | (946) | | | (946) | | Other assets | | (11,380) | | | (4,817) | | | (16,197) | | | 4,423 | | | (2,608) | | | 1,815 | | Accrued expenses and other liabilities | | 9,995 | | | — | | | 9,995 | | | (14,949) | | | — | | | (14,949) | | Net cash provided by operating activities | | 60,803 | | | 17,192 | | | 77,995 | | | 16,008 | | | 9,498 | | | 25,506 | | Cash flows from investing activities: | | | | | | | | | | | | | Net increase in loans | | (76,502) | | | (17,192) | | | (93,694) | | | (49,923) | | | (9,498) | | | (59,421) | | Net cash used in investing activities | | $ | (185,892) | | | $ | (17,192) | | | $ | (203,084) | | | $ | (98,412) | | | $ | (9,498) | | | $ | (107,910) | |
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