Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33912 | |
Entity Registrant Name | Enterprise Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-3308902 | |
Entity Address, Address Line One | 222 Merrimack Street, | |
Entity Address, City or Town | Lowell, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01852 | |
City Area Code | (978) | |
Local Phone Number | 459-9000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EBTC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,027,185 | |
Entity Central Index Key | 0001018399 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 38,056 | $ 40,636 |
Interest-earning deposits with banks | 606,321 | 213,146 |
Total cash and cash equivalents | 644,377 | 253,782 |
Investments: | ||
Debt securities at fair value (amortized cost of $800,250 and $551,191, respectively) | 817,781 | 582,303 |
Equity securities at fair value | 1,441 | 746 |
Total investment securities at fair value | 819,222 | 583,049 |
Federal Home Loan Bank ("FHLB") stock | 2,164 | 1,905 |
Loans held for sale | 413 | 371 |
Loans: | ||
Total loans | 2,848,110 | 3,073,860 |
Allowance for credit losses | (47,262) | (44,565) |
Net loans | 2,800,848 | 3,029,295 |
Premises and equipment, net | 44,630 | 46,708 |
Lease right-of-use asset | 24,477 | 18,439 |
Accrued interest receivable | 13,785 | 16,079 |
Deferred income taxes, net | 15,720 | 11,290 |
Bank-owned life insurance | 61,881 | 31,363 |
Prepaid income taxes | 3,542 | 2,449 |
Prepaid expenses and other assets | 14,717 | 13,938 |
Goodwill | 5,656 | 5,656 |
Total assets | 4,451,432 | 4,014,324 |
Liabilities | ||
Customer deposits | 3,970,936 | 3,476,268 |
Brokered deposits | 0 | 74,995 |
Total deposits | 3,970,936 | 3,551,263 |
Borrowed funds | 8,600 | 4,774 |
Subordinated debt | 58,949 | 73,744 |
Lease liability | 23,748 | 17,539 |
Accrued expenses and other liabilities | 41,902 | 30,638 |
Accrued interest payable | 757 | 1,940 |
Total liabilities | 4,104,892 | 3,679,898 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,029,601 and 11,937,795 shares issued and outstanding, respectively | 120 | 119 |
Additional paid-in capital | 99,619 | 97,137 |
Retained earnings | 233,137 | 214,977 |
Accumulated other comprehensive income | 13,664 | 22,193 |
Total stockholders' equity | 346,540 | 334,426 |
Total liabilities and stockholders' equity | $ 4,451,432 | $ 4,014,324 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Debt securities, amortized cost | $ 800,250 | $ 551,191 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,029,601 | 11,937,795 |
Common stock, outstanding (in shares) | 12,029,601 | 11,937,795 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and dividend income: | ||||
Loans and loans held for sale | $ 33,420 | $ 33,481 | $ 100,730 | $ 97,472 |
Investment securities | 3,893 | 3,225 | 10,715 | 10,093 |
Other interest-earning assets | 262 | 71 | 471 | 315 |
Total interest and dividend income | 37,575 | 36,777 | 111,916 | 107,880 |
Interest expense: | ||||
Deposits | 862 | 2,231 | 3,295 | 9,856 |
Borrowed funds | 17 | 8 | 43 | 603 |
Subordinated debt | 817 | 1,007 | 2,677 | 1,468 |
Total interest expense | 1,696 | 3,246 | 6,015 | 11,927 |
Net interest income | 35,879 | 33,531 | 105,901 | 95,953 |
Provision for credit losses | 28 | 1,575 | 747 | 10,397 |
Net interest income after provision for credit losses | 35,851 | 31,956 | 105,154 | 85,556 |
Non-interest income: | ||||
Wealth management fees | 1,768 | 1,469 | 5,018 | 4,255 |
Deposit and interchange fees | 1,813 | 1,607 | 5,070 | 4,804 |
Income on bank-owned life insurance, net | 250 | 143 | 518 | 446 |
Net gains on sales of debt securities | 0 | 127 | 128 | 227 |
Net gains on sales of loans | 177 | 329 | 795 | 814 |
Loss on termination of swaps | (1,847) | 0 | (1,847) | 0 |
Other income | 918 | 649 | 2,448 | 1,986 |
Total non-interest income | 3,079 | 4,324 | 12,130 | 12,532 |
Non-interest expense: | ||||
Salaries and employee benefits | 17,224 | 15,031 | 49,377 | 46,267 |
Occupancy and equipment expenses | 2,471 | 2,099 | 7,268 | 6,357 |
Technology and telecommunications expenses | 2,583 | 2,316 | 7,877 | 6,815 |
Advertising and public relations expenses | 435 | 372 | 1,602 | 1,506 |
Audit, legal and other professional fees | 558 | 498 | 1,702 | 1,715 |
Deposit insurance premiums | 593 | 749 | 1,327 | 1,690 |
Supplies and postage expenses | 200 | 202 | 605 | 675 |
Loss on extinguishment of subordinated debt | 0 | 0 | 713 | 0 |
Other operating expenses | 1,705 | 1,502 | 5,138 | 4,752 |
Total non-interest expense | 25,769 | 22,769 | 75,609 | 69,777 |
Income before income taxes | 13,161 | 13,511 | 41,675 | 28,311 |
Provision for income taxes | 3,329 | 3,185 | 10,352 | 6,712 |
Net income | $ 9,832 | $ 10,326 | $ 31,323 | $ 21,599 |
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.87 | $ 2.61 | $ 1.82 |
Diluted earnings per share (in dollars per share) | $ 0.81 | $ 0.87 | $ 2.60 | $ 1.81 |
Basic weighted average common shares outstanding (in shares) | 12,022,610 | 11,916,486 | 11,997,199 | 11,886,811 |
Diluted weighted average common shares outstanding (in shares) | 12,065,100 | 11,927,043 | 12,038,561 | 11,908,716 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,832 | $ 10,326 | $ 31,323 | $ 21,599 |
Other comprehensive (loss) income, net of tax | ||||
Net change in fair value of debt securities | (2,629) | (50) | (10,552) | 13,740 |
Net change in fair value of cash flow hedges | 1,333 | 167 | 2,023 | (2,197) |
Total other comprehensive (loss) income, net of tax | (1,296) | 117 | (8,529) | 11,543 |
Total comprehensive income, net | $ 8,536 | $ 10,443 | $ 22,794 | $ 33,142 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income/(Loss) |
Beginning balance (in shares) at Dec. 31, 2019 | 11,825,331 | ||||||
Balance, beginning at Dec. 31, 2019 | $ 296,641 | $ 118 | $ 94,170 | $ 191,843 | $ 10,510 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 21,599 | 21,599 | |||||
Other comprehensive loss, net | 11,543 | 11,543 | |||||
Common stock dividend declared | (6,236) | (6,236) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 38,762 | ||||||
Common stock issued under dividend reinvestment plan | 914 | 914 | |||||
Common stock issued, other (in shares) | 3,115 | ||||||
Common stock issued, other | 75 | 75 | |||||
Stock-based compensation, net (in shares) | 65,912 | ||||||
Stock-based compensation, net | 1,447 | $ 1 | 1,446 | ||||
Net settlement for employee taxes on restricted stock and options (in shares) | (7,962) | ||||||
Net settlement for employee taxes on restricted stock and options | (224) | (224) | |||||
Stock options exercised, net (in shares) | 1,040 | ||||||
Stock options exercised, net | 21 | 21 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 11,926,198 | ||||||
Balance, ending at Sep. 30, 2020 | 325,780 | $ 119 | 96,402 | 207,206 | 22,053 | ||
Beginning balance (in shares) at Jun. 30, 2020 | 11,911,488 | ||||||
Balance, beginning at Jun. 30, 2020 | 316,676 | $ 119 | 95,656 | 198,965 | 21,936 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 10,326 | 10,326 | |||||
Other comprehensive loss, net | 117 | 117 | |||||
Common stock dividend declared | (2,085) | (2,085) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 13,931 | ||||||
Common stock issued under dividend reinvestment plan | 306 | 306 | |||||
Common stock issued, other (in shares) | 889 | ||||||
Common stock issued, other | 20 | 20 | |||||
Stock-based compensation, net (in shares) | (110) | ||||||
Stock-based compensation, net | 420 | 420 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 11,926,198 | ||||||
Balance, ending at Sep. 30, 2020 | $ 325,780 | $ 119 | 96,402 | 207,206 | 22,053 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 11,937,795 | 11,937,795 | |||||
Balance, beginning at Dec. 31, 2020 | $ 334,426 | $ (6,510) | $ 119 | 97,137 | 214,977 | $ (6,510) | 22,193 |
Increase (Decrease) in Stockholders' Equity | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||
Net income | $ 31,323 | 31,323 | |||||
Other comprehensive loss, net | (8,529) | (8,529) | |||||
Common stock dividend declared | (6,653) | (6,653) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 28,499 | ||||||
Common stock issued under dividend reinvestment plan | 938 | 938 | |||||
Common stock issued, other (in shares) | 1,322 | ||||||
Common stock issued, other | 42 | 42 | |||||
Stock-based compensation, net (in shares) | 63,684 | ||||||
Stock-based compensation, net | 1,657 | $ 1 | 1,656 | ||||
Net settlement for employee taxes on restricted stock and options (in shares) | (7,803) | ||||||
Net settlement for employee taxes on restricted stock and options | (260) | (260) | |||||
Stock options exercised, net (in shares) | 6,104 | ||||||
Stock options exercised, net | $ 106 | 106 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 12,029,601 | 12,029,601 | |||||
Balance, ending at Sep. 30, 2021 | $ 346,540 | $ 120 | 99,619 | 233,137 | 13,664 | ||
Beginning balance (in shares) at Jun. 30, 2021 | 12,014,933 | ||||||
Balance, beginning at Jun. 30, 2021 | 339,317 | $ 120 | 98,708 | 225,529 | 14,960 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 9,832 | 9,832 | |||||
Other comprehensive loss, net | (1,296) | (1,296) | |||||
Common stock dividend declared | (2,224) | (2,224) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 9,192 | ||||||
Common stock issued under dividend reinvestment plan | 310 | 310 | |||||
Common stock issued, other (in shares) | 461 | ||||||
Common stock issued, other | 15 | 15 | |||||
Stock-based compensation, net (in shares) | (56) | ||||||
Stock-based compensation, net | 503 | 503 | |||||
Net settlement for employee taxes on restricted stock and options | (8) | (8) | |||||
Stock options exercised, net (in shares) | 5,071 | ||||||
Stock options exercised, net | $ 91 | 91 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 12,029,601 | 12,029,601 | |||||
Balance, ending at Sep. 30, 2021 | $ 346,540 | $ 120 | $ 99,619 | $ 233,137 | $ 13,664 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in usd per share) | $ 0.185 | $ 0.175 | $ 0.555 | $ 0.525 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||
Net income | $ 9,832 | $ 10,326 | $ 31,323 | $ 21,599 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses | 28 | 1,575 | 747 | 10,397 | |
Depreciation and amortization | 5,894 | 4,946 | |||
Stock-based compensation expense | 559 | 476 | 1,550 | 1,409 | |
Income on bank-owned life insurance, net | (250) | (143) | (518) | (446) | |
Net gains on sales of debt securities | 0 | (127) | (128) | (227) | |
Mortgage loans originated for sale | (28,084) | (40,837) | |||
Proceeds from mortgage loans sold | 28,837 | 36,941 | |||
Net gains on sales of loans | (795) | (814) | |||
Net (gains) losses on equity securities | (6) | 3 | (154) | 135 | |
Loss on termination of swaps | 1,847 | 0 | 1,847 | 0 | |
Changes in: | |||||
Net decrease (increase) in other assets | 1,864 | (9,892) | |||
Net (decrease) increase in other liabilities | (7,563) | 3,533 | |||
Net cash provided by operating activities | 34,820 | 26,744 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of debt securities | 3,059 | 5,907 | |||
Purchase of debt securities | (300,660) | (34,487) | |||
Proceeds from maturities, calls and pay-downs of debt securities | 64,779 | 51,969 | |||
Net purchases of equity securities | (541) | (319) | |||
Net (purchases) sales of FHLB capital stock | (259) | 2,579 | |||
Net decrease (increase) in loans | 219,277 | (585,532) | |||
Additions to premises and equipment, net | (2,665) | (5,676) | |||
Purchase of bank-owned life insurance | (30,000) | 0 | |||
Net cash used in investing activities | (47,010) | (565,559) | |||
Cash flows from financing activities: | |||||
Net increase in deposits | 419,673 | 823,330 | |||
Net increase (decrease) in borrowed funds | 3,826 | (94,494) | |||
Repayment of subordinated debt | (15,600) | 0 | |||
Loss on extinguishment of subordinated debt | 713 | 0 | |||
Proceeds from issuance of subordinated debt | 0 | 60,000 | |||
Cash dividends paid, net of dividend reinvestment plan | (5,715) | (5,323) | |||
Proceeds from issuance of common stock | 42 | 75 | |||
Net settlement for employee taxes on restricted stock and options | (260) | (224) | |||
Net proceeds from stock option exercises | 106 | 21 | |||
Net cash provided by financing activities | 402,785 | 783,385 | |||
Net increase in cash and cash equivalents | 390,595 | 244,570 | |||
Cash and cash equivalents at beginning of period | 253,782 | 63,794 | $ 63,794 | ||
Cash and cash equivalents at end of period | $ 644,377 | $ 308,364 | $ 644,377 | $ 308,364 | $ 253,782 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Organization of the Company and Basis of Presentation The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2020 audited consolidated financial statements and notes thereto contained in the 2020 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our") as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2021 (the "2020 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2020 Annual Report on Form 10-K, other than to elect options for the temporary deferral of certain accounting guidance as allowed under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act as discussed under Item (c), " Recent Accounting Pronouncements ," below in this Note 1. The accompanying unaudited consolidated interim financial statements of Enterprise Bancorp, Inc., a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting investment activities that the Bank itself would be allowed to conduct under applicable laws. In April 2021, the Bank formed a Massachusetts limited liability company, with the Bank as sole member, in order to hold a commercial property taken by deed-in-lieu of foreclosure. The accompanying unaudited consolidated interim financial statements, and notes thereto, in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 (this "Form 10-Q"), have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the SEC instructions for Quarterly Reports on Form 10-Q. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments, consisting of normal recurring accruals and elimination of intercompany balances, for a fair presentation. Certain previous years' amounts in the unaudited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. (b) Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2020 Annual Report on Form 10-K and updated in this Form 10-Q for the adoption of the current expected credit loss ("CECL") methodology, the most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for credit losses for loans, unfunded commitments, and available-for-sale securities, and the impairment review of goodwill. See Item (c), “Recent Accounting Pronouncements,” below in this Note 1. (c) Recent Accounting Pronouncements In August 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU 2021-06"), Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946)... This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The rules reduce the required reporting periods to align them with the relevant financial statement periods required by SEC rules and requires certain statistical disclosures for annual periods, and interim disclosures if a material change in the information, or trend, has occurred. The amendments in this update are effective upon addition to the FASB Codification and apply to fiscal years ending on or after December 15, 2021. However, voluntary early compliance is permitted upon the effective date, provided that the rules are applied in their entirety. The amended disclosures will not have a material impact on the consolidated financial statements. Effective January 1, 2021, the Company adopted the FASB ASU") No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU No. 2016-13"), including the CECL methodology for estimating allowances for credit losses ("ACL"). The CECL methodology requires early recognition of credit losses using a lifetime credit loss measurement approach that also requires the consideration of reasonable and supportable forecasts in the estimate. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost. It applies to the loan portfolio, off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments, which are not unconditionally cancellable. In addition, this standard made changes to the accounting for available-for-sale debt securities, including the requirement for credit losses be presented as an allowance rather than as a write-down. See the following footnotes for more information on the Company's adoption of CECL: Note 2, "Investment Securities," Note 3, "Loans," and Note 4, "Allowance for Credit Losses for Loans." In February 2019, the federal bank regulatory agencies issued a final rule (the "2019 CECL Rule") that revised certain capital regulations to account for changes to credit loss accounting under GAAP. The 2019 CECL Rule included a transition option that allows banking organizations to phase in, over a three-year period, the day-one adverse effects of adopting the new accounting standard related to the measurement of current expected credit losses on their regulatory capital ratios (three-year transition option). Upon the adoption of CECL on January 1, 2021, the Company has not elected to delay the impact of CECL on regulatory capital. (d) Subsequent Events The Company has evaluated subsequent events and transactions from September 30, 2021 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined there were no material subsequent events requiring recognition or disclosure. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt Securities All of the Company's debt securities were classified as available-for-sale and carried at fair value as of the dates specified in the tables below. The amortized cost and fair values of debt securities at the dates specified are summarized as follows: September 30, 2021 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Federal agency obligations (1) $ 33,914 $ — $ 237 $ 33,677 Residential federal agency MBS (1) 362,929 3,646 4,867 361,708 Commercial federal agency MBS (1) 101,744 5,314 — 107,058 Taxable municipal securities 199,781 6,998 418 206,361 Tax-exempt municipal securities 87,328 6,350 — 93,678 Corporate bonds 8,554 575 — 9,129 Subordinated corporate bonds 6,000 170 — 6,170 Total debt securities, at fair value $ 800,250 $ 23,053 $ 5,522 $ 817,781 December 31, 2020 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Residential federal agency MBS (1) $ 209,923 $ 6,339 $ 287 $ 215,975 Commercial federal agency MBS (1) 102,468 7,726 — 110,194 Taxable municipal securities 135,117 9,293 3 144,407 Tax-exempt municipal securities 88,235 7,216 — 95,451 Corporate bonds 10,448 828 — 11,276 Subordinated corporate bonds 5,000 — — 5,000 Total debt securities, at fair value $ 551,191 $ 31,402 $ 290 $ 582,303 __________________________________________ (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as investments guaranteed by Ginnie Mae ("GNMA"), a wholly owned government entity. As of the dates reflected in the tables above, the majority of investments in the residential and commercial federal agency mortgage back securities ("MBS") categories were collateralized mortgage obligations ("CMOs") issued by U.S. government agencies. The remaining MBS investments totaled $24.1 million and $18.7 million at September 30, 2021 and December 31, 2020, respectively. Net unrealized appreciation and depreciation on debt securities available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income (loss). The net unrealized gain or loss in the Company's debt security portfolio fluctuates as market interest rates rise and fall. Due to the fixed rate nature of this portfolio, as market rates fall, the value of the portfolio rises, and as market rates rise, the value of the portfolio declines. The unrealized gains or losses on debt securities will also decline as the securities approach maturity. ACL for Available-for-Sale Securities The Company measures expected credit losses on available-for-sale securities based upon the unrealized gain or loss position of the security. For available-for-sale debt securities in an unrealized loss position, the Company evaluates qualitative criteria to determine any expected loss unless the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of the amortized cost. In the latter two circumstances, the Company recognizes the entire difference between the security’s amortized cost basis and its fair value as a write-down of the investment balance with a charge to earnings. Otherwise, management’s analysis considers various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, and (4) structure of the security. If the Company does not expect to recover the entire amortized cost basis of the security, an allowance for credit losses for available-for-sale securities would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. At September 30, 2021, management performed its quarterly analysis of all securities with unrealized losses and determined that all were attributable to increases in market yields. Management concluded that no ACL for available-for-sale securities was considered necessary as of September 30, 2021. Accrued interest receivable on available-for-sale debt securities, included in the "Accrued Interest Receivable” line item on the Company’s Consolidated Balance Sheets, amounted to $3.2 million and $2.3 million at September 30, 2021 and December 31, 2020, respectively. There was no allowance carried on the accrued interest receivable at either period. The following tables summarize the duration of unrealized losses for debt securities at September 30, 2021 and December 31, 2020: September 30, 2021 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Federal agency obligations $ 26,692 $ 237 $ — $ — $ 26,692 $ 237 5 Residential federal agency MBS 202,960 4,543 13,451 324 216,411 4,867 30 Tax-exempt municipal securities 36,185 418 — — 36,185 418 39 Total temporarily impaired debt securities $ 265,837 $ 5,198 $ 13,451 $ 324 $ 279,288 $ 5,522 74 December 31, 2020 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Residential federal agency MBS $ 51,396 $ 284 $ 2,107 $ 3 $ 53,503 $ 287 10 Taxable municipal securities 1,997 3 — — 1,997 3 4 Total temporarily impaired debt securities $ 53,393 $ 287 $ 2,107 $ 3 $ 55,500 $ 290 14 The contractual maturity distribution at September 30, 2021 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,084 $ 13,246 Due after one, but within five years 141,731 148,754 Due after five, but within ten years 232,279 242,212 Due after ten years 413,156 413,569 Total debt securities $ 800,250 $ 817,781 Scheduled contractual maturities shown above may not reflect the actual maturities of the investments. The actual MBS/CMO cash flows likely will be faster than presented above due to prepayments and amortization. Similarly, included in the table above are callable securities, comprised of municipal securities and corporate bonds, with a fair value of $155.5 million, which can be redeemed by the issuers prior to the maturity presented above. Management considers these factors when evaluating the interest-rate risk in the Company's asset-liability management program. From time to time, the Company may pledge debt securities as collateral for deposit account balances of municipal customers, and for borrowing capacity with the FHLB and the Federal Reserve Bank of Boston ("FRB"). The fair value of debt securities pledged as collateral for these purposes was $794.4 million and $577.3 million at September 30, 2021 and December 31, 2020, respectively. Sales of debt securities for the three and nine months ended September 30, 2021 and September 30, 2020 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Amortized cost of debt securities sold (1) $ — $ 3,153 $ 2,931 $ 5,680 Gross realized gains on sales — 127 128 227 Gross realized losses on sales — — — — Total proceeds from sales of debt securities $ — $ 3,280 $ 3,059 $ 5,907 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. Equity Securities The Company held equity securities with a fair value of $1.4 million at September 30, 2021 and $746 thousand at December 31, 2020. At September 30, 2021, the equity portfolio consisted primarily of investments in common stock of individual entities in the financial services industry and mutual funds held in conjunction with the Company's supplemental executive retirement and deferred compensation plan. Gains and losses on equity securities for the three and nine months ended September 30, 2021 and September 30, 2020 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Net gains (losses) recognized during the period on equity securities $ 6 $ (3) $ 154 $ (135) Less: Net gains (losses) recognized on equity securities sold during the period — — 6 (11) Unrealized gains (losses) recognized during the reporting period on equity securities still held at the end of the period (included in other income) $ 6 $ (3) $ 148 $ (124) |
Loans
Loans | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans | Loans Loan Portfolio Classifications Major classifications of loans at the dates indicated were as follows (1) : (Dollars in thousands) September 30, December 31, Commercial real estate $ 1,556,240 $ 1,476,236 Commercial and industrial 401,718 435,548 Commercial construction 412,332 371,856 SBA paycheck protection program ("PPP") 148,240 443,070 Total commercial loans 2,518,530 2,726,710 Residential mortgages 239,960 252,995 Home equity loans and lines 81,217 85,178 Consumer 8,403 8,977 Total retail loans 329,580 347,150 Total loans 2,848,110 3,073,860 Allowance for credit losses (47,262) (44,565) Net loans $ 2,800,848 $ 3,029,295 __________________________________________ (1) Upon the adoption of CECL, the Company includes deferred fees as part of the portfolio segment balance at amortized cost. The prior period balances have been adjusted to conform to this presentation. Net deferred loan origination fees amounted to $9.5 million, including $5.3 million of deferred PPP fees, at September 30, 2021 and $13.4 million, including $10.0 million of deferred PPP fees, at December 31, 2020. Upon the adoption of CECL, effective as of January 1, 2021, the Company elected to continue to present the accrued interest receivable balance on loans separate from amortized costs, exclude accrued interest from the measurement of the allowance for credit losses for loans and to continue to write-off uncollectible accrued interest receivable by reversing interest income. Accrued interest receivable on loans amounted to $10.6 million and $13.8 million at September 30, 2021 and December 31, 2020, respectively, and was included in the "Accrued interest receivable” line item on the Company’s Consolidated Balance Sheets. Commercial loans originated by other banks in which the Company is a participating institution are carried at the pro-rata share of ownership and amounted to $68.6 million at September 30, 2021 and $77.1 million at December 31, 2020. In each case, the participating bank funds a percentage of the loan commitment and takes on the related pro-rata risk. The rights and obligations of each participating bank are divided proportionately among the participating banks in an amount equal to their share of ownership and with equal priority among all banks. Each participation is governed by individual participation agreements executed by the lead bank and the participant at loan origination. Participating loans with other institutions provide banks the opportunity to retain customer relationships and reduce credit risk exposure among each participating bank, while providing customers with larger credit vehicles than the individual bank might be willing or able to offer independently. See also "Loans serviced for others" below for information related to commercial loans participated out to various other institutions. Paycheck Protection Program The PPP was created by the CARES Act and instituted by the Small Business Administration (“SBA”), with SBA funding of PPP loans beginning in April 2020. Until the funding for the PPP expired on May 31, 2021, the PPP allowed entities to apply for a 1.00% interest-rate loan with payments generally deferred until the date the lender receives the applicable forgiveness amount from the SBA. PPP loans may be partially or fully forgiven by the SBA if the entity meets certain conditions. In addition, PPP loans carry a put-back provision in the event that a PPP loan is fraudulently originated and the Bank is at fault. The maturity term for any principal portion left unforgiven is either 2 or 5 years from the funding date, depending on when the loan was originated. All PPP loans are fully guaranteed by the SBA and are included in total loans outstanding. Management believes the PPP loan portfolio, which has an average loan size of approximately $182 thousand as of September 30, 2021 and was limited to existing bank customers, to be of minimal credit risk. Management expects the majority of outstanding PPP loans will be forgiven by the SBA, with any remaining balance fully guaranteed by the SBA. Management has segmented the PPP loan portfolio as a group of loans with similar risk characteristics in its assessment for credit losses and, as of September 30, 2021, has not recorded an ACL on these loans, but will continue to monitor the PPP loan portfolio. Loans serviced for others At September 30, 2021 and December 31, 2020, the Company was servicing residential mortgage loans owned by investors amounting to $12.0 million and $13.7 million, respectively. Additionally, the Company was servicing commercial loans originated by the Company and participated out to various other institutions amounting to $64.9 million and $65.3 million at September 30, 2021 and December 31, 2020, respectively. Loans serving as collateral Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) September 30, December 31, Commercial real estate $ 156,382 $ 195,936 Residential mortgages 212,412 233,050 Home equity 5,236 5,971 Total loans pledged to FHLB $ 374,030 $ 434,957 |
ACL for Loans
ACL for Loans | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
ACL for Loans | ACL for Loans On January 1, 2021, the Company adopted CECL under the modified retrospective approach. Upon adoption, the Company recorded a reduction to retained earnings of $6.5 million, net of $2.5 million in deferred income taxes. The ACL for loans increased by $6.6 million and the ACL for unfunded commitments (included in other liabilities) increased by $2.4 million. Prior to January 1, 2021, the Company measured the allowance under the incurred loss method. The ACL for loans to total loans ratio was 1.66% at September 30, 2021 and January 1, 2021. There have been no material changes to the Company's underwriting practices or credit risk management system used to estimate loan loss exposure. See Note 4, "Allowance for Loan Losses," to the Company's audited consolidated financial statements contained in the 2020 Annual Report on Form 10-K. ACL for Loans Methodology The CECL methodology requires early recognition of credit losses using an estimated lifetime credit loss measurement that takes into consideration reasonable and supportable forecasts. The ACL for loans is established through a provision for credit losses, a direct charge to earnings. The ACL for loans is a valuation account that is deducted from the amortized cost to present the net amount of the loan portfolio expected to be collected. Loan losses are charged against the ACL when management believes that the collectability of the amortized cost of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the ACL, generally at the time cash is received on a charged-off account. Arriving at an appropriate level of ACL for loans involves a high degree of management judgement. The underlying assumptions, estimates and assessments used to estimate the ACL for loans reflects the Company’s best estimate of model assumptions and forecasted conditions at that time. Changes in such estimates can significantly affect the ACL and the provision for credit losses. It is possible and likely that the Company will experience credit losses that are different from the current estimates. On a quarterly basis, the Company makes an assessment to estimate the ACL necessary to cover expected credit losses for the loan portfolio as of the specified balance sheet dates. The adequacy of the ACL for loans is reviewed and evaluated on a regular basis by an internal management committee, a sub-committee of the Company's Board of Directors (the "Board") and the full Board. While management uses available information to recognize losses on loans, future additions to the ACL for loans may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's ACL for loans. Such agencies may require the Company to recognize additions to the ACL for loans based on judgments different from those of management. In making its assessment on the adequacy of the ACL, management considers several quantitative and qualitative factors from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts, including: the expected duration of the loans, the trends in risk classification of individual loans; individual review of larger and higher risk problem assets; the level of delinquent loans and non-performing loans; impaired and restructured loans; the level of foreclosure activity; net charge-offs; commercial concentrations by industry, property type and real estate location; the growth and composition of the loan portfolio; as well as trends in the general levels of these indicators. In addition, management monitors expansion in the Company's geographic market area, the experience level of lenders and any changes in underwriting criteria, the strength of the local and national economy, including general conditions in the multi-family, commercial real estate and development and construction markets in the Company's local region as well as for changes in current and forecasted economic conditions, such as changes in gross domestic product, the unemployment rate, real estate values, commercial vacancy rates and other relevant factors. Management also performs a qualitative assessment beyond model estimates and applies qualitative adjustments as management deems necessary. The Company uses a systematic methodology to measure the amount of estimated loan losses. The methodology uses a two-tiered approach that applies specific reserves for loans individually evaluated and general reserves for larger groups of non-adversely classified homogeneous loans, segmented by loan type and for adversely classified loans not individually evaluated, segmented by internal risk rating. Loans collectively evaluated Loans that share risk characteristics are evaluated on a pool basis. Management has segmented the loan portfolio for groups of loans with similar risk characteristics by loan type for non-adversely classified loans (loans risk rated "pass") and by internal risk rating for adversely classified loans not individually evaluated. The general loss allocation factors consider the quantitative historic loss experience, qualitative or environmental factors such as those identified above, forecasts over the estimated life of the loan pools, as well as regulatory guidance and industry data. The Company uses a two-year reasonable and supportable forecast, and for periods beyond the forecast period, the Company reverts immediately to historical loss rates. Loans individually evaluated Loans individually evaluated consist primarily of loans which management considers it probable that not all amounts due (principals and interest) will be collected in accordance with the original contractual terms, loans designated as troubled debt restructurings ("TDRs") and to a lesser extent, if applicable, loans that management deems as individually significant or with unique risk characteristics or for some other reason based on management’s judgement. Management considers the individual payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. Management estimates the credit loss by comparing the loan's carrying value against either (i) the present value of the expected future cash flows discounted at the loan's effective interest-rate; (ii) the loan's observable market price; or (iii) the expected realizable fair value of the collateral, in the case of collateral dependent loans. A specific allowance is assigned to the loan for the amount of estimated credit loss. Individually evaluated loans are charged-off, in whole or in part, when management believes that the recorded investment in the loan is uncollectible. ACL for unfunded commitments ASU 2016-13 also applies to off-balance sheet credit exposure for unfunded commitments (commitments to originate loans, additional funding commitments on existing loans, standby letters of credit, financial guarantees and other similar investments) that are not unconditionally cancellable. The ACL for unfunded commitments is classified with "Accrued expenses and other liabilities" on the Company’s Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. Based on the foregoing, management believes that the Company's ACL for loans and for unfunded commitments is adequate as of September 30, 2021. Credit Risk Management As noted above, the credit risk management function focuses on a wide variety of factors and early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors these factors, among others, through ongoing credit reviews by the Company's Credit Department, an external loan review service, reviews by members of senior management as well as reviews by the Board's Loan Committee and the Board. This review includes the assessment of internal credit quality indicators such as, among others, the risk classification of loans, past due and non-accrual loans, individually evaluated and troubled-debt restructured loans, and the level of foreclosure activity. These credit quality indicators are discussed below. Credit quality indicators Risk ratings and adversely classified loans The Company's loan risk rating system classifies loans depending on risk of loss characteristics. The classifications for "pass" risk rated loans range from "substantially risk free" for the highest quality loans and loans that are secured by cash collateral, through a satisfactory range of "minimal," "moderate," "better than average," and "average" risk to "border-line pass." Adversely classified ratings for loans determined to be of weaker credit range from "special mention," for loans that may need additional monitoring, to the more severe adverse classifications of "substandard," "doubtful," and "loss" based on criteria established under banking regulations. Loans which are evaluated to be of weaker credit quality are placed on the "watch credit list" and reviewed on a more frequent basis, with risk ratings adjusted as warranted by management. Loans classified as special mention include loans currently protected by the sound net worth and paying capacity of the guarantor but are potentially weakened due to adverse business circumstances or unfavorable economic conditions. Supporting financial information for the business may be too stale or insufficient to accurately assess borrower ability to support the loan. Borrower cash flow may be impacted by adverse operating trends or an unbalanced financial condition which has not yet jeopardized loan payments, or the trend of payment delinquencies or deposit account overdraft activity may be increasing. Loans classified as substandard include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These loans are inadequately protected by the sound net worth and paying capacity of the borrower; repayment has become increasingly reliant on collateral liquidation or reliance on guaranties; credit weaknesses are well-defined; borrower cash flow is insufficient to meet the required debt service specified in the loan terms and to meet other obligations, such as trade debt and tax payments. Loans classified as doubtful have all the weaknesses inherent in a substandard rated loan with the added characteristic that the weaknesses make collection or full payment from liquidation, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until more exact status may be determined. Loans classified as loss are generally considered uncollectible at present, although long term recovery of part or all of loan proceeds may be possible. These "loss" loans would require a specific loss reserve or charge-off. Adversely classified loans may be accruing or on non-accrual status and may be individually evaluated or restructured, or some combination thereof. Management does not set any minimum delay of payments as a factor in its review but considers the individual payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. An adverse classification will be considered for upgrade based on the borrower's sustained performance over time and their improving financial condition. Consistent with the criteria for returning non-accrual loans to accrual status, the borrower must demonstrate the ability to continue to service the loan in accordance with the original or modified terms and, in the judgment of management, the collectability of the remaining balances, both principal and interest, are reasonably assured. In the case of TDR loans having had a modified interest-rate, that rate must be at, or greater than, a market rate for a similar credit at the time of modification for an upgrade to be considered. Current year information is presented below in accordance with CECL; prior year disclosures are reported under legacy GAAP and are included below in this Note 4 under the heading “Prior Period Disclosures under the Incurred Loss Methodology.” The following tables presents the amortized cost basis of the Company's loan portfolio risk ratings within portfolio classifications, by origination date, or revolving status as of September 30, 2021: Term Loans By Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 225,255 $ 228,203 $ 263,809 $ 116,038 $ 182,495 $ 496,840 $ 470 $ — $ 1,513,110 Special mention — — 903 808 381 7,934 — — 10,026 Substandard — — 2,204 3,168 13,119 14,431 — — 32,922 Doubtful — — — 182 — — — — 182 Total commercial real estate 225,255 228,203 266,916 120,196 195,995 519,205 470 — 1,556,240 Commercial and industrial Pass 36,941 43,086 39,278 22,260 16,711 52,844 172,721 1,231 385,072 Special mention — 664 2,216 1,024 12 1,522 3,990 — 9,428 Substandard — — 16 116 83 4,144 2,804 55 7,218 Total commercial and industrial 36,941 43,750 41,510 23,400 16,806 58,510 179,515 1,286 401,718 Commercial construction Pass 109,091 126,637 81,137 34,872 5,395 27,615 26,327 — 411,074 Special mention — — — — — — — — — Substandard — — — — — 150 — 1,068 1,218 Loss — — — — — — 40 — 40 Total commercial construction 109,091 126,637 81,137 34,872 5,395 27,765 26,367 1,068 412,332 SBA PPP (1) 135,967 12,273 — — — — — — 148,240 Residential mortgages Pass 44,424 60,657 29,671 26,586 15,023 61,401 — — 237,762 Special mention — — — — — 595 — — 595 Substandard — — — — — 1,603 — — 1,603 Total residential mortgages 44,424 60,657 29,671 26,586 15,023 63,599 — — 239,960 Home equity Pass 665 481 368 — — 2,045 77,074 242 80,875 Substandard — — — — — 255 87 — 342 Total home equity 665 481 368 — — 2,300 77,161 242 81,217 Consumer Pass 2,518 1,622 1,788 1,123 707 506 — 126 8,390 Substandard — — — — — 13 — — 13 Total consumer 2,518 1,622 1,788 1,123 707 519 — 126 8,403 Total loans $ 554,861 $ 473,623 $ 421,390 $ 206,177 $ 233,926 $ 671,898 $ 283,513 $ 2,722 $ 2,848,110 __________________________________________ (1) All SBA PPP loans were "pass" rated at September 30, 2021, as these loans are 100% guaranteed by the SBA. The total amortized cost basis of adversely classified loans amounted to $63.6 million, or 2.23% of total loans, at September 30, 2021. Past due and non-accrual loans Loans on which the accrual of interest has been discontinued are designated as non-accrual and the classified portions are credit downgraded to one of the adversely classified categories noted above. Accrual of interest on loans is generally discontinued when a loan becomes contractually past due, with respect to interest or principal, by 90 days, or when reasonable doubt exists as to the full and timely collection of interest or principal. Interest payments received on loans in a non-accrual status are generally applied to principal on the books of the Company. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when payments are brought current and have remained current for a period of 180 days and when, in the judgment of management, the collectability of both principal and interest is reasonably assured. The following table presents an age analysis of past due loans by portfolio classification as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 373 $ 424 $ 1,296 $ 2,093 $ 1,554,147 $ 1,556,240 Commercial and industrial 1,598 166 305 2,069 399,649 401,718 Commercial construction 2,417 — 190 2,607 409,725 412,332 SBA PPP 925 — — 925 147,315 148,240 Residential mortgages 492 272 284 1,048 238,912 239,960 Home equity 125 — 87 212 81,005 81,217 Consumer 2 — — 2 8,401 8,403 Total loans $ 5,932 $ 862 $ 2,162 $ 8,956 $ 2,839,154 $ 2,848,110 _______________________________________ (1) The loan balances in the table above include loans designated as non-accrual despite their payment due status. The following table presents the amortized cost of non-accrual loans by portfolio classification as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 23,529 $ 7,452 $ 16,077 $ 1,167 Commercial and industrial 2,044 1,302 742 429 Commercial construction 1,258 1,218 40 14 SBA PPP — — — — Residential mortgages 662 662 — — Home equity 342 342 — — Consumer — — — — Total loans $ 27,835 $ 10,976 $ 16,859 $ 1,610 At September 30, 2021, all loans past due 90 days or more were carried as non-accrual, in addition to those loans that were less than 90 days past due where reasonable doubt existed as to the full and timely collection of interest or principal that have also been designated as non-accrual, despite their payment due status. Non-accrual loans that were not adversely classified amounted to $144 thousand at September 30, 2021. These balances primarily represented the guaranteed portions of non-performing SBA loans. The ratio of non-accrual loans to total loans amounted to 0.98% at September 30, 2021. At September 30, 2021, additional funding commitments for non-accrual loans were not material. Collateral-dependent loans Loans that have been individually evaluated and repayment is expected substantially from the operations or ultimate sale of the underlying collateral are deemed to be collateral-dependent loans. Collateral-dependent loans are adversely classified loans that may also be TDRs. These loans may be accruing or on non-accrual status. Collateral-dependent loans are carried at the lower of the recorded investment in the loan or the estimated fair value. When the estimated fair value of the underlying collateral, less estimated costs to sell, is not sufficient to cover the outstanding carrying balance on the loan, a specific reserve is assigned for the amount of the estimated credit loss. These estimated credit losses are charged-off, in whole or in part, when management believes that the recorded investment in the loan is uncollectible. Underlying collateral will vary by type of loan, as discussed below. Commercial real estate loans include loans secured by both owner-use and non-owner occupied (investor) real estate. These loans are typically secured by a variety of commercial and industrial property types, including one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, strip shopping centers, or other commercial properties. Commercial and industrial credits may be unsecured loans and lines to financially strong borrowers, loans secured in whole or in part by real estate unrelated to the principal purpose of the loan or secured by inventories, equipment, or receivables. Commercial construction loans include the development of residential housing and condominium projects, the development of commercial and industrial use property, and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by underlying real estate collateral. Residential mortgage loans and home equity loans and lines may be secured by one-to-four family residential properties serving as the borrower's primary residence, or as vacation homes or investment properties. Consumer loans consist primarily of secured or unsecured personal loans, loans under energy efficiency financing programs in conjunction with Massachusetts public utilities, and overdraft protection lines on checking accounts. The carrying value of collateral dependent loans amounted to $36.5 million at September 30, 2021. Total accruing collateral dependent loans amounted to $9.1 million while non-accrual collateral dependent loans amounted to $27.4 million as of September 30, 2021. The following table presents the recorded investment in collateral dependent individually evaluated loans and the related specific allowance by portfolio allocation as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 30,516 $ 28,786 $ 12,709 $ 16,077 $ 1,167 Commercial and industrial 9,168 5,013 4,217 796 270 Commercial construction 2,366 1,258 1,068 190 14 SBA PPP — — — — — Residential mortgages 1,189 1,065 1,065 — — Home equity 509 342 342 — — Consumer — — — — — Total $ 43,748 $ 36,464 $ 19,401 $ 17,063 $ 1,451 At September 30, 2021, additional funding commitments for collateral dependent loans was not material. Troubled debt restructurings Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Company grants the borrower a concession on the terms that would not otherwise be considered. Typically, such concessions may consist of one or a combination of the following: a reduction in interest-rate to a below market rate, taking into account the credit quality of the note; extension of additional credit based on receipt of adequate collateral; or a deferment or reduction of payments (principal or interest) which materially alters the Bank's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination. All loans that are modified are reviewed by the Company to identify if a TDR has occurred. TDR loans are individually reviewed and evaluated, and a specific reserve is assigned for the amount of the estimated credit loss. At September 30, 2021, payment deferrals related to the COVID-19 pandemic were active on 4 "pass" rated loans amounting to $11.8 million, or 0.41% of total loans. Under the terms of the CARES Act and the Consolidated Appropriations Act, 2021 as discussed below, these loans remain on accrual status. Total TDR loans as of September 30, 2021 amounted to $17.6 million. TDR loans on accrual status amounted to $9.2 million and TDR loans included in non-accrual loans amounted to $8.4 million at September 30, 2021. The Company continues to work with customers and enter into loan modifications (which may or may not be TDRs) to the extent deemed to be necessary or appropriate while attempting to achieve the best mutual outcome given the individual financial circumstances and future prospects of the borrower. The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the three months indicated: Three months ended September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Commercial real estate 1 $ 2,690 $ 2,656 Commercial and industrial 1 15 14 Commercial construction — — — SBA PPP — — — Residential mortgages — — — Home equity loans and lines — — — Consumer — — — Total 2 $ 2,705 $ 2,670 At September 30, 2021, additional funding commitments for TDR loans were not material. The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the three months ended September 30, 2021 as indicated: Three months ended September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate — $ — Commercial and industrial 1 14 Commercial construction — — SBA PPP — — Residential mortgages — — Home equity loans and lines — — Consumer — — Total 1 $ 14 The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the nine months indicated: Nine months ended September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Commercial real estate 3 $ 3,591 $ 3,708 Commercial and industrial 1 15 14 Commercial construction — — — SBA PPP — — — Residential mortgages 1 224 224 Home equity — — — Consumer — — — Total 5 $ 3,830 $ 3,946 There were no subsequent charge-offs associated with the new TDRs noted in the table above during the nine months ended September 30, 2021. The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the nine months ended September 30, 2021 as indicated: September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate 1 $ 670 Commercial and industrial 1 14 Commercial construction — — SBA PPP — — Residential mortgages — — Home equity — — Consumer — — Total 2 $ 684 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the nine-month period indicated: Nine months ended September 30, 2021 (Dollars in thousands) Number of Amount Extended maturity date 1 $ 382 Temporary payment reduction and payment re-amortization of remaining principal over extended term 2 894 Temporary interest only payment plan 1 14 Forbearance of post default rights — — Other payment concessions 1 2,656 Total 5 $ 3,946 Amount of allowance for credit losses for loans associated with TDRs listed above $ 14 ACL and provision for credit loss activity For the three and nine months ended September 30, 2021, the total provision for credit losses amounted to $28 thousand and $747 thousand, respectively, and included provisions for credit losses on loans and unfunded commitments. ACL for loans The ACL for loans amounted to $47.3 million at September 30, 2021 and the ACL for loans to total loans ratio was 1.66% at September 30, 2021. Changes in the ACL for loans by portfolio classification for the three months ended September 30, 2021 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2021 $ 34,008 $ 10,800 $ 3,777 $ 843 $ 295 $ 318 $ 50,041 Provision (benefit) for credit losses on loans (1,660) 694 397 (4) (32) (48) (653) Recoveries — 19 — — 57 2 78 Less: Charge-offs — 2,194 — — — 10 2,204 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 Changes in the ACL for loans by portfolio classification for the nine months ended September 30, 2021 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2020 $ 26,755 $ 9,516 $ 6,129 $ 1,530 $ 467 $ 168 $ 44,565 CECL adjustment upon adoption 7,664 1,988 (2,416) (695) (158) 177 6,560 Provision (benefit) for credit losses for loans (285) 156 461 4 (56) (71) 209 Recoveries 39 102 — — 67 5 213 Less: Charge-offs 1,825 2,443 — — — 17 4,285 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 ACL for unfunded commitments The Company’s ACL for unfunded commitments amounted to $3.0 million as of September 30, 2021 and $2.5 million at January 1, 2021. The provision for unfunded commitments amounted to $681 thousand and $538 thousand for the respective three and nine months ended September 30, 2021. Other real estate owned ("OREO") The Company had one OREO property at September 30, 2021 with a carrying value of $2.4 million that was added in April of 2021 and none at December 31, 2020. There were no sales and no subsequent write downs of OREO during the nine months ended September 30, 2021 or 2020. There were no OREO additions during the nine months ended September 30, 2020. At September 30, 2021, the Company had one consumer mortgage loan secured by residential real estate property for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions with carrying amount of $87 thousand. The Company had no consumer mortgage loans in the process of foreclosure at December 31, 2020. Prior Period Disclosures under the Incurred Loss Methodology The prior year disclosures below were prepared under the incurred methodology, before the Company adopted the CECL methodology. See Note 4, "Allowance for Loan Losses," to the Company's audited consolidated financial statements contained in the 2020 Annual Report on Form 10-K for additional information about the incurred loss methodology. The balances of loans as of December 31, 2020 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans Individually Loans Collectively Gross Loans Commercial real estate $ 35,915 $ 1,442,320 $ 1,478,235 Commercial and industrial 8,409 427,251 435,660 Commercial construction 2,999 370,310 373,309 SBA PPP — 453,084 453,084 Residential mortgages 596 252,375 252,971 Home equity 381 84,625 85,006 Consumer 18 8,963 8,981 Total gross loans $ 48,318 $ 3,038,928 $ 3,087,246 Adversely classified loans-Prior Period The following table presents the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the period indicated: December 31, 2020 Adversely Classified (1) Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 40,088 $ 197 $ — $ 1,437,950 $ 1,478,235 Commercial and industrial 7,901 2,293 — 425,466 435,660 Commercial construction 3,501 — — 369,808 373,309 SBA PPP — — — 453,084 453,084 Residential mortgages 474 — — 252,497 252,971 Home equity 381 — — 84,625 85,006 Consumer 41 — — 8,940 8,981 Total gross loans $ 52,386 $ 2,490 $ — $ 3,032,370 $ 3,087,246 __________________________________ (1) Prior to the adoption of CECL, the Company did not include special-mention risk rated loans as adversely classified. Total adversely classified loans amounted to 1.79% of total loans at December 31, 2020. Past due and non-accrual loans-Prior Period The following tables present an age analysis of past due loans by portfolio classification as of the date indicated: Balance at December 31, 2020 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 6,105 $ 499 $ 5,592 $ 12,196 $ 1,466,039 $ 1,478,235 $ 29,680 Commercial and industrial 417 13 607 1,037 434,623 435,660 4,574 Commercial construction 13,466 — 1,351 14,817 358,492 373,309 2,999 SBA PPP — — — — 453,084 453,084 — Residential mortgages 890 — 290 1,180 251,791 252,971 414 Home equity — — 255 255 84,751 85,006 381 Consumer 2 1 — 3 8,978 8,981 2 Total gross loans $ 20,880 $ 513 $ 8,095 $ 29,488 $ 3,057,758 $ 3,087,246 $ 38,050 At December 31, 2020, all loans past due 90 days or more were carried as non-accrual, in addition to those loans that were less than 90 days past due where reasonable doubt existed as to the full and timely collection of interest or principal that have also been designated as non-accrual, despite their payment due status shown in the tables above. Non-accrual loans that were not adversely classified amounted to $137 thousand at December 31, 2020. These balances primarily represented the guaranteed portions of non-performing SBA loans. The majority of the non-accrual loan balances were also carried as impaired loans during the periods noted and are discussed further below. The ratio of non-accrual loans to total loans amounted to 1.24% at December 31, 2020. Impaired Loans-Prior Period The carrying value of impaired loans amounted to $48.3 million at December 31, 2020. Total accruing impaired loans amounted to $10.3 million while non-accrual impaired loans amounted to $38.0 million as of December 31, 2020. The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the date indicated: Balance at December 31, 2020 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 37,184 $ 35,915 $ 14,728 $ 21,187 $ 3,454 Commercial and industrial 10,628 8,4 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases For the Company, material leases consist of operating leases on our facilities, mainly leased branch locations; leases 12 months or less and immaterial equipment leases have been excluded. As of September 30, 2021, the Company had 17 operating real estate leases, with one new branch lease commencing in the quarter. The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to the Company to extend the lease periods and include periodic rent adjustments. While the Company typically exercises its option to extend lease terms, the lease contains provisions that allow the Company, upon notification, to terminate the lease at the end of the lease term, or any option period. Several real estate leases also provide the Company the right of first refusal should the property be offered for sale. Lease expense for the three and nine months ended September 30, 2021 was $414 thousand and $1.1 million, respectively. Lease expense for the three and nine months ended September 30, 2020 was $326 thousand and $974 thousand, respectively. Variable lease costs and short-term lease expenses included in lease expense during these periods were immaterial. The weighted average remaining lease term for operating leases at September 30, 2021 and September 30, 2020 was 28.8 years and 26.8 years, respectively. The weighted average discount rate was 3.61% at September 30, 2021 and 3.80% at September 30, 2020. At September 30, 2021, the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2021 (three remaining months) $ 340 2022 1,377 2023 1,403 2024 1,431 2025 1,437 Thereafter 32,982 Total lease payments 38,970 Less: Imputed interest 15,222 Total lease liability $ 23,748 In addition, the Company currently collects rent through non-cancellable leases for a small portion of the overall square-footage within its Lowell, Massachusetts campus headquarters and at one of its branch locations. These leases are deemed immaterial. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are summarized as follows as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Non-interest checking $ 1,404,353 $ 1,164,908 Interest-bearing checking 713,991 599,630 Savings 294,143 256,347 Money market 1,344,116 1,210,414 CDs $250,000 or less 160,810 176,895 CDs greater than $250,000 53,523 68,074 Total customer deposits 3,970,936 3,476,268 Brokered deposits — 74,995 Total deposits $ 3,970,936 $ 3,551,263 Total customer deposits include reciprocal balances from checking, money market deposits and CDs received from participating banks in nationwide deposit networks due to our customers electing to participate in Company offered programs which allow for enhanced FDIC insurance. Essentially, the equivalent of the customers' original deposited funds comes back to the Company and are carried within the appropriate category under deposits. The Company's balances in these reciprocal products were $538.7 million and $508.4 million at September 30, 2021 and December 31, 2020, respectively. The Company's brokered deposit balance at December 31, 2020 consisted of balances used in conjunction with interest-rate-swaps to hedge against adverse interest-rate movements. See Note 8, "Derivatives and Hedging Activities," of this Form 10-Q, contained below, for additional information on the Company's interest-rate swaps. |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt The Company's borrowed funds amounted to $8.6 million and $4.8 million at September 30, 2021 and December 31, 2020, respectively, in FHLB advances. Borrowed funds at September 30, 2021 and December 31, 2020 are summarized, as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Balance Rate Balance Rate Within 12 months $ 5,585 0.30 % $ 4,316 0.33 % Over 5 years $ 3,015 1.70 % $ 458 — % The Company's borrowings at September 30, 2021 and December 31, 2020 were related to specific lending projects under the FHLB's community development programs. The Company also had outstanding subordinated debt (net of deferred issuance costs) of $58.9 million and $73.7 million at September 30, 2021 and December 31, 2020, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and unknown cash amounts, the value of which are determined by interest rates. In addition, the Company provides certain commercial customers back-to-back swaps, which do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. The tables below present a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of September 30, 2021 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 36,711 $ 825 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 36,711 825 Total back-to-back interest-rate swaps $ 36,711 $ 825 $ 36,711 $ 825 December 31, 2020 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives designated as hedging instruments Interest-rate contracts - pay fixed, receive floating $ — $ — $ 75,000 $ 2,814 Total cash flow hedge interest-rate swaps $ — $ — $ 75,000 $ 2,814 Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 38,027 $ 2,286 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 38,027 2,286 Total back-to-back interest-rate swaps $ 38,027 $ 2,286 $ 38,027 $ 2,286 __________________________________________ (1) Accrued interest balances related to the Company’s interest-rate swaps are not included in the fair values above and are immaterial. The Company had no derivative fair value hedges at either September 30, 2021 or December 31, 2020 and no cash flow hedges at September 30, 2021. Cash flow hedges Interest-rate swap agreements may be entered into as hedges against adverse interest-rate fluctuations on specifically identified assets or liabilities. The Company’s cash flow hedges are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s wholesale funding. In August 2021, three interest rate swaps with notional values totaling $75.0 million were terminated resulting in a $1.8 million loss on termination of swaps, which is reported as a component of non-interest income. The Company terminated these interest-rate swaps and accelerated the reclassification of the loss from other comprehensive income to earnings as a result of hedged forecasted transactions becoming probable not to occur. Back-to-Back swaps The Company has a "Back-to-Back Swap" program whereby the Bank enters into an interest-rate swap with qualified commercial banking customers and simultaneously enters into equal and opposite interest-rate swap with a swap counterparty. The customer interest-rate swap agreement allows commercial banking customers to convert a floating-rate loan payment to a fixed-rate payment. Interest-rate swaps with the counterparty are subject to master netting agreements, while interest-rate swaps with customers are not. As a result of this offsetting relationship, there were no net gains or losses recognized in income on Back-to-Back swaps during the nine months ended September 30, 2021 or September 30, 2020. At September 30, 2021 and December 31, 2020, all the Back-to-Back swaps with the counterparty were in the same liability position, therefore there was no netting reflected in the Company’s Consolidated Balance Sheets. Credit Risk By using derivative financial instruments, the Company exposes itself to counterparty-credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that management believes to be creditworthy. Additionally, counterparty interest-rate swaps contain provisions for collateral to be posted if the derivative exposure exceeds a threshold amount. The Company had one counterparty and it was rated A and A2 by Standard & Poor's and Moody's, respectively, at September 30, 2021. The Company had no credit risk exposure at either September 30, 2021 or December 31, 2020 relating to interest-rate swaps with counterparties. When the Company has credit risk exposure, collateral is received from the counterparty and held by the Company. Collateral held by the Company is restricted and not considered an asset of the Company. Therefore, it is not carried on the Company's Consolidated Balance Sheets. If the Company posts collateral, the cash is restricted, is considered an asset of the Company and is carried on the Company's Consolidated Balance Sheets. The Company posted cash collateral of $1.4 million and $5.3 million at September 30, 2021 and December 31, 2020, respectively. Customer-related credit risk on Back-to-Back swaps is minimized by the cross collateralization of the loan and the interest-rate swap agreement to the customer's underlying collateral. Credit-risk-related Contingent Features The Company's interest-rate swaps with counterparties contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness. As of September 30, 2021, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was $825 thousand. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral at September 30, 2021 as noted above. Other Derivative Related Activity The Company also participates in loans originated by third party banks, where the originating bank utilizes a back-to-back interest-rate swap structure; however, the Company is not a party to the swap agreements. Under the terms of the loan participations, the Company has accepted contingent liabilities that would only be realized if the swaps were terminated early and there were outstanding losses not covered by the underlying borrowers and the borrowers' pledged collateral. If applicable, the Company's swap-loss exposure would be equal to a percentage of the originating bank's swap loss based on the ratio of the Company's loan participation to the underlying loan. At both September 30, 2021 and December 31, 2020, the Company had one participation loan where the originating bank utilizes a back-to-back interest-rate swap structure. At September 30, 2021, management considers the risk of material swap-loss exposure related to this participation loan to be unlikely based on the borrower's financial and collateral strength. Management continues to closely monitor for credit changes resulting from the pandemic. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Capital Raised and Capital Adequacy Requirements As of September 30, 2021, and December 31, 2020, the Company met the definition of "well-capitalized" under the applicable regulations of the Board of Governors of the Federal Reserve System and the Bank qualified as "well-capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The Company's and the Bank's actual capital amounts and ratios are presented as of September 30, 2021 and December 31, 2020 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021 The Company Total Capital to risk-weighted assets ("RWA") $ 423,722 14.16 % $ 239,322 8.00 % N/A N/A Tier 1 Capital to RWA 327,220 10.94 % 179,492 6.00 % N/A N/A Tier 1 Capital to average assets ("AA") or Leverage Ratio 327,220 7.42 % 176,474 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 327,220 10.94 % 134,619 4.50 % N/A N/A The Bank Total Capital to RWA $ 423,585 14.16 % $ 239,323 8.00 % $ 299,153 10.00 % Tier 1 Capital to RWA 386,032 12.90 % 179,492 6.00 % 239,323 8.00 % Tier 1 Capital to AA, Leverage Ratio 386,032 8.75 % 176,474 4.00 % 220,592 5.00 % Common Equity Tier 1 Capital to RWA 386,032 12.90 % 134,619 4.50 % 194,450 6.50 % Actual Minimum Capital (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 The Company Total Capital to RWA $ 415,999 14.62 % $ 227,631 8.00 % N/A N/A Tier 1 Capital to RWA 306,577 10.77 % 170,723 6.00 % N/A N/A Tier 1 Capital to AA, Leverage Ratio 306,577 7.52 % 163,127 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 306,577 10.77 % 128,042 4.50 % N/A N/A The Bank Total Capital to RWA $ 413,862 14.55 % $ 227,631 8.00 % $ 284,538 10.00 % Tier 1 Capital to RWA 378,184 13.29 % 170,723 6.00 % 227,631 8.00 % Tier 1 Capital to AA, Leverage Ratio 378,184 9.27 % 163,127 4.00 % 203,909 5.00 % Common Equity Tier 1 Capital to RWA 378,184 13.29 % 128,042 4.50 % 184,950 6.50 % __________________________________________ (1) Before application of the capital conservation buffer of 2.50% as of September 30, 2021 and December 31, 2020. See discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed under the regulatory prompt corrective action framework. This framework does not apply to the Company. The Company is subject to the Basel III capital ratio requirements which include a "capital conservation buffer" of 2.50% above the regulatory minimum risk-based capital adequacy requirements shown above. The capital conservation buffer requirement, which had a phase in implementation period, was fully implemented on January 1, 2019. If a banking organization dips into its capital conservation buffer it may be restricted in its activities, including its ability to pay dividends and discretionary bonus payments to its executive officers. Both the Company's and the Bank's actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of September 30, 2021. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank with the capital conversation buffer are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital to RWA 8.00 % 2.50 % 10.50 % Tier 1 Capital to RWA 6.00 % 2.50 % 8.50 % Tier 1 Capital to AA, or Leverage Ratio 4.00 % — % 4.00 % Common equity tier 1 capital to RWA 4.50 % 2.50 % 7.00 % Failure to meet minimum capital requirements can initiate or result in certain mandatory and possibly additional discretionary supervisory actions by regulators that, if undertaken, could have a material adverse effect on the Company's consolidated financial statements. Under applicable capital adequacy requirements and the regulatory framework for prompt corrective action applicable to the Bank, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income is defined as all changes to stockholders' equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. See below for the Company's other components of comprehensive income at the respective dates. Pursuant to GAAP, the Company initially excludes these unrealized holding gains and losses from net income; however, they are later reported as reclassifications out of accumulated other comprehensive income into net income when the losses or gains are realized. The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax benefit (expense) allocated to each component of other comprehensive income (loss): Three months ended September 30, 2021 Three months ended September 30, 2020 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax (Expense) Benefit After Tax Amount Change in fair value of debt securities $ (3,401) $ 772 $ (2,629) $ 57 $ (9) $ 48 Less: net security gains reclassified into non-interest income — — — 127 (29) 98 Net change in fair value of debt securities (3,401) 772 (2,629) (70) 20 (50) Change in fair value of cash flow hedges (1,061) 299 (762) 14 (4) 10 Less: net cash flow hedges losses reclassified into income (2,915) 820 (2,095) (218) 61 (157) Net change in fair value of cash flow hedges 1,854 (521) 1,333 232 (65) 167 Total other comprehensive income (loss), net $ (1,547) $ 251 $ (1,296) $ 162 $ (45) $ 117 Nine months ended September 30, 2021 Nine months ended September 30, 2020 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax (Expense) Benefit After Tax Amount Change in fair value of debt securities $ (13,453) $ 3,000 $ (10,453) $ 17,887 $ (3,971) $ 13,916 Less: net security gains reclassified into non-interest income 128 (29) 99 227 (51) 176 Net change in fair value of debt securities (13,581) 3,029 (10,552) 17,660 (3,920) 13,740 Change in fair value of cash flow hedges 378 (106) 272 (3,334) 937 (2,397) Less: net cash flow hedges losses reclassified into income (2,436) 685 (1,751) (278) 78 (200) Net change in fair value of cash flow hedges 2,814 (791) 2,023 (3,056) 859 (2,197) Total other comprehensive (loss) income, net $ (10,767) $ 2,238 $ (8,529) $ 14,604 $ (3,061) $ 11,543 Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended September 30, 2021 Three months ended September 30, 2020 (Dollars in thousands) Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Accumulated other comprehensive income - beginning balance $ 16,293 $ (1,333) $ 14,960 $ 24,300 $ (2,364) $ 21,936 Total other comprehensive income, net (2,629) 1,333 (1,296) (50) 167 117 Accumulated other comprehensive income - ending balance $ 13,664 $ — $ 13,664 $ 24,250 $ (2,197) $ 22,053 Nine months ended September 30, 2021 Nine months ended September 30, 2020 (Dollars in thousands) Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Unrealized gains (losses) on debt securities Unrealized gains (losses) on cash flow hedges Total Accumulated other comprehensive income - beginning balance $ 24,216 $ (2,023) $ 22,193 $ 10,510 $ — $ 10,510 Total other comprehensive (loss) income, net (10,552) 2,023 (8,529) 13,740 (2,197) 11,543 Accumulated other comprehensive income - ending balance $ 13,664 $ — $ 13,664 $ 24,250 $ (2,197) $ 22,053 |
Supplemental Retirement Plans a
Supplemental Retirement Plans and Other Post-Retirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Supplemental Retirement Plans and Other Post-Retirement Benefit Obligations | Supplemental Retirement Plans and Other Post-Retirement Benefit Obligations Supplemental Employee Retirement Plan ("SERP") The Company has salary continuation agreements with two of its current executive officers and one former executive officer. These salary continuation agreements provide for predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each individual reaches a defined "benefit age." The individuals covered under the SERP have reached the defined benefit age and are receiving payments under the SERP. Additionally, the Company has not recognized service costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the SERP. The SERP is a non-qualified plan and represents a direct liability of the Company, and as such, the Company has no specific assets set aside to settle the benefit obligation. The aggregate amount accrued, or the "accumulated benefit obligation," is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company's benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income. Benefits paid under the SERP amounted to $69 thousand and $207 thousand for both the three and nine months ended September 30, 2021 and September 30, 2020, respectively. Total expenses for the SERP were $14 thousand and $45 thousand for the three and nine months ended September 30, 2021, respectively, compared to $20 thousand and $60 thousand for the three and nine months ended September 30, 2020, respectively. The Company anticipates accruing an additional $15 thousand related to the SERP during the remainder of 2021. Supplemental Life Insurance The Company has provided supplemental life insurance through split-dollar life insurance arrangements for certain executive and senior officers on whom the Bank owns bank-owned life insurance. These arrangements provide a death benefit to the officer's designated beneficiaries that extend to post-retirement periods for some of the supplemental life insurance plans. The Company has recognized a liability for these future post-retirement benefits. These non-qualified plans represent a direct liability of the Company and, as such, the Company has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated post-retirement benefit obligation," which is the present value of the post-retirement benefits associated with this arrangement. Total net periodic post-retirement benefit cost for supplemental life insurance plans, which consisted mainly of interest costs, was $15 thousand and $47 thousand for the three and nine months ended September 30, 2021, respectively, compared to $23 thousand and $69 thousand for the three and nine months ended September 30, 2020, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company currently has one active stock incentive plan: The Enterprise Bancorp, Inc. 2016 Stock Incentive Plan, as amended (the "2016 plan"). At the Company's 2021 Annual Shareholders' Meeting on May 4, 2021, the shareholders voted to approve an amendment to the 2016 Plan increasing the number of shares of common stock available for awards made under the 2016 Plan by 400,000 shares of common stock. As of September 30, 2021, 506,403 shares of common stock remained available for future grants under the 2016 plan. Awards previously granted under an earlier, now expired, plan remain outstanding and may be exercised through 2028. The Company's stock-based compensation expense related to these plans includes stock options and stock awards to officers and other employees included in salary and benefits expense, and stock awards and stock compensation in lieu of cash fees to non-employee directors, both included in other operating expenses. Non-employee director fees are accrued and carried in "Accrued expenses and other liabilities" during the year and distributed to those directors in January of the following year. Total stock-based compensation expense was $559 thousand and $1.6 million for the three and nine months ended September 30, 2021, respectively, compared to $476 thousand and $1.4 million for the three and nine months ended September 30, 2020, respectively. A tax benefit of $18 thousand and $57 thousand associated with employee exercises and vesting of stock compensation was recorded as an adjustment to the Company's income tax expense for the three and nine months ended September 30, 2021, respectively, compared with a tax expense of $6 thousand and $29 thousand for the three and nine months ended September 30, 2020, respectively. These amounts, treated as discrete tax items in the period in which they occur, will vary from year to year as a function of the volume of share-based payments vested or exercised and the then-current market price of the Company's stock in comparison to the compensation cost recognized in the Company's unaudited consolidated financial statements. Stock Option Awards The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the periods indicated: Nine Months Ended September 30, 2021 2020 Options granted 17,580 24,208 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 44 % 37 % Expected dividend yield 3.01 % 3.43 % Expected life in years 6.5 6.5 Risk-free interest-rate 1.28 % 1.02 % Weighted average market price on date of grants $ 32.73 $ 28.22 Per share weighted average fair value $ 11.95 $ 8.41 Fair value as a percentage of market value at grant date 36 % 30 % Options granted during the first nine months of 2021 and 2020 generally vest 50% in year two and 50% in year four, on or about the anniversary date of the awards. The Company utilizes the Black-Scholes option valuation model to determine the per share grant date fair value of stock option grants. The Company recognized stock-based compensation expense related to stock option awards of $48 thousand and $140 thousand for the three and nine months ended September 30, 2021, respectively, compared to $46 thousand and $136 thousand for the three and nine months ended September 30, 2020, respectively. Restricted Stock Awards Restricted stock awards are granted at the market price of the Company's common stock on the date of the grant. Employee restricted stock awards generally vest over four years in equal portions beginning on or about the first anniversary date of the restricted stock award or are performance-based restricted stock awards that vest upon the Company achieving certain predefined performance objectives. Non-employee director restricted stock awards generally vest over two years in equal portions beginning on or about the first anniversary date of the restricted stock award. The table below provides a summary of restricted stock awards granted during the periods indicated: Nine Months Ended September 30, Restricted Stock Awards (number of underlying shares) 2021 2020 Two-year vesting 8,109 8,295 Four-year vesting 24,307 26,015 Performance-based vesting 21,559 25,001 Total restricted stock awards granted 53,975 59,311 Weighted average grant date fair value $ 32.73 $ 28.22 Stock-based compensation expense recognized in association with stock awards, mainly restricted stock awards, amounted to $455 thousand and $1.2 million for the three and nine months ended September 30, 2021, respectively, compared to $374 thousand and $1.1 million for the three and nine months ended September 30, 2020, respectively. Stock in Lieu of Directors' Fees In addition to restricted stock awards discussed above, the non-employee members of the Company's Board may opt to receive newly issued shares of the Company's common stock in lieu of cash compensation for attendance at Board and Board committee meetings. Stock-based compensation expense related to these directors' fees amounted to $56 thousand and $179 thousand for the three and nine months ended September 30, 2021, respectively, compared to $56 thousand and $214 thousand for the three and nine months ended September 30, 2020, respectively, and is included in other operating expenses and in "Accrued expenses and other liabilities." In January 2021, non-employee directors were issued 11,532 shares of the Company's common stock in lieu of 2020 annual cash fees of $286 thousand at a price of $24.77 per share, based on the Company's average quarterly close prices during 2020. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Basic earnings per share are calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding (including participating securities) during the year. The Company's only participating securities are unvested restricted stock awards that contain non-forfeitable rights to dividends. See Note 9, "Stockholders' Equity," under the caption "Shares Authorized and Share Issuance," of this Form 10-Q above for further information regarding the Company's participating securities. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Basic weighted average common shares outstanding 12,022,610 11,916,486 11,997,199 11,886,811 Dilutive shares 42,490 10,557 41,362 21,905 Diluted weighted average common shares outstanding 12,065,100 11,927,043 12,038,561 11,908,716 There were 55,777 and 77,023 stock options outstanding for the three and nine months ended September 30, 2021, respectively, that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for those periods. There were 102,733 and 75,979 stock options outstanding for the three and nine months ended September 30, 2020, respectively, that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for those periods. These stock options, which were not dilutive at those dates, may potentially dilute earnings per share in the future. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB defines the fair value of an asset or liability to be the price which a seller would receive in an orderly transaction between market participants (an exit price) and also establishes a fair value hierarchy segregating fair value measurements using three levels of inputs: (Level 1) quoted market prices in active markets for identical assets or liabilities; (Level 2) significant other observable inputs, including quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs such as interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates which provide a reasonable basis for fair value determination or inputs derived principally from observed market data; and (Level 3) significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability. Unobservable inputs must reflect reasonable assumptions that market participants would use in pricing the asset or liability, which are developed based on the best information available under the circumstances. The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: September 30, 2021 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 817,781 $ — $ 817,781 $ — Equity securities 1,441 1,441 — — FHLB stock 2,164 — 2,164 — Interest-rate swaps 825 — 825 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 15,612 — — 15,612 Other real estate owned 2,400 — — 2,400 Liabilities measured on a recurring basis: Interest-rate swaps $ 825 $ — $ 825 $ — December 31, 2020 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 582,303 $ — $ 582,303 $ — Equity securities 746 746 — — FHLB stock 1,905 — 1,905 — Interest-rate swaps 2,286 — 2,286 — Assets measured on a non-recurring basis: Collateral dependent loans carried at fair value 18,733 — — 18,733 Liabilities measured on a recurring basis: Interest-rate swaps $ 5,100 $ — $ 5,100 $ — All the Company's debt securities are considered available-for-sale and are carried at fair value. The debt security category above includes federal agency obligations, commercial and residential federal agency MBS, municipal securities, corporate bonds, and CDs, as held at those dates. The Company utilizes third-party pricing vendors to provide valuations on its debt securities. Fair values provided by the vendors were generally determined based upon pricing matrices utilizing observable market data inputs for similar or benchmark securities in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association's standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Therefore, management regards the inputs and methods used by third-party pricing vendors to be "Level 2 inputs and methods" as defined in the "fair value hierarchy." The Company periodically obtains a second price from an impartial third party on debt securities to assess the reasonableness of prices provided by the primary independent pricing vendor. The Company's equity portfolio fair value is measured based on quoted market prices for the shares; therefore, these securities are categorized as Level 1 within the fair value hierarchy. The Bank is required to purchase FHLB stock at par value in association with advances from the FHLB. The stock is issued, redeemed, repurchased and transferred by the FHLB only at their fixed par value. This stock is classified as a restricted investment and carried at FHLB par value which management believes approximates fair value; therefore, these securities are categorized as Level 2 measures. For loans individually assessed and deemed to be collateral dependent management has estimated the value and the probable credit loss by comparing the loan's amortized cost against the expected realizable fair value of the collateral (appraised value, or internal analysis, less estimated cost to sell, adjusted as necessary for changes in relevant valuation factors subsequent to the measurement date). Certain inputs used in these assessments, and possible subsequent adjustments, are not always observable, and therefore, collateral dependent loans carried at realizable fair value are categorized as Level 3 within the fair value hierarchy. A specific reserve is assigned to the collateral dependent loan for the amount of management's estimated probable credit loss. The specific reserve assigned to individually evaluated loans that are collateral dependent amounted to $1.5 million at September 30, 2021 compared to $5.8 million at December 31, 2020. Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as OREO. When property is acquired, it is recorded at the estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis. The estimated fair value is based on market appraisals and the Company's internal analysis. Certain inputs used in appraisals or the Company's internal analysis, are not always observable, and therefore, OREO may be categorized as Level 3 within the fair value hierarchy. The fair values for the interest-rate swap assets and liabilities, which is comprised of back-to-back swaps and cash flow hedges, represent a FASB Level 2 measurement and are based on settlement values adjusted for credit risks and observable market interest-rate curves. The settlement values are based on discounted cash flow analysis, a widely accepted valuation technique, reflecting the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest-rate curves. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. The change in value of interest-rate swap assets and liabilities attributable to credit risk was not significant during the reported periods. Refer also to Note 8, "Derivatives and Hedging Activities," this Form 10-Q, contained above, for additional information on the Company's interest-rate swaps. Letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance of a customer to a third party. The fair value of these commitments was estimated to be the fees charged to enter into similar agreements, and accordingly these fair value measures are deemed to be FASB Level 2 measurements. In accordance with the FASB, the estimated fair values of these commitments are carried on the Consolidated Balance Sheets as a liability and amortized to income over the life of the letters of credit, which are typically one year. The estimated fair value of these commitments carried on the Consolidated Balance Sheets at September 30, 2021 and December 31, 2020 were deemed immaterial. Interest-rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead sells the loans on an individual basis. To reduce the net interest-rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest-rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. These commitments are accounted for in accordance with FASB guidance. The fair values of the Company's derivative instruments are deemed to be FASB Level 2 measurements. At September 30, 2021 and December 31, 2020, the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of September 30, 2021 and December 31, 2020: Fair Value (Dollars in thousands) September 30, 2021 December 31, 2020 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) $ 15,612 $ 18,733 Appraisal of collateral Appraisal adjustments (1) 15% - 50% Other real estate owned $ 2,400 $ — Appraisal of collateral Appraisal adjustments (1) 0% - 20% __________________________________________ (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Estimated Fair Values of Assets and Liabilities In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the Consolidated Balance Sheets, the Company is also required to disclose fair value information about financial instruments for which it is practicable to estimate that value, whether or not recognized on the Consolidated Balance Sheets. Financial instruments for which the fair value is disclosed but not recognized on the Consolidated Balance Sheets are summarized below. The table includes the carrying value, estimated fair value and its placement in the fair value hierarchy as follows: September 30, 2021 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 413 $ 403 $ — $ 403 $ — Loans, net 2,800,848 2,845,236 — — 2,845,236 Financial liabilities: CDs 214,333 214,860 — 214,860 — Borrowed funds 8,600 8,210 — 8,210 — Subordinated debt 58,949 58,938 — 58,938 — December 31, 2020 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 371 $ 372 $ — $ 372 $ — Loans, net 3,029,295 3,064,791 — — 3,064,791 Financial liabilities: CDs 244,969 246,498 — 246,498 — Brokered deposits 74,995 76,652 — 76,652 — Borrowed funds 4,774 4,684 — 4,684 — Subordinated debt 73,744 76,769 — 76,769 — Excluded from the tables above are certain financial instruments with carrying values that approximated their fair value at the dates indicated, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest and non-term deposit accounts. The respective carrying values of these instruments would all be classified within Level 1 in the fair value hierarchy. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The supplemental cash flow information for the nine months ended September 30, 2021 and September 30, 2020 is as follows: Nine months ended September 30, (Dollars in thousands) 2021 2020 Supplemental financial data: Cash paid for: interest $ 7,198 $ 11,502 Cash paid for: income taxes 11,074 11,883 Cash paid for: lease liability 912 921 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled 17,260 — Transfer from loans to other real estate owned 2,400 — ROU lease assets: operating leases (1) 7,932 — _________________________________________ (1) Represents net new right of use ("ROU") lease assets added in the periods indicated. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization of the Company and Basis of Presentation - Principles of Consolidation | Organization of the Company and Basis of Presentation The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2020 audited consolidated financial statements and notes thereto contained in the 2020 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our") as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2021 (the "2020 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2020 Annual Report on Form 10-K, other than to elect options for the temporary deferral of certain accounting guidance as allowed under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act as discussed under Item (c), " Recent Accounting Pronouncements ," below in this Note 1. The accompanying unaudited consolidated interim financial statements of Enterprise Bancorp, Inc., a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting investment activities that the Bank itself would be allowed to conduct under applicable laws. In April 2021, the Bank formed a Massachusetts limited liability company, with the Bank as sole member, in order to hold a commercial property taken by deed-in-lieu of foreclosure. |
Organization of the Company and Basis of Presentation - Basis of Accounting | The accompanying unaudited consolidated interim financial statements, and notes thereto, in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 (this "Form 10-Q"), have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the SEC instructions for Quarterly Reports on Form 10-Q. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments, consisting of normal recurring accruals and elimination of intercompany balances, for a fair presentation. Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. |
Organization of the Company and Basis of Presentation - Reclassifications | Certain previous years' amounts in the unaudited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. |
Uses of Estimates | Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2020 Annual Report on Form 10-K and updated in this Form 10-Q for the adoption of the current expected credit loss ("CECL") methodology, the most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for credit losses for loans, unfunded commitments, and available-for-sale securities, and the impairment review of goodwill. See Item (c), “Recent Accounting Pronouncements,” below in this Note 1. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU 2021-06"), Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946)... This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The rules reduce the required reporting periods to align them with the relevant financial statement periods required by SEC rules and requires certain statistical disclosures for annual periods, and interim disclosures if a material change in the information, or trend, has occurred. The amendments in this update are effective upon addition to the FASB Codification and apply to fiscal years ending on or after December 15, 2021. However, voluntary early compliance is permitted upon the effective date, provided that the rules are applied in their entirety. The amended disclosures will not have a material impact on the consolidated financial statements. Effective January 1, 2021, the Company adopted the FASB ASU") No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU No. 2016-13"), including the CECL methodology for estimating allowances for credit losses ("ACL"). The CECL methodology requires early recognition of credit losses using a lifetime credit loss measurement approach that also requires the consideration of reasonable and supportable forecasts in the estimate. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost. It applies to the loan portfolio, off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments, which are not unconditionally cancellable. In addition, this standard made changes to the accounting for available-for-sale debt securities, including the requirement for credit losses be presented as an allowance rather than as a write-down. See the following footnotes for more information on the Company's adoption of CECL: Note 2, "Investment Securities," Note 3, "Loans," and Note 4, "Allowance for Credit Losses for Loans." |
Subsequent events | Subsequent Events The Company has evaluated subsequent events and transactions from September 30, 2021 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined there were no material subsequent events requiring recognition or disclosure. |
Comprehensive Income | Comprehensive income is defined as all changes to stockholders' equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. See below for the Company's other components of comprehensive income at the respective dates. Pursuant to GAAP, the Company initially excludes these unrealized holding gains and losses from net income; however, they are later reported as reclassifications out of accumulated other comprehensive income into net income when the losses or gains are realized. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-Sale Investments Reconciliation | The amortized cost and fair values of debt securities at the dates specified are summarized as follows: September 30, 2021 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Federal agency obligations (1) $ 33,914 $ — $ 237 $ 33,677 Residential federal agency MBS (1) 362,929 3,646 4,867 361,708 Commercial federal agency MBS (1) 101,744 5,314 — 107,058 Taxable municipal securities 199,781 6,998 418 206,361 Tax-exempt municipal securities 87,328 6,350 — 93,678 Corporate bonds 8,554 575 — 9,129 Subordinated corporate bonds 6,000 170 — 6,170 Total debt securities, at fair value $ 800,250 $ 23,053 $ 5,522 $ 817,781 December 31, 2020 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Residential federal agency MBS (1) $ 209,923 $ 6,339 $ 287 $ 215,975 Commercial federal agency MBS (1) 102,468 7,726 — 110,194 Taxable municipal securities 135,117 9,293 3 144,407 Tax-exempt municipal securities 88,235 7,216 — 95,451 Corporate bonds 10,448 828 — 11,276 Subordinated corporate bonds 5,000 — — 5,000 Total debt securities, at fair value $ 551,191 $ 31,402 $ 290 $ 582,303 __________________________________________ (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as investments guaranteed by Ginnie Mae ("GNMA"), a wholly owned government entity. |
Schedule of Unrealized Loss on Debt Securities, Available-for-Sale Investments | The following tables summarize the duration of unrealized losses for debt securities at September 30, 2021 and December 31, 2020: September 30, 2021 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Federal agency obligations $ 26,692 $ 237 $ — $ — $ 26,692 $ 237 5 Residential federal agency MBS 202,960 4,543 13,451 324 216,411 4,867 30 Tax-exempt municipal securities 36,185 418 — — 36,185 418 39 Total temporarily impaired debt securities $ 265,837 $ 5,198 $ 13,451 $ 324 $ 279,288 $ 5,522 74 December 31, 2020 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Residential federal agency MBS $ 51,396 $ 284 $ 2,107 $ 3 $ 53,503 $ 287 10 Taxable municipal securities 1,997 3 — — 1,997 3 4 Total temporarily impaired debt securities $ 53,393 $ 287 $ 2,107 $ 3 $ 55,500 $ 290 14 |
Debt Securities, Available-for-Sale Investments Classified by Contractual Maturity Date | The contractual maturity distribution at September 30, 2021 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,084 $ 13,246 Due after one, but within five years 141,731 148,754 Due after five, but within ten years 232,279 242,212 Due after ten years 413,156 413,569 Total debt securities $ 800,250 $ 817,781 |
Schedule of Realized Gain (Loss) on Sales of Debt Securities, Available-for-Sale Investments | Sales of debt securities for the three and nine months ended September 30, 2021 and September 30, 2020 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Amortized cost of debt securities sold (1) $ — $ 3,153 $ 2,931 $ 5,680 Gross realized gains on sales — 127 128 227 Gross realized losses on sales — — — — Total proceeds from sales of debt securities $ — $ 3,280 $ 3,059 $ 5,907 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. |
Gain (Loss) on Equity Securities | Gains and losses on equity securities for the three and nine months ended September 30, 2021 and September 30, 2020 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Net gains (losses) recognized during the period on equity securities $ 6 $ (3) $ 154 $ (135) Less: Net gains (losses) recognized on equity securities sold during the period — — 6 (11) Unrealized gains (losses) recognized during the reporting period on equity securities still held at the end of the period (included in other income) $ 6 $ (3) $ 148 $ (124) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans at the dates indicated were as follows (1) : (Dollars in thousands) September 30, December 31, Commercial real estate $ 1,556,240 $ 1,476,236 Commercial and industrial 401,718 435,548 Commercial construction 412,332 371,856 SBA paycheck protection program ("PPP") 148,240 443,070 Total commercial loans 2,518,530 2,726,710 Residential mortgages 239,960 252,995 Home equity loans and lines 81,217 85,178 Consumer 8,403 8,977 Total retail loans 329,580 347,150 Total loans 2,848,110 3,073,860 Allowance for credit losses (47,262) (44,565) Net loans $ 2,800,848 $ 3,029,295 __________________________________________ (1) Upon the adoption of CECL, the Company includes deferred fees as part of the portfolio segment balance at amortized cost. The prior period balances have been adjusted to conform to this presentation. |
Schedule of Loans Pledged as Collateral | Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) September 30, December 31, Commercial real estate $ 156,382 $ 195,936 Residential mortgages 212,412 233,050 Home equity 5,236 5,971 Total loans pledged to FHLB $ 374,030 $ 434,957 |
ACL for Loans (Tables)
ACL for Loans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators | The following tables presents the amortized cost basis of the Company's loan portfolio risk ratings within portfolio classifications, by origination date, or revolving status as of September 30, 2021: Term Loans By Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 225,255 $ 228,203 $ 263,809 $ 116,038 $ 182,495 $ 496,840 $ 470 $ — $ 1,513,110 Special mention — — 903 808 381 7,934 — — 10,026 Substandard — — 2,204 3,168 13,119 14,431 — — 32,922 Doubtful — — — 182 — — — — 182 Total commercial real estate 225,255 228,203 266,916 120,196 195,995 519,205 470 — 1,556,240 Commercial and industrial Pass 36,941 43,086 39,278 22,260 16,711 52,844 172,721 1,231 385,072 Special mention — 664 2,216 1,024 12 1,522 3,990 — 9,428 Substandard — — 16 116 83 4,144 2,804 55 7,218 Total commercial and industrial 36,941 43,750 41,510 23,400 16,806 58,510 179,515 1,286 401,718 Commercial construction Pass 109,091 126,637 81,137 34,872 5,395 27,615 26,327 — 411,074 Special mention — — — — — — — — — Substandard — — — — — 150 — 1,068 1,218 Loss — — — — — — 40 — 40 Total commercial construction 109,091 126,637 81,137 34,872 5,395 27,765 26,367 1,068 412,332 SBA PPP (1) 135,967 12,273 — — — — — — 148,240 Residential mortgages Pass 44,424 60,657 29,671 26,586 15,023 61,401 — — 237,762 Special mention — — — — — 595 — — 595 Substandard — — — — — 1,603 — — 1,603 Total residential mortgages 44,424 60,657 29,671 26,586 15,023 63,599 — — 239,960 Home equity Pass 665 481 368 — — 2,045 77,074 242 80,875 Substandard — — — — — 255 87 — 342 Total home equity 665 481 368 — — 2,300 77,161 242 81,217 Consumer Pass 2,518 1,622 1,788 1,123 707 506 — 126 8,390 Substandard — — — — — 13 — — 13 Total consumer 2,518 1,622 1,788 1,123 707 519 — 126 8,403 Total loans $ 554,861 $ 473,623 $ 421,390 $ 206,177 $ 233,926 $ 671,898 $ 283,513 $ 2,722 $ 2,848,110 __________________________________________ (1) All SBA PPP loans were "pass" rated at September 30, 2021, as these loans are 100% guaranteed by the SBA. The following table presents the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the period indicated: December 31, 2020 Adversely Classified (1) Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 40,088 $ 197 $ — $ 1,437,950 $ 1,478,235 Commercial and industrial 7,901 2,293 — 425,466 435,660 Commercial construction 3,501 — — 369,808 373,309 SBA PPP — — — 453,084 453,084 Residential mortgages 474 — — 252,497 252,971 Home equity 381 — — 84,625 85,006 Consumer 41 — — 8,940 8,981 Total gross loans $ 52,386 $ 2,490 $ — $ 3,032,370 $ 3,087,246 __________________________________ |
Past Due Financing Receivables | The following table presents an age analysis of past due loans by portfolio classification as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 373 $ 424 $ 1,296 $ 2,093 $ 1,554,147 $ 1,556,240 Commercial and industrial 1,598 166 305 2,069 399,649 401,718 Commercial construction 2,417 — 190 2,607 409,725 412,332 SBA PPP 925 — — 925 147,315 148,240 Residential mortgages 492 272 284 1,048 238,912 239,960 Home equity 125 — 87 212 81,005 81,217 Consumer 2 — — 2 8,401 8,403 Total loans $ 5,932 $ 862 $ 2,162 $ 8,956 $ 2,839,154 $ 2,848,110 _______________________________________ (1) The loan balances in the table above include loans designated as non-accrual despite their payment due status. The following tables present an age analysis of past due loans by portfolio classification as of the date indicated: Balance at December 31, 2020 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 6,105 $ 499 $ 5,592 $ 12,196 $ 1,466,039 $ 1,478,235 $ 29,680 Commercial and industrial 417 13 607 1,037 434,623 435,660 4,574 Commercial construction 13,466 — 1,351 14,817 358,492 373,309 2,999 SBA PPP — — — — 453,084 453,084 — Residential mortgages 890 — 290 1,180 251,791 252,971 414 Home equity — — 255 255 84,751 85,006 381 Consumer 2 1 — 3 8,978 8,981 2 Total gross loans $ 20,880 $ 513 $ 8,095 $ 29,488 $ 3,057,758 $ 3,087,246 $ 38,050 |
Financing Receivable, Nonaccrual | The following table presents the amortized cost of non-accrual loans by portfolio classification as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 23,529 $ 7,452 $ 16,077 $ 1,167 Commercial and industrial 2,044 1,302 742 429 Commercial construction 1,258 1,218 40 14 SBA PPP — — — — Residential mortgages 662 662 — — Home equity 342 342 — — Consumer — — — — Total loans $ 27,835 $ 10,976 $ 16,859 $ 1,610 |
Impaired Financing Receivables | The following table presents the recorded investment in collateral dependent individually evaluated loans and the related specific allowance by portfolio allocation as of the date indicated: Balance at September 30, 2021 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 30,516 $ 28,786 $ 12,709 $ 16,077 $ 1,167 Commercial and industrial 9,168 5,013 4,217 796 270 Commercial construction 2,366 1,258 1,068 190 14 SBA PPP — — — — — Residential mortgages 1,189 1,065 1,065 — — Home equity 509 342 342 — — Consumer — — — — — Total $ 43,748 $ 36,464 $ 19,401 $ 17,063 $ 1,451 The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the date indicated: Balance at December 31, 2020 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 37,184 $ 35,915 $ 14,728 $ 21,187 $ 3,454 Commercial and industrial 10,628 8,409 4,696 3,713 2,713 Commercial construction 3,668 2,999 2,999 — — SBA PPP — — — — — Residential mortgages 699 596 596 — — Home equity 539 381 381 — — Consumer 18 18 — 18 18 Total $ 52,736 $ 48,318 $ 23,400 $ 24,918 $ 6,185 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the three months indicated: Three months ended September 30, 2020 (Dollars in thousands) Average Recorded Interest Income Commercial real estate $ 16,002 $ 66 Commercial and industrial 9,208 50 Commercial construction 7,180 17 SBA PPP — — Residential mortgages 700 2 Home equity 434 — Consumer 36 — Total $ 33,560 $ 135 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the nine months indicated: Nine months ended September 30, 2020 (Dollars in thousands) Average Recorded Interest Income Commercial real estate $ 15,188 $ 208 Commercial and industrial 8,560 118 Commercial construction 6,537 22 SBA PPP — — Residential mortgages 939 6 Home equity 418 (1) Consumer 39 1 Total $ 31,681 $ 354 |
Troubled Debt Restructurings on Financing Receivables | The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the three months indicated: Three months ended September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Commercial real estate 1 $ 2,690 $ 2,656 Commercial and industrial 1 15 14 Commercial construction — — — SBA PPP — — — Residential mortgages — — — Home equity loans and lines — — — Consumer — — — Total 2 $ 2,705 $ 2,670 The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the three months ended September 30, 2021 as indicated: Three months ended September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate — $ — Commercial and industrial 1 14 Commercial construction — — SBA PPP — — Residential mortgages — — Home equity loans and lines — — Consumer — — Total 1 $ 14 The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the nine months indicated: Nine months ended September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Commercial real estate 3 $ 3,591 $ 3,708 Commercial and industrial 1 15 14 Commercial construction — — — SBA PPP — — — Residential mortgages 1 224 224 Home equity — — — Consumer — — — Total 5 $ 3,830 $ 3,946 The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the nine months ended September 30, 2021 as indicated: September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate 1 $ 670 Commercial and industrial 1 14 Commercial construction — — SBA PPP — — Residential mortgages — — Home equity — — Consumer — — Total 2 $ 684 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the nine-month period indicated: Nine months ended September 30, 2021 (Dollars in thousands) Number of Amount Extended maturity date 1 $ 382 Temporary payment reduction and payment re-amortization of remaining principal over extended term 2 894 Temporary interest only payment plan 1 14 Forbearance of post default rights — — Other payment concessions 1 2,656 Total 5 $ 3,946 Amount of allowance for credit losses for loans associated with TDRs listed above $ 14 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the nine-month periods indicated: Nine months ended September 30, 2020 (Dollars in thousands) Number of Amount Extended maturity date 2 $ 1,145 Temporary payment reduction and payment re-amortization of remaining principal over extended term 6 1,599 Forbearance of post default rights 4 2,070 Total 12 $ 4,814 Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above $ 1,240 Loans modified as troubled debt restructurings during the three-month period ended September 30, 2020 are detailed below: Three months ended September 30, 2020 (Dollars in thousands) Number of Pre-modification Post-modification Commercial real estate 1 $ 217 $ 215 Commercial and industrial 3 410 413 Commercial construction — — — SBA PPP — — — Residential mortgages — — — Home equity loans and lines — — — Consumer — — — Total 4 $ 627 $ 628 The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the during the three months ended September 30, 2020: Three months ended September 30, 2020 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate — $ — Commercial and industrial 2 327 Commercial construction 2 1,510 SBA PPP — — Residential mortgages — — Home equity loans and lines — — Consumer — — Total 4 $ 1,837 The following table presents number and balance of loans modified as TDRs, by portfolio classification, during the nine months indicated: Nine months ended September 30, 2020 (Dollars in thousands) Number of Pre-modification Post-Modification Commercial real estate 1 $ 217 $ 215 Commercial and industrial 4 884 672 Commercial construction 6 4,754 3,927 SBA PPP — — — Residential mortgages — — — Home equity — — — Consumer 1 1 — Total 12 $ 5,856 $ 4,814 The following table presents loans modified as TDRs within the preceding twelve months, which have defaulted on the modified terms during the during the nine months ended September 30, 2020: Nine months ended September 30, 2020 (Dollars in thousands) Number of TDRs that Defaulted Post- Commercial real estate — $ — Commercial and industrial 4 391 Commercial construction 4 2,655 SBA PPP — — Residential mortgages — — Home equity — — Consumer 1 — Total 9 $ 3,046 |
Allowance for Credit Losses on Financing Receivables | Changes in the ACL for loans by portfolio classification for the three months ended September 30, 2021 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2021 $ 34,008 $ 10,800 $ 3,777 $ 843 $ 295 $ 318 $ 50,041 Provision (benefit) for credit losses on loans (1,660) 694 397 (4) (32) (48) (653) Recoveries — 19 — — 57 2 78 Less: Charge-offs — 2,194 — — — 10 2,204 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 Changes in the ACL for loans by portfolio classification for the nine months ended September 30, 2021 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2020 $ 26,755 $ 9,516 $ 6,129 $ 1,530 $ 467 $ 168 $ 44,565 CECL adjustment upon adoption 7,664 1,988 (2,416) (695) (158) 177 6,560 Provision (benefit) for credit losses for loans (285) 156 461 4 (56) (71) 209 Recoveries 39 102 — — 67 5 213 Less: Charge-offs 1,825 2,443 — — — 17 4,285 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 Changes in the allowance for loan losses by portfolio classification for the three months ended September 30, 2020 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2020 $ 22,477 $ 9,763 $ 7,498 $ 1,728 $ 613 $ 245 $ 42,324 Provision 1,159 489 73 (59) (67) (20) 1,575 Recoveries — 33 — — 4 9 46 Less: Charge-offs — 103 — — — 7 110 Ending Balance at September 30, 2020 $ 23,636 $ 10,182 $ 7,571 $ 1,669 $ 550 $ 227 $ 43,835 Changes in the allowance for loan losses by portfolio classification for the nine months ended September 30, 2020 are presented below: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2019 $ 18,338 $ 9,129 $ 4,149 $ 1,195 $ 536 $ 267 $ 33,614 Provision for credit losses for loans 5,298 1,248 3,422 474 4 (49) 10,397 Recoveries — 207 — — 10 34 251 Less: Charge-offs — 402 — — — 25 427 Ending Balance at September 30, 2020 $ 23,636 $ 10,182 $ 7,571 $ 1,669 $ 550 $ 227 $ 43,835 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 18 $ 2,890 $ 1,651 $ — $ — $ 31 $ 4,590 Allocated to loans collectively evaluated for impairment $ 23,618 $ 7,292 $ 5,920 $ 1,669 $ 550 $ 196 $ 39,245 |
Financing Receivables by Evaluation Method | The balances of loans as of December 31, 2020 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans Individually Loans Collectively Gross Loans Commercial real estate $ 35,915 $ 1,442,320 $ 1,478,235 Commercial and industrial 8,409 427,251 435,660 Commercial construction 2,999 370,310 373,309 SBA PPP — 453,084 453,084 Residential mortgages 596 252,375 252,971 Home equity 381 84,625 85,006 Consumer 18 8,963 8,981 Total gross loans $ 48,318 $ 3,038,928 $ 3,087,246 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Liability Maturity Table as Lessee | At September 30, 2021, the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2021 (three remaining months) $ 340 2022 1,377 2023 1,403 2024 1,431 2025 1,437 Thereafter 32,982 Total lease payments 38,970 Less: Imputed interest 15,222 Total lease liability $ 23,748 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Deposit Liabilities | Deposits are summarized as follows as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Non-interest checking $ 1,404,353 $ 1,164,908 Interest-bearing checking 713,991 599,630 Savings 294,143 256,347 Money market 1,344,116 1,210,414 CDs $250,000 or less 160,810 176,895 CDs greater than $250,000 53,523 68,074 Total customer deposits 3,970,936 3,476,268 Brokered deposits — 74,995 Total deposits $ 3,970,936 $ 3,551,263 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds Maturity | Borrowed funds at September 30, 2021 and December 31, 2020 are summarized, as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Balance Rate Balance Rate Within 12 months $ 5,585 0.30 % $ 4,316 0.33 % Over 5 years $ 3,015 1.70 % $ 458 — % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives, Fair Value and Classification | The tables below present a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of September 30, 2021 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 36,711 $ 825 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 36,711 825 Total back-to-back interest-rate swaps $ 36,711 $ 825 $ 36,711 $ 825 December 31, 2020 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives designated as hedging instruments Interest-rate contracts - pay fixed, receive floating $ — $ — $ 75,000 $ 2,814 Total cash flow hedge interest-rate swaps $ — $ — $ 75,000 $ 2,814 Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 38,027 $ 2,286 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 38,027 2,286 Total back-to-back interest-rate swaps $ 38,027 $ 2,286 $ 38,027 $ 2,286 __________________________________________ |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company's and the Bank's actual capital amounts and ratios are presented as of September 30, 2021 and December 31, 2020 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021 The Company Total Capital to risk-weighted assets ("RWA") $ 423,722 14.16 % $ 239,322 8.00 % N/A N/A Tier 1 Capital to RWA 327,220 10.94 % 179,492 6.00 % N/A N/A Tier 1 Capital to average assets ("AA") or Leverage Ratio 327,220 7.42 % 176,474 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 327,220 10.94 % 134,619 4.50 % N/A N/A The Bank Total Capital to RWA $ 423,585 14.16 % $ 239,323 8.00 % $ 299,153 10.00 % Tier 1 Capital to RWA 386,032 12.90 % 179,492 6.00 % 239,323 8.00 % Tier 1 Capital to AA, Leverage Ratio 386,032 8.75 % 176,474 4.00 % 220,592 5.00 % Common Equity Tier 1 Capital to RWA 386,032 12.90 % 134,619 4.50 % 194,450 6.50 % Actual Minimum Capital (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 The Company Total Capital to RWA $ 415,999 14.62 % $ 227,631 8.00 % N/A N/A Tier 1 Capital to RWA 306,577 10.77 % 170,723 6.00 % N/A N/A Tier 1 Capital to AA, Leverage Ratio 306,577 7.52 % 163,127 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 306,577 10.77 % 128,042 4.50 % N/A N/A The Bank Total Capital to RWA $ 413,862 14.55 % $ 227,631 8.00 % $ 284,538 10.00 % Tier 1 Capital to RWA 378,184 13.29 % 170,723 6.00 % 227,631 8.00 % Tier 1 Capital to AA, Leverage Ratio 378,184 9.27 % 163,127 4.00 % 203,909 5.00 % Common Equity Tier 1 Capital to RWA 378,184 13.29 % 128,042 4.50 % 184,950 6.50 % __________________________________________ (1) Before application of the capital conservation buffer of 2.50% as of September 30, 2021 and December 31, 2020. See discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed under the regulatory prompt corrective action framework. This framework does not apply to the Company. |
Schedule of Basel III Minimum Requirements at Full Phase In | The Basel III minimum capital ratio requirements as applicable to the Company and the Bank with the capital conversation buffer are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital to RWA 8.00 % 2.50 % 10.50 % Tier 1 Capital to RWA 6.00 % 2.50 % 8.50 % Tier 1 Capital to AA, or Leverage Ratio 4.00 % — % 4.00 % Common equity tier 1 capital to RWA 4.50 % 2.50 % 7.00 % |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Reconciliation of Changes | The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax benefit (expense) allocated to each component of other comprehensive income (loss): Three months ended September 30, 2021 Three months ended September 30, 2020 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax (Expense) Benefit After Tax Amount Change in fair value of debt securities $ (3,401) $ 772 $ (2,629) $ 57 $ (9) $ 48 Less: net security gains reclassified into non-interest income — — — 127 (29) 98 Net change in fair value of debt securities (3,401) 772 (2,629) (70) 20 (50) Change in fair value of cash flow hedges (1,061) 299 (762) 14 (4) 10 Less: net cash flow hedges losses reclassified into income (2,915) 820 (2,095) (218) 61 (157) Net change in fair value of cash flow hedges 1,854 (521) 1,333 232 (65) 167 Total other comprehensive income (loss), net $ (1,547) $ 251 $ (1,296) $ 162 $ (45) $ 117 Nine months ended September 30, 2021 Nine months ended September 30, 2020 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax (Expense) Benefit After Tax Amount Change in fair value of debt securities $ (13,453) $ 3,000 $ (10,453) $ 17,887 $ (3,971) $ 13,916 Less: net security gains reclassified into non-interest income 128 (29) 99 227 (51) 176 Net change in fair value of debt securities (13,581) 3,029 (10,552) 17,660 (3,920) 13,740 Change in fair value of cash flow hedges 378 (106) 272 (3,334) 937 (2,397) Less: net cash flow hedges losses reclassified into income (2,436) 685 (1,751) (278) 78 (200) Net change in fair value of cash flow hedges 2,814 (791) 2,023 (3,056) 859 (2,197) Total other comprehensive (loss) income, net $ (10,767) $ 2,238 $ (8,529) $ 14,604 $ (3,061) $ 11,543 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended September 30, 2021 Three months ended September 30, 2020 (Dollars in thousands) Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Accumulated other comprehensive income - beginning balance $ 16,293 $ (1,333) $ 14,960 $ 24,300 $ (2,364) $ 21,936 Total other comprehensive income, net (2,629) 1,333 (1,296) (50) 167 117 Accumulated other comprehensive income - ending balance $ 13,664 $ — $ 13,664 $ 24,250 $ (2,197) $ 22,053 Nine months ended September 30, 2021 Nine months ended September 30, 2020 (Dollars in thousands) Unrealized gains on debt securities Unrealized losses on cash flow hedges Total Unrealized gains (losses) on debt securities Unrealized gains (losses) on cash flow hedges Total Accumulated other comprehensive income - beginning balance $ 24,216 $ (2,023) $ 22,193 $ 10,510 $ — $ 10,510 Total other comprehensive (loss) income, net (10,552) 2,023 (8,529) 13,740 (2,197) 11,543 Accumulated other comprehensive income - ending balance $ 13,664 $ — $ 13,664 $ 24,250 $ (2,197) $ 22,053 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the periods indicated: Nine Months Ended September 30, 2021 2020 Options granted 17,580 24,208 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 44 % 37 % Expected dividend yield 3.01 % 3.43 % Expected life in years 6.5 6.5 Risk-free interest-rate 1.28 % 1.02 % Weighted average market price on date of grants $ 32.73 $ 28.22 Per share weighted average fair value $ 11.95 $ 8.41 Fair value as a percentage of market value at grant date 36 % 30 % |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted during the periods indicated: Nine Months Ended September 30, Restricted Stock Awards (number of underlying shares) 2021 2020 Two-year vesting 8,109 8,295 Four-year vesting 24,307 26,015 Performance-based vesting 21,559 25,001 Total restricted stock awards granted 53,975 59,311 Weighted average grant date fair value $ 32.73 $ 28.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Basic weighted average common shares outstanding 12,022,610 11,916,486 11,997,199 11,886,811 Dilutive shares 42,490 10,557 41,362 21,905 Diluted weighted average common shares outstanding 12,065,100 11,927,043 12,038,561 11,908,716 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: September 30, 2021 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 817,781 $ — $ 817,781 $ — Equity securities 1,441 1,441 — — FHLB stock 2,164 — 2,164 — Interest-rate swaps 825 — 825 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 15,612 — — 15,612 Other real estate owned 2,400 — — 2,400 Liabilities measured on a recurring basis: Interest-rate swaps $ 825 $ — $ 825 $ — December 31, 2020 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 582,303 $ — $ 582,303 $ — Equity securities 746 746 — — FHLB stock 1,905 — 1,905 — Interest-rate swaps 2,286 — 2,286 — Assets measured on a non-recurring basis: Collateral dependent loans carried at fair value 18,733 — — 18,733 Liabilities measured on a recurring basis: Interest-rate swaps $ 5,100 $ — $ 5,100 $ — |
Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements | The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of September 30, 2021 and December 31, 2020: Fair Value (Dollars in thousands) September 30, 2021 December 31, 2020 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) $ 15,612 $ 18,733 Appraisal of collateral Appraisal adjustments (1) 15% - 50% Other real estate owned $ 2,400 $ — Appraisal of collateral Appraisal adjustments (1) 0% - 20% __________________________________________ (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | Financial instruments for which the fair value is disclosed but not recognized on the Consolidated Balance Sheets are summarized below. The table includes the carrying value, estimated fair value and its placement in the fair value hierarchy as follows: September 30, 2021 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 413 $ 403 $ — $ 403 $ — Loans, net 2,800,848 2,845,236 — — 2,845,236 Financial liabilities: CDs 214,333 214,860 — 214,860 — Borrowed funds 8,600 8,210 — 8,210 — Subordinated debt 58,949 58,938 — 58,938 — December 31, 2020 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 371 $ 372 $ — $ 372 $ — Loans, net 3,029,295 3,064,791 — — 3,064,791 Financial liabilities: CDs 244,969 246,498 — 246,498 — Brokered deposits 74,995 76,652 — 76,652 — Borrowed funds 4,774 4,684 — 4,684 — Subordinated debt 73,744 76,769 — 76,769 — |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The supplemental cash flow information for the nine months ended September 30, 2021 and September 30, 2020 is as follows: Nine months ended September 30, (Dollars in thousands) 2021 2020 Supplemental financial data: Cash paid for: interest $ 7,198 $ 11,502 Cash paid for: income taxes 11,074 11,883 Cash paid for: lease liability 912 921 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled 17,260 — Transfer from loans to other real estate owned 2,400 — ROU lease assets: operating leases (1) 7,932 — _________________________________________ (1) Represents net new right of use ("ROU") lease assets added in the periods indicated. |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities at fair value | $ 817,781 | $ 582,303 |
Accrued interest related to AFS debt securities | 3,200 | 2,300 |
Callable debt securities, fair value | 155,500 | |
Equity securities at fair value | 1,441 | 746 |
Collateral Pledged | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, pledged as collateral | 794,400 | 577,300 |
Mortgage backed securities, excluding CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities at fair value | $ 24,100 | $ 18,700 |
Investment Securities - Investm
Investment Securities - Investments Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 800,250 | $ 551,191 |
Unrealized Gains | 23,053 | 31,402 |
Unrealized Losses | 5,522 | 290 |
Fair Value | 817,781 | 582,303 |
Federal agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 33,914 | |
Unrealized Gains | 0 | |
Unrealized Losses | 237 | |
Fair Value | 33,677 | |
Residential federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 362,929 | 209,923 |
Unrealized Gains | 3,646 | 6,339 |
Unrealized Losses | 4,867 | 287 |
Fair Value | 361,708 | 215,975 |
Commercial federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 101,744 | 102,468 |
Unrealized Gains | 5,314 | 7,726 |
Unrealized Losses | 0 | 0 |
Fair Value | 107,058 | 110,194 |
Taxable municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 199,781 | 135,117 |
Unrealized Gains | 6,998 | 9,293 |
Unrealized Losses | 418 | 3 |
Fair Value | 206,361 | 144,407 |
Tax-exempt municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 87,328 | 88,235 |
Unrealized Gains | 6,350 | 7,216 |
Unrealized Losses | 0 | 0 |
Fair Value | 93,678 | 95,451 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,554 | 10,448 |
Unrealized Gains | 575 | 828 |
Unrealized Losses | 0 | 0 |
Fair Value | 9,129 | 11,276 |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,000 | 5,000 |
Unrealized Gains | 170 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 6,170 | $ 5,000 |
Investment Securities - Debt Se
Investment Securities - Debt Securities Continuous Loss Position (Details) $ in Thousands | Sep. 30, 2021USD ($)investment | Dec. 31, 2020USD ($)investment |
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 265,837 | $ 53,393 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 5,198 | 287 |
Temporarily impaired debt securities, 12 months or longer, fair value | 13,451 | 2,107 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 324 | 3 |
Temporarily impaired debt securities, fair value | 279,288 | 55,500 |
Temporarily impaired debt securities, unrealized loss | $ 5,522 | $ 290 |
Number of holdings | investment | 74 | 14 |
Federal agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 26,692 | |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 237 | |
Temporarily impaired debt securities, 12 months or longer, fair value | 0 | |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 0 | |
Temporarily impaired debt securities, fair value | 26,692 | |
Temporarily impaired debt securities, unrealized loss | $ 237 | |
Number of holdings | investment | 5 | |
Residential federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 202,960 | $ 51,396 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 4,543 | 284 |
Temporarily impaired debt securities, 12 months or longer, fair value | 13,451 | 2,107 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 324 | 3 |
Temporarily impaired debt securities, fair value | 216,411 | 53,503 |
Temporarily impaired debt securities, unrealized loss | $ 4,867 | $ 287 |
Number of holdings | investment | 30 | 10 |
Taxable municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 36,185 | $ 1,997 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 418 | 3 |
Temporarily impaired debt securities, 12 months or longer, fair value | 0 | 0 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 0 | 0 |
Temporarily impaired debt securities, fair value | 36,185 | 1,997 |
Temporarily impaired debt securities, unrealized loss | $ 418 | $ 3 |
Number of holdings | investment | 39 | 4 |
Investment Securities - Debt _2
Investment Securities - Debt Securities Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 13,084 | |
Due after one, but within five years | 141,731 | |
Due after five, but within ten years | 232,279 | |
Due after ten years | 413,156 | |
Amortized Cost | 800,250 | $ 551,191 |
Fair Value | ||
Due in one year or less | 13,246 | |
Due after one, but within five years | 148,754 | |
Due after five, but within ten years | 242,212 | |
Due after ten years | 413,569 | |
Total debt securities | $ 817,781 | $ 582,303 |
Investment Securities - Debt _3
Investment Securities - Debt Securities Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Amortized cost of debt securities sold | $ 0 | $ 3,153 | $ 2,931 | $ 5,680 |
Gross realized gains on sales | 0 | 127 | 128 | 227 |
Gross realized losses on sales | 0 | 0 | 0 | 0 |
Total proceeds from sales of debt securities | $ 0 | $ 3,280 | $ 3,059 | $ 5,907 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains (losses) recognized during the period on equity securities | $ 6 | $ (3) | $ 154 | $ (135) |
Less: Net gains (losses) recognized on equity securities sold during the period | 0 | 0 | 6 | (11) |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the end of the period (included in other income) | $ 6 | $ (3) | $ 148 | $ (124) |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | $ 2,848,110 | $ 3,073,860 | |
Allowance for credit losses | (47,262) | (44,565) | $ (43,800) |
Net loans | 2,800,848 | 3,029,295 | |
Commercial | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 2,518,530 | 2,726,710 | |
Commercial real estate | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 1,556,240 | 1,476,236 | |
Commercial and industrial | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 401,718 | 435,548 | |
Commercial construction | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 412,332 | 371,856 | |
SBA paycheck protection program ("PPP") | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 148,240 | 443,070 | |
Retail | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 329,580 | 347,150 | |
Residential mortgages | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 239,960 | 252,995 | |
Home equity loans and lines | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | 81,217 | 85,178 | |
Consumer | |||
Loan Portfolio Classifications, Adoption of CECL | |||
Total loans | $ 8,403 | $ 8,977 |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Loans by Loan Classification [Line Items] | ||
Loan origination fees | $ 9,500 | $ 13,400 |
Accrued interest receivable on loans | 10,600 | 13,800 |
Financing receivable, average loan size | 2,848,110 | 3,073,860 |
Commercial | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Participation loans amount | 68,600 | 77,100 |
Financing receivable, average loan size | 2,518,530 | 2,726,710 |
Participations loans sold that are still serviced amount | 64,900 | 65,300 |
SBA paycheck protection program ("PPP") | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Loan origination fees | $ 5,300 | 10,000 |
Interest rate | 1.00% | |
Finance receivable term, minimum | 2 years | |
Finance receivable term, maximum | 5 years | |
Financing receivable, average loan size | $ 148,240 | 443,070 |
SBA paycheck protection program ("PPP") | Quarterly Average | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Financing receivable, average loan size | 182 | |
Residential mortgages | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Financing receivable, average loan size | 239,960 | 252,995 |
Amount of loans serviced for others | $ 12,000 | $ 13,700 |
Loans - Loans Serving as Collat
Loans - Loans Serving as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans pledged to FHLB | $ 374,030 | $ 434,957 |
Commercial real estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans pledged to FHLB | 156,382 | 195,936 |
Residential mortgages | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans pledged to FHLB | 212,412 | 233,050 |
Home equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans pledged to FHLB | $ 5,236 | $ 5,971 |
ACL for Loans - Additional Info
ACL for Loans - Additional Information (Details) | Jan. 01, 2021USD ($) | Sep. 30, 2021USD ($)counterparty | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)counterparty | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Retained earnings | $ (233,137,000) | $ (233,137,000) | $ (214,977,000) | ||||||
Allowance for credit losses | $ 47,262,000 | $ 43,800,000 | $ 47,262,000 | $ 43,800,000 | 44,565,000 | ||||
Allowance for credit losses to total loans ratio | 1.66% | 1.66% | 1.66% | ||||||
Total loans | $ 2,848,110,000 | $ 2,848,110,000 | 3,073,860,000 | ||||||
Adversely classified loans to all loans, ratio | 2.23% | 2.23% | |||||||
Interest accrual resumed on nonaccrual loans after brought current, term | 180 days | ||||||||
Non-accrual Loans | $ 27,835,000 | $ 27,835,000 | $ 38,050,000 | ||||||
The ratio of non-accrual loans to total loans | 0.98% | 0.98% | 1.24% | ||||||
Total accruing impaired loans | $ 9,100,000 | $ 9,100,000 | |||||||
Total non accruing impaired loans | $ 27,400,000 | $ 27,400,000 | $ 10,300,000 | ||||||
Pass classified loans to all loans, ratio | 0.41% | 0.41% | |||||||
Total troubled debt restructure (TDR) loans | $ 17,600,000 | $ 17,600,000 | 17,700,000 | ||||||
TDR loans on accrual status | 9,200,000 | 9,200,000 | 10,300,000 | ||||||
TDR loans included in non-performing loans | 8,400,000 | 8,400,000 | 7,500,000 | ||||||
Provision for credit losses | 28,000 | 1,575,000 | 747,000 | 10,397,000 | |||||
Charge-offs associated with new TDRs | 0 | 0 | |||||||
Commercial real estate | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total loans | 1,556,240,000 | 1,556,240,000 | 1,476,236,000 | ||||||
Non-accrual Loans | 23,529,000 | 23,529,000 | 29,680,000 | ||||||
Collateral Pledged | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total loans | 36,500,000 | 36,500,000 | |||||||
Criticized | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total loans | 63,600,000 | 63,600,000 | |||||||
Pass | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Non-accrual Loans | $ 144,000 | $ 144,000 | 137,000 | ||||||
Number of loans with short-term payment deferrals | counterparty | 4 | 4 | |||||||
Amount of short-term payment deferrals | $ 11,800,000 | $ 11,800,000 | |||||||
Pass | Commercial real estate | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total loans | 1,513,110,000 | 1,513,110,000 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Retained earnings | $ 6,500,000 | ||||||||
Deferred income taxes | 2,500,000 | ||||||||
Allowance for credit losses | 6,600,000 | ||||||||
Unfunded Loan Commitment | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | 2,500,000 | 3,000,000 | 3,000,000 | ||||||
Provision for credit losses | 681,000 | 538,000 | |||||||
Unfunded Loan Commitment | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | $ 2,400,000 | ||||||||
Loans Excluding Unfunded Commitments | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | 47,262,000 | 43,835,000 | 47,262,000 | 43,835,000 | $ 50,041,000 | 44,565,000 | $ 42,324,000 | $ 33,614,000 | |
Provision for credit losses | (653,000) | 1,575,000 | 209,000 | 10,397,000 | |||||
Loans Excluding Unfunded Commitments | Commercial real estate | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | 32,348,000 | 23,636,000 | 32,348,000 | 23,636,000 | $ 34,008,000 | 26,755,000 | $ 22,477,000 | $ 18,338,000 | |
Provision for credit losses | $ (1,660,000) | $ 1,159,000 | $ (285,000) | $ 5,298,000 | |||||
Loans Excluding Unfunded Commitments | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | 6,560,000 | ||||||||
Loans Excluding Unfunded Commitments | Cumulative Effect, Period of Adoption, Adjustment | Commercial real estate | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for credit losses | $ 7,664,000 |
ACL for Loans - Credit Risk Ind
ACL for Loans - Credit Risk Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | $ 554,861 | |
2020 | 473,623 | |
2019 | 421,390 | |
2018 | 206,177 | |
2017 | 233,926 | |
Prior | 671,898 | |
Revolving Loans | 283,513 | |
Revolving Loans Converted to Term | 2,722 | |
Total loans | 2,848,110 | $ 3,073,860 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 225,255 | |
2020 | 228,203 | |
2019 | 266,916 | |
2018 | 120,196 | |
2017 | 195,995 | |
Prior | 519,205 | |
Revolving Loans | 470 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 1,556,240 | 1,476,236 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 225,255 | |
2020 | 228,203 | |
2019 | 263,809 | |
2018 | 116,038 | |
2017 | 182,495 | |
Prior | 496,840 | |
Revolving Loans | 470 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 1,513,110 | |
Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 903 | |
2018 | 808 | |
2017 | 381 | |
Prior | 7,934 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 10,026 | |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 2,204 | |
2018 | 3,168 | |
2017 | 13,119 | |
Prior | 14,431 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 32,922 | |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 182 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 182 | |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 36,941 | |
2020 | 43,750 | |
2019 | 41,510 | |
2018 | 23,400 | |
2017 | 16,806 | |
Prior | 58,510 | |
Revolving Loans | 179,515 | |
Revolving Loans Converted to Term | 1,286 | |
Total loans | 401,718 | 435,548 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 36,941 | |
2020 | 43,086 | |
2019 | 39,278 | |
2018 | 22,260 | |
2017 | 16,711 | |
Prior | 52,844 | |
Revolving Loans | 172,721 | |
Revolving Loans Converted to Term | 1,231 | |
Total loans | 385,072 | |
Commercial and industrial | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 664 | |
2019 | 2,216 | |
2018 | 1,024 | |
2017 | 12 | |
Prior | 1,522 | |
Revolving Loans | 3,990 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 9,428 | |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 16 | |
2018 | 116 | |
2017 | 83 | |
Prior | 4,144 | |
Revolving Loans | 2,804 | |
Revolving Loans Converted to Term | 55 | |
Total loans | 7,218 | |
Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 109,091 | |
2020 | 126,637 | |
2019 | 81,137 | |
2018 | 34,872 | |
2017 | 5,395 | |
Prior | 27,765 | |
Revolving Loans | 26,367 | |
Revolving Loans Converted to Term | 1,068 | |
Total loans | 412,332 | 371,856 |
Commercial construction | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 109,091 | |
2020 | 126,637 | |
2019 | 81,137 | |
2018 | 34,872 | |
2017 | 5,395 | |
Prior | 27,615 | |
Revolving Loans | 26,327 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 411,074 | |
Commercial construction | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 0 | |
Commercial construction | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 150 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 1,068 | |
Total loans | 1,218 | |
Commercial construction | Loss | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 40 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 40 | |
SBA paycheck protection program ("PPP") | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Total loans | 148,240 | 443,070 |
SBA paycheck protection program ("PPP") | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 135,967 | |
2020 | 12,273 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 148,240 | |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 44,424 | |
2020 | 60,657 | |
2019 | 29,671 | |
2018 | 26,586 | |
2017 | 15,023 | |
Prior | 63,599 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 239,960 | 252,995 |
Residential mortgages | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 44,424 | |
2020 | 60,657 | |
2019 | 29,671 | |
2018 | 26,586 | |
2017 | 15,023 | |
Prior | 61,401 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 237,762 | |
Residential mortgages | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 595 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 595 | |
Residential mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 1,603 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 1,603 | |
Home equity loans and lines | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 665 | |
2020 | 481 | |
2019 | 368 | |
2018 | 0 | |
2017 | 0 | |
Prior | 2,300 | |
Revolving Loans | 77,161 | |
Revolving Loans Converted to Term | 242 | |
Total loans | 81,217 | 85,178 |
Home equity loans and lines | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 665 | |
2020 | 481 | |
2019 | 368 | |
2018 | 0 | |
2017 | 0 | |
Prior | 2,045 | |
Revolving Loans | 77,074 | |
Revolving Loans Converted to Term | 242 | |
Total loans | 80,875 | |
Home equity loans and lines | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 255 | |
Revolving Loans | 87 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 342 | |
Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 2,518 | |
2020 | 1,622 | |
2019 | 1,788 | |
2018 | 1,123 | |
2017 | 707 | |
Prior | 519 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 126 | |
Total loans | 8,403 | $ 8,977 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 2,518 | |
2020 | 1,622 | |
2019 | 1,788 | |
2018 | 1,123 | |
2017 | 707 | |
Prior | 506 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 126 | |
Total loans | 8,390 | |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 13 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | $ 13 |
ACL for Loans - Past Due and No
ACL for Loans - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Aging of Financing Receivables | ||
Total loans | $ 2,848,110 | $ 3,073,860 |
Total Non-accrual Loans | 27,835 | 38,050 |
Non-accrual Loans without a Specific Reserve | 10,976 | |
Non-accrual Loans with a Specific Reserve | 16,859 | |
Related Specific Reserve | 1,610 | |
Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 8,956 | |
30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 5,932 | |
60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 862 | |
Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,162 | |
Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,839,154 | |
Commercial real estate | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,556,240 | 1,476,236 |
Total Non-accrual Loans | 23,529 | 29,680 |
Non-accrual Loans without a Specific Reserve | 7,452 | |
Non-accrual Loans with a Specific Reserve | 16,077 | |
Related Specific Reserve | 1,167 | |
Commercial real estate | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,093 | |
Commercial real estate | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 373 | |
Commercial real estate | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 424 | |
Commercial real estate | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,296 | |
Commercial real estate | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,554,147 | |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 401,718 | 435,548 |
Total Non-accrual Loans | 2,044 | 4,574 |
Non-accrual Loans without a Specific Reserve | 1,302 | |
Non-accrual Loans with a Specific Reserve | 742 | |
Related Specific Reserve | 429 | |
Commercial and industrial | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,069 | |
Commercial and industrial | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,598 | |
Commercial and industrial | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 166 | |
Commercial and industrial | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 305 | |
Commercial and industrial | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 399,649 | |
Commercial construction | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 412,332 | 371,856 |
Total Non-accrual Loans | 1,258 | 2,999 |
Non-accrual Loans without a Specific Reserve | 1,218 | |
Non-accrual Loans with a Specific Reserve | 40 | |
Related Specific Reserve | 14 | |
Commercial construction | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,607 | |
Commercial construction | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,417 | |
Commercial construction | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Commercial construction | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 190 | |
Commercial construction | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 409,725 | |
SBA paycheck protection program ("PPP") | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 148,240 | 443,070 |
Total Non-accrual Loans | 0 | 0 |
Non-accrual Loans without a Specific Reserve | 0 | |
Non-accrual Loans with a Specific Reserve | 0 | |
Related Specific Reserve | 0 | |
SBA paycheck protection program ("PPP") | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 925 | |
SBA paycheck protection program ("PPP") | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 925 | |
SBA paycheck protection program ("PPP") | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 147,315 | |
Residential mortgages | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 239,960 | 252,995 |
Total Non-accrual Loans | 662 | 414 |
Non-accrual Loans without a Specific Reserve | 662 | |
Non-accrual Loans with a Specific Reserve | 0 | |
Related Specific Reserve | 0 | |
Residential mortgages | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,048 | |
Residential mortgages | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 492 | |
Residential mortgages | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 272 | |
Residential mortgages | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 284 | |
Residential mortgages | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 238,912 | |
Home equity loans and lines | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 81,217 | 85,178 |
Total Non-accrual Loans | 342 | 381 |
Non-accrual Loans without a Specific Reserve | 342 | |
Non-accrual Loans with a Specific Reserve | 0 | |
Related Specific Reserve | 0 | |
Home equity loans and lines | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 212 | |
Home equity loans and lines | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 125 | |
Home equity loans and lines | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Home equity loans and lines | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 87 | |
Home equity loans and lines | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 81,005 | |
Consumer | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 8,403 | 8,977 |
Total Non-accrual Loans | 0 | $ 2 |
Non-accrual Loans without a Specific Reserve | 0 | |
Non-accrual Loans with a Specific Reserve | 0 | |
Related Specific Reserve | 0 | |
Consumer | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2 | |
Consumer | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2 | |
Consumer | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Consumer | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Consumer | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | $ 8,401 |
ACL for Loans - Impaired Loans
ACL for Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 43,748 | $ 52,736 |
Total Recorded Investment in Collateral Dependent Loans | 36,464 | 48,318 |
Recorded Investment without a Specific Reserve | 19,401 | 23,400 |
Recorded Investment with a Specific Reserve | 17,063 | 24,918 |
Related Specific Reserve | 1,451 | 6,185 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 30,516 | 37,184 |
Total Recorded Investment in Collateral Dependent Loans | 28,786 | 35,915 |
Recorded Investment without a Specific Reserve | 12,709 | 14,728 |
Recorded Investment with a Specific Reserve | 16,077 | 21,187 |
Related Specific Reserve | 1,167 | 3,454 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 9,168 | 10,628 |
Total Recorded Investment in Collateral Dependent Loans | 5,013 | 8,409 |
Recorded Investment without a Specific Reserve | 4,217 | 4,696 |
Recorded Investment with a Specific Reserve | 796 | 3,713 |
Related Specific Reserve | 270 | 2,713 |
Commercial construction | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 2,366 | 3,668 |
Total Recorded Investment in Collateral Dependent Loans | 1,258 | 2,999 |
Recorded Investment without a Specific Reserve | 1,068 | 2,999 |
Recorded Investment with a Specific Reserve | 190 | 0 |
Related Specific Reserve | 14 | 0 |
SBA paycheck protection program ("PPP") | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Total Recorded Investment in Collateral Dependent Loans | 0 | 0 |
Recorded Investment without a Specific Reserve | 0 | 0 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 1,189 | 699 |
Total Recorded Investment in Collateral Dependent Loans | 1,065 | 596 |
Recorded Investment without a Specific Reserve | 1,065 | 596 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Home equity loans and lines | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 509 | 539 |
Total Recorded Investment in Collateral Dependent Loans | 342 | 381 |
Recorded Investment without a Specific Reserve | 342 | 381 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 18 |
Total Recorded Investment in Collateral Dependent Loans | 0 | 18 |
Recorded Investment without a Specific Reserve | 0 | 0 |
Recorded Investment with a Specific Reserve | 0 | 18 |
Related Specific Reserve | $ 0 | $ 18 |
ACL for Loans - Troubled Debt R
ACL for Loans - Troubled Debt Restructures and Prior Period Trouble Debt Restructures (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 2 | 4 | 5 | 12 |
Pre-modification Outstanding Recorded Investment | $ 2,705 | $ 627 | $ 3,830 | $ 5,856 |
Post-modification Outstanding Recorded Investment | $ 2,670 | $ 628 | $ 3,946 | $ 4,814 |
Number of TDRs that Defaulted | loan | 1 | 4 | 2 | 9 |
Post- modification Outstanding Recorded Investment | $ 14 | $ 1,837 | $ 684 | $ 3,046 |
Amount of allowance for credit losses for loans associated with TDRs listed above | $ 14 | $ 1,240 | $ 14 | $ 1,240 |
Extended maturity date | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 1 | 2 | ||
Post-modification Outstanding Recorded Investment | $ 382 | $ 1,145 | ||
Temporary payment reduction and payment re-amortization of remaining principal over extended term | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 2 | 6 | ||
Post-modification Outstanding Recorded Investment | $ 894 | $ 1,599 | ||
Temporary interest only payment plan | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 1 | |||
Post-modification Outstanding Recorded Investment | $ 14 | |||
Forbearance of post default rights | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 4 | ||
Post-modification Outstanding Recorded Investment | $ 0 | $ 2,070 | ||
Other payment concessions | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 1 | |||
Post-modification Outstanding Recorded Investment | $ 2,656 | |||
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 1 | 1 | 3 | 1 |
Pre-modification Outstanding Recorded Investment | $ 2,690 | $ 217 | $ 3,591 | $ 217 |
Post-modification Outstanding Recorded Investment | $ 2,656 | $ 215 | $ 3,708 | $ 215 |
Number of TDRs that Defaulted | loan | 0 | 0 | 1 | 0 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 670 | $ 0 |
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 1 | 3 | 1 | 4 |
Pre-modification Outstanding Recorded Investment | $ 15 | $ 410 | $ 15 | $ 884 |
Post-modification Outstanding Recorded Investment | $ 14 | $ 413 | $ 14 | $ 672 |
Number of TDRs that Defaulted | loan | 1 | 2 | 1 | 4 |
Post- modification Outstanding Recorded Investment | $ 14 | $ 327 | $ 14 | $ 391 |
Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 0 | 0 | 6 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 4,754 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 3,927 |
Number of TDRs that Defaulted | loan | 0 | 2 | 0 | 4 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 1,510 | $ 0 | $ 2,655 |
SBA paycheck protection program ("PPP") | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 0 | 0 | 0 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Number of TDRs that Defaulted | loan | 0 | 0 | 0 | 0 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 0 | 1 | 0 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 224 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 224 | $ 0 |
Number of TDRs that Defaulted | loan | 0 | 0 | 0 | 0 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity loans and lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 0 | 0 | 0 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Number of TDRs that Defaulted | loan | 0 | 0 | 0 | 0 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Restructurings | loan | 0 | 0 | 0 | 1 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 1 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Number of TDRs that Defaulted | loan | 0 | 0 | 0 | 1 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
ACL for Loans - ACL Activity (D
ACL for Loans - ACL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | $ 44,565 | |||
Provision (benefit) for credit losses on loans | $ 28 | $ 1,575 | 747 | $ 10,397 |
Allowance for credit losses, ending balance | 47,262 | 43,800 | 47,262 | 43,800 |
Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 50,041 | 42,324 | 44,565 | 33,614 |
Provision (benefit) for credit losses on loans | (653) | 1,575 | 209 | 10,397 |
Recoveries | 78 | 46 | 213 | 251 |
Less: Charge-offs | 2,204 | 110 | 4,285 | 427 |
Allowance for credit losses, ending balance | 47,262 | 43,835 | 47,262 | 43,835 |
Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 6,560 | |||
Commercial real estate | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 34,008 | 22,477 | 26,755 | 18,338 |
Provision (benefit) for credit losses on loans | (1,660) | 1,159 | (285) | 5,298 |
Recoveries | 0 | 0 | 39 | 0 |
Less: Charge-offs | 0 | 0 | 1,825 | 0 |
Allowance for credit losses, ending balance | 32,348 | 23,636 | 32,348 | 23,636 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 7,664 | |||
Commercial and industrial | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 10,800 | 9,763 | 9,516 | 9,129 |
Provision (benefit) for credit losses on loans | 694 | 489 | 156 | 1,248 |
Recoveries | 19 | 33 | 102 | 207 |
Less: Charge-offs | 2,194 | 103 | 2,443 | 402 |
Allowance for credit losses, ending balance | 9,319 | 10,182 | 9,319 | 10,182 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 1,988 | |||
Commercial construction | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 3,777 | 7,498 | 6,129 | 4,149 |
Provision (benefit) for credit losses on loans | 397 | 73 | 461 | 3,422 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 4,174 | 7,571 | 4,174 | 7,571 |
Commercial construction | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | (2,416) | |||
Residential mortgages | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 843 | 1,728 | 1,530 | 1,195 |
Provision (benefit) for credit losses on loans | (4) | (59) | 4 | 474 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 839 | 1,669 | 839 | 1,669 |
Residential mortgages | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | (695) | |||
Home equity loans and lines | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 295 | 613 | 467 | 536 |
Provision (benefit) for credit losses on loans | (32) | (67) | (56) | 4 |
Recoveries | 57 | 4 | 67 | 10 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 320 | 550 | 320 | 550 |
Home equity loans and lines | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | (158) | |||
Consumer | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 318 | 245 | 168 | 267 |
Provision (benefit) for credit losses on loans | (48) | (20) | (71) | (49) |
Recoveries | 2 | 9 | 5 | 34 |
Less: Charge-offs | 10 | 7 | 17 | 25 |
Allowance for credit losses, ending balance | $ 262 | $ 227 | 262 | $ 227 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | $ 177 |
ACL for Loans - Other Real Esta
ACL for Loans - Other Real Estate Owned (Details) | 9 Months Ended | |||
Sep. 30, 2021USD ($)propertyloan | Sep. 30, 2020USD ($)property | Apr. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
OREO, Number of properties owned | property | 1 | |||
Carrying value of OREO | $ | $ 2,400,000 | $ 0 | ||
OREO Sold | property | 0 | 0 | ||
OREO Additions | property | 0 | |||
Number of consumer mortgage loans in process of foreclosure | loan | 1 | |||
Consumer mortgage loans in process of foreclosure, amount | $ | $ 87,000 | $ 0 | ||
Other real estate owned | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
OREO fair value adjustment | $ | $ 0 | $ 0 |
ACL for Loans - Prior Period Ev
ACL for Loans - Prior Period Evaluation Method (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | $ 48,318 |
Loans Collectively Evaluated for Impairment | 3,038,928 |
Total loans | 3,087,246 |
Commercial real estate | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 35,915 |
Loans Collectively Evaluated for Impairment | 1,442,320 |
Total loans | 1,478,235 |
Commercial and industrial | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 8,409 |
Loans Collectively Evaluated for Impairment | 427,251 |
Total loans | 435,660 |
Commercial construction | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 2,999 |
Loans Collectively Evaluated for Impairment | 370,310 |
Total loans | 373,309 |
SBA paycheck protection program ("PPP") | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 0 |
Loans Collectively Evaluated for Impairment | 453,084 |
Total loans | 453,084 |
Residential mortgages | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 596 |
Loans Collectively Evaluated for Impairment | 252,375 |
Total loans | 252,971 |
Home equity loans and lines | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 381 |
Loans Collectively Evaluated for Impairment | 84,625 |
Total loans | 85,006 |
Consumer | |
Schedule of Financing Receivable by Evaluation Method [Line Items] | |
Loans Individually Evaluated for Impairment | 18 |
Loans Collectively Evaluated for Impairment | 8,963 |
Total loans | $ 8,981 |
ACL for Loans - Prior Period Ad
ACL for Loans - Prior Period Adversely Classified Loans (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | $ 3,087,246 |
Commercial real estate | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 1,478,235 |
Commercial and industrial | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 435,660 |
Commercial construction | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 373,309 |
SBA paycheck protection program ("PPP") | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 453,084 |
Residential mortgages | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 252,971 |
Home equity loans and lines | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 85,006 |
Consumer | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 8,981 |
Substandard | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 52,386 |
Substandard | Commercial real estate | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 40,088 |
Substandard | Commercial and industrial | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 7,901 |
Substandard | Commercial construction | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 3,501 |
Substandard | SBA paycheck protection program ("PPP") | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Substandard | Residential mortgages | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 474 |
Substandard | Home equity loans and lines | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 381 |
Substandard | Consumer | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 41 |
Doubtful | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 2,490 |
Doubtful | Commercial real estate | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 197 |
Doubtful | Commercial and industrial | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 2,293 |
Doubtful | Commercial construction | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Doubtful | SBA paycheck protection program ("PPP") | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Doubtful | Residential mortgages | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Doubtful | Home equity loans and lines | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Doubtful | Consumer | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Commercial real estate | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Commercial and industrial | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Commercial construction | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | SBA paycheck protection program ("PPP") | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Residential mortgages | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Home equity loans and lines | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Loss | Consumer | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 0 |
Not Adversely Classified | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 3,032,370 |
Not Adversely Classified | Commercial real estate | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 1,437,950 |
Not Adversely Classified | Commercial and industrial | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 425,466 |
Not Adversely Classified | Commercial construction | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 369,808 |
Not Adversely Classified | SBA paycheck protection program ("PPP") | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 453,084 |
Not Adversely Classified | Residential mortgages | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 252,497 |
Not Adversely Classified | Home equity loans and lines | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | 84,625 |
Not Adversely Classified | Consumer | |
Financing Receivable, Credit Quality Indicators [Line Items] | |
Total loans | $ 8,940 |
ACL for Loans - Prior Period Pa
ACL for Loans - Prior Period Past Due and Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Aging of Financing Receivables | ||
Total loans | $ 3,087,246 | |
Non-accrual Loans | $ 27,835 | 38,050 |
30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 20,880 | |
60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 513 | |
Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 8,095 | |
Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 29,488 | |
Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 3,057,758 | |
Commercial real estate | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,478,235 | |
Non-accrual Loans | 23,529 | 29,680 |
Commercial real estate | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 6,105 | |
Commercial real estate | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 499 | |
Commercial real estate | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 5,592 | |
Commercial real estate | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 12,196 | |
Commercial real estate | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,466,039 | |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 435,660 | |
Non-accrual Loans | 2,044 | 4,574 |
Commercial and industrial | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 417 | |
Commercial and industrial | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 13 | |
Commercial and industrial | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 607 | |
Commercial and industrial | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,037 | |
Commercial and industrial | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 434,623 | |
Commercial construction | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 373,309 | |
Non-accrual Loans | 1,258 | 2,999 |
Commercial construction | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 13,466 | |
Commercial construction | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Commercial construction | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,351 | |
Commercial construction | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 14,817 | |
Commercial construction | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 358,492 | |
SBA paycheck protection program ("PPP") | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 453,084 | |
Non-accrual Loans | 0 | 0 |
SBA paycheck protection program ("PPP") | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
SBA paycheck protection program ("PPP") | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 453,084 | |
Residential mortgages | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 252,971 | |
Non-accrual Loans | 662 | 414 |
Residential mortgages | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 890 | |
Residential mortgages | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Residential mortgages | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 290 | |
Residential mortgages | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,180 | |
Residential mortgages | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 251,791 | |
Home equity loans and lines | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 85,006 | |
Non-accrual Loans | 342 | 381 |
Home equity loans and lines | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Home equity loans and lines | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Home equity loans and lines | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 255 | |
Home equity loans and lines | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 255 | |
Home equity loans and lines | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 84,751 | |
Consumer | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 8,981 | |
Non-accrual Loans | $ 0 | 2 |
Consumer | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2 | |
Consumer | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1 | |
Consumer | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | |
Consumer | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 3 | |
Consumer | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | $ 8,978 |
ACL for Loans - Prior Period Im
ACL for Loans - Prior Period Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | $ 43,748 | $ 52,736 | ||
Total Recorded Investment in Impaired Loans | 36,464 | 48,318 | ||
Recorded Investment without a Specific Reserve | 19,401 | 23,400 | ||
Recorded Investment with a Specific Reserve | 17,063 | 24,918 | ||
Related Specific Reserve | 1,451 | 6,185 | ||
Average Recorded Investment | $ 33,560 | $ 31,681 | ||
Interest Income Recognized | 135 | 354 | ||
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 30,516 | 37,184 | ||
Total Recorded Investment in Impaired Loans | 28,786 | 35,915 | ||
Recorded Investment without a Specific Reserve | 12,709 | 14,728 | ||
Recorded Investment with a Specific Reserve | 16,077 | 21,187 | ||
Related Specific Reserve | 1,167 | 3,454 | ||
Average Recorded Investment | 16,002 | 15,188 | ||
Interest Income Recognized | 66 | 208 | ||
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 9,168 | 10,628 | ||
Total Recorded Investment in Impaired Loans | 5,013 | 8,409 | ||
Recorded Investment without a Specific Reserve | 4,217 | 4,696 | ||
Recorded Investment with a Specific Reserve | 796 | 3,713 | ||
Related Specific Reserve | 270 | 2,713 | ||
Average Recorded Investment | 9,208 | 8,560 | ||
Interest Income Recognized | 50 | 118 | ||
Commercial construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 2,366 | 3,668 | ||
Total Recorded Investment in Impaired Loans | 1,258 | 2,999 | ||
Recorded Investment without a Specific Reserve | 1,068 | 2,999 | ||
Recorded Investment with a Specific Reserve | 190 | 0 | ||
Related Specific Reserve | 14 | 0 | ||
Average Recorded Investment | 7,180 | 6,537 | ||
Interest Income Recognized | 17 | 22 | ||
SBA paycheck protection program ("PPP") | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 0 | 0 | ||
Total Recorded Investment in Impaired Loans | 0 | 0 | ||
Recorded Investment without a Specific Reserve | 0 | 0 | ||
Recorded Investment with a Specific Reserve | 0 | 0 | ||
Related Specific Reserve | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
Residential mortgages | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 1,189 | 699 | ||
Total Recorded Investment in Impaired Loans | 1,065 | 596 | ||
Recorded Investment without a Specific Reserve | 1,065 | 596 | ||
Recorded Investment with a Specific Reserve | 0 | 0 | ||
Related Specific Reserve | 0 | 0 | ||
Average Recorded Investment | 700 | 939 | ||
Interest Income Recognized | 2 | 6 | ||
Home equity loans and lines | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 509 | 539 | ||
Total Recorded Investment in Impaired Loans | 342 | 381 | ||
Recorded Investment without a Specific Reserve | 342 | 381 | ||
Recorded Investment with a Specific Reserve | 0 | 0 | ||
Related Specific Reserve | 0 | 0 | ||
Average Recorded Investment | 434 | 418 | ||
Interest Income Recognized | 0 | (1) | ||
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Contractual Principal Balance | 0 | 18 | ||
Total Recorded Investment in Impaired Loans | 0 | 18 | ||
Recorded Investment without a Specific Reserve | 0 | 0 | ||
Recorded Investment with a Specific Reserve | 0 | 18 | ||
Related Specific Reserve | $ 0 | $ 18 | ||
Average Recorded Investment | 36 | 39 | ||
Interest Income Recognized | $ 0 | $ 1 |
ACL for Loans - Prior Period Al
ACL for Loans - Prior Period Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | $ 44,565 | |||
Provision for credit losses | $ 28 | $ 1,575 | 747 | $ 10,397 |
Allowance for credit losses, ending balance | 47,262 | 43,800 | 47,262 | 43,800 |
Allocated to loans individually evaluated for impairment | 4,590 | 4,590 | ||
Allocated to loans collectively evaluated for impairment | 39,245 | 39,245 | ||
Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 50,041 | 42,324 | 44,565 | 33,614 |
Provision for credit losses | (653) | 1,575 | 209 | 10,397 |
Recoveries | 78 | 46 | 213 | 251 |
Less: Charge-offs | 2,204 | 110 | 4,285 | 427 |
Allowance for credit losses, ending balance | 47,262 | 43,835 | 47,262 | 43,835 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 18 | 18 | ||
Allocated to loans collectively evaluated for impairment | 23,618 | 23,618 | ||
Commercial real estate | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 34,008 | 22,477 | 26,755 | 18,338 |
Provision for credit losses | (1,660) | 1,159 | (285) | 5,298 |
Recoveries | 0 | 0 | 39 | 0 |
Less: Charge-offs | 0 | 0 | 1,825 | 0 |
Allowance for credit losses, ending balance | 32,348 | 23,636 | 32,348 | 23,636 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 2,890 | 2,890 | ||
Allocated to loans collectively evaluated for impairment | 7,292 | 7,292 | ||
Commercial and industrial | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 10,800 | 9,763 | 9,516 | 9,129 |
Provision for credit losses | 694 | 489 | 156 | 1,248 |
Recoveries | 19 | 33 | 102 | 207 |
Less: Charge-offs | 2,194 | 103 | 2,443 | 402 |
Allowance for credit losses, ending balance | 9,319 | 10,182 | 9,319 | 10,182 |
Commercial construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 1,651 | 1,651 | ||
Allocated to loans collectively evaluated for impairment | 5,920 | 5,920 | ||
Commercial construction | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 3,777 | 7,498 | 6,129 | 4,149 |
Provision for credit losses | 397 | 73 | 461 | 3,422 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 4,174 | 7,571 | 4,174 | 7,571 |
Residential mortgages | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 0 | 0 | ||
Allocated to loans collectively evaluated for impairment | 1,669 | 1,669 | ||
Residential mortgages | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 843 | 1,728 | 1,530 | 1,195 |
Provision for credit losses | (4) | (59) | 4 | 474 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 839 | 1,669 | 839 | 1,669 |
Home equity loans and lines | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 0 | 0 | ||
Allocated to loans collectively evaluated for impairment | 550 | 550 | ||
Home equity loans and lines | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 295 | 613 | 467 | 536 |
Provision for credit losses | (32) | (67) | (56) | 4 |
Recoveries | 57 | 4 | 67 | 10 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 320 | 550 | 320 | 550 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allocated to loans individually evaluated for impairment | 31 | 31 | ||
Allocated to loans collectively evaluated for impairment | 196 | 196 | ||
Consumer | Loans Excluding Unfunded Commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses, beginning balance | 318 | 245 | 168 | 267 |
Provision for credit losses | (48) | (20) | (71) | (49) |
Recoveries | 2 | 9 | 5 | 34 |
Less: Charge-offs | 10 | 7 | 17 | 25 |
Allowance for credit losses, ending balance | $ 262 | $ 227 | $ 262 | $ 227 |
ACL for Loans - Prior Period _2
ACL for Loans - Prior Period Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Adversely classified loans to total loans | 1.79% | ||
Non-accrual Loans | $ 27,835 | $ 38,050 | |
The ratio of non-accrual loans to total loans | 0.98% | 1.24% | |
Total Recorded Investment in Impaired Loans | $ 36,464 | $ 48,318 | |
Total non accruing impaired loans | 27,400 | 10,300 | |
Impaired non-accrual loans | 38,000 | ||
Total troubled debt restructure (TDR) loans | 17,600 | 17,700 | |
TDR loans on accrual status | 9,200 | 10,300 | |
TDR loans included in non-performing loans | 8,400 | 7,500 | |
Allowance for credit losses | 47,262 | $ 44,565 | $ 43,800 |
Allowance for loan losses to total loans ratio | 1.45% | 1.39% | |
Pass | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Non-accrual Loans | $ 144 | $ 137 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | |
Leases [Abstract] | ||||
Number of operating leases | 17 | 17 | ||
Number of new operating leases | 1 | |||
Operating lease expense | $ | $ 414 | $ 326 | $ 1,100 | $ 974 |
Weighted average remaining lease term on operating leases | 28 years 9 months 18 days | 26 years 9 months 18 days | 28 years 9 months 18 days | 26 years 9 months 18 days |
Weighted average discount rate for operating leases | 3.61% | 3.80% | 3.61% | 3.80% |
Leases - Leases Maturities (Det
Leases - Leases Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 (three remaining months) | $ 340 | |
2022 | 1,377 | |
2023 | 1,403 | |
2024 | 1,431 | |
2025 | 1,437 | |
Thereafter | 32,982 | |
Total lease payments | 38,970 | |
Less: Imputed interest | 15,222 | |
Total lease liability | $ 23,748 | $ 17,539 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Banking and Thrift, Interest [Abstract] | ||
Non-interest checking | $ 1,404,353 | $ 1,164,908 |
Interest-bearing checking | 713,991 | 599,630 |
Savings | 294,143 | 256,347 |
Money market | 1,344,116 | 1,210,414 |
CDs $250,000 or less | 160,810 | 176,895 |
CDs greater than $250,000 | 53,523 | 68,074 |
Total customer deposits | 3,970,936 | 3,476,268 |
Brokered deposits | 0 | 74,995 |
Total deposits | 3,970,936 | 3,551,263 |
Reciprocal deposits | $ 538,700 | $ 508,400 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Debt - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2015 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Borrowed funds | $ 8,600 | $ 8,600 | $ 4,774 | |||
Subordinated debt | 58,949 | 58,949 | $ 73,744 | |||
Loss on extinguishment of subordinated debt | $ 0 | $ 0 | $ 713 | $ 0 | ||
Fixed-to Floating Rate Subordinated Notes | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of subordinated debt | $ 713 | |||||
Loss on extinguishment of debt related to unamortized issuance costs | 600 | |||||
Loss on extinguishment of subordinated debt related to prepayment penalties | $ 113 |
Borrowed Funds and Subordinat_3
Borrowed Funds and Subordinated Debt - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Balance | ||
Within 12 months | $ 5,585 | $ 4,316 |
Over 5 years | $ 3,015 | $ 458 |
Rate | ||
Within 12 months | 0.30% | 0.33% |
Over 5 years | 1.70% | 0.00% |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities - Fair Value Classification (Details) - Interest-rate swaps - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | $ 36,711 | $ 38,027 |
Asset Derivatives | 825 | 2,286 |
Liability Notional Amount | 36,711 | 38,027 |
Liability Derivatives | 825 | 2,286 |
Pay Fixed, Receive Floating | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Notional Amount | 36,711 | 38,027 |
Liability Derivatives | 825 | 2,286 |
Pay Floating, Receive Fixed | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 36,711 | 38,027 |
Asset Derivatives | 825 | 2,286 |
Liability Notional Amount | 0 | 0 |
Liability Derivatives | $ 0 | 0 |
Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 0 | |
Asset Derivatives | 0 | |
Liability Notional Amount | 75,000 | |
Liability Derivatives | 2,814 | |
Cash Flow Hedging | Pay Fixed, Receive Floating | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 0 | |
Asset Derivatives | 0 | |
Liability Notional Amount | 75,000 | |
Liability Derivatives | $ 2,814 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) | Aug. 31, 2021USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)counterpartyloan | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan |
Derivative [Line Items] | ||||||
Loss on termination of swaps | $ (1,847,000) | $ 0 | $ (1,847,000) | $ 0 | ||
Number of counterparties | counterparty | 1 | |||||
Fair value of swaps in a net liability position | $ 825,000 | $ 825,000 | ||||
Number of participation loans with swap contingent liabilities | loan | 1 | 1 | 1 | |||
Interest-rate swaps | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on interest rate swaps | $ 0 | $ 0 | ||||
Counterparty credit risk exposure on interest rate swaps | 0 | $ 0 | ||||
Collateral posted for interest-rate swaps | $ 1,400,000 | $ 1,400,000 | $ 5,300,000 | |||
Interest-rate swaps | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 75,000,000 | |||||
Loss on termination of swaps | $ (1,800,000) |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to RWA, actual, amount | $ 423,722 | $ 415,999 |
Total capital to RWA, actual, ratio | 0.1416 | 0.1462 |
Total capital to RWA, minimum capital for capital adequacy purposes, amount | $ 239,322 | $ 227,631 |
Total capital to RWA, minimum capacity for adequacy purposes | 0.0800 | 0.0800 |
Tier 1 Capital to RWA, actual, amount | $ 327,220 | $ 306,577 |
Tier 1 capital to RWA, actual, ratio | 0.1094 | 0.1077 |
Tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 179,492 | $ 170,723 |
Tier 1 capital to RWA, minimum capacity for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 capital to AA leverage ratio, actual, amount | $ 327,220 | $ 306,577 |
Tier 1 capital to AA leverage ratio, actual, ratio | 0.0742 | 0.0752 |
Tier 1 capital to AA leverage ratio, minimum capital for capital adequacy purposes, amount | $ 176,474 | $ 163,127 |
Tier 1 capital to AA leverage ratio, minimum capacity for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Common equity tier 1 capital to RWA, actual, amount | $ 327,220 | $ 306,577 |
Common equity tier 1 capital to RWA, actual, ratio | 10.94% | 10.77% |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 134,619 | $ 128,042 |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Basel III additional capital conservation buffer at full phase-in | 2.50% | 2.50% |
The Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to RWA, actual, amount | $ 423,585 | $ 413,862 |
Total capital to RWA, actual, ratio | 0.1416 | 0.1455 |
Total capital to RWA, minimum capital for capital adequacy purposes, amount | $ 239,323 | $ 227,631 |
Total capital to RWA, minimum capacity for adequacy purposes | 0.0800 | 0.0800 |
Total capital to RWA, minimum capital to be well capitalized, amount | $ 299,153 | $ 284,538 |
Total Capital to RWA, minimum capital to be well capitalized, ratio | 0.1000 | 0.1000 |
Tier 1 Capital to RWA, actual, amount | $ 386,032 | $ 378,184 |
Tier 1 capital to RWA, actual, ratio | 0.1290 | 0.1329 |
Tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 179,492 | $ 170,723 |
Tier 1 capital to RWA, minimum capacity for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 capital to RWA, minimum capital to be well capitalized, amount | $ 239,323 | $ 227,631 |
Tier 1 capital to RWA, minimum capital to be well capitalized, ratio | 0.0800 | 0.0800 |
Tier 1 capital to AA leverage ratio, actual, amount | $ 386,032 | $ 378,184 |
Tier 1 capital to AA leverage ratio, actual, ratio | 0.0875 | 0.0927 |
Tier 1 capital to AA leverage ratio, minimum capital for capital adequacy purposes, amount | $ 176,474 | $ 163,127 |
Tier 1 capital to AA leverage ratio, minimum capacity for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 capital to AA leverage ratio, minimum capital to be well capitalized, amount | $ 220,592 | $ 203,909 |
Tier 1 capital to AA leverage ratio, minimum capital to be well capitalized, ratio | 0.0500 | 0.0500 |
Common equity tier 1 capital to RWA, actual, amount | $ 386,032 | $ 378,184 |
Common equity tier 1 capital to RWA, actual, ratio | 12.90% | 13.29% |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 134,619 | $ 128,042 |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity tier 1 capital to RWA, minimum capital to be well capitalized, amount | $ 194,450 | $ 184,950 |
Common equity tier 1 capital to RWA, minimum capital to be well capitalized, ratio | 6.50% | 6.50% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Narrative (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | ||
Basel III additional capital conservation buffer at full phase-in | 2.50% | 2.50% |
Regulatory Capital Requiremen_5
Regulatory Capital Requirements - Basel III Minimum Capital Adequacy Requirements after Full Phase In (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Basel III Minimum for Capital Adequacy Purposes | ||
Total Capital to RWA | 0.0800 | 0.0800 |
Tier 1 Capital to RWA | 0.0600 | 0.0600 |
Tier 1 Capital to AA, or Leverage Ratio | 0.0400 | 0.0400 |
Common equity tier 1 capital to RWA | 4.50% | 4.50% |
Basel III Additional Capital Conservation Buffer | ||
Basel III additional capital conservation buffer at full phase-in | 2.50% | 2.50% |
Tier 1 Capital to AA, or Leverage Ratio, Basel III additional capital conservation buffer at full phase-in | 0.00% | |
Basel III "Adequate" Ratio with Capital Conservation Buffer | ||
Total Capital to RWA | 10.50% | |
Tier 1 Capital to RWA | 8.50% | |
Tier 1 Capital to AA, or Leverage Ratio | 4.00% | |
Common equity tier 1 capital to RWA | 7.00% |
Comprehensive Income (Loss) - R
Comprehensive Income (Loss) - Reconciliation of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net change in fair value, after reclassifications, pre tax | $ (1,547) | $ 162 | $ (10,767) | $ 14,604 |
Net change in fair value , after reclassification, tax | 251 | (45) | 2,238 | (3,061) |
Total other comprehensive (loss) income, net of tax | (1,296) | 117 | (8,529) | 11,543 |
Unrealized gains on debt securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value, before reclassifications, pre tax | (3,401) | 57 | (13,453) | 17,887 |
Change in fair value, before reclassifications, tax benefit (expense) | 772 | (9) | 3,000 | (3,971) |
Change in fair value, before reclassifications, net of tax | (2,629) | 48 | (10,453) | 13,916 |
Reclassifications, pre tax | 0 | 127 | 128 | 227 |
Reclassifications, tax benefit (expense) | 0 | (29) | (29) | (51) |
Reclassifications, net of tax | 0 | 98 | 99 | 176 |
Net change in fair value, after reclassifications, pre tax | (3,401) | (70) | (13,581) | 17,660 |
Net change in fair value , after reclassification, tax | 772 | 20 | 3,029 | (3,920) |
Total other comprehensive (loss) income, net of tax | (2,629) | (50) | (10,552) | 13,740 |
Unrealized losses on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value, before reclassifications, pre tax | (1,061) | 14 | 378 | (3,334) |
Change in fair value, before reclassifications, tax benefit (expense) | 299 | (4) | (106) | 937 |
Change in fair value, before reclassifications, net of tax | (762) | 10 | 272 | (2,397) |
Reclassifications, pre tax | (2,915) | (218) | (2,436) | (278) |
Reclassifications, tax benefit (expense) | 820 | 61 | 685 | 78 |
Reclassifications, net of tax | (2,095) | (157) | (1,751) | (200) |
Net change in fair value, after reclassifications, pre tax | 1,854 | 232 | 2,814 | (3,056) |
Net change in fair value , after reclassification, tax | (521) | (65) | (791) | 859 |
Total other comprehensive (loss) income, net of tax | $ 1,333 | $ 167 | $ 2,023 | $ (2,197) |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 339,317 | $ 316,676 | $ 334,426 | $ 296,641 |
Total other comprehensive (loss) income, net | (1,296) | 117 | (8,529) | 11,543 |
Balance, ending | 346,540 | 325,780 | 346,540 | 325,780 |
Unrealized gains on debt securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | 16,293 | 24,300 | 24,216 | 10,510 |
Total other comprehensive (loss) income, net | (2,629) | (50) | (10,552) | 13,740 |
Balance, ending | 13,664 | 24,250 | 13,664 | 24,250 |
Unrealized losses on cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | (1,333) | (2,364) | (2,023) | 0 |
Total other comprehensive (loss) income, net | 1,333 | 167 | 2,023 | (2,197) |
Balance, ending | 0 | (2,197) | 0 | (2,197) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | 14,960 | 21,936 | 22,193 | 10,510 |
Balance, ending | $ 13,664 | $ 22,053 | $ 13,664 | $ 22,053 |
Supplemental Retirement Plans_2
Supplemental Retirement Plans and Other Post-Retirement Benefit Obligations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)officer | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)officer | Sep. 30, 2020USD ($) | |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of active executive officers under plan | officer | 2 | 2 | ||
Number of former executive officers under plan | officer | 1 | 1 | ||
Term of SERP benefits | 20 years | |||
Benefits paid | $ (69) | $ (69) | $ (207) | $ (207) |
Net periodic benefit cost | 14 | 20 | 45 | 60 |
Remaining expected SERP accrual in current year | 15 | 15 | ||
Supplemental Life Insurance Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 15 | $ 23 | $ 47 | $ 69 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | May 04, 2021shares | Jan. 31, 2021shares | Sep. 30, 2021USD ($)planshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)planshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of individual stock incentive plans | plan | 1 | 1 | |||||
Number of additional shares authorized (in shares) | shares | 400,000 | ||||||
Shares remain available for future grants (in shares) | shares | 506,403 | 506,403 | |||||
Stock-based compensation expense | $ 559 | $ 476 | $ 1,550 | $ 1,409 | |||
Income tax expense (benefit) for stock compensation | (18) | 6 | (57) | 29 | |||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 48 | 46 | $ 140 | 136 | |||
Restricted stock | Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Restricted stock | Non-Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Restricted stock and common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 455 | 374 | $ 1,200 | 1,100 | |||
Common stock in lieu of cash | Non-Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 56 | $ 56 | $ 179 | $ 214 | $ 286 | ||
Number of shares issued in lieu of cash to directors (in shares) | shares | 11,532 | ||||||
Vesting, Year Two | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted, vesting percentage | 50.00% | 50.00% | |||||
Vesting, Year Four | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted, vesting percentage | 50.00% | 50.00% | |||||
Quarterly Average | Common stock in lieu of cash | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair market share price (in usd per share) | $ / shares | $ 24.77 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Information for Options Granted (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 17,580 | 24,208 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term in years | 10 years | 10 years |
Weighted average assumptions used in the fair value model: | ||
Expected volatility | 44.00% | 37.00% |
Weighted average market price on date of grants (in usd per share) | $ 32.73 | $ 28.22 |
Per share weighted average fair value (in usd per share) | $ 11.95 | $ 8.41 |
Weighted Average | Stock options | ||
Weighted average assumptions used in the fair value model: | ||
Expected dividend yield | 3.01% | 3.43% |
Expected life in years | 6 years 6 months | 6 years 6 months |
Risk-free interest-rate | 1.28% | 1.02% |
Fair value as a percentage of market value at grant date | 36.00% | 30.00% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Grants (Details) - Restricted stock - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 53,975 | 59,311 |
Weighted average grant date fair value, stock awards (in usd per share) | $ 32.73 | $ 28.22 |
Non-Employee Director | Two-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 8,109 | 8,295 |
Employee | Four-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 24,307 | 26,015 |
Employee | Performance-based vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 21,559 | 25,001 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding (in shares) | 12,022,610 | 11,916,486 | 11,997,199 | 11,886,811 |
Dilutive shares (in shares) | 42,490 | 10,557 | 41,362 | 21,905 |
Diluted weighted average common shares outstanding (in shares) | 12,065,100 | 11,927,043 | 12,038,561 | 11,908,716 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Antidilutive shares excluded from EPS (in shares) | 55,777 | 102,733 | 77,023 | 75,979 | |
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested participating restricted stock awards (in shares) | 124,631 | 124,631 | 116,174 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Liabilities measured on a recurring basis: | ||
Specific reserve for individually evaluated collateral dependent loans | $ 1,500 | $ 5,800 |
Financial Standby Letter of Credit | ||
Liabilities measured on a recurring basis: | ||
Estimated fair value, amortization period | 1 year | |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | $ 825 | 5,100 |
Fair Value, Measurements, Recurring | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 817,781 | 582,303 |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 1,441 | 746 |
Fair Value, Measurements, Recurring | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 2,164 | 1,905 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 825 | 2,286 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 1,441 | 746 |
Fair Value, Measurements, Recurring | Level 1 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 825 | 5,100 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 817,781 | 582,303 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 2,164 | 1,905 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 825 | 2,286 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 15,612 | |
Collateral dependent loans carried at fair value | 18,733 | |
Fair Value, Measurements, Nonrecurring | Other real estate owned | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 2,400 | |
Fair Value, Measurements, Nonrecurring | Level 1 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 0 | |
Collateral dependent loans carried at fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 1 Inputs | Other real estate owned | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 0 | |
Collateral dependent loans carried at fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 Inputs | Other real estate owned | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 15,612 | |
Collateral dependent loans carried at fair value | $ 18,733 | |
Fair Value, Measurements, Nonrecurring | Level 3 Inputs | Other real estate owned | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | $ 2,400 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 15,612 | |
Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 2,400 | |
Level 3 Inputs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 15,612 | |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent), unobservable input value or range | 15.00% | |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent), unobservable input value or range | 50.00% | |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 15,612 | $ 18,733 |
Level 3 Inputs | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 2,400 | |
Level 3 Inputs | Other real estate owned | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input value or range | 0 | |
Level 3 Inputs | Other real estate owned | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input value or range | 0.20 | |
Level 3 Inputs | Other real estate owned | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 2,400 | $ 0 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Financial assets: | ||
Loans held for sale | $ 413 | $ 371 |
Loans, net | 2,800,848 | 3,029,295 |
Financial liabilities: | ||
Borrowed funds | 8,600 | 4,774 |
Subordinated debt | 58,949 | 73,744 |
Carrying Value | CDs | ||
Financial liabilities: | ||
Deposits | 214,333 | 244,969 |
Carrying Value | Brokered Deposit | ||
Financial liabilities: | ||
Deposits | 74,995 | |
Fair Value | ||
Financial assets: | ||
Loans held for sale | 403 | 372 |
Loans, net | 2,845,236 | 3,064,791 |
Financial liabilities: | ||
Borrowed funds | 8,210 | 4,684 |
Subordinated debt | 58,938 | 76,769 |
Fair Value | CDs | ||
Financial liabilities: | ||
Deposits | 214,860 | 246,498 |
Fair Value | Brokered Deposit | ||
Financial liabilities: | ||
Deposits | 76,652 | |
Level 1 Inputs | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Level 1 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Level 1 Inputs | Brokered Deposit | ||
Financial liabilities: | ||
Deposits | 0 | |
Level 2 Inputs | ||
Financial assets: | ||
Loans held for sale | 403 | 372 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 8,210 | 4,684 |
Subordinated debt | 58,938 | 76,769 |
Level 2 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | 214,860 | 246,498 |
Level 2 Inputs | Brokered Deposit | ||
Financial liabilities: | ||
Deposits | 76,652 | |
Level 3 Inputs | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 2,845,236 | 3,064,791 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Level 3 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | $ 0 | 0 |
Level 3 Inputs | Brokered Deposit | ||
Financial liabilities: | ||
Deposits | $ 0 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental financial data: | ||
Cash paid for: interest | $ 7,198 | $ 11,502 |
Cash paid for: income taxes | 11,074 | 11,883 |
Cash paid for: lease liability | 912 | 921 |
Supplemental schedule of non-cash activity: | ||
Net purchases of investment securities not yet settled | 17,260 | 0 |
Transfer from loans to other real estate owned | 2,400 | 0 |
ROU lease assets: operating leases | $ 7,932 | $ 0 |