California | 20-8859754 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||||||||
504 Redwood Blvd. | Suite 100 | Novato | CA | 94947 | |||||||||||||
(Address of principal executive office) | (Zip Code) |
Securities registered pursuant to 12(b) of the Act: | ||||||||
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common stock, no par value and attached Share Purchase Rights | BMRC | The Nasdaq Stock Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
PART I | ||||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
(in thousands, except share data; unaudited) | (in thousands, except share data; unaudited) | June 30, 2022 | December 31, 2021 | (in thousands, except share data; unaudited) | September 30, 2022 | December 31, 2021 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash | $ | 115,905 | $ | 347,641 | Cash, cash equivalents and restricted cash | $ | 185,552 | $ | 347,641 | ||||||
Investment securities | Investment securities | Investment securities | ||||||||||||||
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at June 30, 2022 and December 31, 2021) | 931,587 | 342,222 | ||||||||||||||
Available-for-sale, at fair value (net of zero allowance for credit losses at June 30, 2022 and December 31, 2021) | 893,149 | 1,167,568 | ||||||||||||||
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at September 30, 2022 and December 31, 2021) | Held-to-maturity, at amortized cost (net of zero allowance for credit losses at September 30, 2022 and December 31, 2021) | 959,867 | 342,222 | |||||||||||||
Available-for-sale, at fair value (net of zero allowance for credit losses at September 30, 2022 and December 31, 2021) | Available-for-sale, at fair value (net of zero allowance for credit losses at September 30, 2022 and December 31, 2021) | 812,493 | 1,167,568 | |||||||||||||
Total investment securities | Total investment securities | 1,824,736 | 1,509,790 | Total investment securities | 1,772,360 | 1,509,790 | ||||||||||
Loans, at amortized cost | Loans, at amortized cost | 2,162,632 | 2,255,645 | Loans, at amortized cost | 2,158,336 | 2,255,645 | ||||||||||
Allowance for credit losses on loans | Allowance for credit losses on loans | (22,539) | (23,023) | Allowance for credit losses on loans | (22,963) | (23,023) | ||||||||||
Loans, net of allowance for credit losses on loans | Loans, net of allowance for credit losses on loans | 2,140,093 | 2,232,622 | Loans, net of allowance for credit losses on loans | 2,135,373 | 2,232,622 | ||||||||||
Goodwill | Goodwill | 72,754 | 72,754 | Goodwill | 72,754 | 72,754 | ||||||||||
Bank-owned life insurance | Bank-owned life insurance | 61,834 | 61,473 | Bank-owned life insurance | 62,056 | 61,473 | ||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 22,353 | 23,604 | Operating lease right-of-use assets | 25,006 | 23,604 | ||||||||||
Bank premises and equipment, net | Bank premises and equipment, net | 7,067 | 7,558 | Bank premises and equipment, net | 7,102 | 7,558 | ||||||||||
Core deposit intangible, net | Core deposit intangible, net | 5,851 | 6,605 | Core deposit intangible, net | 5,481 | 6,605 | ||||||||||
Other real estate owned | Other real estate owned | 800 | 800 | Other real estate owned | 455 | 800 | ||||||||||
Interest receivable and other assets | Interest receivable and other assets | 75,511 | 51,362 | Interest receivable and other assets | 82,514 | 51,362 | ||||||||||
Total assets | Total assets | $ | 4,326,904 | $ | 4,314,209 | Total assets | $ | 4,348,653 | $ | 4,314,209 | ||||||
Liabilities and Stockholders' Equity | Liabilities and Stockholders' Equity | Liabilities and Stockholders' Equity | ||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Deposits | Deposits | Deposits | ||||||||||||||
Non-interest bearing | Non-interest bearing | $ | 2,034,717 | $ | 1,910,240 | Non-interest bearing | $ | 2,051,975 | $ | 1,910,240 | ||||||
Interest bearing | Interest bearing | Interest bearing | ||||||||||||||
Transaction accounts | Transaction accounts | 297,871 | 290,813 | Transaction accounts | 293,722 | 290,813 | ||||||||||
Savings accounts | Savings accounts | 343,585 | 340,959 | Savings accounts | 342,630 | 340,959 | ||||||||||
Money market accounts | Money market accounts | 1,012,823 | 1,116,303 | Money market accounts | 1,074,568 | 1,116,303 | ||||||||||
Time accounts | Time accounts | 141,674 | 150,235 | Time accounts | 139,815 | 150,235 | ||||||||||
Total deposits | Total deposits | 3,830,670 | 3,808,550 | Total deposits | 3,902,710 | 3,808,550 | ||||||||||
Borrowings and other obligations | Borrowings and other obligations | 356 | 419 | Borrowings and other obligations | 365 | 419 | ||||||||||
Operating lease liabilities | Operating lease liabilities | 24,117 | 25,429 | Operating lease liabilities | 26,744 | 25,429 | ||||||||||
Interest payable and other liabilities | Interest payable and other liabilities | 62,188 | 29,443 | Interest payable and other liabilities | 22,242 | 29,443 | ||||||||||
Total liabilities | Total liabilities | 3,917,331 | 3,863,841 | Total liabilities | 3,952,061 | 3,863,841 | ||||||||||
Commitments and contingent liabilities (Note 8) | Commitments and contingent liabilities (Note 8) | 0 | Commitments and contingent liabilities (Note 8) | |||||||||||||
Stockholders' Equity | Stockholders' Equity | Stockholders' Equity | ||||||||||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | — | — | Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | — | — | ||||||||||
Common stock, no par value, Authorized - 30,000,000 shares; issued and outstanding - 16,009,600 and 15,929,243 at June 30, 2022 and December 31, 2021, respectively | 213,864 | 212,524 | ||||||||||||||
Common stock, no par value, Authorized - 30,000,000 shares; issued and outstanding - 16,029,048 and 15,929,243 at September 30, 2022 and December 31, 2021, respectively | Common stock, no par value, Authorized - 30,000,000 shares; issued and outstanding - 16,029,048 and 15,929,243 at September 30, 2022 and December 31, 2021, respectively | 214,720 | 212,524 | |||||||||||||
Retained earnings | Retained earnings | 253,737 | 239,868 | Retained earnings | 261,907 | 239,868 | ||||||||||
Accumulated other comprehensive loss, net of taxes | Accumulated other comprehensive loss, net of taxes | (58,028) | (2,024) | Accumulated other comprehensive loss, net of taxes | (80,035) | (2,024) | ||||||||||
Total stockholders' equity | Total stockholders' equity | 409,573 | 450,368 | Total stockholders' equity | 396,592 | 450,368 | ||||||||||
Total liabilities and stockholders' equity | Total liabilities and stockholders' equity | $ | 4,326,904 | $ | 4,314,209 | Total liabilities and stockholders' equity | $ | 4,348,653 | $ | 4,314,209 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts; unaudited) | (in thousands, except per share amounts; unaudited) | June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | (in thousands, except per share amounts; unaudited) | September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||
Interest income | Interest income | Interest income | ||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | Interest and fees on loans | $ | 23,334 | $ | 23,677 | $ | 21,429 | $ | 47,011 | $ | 42,090 | Interest and fees on loans | $ | 23,357 | $ | 23,334 | $ | 24,027 | $ | 70,368 | $ | 66,117 | ||||||||||||||||||
Interest on investment securities | Interest on investment securities | 8,273 | 6,693 | 3,504 | 14,966 | 6,633 | Interest on investment securities | 9,674 | 8,273 | 4,084 | 24,640 | 10,717 | ||||||||||||||||||||||||||||
Interest on federal funds sold and due from banks | Interest on federal funds sold and due from banks | 180 | 106 | 54 | 286 | 96 | Interest on federal funds sold and due from banks | 546 | 180 | 178 | 832 | 274 | ||||||||||||||||||||||||||||
Total interest income | Total interest income | 31,787 | 30,476 | 24,987 | 62,263 | 48,819 | Total interest income | 33,577 | 31,787 | 28,289 | 95,840 | 77,108 | ||||||||||||||||||||||||||||
Interest expense | Interest expense | Interest expense | ||||||||||||||||||||||||||||||||||||||
Interest on interest-bearing transaction accounts | Interest on interest-bearing transaction accounts | 53 | 56 | 39 | 109 | 78 | Interest on interest-bearing transaction accounts | 121 | 53 | 41 | 230 | 119 | ||||||||||||||||||||||||||||
Interest on savings accounts | Interest on savings accounts | 32 | 29 | 21 | 61 | 40 | Interest on savings accounts | 32 | 32 | 26 | 93 | 66 | ||||||||||||||||||||||||||||
Interest on money market accounts | Interest on money market accounts | 438 | 478 | 312 | 916 | 598 | Interest on money market accounts | 268 | 438 | 417 | 1,184 | 1,015 | ||||||||||||||||||||||||||||
Interest on time accounts | Interest on time accounts | 67 | 14 | 81 | 81 | 177 | Interest on time accounts | 128 | 67 | 44 | 209 | 221 | ||||||||||||||||||||||||||||
Interest on borrowings and other obligations | Interest on borrowings and other obligations | — | 1 | — | 1 | — | Interest on borrowings and other obligations | 1 | — | 8 | 2 | 8 | ||||||||||||||||||||||||||||
Interest on subordinated debenture | Interest on subordinated debenture | — | — | — | — | 1,361 | Interest on subordinated debenture | — | — | — | — | 1,361 | ||||||||||||||||||||||||||||
Total interest expense | Total interest expense | 590 | 578 | 453 | 1,168 | 2,254 | Total interest expense | 550 | 590 | 536 | 1,718 | 2,790 | ||||||||||||||||||||||||||||
Net interest income | Net interest income | 31,197 | 29,898 | 24,534 | 61,095 | 46,565 | Net interest income | 33,027 | 31,197 | 27,753 | 94,122 | 74,318 | ||||||||||||||||||||||||||||
Reversal of credit losses on loans | — | (485) | (920) | (485) | (3,849) | |||||||||||||||||||||||||||||||||||
Provision for (reversal of) credit losses on loans | Provision for (reversal of) credit losses on loans | 422 | — | 1,800 | (63) | (2,049) | ||||||||||||||||||||||||||||||||||
Reversal of credit losses on unfunded loan commitments | Reversal of credit losses on unfunded loan commitments | — | (318) | (612) | (318) | (1,202) | Reversal of credit losses on unfunded loan commitments | — | — | — | (318) | (1,202) | ||||||||||||||||||||||||||||
Net interest income after reversal of credit losses | 31,197 | 30,701 | 26,066 | 61,898 | 51,616 | |||||||||||||||||||||||||||||||||||
Net interest income after provision for (reversal of) credit losses | Net interest income after provision for (reversal of) credit losses | 32,605 | 31,197 | 25,953 | 94,503 | 77,569 | ||||||||||||||||||||||||||||||||||
Non-interest income | Non-interest income | Non-interest income | ||||||||||||||||||||||||||||||||||||||
Wealth Management and Trust Services | Wealth Management and Trust Services | 630 | 600 | 530 | 1,230 | 1,018 | Wealth Management and Trust Services | 507 | 630 | 597 | 1,737 | 1,615 | ||||||||||||||||||||||||||||
Debit card interchange fees, net | Debit card interchange fees, net | 531 | 505 | 419 | 1,036 | 785 | Debit card interchange fees, net | 502 | 531 | 483 | 1,538 | 1,268 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | Service charges on deposit accounts | 465 | 488 | 317 | 953 | 598 | Service charges on deposit accounts | 535 | 465 | 464 | 1,488 | 1,062 | ||||||||||||||||||||||||||||
Earnings on bank-owned life insurance, net | Earnings on bank-owned life insurance, net | 298 | 413 | 233 | 711 | 490 | Earnings on bank-owned life insurance, net | 222 | 298 | 1,402 | 933 | 1,892 | ||||||||||||||||||||||||||||
Dividends on Federal Home Loan Bank stock | Dividends on Federal Home Loan Bank stock | 249 | 259 | 177 | 508 | 326 | Dividends on Federal Home Loan Bank stock | 251 | 249 | 179 | 759 | 505 | ||||||||||||||||||||||||||||
Merchant interchange fees, net | Merchant interchange fees, net | 149 | 140 | 61 | 289 | 118 | Merchant interchange fees, net | 141 | 149 | 129 | 430 | 247 | ||||||||||||||||||||||||||||
(Losses) gains on sale of investment securities, net | (Losses) gains on sale of investment securities, net | (63) | — | 1 | (63) | 1 | ||||||||||||||||||||||||||||||||||
Other income | Other income | 406 | 462 | 285 | 868 | 513 | Other income | 628 | 406 | 310 | 1,496 | 823 | ||||||||||||||||||||||||||||
Total non-interest income | Total non-interest income | 2,728 | 2,867 | 2,022 | 5,595 | 3,848 | Total non-interest income | 2,723 | 2,728 | 3,565 | 8,318 | 7,413 | ||||||||||||||||||||||||||||
Non-interest expense | Non-interest expense | Non-interest expense | ||||||||||||||||||||||||||||||||||||||
Salaries and related benefits | Salaries and related benefits | 10,341 | 11,548 | 8,888 | 21,889 | 18,096 | Salaries and related benefits | 10,557 | 10,341 | 13,127 | 32,446 | 31,223 | ||||||||||||||||||||||||||||
Occupancy and equipment | Occupancy and equipment | 1,894 | 1,909 | 1,751 | 3,803 | 3,502 | Occupancy and equipment | 1,941 | 1,891 | 1,871 | 5,739 | 5,373 | ||||||||||||||||||||||||||||
Data processing | Data processing | 1,199 | 1,277 | 820 | 2,476 | 1,639 | Data processing | 1,093 | 1,199 | 1,613 | 3,569 | 3,252 | ||||||||||||||||||||||||||||
Professional services | Professional services | 665 | 913 | 986 | 1,578 | 1,849 | Professional services | 736 | 665 | 2,472 | 2,314 | 4,321 | ||||||||||||||||||||||||||||
Information technology | Information technology | 468 | 478 | 296 | 946 | 609 | Information technology | 573 | 468 | 496 | 1,519 | 1,105 | ||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 393 | 452 | 389 | 845 | 848 | Depreciation and amortization | 414 | 393 | 431 | 1,259 | 1,279 | ||||||||||||||||||||||||||||
Amortization of core deposit intangible | Amortization of core deposit intangible | 374 | 380 | 204 | 754 | 408 | Amortization of core deposit intangible | 370 | 374 | 334 | 1,124 | 742 | ||||||||||||||||||||||||||||
Federal Deposit Insurance Corporation insurance | Federal Deposit Insurance Corporation insurance | 300 | 296 | 236 | 886 | 597 | ||||||||||||||||||||||||||||||||||
Directors' expense | Directors' expense | 294 | 311 | 230 | 605 | 405 | Directors' expense | 233 | 294 | 255 | 838 | 660 | ||||||||||||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 296 | 290 | 182 | 586 | 361 | |||||||||||||||||||||||||||||||||||
Charitable contributions | Charitable contributions | 511 | 45 | 462 | 556 | 493 | Charitable contributions | 49 | 511 | 4 | 605 | 497 | ||||||||||||||||||||||||||||
Other real estate owned | Other real estate owned | 350 | 3 | — | 355 | — | ||||||||||||||||||||||||||||||||||
Other expense | Other expense | 2,471 | 1,772 | 1,348 | 4,243 | 2,758 | Other expense | 2,062 | 2,471 | 1,847 | 6,305 | 4,605 | ||||||||||||||||||||||||||||
Total non-interest expense | Total non-interest expense | 18,906 | 19,375 | 15,556 | 38,281 | 30,968 | Total non-interest expense | 18,678 | 18,906 | 22,686 | 56,959 | 53,654 | ||||||||||||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 15,019 | 14,193 | 12,532 | 29,212 | 24,496 | Income before provision for income taxes | 16,650 | 15,019 | 6,832 | 45,862 | 31,328 | ||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 3,953 | 3,728 | 3,247 | 7,681 | 6,264 | Provision for income taxes | 4,476 | 3,953 | 1,550 | 12,157 | 7,814 | ||||||||||||||||||||||||||||
Net income | Net income | $ | 11,066 | $ | 10,465 | $ | 9,285 | $ | 21,531 | $ | 18,232 | Net income | $ | 12,174 | $ | 11,066 | $ | 5,282 | $ | 33,705 | $ | 23,514 | ||||||||||||||||||
Net income per common share: | Net income per common share: | Net income per common share: | ||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.70 | $ | 0.66 | $ | 0.71 | $ | 1.35 | $ | 1.38 | Basic | $ | 0.76 | $ | 0.70 | $ | 0.35 | $ | 2.12 | $ | 1.70 | ||||||||||||||||||
Diluted | Diluted | $ | 0.69 | $ | 0.66 | $ | 0.71 | $ | 1.35 | $ | 1.37 | Diluted | $ | 0.76 | $ | 0.69 | $ | 0.35 | $ | 2.11 | $ | 1.69 | ||||||||||||||||||
Weighted average shares: | Weighted average shares: | Weighted average shares: | ||||||||||||||||||||||||||||||||||||||
Basic | Basic | 15,921 | 15,876 | 13,092 | 15,898 | 13,227 | Basic | 15,939 | 15,921 | 14,922 | 15,912 | 13,798 | ||||||||||||||||||||||||||||
Diluted | Diluted | 15,955 | 15,946 | 13,164 | 15,950 | 13,316 | Diluted | 15,974 | 15,955 | 14,993 | 15,959 | 13,881 | ||||||||||||||||||||||||||||
Comprehensive (loss) income: | Comprehensive (loss) income: | Comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 11,066 | $ | 10,465 | $ | 9,285 | $ | 21,531 | $ | 18,232 | Net income | $ | 12,174 | $ | 11,066 | $ | 5,282 | $ | 33,705 | $ | 23,514 | ||||||||||||||||||
Other comprehensive (loss) income: | Other comprehensive (loss) income: | Other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized (losses) gains on available-for-sale securities | Change in net unrealized (losses) gains on available-for-sale securities | (27,050) | (38,228) | 2,798 | (65,278) | (6,284) | Change in net unrealized (losses) gains on available-for-sale securities | (31,816) | (27,050) | (2,274) | (97,094) | (8,558) | ||||||||||||||||||||||||||||
Reclassification adjustment for losses (gains) on available-for-sale securities included in net income | Reclassification adjustment for losses (gains) on available-for-sale securities included in net income | 63 | — | (1) | 63 | (1) | ||||||||||||||||||||||||||||||||||
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | — | (14,847) | — | (14,847) | — | Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | — | — | — | (14,847) | — | ||||||||||||||||||||||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 472 | 144 | 138 | 616 | 281 | Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 510 | 472 | 104 | 1,126 | 385 | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | (26,578) | (52,931) | 2,936 | (79,509) | (6,003) | |||||||||||||||||||||||||||||||||||
Deferred tax (benefit) expense | (7,857) | (15,648) | 864 | (23,505) | (1,780) | |||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (18,721) | (37,283) | 2,072 | (56,004) | (4,223) | |||||||||||||||||||||||||||||||||||
Other comprehensive loss, before tax | Other comprehensive loss, before tax | (31,243) | (26,578) | (2,171) | (110,752) | (8,174) | ||||||||||||||||||||||||||||||||||
Deferred tax benefit | Deferred tax benefit | (9,236) | (7,857) | (641) | (32,741) | (2,421) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | (22,007) | (18,721) | (1,530) | (78,011) | (5,753) | ||||||||||||||||||||||||||||||||||
Total comprehensive (loss) income | Total comprehensive (loss) income | $ | (7,655) | $ | (26,818) | $ | 11,357 | $ | (34,473) | $ | 14,009 | Total comprehensive (loss) income | $ | (9,833) | $ | (7,655) | $ | 3,752 | $ | (44,306) | $ | 17,761 |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
For the three months ended |
(in thousands, except share data; unaudited) | (in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | (in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | 16,003,847 | $ | 213,204 | $ | 246,511 | $ | (39,307) | $ | 420,408 | |||||||||||||||||||||||||
Balance at July 1, 2022 | Balance at July 1, 2022 | 16,009,600 | $ | 213,864 | $ | 253,737 | $ | (58,028) | $ | 409,573 | ||||||||||||||||||||||||
Net income | Net income | — | — | 11,066 | — | 11,066 | Net income | — | — | 12,174 | — | 12,174 | ||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | (18,721) | (18,721) | Other comprehensive loss, net of tax | — | — | — | (22,007) | (22,007) | ||||||||||||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 4,768 | 81 | — | — | 81 | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 363 | — | — | — | — | ||||||||||||||||||||||
Stock issued under employee stock purchase plan | Stock issued under employee stock purchase plan | 936 | 30 | — | — | 30 | Stock issued under employee stock purchase plan | 574 | 16 | — | — | 16 | ||||||||||||||||||||||
Stock issued under employee stock ownership plan | Stock issued under employee stock ownership plan | 13,000 | 412 | — | — | 412 | Stock issued under employee stock ownership plan | 13,000 | 404 | — | — | 404 | ||||||||||||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | (333) | (11) | — | — | (11) | |||||||||||||||||||||||||||||
Restricted stock forfeited / cancelled | (12,618) | — | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation - stock options | Stock-based compensation - stock options | — | 29 | — | — | 29 | Stock-based compensation - stock options | — | 106 | — | — | 106 | ||||||||||||||||||||||
Stock-based compensation - restricted stock | Stock-based compensation - restricted stock | — | 119 | — | — | 119 | Stock-based compensation - restricted stock | — | 151 | — | — | 151 | ||||||||||||||||||||||
Cash dividends paid on common stock ($0.24 per share) | — | — | (3,840) | — | (3,840) | |||||||||||||||||||||||||||||
Cash dividends paid on common stock ($0.25 per share) | Cash dividends paid on common stock ($0.25 per share) | — | — | (4,004) | — | (4,004) | ||||||||||||||||||||||||||||
Stock purchased by directors under director stock plan | Stock purchased by directors under director stock plan | 515 | 16 | — | — | 16 | ||||||||||||||||||||||||||||
Stock issued in payment of director fees | Stock issued in payment of director fees | 4,996 | 163 | — | — | 163 | ||||||||||||||||||||||||||||
Balance at September 30, 2022 | Balance at September 30, 2022 | 16,029,048 | $ | 214,720 | $ | 261,907 | $ | (80,035) | $ | 396,592 | ||||||||||||||||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 16,009,600 | $ | 213,864 | $ | 253,737 | $ | (58,028) | $ | 409,573 | |||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
Balance at April 1, 2021 | 13,326,509 | $ | 118,386 | $ | 225,600 | $ | 6,306 | $ | 350,292 | |||||||||||||||||||||||||
Balance at July 1, 2021 | Balance at July 1, 2021 | 13,055,105 | $ | 108,430 | $ | 231,841 | $ | 8,378 | $ | 348,649 | ||||||||||||||||||||||||
Net income | Net income | — | — | 9,285 | — | 9,285 | Net income | — | — | 5,282 | — | 5,282 | ||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | 2,072 | 2,072 | Other comprehensive income, net of tax | — | — | — | (1,530) | (1,530) | ||||||||||||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 14,000 | 314 | — | — | 314 | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 3,098 | 72 | — | — | 72 | ||||||||||||||||||||||
Stock issued under employee stock purchase plan | Stock issued under employee stock purchase plan | 831 | 25 | — | — | 25 | Stock issued under employee stock purchase plan | 508 | 18 | — | — | 18 | ||||||||||||||||||||||
Stock issued under employee stock ownership plan | Stock issued under employee stock ownership plan | 9,300 | 336 | — | — | 336 | Stock issued under employee stock ownership plan | 9,100 | 332 | — | — | 332 | ||||||||||||||||||||||
Restricted stock granted | 2,400 | — | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation - stock options | Stock-based compensation - stock options | — | 28 | — | — | 28 | Stock-based compensation - stock options | — | 115 | — | — | 115 | ||||||||||||||||||||||
Stock-based compensation - restricted stock | Stock-based compensation - restricted stock | — | 95 | — | — | 95 | Stock-based compensation - restricted stock | — | 98 | — | — | 98 | ||||||||||||||||||||||
Cash dividends paid on common stock ($0.23 per share) | — | — | (3,044) | — | (3,044) | |||||||||||||||||||||||||||||
Cash dividends paid on common stock ($0.24 per share) | Cash dividends paid on common stock ($0.24 per share) | — | — | (3,126) | — | (3,126) | ||||||||||||||||||||||||||||
Stock purchased by directors under director stock plan | Stock purchased by directors under director stock plan | 515 | 17 | — | — | 17 | ||||||||||||||||||||||||||||
Stock issued in payment of director fees | Stock issued in payment of director fees | 3,063 | 99 | — | — | 99 | ||||||||||||||||||||||||||||
Stock issued to American River Bankshares shareholders | Stock issued to American River Bankshares shareholders | 3,441,235 | 124,401 | — | — | 124,401 | ||||||||||||||||||||||||||||
Stock repurchased, including commissions | Stock repurchased, including commissions | (297,935) | (10,754) | — | — | (10,754) | Stock repurchased, including commissions | (445,735) | (15,902) | — | — | (15,902) | ||||||||||||||||||||||
Balance at June 30, 2021 | 13,055,105 | $ | 108,430 | $ | 231,841 | $ | 8,378 | $ | 348,649 | |||||||||||||||||||||||||
Balance at September 30, 2021 | Balance at September 30, 2021 | 16,066,889 | $ | 217,680 | $ | 233,997 | $ | 6,848 | $ | 458,525 |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
For the six months ended June 30, 2022 and 2021 | ||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2022 and 2021 | For the nine months ended September 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||
(in thousands, except share data; unaudited) | (in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | (in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | Balance at January 1, 2022 | 15,929,243 | $ | 212,524 | $ | 239,868 | $ | (2,024) | $ | 450,368 | Balance at January 1, 2022 | 15,929,243 | $ | 212,524 | $ | 239,868 | $ | (2,024) | $ | 450,368 | ||||||||||||||
Net income | Net income | — | — | 21,531 | — | 21,531 | Net income | — | — | 33,705 | — | 33,705 | ||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | (56,004) | (56,004) | Other comprehensive loss, net of tax | — | — | — | (78,011) | (78,011) | ||||||||||||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 40,311 | 820 | — | — | 820 | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 40,674 | 821 | — | — | 821 | ||||||||||||||||||||||
Stock issued under employee stock purchase plan | Stock issued under employee stock purchase plan | 936 | 30 | — | — | 30 | Stock issued under employee stock purchase plan | 1,510 | 46 | — | — | 46 | ||||||||||||||||||||||
Stock issued under employee stock ownership plan | Stock issued under employee stock ownership plan | 25,000 | 829 | — | — | 829 | Stock issued under employee stock ownership plan | 38,000 | 1,233 | — | — | 1,233 | ||||||||||||||||||||||
Restricted stock granted | Restricted stock granted | 46,672 | — | — | — | — | Restricted stock granted | 46,672 | — | — | — | — | ||||||||||||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | Restricted stock surrendered for tax withholdings upon vesting | (1,169) | (40) | — | — | (40) | Restricted stock surrendered for tax withholdings upon vesting | (1,169) | (40) | — | — | (40) | ||||||||||||||||||||||
Restricted stock forfeited / cancelled | Restricted stock forfeited / cancelled | (13,267) | — | — | — | — | Restricted stock forfeited / cancelled | (13,267) | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation - stock options | Stock-based compensation - stock options | — | 115 | — | — | 115 | Stock-based compensation - stock options | — | 221 | — | — | 221 | ||||||||||||||||||||||
Stock-based compensation - restricted stock | Stock-based compensation - restricted stock | — | 270 | — | — | 270 | Stock-based compensation - restricted stock | — | 421 | — | — | 421 | ||||||||||||||||||||||
Cash dividends paid on common stock ($0.48 per share) | — | — | (7,662) | — | (7,662) | |||||||||||||||||||||||||||||
Cash dividends paid on common stock ($0.73 per share) | Cash dividends paid on common stock ($0.73 per share) | — | — | (11,666) | — | (11,666) | ||||||||||||||||||||||||||||
Stock purchased by directors under director stock plan | Stock purchased by directors under director stock plan | 515 | 16 | — | — | 16 | ||||||||||||||||||||||||||||
Stock issued in payment of director fees | Stock issued in payment of director fees | 5,149 | 193 | — | — | 193 | Stock issued in payment of director fees | 10,145 | 355 | — | — | 355 | ||||||||||||||||||||||
Stock repurchased, net of commissions | (23,275) | (877) | — | — | (877) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 16,009,600 | $ | 213,864 | $ | 253,737 | $ | (58,028) | $ | 409,573 | |||||||||||||||||||||||||
Stock repurchased, including commissions | Stock repurchased, including commissions | (23,275) | (877) | — | — | (877) | ||||||||||||||||||||||||||||
Balance at September 30, 2022 | Balance at September 30, 2022 | 16,029,048 | $ | 214,720 | $ | 261,907 | $ | (80,035) | $ | 396,592 | ||||||||||||||||||||||||
Six months ended June 30, 2021 | Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | Balance at January 1, 2021 | 13,500,453 | $ | 125,905 | $ | 219,747 | $ | 12,601 | $ | 358,253 | Balance at January 1, 2021 | 13,500,453 | $ | 125,905 | $ | 219,747 | $ | 12,601 | $ | 358,253 | ||||||||||||||
Net income | Net income | — | — | 18,232 | — | 18,232 | Net income | — | — | 23,514 | — | 23,514 | ||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | (4,223) | (4,223) | Other comprehensive loss, net of tax | — | — | — | (5,753) | (5,753) | ||||||||||||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 31,180 | 351 | — | — | 351 | Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 34,278 | 423 | — | — | 423 | ||||||||||||||||||||||
Stock issued under employee stock purchase plan | Stock issued under employee stock purchase plan | 1,609 | 53 | — | — | 53 | Stock issued under employee stock purchase plan | 2,117 | 72 | — | — | 72 | ||||||||||||||||||||||
Stock issued under employee stock ownership plan | Stock issued under employee stock ownership plan | 18,300 | 668 | — | — | 668 | Stock issued under employee stock ownership plan | 27,400 | 999 | — | — | 999 | ||||||||||||||||||||||
Restricted stock granted | Restricted stock granted | 29,454 | — | — | — | — | Restricted stock granted | 29,454 | — | — | — | — | ||||||||||||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | Restricted stock surrendered for tax withholdings upon vesting | (3,961) | (156) | — | — | (156) | Restricted stock surrendered for tax withholdings upon vesting | (3,961) | (156) | — | — | (156) | ||||||||||||||||||||||
Restricted stock forfeited / cancelled | Restricted stock forfeited / cancelled | (3,848) | — | — | — | — | Restricted stock forfeited / cancelled | (3,848) | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation - stock options | Stock-based compensation - stock options | — | 200 | — | — | 200 | Stock-based compensation - stock options | — | 315 | — | — | 315 | ||||||||||||||||||||||
Stock-based compensation - restricted stock | Stock-based compensation - restricted stock | — | 538 | — | — | 538 | Stock-based compensation - restricted stock | — | 636 | — | — | 636 | ||||||||||||||||||||||
Cash dividends paid on common stock ($0.46 per share) | — | — | (6,138) | — | (6,138) | |||||||||||||||||||||||||||||
Cash dividends paid on common stock ($0.70 per share) | Cash dividends paid on common stock ($0.70 per share) | — | — | (9,264) | — | (9,264) | ||||||||||||||||||||||||||||
Stock purchased by directors under director stock plan | Stock purchased by directors under director stock plan | 519 | 18 | — | — | 18 | Stock purchased by directors under director stock plan | 1,034 | 34 | — | — | 34 | ||||||||||||||||||||||
Stock issued in payment of director fees | Stock issued in payment of director fees | 3,347 | 117 | — | — | 117 | Stock issued in payment of director fees | 6,410 | 216 | — | — | 216 | ||||||||||||||||||||||
Stock repurchased, net of commissions | (521,948) | (19,264) | — | — | (19,264) | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | 13,055,105 | $ | 108,430 | $ | 231,841 | $ | 8,378 | $ | 348,649 | |||||||||||||||||||||||||
Stock issued to American River Bankshares shareholders | Stock issued to American River Bankshares shareholders | 3,441,235 | 124,401 | — | — | 124,401 | ||||||||||||||||||||||||||||
Stock repurchased, including commissions | Stock repurchased, including commissions | (967,683) | (35,165) | — | — | (35,165) | ||||||||||||||||||||||||||||
Balance at September 30, 2021 | Balance at September 30, 2021 | 16,066,889 | $ | 217,680 | $ | 233,997 | $ | 6,848 | $ | 458,525 | ||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements (unaudited). | The accompanying notes are an integral part of these consolidated financial statements (unaudited). | The accompanying notes are an integral part of these consolidated financial statements (unaudited). |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
For the |
(in thousands; unaudited) | (in thousands; unaudited) | June 30, 2022 | June 30, 2021 | (in thousands; unaudited) | 2022 | 2021 | ||||||||||
Cash Flows from Operating Activities: | Cash Flows from Operating Activities: | Cash Flows from Operating Activities: | ||||||||||||||
Net income | Net income | $ | 21,531 | $ | 18,232 | Net income | $ | 33,705 | $ | 23,514 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Reversal of credit losses on loans | Reversal of credit losses on loans | (485) | (3,849) | Reversal of credit losses on loans | (63) | (2,049) | ||||||||||
Reversal of credit losses on unfunded loan commitments | Reversal of credit losses on unfunded loan commitments | (318) | (1,202) | Reversal of credit losses on unfunded loan commitments | (318) | (1,202) | ||||||||||
Noncash contribution expense to employee stock ownership plan | Noncash contribution expense to employee stock ownership plan | 829 | 668 | Noncash contribution expense to employee stock ownership plan | 1,233 | 999 | ||||||||||
Noncash director compensation expense | Noncash director compensation expense | 193 | 117 | Noncash director compensation expense | 355 | 216 | ||||||||||
Stock-based compensation expense | Stock-based compensation expense | 385 | 738 | Stock-based compensation expense | 642 | 951 | ||||||||||
Amortization of core deposit intangible | Amortization of core deposit intangible | 754 | 408 | Amortization of core deposit intangible | 1,124 | 742 | ||||||||||
Amortization of investment security premiums, net of accretion of discounts | Amortization of investment security premiums, net of accretion of discounts | 4,963 | 1,753 | Amortization of investment security premiums, net of accretion of discounts | 7,139 | 3,222 | ||||||||||
Accretion of premiums (discounts) on acquired loans | 281 | (78) | ||||||||||||||
Amortization of premiums (accretion of discounts) on acquired loans, net | Amortization of premiums (accretion of discounts) on acquired loans, net | 143 | (201) | |||||||||||||
Accretion of discount on subordinated debenture | Accretion of discount on subordinated debenture | — | 1,347 | Accretion of discount on subordinated debenture | — | 1,347 | ||||||||||
Net change in deferred loan origination costs/fees | Net change in deferred loan origination costs/fees | (2,322) | 1,146 | Net change in deferred loan origination costs/fees | (2,484) | (1,135) | ||||||||||
Write-down of other real estate owned | Write-down of other real estate owned | 345 | — | |||||||||||||
Losses (gains) on sale of investment securities, net | Losses (gains) on sale of investment securities, net | 63 | (1) | |||||||||||||
Depreciation and amortization | Depreciation and amortization | 845 | 848 | Depreciation and amortization | 1,259 | 1,279 | ||||||||||
Earnings on bank-owned life insurance policies | Earnings on bank-owned life insurance policies | (711) | (490) | Earnings on bank-owned life insurance policies | (933) | (1,892) | ||||||||||
Net changes in interest receivable and other assets | Net changes in interest receivable and other assets | (443) | 952 | Net changes in interest receivable and other assets | 2,230 | 5,615 | ||||||||||
Net changes in interest payable and other liabilities | Net changes in interest payable and other liabilities | (5,894) | (821) | Net changes in interest payable and other liabilities | (5,489) | 921 | ||||||||||
Total adjustments | Total adjustments | (1,923) | 1,537 | Total adjustments | 5,246 | 8,812 | ||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 19,608 | 19,769 | Net cash provided by operating activities | 38,951 | 32,326 | ||||||||||
Cash Flows from Investing Activities: | Cash Flows from Investing Activities: | Cash Flows from Investing Activities: | ||||||||||||||
Purchase of held-to-maturity securities | Purchase of held-to-maturity securities | (208,784) | (74,521) | Purchase of held-to-maturity securities | (293,720) | (133,493) | ||||||||||
Purchase of available-for-sale securities | Purchase of available-for-sale securities | (243,459) | (170,161) | Purchase of available-for-sale securities | (243,459) | (355,156) | ||||||||||
Proceeds from sale of available-for-sale securities | Proceeds from sale of available-for-sale securities | 10,664 | 4,099 | |||||||||||||
Proceeds from paydowns/maturities of held-to-maturity securities | Proceeds from paydowns/maturities of held-to-maturity securities | 16,827 | 14,376 | Proceeds from paydowns/maturities of held-to-maturity securities | 33,198 | 65,497 | ||||||||||
Proceeds from paydowns/maturities of available-for-sale securities | Proceeds from paydowns/maturities of available-for-sale securities | 76,276 | 36,936 | Proceeds from paydowns/maturities of available-for-sale securities | 112,793 | 66,981 | ||||||||||
Loan principal collected, net of originations | Loan principal collected, net of originations | 93,875 | 84,259 | Loan principal collected, net of originations | 97,935 | 193,265 | ||||||||||
Purchase of bank-owned life insurance policies | Purchase of bank-owned life insurance policies | — | (1,943) | Purchase of bank-owned life insurance policies | — | (1,943) | ||||||||||
Cash receipts from bank-owned life insurance policies | Cash receipts from bank-owned life insurance policies | 350 | — | Cash receipts from bank-owned life insurance policies | 350 | 2,478 | ||||||||||
Purchase of premises and equipment | Purchase of premises and equipment | (354) | (765) | Purchase of premises and equipment | (762) | (833) | ||||||||||
Cash acquired from American River Bankshares | Cash acquired from American River Bankshares | — | 140,577 | |||||||||||||
Cash paid for low income housing tax credit investment | Cash paid for low income housing tax credit investment | (30) | (346) | Cash paid for low income housing tax credit investment | (30) | (396) | ||||||||||
Net cash used in investing activities | Net cash used in investing activities | (265,299) | (112,165) | Net cash used in investing activities | (283,031) | (18,924) | ||||||||||
Cash Flows from Financing Activities: | Cash Flows from Financing Activities: | Cash Flows from Financing Activities: | ||||||||||||||
Net increase in deposits | Net increase in deposits | 22,120 | 179,326 | Net increase in deposits | 94,160 | 433,425 | ||||||||||
Proceeds from stock options exercised | Proceeds from stock options exercised | 820 | 351 | Proceeds from stock options exercised | 821 | 423 | ||||||||||
Restricted stock surrendered for tax withholdings upon vesting | Restricted stock surrendered for tax withholdings upon vesting | (40) | (156) | Restricted stock surrendered for tax withholdings upon vesting | (40) | (156) | ||||||||||
Proceeds from stock issued under employee and director stock purchase plans | Proceeds from stock issued under employee and director stock purchase plans | 30 | 71 | Proceeds from stock issued under employee and director stock purchase plans | 62 | 106 | ||||||||||
Stock repurchased, including commissions | Stock repurchased, including commissions | (1,250) | (19,677) | Stock repurchased, including commissions | (1,250) | (35,451) | ||||||||||
Repayment of subordinated debenture including execution costs | Repayment of subordinated debenture including execution costs | — | (4,126) | Repayment of subordinated debenture including execution costs | — | (4,126) | ||||||||||
Repayment of Federal Home Loan Bank borrowings | Repayment of Federal Home Loan Bank borrowings | — | (13,885) | |||||||||||||
Repayment of finance lease obligations | Repayment of finance lease obligations | (63) | (32) | Repayment of finance lease obligations | (96) | (55) | ||||||||||
Cash dividends paid on common stock | Cash dividends paid on common stock | (7,662) | (6,138) | Cash dividends paid on common stock | (11,666) | (9,264) | ||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 13,955 | 149,619 | Net cash provided by financing activities | 81,991 | 371,017 | ||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | Net (decrease) increase in cash, cash equivalents and restricted cash | (231,736) | 57,223 | Net (decrease) increase in cash, cash equivalents and restricted cash | (162,089) | 384,419 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 347,641 | 200,320 | Cash, cash equivalents and restricted cash at beginning of period | 347,641 | 200,320 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 115,905 | $ | 257,543 | Cash, cash equivalents and restricted cash at end of period | $ | 185,552 | $ | 584,739 | ||||||
Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | ||||||||||||||
Cash paid in interest | Cash paid in interest | $ | 1,175 | $ | 951 | Cash paid in interest | $ | 1,716 | $ | 1,492 | ||||||
Cash paid in income taxes | Cash paid in income taxes | $ | 8,450 | $ | 6,000 | Cash paid in income taxes | $ | 11,075 | $ | 9,000 | ||||||
Supplemental disclosure of noncash investing and financing activities: | Supplemental disclosure of noncash investing and financing activities: | Supplemental disclosure of noncash investing and financing activities: | ||||||||||||||
Change in net unrealized gain or (loss) on available-for-sale securities | Change in net unrealized gain or (loss) on available-for-sale securities | $ | (65,278) | $ | (6,284) | Change in net unrealized gain or (loss) on available-for-sale securities | $ | (97,094) | $ | (8,558) | ||||||
Securities transferred from available-for-sale to held-to-maturity, at fair value | Securities transferred from available-for-sale to held-to-maturity, at fair value | $ | 357,482 | $ | — | Securities transferred from available-for-sale to held-to-maturity, at fair value | $ | 357,482 | $ | — | ||||||
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | $ | 616 | $ | 281 | Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | $ | 1,126 | $ | 385 | ||||||
Purchase of investment securities not yet settled | Purchase of investment securities not yet settled | $ | 40,278 | $ | — | Purchase of investment securities not yet settled | $ | — | $ | 19,972 | ||||||
Stock issued to employee stock ownership plan | Stock issued to employee stock ownership plan | $ | 829 | $ | 668 | Stock issued to employee stock ownership plan | $ | 1,233 | $ | 999 | ||||||
Stock issued in payment of director fees | Stock issued in payment of director fees | $ | 193 | $ | 117 | Stock issued in payment of director fees | $ | 355 | $ | 216 | ||||||
Repurchase of stock not yet settled | Repurchase of stock not yet settled | $ | — | $ | 127 | |||||||||||
Acquisition: Fair value of assets acquired, excluding cash acquired | Acquisition: Fair value of assets acquired, excluding cash acquired | $ | — | $ | 757,844 | |||||||||||
Fair value of liabilities assumed | Fair value of liabilities assumed | $ | — | $ | 816,558 | |||||||||||
Restricted cash1 | Restricted cash1 | $ | 930 | $ | 1,930 | Restricted cash1 | $ | 2,996 | $ | 15,805 |
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | (in thousands, except per share data) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||
Weighted average basic common shares outstanding | Weighted average basic common shares outstanding | 15,921 | 13,092 | 15,898 | 13,227 | Weighted average basic common shares outstanding | 15,939 | 14,922 | 15,912 | 13,798 | ||||||||||||||||||||||||
Potentially dilutive common shares related to: | Potentially dilutive common shares related to: | Potentially dilutive common shares related to: | ||||||||||||||||||||||||||||||||
Stock options | Stock options | 24 | 54 | 38 | 67 | Stock options | 22 | 51 | 33 | 62 | ||||||||||||||||||||||||
Unvested restricted stock awards | Unvested restricted stock awards | 10 | 18 | 14 | 22 | Unvested restricted stock awards | 13 | 20 | 14 | 21 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding | Weighted average diluted shares outstanding | 15,955 | 13,164 | 15,950 | 13,316 | Weighted average diluted shares outstanding | 15,974 | 14,993 | 15,959 | 13,881 | ||||||||||||||||||||||||
Net income | Net income | $ | 11,066 | $ | 9,285 | $ | 21,531 | $ | 18,232 | Net income | $ | 12,174 | $ | 5,282 | $ | 33,705 | $ | 23,514 | ||||||||||||||||
Basic EPS | Basic EPS | $ | 0.70 | $ | 0.71 | $ | 1.35 | $ | 1.38 | Basic EPS | $ | 0.76 | $ | 0.35 | $ | 2.12 | $ | 1.70 | ||||||||||||||||
Diluted EPS | Diluted EPS | $ | 0.69 | $ | 0.71 | $ | 1.35 | $ | 1.37 | Diluted EPS | $ | 0.76 | $ | 0.35 | $ | 2.11 | $ | 1.69 | ||||||||||||||||
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS | Weighted average anti-dilutive common shares not included in the calculation of diluted EPS | 230 | 111 | 167 | 88 | Weighted average anti-dilutive common shares not included in the calculation of diluted EPS | 237 | 97 | 213 | 91 |
(in thousands) Description of Financial Instruments | (in thousands) Description of Financial Instruments | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measurement Categories: Changes in Fair Value Recorded In1 | (in thousands) Description of Financial Instruments | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measurement Categories: Changes in Fair Value Recorded In1 | ||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||
Securities available-for-sale: | Securities available-for-sale: | Securities available-for-sale: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 539,991 | $ | — | $ | 539,991 | $ | — | OCI | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 489,389 | $ | — | $ | 489,389 | $ | — | OCI | ||||||||||||||
SBA-backed securities | SBA-backed securities | $ | 53,168 | $ | — | $ | 53,168 | $ | — | OCI | SBA-backed securities | $ | 44,791 | $ | — | $ | 44,791 | $ | — | OCI | ||||||||||||||
Debentures of government sponsored agencies | Debentures of government sponsored agencies | $ | 139,340 | $ | — | $ | 139,340 | $ | — | OCI | Debentures of government sponsored agencies | $ | 134,921 | $ | — | $ | 134,921 | $ | — | OCI | ||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | $ | 10,644 | $ | 10,644 | $ | — | $ | — | OCI | U.S. Treasury securities | $ | 10,158 | $ | 10,158 | $ | — | $ | — | OCI | ||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | $ | 114,263 | $ | — | $ | 114,263 | $ | — | OCI | Obligations of state and political subdivisions | $ | 98,427 | $ | — | $ | 98,427 | $ | — | OCI | ||||||||||||||
Corporate bonds | Corporate bonds | $ | 34,092 | $ | — | $ | 34,092 | $ | — | OCI | Corporate bonds | $ | 33,202 | $ | — | $ | 33,202 | $ | — | OCI | ||||||||||||||
Asset-backed securities | Asset-backed securities | $ | 1,651 | $ | — | $ | 1,651 | $ | — | OCI | Asset-backed securities | $ | 1,605 | $ | — | $ | 1,605 | $ | — | OCI | ||||||||||||||
Derivative financial assets (interest rate contracts) | Derivative financial assets (interest rate contracts) | $ | 206 | $ | — | $ | 206 | $ | — | NI | Derivative financial assets (interest rate contracts) | $ | 649 | $ | — | $ | 649 | $ | — | NI | ||||||||||||||
Derivative financial liabilities (interest rate contracts) | $ | 104 | $ | — | $ | 104 | $ | — | NI | |||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||
Securities available-for-sale: | Securities available-for-sale: | Securities available-for-sale: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 759,576 | $ | — | $ | 759,576 | $ | — | OCI | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 759,576 | $ | — | $ | 759,576 | $ | — | OCI | ||||||||||||||
SBA-backed securities | SBA-backed securities | $ | 33,478 | $ | — | $ | 33,478 | $ | — | OCI | SBA-backed securities | $ | 33,478 | $ | — | $ | 33,478 | $ | — | OCI | ||||||||||||||
Debentures of government sponsored agencies | Debentures of government sponsored agencies | $ | 188,527 | $ | — | $ | 188,527 | $ | — | OCI | Debentures of government sponsored agencies | $ | 188,527 | $ | — | $ | 188,527 | $ | — | OCI | ||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | $ | 11,630 | $ | 11,630 | $ | — | $ | — | OCI | U.S. Treasury securities | $ | 11,630 | $ | 11,630 | $ | — | $ | — | OCI | ||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | $ | 134,000 | $ | — | $ | 134,000 | $ | — | OCI | Obligations of state and political subdivisions | $ | 134,000 | $ | — | $ | 134,000 | $ | — | OCI | ||||||||||||||
Corporate bonds | Corporate bonds | $ | 38,495 | $ | — | $ | 38,495 | $ | — | OCI | Corporate bonds | $ | 38,495 | $ | — | $ | 38,495 | $ | — | OCI | ||||||||||||||
Asset-backed securities | Asset-backed securities | $ | 1,862 | $ | — | $ | 1,862 | $ | — | OCI | Asset-backed securities | $ | 1,862 | $ | — | $ | 1,862 | $ | — | OCI | ||||||||||||||
Derivative financial liabilities (interest rate contracts) | Derivative financial liabilities (interest rate contracts) | $ | 1,085 | $ | — | $ | 1,085 | $ | — | NI | Derivative financial liabilities (interest rate contracts) | $ | 1,085 | $ | — | $ | 1,085 | $ | — | NI |
(in thousands) | (in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | (in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||
Other real estate owned | Other real estate owned | $ | 800 | $ | — | $ | — | $ | 800 | Other real estate owned | $ | 455 | $ | — | $ | — | $ | 455 | ||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||
Other real estate owned | Other real estate owned | $ | 800 | $ | — | $ | — | $ | 800 | Other real estate owned | $ | 800 | $ | — | $ | — | $ | 800 |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | (in thousands) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Financial assets (recorded at amortized cost): | Financial assets (recorded at amortized cost): | Financial assets (recorded at amortized cost): | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 115,905 | $ | 115,905 | Level 1 | $ | 347,641 | $ | 347,641 | Level 1 | Cash and cash equivalents | $ | 185,552 | $ | 185,552 | Level 1 | $ | 347,641 | $ | 347,641 | Level 1 | ||||||||||||||||||||||||
Investment securities held-to-maturity | Investment securities held-to-maturity | 931,587 | 847,386 | Level 2 | 342,222 | 342,755 | Level 2 | Investment securities held-to-maturity | 959,867 | 829,048 | Level 2 | 342,222 | 342,755 | Level 2 | ||||||||||||||||||||||||||||||||
Loans, net | Loans, net | 2,140,093 | 2,123,254 | Level 3 | 2,232,622 | 2,234,430 | Level 3 | Loans, net | 2,135,373 | 2,123,520 | Level 3 | 2,232,622 | 2,234,430 | Level 3 | ||||||||||||||||||||||||||||||||
Interest receivable | Interest receivable | 12,248 | 12,248 | Level 2 | 11,889 | 11,889 | Level 2 | Interest receivable | 11,458 | 11,458 | Level 2 | 11,889 | 11,889 | Level 2 | ||||||||||||||||||||||||||||||||
Financial liabilities (recorded at amortized cost): | Financial liabilities (recorded at amortized cost): | Financial liabilities (recorded at amortized cost): | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | Time deposits | 141,674 | 141,857 | Level 2 | 150,235 | 150,475 | Level 2 | Time deposits | 139,815 | 139,553 | Level 2 | 150,235 | 150,475 | Level 2 | ||||||||||||||||||||||||||||||||
Interest payable | Interest payable | 74 | 74 | Level 2 | 81 | 81 | Level 2 | Interest payable | 83 | 83 | Level 2 | 81 | 81 | Level 2 |
Held-to-maturity: | Held-to-maturity: | Amortized Cost 1 | Allowance for Credit Losses | Net Carrying Amount | Gross Unrealized | Fair Value | Held-to-maturity: | Amortized Cost 1 | Allowance for Credit Losses | Net Carrying Amount | Gross Unrealized | Fair Value | ||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Gains | (Losses) | (in thousands) | Gains | (Losses) | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 337,998 | $ | — | $ | 337,998 | $ | 4 | $ | (34,731) | $ | 303,271 | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 335,959 | $ | — | $ | 335,959 | $ | — | $ | (53,659) | $ | 282,300 | ||||||||||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 230,553 | — | 230,553 | 172 | (20,766) | 209,959 | CMOs issued by FHLMC | 236,061 | — | 236,061 | — | (30,272) | 205,789 | ||||||||||||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 118,956 | — | 118,956 | 853 | (2,574) | 117,235 | CMOs issued by FNMA | 115,043 | — | 115,043 | — | (6,066) | 108,977 | ||||||||||||||||||||||||||||||||
CMOs issued by GNMA | CMOs issued by GNMA | 12,329 | — | 12,329 | — | (982) | 11,347 | CMOs issued by GNMA | 32,070 | — | 32,070 | — | (2,204) | 29,866 | ||||||||||||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 3,244 | — | 3,244 | — | (66) | 3,178 | SBA-backed securities | 2,373 | — | 2,373 | — | (143) | 2,230 | ||||||||||||||||||||||||||||||||
Debentures of government-sponsored agencies | Debentures of government-sponsored agencies | 135,678 | — | 135,678 | — | (17,457) | 118,221 | Debentures of government-sponsored agencies | 145,747 | — | 145,747 | — | (25,193) | 120,554 | ||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 62,829 | — | 62,829 | 19 | (8,304) | 54,544 | Obligations of state and political subdivisions | 62,614 | — | 62,614 | — | (11,697) | 50,917 | ||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 30,000 | — | 30,000 | — | (369) | 29,631 | Corporate bonds | 30,000 | — | 30,000 | — | (1,585) | 28,415 | ||||||||||||||||||||||||||||||||
Total held-to-maturity | Total held-to-maturity | $ | 931,587 | $ | — | $ | 931,587 | $ | 1,048 | $ | (85,249) | $ | 847,386 | Total held-to-maturity | $ | 959,867 | $ | — | $ | 959,867 | $ | — | $ | (130,819) | $ | 829,048 | ||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 126,990 | $ | — | $ | 126,990 | $ | 2,110 | $ | (712) | $ | 128,388 | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 126,990 | $ | — | $ | 126,990 | $ | 2,110 | $ | (712) | $ | 128,388 | ||||||||||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 106,851 | — | 106,851 | 668 | (1,045) | 106,474 | CMOs issued by FHLMC | 106,851 | — | 106,851 | 668 | (1,045) | 106,474 | ||||||||||||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 4,866 | — | 4,866 | 128 | — | 4,994 | CMOs issued by FNMA | 4,866 | — | 4,866 | 128 | — | 4,994 | ||||||||||||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 4,840 | — | 4,840 | 198 | — | 5,038 | SBA-backed securities | 4,840 | — | 4,840 | 198 | — | 5,038 | ||||||||||||||||||||||||||||||||
Debentures of government-sponsored agencies | Debentures of government-sponsored agencies | 51,472 | — | 51,472 | — | (901) | 50,571 | Debentures of government-sponsored agencies | 51,472 | — | 51,472 | — | (901) | 50,571 | ||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 47,203 | — | 47,203 | 296 | (209) | 47,290 | Obligations of state and political subdivisions | 47,203 | — | 47,203 | 296 | (209) | 47,290 | ||||||||||||||||||||||||||||||||
Total held-to-maturity | Total held-to-maturity | $ | 342,222 | $ | — | $ | 342,222 | $ | 3,400 | $ | (2,867) | $ | 342,755 | Total held-to-maturity | $ | 342,222 | $ | — | $ | 342,222 | $ | 3,400 | $ | (2,867) | $ | 342,755 | ||||||||||||||||||||
1 Amortized cost and fair values exclude accrued interest receivable of $3.1 million and $1.1 million at June 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. | ||||||||||||||||||||||||||||||||||||||||||||||
1 Amortized cost and fair values exclude accrued interest receivable of $2.6 million and $1.1 million at September 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. | 1 Amortized cost and fair values exclude accrued interest receivable of $2.6 million and $1.1 million at September 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. |
Obligations of state and political subdivisions | Corporate bonds | Obligations of state and political subdivisions | Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||
AAA / Aaa | AAA / Aaa | $ | 43,188 | $ | 34,229 | $ | — | $ | — | AAA / Aaa | $ | 43,087 | $ | 34,229 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
AA / Aa | AA / Aa | 19,541 | 12,873 | — | — | AA / Aa | 19,527 | 12,873 | — | — | ||||||||||||||||||||||||||||||||||||||||||
A2 / A | A2 / A | 100 | 101 | 30,000 | — | A2 / A | — | 101 | 30,000 | — | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 62,829 | $ | 47,203 | $ | 30,000 | $ | — | Total | $ | 62,614 | $ | 47,203 | $ | 30,000 | $ | — |
Available-for-sale: | Available-for-sale: | Amortized Cost 1 | Gross Unrealized | Allowance for Credit Losses | Fair Value | Available-for-sale: | Amortized Cost 1 | Gross Unrealized | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
(in thousands) | (in thousands) | Gains | (Losses) | (in thousands) | Gains | (Losses) | ||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 127,526 | $ | 23 | $ | (8,784) | $ | — | $ | 118,765 | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 113,941 | $ | 3 | $ | (13,702) | $ | — | $ | 100,242 | ||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 370,610 | 1 | (23,017) | — | 347,594 | CMOs issued by FHLMC | 357,486 | — | (35,575) | — | 321,911 | ||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 40,375 | 1 | (2,960) | — | 37,416 | CMOs issued by FNMA | 38,125 | — | (4,177) | — | 33,948 | ||||||||||||||||||||||
CMOs issued by GNMA | CMOs issued by GNMA | 38,629 | 1 | (2,414) | — | 36,216 | CMOs issued by GNMA | 36,747 | — | (3,459) | — | 33,288 | ||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 55,297 | 4 | (2,133) | — | 53,168 | SBA-backed securities | 48,372 | 4 | (3,585) | — | 44,791 | ||||||||||||||||||||||
Debentures of government- sponsored agencies | Debentures of government- sponsored agencies | 149,099 | — | (9,759) | — | 139,340 | Debentures of government- sponsored agencies | 149,106 | — | (14,185) | — | 134,921 | ||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 11,895 | — | (1,251) | — | 10,644 | U.S. Treasury securities | 11,899 | — | (1,741) | — | 10,158 | ||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 128,238 | 50 | (14,025) | — | 114,263 | Obligations of state and political subdivisions | 117,161 | — | (18,734) | — | 98,427 | ||||||||||||||||||||||
Corporate bonds | Corporate bonds | 36,989 | — | (2,897) | — | 34,092 | Corporate bonds | 36,989 | — | (3,787) | — | 33,202 | ||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,721 | — | (70) | — | 1,651 | Asset-backed securities | 1,650 | — | (45) | — | 1,605 | ||||||||||||||||||||||
Total available-for-sale | Total available-for-sale | $ | 960,379 | $ | 80 | $ | (67,310) | $ | — | $ | 893,149 | Total available-for-sale | $ | 911,476 | $ | 7 | $ | (98,990) | $ | — | $ | 812,493 | ||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 316,090 | $ | 1,224 | $ | (2,784) | $ | — | $ | 314,530 | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 316,090 | $ | 1,224 | $ | (2,784) | $ | — | $ | 314,530 | ||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 343,047 | 3,209 | (4,829) | — | 341,427 | CMOs issued by FHLMC | 343,047 | 3,209 | (4,829) | — | 341,427 | ||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 48,187 | 152 | (611) | — | 47,728 | CMOs issued by FNMA | 48,187 | 152 | (611) | — | 47,728 | ||||||||||||||||||||||
CMOs issued by GNMA | CMOs issued by GNMA | 56,345 | 99 | (553) | — | 55,891 | CMOs issued by GNMA | 56,345 | 99 | (553) | — | 55,891 | ||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 32,640 | 993 | (155) | — | 33,478 | SBA-backed securities | 32,640 | 993 | (155) | — | 33,478 | ||||||||||||||||||||||
Debentures of government- sponsored agencies | Debentures of government- sponsored agencies | 191,449 | 25 | (2,947) | — | 188,527 | Debentures of government- sponsored agencies | 191,449 | 25 | (2,947) | — | 188,527 | ||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 11,886 | — | (256) | 0 | 11,630 | U.S. Treasury securities | 11,886 | — | (256) | 11,630 | |||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 129,009 | 5,372 | (381) | — | 134,000 | Obligations of state and political subdivisions | 129,009 | 5,372 | (381) | — | 134,000 | ||||||||||||||||||||||
Corporate bonds | Corporate bonds | 39,001 | — | (506) | — | 38,495 | Corporate bonds | 39,001 | — | (506) | — | 38,495 | ||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,866 | — | (4) | — | 1,862 | Asset-backed securities | 1,866 | — | (4) | — | 1,862 | ||||||||||||||||||||||
Total available-for-sale | Total available-for-sale | $ | 1,169,520 | $ | 11,074 | $ | (13,026) | $ | — | $ | 1,167,568 | Total available-for-sale | $ | 1,169,520 | $ | 11,074 | $ | (13,026) | $ | — | $ | 1,167,568 | ||||||||||||
1 Amortized cost and fair value exclude accrued interest receivable of $3.4 million and $3.7 million at June 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. | ||||||||||||||||||||||||||||||||||
1 Amortized cost and fair value exclude accrued interest receivable of $3.1 million and $3.7 million at September 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. | 1 Amortized cost and fair value exclude accrued interest receivable of $3.1 million and $3.7 million at September 30, 2022 and December 31, 2021, respectively, which is included in interest receivable and other assets in the consolidated statements of condition. |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | (in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Within one year | Within one year | $ | 100 | $ | 100 | $ | 3,369 | $ | 3,366 | $ | 101 | $ | 103 | $ | 10,785 | $ | 10,841 | Within one year | $ | 453 | $ | 450 | $ | 1,831 | $ | 1,813 | $ | 101 | $ | 103 | $ | 10,785 | $ | 10,841 | ||||||||||||||||||||||||||||||||||||
After one but within five years | After one but within five years | 83,024 | 81,968 | 260,444 | 247,749 | 25,666 | 26,559 | 219,474 | 219,957 | After one but within five years | 90,541 | 86,684 | 273,040 | 251,164 | 25,666 | 26,559 | 219,474 | 219,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
After five years through ten years | After five years through ten years | 255,978 | 228,380 | 300,994 | 280,179 | 182,604 | 182,303 | 299,937 | 300,187 | After five years through ten years | 260,148 | 220,313 | 256,608 | 228,766 | 182,604 | 182,303 | 299,937 | 300,187 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
After ten years | After ten years | 592,485 | 536,938 | 395,572 | 361,855 | 133,851 | 133,790 | 639,324 | 636,583 | After ten years | 608,725 | 521,601 | 379,997 | 330,750 | 133,851 | 133,790 | 639,324 | 636,583 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 931,587 | $ | 847,386 | $ | 960,379 | $ | 893,149 | $ | 342,222 | $ | 342,755 | $ | 1,169,520 | $ | 1,167,568 | Total | $ | 959,867 | $ | 829,048 | $ | 911,476 | $ | 812,493 | $ | 342,222 | $ | 342,755 | $ | 1,169,520 | $ | 1,167,568 |
Sales of investment securities and gross gains and losses are shown in the following table.
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(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||
Pledged to the State of California: | Pledged to the State of California: | Pledged to the State of California: | ||||||||||||||
Secure public deposits in compliance with the Local Agency Security Program | Secure public deposits in compliance with the Local Agency Security Program | $ | 217,143 | $ | 213,861 | Secure public deposits in compliance with the Local Agency Security Program | $ | 193,479 | $ | 213,861 | ||||||
Collateral for trust deposits | Collateral for trust deposits | 676 | 729 | Collateral for trust deposits | 656 | 729 | ||||||||||
Collateral for Wealth Management and Trust Services checking account | Collateral for Wealth Management and Trust Services checking account | 568 | 614 | Collateral for Wealth Management and Trust Services checking account | 554 | 614 | ||||||||||
Total investment securities pledged to the State of California | Total investment securities pledged to the State of California | 218,387 | 215,204 | Total investment securities pledged to the State of California | 194,689 | 215,204 | ||||||||||
Bankruptcy trustee deposits pledged with Federal Reserve Bank | Bankruptcy trustee deposits pledged with Federal Reserve Bank | 1,905 | 2,645 | Bankruptcy trustee deposits pledged with Federal Reserve Bank | 1,844 | 2,645 | ||||||||||
Total pledged investment securities | Total pledged investment securities | $ | 220,292 | $ | 217,849 | Total pledged investment securities | $ | 196,533 | $ | 217,849 |
June 30, 2022 | < 12 continuous months | ≥ 12 continuous months | Total securities in a loss position | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | < 12 continuous months | ≥ 12 continuous months | Total securities in a loss position | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | (in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||||||||||||||||||||
Held-to-maturity: | Held-to-maturity: | Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 302,998 | $ | (34,731) | $ | — | $ | — | $ | 302,998 | $ | (34,731) | MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | 203,739 | $ | (36,140) | $ | 78,562 | $ | (17,519) | $ | 282,301 | $ | (53,659) | ||||||||||||||||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 194,163 | (20,136) | 4,018 | (630) | 198,181 | (20,766) | CMOs issued by FHLMC | 144,517 | (18,126) | 51,272 | (12,146) | 195,789 | (30,272) | ||||||||||||||||||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 67,069 | (2,574) | — | — | 67,069 | (2,574) | CMOs issued by FNMA | 108,978 | (6,066) | — | — | 108,978 | (6,066) | ||||||||||||||||||||||||||||||||||||||
CMOs issued by GNMA | CMOs issued by GNMA | 11,347 | (982) | — | — | 11,347 | (982) | CMOs issued by GNMA | 19,059 | (735) | 10,807 | (1,469) | 29,866 | (2,204) | ||||||||||||||||||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 3,178 | (66) | — | — | 3,178 | (66) | SBA-backed securities | 2,230 | (143) | — | — | 2,230 | (143) | ||||||||||||||||||||||||||||||||||||||
Debentures of government-sponsored agencies | Debentures of government-sponsored agencies | 61,339 | (11,007) | 36,881 | (6,450) | 98,220 | (17,457) | Debentures of government-sponsored agencies | 54,445 | (6,704) | 66,109 | (18,489) | 120,554 | (25,193) | ||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 51,313 | (8,304) | — | — | 51,313 | (8,304) | Obligations of state and political subdivisions | 35,899 | (7,399) | 15,018 | (4,298) | 50,917 | (11,697) | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 29,631 | (369) | — | — | 29,631 | (369) | Corporate bonds | 28,415 | (1,585) | — | — | 28,415 | (1,585) | ||||||||||||||||||||||||||||||||||||||
Total held-to-maturity | Total held-to-maturity | 721,038 | (78,169) | 40,899 | (7,080) | 761,937 | (85,249) | Total held-to-maturity | 597,282 | (76,898) | 221,768 | (53,921) | 819,050 | (130,819) | ||||||||||||||||||||||||||||||||||||||
Available-for-sale: | Available-for-sale: | Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | MBS pass-through securities issued by FHLMC, FNMA and GNMA | 113,127 | (8,784) | — | — | 113,127 | (8,784) | MBS pass-through securities issued by FHLMC, FNMA and GNMA | 54,639 | (6,702) | 44,711 | (7,000) | 99,350 | (13,702) | ||||||||||||||||||||||||||||||||||||||
CMOs issued by FHLMC | CMOs issued by FHLMC | 343,897 | (22,540) | 3,538 | (477) | 347,435 | (23,017) | CMOs issued by FHLMC | 192,988 | (17,898) | 128,923 | (17,677) | 321,911 | (35,575) | ||||||||||||||||||||||||||||||||||||||
CMOs issued by FNMA | CMOs issued by FNMA | 33,201 | (2,674) | 4,156 | (286) | 37,357 | (2,960) | CMOs issued by FNMA | 7,310 | (514) | 26,638 | (3,663) | 33,948 | (4,177) | ||||||||||||||||||||||||||||||||||||||
CMOs issued by GNMA | CMOs issued by GNMA | 34,696 | (2,414) | — | — | 34,696 | (2,414) | CMOs issued by GNMA | 11,248 | (399) | 22,039 | (3,060) | 33,287 | (3,459) | ||||||||||||||||||||||||||||||||||||||
SBA-backed securities | SBA-backed securities | 51,556 | (2,091) | 1,059 | (42) | 52,615 | (2,133) | SBA-backed securities | 37,629 | (3,443) | 6,649 | (142) | 44,278 | (3,585) | ||||||||||||||||||||||||||||||||||||||
Debentures of government- sponsored agencies | Debentures of government- sponsored agencies | 132,004 | (8,126) | 7,336 | (1,633) | 139,340 | (9,759) | Debentures of government- sponsored agencies | 128,077 | (12,060) | 6,844 | (2,125) | 134,921 | (14,185) | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 10,644 | (1,251) | — | — | 10,644 | (1,251) | U.S. Treasury securities | — | — | 10,159 | (1,741) | 10,159 | (1,741) | ||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | Obligations of state and political subdivisions | 101,078 | (13,425) | 2,001 | (600) | 103,079 | (14,025) | Obligations of state and political subdivisions | 84,021 | (15,366) | 14,406 | (3,368) | 98,427 | (18,734) | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 28,833 | (2,167) | 5,259 | (730) | 34,092 | (2,897) | Corporate bonds | 23,221 | (1,779) | 9,981 | (2,008) | 33,202 | (3,787) | ||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,651 | (70) | — | — | 1,651 | (70) | Asset-backed securities | 1,606 | (45) | — | — | 1,606 | (45) | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale | Total available-for-sale | 850,687 | (63,542) | 23,349 | (3,768) | 874,036 | (67,310) | Total available-for-sale | 540,739 | (58,206) | 270,350 | (40,784) | 811,089 | (98,990) | ||||||||||||||||||||||||||||||||||||||
Total securities at loss position | Total securities at loss position | $ | 1,571,725 | $ | (141,711) | $ | 64,248 | $ | (10,848) | $ | 1,635,973 | $ | (152,559) | Total securities at loss position | $ | 1,138,021 | $ | (135,104) | $ | 492,118 | $ | (94,705) | $ | 1,630,139 | $ | (229,809) |
December 31, 2021 | < 12 continuous months | ≥ 12 continuous months | Total securities in a loss position | |||||||||||||||||||||||
(in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | $ | 76,619 | $ | (712) | $ | — | $ | — | $ | 76,619 | $ | (712) | ||||||||||||||
CMOs issued by FHLMC | 54,811 | (1,045) | — | — | 54,811 | (1,045) | ||||||||||||||||||||
Obligations of state and political subdivisions | 19,203 | (209) | — | — | 19,203 | (209) | ||||||||||||||||||||
Debentures of government-sponsored agencies | 50,571 | (901) | — | — | 50,571 | (901) | ||||||||||||||||||||
Total held-to-maturity | 201,204 | (2,867) | — | — | 201,204 | (2,867) | ||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 263,474 | (2,784) | — | — | 263,474 | (2,784) | ||||||||||||||||||||
SBA-backed securities | 7,478 | (112) | 1,209 | (43) | 8,687 | (155) | ||||||||||||||||||||
CMOs issued by FHLMC | 226,175 | (4,677) | 4,415 | (152) | 230,590 | (4,829) | ||||||||||||||||||||
CMOs issued by GNMA | 44,790 | (553) | — | — | 44,790 | (553) | ||||||||||||||||||||
CMOs issued by FNMA | 37,348 | (611) | — | — | 37,348 | (611) | ||||||||||||||||||||
Debentures of government- sponsored agencies | 148,979 | (2,527) | 8,549 | (420) | 157,528 | (2,947) | ||||||||||||||||||||
U.S. Treasury securities | 11,629 | (256) | — | — | 11,629 | (256) | ||||||||||||||||||||
Obligations of state and political subdivisions | 17,552 | (381) | — | — | 17,552 | (381) | ||||||||||||||||||||
Corporate Bonds | 38,495 | (506) | — | — | 38,495 | (506) | ||||||||||||||||||||
Asset-backed securities | 1,861 | (4) | — | — | 1,861 | (4) | ||||||||||||||||||||
Total available-for-sale | 797,781 | (12,411) | 14,173 | (615) | 811,954 | (13,026) | ||||||||||||||||||||
Total securities at loss position | $ | 998,985 | $ | (15,278) | $ | 14,173 | $ | (615) | $ | 1,013,158 | $ | (15,893) |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||
Commercial and industrial | Commercial and industrial | $ | 213,122 | $ | 301,602 | Commercial and industrial | $ | 207,488 | $ | 301,602 | ||||||
Real estate: | Real estate: | Real estate: | ||||||||||||||
Commercial owner-occupied | Commercial owner-occupied | 382,897 | 392,345 | Commercial owner-occupied | 368,415 | 392,345 | ||||||||||
Commercial investor-owned | Commercial investor-owned | 1,190,419 | 1,189,021 | Commercial investor-owned | 1,211,651 | 1,189,021 | ||||||||||
Construction | Construction | 118,147 | 119,840 | Construction | 112,154 | 119,840 | ||||||||||
Home equity | Home equity | 90,629 | 88,746 | Home equity | 89,244 | 88,746 | ||||||||||
Other residential | Other residential | 113,361 | 114,558 | Other residential | 114,247 | 114,558 | ||||||||||
Installment and other consumer loans | Installment and other consumer loans | 54,057 | 49,533 | Installment and other consumer loans | 55,137 | 49,533 | ||||||||||
Total loans, at amortized cost 1 | Total loans, at amortized cost 1 | 2,162,632 | 2,255,645 | Total loans, at amortized cost 1 | 2,158,336 | 2,255,645 | ||||||||||
Allowance for credit losses on loans | Allowance for credit losses on loans | (22,539) | (23,023) | Allowance for credit losses on loans | (22,963) | (23,023) | ||||||||||
Total loans, net of allowance for credit losses on loans | Total loans, net of allowance for credit losses on loans | $ | 2,140,093 | $ | 2,232,622 | Total loans, net of allowance for credit losses on loans | $ | 2,135,373 | $ | 2,232,622 |
(in thousands) | (in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | (in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 9,586 | $ | 21,160 | $ | 9,230 | $ | 24,730 | $ | 6,988 | $ | 28,168 | $ | 102,567 | $ | 202,429 | Pass and Watch | $ | 10,791 | $ | 11,634 | $ | 8,266 | $ | 22,979 | $ | 6,007 | $ | 25,989 | $ | 114,750 | $ | 200,416 | ||||||||||||||||||
Special Mention | Special Mention | — | — | — | 503 | 4,248 | — | 123 | 4,874 | Special Mention | — | — | — | 477 | 4,166 | — | 403 | 5,046 | ||||||||||||||||||||||||||||||||||
Substandard | Substandard | — | — | 1,469 | — | — | — | 4,350 | 5,819 | Substandard | — | — | 1,361 | — | — | 665 | — | 2,026 | ||||||||||||||||||||||||||||||||||
Total commercial and industrial | Total commercial and industrial | $ | 9,586 | $ | 21,160 | $ | 10,699 | $ | 25,233 | $ | 11,236 | $ | 28,168 | $ | 107,040 | $ | 213,122 | Total commercial and industrial | $ | 10,791 | $ | 11,634 | $ | 9,627 | $ | 23,456 | $ | 10,173 | $ | 26,654 | $ | 115,153 | $ | 207,488 | ||||||||||||||||||
Gross current period charge-offs | Gross current period charge-offs | $ | — | $ | — | $ | (9) | $ | — | $ | — | $ | — | $ | — | $ | (9) | |||||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied: | Commercial real estate, owner-occupied: | Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 55,263 | $ | 53,245 | $ | 41,565 | $ | 45,948 | $ | 30,419 | $ | 116,659 | $ | — | $ | 343,099 | Pass and Watch | $ | 52,024 | $ | 52,909 | $ | 41,096 | $ | 45,607 | $ | 30,178 | $ | 108,888 | $ | — | $ | 330,702 | ||||||||||||||||||
Special Mention | Special Mention | — | 16,471 | — | 317 | 5,386 | 4,567 | — | 26,741 | Special Mention | — | 16,336 | — | 309 | 5,284 | 4,532 | — | 26,461 | ||||||||||||||||||||||||||||||||||
Substandard | Substandard | — | — | 7,142 | 1,754 | — | 4,055 | — | 12,951 | Substandard | — | — | 7,127 | 1,758 | — | 2,266 | — | 11,151 | ||||||||||||||||||||||||||||||||||
Doubtful | Doubtful | — | — | 106 | — | — | — | — | 106 | Doubtful | — | — | 101 | — | — | — | — | 101 | ||||||||||||||||||||||||||||||||||
Total commercial real estate, owner-occupied | Total commercial real estate, owner-occupied | $ | 55,263 | $ | 69,716 | $ | 48,813 | $ | 48,019 | $ | 35,805 | $ | 125,281 | $ | — | $ | 382,897 | Total commercial real estate, owner-occupied | $ | 52,024 | $ | 69,245 | $ | 48,324 | $ | 47,674 | $ | 35,462 | $ | 115,686 | $ | — | $ | 368,415 | ||||||||||||||||||
Commercial real estate, investor-owned: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | $ | 118,868 | $ | 221,908 | $ | 164,765 | $ | 171,674 | $ | 125,646 | $ | 343,000 | $ | 73 | $ | 1,145,934 | ||||||||||||||||||||||||||||||||||||
Special Mention | — | — | 4,531 | 2,714 | 9,729 | 9,980 | — | 26,954 | ||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | 17,531 | — | 17,531 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate, investor-owned | $ | 118,868 | $ | 221,908 | $ | 169,296 | $ | 174,388 | $ | 135,375 | $ | 370,511 | $ | 73 | $ | 1,190,419 |
(in thousands) | (in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | (in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | |||||||||||||||||||||||||||||||||||||||||||
Commercial real estate, investor-owned: | Commercial real estate, investor-owned: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 157,021 | $ | 219,857 | $ | 156,190 | $ | 165,464 | $ | 128,149 | $ | 332,987 | $ | 65 | $ | 1,159,733 | |||||||||||||||||||||||||||||||||||
Special Mention | Special Mention | — | 1,178 | 12,157 | 3,961 | 6,002 | 9,384 | — | 32,682 | |||||||||||||||||||||||||||||||||||||||||||
Substandard | Substandard | — | — | — | — | — | 19,236 | — | 19,236 | |||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate, investor-owned | Total commercial real estate, investor-owned | $ | 157,021 | $ | 221,035 | $ | 168,347 | $ | 169,425 | $ | 134,151 | $ | 361,607 | $ | 65 | $ | 1,211,651 | |||||||||||||||||||||||||||||||||||
Construction: | Construction: | Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 33,184 | $ | 24,274 | $ | 42,658 | $ | 8,921 | $ | 9,110 | $ | — | $ | — | $ | 118,147 | Pass and Watch | $ | 42,163 | $ | 16,897 | $ | 36,239 | $ | 7,744 | $ | 9,111 | $ | — | $ | — | $ | 112,154 | ||||||||||||||||||
Total construction | Total construction | $ | 33,184 | $ | 24,274 | $ | 42,658 | $ | 8,921 | $ | 9,110 | $ | — | $ | — | $ | 118,147 | Total construction | $ | 42,163 | $ | 16,897 | $ | 36,239 | $ | 7,744 | $ | 9,111 | $ | — | $ | — | $ | 112,154 | ||||||||||||||||||
Home equity: | Home equity: | Home equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | 600 | $ | 89,369 | $ | 89,993 | Pass and Watch | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 742 | $ | 87,685 | $ | 88,427 | ||||||||||||||||||
Substandard | Substandard | — | — | — | — | — | 433 | 203 | 636 | Substandard | — | — | — | — | — | 499 | 318 | 817 | ||||||||||||||||||||||||||||||||||
Total home equity | Total home equity | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | 1,033 | $ | 89,572 | $ | 90,629 | Total home equity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,241 | $ | 88,003 | $ | 89,244 | ||||||||||||||||||
Other residential: | Other residential: | Other residential: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 11,504 | $ | 15,575 | $ | 30,158 | $ | 22,869 | $ | 13,186 | $ | 20,069 | $ | — | $ | 113,361 | Pass and Watch | $ | 16,623 | $ | 15,383 | $ | 29,942 | $ | 22,385 | $ | 11,438 | $ | 18,476 | $ | — | $ | 114,247 | ||||||||||||||||||
Total other residential | Total other residential | $ | 11,504 | $ | 15,575 | $ | 30,158 | $ | 22,869 | $ | 13,186 | $ | 20,069 | $ | — | $ | 113,361 | Total other residential | $ | 16,623 | $ | 15,383 | $ | 29,942 | $ | 22,385 | $ | 11,438 | $ | 18,476 | $ | — | $ | 114,247 | ||||||||||||||||||
Installment and other consumer: | Installment and other consumer: | Installment and other consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 10,938 | $ | 15,523 | $ | 6,850 | $ | 7,441 | $ | 4,696 | $ | 6,888 | $ | 1,721 | $ | 54,057 | Pass and Watch | 15,579 | $ | 14,591 | $ | 6,168 | $ | 6,837 | $ | 4,428 | $ | 6,656 | $ | 786 | $ | 55,045 | |||||||||||||||||||
Substandard | Substandard | — | — | — | — | — | 92 | — | 92 | |||||||||||||||||||||||||||||||||||||||||||
Total installment and other consumer | Total installment and other consumer | $ | 10,938 | $ | 15,523 | $ | 6,850 | $ | 7,441 | $ | 4,696 | $ | 6,888 | $ | 1,721 | $ | 54,057 | Total installment and other consumer | $ | 15,579 | $ | 14,591 | $ | 6,168 | $ | 6,837 | $ | 4,428 | $ | 6,748 | $ | 786 | $ | 55,137 | ||||||||||||||||||
Gross current period charge-offs | Gross current period charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (18) | $ | (4) | $ | (22) | Gross current period charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (18) | $ | (5) | $ | (23) | ||||||||||||||||||
Total loans: | Total loans: | Total loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass and Watch | Pass and Watch | $ | 239,343 | $ | 351,709 | $ | 295,226 | $ | 281,583 | $ | 190,045 | $ | 515,384 | $ | 193,730 | $ | 2,067,020 | Pass and Watch | $ | 294,201 | $ | 331,271 | $ | 277,901 | $ | 271,016 | $ | 189,311 | $ | 493,738 | $ | 203,286 | $ | 2,060,724 | ||||||||||||||||||
Total Special Mention | Total Special Mention | $ | — | $ | 16,471 | $ | 4,531 | $ | 3,534 | $ | 19,363 | $ | 14,547 | $ | 123 | $ | 58,569 | Total Special Mention | $ | — | $ | 17,514 | $ | 12,157 | $ | 4,747 | $ | 15,452 | $ | 13,916 | $ | 403 | $ | 64,189 | ||||||||||||||||||
Total Substandard | Total Substandard | $ | — | $ | — | $ | 8,611 | $ | 1,754 | $ | — | $ | 22,019 | $ | 4,553 | $ | 36,937 | Total Substandard | $ | — | $ | — | $ | 8,488 | $ | 1,758 | $ | — | $ | 22,758 | $ | 318 | $ | 33,322 | ||||||||||||||||||
Total Doubtful | Total Doubtful | $ | — | $ | — | $ | 106 | $ | — | $ | — | $ | — | $ | — | $ | 106 | Total Doubtful | $ | — | $ | — | $ | 101 | $ | — | $ | — | $ | — | $ | — | $ | 101 | ||||||||||||||||||
Totals | Totals | $ | 239,343 | $ | 368,180 | $ | 308,474 | $ | 286,871 | $ | 209,408 | $ | 551,950 | $ | 198,406 | $ | 2,162,632 | Totals | $ | 294,201 | $ | 348,785 | $ | 298,647 | $ | 277,521 | $ | 204,763 | $ | 530,412 | $ | 204,007 | $ | 2,158,336 | ||||||||||||||||||
Total gross current period charge-offs | Total gross current period charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (18) | $ | (4) | $ | (22) | Total gross current period charge-offs | $ | — | $ | — | $ | (9) | $ | — | $ | — | $ | (18) | $ | (5) | $ | (32) |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||
Pass and Watch | $ | 96,643 | $ | 35,967 | $ | 25,754 | $ | 12,763 | $ | 2,729 | $ | 31,280 | $ | 90,744 | $ | 295,880 | ||||||||||
Special Mention | — | 1,700 | 584 | 273 | — | — | 2,088 | 4,645 | ||||||||||||||||||
Substandard | — | — | — | — | — | — | 1,077 | 1,077 | ||||||||||||||||||
Total commercial and industrial | $ | 96,643 | $ | 37,667 | $ | 26,338 | $ | 13,036 | $ | 2,729 | $ | 31,280 | $ | 93,909 | $ | 301,602 | ||||||||||
Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||
Pass and Watch | $ | 58,395 | $ | 43,216 | $ | 49,485 | $ | 36,174 | $ | 42,430 | $ | 104,898 | $ | — | $ | 334,598 | ||||||||||
Special Mention | 16,748 | — | — | 7,846 | — | 16,996 | — | 41,590 | ||||||||||||||||||
Substandard | — | 7,155 | 285 | — | — | 8,603 | — | 16,043 | ||||||||||||||||||
Doubtful | — | 114 | — | — | — | — | — | 114 | ||||||||||||||||||
Total commercial real estate, owner-occupied | $ | 75,143 | $ | 50,485 | $ | 49,770 | $ | 44,020 | $ | 42,430 | $ | 130,497 | $ | — | $ | 392,345 | ||||||||||
Commercial real estate, investor-owned: | ||||||||||||||||||||||||||
Pass and Watch | $ | 225,722 | $ | 186,214 | $ | 187,418 | $ | 143,028 | $ | 75,419 | $ | 325,882 | $ | 84 | $ | 1,143,767 | ||||||||||
Special Mention | — | 1,214 | 2,714 | 11,773 | 1,787 | 9,540 | — | 27,028 | ||||||||||||||||||
Substandard | — | — | — | 695 | — | 17,531 | — | 18,226 | ||||||||||||||||||
Total commercial real estate, investor-owned | $ | 225,722 | $ | 187,428 | $ | 190,132 | $ | 155,496 | $ | 77,206 | $ | 352,953 | $ | 84 | $ | 1,189,021 | ||||||||||
Construction: | ||||||||||||||||||||||||||
Pass and Watch | $ | 31,269 | $ | 70,528 | $ | 8,935 | $ | 9,108 | $ | — | $ | — | $ | — | $ | 119,840 | ||||||||||
Total construction | $ | 31,269 | $ | 70,528 | $ | 8,935 | $ | 9,108 | $ | — | $ | — | $ | — | $ | 119,840 | ||||||||||
Home equity: | ||||||||||||||||||||||||||
Pass and Watch | $ | — | $ | — | $ | — | $ | — | $ | 10 | $ | 268 | $ | 87,693 | $ | 87,971 | ||||||||||
Substandard | — | — | — | — | — | 377 | 398 | 775 | ||||||||||||||||||
Total home equity | $ | — | $ | — | $ | — | $ | — | $ | 10 | $ | 645 | $ | 88,091 | $ | 88,746 | ||||||||||
Other residential: | ||||||||||||||||||||||||||
Pass and Watch | $ | 15,800 | $ | 31,981 | $ | 25,529 | $ | 15,411 | $ | 7,964 | $ | 17,873 | $ | — | $ | 114,558 | ||||||||||
Total other residential | $ | 15,800 | $ | 31,981 | $ | 25,529 | $ | 15,411 | $ | 7,964 | $ | 17,873 | $ | — | $ | 114,558 | ||||||||||
Installment and other consumer: | ||||||||||||||||||||||||||
Pass and Watch | $ | 17,207 | $ | 7,748 | $ | 9,436 | $ | 5,633 | $ | 1,123 | $ | 6,620 | $ | 1,766 | $ | 49,533 | ||||||||||
Total installment and other consumer | $ | 17,207 | $ | 7,748 | $ | 9,436 | $ | 5,633 | $ | 1,123 | $ | 6,620 | $ | 1,766 | $ | 49,533 | ||||||||||
Total loans: | ||||||||||||||||||||||||||
Pass and Watch | $ | 445,036 | $ | 375,654 | $ | 306,557 | $ | 222,117 | $ | 129,675 | $ | 486,821 | $ | 180,287 | $ | 2,146,147 | ||||||||||
Total Special Mention | $ | 16,748 | $ | 2,914 | $ | 3,298 | $ | 19,892 | $ | 1,787 | $ | 26,536 | $ | 2,088 | $ | 73,263 | ||||||||||
Total Substandard | $ | — | $ | 7,155 | $ | 285 | $ | 695 | $ | — | $ | 26,511 | $ | 1,475 | $ | 36,121 | ||||||||||
Doubtful | $ | — | $ | 114 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 114 | ||||||||||
Totals | $ | 461,784 | $ | 385,837 | $ | 310,140 | $ | 242,704 | $ | 131,462 | $ | 539,868 | $ | 183,850 | $ | 2,255,645 |
Loan Aging Analysis by Class | Loan Aging Analysis by Class | Loan Aging Analysis by Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | ||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | $ | 1,065 | $ | 660 | $ | — | $ | — | $ | 100 | $ | — | $ | 166 | $ | 1,991 | 30-59 days past due | $ | 1,007 | $ | — | $ | — | $ | — | $ | 520 | $ | — | $ | — | $ | 1,527 | ||||||||||||||||||
60-89 days past due | 60-89 days past due | 589 | 545 | — | — | — | — | 28 | 1,162 | 60-89 days past due | 1,474 | — | — | — | 360 | — | — | 1,834 | ||||||||||||||||||||||||||||||||||
90 days or more past due | 90 days or more past due | 202 | — | — | — | 54 | — | — | 256 | 90 days or more past due | 255 | — | — | — | 54 | — | — | 309 | ||||||||||||||||||||||||||||||||||
Total past due | Total past due | 1,856 | 1,205 | — | — | 154 | — | 194 | 3,409 | Total past due | 2,736 | — | — | — | 934 | — | — | 3,670 | ||||||||||||||||||||||||||||||||||
Current | Current | 211,266 | 381,692 | 1,190,419 | 118,147 | 90,475 | 113,361 | 53,863 | 2,159,223 | Current | 204,752 | 368,415 | 1,211,651 | 112,154 | 88,310 | 114,247 | 55,137 | 2,154,666 | ||||||||||||||||||||||||||||||||||
Total loans 1 | Total loans 1 | $ | 213,122 | $ | 382,897 | $ | 1,190,419 | $ | 118,147 | $ | 90,629 | $ | 113,361 | $ | 54,057 | $ | 2,162,632 | Total loans 1 | $ | 207,488 | $ | 368,415 | $ | 1,211,651 | $ | 112,154 | $ | 89,244 | $ | 114,247 | $ | 55,137 | $ | 2,158,336 | ||||||||||||||||||
Non-accrual loans 2 | Non-accrual loans 2 | $ | — | $ | 7,564 | $ | — | $ | — | $ | 454 | $ | — | $ | — | $ | 8,018 | Non-accrual loans 2 | $ | — | $ | 9,846 | $ | — | $ | — | $ | 699 | $ | — | $ | 92 | $ | 10,637 | ||||||||||||||||||
Non-accrual loans with no allowance | Non-accrual loans with no allowance | $ | — | $ | 7,564 | $ | — | $ | — | $ | 454 | $ | — | $ | — | $ | 8,018 | Non-accrual loans with no allowance | $ | — | $ | 9,846 | $ | — | $ | — | $ | 699 | $ | — | $ | 92 | $ | 10,637 | ||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | $ | 2 | $ | — | $ | — | $ | — | $ | 498 | $ | — | $ | 1,036 | $ | 1,536 | 30-59 days past due | $ | 2 | $ | — | $ | — | $ | — | $ | 498 | $ | — | $ | 1,036 | $ | 1,536 | ||||||||||||||||||
60-89 days past due | 60-89 days past due | 394 | — | — | — | 67 | — | — | 461 | 60-89 days past due | 394 | — | — | — | 67 | — | — | 461 | ||||||||||||||||||||||||||||||||||
90 days or more past due | 90 days or more past due | 229 | — | — | — | 88 | — | — | 317 | 90 days or more past due | 229 | — | — | — | 88 | — | — | 317 | ||||||||||||||||||||||||||||||||||
Total past due | Total past due | 625 | — | — | — | 653 | — | 1,036 | 2,314 | Total past due | 625 | — | — | — | 653 | — | 1,036 | 2,314 | ||||||||||||||||||||||||||||||||||
Current | Current | 300,977 | 392,345 | 1,189,021 | 119,840 | 88,093 | 114,558 | 48,497 | 2,253,331 | Current | 300,977 | 392,345 | 1,189,021 | 119,840 | 88,093 | 114,558 | 48,497 | 2,253,331 | ||||||||||||||||||||||||||||||||||
Total loans 1 | Total loans 1 | $ | 301,602 | $ | 392,345 | $ | 1,189,021 | $ | 119,840 | $ | 88,746 | $ | 114,558 | $ | 49,533 | $ | 2,255,645 | Total loans 1 | $ | 301,602 | $ | 392,345 | $ | 1,189,021 | $ | 119,840 | $ | 88,746 | $ | 114,558 | $ | 49,533 | $ | 2,255,645 | ||||||||||||||||||
Non-accrual loans 2 | Non-accrual loans 2 | $ | — | $ | 7,269 | $ | 694 | $ | — | $ | 413 | $ | — | $ | — | $ | 8,376 | Non-accrual loans 2 | $ | — | $ | 7,269 | $ | 694 | $ | — | $ | 413 | $ | — | $ | — | $ | 8,376 | ||||||||||||||||||
Non-accrual loans with no allowance | Non-accrual loans with no allowance | $ | — | $ | 7,269 | $ | 694 | $ | — | $ | 413 | $ | — | $ | — | $ | 8,376 | Non-accrual loans with no allowance | $ | — | $ | 7,269 | $ | 694 | $ | — | $ | 413 | $ | — | $ | — | $ | 8,376 |
Amortized Cost by Collateral Type | Amortized Cost by Collateral Type | |||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Commercial Real Estate | Residential Real Estate | Other | Total 1 | Allowance for Credit Losses | (in thousands) | Commercial Real Estate | Residential Real Estate | Other | Total 1 | Allowance for Credit Losses | ||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | Commercial real estate, owner-occupied | $ | 7,564 | $ | — | $ | — | $ | 7,564 | $ | — | Commercial real estate, owner-occupied | $ | 9,846 | $ | — | $ | — | $ | 9,846 | $ | — | ||||||||||||||||||
Home equity | Home equity | — | 454 | — | 454 | — | Home equity | — | 699 | — | 699 | — | ||||||||||||||||||||||||||||
Installment and other consumer | Installment and other consumer | — | — | 92 | 92 | — | ||||||||||||||||||||||||||||||||||
Total | Total | $ | 7,564 | $ | 454 | $ | — | $ | 8,018 | $ | — | Total | $ | 9,846 | $ | 699 | $ | 92 | $ | 10,637 | $ | — | ||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | Commercial real estate, owner-occupied | $ | 7,269 | $ | — | $ | — | $ | 7,269 | $ | — | Commercial real estate, owner-occupied | $ | 7,269 | $ | — | $ | — | $ | 7,269 | $ | — | ||||||||||||||||||
Commercial real estate, investor-owned | Commercial real estate, investor-owned | 694 | — | — | 694 | — | Commercial real estate, investor-owned | 694 | — | — | 694 | — | ||||||||||||||||||||||||||||
Home equity | Home equity | — | 413 | — | 413 | — | Home equity | — | 413 | — | 413 | — | ||||||||||||||||||||||||||||
Total | Total | $ | 7,963 | $ | 413 | $ | — | $ | 8,376 | $ | — | Total | $ | 7,963 | $ | 413 | $ | — | $ | 8,376 | $ | — |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||
Commercial and industrial | Commercial and industrial | $ | 1,178 | $ | 1,183 | Commercial and industrial | $ | 941 | $ | 1,183 | ||||||
Commercial real estate, owner-occupied | Commercial real estate, owner-occupied | 7,141 | 7,155 | Commercial real estate, owner-occupied | 9,436 | 7,155 | ||||||||||
Commercial real estate, investor-owned | Commercial real estate, investor-owned | 170 | 179 | Commercial real estate, investor-owned | 165 | 179 | ||||||||||
Home equity | Home equity | 479 | 386 | Home equity | 629 | 386 | ||||||||||
Installment and other consumer | Installment and other consumer | 571 | 607 | Installment and other consumer | 561 | 607 | ||||||||||
Total 1 | Total 1 | $ | 9,539 | $ | 9,510 | Total 1 | $ | 11,732 | $ | 9,510 |
(dollars in thousands) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at Period End | ||||||||||
TDRs during the three months ended September 30, 2022: | ||||||||||||||
Commercial real estate, owner occupied | 2 | $ | 2,308 | $ | 2,308 | $ | 2,308 | |||||||
Home equity | 2 | 147 | 147 | 147 | ||||||||||
Total | 4 | $ | 2,455 | $ | 2,455 | $ | 2,455 | |||||||
TDRs during the three months ended September 30, 2021: | ||||||||||||||
Commercial and industrial | 1 | $ | 1,101 | $ | 1,101 | $ | 1,101 | |||||||
(dollars in thousands) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at Period End | ||||||||||
TDRs during the nine months ended September 30, 2022: | ||||||||||||||
Commercial real estate, owner occupied | 2 | $ | 2,308 | $ | 2,308 | $ | 2,308 | |||||||
Home equity | 3 | 247 | 247 | 247 | ||||||||||
Total | 5 | $ | 2,555 | $ | 2,555 | $ | 2,555 | |||||||
TDRs during the nine months ended September 30, 2021: | ||||||||||||||
Commercial and industrial | 1 | $ | 1,101 | $ | 1,101 | $ | 1,101 | |||||||
Allowance for Credit Losses on Loans Rollforward | Allowance for Credit Losses on Loans Rollforward | Allowance for Credit Losses on Loans Rollforward | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,784 | $ | 2,622 | $ | 12,301 | $ | 1,717 | $ | 549 | $ | 628 | $ | 641 | $ | 2,305 | $ | 22,547 | Beginning balance | $ | 1,699 | $ | 2,617 | $ | 12,439 | $ | 1,737 | $ | 530 | $ | 585 | $ | 733 | $ | 2,199 | $ | 22,539 | ||||||||||||||||||||
(Reversal) Provision | (89) | (5) | 138 | 12 | (19) | (43) | 112 | (106) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision (reversal) | Provision (reversal) | 265 | (81) | 299 | 38 | 12 | 5 | 83 | (199) | 422 | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | — | — | — | — | — | — | (20) | — | (20) | Charge-offs | (9) | — | — | — | — | — | (1) | — | (10) | ||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 4 | — | — | 8 | — | — | — | — | 12 | Recoveries | 3 | — | — | 9 | — | — | — | — | 12 | ||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,699 | $ | 2,617 | $ | 12,439 | $ | 1,737 | $ | 530 | $ | 585 | $ | 733 | $ | 2,199 | $ | 22,539 | Ending balance | $ | 1,958 | $ | 2,536 | $ | 12,738 | $ | 1,784 | $ | 542 | $ | 590 | $ | 815 | $ | 2,000 | $ | 22,963 | ||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,654 | $ | 2,304 | $ | 10,856 | $ | 1,312 | $ | 520 | $ | 757 | $ | 255 | $ | 2,300 | $ | 19,958 | Beginning balance | $ | 1,590 | $ | 2,037 | $ | 10,761 | $ | 1,142 | $ | 412 | $ | 613 | $ | 238 | $ | 2,307 | $ | 19,100 | ||||||||||||||||||||
(Reversal) Provision | (68) | (267) | (95) | (178) | (158) | (144) | (17) | 7 | (920) | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision (reversal) | Provision (reversal) | 126 | (30) | 1,011 | 77 | 247 | 4 | 384 | (19) | 1,800 | ||||||||||||||||||||||||||||||||||||||||||||||||
Initial allowance for PCD loans | Initial allowance for PCD loans | 405 | 559 | 533 | — | — | 6 | 2 | — | 1,505 | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | — | — | — | — | — | — | — | — | — | Charge-offs | — | — | — | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 4 | — | — | 8 | 50 | — | — | — | 62 | Recoveries | 3 | — | — | 8 | — | — | — | — | 11 | ||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,590 | $ | 2,037 | $ | 10,761 | $ | 1,142 | $ | 412 | $ | 613 | $ | 238 | $ | 2,307 | $ | 19,100 | Ending balance | $ | 2,124 | $ | 2,566 | $ | 12,305 | $ | 1,227 | $ | 659 | $ | 623 | $ | 622 | $ | 2,288 | $ | 22,414 |
Allowance for Credit Losses on Loans Rollforward | Allowance for Credit Losses on Loans Rollforward | Allowance for Credit Losses on Loans Rollforward | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | (in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,709 | $ | 2,776 | $ | 12,739 | $ | 1,653 | $ | 595 | $ | 644 | $ | 621 | $ | 2,286 | $ | 23,023 | Beginning balance | $ | 1,709 | $ | 2,776 | $ | 12,739 | $ | 1,653 | $ | 595 | $ | 644 | $ | 621 | $ | 2,286 | $ | 23,023 | ||||||||||||||||||||
(Reversal) Provision | (17) | (159) | (300) | 68 | (65) | (59) | 134 | (87) | (485) | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision (reversal) | Provision (reversal) | 248 | (240) | (1) | 106 | (53) | (54) | 217 | (286) | (63) | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | — | — | — | — | — | — | (22) | — | (22) | Charge-offs | (9) | — | — | — | — | — | (23) | — | (32) | ||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 7 | — | — | 16 | — | — | — | — | 23 | Recoveries | 10 | — | — | 25 | — | — | — | — | 35 | ||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,699 | $ | 2,617 | $ | 12,439 | $ | 1,737 | $ | 530 | $ | 585 | $ | 733 | $ | 2,199 | $ | 22,539 | Ending balance | $ | 1,958 | $ | 2,536 | $ | 12,738 | $ | 1,784 | $ | 542 | $ | 590 | $ | 815 | $ | 2,000 | $ | 22,963 | ||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 2,530 | $ | 2,778 | $ | 12,682 | $ | 1,557 | $ | 738 | $ | 998 | $ | 291 | $ | 1,300 | $ | 22,874 | Beginning balance | $ | 2,530 | $ | 2,778 | $ | 12,682 | $ | 1,557 | $ | 738 | $ | 998 | $ | 291 | $ | 1,300 | $ | 22,874 | ||||||||||||||||||||
(Reversal) Provision | (947) | (741) | (1,921) | (433) | (376) | (385) | (53) | 1,007 | (3,849) | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision (reversal) | Provision (reversal) | (821) | (771) | (910) | (356) | (129) | (381) | 331 | 988 | (2,049) | ||||||||||||||||||||||||||||||||||||||||||||||||
Initial allowance for PCD loans | Initial allowance for PCD loans | 405 | 559 | 533 | — | — | 6 | 2 | — | 1,505 | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | — | — | — | — | — | — | — | — | — | Charge-offs | — | — | — | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 7 | — | — | 18 | 50 | — | — | — | 75 | Recoveries | 10 | — | — | 26 | 50 | — | — | — | 86 | ||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,590 | $ | 2,037 | $ | 10,761 | $ | 1,142 | $ | 412 | $ | 613 | $ | 238 | $ | 2,307 | $ | 19,100 | Ending balance | $ | 2,124 | $ | 2,566 | $ | 12,305 | $ | 1,227 | $ | 659 | $ | 623 | $ | 622 | $ | 2,288 | $ | 22,414 |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||
Commercial lines of credit | Commercial lines of credit | $ | 318,400 | $ | 330,234 | Commercial lines of credit | $ | 283,731 | $ | 330,234 | ||||||
Revolving home equity lines | Revolving home equity lines | 212,208 | 210,938 | Revolving home equity lines | 216,632 | 210,938 | ||||||||||
Undisbursed construction loans | Undisbursed construction loans | 48,671 | 78,381 | Undisbursed construction loans | 47,795 | 78,381 | ||||||||||
Personal and other lines of credit | Personal and other lines of credit | 11,044 | 11,001 | Personal and other lines of credit | 11,556 | 11,001 | ||||||||||
Standby letters of credit | Standby letters of credit | 2,150 | 3,657 | Standby letters of credit | 1,978 | 3,657 | ||||||||||
Total commitments and standby letters of credit | Total commitments and standby letters of credit | $ | 592,473 | $ | 634,211 | Total commitments and standby letters of credit | $ | 561,692 | $ | 634,211 |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||
Operating leases: | Operating leases: | Operating leases: | ||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | $ | 22,353 | $ | 23,604 | Operating lease right-of-use assets | $ | 25,006 | $ | 23,604 | ||||||
Operating lease liabilities | Operating lease liabilities | $ | 24,117 | $ | 25,429 | Operating lease liabilities | $ | 26,744 | $ | 25,429 | ||||||
Finance leases: | Finance leases: | Finance leases: | ||||||||||||||
Finance lease right-of-use assets | Finance lease right-of-use assets | $ | 499 | $ | 499 | Finance lease right-of-use assets | $ | 512 | $ | 499 | ||||||
Accumulated amortization | Accumulated amortization | (155) | (93) | Accumulated amortization | (158) | (93) | ||||||||||
Finance lease right-of-use assets, net1 | Finance lease right-of-use assets, net1 | $ | 344 | $ | 406 | Finance lease right-of-use assets, net1 | $ | 354 | $ | 406 | ||||||
Finance lease liabilities2 | Finance lease liabilities2 | $ | 356 | $ | 419 | Finance lease liabilities2 | $ | 365 | $ | 419 | ||||||
1 Included in premises and equipment in the consolidated statements of condition. | 1 Included in premises and equipment in the consolidated statements of condition. | 1 Included in premises and equipment in the consolidated statements of condition. | ||||||||||||||
2 Included in borrowings and other obligations in the consolidated statements of condition. | 2 Included in borrowings and other obligations in the consolidated statements of condition. | 2 Included in borrowings and other obligations in the consolidated statements of condition. |
Nine months ended | ||||||||
(in thousands) | September 30, 2022 | September 30, 2021 | ||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 4,989 | $ | 2,376 | ||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ | 41 | $ | 444 | ||||
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | (in thousands) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 1,295 | $ | 1,164 | $ | 2,579 | $ | 2,328 | Operating lease cost | $ | 1,328 | $ | 1,216 | $ | 3,907 | $ | 3,543 | ||||||||||||||||
Variable lease cost | Variable lease cost | — | — | — | — | Variable lease cost | — | — | — | — | ||||||||||||||||||||||||
Total operating lease cost1 | Total operating lease cost1 | $ | 1,295 | $ | 1,164 | $ | 2,579 | $ | 2,328 | Total operating lease cost1 | $ | 1,328 | $ | 1,216 | $ | 3,907 | $ | 3,543 | ||||||||||||||||
Finance lease cost: | Finance lease cost: | Finance lease cost: | ||||||||||||||||||||||||||||||||
Amortization of right-of-use assets2 | Amortization of right-of-use assets2 | $ | 31 | $ | 7 | $ | 62 | $ | 34 | Amortization of right-of-use assets2 | $ | 31 | $ | 31 | $ | 93 | $ | 65 | ||||||||||||||||
Interest on finance lease liabilities3 | Interest on finance lease liabilities3 | — | — | 1 | — | Interest on finance lease liabilities3 | 1 | 1 | 2 | 1 | ||||||||||||||||||||||||
Total finance lease cost | Total finance lease cost | $ | 31 | $ | 7 | $ | 63 | $ | 34 | Total finance lease cost | $ | 32 | $ | 32 | $ | 95 | $ | 66 | ||||||||||||||||
Total lease cost | Total lease cost | $ | 1,326 | $ | 1,171 | $ | 2,642 | $ | 2,362 | Total lease cost | $ | 1,360 | $ | 1,248 | $ | 4,002 | $ | 3,609 | ||||||||||||||||
1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. | 1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. | 1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||
2 Included in depreciation and amortization in the consolidated statements of comprehensive income. | 2 Included in depreciation and amortization in the consolidated statements of comprehensive income. | 2 Included in depreciation and amortization in the consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||
3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. | 3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. | 3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. |
(in thousands) | June 30, 2022 | |||||||
Year | Operating Leases | Finance Leases | ||||||
2022 | $ | 2,701 | $ | 62 | ||||
2023 | 4,745 | 117 | ||||||
2024 | 3,837 | 113 | ||||||
2025 | 3,327 | 67 | ||||||
2026 | 2,535 | — | ||||||
Thereafter | 8,467 | — | ||||||
Total minimum lease payments | 25,612 | 359 | ||||||
Amounts representing interest (present value discount) | (1,495) | (3) | ||||||
Present value of net minimum lease payments (lease liability) | $ | 24,117 | $ | 356 | ||||
Weighted average remaining term (in years) | 6.7 | 3.0 | ||||||
Weighted average discount rate | 1.68 | % | 0.59 | % |
(in thousands) | September 30, 2022 | |||||||
Year | Operating Leases | Finance Leases | ||||||
2022 | $ | 1,369 | $ | 32 | ||||
2023 | 5,236 | 125 | ||||||
2024 | 4,412 | 123 | ||||||
2025 | 3,676 | 76 | ||||||
2026 | 2,888 | 10 | ||||||
Thereafter | 11,938 | 5 | ||||||
Total minimum lease payments | 29,519 | 371 | ||||||
Amounts representing interest (present value discount) | (2,775) | (6) | ||||||
Present value of net minimum lease payments (lease liability) | $ | 26,744 | $ | 365 | ||||
Weighted average remaining term (in years) | 7.8 | 3.1 | ||||||
Weighted average discount rate | 2.13 | % | 0.94 | % |
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Fair value hedges: | Fair value hedges: | Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts notional amount | Interest rate contracts notional amount | $ | 5,616 | $ | — | $ | 6,929 | $ | 13,037 | Interest rate contracts notional amount | $ | 12,298 | $ | — | $ | — | $ | 13,037 | ||||||||||||||||
Interest rate contracts fair value1 | Interest rate contracts fair value1 | $ | 206 | $ | — | $ | 104 | $ | 1,085 | Interest rate contracts fair value1 | $ | 649 | $ | — | $ | — | $ | 1,085 |
Carrying Amounts of Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans | Carrying Amounts of Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | (in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Loans | Loans | $ | 12,305 | $ | 13,976 | $ | (241) | $ | 939 | Loans | $ | 11,519 | $ | 13,976 | $ | (779) | $ | 939 |
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | (in thousands) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||
Interest and fees on loans 1 | Interest and fees on loans 1 | $ | 23,334 | $ | 21,429 | $ | 47,011 | $ | 42,090 | Interest and fees on loans 1 | $ | 23,357 | $ | 24,027 | $ | 70,368 | $ | 66,117 | ||||||||||
Increase (decrease) in fair value of designated interest rate swaps due to LIBOR interest rate movements | $ | 430 | $ | (170) | $ | 1,187 | $ | 549 | ||||||||||||||||||||
Increase in fair value of designated interest rate swaps due to LIBOR interest rate movements | Increase in fair value of designated interest rate swaps due to LIBOR interest rate movements | $ | 547 | $ | 97 | $ | 1,734 | $ | 646 | |||||||||||||||||||
Payment on interest rate swaps | Payment on interest rate swaps | (65) | (93) | (150) | (185) | Payment on interest rate swaps | (19) | (93) | (169) | (278) | ||||||||||||||||||
Decrease (increase) in fair value hedging adjustment of hedged loans | (428) | 177 | (1,180) | (537) | ||||||||||||||||||||||||
Decrease in fair value hedging adjustment of hedged loans | Decrease in fair value hedging adjustment of hedged loans | (538) | (94) | (1,718) | (631) | |||||||||||||||||||||||
Decrease in value of yield maintenance agreement | Decrease in value of yield maintenance agreement | (2) | (2) | (5) | (6) | Decrease in value of yield maintenance agreement | (3) | (3) | (8) | (9) | ||||||||||||||||||
Net losses on fair value hedging relationships recognized in interest income | Net losses on fair value hedging relationships recognized in interest income | $ | (65) | $ | (88) | $ | (148) | $ | (179) | Net losses on fair value hedging relationships recognized in interest income | $ | (13) | $ | (93) | $ | (161) | $ | (272) |
Offsetting of Financial Assets and Derivative Assets | ||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | ||||||||||||||||||
Gross Amounts | Offset in the | Assets Presented | the Statements of Condition | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | ||||||||||||||||
(in thousands) | Assets | Condition | of Condition | Instruments | Received | Net Amount | ||||||||||||||
June 30, 2022 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 206 | $ | — | $ | 206 | $ | (206) | $ | — | $ | — | ||||||||
December 31, 2021 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | |||||||||||||||||||||||||||||||||||
Gross Amounts | Offset in the | Liabilities Presented | the Statements of Condition | Gross Amounts | Offset in the | Assets Presented | the Statements of Condition | |||||||||||||||||||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | of Recognized | Statements of | in the Statements | Financial | Cash Collateral | |||||||||||||||||||||||||||||||
(in thousands) | Liabilities1 | Condition | of Condition1 | Instruments | Pledged | Net Amount | ||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Assets | Condition | of Condition | Instruments | Received | Net Amount | |||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Derivatives by Counterparty: | Derivatives by Counterparty: | Derivatives by Counterparty: | ||||||||||||||||||||||||||||||||||||||
Counterparty A | Counterparty A | $ | 104 | $ | — | $ | 104 | $ | (206) | $ | 102 | $ | — | Counterparty A | $ | 649 | $ | — | $ | 649 | $ | (649) | $ | — | $ | — | ||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Derivatives by Counterparty: | Derivatives by Counterparty: | Derivatives by Counterparty: | ||||||||||||||||||||||||||||||||||||||
Counterparty A | Counterparty A | $ | 1,085 | $ | — | $ | 1,085 | $ | — | $ | (1,085) | $ | — | Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | ||||||||||||||||||
Gross Amounts | Offset in the | Liabilities Presented | the Statements of Condition | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | ||||||||||||||||
(in thousands) | Liabilities1 | Condition | of Condition1 | Instruments | Pledged | Net Amount | ||||||||||||||
September 30, 2022 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
December 31, 2021 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 1,085 | $ | — | $ | 1,085 | $ | — | $ | (1,085) | $ | — | ||||||||
(in thousands) | Merger Consideration | ||||
Value of common stock consideration paid to shareholders (0.575 fixed exchange ratio, stock price $36.15) | $ | 124,401 | |||
Cash consideration for stock options | 63 | ||||
Cash paid in lieu of fractional shares | 13 | ||||
Total merger consideration | $ | 124,477 |
Three months ended | Six months ended | ||||||||||||||||
(in thousands, unaudited) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Personnel and severance | $ | 58 | $ | — | $ | 393 | $ | — | |||||||||
Professional services | — | 201 | 67 | 201 | |||||||||||||
Data processing | 29 | — | 77 | — | |||||||||||||
Other expense | 224 | 16 | 321 | 16 | |||||||||||||
Total merger-related one-time and conversion costs | $ | 311 | $ | 217 | $ | 858 | $ | 217 |
Three months ended | Nine months ended | ||||||||||||||||
(in thousands, unaudited) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Personnel and severance | $ | — | $ | 2,668 | $ | 393 | $ | 2,668 | |||||||||
Professional services | — | 1,778 | 67 | 1,979 | |||||||||||||
Data processing | — | 433 | 77 | 433 | |||||||||||||
Other expense | — | 263 | 321 | 279 | |||||||||||||
Total merger-related one-time and conversion costs | $ | — | $ | 5,142 | $ | 858 | $ | 5,359 |
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
(in thousands, unaudited) | (in thousands, unaudited) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | (in thousands, unaudited) | September 30, 2022 | June 30, 2022 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||
Net income | Net income | Net income | ||||||||||||||||||||||||||||||||||||||
Net income (GAAP) | Net income (GAAP) | $ | 11,066 | $ | 10,465 | $ | 21,531 | $ | 18,232 | Net income (GAAP) | $ | 12,174 | $ | 11,066 | $ | 33,705 | $ | 23,514 | ||||||||||||||||||||||
Merger-related one-time and conversion costs: | Merger-related one-time and conversion costs: | Merger-related one-time and conversion costs: | ||||||||||||||||||||||||||||||||||||||
Personnel and severance | Personnel and severance | 58 | 335 | 393 | — | Personnel and severance | — | 58 | 393 | 2,668 | ||||||||||||||||||||||||||||||
Professional services | Professional services | — | 67 | 67 | 201 | Professional services | — | — | 67 | 1,979 | ||||||||||||||||||||||||||||||
Data processing | Data processing | 29 | 48 | 77 | — | Data processing | — | 29 | 77 | 433 | ||||||||||||||||||||||||||||||
Other | Other | 224 | 97 | 321 | 16 | Other | — | 224 | 321 | 279 | ||||||||||||||||||||||||||||||
Total merger costs before tax benefits | Total merger costs before tax benefits | 311 | 547 | 858 | 217 | Total merger costs before tax benefits | — | 311 | 858 | 5,359 | ||||||||||||||||||||||||||||||
Income tax benefit of merger-related expenses | Income tax benefit of merger-related expenses | (92) | (162) | (254) | (17) | Income tax benefit of merger-related expenses | — | (92) | (254) | (1,239) | ||||||||||||||||||||||||||||||
Total merger-related one-time and conversion costs, net of tax benefits | Total merger-related one-time and conversion costs, net of tax benefits | 219 | 385 | 604 | 200 | Total merger-related one-time and conversion costs, net of tax benefits | — | 219 | 604 | 4,120 | ||||||||||||||||||||||||||||||
Comparable net income (non-GAAP) | Comparable net income (non-GAAP) | $ | 11,285 | $ | 10,850 | $ | 22,135 | $ | 18,432 | Comparable net income (non-GAAP) | $ | 12,174 | $ | 11,285 | $ | 34,309 | $ | 27,634 | ||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||
Weighted average diluted shares | Weighted average diluted shares | 15,955 | 15,946 | 15,950 | 13,316 | Weighted average diluted shares | 15,974 | 15,955 | 15,959 | 13,881 | ||||||||||||||||||||||||||||||
Diluted earnings per share (GAAP) | Diluted earnings per share (GAAP) | $ | 0.69 | $ | 0.66 | $ | 1.35 | $ | 1.37 | Diluted earnings per share (GAAP) | $ | 0.76 | $ | 0.69 | $ | 2.11 | $ | 1.69 | ||||||||||||||||||||||
Merger-related one-time and conversion costs, net of tax benefits | Merger-related one-time and conversion costs, net of tax benefits | 0.02 | 0.02 | 0.04 | 0.01 | Merger-related one-time and conversion costs, net of tax benefits | — | 0.02 | 0.04 | 0.30 | ||||||||||||||||||||||||||||||
Comparable diluted earnings per share (non-GAAP) | Comparable diluted earnings per share (non-GAAP) | $ | 0.71 | $ | 0.68 | $ | 1.39 | $ | 1.38 | Comparable diluted earnings per share (non-GAAP) | $ | 0.76 | $ | 0.71 | $ | 2.15 | $ | 1.99 | ||||||||||||||||||||||
Return on average assets | Return on average assets | Return on average assets | ||||||||||||||||||||||||||||||||||||||
Average assets | Average assets | $ | 4,312,919 | $ | 4,345,258 | $ | 4,328,999 | $ | 3,044,933 | Average assets | $ | 4,334,842 | $ | 4,312,919 | $ | 4,330,968 | $ | 3,280,505 | ||||||||||||||||||||||
Return on average assets (GAAP) | Return on average assets (GAAP) | 1.03 | % | 0.98 | % | 1.00 | % | 1.21 | % | Return on average assets (GAAP) | 1.11 | % | 1.03 | % | 1.04 | % | 0.96 | % | ||||||||||||||||||||||
Comparable return on average assets (non-GAAP) | Comparable return on average assets (non-GAAP) | 1.05 | % | 1.01 | % | 1.03 | % | 1.22 | % | Comparable return on average assets (non-GAAP) | 1.11 | % | 1.05 | % | 1.06 | % | 1.13 | % | ||||||||||||||||||||||
Return on average equity | Return on average equity | Return on average equity | ||||||||||||||||||||||||||||||||||||||
Average stockholders' equity | Average stockholders' equity | $ | 413,271 | $ | 441,626 | $ | 427,370 | $ | 351,227 | Average stockholders' equity | $ | 414,619 | $ | 413,271 | $ | 423,073 | $ | 374,445 | ||||||||||||||||||||||
Return on average equity (GAAP) | Return on average equity (GAAP) | 10.74 | % | 9.61 | % | 10.16 | % | 10.47 | % | Return on average equity (GAAP) | 11.65 | % | 10.74 | % | 10.65 | % | 8.40 | % | ||||||||||||||||||||||
Comparable return on average equity (non-GAAP) | Comparable return on average equity (non-GAAP) | 10.95 | % | 9.96 | % | 10.44 | % | 10.58 | % | Comparable return on average equity (non-GAAP) | 11.65 | % | 10.95 | % | 10.84 | % | 9.87 | % | ||||||||||||||||||||||
Efficiency ratio | Efficiency ratio | Efficiency ratio | ||||||||||||||||||||||||||||||||||||||
Non-interest expense (GAAP) | Non-interest expense (GAAP) | $ | 18,906 | $ | 19,375 | $ | 38,281 | $ | 30,968 | Non-interest expense (GAAP) | $ | 18,678 | $ | 18,906 | $ | 56,959 | $ | 53,654 | ||||||||||||||||||||||
Merger-related expenses | Merger-related expenses | (311) | (547) | (858) | (217) | Merger-related expenses | — | (311) | (858) | (5,359) | ||||||||||||||||||||||||||||||
Non-interest expense (non-GAAP) | Non-interest expense (non-GAAP) | $ | 18,595 | $ | 18,828 | $ | 37,423 | $ | 30,751 | Non-interest expense (non-GAAP) | $ | 18,678 | $ | 18,595 | $ | 56,101 | $ | 48,295 | ||||||||||||||||||||||
Net interest income | Net interest income | $ | 31,197 | $ | 29,898 | $ | 61,095 | $ | 46,565 | Net interest income | $ | 33,027 | $ | 31,197 | $ | 94,122 | $ | 74,318 | ||||||||||||||||||||||
Non-interest income | Non-interest income | $ | 2,728 | $ | 2,867 | $ | 5,595 | $ | 3,848 | Non-interest income | $ | 2,723 | $ | 2,728 | $ | 8,318 | $ | 7,413 | ||||||||||||||||||||||
Efficiency ratio (GAAP) | Efficiency ratio (GAAP) | 55.73 | % | 59.13 | % | 57.40 | % | 61.43 | % | Efficiency ratio (GAAP) | 52.24 | % | 55.73 | % | 55.60 | % | 65.65 | % | ||||||||||||||||||||||
Comparable efficiency ratio (non-GAAP) | Comparable efficiency ratio (non-GAAP) | 54.81 | % | 57.46 | % | 56.11 | % | 61.00 | % | Comparable efficiency ratio (non-GAAP) | 52.24 | % | 54.81 | % | 54.76 | % | 59.09 | % |
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | (dollars in thousands, except per share data) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | (dollars in thousands, except per share data) | September 30, 2022 | June 30, 2022 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||
Selected operating data: | Selected operating data: | Selected operating data: | ||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 31,197 | $ | 29,898 | $ | 61,095 | $ | 46,565 | Net interest income | $ | 33,027 | $ | 31,197 | $ | 94,122 | $ | 74,318 | ||||||||||||||||||||||
Reversal of credit losses on loans | — | (485) | (485) | (3,849) | ||||||||||||||||||||||||||||||||||||
Provision for (reversal of) credit losses on loans | Provision for (reversal of) credit losses on loans | 422 | — | (63) | (2,049) | |||||||||||||||||||||||||||||||||||
Reversal of credit losses on unfunded loan commitments | Reversal of credit losses on unfunded loan commitments | — | (318) | (318) | (1,202) | Reversal of credit losses on unfunded loan commitments | — | — | (318) | (1,202) | ||||||||||||||||||||||||||||||
Non-interest income | Non-interest income | 2,728 | 2,867 | 5,595 | 3,848 | Non-interest income | 2,723 | 2,728 | 8,318 | 7,413 | ||||||||||||||||||||||||||||||
Non-interest expense | Non-interest expense | 18,906 | 19,375 | 38,281 | 30,968 | Non-interest expense | 18,678 | 18,906 | 56,959 | 53,654 | ||||||||||||||||||||||||||||||
Net income | Net income | 11,066 | 10,465 | 21,531 | 18,232 | Net income | 12,174 | 11,066 | 33,705 | 23,514 | ||||||||||||||||||||||||||||||
Net income per common share: | Net income per common share: | Net income per common share: | ||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.70 | $ | 0.66 | $ | 1.35 | $ | 1.38 | Basic | $ | 0.76 | $ | 0.70 | $ | 2.12 | $ | 1.70 | ||||||||||||||||||||||
Diluted | Diluted | $ | 0.69 | $ | 0.66 | $ | 1.35 | $ | 1.37 | Diluted | $ | 0.76 | $ | 0.69 | $ | 2.11 | $ | 1.69 | ||||||||||||||||||||||
Performance and other financial ratios: | Performance and other financial ratios: | Performance and other financial ratios: | ||||||||||||||||||||||||||||||||||||||
Return on average assets | Return on average assets | 1.03 | % | 0.98 | % | 1.00 | % | 1.21 | % | Return on average assets | 1.11 | % | 1.03 | % | 1.04 | % | 0.96 | % | ||||||||||||||||||||||
Return on average equity | Return on average equity | 10.74 | % | 9.61 | % | 10.16 | % | 10.47 | % | Return on average equity | 11.65 | % | 10.74 | % | 10.65 | % | 8.40 | % | ||||||||||||||||||||||
Tax-equivalent net interest margin 1 | Tax-equivalent net interest margin 1 | 3.05 | % | 2.96 | % | 3.01 | % | 3.28 | % | Tax-equivalent net interest margin 1 | 3.16 | % | 3.05 | % | 3.06 | % | 3.23 | % | ||||||||||||||||||||||
Cost of deposits | Cost of deposits | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | Cost of deposits | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | ||||||||||||||||||||||
Efficiency ratio | Efficiency ratio | 55.73 | % | 59.13 | % | 57.40 | % | 61.43 | % | Efficiency ratio | 52.24 | % | 55.73 | % | 55.60 | % | 65.65 | % | ||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 8 | $ | (9) | $ | (1) | $ | (75) | ||||||||||||||||||||||||||||||||
Net (recoveries) charge-offs | Net (recoveries) charge-offs | $ | (2) | $ | 8 | $ | (3) | $ | (83) | |||||||||||||||||||||||||||||||
Cash dividend payout ratio on common stock 2 | Cash dividend payout ratio on common stock 2 | 34.29 | % | 36.36 | % | 35.56 | % | 33.33 | % | Cash dividend payout ratio on common stock 2 | 32.89 | % | 34.29 | % | 34.43 | % | 41.18 | % |
(dollars in thousands, except per share data) | (dollars in thousands, except per share data) | June 30, 2022 | December 31, 2021 | (dollars in thousands, except per share data) | September 30, 2022 | December 31, 2021 | ||||||||||
Selected financial condition data: | Selected financial condition data: | Selected financial condition data: | ||||||||||||||
Total assets | Total assets | $ | 4,326,904 | $ | 4,314,209 | Total assets | $ | 4,348,653 | $ | 4,314,209 | ||||||
Loans, net | Loans, net | 2,140,093 | 2,232,622 | Loans, net | 2,135,373 | 2,232,622 | ||||||||||
Deposits | Deposits | 3,830,670 | 3,808,550 | Deposits | 3,902,710 | 3,808,550 | ||||||||||
Borrowings and other obligations | Borrowings and other obligations | 356 | 419 | Borrowings and other obligations | 365 | 419 | ||||||||||
Stockholders' equity | Stockholders' equity | 409,573 | 450,368 | Stockholders' equity | 396,592 | 450,368 | ||||||||||
Book value per share | Book value per share | 25.58 | 28.27 | Book value per share | 24.74 | 28.27 | ||||||||||
Asset quality ratios: | Asset quality ratios: | Asset quality ratios: | ||||||||||||||
Allowance for credit losses on loans to total loans | Allowance for credit losses on loans to total loans | 1.04 | % | 1.02 | % | Allowance for credit losses on loans to total loans | 1.06 | % | 1.02 | % | ||||||
Allowance for credit losses on loans to total loans, excluding SBA PPP loans 3 | Allowance for credit losses on loans to total loans, excluding SBA PPP loans 3 | 1.05 | % | 1.07 | % | Allowance for credit losses on loans to total loans, excluding SBA PPP loans 3 | 1.07 | % | 1.07 | % | ||||||
Allowance for credit losses on loans to non-performing loans | Allowance for credit losses on loans to non-performing loans | 2.81x | 2.75x | Allowance for credit losses on loans to non-performing loans | 2.16x | 2.75x | ||||||||||
Non-accrual loans to total loans | Non-accrual loans to total loans | 0.37 | % | 0.37 | % | Non-accrual loans to total loans | 0.49 | % | 0.37 | % | ||||||
Capital ratios: | Capital ratios: | Capital ratios: | ||||||||||||||
Equity to total assets ratio | Equity to total assets ratio | 9.47 | % | 10.44 | % | Equity to total assets ratio | 9.12 | % | 10.44 | % | ||||||
Tangible common equity to tangible assets 4 | Tangible common equity to tangible assets 4 | 7.79 | % | 8.76 | % | Tangible common equity to tangible assets 4 | 7.45 | % | 8.76 | % | ||||||
Total capital (to risk-weighted assets) | Total capital (to risk-weighted assets) | 14.67 | % | 14.58 | % | Total capital (to risk-weighted assets) | 15.06 | % | 14.58 | % | ||||||
Tier 1 capital (to risk-weighted assets) | Tier 1 capital (to risk-weighted assets) | 13.84 | % | 13.70 | % | Tier 1 capital (to risk-weighted assets) | 14.21 | % | 13.70 | % | ||||||
Tier 1 capital (to average assets) | Tier 1 capital (to average assets) | 9.07 | % | 8.85 | % | Tier 1 capital (to average assets) | 9.21 | % | 8.85 | % | ||||||
Common equity Tier 1 capital (to risk weighted assets) | Common equity Tier 1 capital (to risk weighted assets) | 13.84 | % | 13.70 | % | Common equity Tier 1 capital (to risk weighted assets) | 14.21 | % | 13.70 | % | ||||||
1 Tax-equivalent net interest margin is computed by dividing taxable equivalent net interest income, which is adjusted for taxable equivalent income on tax-exempt loans and securities based on Federal statutory rate of 21 percent, by total average interest-earning assets. | 1 Tax-equivalent net interest margin is computed by dividing taxable equivalent net interest income, which is adjusted for taxable equivalent income on tax-exempt loans and securities based on Federal statutory rate of 21 percent, by total average interest-earning assets. | 1 Tax-equivalent net interest margin is computed by dividing taxable equivalent net interest income, which is adjusted for taxable equivalent income on tax-exempt loans and securities based on Federal statutory rate of 21 percent, by total average interest-earning assets. | ||||||||||||||
2 Calculated as dividends on common shares divided by basic net income per common share. | 2 Calculated as dividends on common shares divided by basic net income per common share. | 2 Calculated as dividends on common shares divided by basic net income per common share. | ||||||||||||||
3 The allowance for credit losses on loans to total loans, excluding SBA-guaranteed PPP loans, is considered a meaningful non-GAAP financial measure, as it represents only those loans that were considered in the calculation of the allowance for credit losses on loans. SBA PPP loans at June 30, 2022 and December 31, 2021 totaled $17.0 million and $111.2 million, respectively. | ||||||||||||||||
4 Tangible common equity to tangible assets is considered to be a meaningful non-GAAP financial measure of capital adequacy and is useful for investors to assess Bancorp's ability to absorb potential losses. Tangible common equity of $331 million and $371 million at June 30, 2022 and December 31, 2021, respectively, includes common stock, retained earnings and unrealized gains (losses) on available-for sale securities, net of tax, less goodwill and intangible assets. Tangible assets exclude goodwill and intangible assets of $78.6 million and $79.4 million at June 30, 2022 and December 31, 2021, respectively. | ||||||||||||||||
3 The allowance for credit losses on loans to total loans, excluding SBA-guaranteed PPP loans, is considered a meaningful non-GAAP financial measure, as it represents only those loans that were considered in the calculation of the allowance for credit losses on loans. SBA PPP loans at September 30, 2022 and December 31, 2021 totaled $7.6 million and $111.2 million, respectively. | 3 The allowance for credit losses on loans to total loans, excluding SBA-guaranteed PPP loans, is considered a meaningful non-GAAP financial measure, as it represents only those loans that were considered in the calculation of the allowance for credit losses on loans. SBA PPP loans at September 30, 2022 and December 31, 2021 totaled $7.6 million and $111.2 million, respectively. | |||||||||||||||
4 Tangible common equity to tangible assets is considered to be a meaningful non-GAAP financial measure of capital adequacy and is useful for investors to assess Bancorp's ability to absorb potential losses. Tangible common equity of $318 million and $371 million at September 30, 2022 and December 31, 2021, respectively, includes common stock, retained earnings and unrealized gains (losses) on available-for sale securities, net of tax, less goodwill and intangible assets. Tangible assets exclude goodwill and intangible assets of $78.2 million and $79.4 million at September 30, 2022 and December 31, 2021, respectively. | 4 Tangible common equity to tangible assets is considered to be a meaningful non-GAAP financial measure of capital adequacy and is useful for investors to assess Bancorp's ability to absorb potential losses. Tangible common equity of $318 million and $371 million at September 30, 2022 and December 31, 2021, respectively, includes common stock, retained earnings and unrealized gains (losses) on available-for sale securities, net of tax, less goodwill and intangible assets. Tangible assets exclude goodwill and intangible assets of $78.2 million and $79.4 million at September 30, 2022 and December 31, 2021, respectively. |
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | (dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks 1 | $ | 95,326 | $ | 180 | 0.75 | % | $ | 231,555 | $ | 106 | 0.18 | % | Interest-earning deposits with banks 1 | $ | 94,963 | $ | 546 | 2.24 | % | $ | 95,326 | $ | 180 | 0.75 | % | |||||||||||||||||||||||||||||||||||||||
Investment securities 2, 3 | 1,807,710 | 8,469 | 1.87 | % | 1,626,537 | 6,871 | 1.69 | % | Investment securities 2, 3 | 1,875,660 | 9,875 | 2.11 | % | 1,807,710 | 8,469 | 1.87 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Loans 1, 3, 4 | 2,194,810 | 23,522 | 4.24 | % | 2,227,495 | 23,881 | 4.29 | % | Loans 1, 3, 4 | 2,166,879 | 23,540 | 4.25 | % | 2,194,810 | 23,522 | 4.24 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets 1 | 4,097,846 | 32,171 | 3.11 | % | 4,085,587 | 30,858 | 3.09 | % | Total interest-earning assets 1 | 4,137,502 | 33,961 | 3.21 | % | 4,097,846 | 32,171 | 3.21 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and non-interest-bearing due from banks | 56,408 | 69,019 | Cash and non-interest-bearing due from banks | 44,597 | 56,408 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank premises and equipment, net | 7,182 | 7,430 | Bank premises and equipment, net | 7,052 | 7,182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest receivable and other assets, net | 151,483 | 183,222 | Interest receivable and other assets, net | 145,691 | 151,483 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 4,312,919 | $ | 4,345,258 | Total assets | $ | 4,334,842 | $ | 4,312,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | Liabilities and Stockholders' Equity | Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 300,258 | $ | 53 | 0.07 | % | $ | 295,183 | $ | 56 | 0.08 | % | Interest-bearing transaction accounts | $ | 293,296 | $ | 121 | 0.16 | % | $ | 300,258 | $ | 53 | 0.07 | % | |||||||||||||||||||||||||||||||||||||||
Savings accounts | 343,338 | 32 | 0.04 | % | 343,327 | 29 | 0.03 | % | Savings accounts | 341,468 | 32 | 0.04 | % | 343,338 | 32 | 0.04 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Money market accounts | 1,076,912 | 438 | 0.16 | % | 1,122,215 | 478 | 0.17 | % | Money market accounts | 1,025,722 | 268 | 0.10 | % | 1,076,912 | 438 | 0.16 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Time accounts including CDARS | 144,432 | 67 | 0.19 | % | 147,707 | 14 | 0.04 | % | Time accounts including CDARS | 142,341 | 128 | 0.36 | % | 144,432 | 67 | 0.19 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and other obligations 1 | 370 | — | 0.61 | % | 399 | 1 | 0.62 | % | Borrowings and other obligations 1 | 337 | 1 | 0.93 | % | 370 | — | 0.61 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Subordinated debenture 1, 5 | — | — | — | % | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,865,310 | 590 | 0.13 | % | 1,908,831 | 578 | 0.12 | % | Total interest-bearing liabilities | 1,803,164 | 550 | 0.12 | % | 1,865,310 | 590 | 0.13 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Demand accounts | 1,984,629 | 1,942,804 | Demand accounts | 2,069,476 | 1,984,629 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 49,709 | 51,997 | Interest payable and other liabilities | 47,583 | 49,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 413,271 | 441,626 | Stockholders' equity | 414,619 | 413,271 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | Total liabilities & stockholders' equity | $ | 4,312,919 | $ | 4,345,258 | Total liabilities & stockholders' equity | $ | 4,334,842 | $ | 4,312,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | Tax-equivalent net interest income/margin 1 | $ | 31,581 | 3.05 | % | $ | 30,280 | 2.96 | % | Tax-equivalent net interest income/margin 1 | $ | 33,411 | 3.16 | % | $ | 31,581 | 3.05 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Reported net interest income/margin 1 | Reported net interest income/margin 1 | $ | 31,197 | 3.01 | % | $ | 29,898 | 2.93 | % | Reported net interest income/margin 1 | $ | 33,027 | 3.12 | % | $ | 31,197 | 3.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent net interest rate spread | Tax-equivalent net interest rate spread | 2.98 | % | 2.90 | % | Tax-equivalent net interest rate spread | 3.09 | % | 2.98 | % |
Six months ended | Six months ended | ||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks 1 | $ | 163,064 | $ | 286 | 0.35 | % | $ | 179,846 | $ | 96 | 0.11 | % | |||||||||||||||||||||||
Investment securities 2, 3 | 1,717,624 | 15,340 | 1.79 | % | 601,498 | 6,948 | 2.31 | % | |||||||||||||||||||||||||||
Loans 1, 3, 4 | 2,211,062 | 47,403 | 4.26 | % | 2,081,069 | 42,437 | 4.06 | % | |||||||||||||||||||||||||||
Total interest-earning assets 1 | 4,091,750 | 63,029 | 3.06 | % | 2,862,413 | 49,481 | 3.44 | % | |||||||||||||||||||||||||||
Cash and non-interest-bearing due from banks | 62,679 | 45,059 | |||||||||||||||||||||||||||||||||
Bank premises and equipment, net | 7,305 | 4,786 | |||||||||||||||||||||||||||||||||
Interest receivable and other assets, net | 167,265 | 132,675 | |||||||||||||||||||||||||||||||||
Total assets | $ | 4,328,999 | $ | 3,044,933 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 297,734 | $ | 109 | 0.07 | % | $ | 170,943 | $ | 78 | 0.09 | % | |||||||||||||||||||||||
Savings accounts | 343,333 | 61 | 0.04 | % | 220,946 | 40 | 0.04 | % | |||||||||||||||||||||||||||
Money market accounts | 1,099,439 | 916 | 0.17 | % | 719,769 | 598 | 0.17 | % | |||||||||||||||||||||||||||
Time accounts including CDARS | 146,061 | 81 | 0.11 | % | 95,849 | 177 | 0.37 | % | |||||||||||||||||||||||||||
Borrowings and other obligations 1 | 384 | 1 | 0.62 | % | 50 | — | 1.46 | % | |||||||||||||||||||||||||||
Subordinated debenture 1, 5 | — | — | — | % | 1,076 | 1,361 | 251.54 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,886,951 | 1,168 | 0.12 | % | 1,208,633 | 2,254 | 0.38 | % | |||||||||||||||||||||||||||
Demand accounts | 1,963,832 | 1,442,320 | |||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 50,846 | 42,753 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 427,370 | 351,227 | |||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 4,328,999 | $ | 3,044,933 | |||||||||||||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 61,861 | 3.01 | % | $ | 47,227 | 3.28 | % | |||||||||||||||||||||||||||
Reported net interest income/margin 1 | $ | 61,095 | 2.97 | % | $ | 46,565 | 3.24 | % | |||||||||||||||||||||||||||
Tax-equivalent net interest rate spread | 2.94 | % | 3.06 | % | |||||||||||||||||||||||||||||||
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable. | |||||||||||||||||||||||||||||||||||
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly. | |||||||||||||||||||||||||||||||||||
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent in 2022 and 2021. | |||||||||||||||||||||||||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. | |||||||||||||||||||||||||||||||||||
5 2021 interest on subordinated debenture included $1.3 million in accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021. | |||||||||||||||||||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks 1 | $ | 140,114 | $ | 832 | 0.78 | % | $ | 273,045 | $ | 274 | 0.13 | % | |||||||||||||||||||||||
Investment securities 2, 3 | 1,770,882 | 25,214 | 1.90 | % | 683,600 | 11,196 | 2.18 | % | |||||||||||||||||||||||||||
Loans 1, 3, 4 | 2,196,173 | 70,944 | 4.26 | % | 2,117,631 | 66,665 | 4.15 | % | |||||||||||||||||||||||||||
Total interest-earning assets 1 | 4,107,169 | 96,990 | 3.11 | % | 3,074,276 | 78,135 | 3.35 | % | |||||||||||||||||||||||||||
Cash and non-interest-bearing due from banks | 56,585 | 53,020 | |||||||||||||||||||||||||||||||||
Bank premises and equipment, net | 7,220 | 5,353 | |||||||||||||||||||||||||||||||||
Interest receivable and other assets, net | 159,994 | 147,856 | |||||||||||||||||||||||||||||||||
Total assets | $ | 4,330,968 | $ | 3,280,505 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 296,239 | $ | 230 | 0.10 | % | $ | 193,502 | $ | 119 | 0.08 | % | |||||||||||||||||||||||
Savings accounts | 342,704 | 93 | 0.04 | % | 245,374 | 66 | 0.04 | % | |||||||||||||||||||||||||||
Money market accounts | 1,074,597 | 1,184 | 0.15 | % | 784,313 | 1,015 | 0.17 | % | |||||||||||||||||||||||||||
Time accounts including CDARS | 144,807 | 209 | 0.19 | % | 105,419 | 221 | 0.28 | % | |||||||||||||||||||||||||||
Borrowings and other obligations 1 | 368 | 2 | 0.71 | % | 1,047 | 8 | 1.10 | % | |||||||||||||||||||||||||||
Subordinated debenture 1, 5 | — | — | — | % | 713 | 1,361 | 251.54 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,858,715 | 1,718 | 0.12 | % | 1,330,368 | 2,790 | 0.28 | % | |||||||||||||||||||||||||||
Demand accounts | 1,999,433 | 1,531,564 | |||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 49,747 | 44,128 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 423,073 | 374,445 | |||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 4,330,968 | $ | 3,280,505 | |||||||||||||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 95,272 | 3.06 | % | $ | 75,345 | 3.23 | % | |||||||||||||||||||||||||||
Reported net interest income/margin 1 | $ | 94,122 | 3.02 | % | $ | 74,318 | 3.19 | % | |||||||||||||||||||||||||||
Tax-equivalent net interest rate spread | 2.99 | % | 3.07 | % | |||||||||||||||||||||||||||||||
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable. | |||||||||||||||||||||||||||||||||||
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly. | |||||||||||||||||||||||||||||||||||
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent in 2022 and 2021. | |||||||||||||||||||||||||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. | |||||||||||||||||||||||||||||||||||
5 2021 interest on subordinated debenture included $1.3 million in accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021. | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 Compared to Three Months Ended March 31, 2022 | Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021 | Three Months Ended September 30, 2022 Compared to Three Months Ended June 30, 2022 | Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Volume | Yield/Rate | Mix | Total | Volume | Yield/Rate | Mix | Total | (in thousands) | Volume | Yield/Rate | Mix | Total | Volume | Yield/Rate | Mix | Total | ||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks | Interest-earning deposits with banks | $ | (63) | $ | 325 | $ | (188) | $ | 74 | $ | (9) | $ | 221 | $ | (22) | $ | 190 | Interest-earning deposits with banks | $ | (1) | $ | 361 | $ | 6 | $ | 366 | $ | (133) | $ | 1,345 | $ | (654) | $ | 558 | ||||||||||||||||||||||||
Investment securities 1 | Investment securities 1 | 765 | 749 | 84 | 1,598 | 12,893 | (1,576) | (2,925) | 8,392 | Investment securities 1 | 318 | 1,048 | 40 | 1,406 | 17,808 | (1,462) | (2,328) | 14,018 | ||||||||||||||||||||||||||||||||||||||||
Loans 1 | Loans 1 | (350) | (271) | 262 | (359) | 2,651 | 2,179 | 136 | 4,966 | Loans 1 | (299) | 63 | 254 | 18 | 2,473 | 1,742 | 64 | 4,279 | ||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | Total interest-earning assets | 352 | 803 | 158 | 1,313 | 15,535 | 824 | (2,811) | 13,548 | Total interest-earning assets | 18 | 1,472 | 300 | 1,790 | 20,148 | 1,625 | (2,918) | 18,855 | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | Interest-bearing transaction accounts | 1 | (4) | — | (3) | 58 | (15) | (12) | 31 | Interest-bearing transaction accounts | (1) | 70 | (1) | 68 | 63 | 31 | 17 | 111 | ||||||||||||||||||||||||||||||||||||||||
Savings accounts | Savings accounts | — | 3 | — | 3 | 22 | (1) | — | 21 | Savings accounts | — | — | — | — | 26 | 1 | — | 27 | ||||||||||||||||||||||||||||||||||||||||
Money market accounts | Money market accounts | (19) | (27) | 6 | (40) | 315 | 2 | 1 | 318 | Money market accounts | (21) | (160) | 11 | (170) | 376 | (151) | (56) | 169 | ||||||||||||||||||||||||||||||||||||||||
Time accounts, including CDARS | Time accounts, including CDARS | — | 54 | (1) | 53 | 93 | (124) | (65) | (96) | Time accounts, including CDARS | (1) | 61 | 1 | 61 | 83 | (69) | (26) | (12) | ||||||||||||||||||||||||||||||||||||||||
Borrowings and other obligations | Borrowings and other obligations | — | — | (1) | (1) | — | — | 1 | 1 | Borrowings and other obligations | — | — | 1 | 1 | (6) | (3) | 3 | (6) | ||||||||||||||||||||||||||||||||||||||||
Subordinated debenture 2 | Subordinated debenture 2 | — | — | — | — | — | (1,361) | — | (1,361) | Subordinated debenture 2 | — | — | — | — | — | (1,361) | — | (1,361) | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | Total interest-bearing liabilities | (18) | 26 | 4 | 12 | 488 | (1,499) | (75) | (1,086) | Total interest-bearing liabilities | (23) | (29) | 12 | (40) | 542 | (1,552) | (62) | (1,072) | ||||||||||||||||||||||||||||||||||||||||
Changes in tax-equivalent net interest income | Changes in tax-equivalent net interest income | $ | 370 | $ | 777 | $ | 154 | $ | 1,301 | $ | 15,047 | $ | 2,323 | $ | (2,736) | $ | 14,634 | Changes in tax-equivalent net interest income | $ | 41 | $ | 1,501 | $ | 288 | $ | 1,830 | $ | 19,606 | $ | 3,177 | $ | (2,856) | $ | 19,927 | ||||||||||||||||||||||||
1 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21%. | 1 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21%. | 1 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 Six months ended June 30, 2021 includes $1.3 million in accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 Nine months ended September 30, 2021 includes $1.3 million in accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021. | 2 Nine months ended September 30, 2021 includes $1.3 million in accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021. |
Three months ended | Six months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | (dollars in thousands) | September 30, 2022 | June 30, 2022 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||
Reversal of credit losses on loans | $ | — | $ | (485) | $ | (485) | $ | (3,849) | ||||||||||||||||||||||||||||||||
Provision for (reversal of) credit losses on loans | Provision for (reversal of) credit losses on loans | $ | 422 | $ | — | $ | (63) | $ | (2,049) |
Three months ended | Amount Change | Percent Change | Three months ended | Amount Change | Percent Change | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | March 31, 2022 | (dollars in thousands) | Amount Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||
Wealth Management and Trust Services | Wealth Management and Trust Services | $ | 630 | $ | 600 | $ | 30 | 5.0 | % | Wealth Management and Trust Services | $ | 507 | $ | 630 | (19.5) | % | ||||||||||||||||||||||||||||||
Debit card interchange fees, net | Debit card interchange fees, net | 531 | 505 | 26 | 5.1 | % | Debit card interchange fees, net | 502 | 531 | (29) | (5.5) | % | ||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | Service charges on deposit accounts | 465 | 488 | (23) | (4.7) | % | Service charges on deposit accounts | 535 | 465 | 70 | 15.1 | % | ||||||||||||||||||||||||||||||||||
Earnings on bank-owned life insurance, net | Earnings on bank-owned life insurance, net | 298 | 413 | (115) | (27.8) | % | Earnings on bank-owned life insurance, net | 222 | 298 | (76) | (25.5) | % | ||||||||||||||||||||||||||||||||||
Dividends on Federal Home Loan Bank stock | Dividends on Federal Home Loan Bank stock | 249 | 259 | (10) | (3.9) | % | Dividends on Federal Home Loan Bank stock | 251 | 249 | 2 | 0.8 | % | ||||||||||||||||||||||||||||||||||
Merchant interchange fees, net | Merchant interchange fees, net | 149 | 140 | 9 | 6.4 | % | Merchant interchange fees, net | 141 | 149 | (8) | (5.4) | % | ||||||||||||||||||||||||||||||||||
Losses on sale of investment securities, net | Losses on sale of investment securities, net | (63) | — | (63) | NM | |||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 406 | 462 | (56) | (12.1) | % | Other income | 628 | 406 | 222 | 54.7 | % | ||||||||||||||||||||||||||||||||||
Total non-interest income | Total non-interest income | $ | 2,728 | $ | 2,867 | $ | (139) | (4.8) | % | Total non-interest income | $ | 2,723 | $ | 2,728 | $ | (5) | (0.2) | % | ||||||||||||||||||||||||||||
NM - not meaningful | NM - not meaningful |
Six months ended | Amount Change | Percent Change | Nine months ended | Amount Change | Percent Change | |||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | June 30, 2021 | (dollars in thousands) | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
Wealth Management and Trust Services | Wealth Management and Trust Services | $ | 1,230 | $ | 1,018 | $ | 212 | 20.8 | % | Wealth Management and Trust Services | $ | 1,737 | $ | 1,615 | $ | 122 | 7.6 | % | ||||||||||
Debit card interchange fees, net | Debit card interchange fees, net | 1,036 | 785 | 251 | 32.0 | % | Debit card interchange fees, net | 1,538 | 1,268 | 270 | 21.3 | % | ||||||||||||||||
Service charges on deposit accounts | Service charges on deposit accounts | 953 | 598 | 355 | 59.4 | % | Service charges on deposit accounts | 1,488 | 1,062 | 426 | 40.1 | % | ||||||||||||||||
Earnings on bank-owned life insurance, net | Earnings on bank-owned life insurance, net | 711 | 490 | 221 | 45.1 | % | Earnings on bank-owned life insurance, net | 933 | 1,892 | (959) | (50.7) | % | ||||||||||||||||
Dividends on Federal Home Loan Bank stock | Dividends on Federal Home Loan Bank stock | 508 | 326 | 182 | 55.8 | % | Dividends on Federal Home Loan Bank stock | 759 | 505 | 254 | 50.3 | % | ||||||||||||||||
Merchant interchange fees, net | Merchant interchange fees, net | 289 | 118 | 171 | 144.9 | % | Merchant interchange fees, net | 430 | 247 | 183 | 74.1 | % | ||||||||||||||||
(Losses) gains on sale of investment securities, net | (Losses) gains on sale of investment securities, net | (63) | 1 | (64) | NM | |||||||||||||||||||||||
Other income | Other income | 868 | 513 | 355 | 69.2 | % | Other income | 1,496 | 823 | 673 | 81.8 | % | ||||||||||||||||
Total non-interest income | Total non-interest income | $ | 5,595 | $ | 3,848 | $ | 1,747 | 45.4 | % | Total non-interest income | $ | 8,318 | $ | 7,413 | $ | 905 | 12.2 | % | ||||||||||
NM - not meaningful | NM - not meaningful |
Three months ended | Amount Change | Percent Change | Three months ended | Amount Change | Percent Change | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | March 31, 2022 | (dollars in thousands) | Amount Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||
Salaries and related benefits | Salaries and related benefits | $ | 10,341 | $ | 11,548 | $ | (1,207) | (10.5) | % | Salaries and related benefits | $ | 10,557 | $ | 10,341 | 2.1 | % | ||||||||||||||||||||||||||||||
Occupancy and equipment | Occupancy and equipment | 1,894 | 1,909 | (15) | (0.8) | % | Occupancy and equipment | 1,941 | 1,891 | 50 | 2.6 | % | ||||||||||||||||||||||||||||||||||
Data processing | Data processing | 1,199 | 1,277 | (78) | (6.1) | % | Data processing | 1,093 | 1,199 | (106) | (8.8) | % | ||||||||||||||||||||||||||||||||||
Professional services | Professional services | 665 | 913 | (248) | (27.2) | % | Professional services | 736 | 665 | 71 | 10.7 | % | ||||||||||||||||||||||||||||||||||
Information technology | Information technology | 468 | 478 | (10) | (2.1) | % | Information technology | 573 | 468 | 105 | 22.4 | % | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 393 | 452 | (59) | (13.1) | % | Depreciation and amortization | 414 | 393 | 21 | 5.3 | % | ||||||||||||||||||||||||||||||||||
Amortization of core deposit intangible | Amortization of core deposit intangible | 374 | 380 | (6) | (1.6) | % | Amortization of core deposit intangible | 370 | 374 | (4) | (1.1) | % | ||||||||||||||||||||||||||||||||||
Federal Deposit Insurance Corporation insurance | Federal Deposit Insurance Corporation insurance | 300 | 296 | 4 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||
Directors' expense | Directors' expense | 294 | 311 | (17) | (5.5) | % | Directors' expense | 233 | 294 | (61) | (20.7) | % | ||||||||||||||||||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 296 | 290 | 6 | 2.1 | % | |||||||||||||||||||||||||||||||||||||||||
Charitable contributions | Charitable contributions | 511 | 45 | 466 | 1,035.6 | % | Charitable contributions | 49 | 511 | (462) | (90.4) | % | ||||||||||||||||||||||||||||||||||
Other real estate owned | Other real estate owned | 350 | 3 | 347 | NM | |||||||||||||||||||||||||||||||||||||||||
Other non-interest expense | Other non-interest expense | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||
Advertising | Advertising | 221 | 347 | (126) | (36.3) | % | Advertising | 221 | 221 | — | — | % | ||||||||||||||||||||||||||||||||||
Other expense | Other expense | 2,250 | 1,425 | 825 | 57.9 | % | Other expense | 1,841 | 2,250 | (409) | (18.2) | % | ||||||||||||||||||||||||||||||||||
Total other non-interest expense | Total other non-interest expense | 2,471 | 1,772 | 699 | 39.4 | % | Total other non-interest expense | 2,062 | 2,471 | (409) | (16.6) | % | ||||||||||||||||||||||||||||||||||
Total non-interest expense | Total non-interest expense | $ | 18,906 | $ | 19,375 | $ | (469) | (2.4) | % | Total non-interest expense | $ | 18,678 | $ | 18,906 | $ | (228) | (1.2) | % | ||||||||||||||||||||||||||||
NM - Not Meaningful | NM - Not Meaningful |
Six months ended | Amount Change | Percent Change | Nine months ended | Amount Change | Percent Change | |||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | June 30, 2021 | (dollars in thousands) | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
Salaries and related benefits | Salaries and related benefits | $ | 21,889 | $ | 18,096 | $ | 3,793 | 21.0 | % | Salaries and related benefits | $ | 32,446 | $ | 31,223 | $ | 1,223 | 3.9 | % | ||||||||||
Occupancy and equipment | Occupancy and equipment | 3,803 | 3,502 | 301 | 8.6 | % | Occupancy and equipment | 5,739 | 5,373 | 366 | 6.8 | % | ||||||||||||||||
Data processing | Data processing | 2,476 | 1,639 | 837 | 51.1 | % | Data processing | 3,569 | 3,252 | 317 | 9.7 | % | ||||||||||||||||
Professional services | Professional services | 1,578 | 1,849 | (271) | (14.7) | % | Professional services | 2,314 | 4,321 | (2,007) | (46.4) | % | ||||||||||||||||
Information technology | Information technology | 946 | 609 | 337 | 55.3 | % | Information technology | 1,519 | 1,105 | 414 | 37.5 | % | ||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 845 | 848 | (3) | (0.4) | % | Depreciation and amortization | 1,259 | 1,279 | (20) | (1.6) | % | ||||||||||||||||
Amortization of core deposit intangible | Amortization of core deposit intangible | 754 | 408 | 346 | 84.8 | % | Amortization of core deposit intangible | 1,124 | 742 | 382 | 51.5 | % | ||||||||||||||||
Federal Deposit Insurance Corporation insurance | Federal Deposit Insurance Corporation insurance | 886 | 597 | 289 | 48.4 | % | ||||||||||||||||||||||
Directors' expense | Directors' expense | 605 | 405 | 200 | 49.4 | % | Directors' expense | 838 | 660 | 178 | 27.0 | % | ||||||||||||||||
Federal Deposit Insurance Corporation insurance | 586 | 361 | 225 | 62.3 | % | |||||||||||||||||||||||
Charitable contributions | Charitable contributions | 556 | 493 | 63 | 12.8 | % | Charitable contributions | 605 | 497 | 108 | 21.7 | % | ||||||||||||||||
Other real estate owned | Other real estate owned | 355 | — | 355 | NM | |||||||||||||||||||||||
Other non-interest expense | Other non-interest expense | Other non-interest expense | ||||||||||||||||||||||||||
Advertising | Advertising | 568 | 414 | 154 | 37.2 | % | Advertising | 789 | 603 | 186 | 30.8 | % | ||||||||||||||||
Other expense | Other expense | 3,675 | 2,344 | 1,331 | 56.8 | % | Other expense | 5,516 | 4,002 | 1,514 | 37.8 | % | ||||||||||||||||
Total other non-interest expense | Total other non-interest expense | 4,243 | 2,758 | 1,485 | 53.8 | % | Total other non-interest expense | 6,305 | 4,605 | 1,700 | 36.9 | % | ||||||||||||||||
Total non-interest expense | Total non-interest expense | $ | 38,281 | $ | 30,968 | $ | 7,313 | 23.6 | % | Total non-interest expense | $ | 56,959 | $ | 53,654 | $ | 3,305 | 6.2 | % | ||||||||||
NM - Not Meaningful | NM - Not Meaningful |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | (dollars in thousands) | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | ||||||||||||||||||||||||||||||||||||||
Within California: | Within California: | Within California: | ||||||||||||||||||||||||||||||||||||||||||||||||||
General obligation bonds | $ | 25,997 | $ | 22,042 | 13.6 | % | $ | 25,036 | $ | 25,020 | 14.2 | % | General obligation bonds | $ | 25,831 | $ | 20,560 | 14.3 | % | $ | 25,036 | $ | 25,020 | 14.2 | % | |||||||||||||||||||||||||||
Revenue bonds | 5,055 | 4,496 | 2.6 | 5,249 | 5,185 | 3.0 | Revenue bonds | 3,722 | 2,961 | 2.1 | 5,249 | 5,185 | 3.0 | |||||||||||||||||||||||||||||||||||||||
Tax allocation bonds | 501 | 501 | 0.3 | 503 | 510 | 0.3 | Tax allocation bonds | — | — | — | 503 | 510 | 0.3 | |||||||||||||||||||||||||||||||||||||||
Total within California | Total within California | 31,553 | 27,039 | 16.5 | 30,788 | 30,715 | 17.5 | Total within California | 29,553 | 23,521 | 16.4 | 30,788 | 30,715 | 17.5 | ||||||||||||||||||||||||||||||||||||||
Outside California: | Outside California: | Outside California: | ||||||||||||||||||||||||||||||||||||||||||||||||||
General obligation bonds | 131,479 | 118,110 | 68.8 | 117,278 | 121,303 | 66.5 | General obligation bonds | 122,244 | 103,209 | 68.0 | 117,278 | 121,303 | 66.5 | |||||||||||||||||||||||||||||||||||||||
Revenue bonds | 28,035 | 23,659 | 14.7 | 28,146 | 29,272 | 16.0 | Revenue bonds | 27,978 | 22,614 | 15.6 | 28,146 | 29,272 | 16.0 | |||||||||||||||||||||||||||||||||||||||
Total outside California | Total outside California | 159,514 | 141,769 | 83.5 | 145,424 | 150,575 | 82.5 | Total outside California | 150,222 | 125,823 | 83.6 | 145,424 | 150,575 | 82.5 | ||||||||||||||||||||||||||||||||||||||
Total obligations of state and political subdivisions | Total obligations of state and political subdivisions | $ | 191,067 | $ | 168,808 | 100.0 | % | $ | 176,212 | $ | 181,290 | 100.0 | % | Total obligations of state and political subdivisions | $ | 179,775 | $ | 149,344 | 100.0 | % | $ | 176,212 | $ | 181,290 | 100.0 | % | ||||||||||||||||||||||||||
Percent of investment portfolio | Percent of investment portfolio | 10.2 | % | 9.8 | % | 11.7 | % | 12.0 | % | Percent of investment portfolio | 9.6 | % | 9.1 | % | 11.7 | % | 12.0 | % |
Capital Ratios for Bancorp (dollars in thousands) | Capital Ratios for Bancorp (dollars in thousands) | Actual Ratio | Adequately Capitalized Threshold | Ratio to be a Well Capitalized Bank Holding Company | Capital Ratios for Bancorp (dollars in thousands) | Actual Ratio | Adequately Capitalized Threshold | Ratio to be a Well Capitalized Bank Holding Company | ||||||||||||||||||||||||||||||||
June 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | Total Capital (to risk-weighted assets) | $ | 412,325 | 14.67 | % | $ | 295,112 | ≥ 10.50 | % | $ | 281,059 | ≥ 10.00 | % | Total Capital (to risk-weighted assets) | $ | 422,110 | 15.06 | % | $ | 294,306 | ≥ 10.50 | % | $ | 280,292 | ≥ 10.00 | % | ||||||||||||||
Tier 1 Capital (to risk-weighted assets) | Tier 1 Capital (to risk-weighted assets) | $ | 389,091 | 13.84 | % | $ | 238,900 | ≥ 8.50 | % | $ | 224,847 | ≥ 8.00 | % | Tier 1 Capital (to risk-weighted assets) | $ | 398,412 | 14.21 | % | $ | 238,248 | ≥ 8.50 | % | $ | 224,233 | ≥ 8.00 | % | ||||||||||||||
Tier 1 Capital (to average assets) | Tier 1 Capital (to average assets) | $ | 389,091 | 9.07 | % | $ | 171,628 | ≥ 4.00 | % | $ | 214,535 | ≥ 5.00 | % | Tier 1 Capital (to average assets) | $ | 398,412 | 9.21 | % | $ | 172,967 | ≥ 4.00 | % | $ | 216,209 | ≥ 5.00 | % | ||||||||||||||
Common Equity Tier 1 (to risk-weighted assets) | Common Equity Tier 1 (to risk-weighted assets) | $ | 389,091 | 13.84 | % | $ | 196,741 | ≥ 7.00 | % | $ | 182,689 | ≥ 6.50 | % | Common Equity Tier 1 (to risk-weighted assets) | $ | 398,412 | 14.21 | % | $ | 196,204 | ≥ 7.00 | % | $ | 182,190 | ≥ 6.50 | % | ||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | Total Capital (to risk-weighted assets) | $ | 397,101 | 14.58 | % | ≥ $ | 286,035 | ≥ 10.50 | % | ≥ $ | 272,414 | ≥ 10.00 | % | Total Capital (to risk-weighted assets) | $ | 397,101 | 14.58 | % | ≥ $ | 286,035 | ≥ 10.50 | % | ≥ $ | 272,414 | ≥ 10.00 | % | ||||||||||||||
Tier 1 Capital (to risk-weighted assets) | Tier 1 Capital (to risk-weighted assets) | $ | 373,286 | 13.70 | % | ≥ $ | 231,552 | ≥ 8.50 | % | ≥ $ | 217,931 | ≥ 8.00 | % | Tier 1 Capital (to risk-weighted assets) | $ | 373,286 | 13.70 | % | ≥ $ | 231,552 | ≥ 8.50 | % | ≥ $ | 217,931 | ≥ 8.00 | % | ||||||||||||||
Tier 1 Capital (to average assets) | Tier 1 Capital (to average assets) | $ | 373,286 | 8.85 | % | ≥ $ | 168,750 | ≥ 4.00 | % | ≥ $ | 210,937 | ≥ 5.00 | % | Tier 1 Capital (to average assets) | $ | 373,286 | 8.85 | % | ≥ $ | 168,750 | ≥ 4.00 | % | ≥ $ | 210,937 | ≥ 5.00 | % | ||||||||||||||
Common Equity Tier 1 (to risk-weighted assets) | Common Equity Tier 1 (to risk-weighted assets) | $ | 373,286 | 13.70 | % | ≥ $ | 190,690 | ≥ 7.00 | % | ≥ $ | 177,069 | ≥ 6.50 | % | Common Equity Tier 1 (to risk-weighted assets) | $ | 373,286 | 13.70 | % | ≥ $ | 190,690 | ≥ 7.00 | % | ≥ $ | 177,069 | ≥ 6.50 | % |
Capital Ratios for the Bank (dollars in thousands) | Capital Ratios for the Bank (dollars in thousands) | Actual Ratio | Adequately Capitalized Threshold | Ratio to be Well Capitalized under Prompt Corrective Action Provisions | Capital Ratios for the Bank (dollars in thousands) | Actual Ratio | Adequately Capitalized Threshold | Ratio to be Well Capitalized under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||
June 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | Total Capital (to risk-weighted assets) | $ | 399,228 | 14.21 | % | $ | 295,078 | ≥ 10.50 | % | $ | 281,027 | ≥ 10.00 | % | Total Capital (to risk-weighted assets) | $ | 413,236 | 14.74 | % | $ | 294,282 | ≥ 10.50 | % | $ | 280,269 | ≥ 10.00 | % | ||||||||||||||
Tier 1 Capital (to risk-weighted assets) | Tier 1 Capital (to risk-weighted assets) | $ | 375,994 | 13.38 | % | $ | 238,873 | ≥ 8.50 | % | $ | 224,822 | ≥ 8.00 | % | Tier 1 Capital (to risk-weighted assets) | $ | 389,538 | 13.90 | % | $ | 238,228 | ≥ 8.50 | % | $ | 224,215 | ≥ 8.00 | % | ||||||||||||||
Tier 1 Capital (to average assets) | Tier 1 Capital (to average assets) | $ | 375,994 | 8.76 | % | $ | 171,618 | ≥ 4.00 | % | $ | 214,523 | ≥ 5.00 | % | Tier 1 Capital (to average assets) | $ | 389,538 | 9.01 | % | $ | 172,957 | ≥ 4.00 | % | $ | 216,197 | ≥ 5.00 | % | ||||||||||||||
Common Equity Tier 1 (to risk-weighted assets) | Common Equity Tier 1 (to risk-weighted assets) | $ | 375,994 | 13.38 | % | $ | 196,719 | ≥ 7.00 | % | $ | 182,667 | ≥ 6.50 | % | Common Equity Tier 1 (to risk-weighted assets) | $ | 389,538 | 13.90 | % | $ | 196,188 | ≥ 7.00 | % | $ | 182,175 | ≥ 6.50 | % | ||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | Total Capital (to risk-weighted assets) | $ | 390,924 | 14.35 | % | ≥ $ | 286,009 | ≥ 10.50 | % | ≥ $ | 272,390 | ≥ 10.00 | % | Total Capital (to risk-weighted assets) | $ | 390,924 | 14.35 | % | ≥ $ | 286,009 | ≥ 10.50 | % | ≥ $ | 272,390 | ≥ 10.00 | % | ||||||||||||||
Tier 1 Capital (to risk-weighted assets) | Tier 1 Capital (to risk-weighted assets) | $ | 367,109 | 13.48 | % | ≥ $ | 231,531 | ≥ 8.50 | % | ≥ $ | 217,912 | ≥ 8.00 | % | Tier 1 Capital (to risk-weighted assets) | $ | 367,109 | 13.48 | % | ≥ $ | 231,531 | ≥ 8.50 | % | ≥ $ | 217,912 | ≥ 8.00 | % | ||||||||||||||
Tier 1 Capital (to average assets) | Tier 1 Capital (to average assets) | $ | 367,109 | 8.70 | % | ≥ $ | 168,724 | ≥ 4.00 | % | ≥ $ | 210,905 | ≥ 5.00 | % | Tier 1 Capital (to average assets) | $ | 367,109 | 8.70 | % | ≥ $ | 168,724 | ≥ 4.00 | % | ≥ $ | 210,905 | ≥ 5.00 | % | ||||||||||||||
Common Equity Tier 1 (to risk-weighted assets) | Common Equity Tier 1 (to risk-weighted assets) | $ | 367,109 | 13.48 | % | ≥ $ | 190,673 | ≥ 7.00 | % | ≥ $ | 177,053 | ≥ 6.50 | % | Common Equity Tier 1 (to risk-weighted assets) | $ | 367,109 | 13.48 | % | ≥ $ | 190,673 | ≥ 7.00 | % | ≥ $ | 177,053 | ≥ 6.50 | % |
Immediate and Parallel Shift in Interest Rates (in basis points) | Immediate and Parallel Shift in Interest Rates (in basis points) | Estimated Change in Net Interest Income in Year 1, as percent of Net Interest Income | Estimated Change in Net Interest Income in Year 2, as percent of Net Interest Income | Immediate and Parallel Shift in Interest Rates (in basis points) | Estimated Change in Net Interest Income in Year 1, as percent of Net Interest Income | Estimated Change in Net Interest Income in Year 2, as percent of Net Interest Income | ||||||||||
up 400 | up 400 | 6.9 | % | 16.3 | % | up 400 | 0.6 | % | 9.0 | % | ||||||
up 300 | up 300 | 2.5 | % | 9.8 | % | up 300 | 0.6 | % | 7.2 | % | ||||||
up 200 | up 200 | 1.8 | % | 6.8 | % | up 200 | 0.6 | % | 5.2 | % | ||||||
up 100 | up 100 | 1.2 | % | 4.0 | % | up 100 | 0.6 | % | 3.2 | % | ||||||
down 100 | down 100 | (4.6) | % | (8.1) | % | down 100 | (4.1) | % | (5.7) | % | ||||||
down 200 | down 200 | (8.5) | % | (11.6) | % |
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Herewith | ||||||||||||||
2.01 | 8-K | 001-33572 | 2.1 | April 19, 2021 | ||||||||||||||||
3.01 | S-4 | 333-257025 | 3.01 | June 11, 2021 | ||||||||||||||||
3.02 | S-4 | 333-257025 | 3.02 | June 11, 2021 | ||||||||||||||||
4.01 | 8-A12B | 001-33572 | 4.1 | July 7, 2017 | ||||||||||||||||
4.02 | 10-K | 001-33572 | 4.02 | March 13, 2020 | ||||||||||||||||
10.01 | S-8 | 333-218274 | 4.1 | May 26, 2017 | ||||||||||||||||
10.02 | S-8 | 333-221219 | 4.1 | October 30, 2017 | ||||||||||||||||
10.03 | S-8 | 333-227840 | 4.1 | October 15, 2018 | ||||||||||||||||
10.04 | S-8 | 333-239555 | 4.1 | June 30, 2020 | ||||||||||||||||
10.05 | 10-Q | 001-33572 | 10.06 | November 7, 2007 | ||||||||||||||||
10.06 | 10-K | 001-33572 | 10.07 | March 15, 2021 | ||||||||||||||||
10.07 | 8-K | 001-33572 | 10.2 | November 4, 2014 | ||||||||||||||||
10.08 | 8-K | 001-33572 | 10.3 | November 4, 2014 | ||||||||||||||||
10.09 | 8-K | 001-33572 | 10.1 | October 31, 2007 | ||||||||||||||||
10.10 | 10-Q | 001-33572 | 10.12 | November 6, 2020 | ||||||||||||||||
10.11 | 10-K | 001-33572 | 10.13 | March 15, 2021 | ||||||||||||||||
10.12 | 8-K | 001-33572 | 10.1 | September 24, 2021 | ||||||||||||||||
31.01 | Filed | |||||||||||||||||||
31.02 | Filed | |||||||||||||||||||
32.01 | Filed | |||||||||||||||||||
101.INS | Inline XBRL Instance Document | Filed | ||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed |
Bank of Marin Bancorp | |||||||||||
(registrant) | |||||||||||
/s/ Timothy D. Myers | |||||||||||
Date | Timothy D. Myers | ||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
/s/ Tani Girton | |||||||||||
Date | Tani Girton | ||||||||||
Executive Vice President & | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
/s/ David A. Merck | |||||||||||
Date | David A. Merck | ||||||||||
First Vice President & Controller | |||||||||||
(Principal Accounting Officer) |