Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 09, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-22345 | |
Entity Registrant Name | SHORE BANCSHARES INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-1974638 | |
Entity Address, Address Line One | 18 E. Dover Street | |
Entity Address, City or Town | Easton | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21601 | |
City Area Code | 410 | |
Local Phone Number | 763-7800 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SHBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,123,020 | |
Entity Central Index Key | 0001035092 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 35,423 | $ 37,661 |
Interest-bearing deposits with other banks | 10,404 | 17,838 |
Cash and cash equivalents | 45,827 | 55,499 |
Investment securities: | ||
Available-for-sale, at fair value (amortized cost of 89,846 (2023) and $95,999 (2022)) | 78,069 | 83,587 |
Held to maturity, (net of allowance for credit losses of $163 (2023)) (fair value of $473,296 (2023) and $494,627 (2022)) | 536,970 | 559,455 |
Equity securities, at fair value | 1,245 | 1,233 |
Restricted securities, at cost | 21,208 | 11,169 |
Loans held for sale, at fair value | 6,845 | 4,248 |
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 2,753,223 | 14,922 |
Less: allowance for credit losses | (29,014) | (16,643) |
Loans, net | 2,724,209 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 2,556,107 | |
Less: allowance for credit losses | (16,643) | |
Loans, net | 2,539,464 | |
Premises and equipment, net | 51,036 | 51,488 |
Goodwill | 63,266 | 63,266 |
Other intangible assets, net | 4,671 | 5,547 |
Other real estate owned, net | 179 | 197 |
Mortgage servicing rights, at fair value | 5,466 | 5,275 |
Right-of-use assets | 9,077 | 9,629 |
Cash surrender value on life insurance | 60,150 | 59,218 |
Other assets | 33,413 | 28,001 |
TOTAL ASSETS | 3,641,631 | 3,477,276 |
Deposits: | ||
Noninterest-bearing | 778,963 | 862,015 |
Interest-bearing | 2,158,563 | 2,147,769 |
Total deposits | 2,937,526 | 3,009,784 |
Advances from FHLB - short-term | 276,000 | 40,000 |
Subordinated debt | 43,227 | 43,072 |
Total borrowings | 319,227 | 83,072 |
Lease liabilities | 9,392 | 9,908 |
Other liabilities | 12,346 | 10,227 |
TOTAL LIABILITIES | 3,278,491 | 3,112,991 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 19,907,290 (2023) and 19,864,956 (2022) | 199 | 199 |
Additional paid in capital | 202,008 | 201,494 |
Retained earnings | 169,494 | 171,613 |
Accumulated other comprehensive loss | (8,561) | (9,021) |
TOTAL STOCKHOLDERS' EQUITY | 363,140 | 364,285 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,641,631 | $ 3,477,276 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Available-for-sale securities, Amortized Cost | $ 89,846 | |
Available-for-sale securities, Amortized Cost | 89,846 | $ 95,999 |
Held to maturity, allowance for credit losses | 163 | |
Investment securities held to maturity | 473,296 | 494,627 |
Loans fair value | $ 9,745 | $ 8,437 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares, issued | 19,907,290 | 19,864,956 |
Common stock, shares outstanding | 19,907,290 | 19,864,956 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 32,729 | $ 23,452 | $ 63,557 | $ 45,537 |
Interest and dividends on investment securities: | ||||
Interest and dividends on taxable investment securities | 3,729 | 2,392 | 7,793 | 4,377 |
Interest and dividends on tax-exempt investment securities | 5 | 12 | ||
Interest on deposits with other banks | 170 | 826 | 333 | 1,080 |
Total interest income | 36,633 | 26,670 | 71,695 | 50,994 |
INTEREST EXPENSE | ||||
Interest on deposits | 9,914 | 1,511 | 17,195 | 2,869 |
Interest on short-term borrowings | 3,449 | 4,810 | 2 | |
Interest on long-term borrowings | 776 | 541 | 1,532 | 1,075 |
Total interest expense | 14,139 | 2,052 | 23,537 | 3,946 |
NET INTEREST INCOME | 22,494 | 24,618 | 48,158 | 47,048 |
Provision for credit losses | 667 | 200 | 1,880 | 800 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 21,827 | 24,418 | 46,278 | 46,248 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 1,264 | 1,438 | 2,477 | 2,797 |
Trust and investment fee income | 399 | 447 | 831 | 961 |
Interchange credits | 1,311 | 1,253 | 2,523 | 2,291 |
Mortgage-banking revenue | 1,054 | 1,096 | 2,031 | 2,963 |
Title Company revenue | 186 | 426 | 323 | 749 |
Other noninterest income | 1,080 | 1,173 | 2,443 | 2,118 |
Total noninterest income | 5,294 | 5,833 | 10,628 | 11,879 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 8,955 | 8,898 | 17,639 | 18,460 |
Employee benefits | 2,440 | 2,269 | 5,361 | 4,931 |
Occupancy expense | 1,599 | 1,485 | 3,218 | 3,052 |
Furniture and equipment expense | 477 | 411 | 1,011 | 840 |
Data processing | 1,739 | 1,668 | 3,537 | 3,275 |
Directors' fees | 185 | 210 | 435 | 400 |
Amortization of other intangible assets | 435 | 511 | 876 | 1,028 |
FDIC insurance premium expense | 758 | 429 | 1,129 | 772 |
Other real estate owned expenses, net | 57 | (1) | 51 | |
Legal and professional fees | 959 | 811 | 1,709 | 1,448 |
Merger-related expenses | 1,197 | 241 | 1,888 | 971 |
Other noninterest expenses | 2,864 | 3,104 | 5,699 | 5,198 |
Total noninterest expense | 21,608 | 20,094 | 42,501 | 40,426 |
Income before income taxes | 5,513 | 10,157 | 14,405 | 17,701 |
Income tax expense | 1,495 | 2,658 | 3,930 | 4,589 |
NET INCOME | $ 4,018 | $ 7,499 | $ 10,475 | $ 13,112 |
Earnings per common share - Basic and diluted | ||||
Basic net income per common share | $ 0.20 | $ 0.38 | $ 0.53 | $ 0.66 |
Diluted net income per common share | 0.20 | 0.38 | 0.53 | 0.66 |
Dividends paid per common share | $ 0.12 | $ 0.12 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 4,018 | $ 7,499 | $ 10,475 | $ 13,112 |
Investment securities: | ||||
Unrealized holding (losses)/gains on available-for-sale-securities | (549) | (6,161) | 634 | (9,226) |
Tax effect | 149 | 1,682 | (174) | 2,519 |
Total other comprehensive (loss) income | (400) | (4,479) | 460 | (6,707) |
Comprehensive income | $ 3,618 | $ 3,020 | $ 10,935 | $ 6,405 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid in Capital | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balances at Dec. 31, 2021 | $ 198 | $ 200,473 | $ 149,966 | $ 56 | $ 350,693 | ||
Net income | 5,613 | 5,613 | |||||
Other comprehensive income (loss) | (2,228) | (2,228) | |||||
Common shares issued for employee stock purchase plan | 37 | 37 | |||||
Stock-based compensation | 130 | 130 | |||||
Cash dividends declared | (2,381) | (2,381) | |||||
Balances at Mar. 31, 2022 | 198 | 200,640 | 153,198 | (2,172) | 351,864 | ||
Balances at Dec. 31, 2021 | 198 | 200,473 | 149,966 | 56 | 350,693 | ||
Net income | 13,112 | ||||||
Balances at Jun. 30, 2022 | 198 | 200,914 | 158,316 | (6,651) | 352,777 | ||
Balances at Mar. 31, 2022 | 198 | 200,640 | 153,198 | (2,172) | 351,864 | ||
Net income | 7,499 | 7,499 | |||||
Other comprehensive income (loss) | (4,479) | (4,479) | |||||
Common shares issued for employee stock purchase plan | 102 | 102 | |||||
Stock-based compensation | 172 | 172 | |||||
Cash dividends declared | (2,381) | (2,381) | |||||
Balances at Jun. 30, 2022 | 198 | 200,914 | 158,316 | (6,651) | 352,777 | ||
Balances (Accounting Standards Update 2016-13) at Dec. 31, 2022 | $ (7,818) | $ (7,818) | |||||
Balances at Dec. 31, 2022 | 199 | 201,494 | 171,613 | (9,021) | 364,285 | ||
Net income | 6,457 | 6,457 | |||||
Other comprehensive income (loss) | 860 | 860 | |||||
Common shares issued for employee stock purchase plan | 87 | 87 | |||||
Stock-based compensation | 155 | 155 | |||||
Cash dividends declared | (2,388) | (2,388) | |||||
Balances at Mar. 31, 2023 | 199 | 201,736 | 167,864 | (8,161) | 361,638 | ||
Balances (Accounting Standards Update 2016-13) at Dec. 31, 2022 | $ (7,818) | $ (7,818) | |||||
Balances at Dec. 31, 2022 | 199 | 201,494 | 171,613 | (9,021) | 364,285 | ||
Net income | 10,475 | ||||||
Balances at Jun. 30, 2023 | 199 | 202,008 | 169,494 | (8,561) | 363,140 | ||
Balances at Mar. 31, 2023 | 199 | 201,736 | 167,864 | (8,161) | 361,638 | ||
Net income | 4,018 | 4,018 | |||||
Other comprehensive income (loss) | (400) | (400) | |||||
Common shares issued for employee stock purchase plan | 102 | 102 | |||||
Stock-based compensation | 170 | 170 | |||||
Cash dividends declared | (2,388) | (2,388) | |||||
Balances at Jun. 30, 2023 | $ 199 | $ 202,008 | $ 169,494 | $ (8,561) | $ 363,140 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 10,475 | $ 13,112 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion of acquisition accounting estimates | (847) | (816) |
Provision for credit losses | 1,880 | 800 |
Depreciation and amortization | 2,744 | 2,901 |
Net amortization of securities | 660 | 781 |
Amortization of debt issuance costs | 61 | 61 |
(Gain) on mortgage banking activities | (1,518) | (1,878) |
Proceeds from sale of mortgage loans held for sale | 47,815 | 104,005 |
Originations of loans held for sale | (49,191) | (72,301) |
Stock-based compensation expense | 325 | 302 |
Deferred income tax (benefit) expense | (743) | 81 |
Loss (Gain) on valuation adjustments on mortgage servicing rights | 40 | (478) |
Valuation adjustments on premises transferred to held for sale | 271 | |
Gain (loss) on sales and valuation adjustments on other real estate owned | (3) | 44 |
Fair value adjustments on loans held for investment, at fair value | (48) | |
Fair value adjustment on equity securities | 3 | 108 |
Bank owned life insurance income | (758) | (410) |
Net changes in: | ||
Accrued interest receivable | 731 | (368) |
Other assets | (2,510) | 304 |
Accrued interest payable | 1,721 | 5 |
Other liabilities | (458) | (3,202) |
Net cash provided by operating activities | 10,650 | 43,051 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal payments of investment securities available for sale | 6,019 | 12,778 |
Proceeds from maturities and principal payments of investment securities held to maturity | 21,795 | 23,613 |
Purchases of securities held to maturity | (78,468) | |
Purchases of equity securities | (15) | (7) |
Purchase of restricted securities | (23,979) | (5,735) |
Net change in loans | (196,213) | (143,947) |
Purchases of premises and equipment | (1,768) | (1,720) |
Proceeds from sales of other real estate owned | 21 | 394 |
Improvements to other real estate owned | (34) | |
Redemption of restricted securities | 13,940 | |
Purchases of bank owned life insurance | (174) | (10,092) |
Proceeds from disposal of premises held for sale | 721 | |
Net cash (used in) investing activities | (179,653) | (203,218) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Noninterest-bearing deposits | (83,052) | (38,375) |
Interest-bearing deposits | 10,970 | 26,704 |
Short-term borrowings | 236,000 | (4,143) |
Common stock dividends paid | (4,776) | (4,762) |
Issuance of common stock | 189 | 139 |
Net cash provided by (used in) financing activities | 159,331 | (20,437) |
Net (decrease) in cash and cash equivalents | (9,672) | (180,604) |
Cash and cash equivalents at beginning of period | 55,499 | 583,613 |
Cash and cash equivalents at end of period | 45,827 | 403,009 |
Supplemental cash flows information: | ||
Interest paid | 21,836 | 4,101 |
Income taxes paid | 6,372 | 2,261 |
Recognition (remeasurement of) lease liabilities arising from right-of-use assets | (5) | (678) |
Transfers from loans to other real estate owned | 69 | |
Unrealized gain (loss) on securities available for sale | 634 | $ (9,226) |
Transfer of premises to held for sale and included in other assets | $ 750 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at June 30, 2023, the consolidated results of income and comprehensive income for the three and six months ended June 30, 2023 and 2022, changes in stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022, have been included. All such adjustments were of a normal recurring nature. The amounts as of December 31, 2022 were derived from the 2022 audited financial statements. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”). For purposes of comparability, certain immaterial reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries, Shore United Bank, N.A. (the “Bank”) and Mid-Maryland Title Company, Inc. (the “Title Company”). Pending Recent Accounting Standards ASU No. 2022-03 - In June 2022, the (FASB) issued (ASU) No. 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. |
Adoption of Accounting Standard
Adoption of Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Adoption of Accounting Standards | |
Adoption of Accounting Standards | Note 2 – Adoption of Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Updates (ASU) 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief,” ASU 2019-10, “Financial instruments – Credit losses (Topic 326), Derivatives and hedging (Topic 815), and Leases (Topic 842) – Effective dates,” ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” ASU 2020-02, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842),” ASU 2020-03, “Codification Improvements to Financial Instruments” and ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures” (collectively, ASC 326). The significant impacts of adopting these standards and related updates to the Company’s accounting policies are discussed below. ASC 326 requires entities to estimate an allowance for credit losses (ACL) on certain types of financial instruments measured at amortized cost using a current expected credit losses (CECL) methodology, replacing the incurred loss methodology from prior GAAP. It also applies to unfunded commitments to extend credit, including loan commitments, standby letters of credit, and other similar instruments. The impairment model for available-for-sale debt securities was modified and ASC 326 also provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Additionally, the measurement principles for modifications of loans to borrowers experiencing financial difficulty were modified, including how the ACL is measured for such loans. The amendments of ASC 326, upon adoption, were applied on a modified retrospective basis, by recording an increase in the reported balance of loans and the allowance for credit losses on loans, an increase in the liability for credit losses on commitments to extend credit and reducing total equity of both the Company and the Bank. As a result of adopting ASC 326, the Company recorded a decrease to opening retained earnings, net of taxes, of approximately $7.8 million. ASC 326 also replaced the Company’s previous accounting policies for purchased credit-impaired (PCI) loans and troubled-debt restructurings (TDRs). With the adoption of ASC 326, loans previously designated as PCI loans were designated as purchased loans with credit deterioration (PCD loans). The Company adopted ASC 326 using the prospective transition approach for PCD loans that were previously identified as PCI and accounted for under ASC 310-30. On January 1, 2023, the Company’s PCD loans were adjusted to reflect the addition of expected credit losses to the amortized cost basis of the loans and a corresponding increase to the ACL. The remaining noncredit discount, which represented the difference between the adjusted amortized cost basis and the outstanding principal balance on PCD loans, will be accreted into interest income over the estimated remaining lives of the loans using the effective interest rate method. The evaluation of the ACL will include PCD loans together with other loans that share similar risk characteristics, rather than using the separate pools that were used under PCI accounting, unless the loans are specifically identified for individual evaluation under our CECL methodology. The adoption of ASC 326 also replaced previous TDR accounting guidance, and the evaluation of the ACL will include loans previously designated as TDRs together with other loans that share similar risk characteristics, unless the loans are specifically identified for individual evaluation under our CECL methodology. The following table shows the impact of the Company's adoption of ASC 326 on loans, the allowance for credit losses, and the Company’s reserve for unfunded commitments: January 1, 2023 As Reported Under Pre-ASC 326 (Dollars in thousands) ASC 326 Adoption Change Total Loans, gross $ 2,556,267 $ 2,556,107 $ 160 Allowance for credit losses (27,434) (16,643) (10,791) Total loans, net $ 2,528,833 $ 2,539,464 $ (10,631) Liabilities: Reserve for Unfunded Commitments $ 581 $ 316 $ 265 The following accounting policies have been updated in connection with the adoption of ASC 326 and apply to periods beginning after December 31, 2022. Accounting policies applying to prior periods are described in the 2022 Annual Report, as discussed above. Investments in Debt Securities Investments in debt securities are classified as either held to maturity, available for sale, or trading, based on management’s intent. Currently, the Company has classified its debt securities within the available for sale and held to maturity classifications. Debt securities purchased with the positive intent and ability to hold to maturity are classified as held to maturity and are recorded at amortized cost, net of any ACL. Debt securities not classified as held to maturity are classified as available for sale and are carried at estimated fair value with the corresponding unrealized gains and losses recognized in other comprehensive income (loss). Gains or losses are recognized in net income on the trade date using the amortized cost of the specific security sold. Purchase premiums are recognized in interest income using the effective interest rate method over the period from purchase to maturity or, for callable securities, the earliest call date, and purchase discounts are recognized in the same manner from purchase to maturity. The Company has elected to exclude accrued interest receivable from the amortized cost basis and fair value of its held to maturity and available for sale debt securities and has included such accrued interest of $2.1 million at June 30, 2023 within the other assets line item of the Consolidated Balance Sheets. The Company estimates an ACL for held to maturity debt securities on a collective basis by major security type and standard credit rating. Certain securities in our held to maturity securities portfolio are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. With respect to these securities, we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The estimate of an ACL on our held to maturity securities that are not guaranteed by the U.S. government considers historical credit loss information and severity of loss in the event of default and leverages external data. No ACL is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. An ACL on held to maturity debt securities that do not share common risk characteristics with our collective portfolio are individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows and the recorded amortized cost basis of the security. For debt securities available for sale, impairment is recognized in its entirety in net income if either (i) we intend to sell the security or (ii) it is more-likely-than-not that we will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery, the Company evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an allowance for credit losses is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the specific security’s amortized cost basis exceeds its fair value. Changes in the allowance for credit losses are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities available for sale not resulting from credit losses are recorded in other comprehensive income (loss). The Company regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Loans Held for Investment The Company’s recorded investment in loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally is reported at the unpaid principal balances adjusted for charges-offs, unearned discounts, any deferred fees or costs on originated loans, and the allowance for credit losses. The Company has elected to exclude accrued interest receivable from the amortized cost basis of its loans held for investment and has included such accrued interest of $6.6 million at June 30, 2023 within the other assets Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition. In the case of loans that have experienced more than insignificant deterioration in credit quality since origination as of the acquisition date, the loan’s amortized cost basis is increased above estimated fair value by the amount of expected credit losses as of the acquisition date, and a corresponding allowance for credit losses is also recorded. Any remaining non-credit discount or premium for such purchased loans with credit deterioration (PCD loans) and any fair value discount or premium for non-PCD loans is accreted or amortized as an adjustment to yield over the estimated lives of the loans using the level-yield method. A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain. Any accrued interest receivable on loans placed on nonaccrual status is reversed by an adjustment to interest income. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Balance Sheets when they are funded. In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans – Construction loans are offered primarily to builders and individuals to finance the construction of single-family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. ACL on Loans Held for Investment An ACL is estimated on loans held for investment, excluding loans carried at fair value. The ACL on loans is established through charges to earnings in the form of a provision for credit losses. Loan losses are charged against the ACL for the difference between the carrying value of the loan and the estimated net realizable value or fair value of the collateral, if collateral dependent, when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance represents management’s current estimate of expected credit losses over the contractual term of loans held for investment, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No ACL is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. The methodology for estimating the amount reported in the ACL is the sum of two main components, an allowance assessed on a collective basis for pools of loans that share similar risk characteristics and an allowance assessed on individual loans that do not share similar risk characteristics with other loans . Cash flow projections and estimated expected losses on loans which share common risk characteristics are based in part on forecasts of the national unemployment rate that are reasonable and supportable over a twelve month period and incorporated into the estimate of expected credit losses using a statistical regression analysis. For periods beyond those for which reasonable and supportable forecasts are available, projections are based on a reversion of the national unemployment rate from the last forecast to a historical average level over the following twelve months. Management’s estimate of the allowance for credit losses on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the quantitative loss estimation process. Factors considered by management include changes in general market, economic and business conditions; the nature and volume of the loan portfolio; the volume and severity of delinquencies and adversely classified loan balances and the value of underlying collateral; and other factors as deemed necessary and appropriate. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Reserve for Unfunded Commitments The Company records a reserve, reported in other liabilities, for expected credit losses on commitments to extend credit that are not unconditionally cancelable by the Company. The reserve for unfunded commitments is measured based on the principles utilized in estimating the allowance for credit losses on loans and an estimate of the amount of unfunded commitments expected to be advanced. Changes in the reserve for unfunded commitments are recorded through the provision for credit losses. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – Earnings Per Share Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of potential common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share: For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except per share data) 2023 2022 2023 2022 Net Income $ 4,018 $ 7,499 $ 10,475 $ 13,112 Weighted average shares outstanding - Basic and Diluted 19,903 19,847 19,895 19,838 Earnings per common share - Basic and Diluted $ 0.20 $ 0.38 $ 0.53 $ 0.66 There were no potentially dilutive shares outstanding during the three and six months ended June 30, 2023 and 2022. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investment Securities [Abstract] | |
Investment Securities | Note 4 – Investment Securities On January 1, 2023, the Company adopted ASC 326, which made changes to accounting for available for sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell a security prior to maturity. In addition, ASC 326 requires an allowance for credit losses to be recorded on held to maturity debt securities measured at amortized cost. All securities information presented as of June 30, 2023 is in accordance with ASC 326. All securities information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update refer to Note 2. The following table summarizes the activity in the ACL on held-to-maturity securities: Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Provision for credit losses - HTM Debt Securities $ — $ 163 The ACL for held-to-maturity securities was initially determined to be immaterial as of the date of adoption of ASC 326. Upon re-estimation in the first quarter of 2023, an ACL of $163 thousand was recorded based on the results of our evaluation at March 31, 2023. Based on the Company’s current period re-evaluation, no provision for credit losses was recorded for the three months ended June 30, 2023. The following tables provide information on the amortized cost and estimated fair values of debt securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: June 30, 2023 U.S. Government agencies $ 21,465 $ 5 $ 3,408 $ 18,062 Mortgage-backed 66,367 — 8,188 58,179 Other debt securities 2,014 — 186 1,828 Total $ 89,846 $ 5 $ 11,782 $ 78,069 December 31, 2022 U.S. Government agencies $ 21,798 $ 5 $ 3,625 $ 18,178 Mortgage-backed 72,183 2 8,666 63,519 Other debt securities 2,018 — 128 1,890 Total $ 95,999 $ 7 $ 12,419 $ 83,587 No available for sale securities were sold during the three and six months ended June 30, 2023 and 2022. Gross Gross Estimated Allowance Amortized Unrealized Unrealized Fair for credit (Dollars in thousands) Cost Gains Losses Value losses Held-to-maturity securities: June 30, 2023 U.S. Government agencies $ 144,882 $ — $ 13,035 $ 131,847 $ — Mortgage-backed 379,779 — 49,407 330,372 — States and political subdivisions 1,472 39 30 1,481 — Other debt securities 11,000 — 1,404 9,596 163 Total $ 537,133 $ 39 $ 63,876 $ 473,296 $ 163 December 31, 2022 U.S. Government agencies $ 148,097 $ — $ 13,601 $ 134,496 $ — Mortgage-backed 398,884 — 50,464 348,420 — States and political subdivisions 1,474 35 28 1,481 — Other debt securities 11,000 — 770 10,230 — Total $ 559,455 $ 35 $ 64,863 $ 494,627 $ — Equity securities with an aggregate fair value of $1.2 million at June 30, 2023 and $1.2 million at December 31, 2022 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $(3) thousand for the six months ended June 30, 2023 and $(108) thousand for the six months ended June 30, 2022, respectively. Credit Quality Information The Company monitors the credit quality of held-to-maturity securities through credit ratings provided by Standard & Poor’s Rating Services and Moody’s Investor Services. Credit ratings express opinions about the credit quality of a security, and are updated at each quarter end. Investment grade securities are rated BBB- or higher by S&P and Baa3 or higher by Moody’s and are generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade, which are labeled as speculative grade by the rating agencies, are considered to have distinctively higher credit risk than investment grade securities. There were no speculative grade held-to-maturity securities at June 30, 2023 or December 31, 2022. Held-to-maturity securities that are not rated are agency mortgage-backed securities sponsored by US government agencies, as well as direct obligations of the agencies, with the remainder being subordinated debt of other financial institutions. The following table shows the amortized cost of held-to-maturity securities based on their lowest publicly available credit rating as of June 30, 2023. June 30, 2023 Investment Grade (Dollars in thousands) Aaa Aa1 A3 Baa1 Baa2 Baa3 NR Total U.S. Government agencies $ 137,359 $ — $ — $ — $ — $ — $ 7,523 $ 144,882 Mortgage-backed — — — — — — 379,779 379,779 States and political subdivisions — 1,472 — — — — — 1,472 Other debt securities — — 4,000 4,000 500 500 2,000 11,000 Total Held-to Maturity Securities $ 137,359 $ 1,472 $ 4,000 $ 4,000 $ 500 $ 500 $ 389,302 $ 537,133 The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2023 Available-for-sale securities: U.S. Government agencies $ 952 $ 5 $ 16,705 $ 3,403 $ 17,657 $ 3,408 Mortgage-backed 1,128 29 57,051 8,159 58,179 8,188 Other debt securities — — 1,828 186 1,828 186 Total $ 2,080 $ 34 $ 75,584 $ 11,748 $ 77,664 $ 11,782 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2022 Available-for-sale securities: U.S. Government agencies $ 1,165 $ 4 $ 16,585 $ 3,621 $ 17,750 $ 3,625 Mortgage-backed 29,125 2,409 34,167 6,257 63,292 8,666 Other debt securities 1,890 128 — — 1,890 128 Total $ 32,180 $ 2,541 $ 50,752 $ 9,878 $ 82,932 $ 12,419 Held-to-maturity securities: U.S. Government agencies $ 67,332 $ 2,786 $ 67,163 $ 10,815 $ 134,495 $ 13,601 Mortgage-backed 148,771 9,402 199,649 41,062 348,420 50,464 States and political subdivisions 780 28 — — 780 28 Other debt securities 8,091 409 2,139 361 10,230 770 Total $ 224,974 $ 12,625 $ 268,951 $ 52,238 $ 493,925 $ 64,863 There were one hundred sixteen All held-to-maturity and available for sale securities were current with no securities past due or on nonaccrual as of June 30, 2023. The Company has securities which have been pledged as collateral for obligations to federal, state, and local government agencies, and other purpose as required or permitted by law, or sold under agreements to repurchase. At June 30, 2023 the amortized cost of pledged available-for-sale securities was $65.5 million and $166.2 million of pledged held to maturity securities. The comparable amounts for December 31, 2022 were $83.3 million and $19.2 million, respectively. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2023. Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 30 $ 30 $ 1,019 $ 1,009 Due after one year through five years 8,771 8,345 123,636 114,964 Due after five years through ten years 36,753 32,325 58,643 52,809 Due after ten years 44,292 37,369 353,835 304,514 Total $ 89,846 $ 78,069 $ 537,133 $ 473,296 The maturity dates for debt securities are determined using contractual maturity dates. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 5 – Loans and Allowance for Credit Losses On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the most significant accounting policies that the Company follows see Note 2 – Adoption of Accounting Standards and Note 1 of the 2022 Annual Report. All loan information presented as of June 30, 2023 is in accordance with ASC 326. All loan information presented as of December 31, 2022, or a prior date is presented in accordance with previously applicable GAAP. The Company makes residential mortgage, commercial and consumer loans to customers primarily in Anne Arundel County, Baltimore County, Howard County, Kent County, Queen Anne’s County, Caroline County, Talbot County, Dorchester County and Worcester County in Maryland, Kent and Sussex County, Delaware and in Accomack County, Virginia. The following table provides information about the principal classes of the loan portfolio at June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Construction $ 220,228 $ 246,319 Residential real estate 938,151 810,497 Commercial real estate 1,130,346 1,065,409 Commercial 138,459 147,856 Consumer 326,039 286,026 Total loans 2,753,223 2,556,107 Allowance for credit losses (29,014) (16,643) Total loans, net $ 2,724,209 $ 2,539,464 Loans are stated at their principal amount outstanding net of any purchase premiums/discounts, deferred fees and costs. Included in loans were deferred costs, net of fees, of $2.0 million and $1.4 million at June 30, 2023 and December 31, 2022. At June 30, 2023 and December 31, 2022, included in total loans were $332.4 million and $372.2 million in loans, acquired as part of the acquisition of Severn Bancorp, Inc. (“Severn”), effective October 31, 2021. These balances were presented net of the related discount which totaled $5.7 million and $6.7 million at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023, the Bank was servicing $352.3 million in loans for the Federal National Mortgage Association and $78.0 million in loans for Freddie Mac. The following table provides information on nonaccrual loans by loan class as of June 30, 2023. Nonaccrual Nonaccrual Loans past due with no with an 90 days or more allowance for allowance for and still (Dollars in thousands) credit loss credit loss accruing June 30, 2023 Nonaccrual loans: Construction $ 173 $ — $ 79 Residential real estate 2,602 131 250 Commercial real estate 368 — 721 Commercial 156 — — Consumer 27 24 — Total $ 3,326 $ 155 $ 1,050 Interest income $ — $ — $ 2 The overall quality of the Bank’s loan portfolio is primarily assessed using the Bank’s risk-grading scale. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators are adjusted based on management’s judgment during the quarterly review process. Loans are graded on a scale of one to ten. Ratings 1 thru 6 – Pass - Ratings 1 thru 6 have asset risks ranging from excellent-low to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 – Special Mention - These credits have potential weaknesses due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. Special mention loan relationships are reviewed at least quarterly. Rating 8 – Substandard - Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. Substandard loans are the first adversely classified loans on the Bank's watchlist. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the credit loss allowance analysis and/or place the loan on nonaccrual. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. Rating 9 – Doubtful - Doubtful assets have many of the same characteristics of substandard with the exception that the Bank has determined that loss is not only possible but is probable. The amount of loss is not discernible due to factors such as merger, acquisition, or liquidation; a capital injection; a pledge of additional collateral; the sale of assets; or alternative refinancing plans. Credits receiving a doubtful classification are required to be on nonaccrual. These relationships will be reviewed at least quarterly. Rating 10 – Loss – Loss assets are uncollectible or of little value. The following table provides information on loan risk ratings as of June 30, 2023 and gross write-offs during the six months ended June 30, 2023. Revolving Term Loans by Origination Year Revolving converted to (Dollars in thousands) Prior 2019 2020 2021 2022 2023 loans term loans Total June 30, 2023 Construction Pass $ 15,492 $ 7,228 $ 16,242 $ 42,062 $ 103,722 $ 34,080 $ 1,205 $ — $ 220,031 Substandard 185 — — 12 — — — — 197 Total $ 15,677 $ 7,228 $ 16,242 $ 42,074 $ 103,722 $ 34,080 $ 1,205 $ — $ 220,228 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 217,796 $ 35,596 $ 68,945 $ 177,830 $ 232,814 $ 127,464 $ 73,990 $ 321 $ 934,756 Special Mention 41 — — — — 193 — 234 Substandard 2,973 — — — — — 188 — 3,161 Total $ 220,810 $ 35,596 $ 68,945 $ 177,830 $ 232,814 $ 127,464 $ 74,371 $ 321 $ 938,151 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 374,795 $ 105,944 $ 153,693 $ 195,339 $ 208,386 $ 71,276 $ 9,083 $ 1,223 $ 1,119,739 Special Mention 8,421 142 — 1,395 — — — — 9,958 Substandard 649 — — — — — — — 649 Total $ 383,865 $ 106,086 $ 153,693 $ 196,734 $ 208,386 $ 71,276 $ 9,083 $ 1,223 $ 1,130,346 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 16,181 $ 3,927 $ 10,511 $ 33,807 $ 16,906 $ 5,100 $ 49,134 $ 1,541 $ 137,107 Special Mention — — — 457 — — 440 251 1,148 Substandard 156 — — — — — — 48 204 Total $ 16,337 $ 3,927 $ 10,511 $ 34,264 $ 16,906 $ 5,100 $ 49,574 $ 1,840 $ 138,459 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 894 $ 1,517 $ 17,458 $ 88,451 $ 157,030 $ 59,935 $ 702 $ — $ 325,987 Special Mention — — — — — — 2 — 2 Substandard — 26 — — 23 — 1 — 50 Total $ 894 $ 1,543 $ 17,458 $ 88,451 $ 157,053 $ 59,935 $ 705 $ — $ 326,039 Gross Charge-offs $ — $ — $ — $ (4) $ — $ (279) $ — $ (1) $ (284) Total Pass 625,158 154,212 266,849 537,489 718,858 297,855 134,114 3,085 2,737,620 Special Mention 8,462 142 — 1,852 — — 635 251 11,342 Substandard 3,963 26 — 12 23 — 189 48 4,261 Total loans by risk category $ 637,583 $ 154,380 $ 266,849 $ 539,353 $ 718,881 $ 297,855 $ 134,938 $ 3,384 $ 2,753,223 Total gross charge-offs $ — $ — $ — $ (4) $ — $ (279) $ — $ (1) $ (284) The following tables provide information on the aging of the loan portfolio as of June 30, 2023 and December 31, 2022. Accruing 30‑59 days 60‑89 days 90 days or more Total (Dollars in thousands) Current (1) past due past due past due past due Nonaccrual Total June 30, 2023 Construction $ 218,784 $ 683 $ 509 $ 79 $ 1,271 $ 173 $ 220,228 Residential real estate 932,852 574 1,742 250 2,566 2,733 938,151 Commercial real estate 1,128,529 685 43 721 1,449 368 1,130,346 Commercial 138,303 — — — — 156 138,459 Consumer 324,312 1,509 167 — 1,676 51 326,039 Total $ 2,742,780 $ 3,451 $ 2,461 $ 1,050 $ 6,962 $ 3,481 $ 2,753,223 Percent of total loans 99.7 % 0.1 % 0.1 % — % 0.2 % 0.1 % 100.0 % (1) Includes loans measured at fair value of $9.7 million at June 30, 2023. Accruing 30‑59 days 60‑89 days 90 days or more Total (Dollars in thousands) Current (1) past due past due past due past due Nonaccrual PCI Total December 31, 2022 Construction $ 239,990 $ 4,343 $ 1,015 $ 24 $ 5,382 $ 297 $ 650 $ 246,319 Residential real estate 787,070 6,214 891 1,107 8,212 1,259 13,956 810,497 Commercial real estate 1,052,314 369 — 710 1,079 150 11,866 1,065,409 Commercial 147,511 15 — — 15 174 156 147,856 Consumer 285,750 223 11 — 234 28 14 286,026 Total $ 2,512,635 $ 11,164 $ 1,917 $ 1,841 $ 14,922 $ 1,908 $ 26,642 $ 2,556,107 Percent of total loans 98.3 % 0.4 % 0.1 % 0.1 % 0.6 % 0.1 % 1.0 % 100.0 % (1) Includes loans measured at fair value of $8.4 million at December 31, 2022. The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three and six months ended June 30, 2023 and June 30, 2022. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer (1) Total For three months ended June 30, 2023 Allowance for credit losses: Beginning Balance $ 2,689 $ 8,747 $ 9,858 $ 1,921 $ 5,249 $ 28,464 Charge-offs — — — — (177) (177) Recoveries 4 3 — 1 119 127 Net (charge-offs) recoveries 4 3 — 1 (58) (50) Provision (307) 401 409 34 63 600 Ending Balance $ 2,386 $ 9,151 $ 10,267 $ 1,956 $ 5,254 $ 29,014 (1) Gross charge-offs of consumer loans for the three months ended June 30, 2023 included $172 of demand deposit overdrafts. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2022 Allowance for credit losses: Beginning Balance $ 2,857 $ 2,575 $ 4,500 $ 1,835 $ 2,932 $ 14,699 Charge-offs — (4) (6) (26) (111) (147) Recoveries 4 73 555 20 79 731 Net (charge-offs) recoveries 4 69 549 (6) (32) 584 Provision 484 134 (608) (148) 338 200 Ending Balance $ 3,345 $ 2,778 $ 4,441 $ 1,681 $ 3,238 $ 15,483 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer (1) Total For the six months ended June 30, 2023 Allowance for credit losses: Beginning Balance $ 2,973 $ 2,622 $ 4,899 $ 1,652 $ 4,497 $ 16,643 Impact of ASC326 Adoption 1,222 4,974 3,742 401 452 10,791 Charge-offs — — — — (284) (284) Recoveries 7 34 — 8 165 214 Net (charge-offs) recoveries 7 34 — 8 (119) (70) Provision (1,816) 1,521 1,626 (105) 424 1,650 Ending Balance $ 2,386 $ 9,151 $ 10,267 $ 1,956 $ 5,254 $ 29,014 (1) Gross charge-offs of consumer loans for the six months ended June 30, 2023 included $279 of demand deposit overdrafts. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For the six months ended June 30, 2022 Allowance for credit losses: Beginning Balance $ 2,454 $ 2,858 $ 4,598 $ 2,070 $ 1,964 $ 13,944 Charge-offs — (4) (6) (25) (220) (255) Recoveries 7 119 705 25 138 994 Net (charge-offs) recoveries 7 115 699 — (82) 739 Provision 884 (195) (856) (389) 1,356 800 Ending Balance $ 3,345 $ 2,778 $ 4,441 $ 1,681 $ 3,238 $ 15,483 There were no modifications to loans for borrowers experiencing financial difficulty (“BEFD”) during the three and six months ending June 30, 2023. The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment. June 30, 2023 (Dollars in thousands) Real Estate Collateral Other Collateral Total Construction $ 252 $ — $ 252 Residential real estate 3,219 — 3,219 Commercial real estate 1,239 — 1,239 Commercial — 156 156 Consumer — 51 51 Total $ 4,710 $ 207 $ 4,917 The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended June 30, 2023. Foreclosure Proceedings There were $39 thousand of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of June 30, 2023 and $263 thousand as of December 31, 2022, respectively. There were no residential real estate properties included in the balance of other real estate owned at June 30, 2023 and 1 residential real estate property totaling $18 thousand at December 31, 2022. Prior to the adoption of ASC 326 The following table provides information about all loans acquired from Severn as of December 31, 2022. December 31, 2022 Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Outstanding principal balance $ 29,620 $ 349,262 $ 378,882 Carrying amount Construction $ 650 $ 18,761 $ 19,411 Residential real estate 13,956 116,118 130,074 Commercial real estate 11,866 174,278 186,144 Commercial 156 35,687 35,843 Consumer 14 697 711 Total loans $ 26,642 $ 345,541 $ 372,183 The following table presents a summary of the change in the accretable yield on PCI loans acquired from Severn. For the Six Months Ended (Dollars in thousands) June 30, 2022 Accretable yield, beginning of period $ 5,367 Accretion (788) Reclassification of nonaccretable difference due to improvement in expected cash flows 325 Other changes, net 237 Accretable yield, end of period $ 5,141 The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2022. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2022 Loans individually evaluated for impairment $ 331 $ 5,081 $ 2,540 $ 174 $ 28 $ 8,154 Loans collectively evaluated for impairment 236,901 791,460 1,051,003 147,526 285,984 2,512,874 Acquired loans - PCI 650 13,956 11,866 156 14 26,642 Total loans $ 237,882 $ 810,497 $ 1,065,409 $ 147,856 $ 286,026 $ 2,547,670 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 127 $ — $ — $ — $ 127 Loans collectively evaluated for impairment 2,973 2,495 4,899 1,652 4,497 16,516 Total allowance $ 2,973 $ 2,622 $ 4,899 $ 1,652 $ 4,497 $ 16,643 (1) Excludes loans measured at fair value of $8.4 million at December 31, 2022. The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2022. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal. Recorded Recorded June 30, 2022 Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2022 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 314 $ 322 $ — Residential real estate 1,363 1,259 — — 1,487 1,482 — Commercial real estate 159 150 — — 740 823 — Commercial 359 174 — — 208 265 — Consumer 29 28 — — 31 52 — Total $ 2,207 $ 1,908 $ — $ — $ 2,780 $ 2,944 $ — Impaired accruing TDRs: Construction $ 10 $ 10 $ — $ — $ 18 $ 20 $ — Residential real estate 2,849 1,176 1,539 127 2,773 3,221 56 Commercial real estate 1,680 1,680 — — 2,147 2,431 38 Commercial — — — — — — — Consumer — — — — — 9 — Total $ 4,539 $ 2,866 $ 1,539 $ 127 $ 4,938 $ 5,681 $ 94 Other impaired accruing loans: Construction $ 24 $ 24 $ — $ — $ 265 $ 133 $ 3 Residential real estate 1,107 1,107 — — 5 17 4 Commercial real estate 710 710 — — 524 471 4 Commercial — — — — — 4 1 Consumer — — — — — 19 — Total $ 1,841 $ 1,841 $ — $ — $ 794 $ 644 $ 12 Total impaired loans: Construction $ 331 $ 331 $ — $ — $ 597 $ 475 $ 3 Residential real estate 5,319 3,542 1,539 127 4,265 4,720 60 Commercial real estate 2,549 2,540 — — 3,411 3,725 42 Commercial 359 174 — — 208 269 1 Consumer 29 28 — — 31 80 — Total $ 8,587 $ 6,615 $ 1,539 $ 127 $ 8,512 $ 9,269 $ 106 There were no loans modified and considered to be TDRs during the three and six months ended June 30, 2022. All accruing TDRs were in compliance with their modified terms. Both performing and non-performing TDRs had no further commitments associated with them as of December 31, 2022. There were no TDRs which subsequently defaulted within 12 months of modification for the three and six months ended June 30, 2022. Generally, a loan is considered in default when principal or interest is past due 90 days or more, the loan is placed on nonaccrual, the loan is charged off, or there is a transfer to other real estate owned (OREO) or repossessed assets. The following tables provide information on loan risk ratings as of December 31, 2022. Special (Dollars in thousands) Pass/Performing (1) Pass Mention Substandard Doubtful PCI Total December 31, 2022 Construction $ 231,160 $ 14,212 $ — $ 297 $ — $ 650 $ 246,319 Residential real estate 761,405 32,467 1,239 1,430 — 13,956 810,497 Commercial real estate 929,501 121,711 1,814 517 — 11,866 1,065,409 Commercial 131,084 15,958 484 174 — 156 147,856 Consumer 285,786 196 2 28 — 14 286,026 Total $ 2,338,936 $ 184,544 $ 3,539 $ 2,446 $ — $ 26,642 $ 2,556,107 (1) Includes loans measured at fair value of |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 6 – Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain leases offer the option to extend The following tables present information about the Company’s leases: (Dollars in thousands) June 30, 2023 December 31, 2022 Lease liabilities $ 9,392 $ 9,908 Right-of-use assets $ 9,077 $ 9,629 Weighted average remaining lease term 12.36 years 12.55 years Weighted average discount rate 2.55 % 2.50 % For the Three Months Ended For the Six Months Ended June 30, June 30, Lease cost (in thousands) 2023 2022 2023 2022 Operating lease cost $ 327 $ 332 $ 667 $ 666 Short-term lease cost — — — — Total lease cost $ 327 $ 332 $ 667 $ 666 Cash paid for amounts included in the measurement of lease liabilities $ 310 $ 311 $ 631 $ 621 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of Lease payments due (in thousands) June 30, 2023 Six months ending December 31, 2023 $ 600 2024 1,141 2025 917 2026 916 2027 849 Thereafter 6,584 Total undiscounted cash flows $ 11,007 Discount 1,615 Lease liabilities $ 9,392 Total gross rental income was $291 thousand and $254 thousand for the three months ended June 30, 2023 and 2022, respectively. Total gross rental income was $684 thousand and $526 thousand for the six months ended June 30, 2023 and 2022, respectively. The following table presents our minimum future annual rental income on such leases as of June 30, 2023. As of (In thousands) June 30, 2023 Six months ending December 31, 2023 $ 412 2024 701 2025 719 2026 737 2027 418 Thereafter 1,554 Total $ 4,541 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangibles | Note 7 – Goodwill and Other Intangibles The following table provides information on the significant components of goodwill and other acquired intangible assets at June 30, 2023 and December 31, 2022. June 30, 2023 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 65,476 $ (1,543) $ (667) $ 63,266 — Other intangible assets Amortizable Core deposit intangible $ 10,504 $ — $ (5,833) $ 4,671 2.4 Total other intangible assets $ 10,504 $ — $ (5,833) $ 4,671 December 31, 2022 Weighted Gross Measurement Accumulated Net Average Carrying Period Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Adjustments Charges Amortization Amount (in years) Goodwill $ 65,631 $ (155) $ (1,543) $ (667) $ 63,266 — Other intangible assets Amortizable Core deposit intangible $ 10,504 $ — $ — $ (4,957) $ 5,547 2.6 Total other intangible assets $ 10,504 $ — $ — $ (4,957) $ 5,547 The aggregate amortization expense was $876 thousand for the six months ended June 30, 2023 and $1.0 million for the six months ended June 30, 2022. At June 30, 2023, estimated future remaining amortization for amortizing intangibles within the years ending December 31, is as follows: (Dollars in thousands) Amortization 2023 $ 806 2024 1,376 2025 1,070 2026 765 2027 459 Thereafter 195 Total amortizing intangible assets $ 4,671 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Other Assets | Note 8 – Other Assets The Company had the following other assets at June 30, 2023 and December 31, 2022. June 30, December 31, (Dollars in thousands) 2023 2022 Accrued interest receivable $ 8,778 $ 9,384 Deferred income taxes 10,879 7,357 Prepaid expenses 2,921 2,680 Income taxes receivable 1,301 74 Other assets 9,534 8,506 Total $ 33,413 $ 28,001 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Borrowings/Subordinated Debt [Abstract] | |
Borrowings | Note 9 - Borrowings At June 30, 2023, subordinated debt consisted of $25.0 million of long-term debt issued by the Company in August 2020 and $20.6 million of long-term debt acquired in the acquisition of Severn in 2021. The recorded balance of subordinated debt issued in 2020, net of unamortized issuance costs was $24.7 million at June 30, 2023 and December 31, 2022. The recorded balance of the debt acquired from Severn was $18.5 million at June 30, 2023 and $18.4 million at December 31, 2022, which is presented net of the unamortized fair value adjustment of $2.1 million at June 30, 2023 and $2.2 at December 31, 2022. These obligations mature in 2030 and 2035, respectively. Further information on these obligations is provided in the 2022 Annual Report. At June 30, 2023 and December 31, 2022, the Company had short-term borrowings from the FHLB of $276.0 million and $40.0 million, respectively. The outstanding obligations at June 30, 2023 carried interest rates ranging from 5.07% to 5.32%. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 10 – Other Liabilities The Company had the following other liabilities at June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Accrued interest payable $ 2,710 $ 989 Accrued salaries and wages 1,391 1,360 Accounts payable 249 353 Deferred compensation liability 6,448 5,679 Other liabilities 1,548 1,846 Total $ 12,346 $ 10,227 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 11 - Stock-Based Compensation At the 2016 annual meeting of the Company’s stockholders, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one The following tables provide information on stock-based compensation expense for the three and six months ended June 30, 2023 and 2022. For Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Stock-based compensation expense $ 170 $ 172 $ 325 $ 302 Excess tax benefits (deficiencies) related to stock-based compensation (1) 2 21 45 June 30, (Dollars in thousands) 2023 2022 Unrecognized stock-based compensation expense $ 279 $ 461 Weighted average period unrecognized expense is expected to be recognized 0.8 years 0.7 years The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the six months ended June 30, 2023. 2023 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period 36,860 $ 20.15 Granted 27,550 17.49 Vested (30,199) 20.01 Forfeited (900) 17.49 Nonvested at end of period 33,311 $ 17.63 The fair value of restricted stock awards that vested during the first six months of 2023 and 2022 was $523 thousand and $505 thousand, respectively. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 12 – Derivatives The Company maintains and accounts for derivatives, in the form of interest rate lock commitments (IRLCs) and mandatory forward contracts, in accordance with the FASB guidance on accounting for derivative instruments and hedging activities. We recognize gains and losses through mortgage-banking revenue in the Consolidated Statements of Income. IRLCs on mortgage loans that we intend to sell in the secondary market are considered derivatives. We are exposed to price risk from the time a mortgage loan is locked in until the time the loan is sold. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 14 days to 120 days, however, this period may be longer for construction to permanent loans that are originated with the intent of selling in the secondary market upon permanent financing. For these IRLCs and our closed inventory in loans held for sale, we attempt to protect the Bank from changes in interest rates through the use of to be announced (TBA) securities, which are forward contracts, as well as, to a significantly lesser degree, loan level commitments in the form of best efforts and mandatory forward contracts. These assets and liabilities are included in the Consolidated Balance Sheets in other assets and accrued expenses and other liabilities, respectively. The following table provides information pertaining to the carrying amounts of our derivative financial instruments at June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Notional Estimated Notional Estimated (Dollars in thousands) Amount Fair Value Amount Fair Value Asset - IRLCs $ 15,045 $ 32 $ 4,166 $ 35 Asset - TBA securities 17,100 117 8,750 41 Liability - IRLCs — — 1,150 7 Liability - TBA securities 6,250 19 1,000 6 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 13 – Accumulated Other Comprehensive Income (Loss) The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following tables provide information on the changes in the component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022. Unrealized gains (losses) on available for sale (Dollars in thousands) securities Balance, March 31, 2023 $ (8,161) Other comprehensive income (400) Balance, June 30, 2023 $ (8,561) Balance, March 31, 2022 $ (2,172) Other comprehensive (loss) (4,479) Balance, June 30, 2022 $ (6,651) Unrealized gains (losses) on available for sale (Dollars in thousands) securities Balance, December 31, 2022 $ (9,021) Other comprehensive income 460 Balance, June 30, 2023 $ (8,561) Balance, December 31, 2021 $ 56 Other comprehensive (loss) (6,707) Balance, June 30, 2022 $ (6,651) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 14 – Fair Value Measurements Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities on a recurring basis and to determine fair value disclosures. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Below is a discussion on the Company’s assets measured at fair value on a recurring basis. Investment Securities Available for Sale Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2. Equity Securities Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via on-line resources. Although these securities have readily available fair market values, the Company determined that they should be classified as Level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market. LHFS Loans held for sale (LHFS) are carried at fair value, which is determined based on Mark to Trade (MTT) for allocated/committed loans or Mark to Market (MTM) analysis for unallocated/uncommitted loans based on third-party pricing models (Level 2). LHFI, at fair value Certain loans that have been transferred from LHFS to LHFI have and continue to be accounted for under the fair value option as described in Note 1. These loans are valued based on third-party pricing models using quoted prices for similar loans and adjusted for observable inputs related to the loans. MSRs The fair value of mortgage servicing rights (MSRs) is determined using a valuation model administered by a third party that calculates the present value of estimated future net servicing income (Level 3). The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income, and other ancillary income such as late fees. Management reviews all significant assumptions on a quarterly basis. Mortgage loan prepayment speed, a key assumption in the model, is the annual rate at which borrowers are forecasted to repay their mortgage loan principal. The discount rate used to determine the present value of estimated future net servicing income, another key assumption in the model, is an estimate of the required rate of return investors in the market would require for an asset with similar risk. Both assumptions can, and generally will, change as market conditions and interest rates change. The significant unobservable inputs used in the fair value measurement of the reporting entity’s residential MSRs are prepayment speeds, probability of default, rate of return, and cost of servicing. Significant increases/decreases in any of those inputs in isolation would have resulted in a significantly lower/higher fair value measurement. Generally, a change in the assumption used for prepayment speeds would have been accompanied by a directionally similar change in the markets, i.e. the 10-Year Treasury, and in the probability of default. IRLCs We utilize a third-party specialist model to estimate the fair value of our IRLCs, which are valued based upon mortgage securities (TBA) prices less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3). (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 MSRs (1) $ 5,466 Market Approach Weighted average prepayment speed (PSA) (2) 111 IRLCs - asset $ 32 Market Approach Range of pull through rate 86% - 100% Average pull through rate 98% (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 MSRs (1) $ 5,275 Market Approach Weighted average prepayment speed (PSA) (2) 121 IRLCs - net asset $ 28 Market Approach Range of pull through rate 78% - 100% Average pull through rate 92% (1) The weighted average was calculated with reference to the principal balance of the underlying mortgages. (2) PSA = Public Securities Association Standard Prepayment Model The following table presents activity in MSRs for the three and six months ended June 30, 2023. For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Beginning balance $ 5,310 $ 5,275 Servicing rights resulting from sales of loans 114 231 Valuation adjustment 42 (40) Ending balance $ 5,466 $ 5,466 The following table presents activity in the IRLCs for the three and six months ended June 30, 2023. For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Beginning balance $ 101 $ 28 Valuation adjustment (69) 4 Ending balance $ 32 $ 32 Forward Contracts To avoid interest rate risk, we hedge the open locked/closed position with TBA forward trades. On a regular basis, we allocate disbursed loans to mandatory commitments with government-sponsored enterprises (“GSE”) and private investors delivering the loans within 120 days of origination to maximize interest earnings. For a small percentage of our business, we enter into best efforts forward sales commitments with investors at the time we make an IRLC to a borrower. Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments. The mandatory commitments are derivatives, and we measure and report them at fair value. Fair value is based on the gain or loss that would occur if we were to pair-off the transaction with the investor at the measurement date. This is a level 2 input. We have elected to measure and report best efforts commitments at fair value, when outstanding, using a valuation methodology similar to that used for mandatory commitments. Market assumptions utilized in the fair value measurement of the reporting entity’s residential mortgage derivatives, inclusive of IRLCs, Closed Loan Inventory, TBA derivative trades, and Mandatory Forwards may be subject to investor overlays that may result in a significantly lower fair value measurement. Generally such overlays are announced with advanced notice in order to include the risk adjuster, however there are times when announcements are mandated resulting in a lower fair value measurement. Additionally market assumptions such as spec pool payups may result in a significantly higher fair value measurement at time of loan allocation to specific trades. The following tables present the recorded amount of assets measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022. No assets were transferred from one hierarchy level to another during the first six months of 2023 or 2022. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2023 Assets: Securities available for sale: U.S. Government agencies $ 18,062 $ — $ 18,062 $ — Mortgage-backed 58,179 — 58,179 — Other debt securities 1,828 — 1,828 — 78,069 — 78,069 — Equity securities 1,245 — 1,245 — TBA securities 117 — 117 — LHFS 6,845 — 6,845 — LHFI, at fair value 9,745 — 9,745 — MSRs 5,466 — — 5,466 IRLCs 32 — — 32 Total assets at fair value $ 101,519 $ — $ 96,021 $ 5,498 Liabilities: TBA securities $ 19 $ — $ 19 $ — Total liabilities at fair value $ 19 $ — $ 19 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2022 Assets: Securities available for sale: U.S. Government agencies $ 18,178 $ — $ 18,178 $ — Mortgage-backed 63,519 — 63,519 — Other debt securities 1,890 — 1,890 — 83,587 — 83,587 — Equity securities 1,233 — 1,233 — TBA securities 41 — 41 — LHFS 4,248 — 4,248 — LHFI, at fair value 8,437 — 8,437 — MSRs 5,275 — — 5,275 IRLCs 35 — — 35 Total assets at fair value $ 102,856 $ — $ 97,546 $ 5,310 Liabilities: IRLCs $ 7 $ — $ — $ 7 TBA securities 6 — 6 — Total liabilities at fair value $ 13 $ — $ 6 $ 7 Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. Individually Evaluated Collateral-Dependent Loans Loans for which repayment is substantially expected to be provided through the operation or sale of collateral are considered collateral dependent, and are valued based on the estimated fair value of the collateral, less estimated costs to sell at the reporting date, where applicable. Individually evaluated collateral-dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the factors identified above. Accordingly, collateral dependent loans are classified within Level 3 of the fair value hierarchy. Other Real Estate Owned (Foreclosed Assets) Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods. The following tables set forth the Company’s financial and nonfinancial assets subject to fair value adjustments (impairment) on a nonrecurring basis at June 30, 2023 and December 31, 2022. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (1) June 30, 2023 Nonrecurring measurements: Individually evaluated collateral dependent loans $ 890 Appraisal of collateral Liquidation expense 10% 10% Other real estate owned $ 179 Appraisal of collateral Appraisal adjustments 0% - 20% (0%) Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (1) December 31, 2022 Nonrecurring measurements: Other real estate owned $ 197 Appraisal of collateral Appraisal adjustments 0% - 20% (2%) (1) The carrying amounts and estimated fair values of the Company’s financial instruments are presented in the following table. Fair values for June 30, 2023 and December 31, 2022 were estimated using an exit price notion. June 30, 2023 December 31, 2022 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 45,827 $ 45,827 $ 55,499 $ 55,499 Level 2 inputs Investment securities available for sale $ 78,069 $ 78,069 $ 83,587 $ 83,587 Investment securities held to maturity 536,970 473,296 559,455 494,626 Equity securities 1,245 1,245 1,233 1,233 Restricted securities 21,208 21,208 11,169 11,169 LHFS 6,845 6,845 4,248 4,248 TBA securities 117 117 41 41 Cash surrender value on life insurance 60,150 60,150 59,218 59,218 Loans, at fair value 9,745 9,745 8,437 8,437 Level 3 inputs Loans, net $ 2,714,464 $ 2,550,457 $ 2,531,027 $ 2,431,808 MSRs 5,466 5,466 5,275 5,275 IRLCs 32 32 35 35 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 778,963 $ 778,963 $ 862,015 $ 862,015 Checking plus interest 694,221 694,221 694,101 694,101 Money market 600,724 600,724 709,132 709,132 Savings 270,884 270,884 319,814 319,814 Club 1,098 1,098 374 374 Certificates of deposit 591,636 583,747 424,348 410,455 Advances from FHLB - short-term 276,000 276,012 40,000 40,002 Subordinated debt 43,227 40,377 43,072 41,193 TBA Securities 19 19 6 6 Level 3 inputs IRLCs — — 7 7 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies In the normal course of business, to meet the financial needs of its customers, the Bank is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The following table provides information on commitments outstanding at June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Commitments to extend credit $ 378,045 $ 406,353 Letters of credit 9,130 8,009 Total $ 387,175 $ 414,362 The Company provides banking services to customers who do business in the cannabis industry. Prior to the second quarter of 2022, the Company restricted these businesses to include only those in the medical-use cannabis industry in the state of Maryland. During the second quarter of 2022, the Company expanded its cannabis banking program to include both medical and adult -use licensees in other states, with an initial offering of the Company’s existing Maryland customers with multi-state operations. While the Company is providing banking services to customers that are engaged in the growing, processing, and sales of cannabis in a manner that complies with applicable state law, such customers engaged in those activities currently violate Federal law. The Company may be deemed to be aiding and abetting illegal activities through the services that it provides to these customers. While we are not aware of any instance of a federally-insured financial institution being subject to such aiding and abetting liability, the strict enforcement of Federal laws regarding cannabis would likely result in the Company’s inability to continue to provide banking services to these customers and the Company could have legal action taken against it by the Federal government, including imprisonment and fines. There is an uncertainty of the potential impact to the Company’s Consolidated Financial Statements if the Federal government takes actions against the Company. As of June 30, 2023, the Company had not accrued an amount for the potential impact of any such actions. Following is a summary of the level of business activities with our cannabis industry customers: ● Deposit and loan balances at June 30, 2023 were approximately $121.8 million, or 4.2% of total deposits, and $59.8 million, or 2.2% of total gross loans, respectively. ● Interest and noninterest income for the six months ended June 30, 2023, were approximately $4.8 million and $549 thousand, respectively. In the normal course of business, the Company may become involved in litigation arising from banking, financial, and other activities. Management, after consultation with legal counsel, does not anticipate that the future liability, if any, arising out of current proceedings will have a material effect on the Company’s financial condition, operating results, or liquidity. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 16 – Revenue Recognition Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Trust and Investment Fee Income Trust and investment fee income are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Title Company Revenue Title Company revenue consists of revenue earned on performing title work for real estate transactions. The revenue is earned when the title work is performed. Payment for such performance obligations generally occurs at the time of the settlement of a real estate transaction. As such settlement is generally within 90 days of the performance of the title work, we recognize the revenue at the time of the settlement. All contract issuance costs are expensed as incurred. We had no contract assets or liabilities at June 30, 2023. Other Noninterest Income Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that rentals and renewals of safe deposit boxes will be recognized on a monthly basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2023 and 2022. For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 1,264 $ 1,438 $ 2,477 $ 2,797 Trust and investment fee income 399 447 831 961 Interchange income 1,311 1,253 2,523 2,291 Title Company revenue 186 426 323 749 Other noninterest income 500 582 945 1,042 Noninterest Income (in-scope of Topic 606) 3,660 4,146 7,099 7,840 Noninterest Income (out-of-scope of Topic 606) 1,634 1,687 3,529 4,039 Total Noninterest Income $ 5,294 $ 5,833 $ 10,628 $ 11,879 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Event [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events On July 3, 2023, the Company announced that it had completed the acquisition, effective July 1, 2023, of The Community Financial Corporation (“TCFC”). Pursuant to the terms of the merger agreement, each outstanding share of TCFC ‘s common stock was converted into the right to receive 2.3287 shares of the Company’s common stock. The value of the total transaction consideration was approximately $153.6 million. The consideration included the issuance of 13,201,693 shares of the Company’s common stock, which had a value of $11.56 per share, which was the closing price of the Company’s common stock on June 30, 2023, the last trading day prior to the consummation of the acquisition. Also included in the total consideration were cash in lieu of any fractional shares, converted share-based payment awards, and debt of TCFC that was effectively settled upon closing. As of the closing, TCFC had more than $2.4 billion in assets and operated ten full-service offices in Maryland and two full-service offices in Virginia. (Dollars in thousands) Purchase Price: Shore Bancshares, Inc common stock paid at closing price of $11.56 as of June 30, 2023 $ 152,612 Effective settlement of pre-existing debt 500 Cash consideration (cash in lieu for fractional shares) 4 Fair value of converted share-based payment awards 499 Total purchase price $ 153,615 Sales of Acquired Securities As of July 24, 2023, the Company sold most of the available-for-sale securities portfolio acquired from TCFC on July 1, 2023, for net proceeds of $430 million and used $380 million of the proceeds to reduce FHLB advances and brokered deposits. Management anticipates these actions will positively impact the return on average assets, net interest margin and the tangible common equity ratios in the third quarter. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at June 30, 2023, the consolidated results of income and comprehensive income for the three and six months ended June 30, 2023 and 2022, changes in stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022, have been included. All such adjustments were of a normal recurring nature. The amounts as of December 31, 2022 were derived from the 2022 audited financial statements. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”). For purposes of comparability, certain immaterial reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries, Shore United Bank, N.A. (the “Bank”) and Mid-Maryland Title Company, Inc. (the “Title Company”). |
Pending Recent Accounting Standards | Pending Recent Accounting Standards ASU No. 2022-03 - In June 2022, the (FASB) issued (ASU) No. 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. |
Adoption of Accounting Standa_2
Adoption of Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Adoption of Accounting Standards | |
Schedule of allowance for credit losses, and reserve for unfunded commitments | January 1, 2023 As Reported Under Pre-ASC 326 (Dollars in thousands) ASC 326 Adoption Change Total Loans, gross $ 2,556,267 $ 2,556,107 $ 160 Allowance for credit losses (27,434) (16,643) (10,791) Total loans, net $ 2,528,833 $ 2,539,464 $ (10,631) Liabilities: Reserve for Unfunded Commitments $ 581 $ 316 $ 265 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except per share data) 2023 2022 2023 2022 Net Income $ 4,018 $ 7,499 $ 10,475 $ 13,112 Weighted average shares outstanding - Basic and Diluted 19,903 19,847 19,895 19,838 Earnings per common share - Basic and Diluted $ 0.20 $ 0.38 $ 0.53 $ 0.66 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investment Securities [Abstract] | |
Activity in the ACL on held-to maturity securities | Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Provision for credit losses - HTM Debt Securities $ — $ 163 |
Schedule of Available-for-Sale Securities Reconciliation | Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: June 30, 2023 U.S. Government agencies $ 21,465 $ 5 $ 3,408 $ 18,062 Mortgage-backed 66,367 — 8,188 58,179 Other debt securities 2,014 — 186 1,828 Total $ 89,846 $ 5 $ 11,782 $ 78,069 December 31, 2022 U.S. Government agencies $ 21,798 $ 5 $ 3,625 $ 18,178 Mortgage-backed 72,183 2 8,666 63,519 Other debt securities 2,018 — 128 1,890 Total $ 95,999 $ 7 $ 12,419 $ 83,587 |
Schedule of Held-to-Maturity | Gross Gross Estimated Allowance Amortized Unrealized Unrealized Fair for credit (Dollars in thousands) Cost Gains Losses Value losses Held-to-maturity securities: June 30, 2023 U.S. Government agencies $ 144,882 $ — $ 13,035 $ 131,847 $ — Mortgage-backed 379,779 — 49,407 330,372 — States and political subdivisions 1,472 39 30 1,481 — Other debt securities 11,000 — 1,404 9,596 163 Total $ 537,133 $ 39 $ 63,876 $ 473,296 $ 163 December 31, 2022 U.S. Government agencies $ 148,097 $ — $ 13,601 $ 134,496 $ — Mortgage-backed 398,884 — 50,464 348,420 — States and political subdivisions 1,474 35 28 1,481 — Other debt securities 11,000 — 770 10,230 — Total $ 559,455 $ 35 $ 64,863 $ 494,627 $ — |
Schedule of Amortized Cost of Held-to-Maturity Securities Based on Credit Rating | June 30, 2023 Investment Grade (Dollars in thousands) Aaa Aa1 A3 Baa1 Baa2 Baa3 NR Total U.S. Government agencies $ 137,359 $ — $ — $ — $ — $ — $ 7,523 $ 144,882 Mortgage-backed — — — — — — 379,779 379,779 States and political subdivisions — 1,472 — — — — — 1,472 Other debt securities — — 4,000 4,000 500 500 2,000 11,000 Total Held-to Maturity Securities $ 137,359 $ 1,472 $ 4,000 $ 4,000 $ 500 $ 500 $ 389,302 $ 537,133 |
Available-For-Sale Securities and Held-to-Maturity, Continuous Unrealized Loss Position, Fair Value | Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2023 Available-for-sale securities: U.S. Government agencies $ 952 $ 5 $ 16,705 $ 3,403 $ 17,657 $ 3,408 Mortgage-backed 1,128 29 57,051 8,159 58,179 8,188 Other debt securities — — 1,828 186 1,828 186 Total $ 2,080 $ 34 $ 75,584 $ 11,748 $ 77,664 $ 11,782 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2022 Available-for-sale securities: U.S. Government agencies $ 1,165 $ 4 $ 16,585 $ 3,621 $ 17,750 $ 3,625 Mortgage-backed 29,125 2,409 34,167 6,257 63,292 8,666 Other debt securities 1,890 128 — — 1,890 128 Total $ 32,180 $ 2,541 $ 50,752 $ 9,878 $ 82,932 $ 12,419 Held-to-maturity securities: U.S. Government agencies $ 67,332 $ 2,786 $ 67,163 $ 10,815 $ 134,495 $ 13,601 Mortgage-backed 148,771 9,402 199,649 41,062 348,420 50,464 States and political subdivisions 780 28 — — 780 28 Other debt securities 8,091 409 2,139 361 10,230 770 Total $ 224,974 $ 12,625 $ 268,951 $ 52,238 $ 493,925 $ 64,863 |
Schedule of Securities Debt Maturities | Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 30 $ 30 $ 1,019 $ 1,009 Due after one year through five years 8,771 8,345 123,636 114,964 Due after five years through ten years 36,753 32,325 58,643 52,809 Due after ten years 44,292 37,369 353,835 304,514 Total $ 89,846 $ 78,069 $ 537,133 $ 473,296 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of financing receivables | (Dollars in thousands) June 30, 2023 December 31, 2022 Construction $ 220,228 $ 246,319 Residential real estate 938,151 810,497 Commercial real estate 1,130,346 1,065,409 Commercial 138,459 147,856 Consumer 326,039 286,026 Total loans 2,753,223 2,556,107 Allowance for credit losses (29,014) (16,643) Total loans, net $ 2,724,209 $ 2,539,464 |
Schedule of Non accrual Loans | Nonaccrual Nonaccrual Loans past due with no with an 90 days or more allowance for allowance for and still (Dollars in thousands) credit loss credit loss accruing June 30, 2023 Nonaccrual loans: Construction $ 173 $ — $ 79 Residential real estate 2,602 131 250 Commercial real estate 368 — 721 Commercial 156 — — Consumer 27 24 — Total $ 3,326 $ 155 $ 1,050 Interest income $ — $ — $ 2 |
Schedule of financing receivable credit quality indicators | Revolving Term Loans by Origination Year Revolving converted to (Dollars in thousands) Prior 2019 2020 2021 2022 2023 loans term loans Total June 30, 2023 Construction Pass $ 15,492 $ 7,228 $ 16,242 $ 42,062 $ 103,722 $ 34,080 $ 1,205 $ — $ 220,031 Substandard 185 — — 12 — — — — 197 Total $ 15,677 $ 7,228 $ 16,242 $ 42,074 $ 103,722 $ 34,080 $ 1,205 $ — $ 220,228 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 217,796 $ 35,596 $ 68,945 $ 177,830 $ 232,814 $ 127,464 $ 73,990 $ 321 $ 934,756 Special Mention 41 — — — — 193 — 234 Substandard 2,973 — — — — — 188 — 3,161 Total $ 220,810 $ 35,596 $ 68,945 $ 177,830 $ 232,814 $ 127,464 $ 74,371 $ 321 $ 938,151 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 374,795 $ 105,944 $ 153,693 $ 195,339 $ 208,386 $ 71,276 $ 9,083 $ 1,223 $ 1,119,739 Special Mention 8,421 142 — 1,395 — — — — 9,958 Substandard 649 — — — — — — — 649 Total $ 383,865 $ 106,086 $ 153,693 $ 196,734 $ 208,386 $ 71,276 $ 9,083 $ 1,223 $ 1,130,346 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 16,181 $ 3,927 $ 10,511 $ 33,807 $ 16,906 $ 5,100 $ 49,134 $ 1,541 $ 137,107 Special Mention — — — 457 — — 440 251 1,148 Substandard 156 — — — — — — 48 204 Total $ 16,337 $ 3,927 $ 10,511 $ 34,264 $ 16,906 $ 5,100 $ 49,574 $ 1,840 $ 138,459 Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 894 $ 1,517 $ 17,458 $ 88,451 $ 157,030 $ 59,935 $ 702 $ — $ 325,987 Special Mention — — — — — — 2 — 2 Substandard — 26 — — 23 — 1 — 50 Total $ 894 $ 1,543 $ 17,458 $ 88,451 $ 157,053 $ 59,935 $ 705 $ — $ 326,039 Gross Charge-offs $ — $ — $ — $ (4) $ — $ (279) $ — $ (1) $ (284) Total Pass 625,158 154,212 266,849 537,489 718,858 297,855 134,114 3,085 2,737,620 Special Mention 8,462 142 — 1,852 — — 635 251 11,342 Substandard 3,963 26 — 12 23 — 189 48 4,261 Total loans by risk category $ 637,583 $ 154,380 $ 266,849 $ 539,353 $ 718,881 $ 297,855 $ 134,938 $ 3,384 $ 2,753,223 Total gross charge-offs $ — $ — $ — $ (4) $ — $ (279) $ — $ (1) $ (284) Special (Dollars in thousands) Pass/Performing (1) Pass Mention Substandard Doubtful PCI Total December 31, 2022 Construction $ 231,160 $ 14,212 $ — $ 297 $ — $ 650 $ 246,319 Residential real estate 761,405 32,467 1,239 1,430 — 13,956 810,497 Commercial real estate 929,501 121,711 1,814 517 — 11,866 1,065,409 Commercial 131,084 15,958 484 174 — 156 147,856 Consumer 285,786 196 2 28 — 14 286,026 Total $ 2,338,936 $ 184,544 $ 3,539 $ 2,446 $ — $ 26,642 $ 2,556,107 (1) Includes loans measured at fair value of |
Schedule of past due financing receivables | The following tables provide information on the aging of the loan portfolio as of June 30, 2023 and December 31, 2022. Accruing 30‑59 days 60‑89 days 90 days or more Total (Dollars in thousands) Current (1) past due past due past due past due Nonaccrual Total June 30, 2023 Construction $ 218,784 $ 683 $ 509 $ 79 $ 1,271 $ 173 $ 220,228 Residential real estate 932,852 574 1,742 250 2,566 2,733 938,151 Commercial real estate 1,128,529 685 43 721 1,449 368 1,130,346 Commercial 138,303 — — — — 156 138,459 Consumer 324,312 1,509 167 — 1,676 51 326,039 Total $ 2,742,780 $ 3,451 $ 2,461 $ 1,050 $ 6,962 $ 3,481 $ 2,753,223 Percent of total loans 99.7 % 0.1 % 0.1 % — % 0.2 % 0.1 % 100.0 % (1) Includes loans measured at fair value of $9.7 million at June 30, 2023. Accruing 30‑59 days 60‑89 days 90 days or more Total (Dollars in thousands) Current (1) past due past due past due past due Nonaccrual PCI Total December 31, 2022 Construction $ 239,990 $ 4,343 $ 1,015 $ 24 $ 5,382 $ 297 $ 650 $ 246,319 Residential real estate 787,070 6,214 891 1,107 8,212 1,259 13,956 810,497 Commercial real estate 1,052,314 369 — 710 1,079 150 11,866 1,065,409 Commercial 147,511 15 — — 15 174 156 147,856 Consumer 285,750 223 11 — 234 28 14 286,026 Total $ 2,512,635 $ 11,164 $ 1,917 $ 1,841 $ 14,922 $ 1,908 $ 26,642 $ 2,556,107 Percent of total loans 98.3 % 0.4 % 0.1 % 0.1 % 0.6 % 0.1 % 1.0 % 100.0 % (1) Includes loans measured at fair value of $8.4 million at December 31, 2022. |
Schedule of consolidated allowance for credit losses on financing receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer (1) Total For three months ended June 30, 2023 Allowance for credit losses: Beginning Balance $ 2,689 $ 8,747 $ 9,858 $ 1,921 $ 5,249 $ 28,464 Charge-offs — — — — (177) (177) Recoveries 4 3 — 1 119 127 Net (charge-offs) recoveries 4 3 — 1 (58) (50) Provision (307) 401 409 34 63 600 Ending Balance $ 2,386 $ 9,151 $ 10,267 $ 1,956 $ 5,254 $ 29,014 (1) Gross charge-offs of consumer loans for the three months ended June 30, 2023 included $172 of demand deposit overdrafts. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2022 Allowance for credit losses: Beginning Balance $ 2,857 $ 2,575 $ 4,500 $ 1,835 $ 2,932 $ 14,699 Charge-offs — (4) (6) (26) (111) (147) Recoveries 4 73 555 20 79 731 Net (charge-offs) recoveries 4 69 549 (6) (32) 584 Provision 484 134 (608) (148) 338 200 Ending Balance $ 3,345 $ 2,778 $ 4,441 $ 1,681 $ 3,238 $ 15,483 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer (1) Total For the six months ended June 30, 2023 Allowance for credit losses: Beginning Balance $ 2,973 $ 2,622 $ 4,899 $ 1,652 $ 4,497 $ 16,643 Impact of ASC326 Adoption 1,222 4,974 3,742 401 452 10,791 Charge-offs — — — — (284) (284) Recoveries 7 34 — 8 165 214 Net (charge-offs) recoveries 7 34 — 8 (119) (70) Provision (1,816) 1,521 1,626 (105) 424 1,650 Ending Balance $ 2,386 $ 9,151 $ 10,267 $ 1,956 $ 5,254 $ 29,014 (1) Gross charge-offs of consumer loans for the six months ended June 30, 2023 included $279 of demand deposit overdrafts. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For the six months ended June 30, 2022 Allowance for credit losses: Beginning Balance $ 2,454 $ 2,858 $ 4,598 $ 2,070 $ 1,964 $ 13,944 Charge-offs — (4) (6) (25) (220) (255) Recoveries 7 119 705 25 138 994 Net (charge-offs) recoveries 7 115 699 — (82) 739 Provision 884 (195) (856) (389) 1,356 800 Ending Balance $ 3,345 $ 2,778 $ 4,441 $ 1,681 $ 3,238 $ 15,483 |
Schedule of amortized cost basis of collateral-dependent loans | June 30, 2023 (Dollars in thousands) Real Estate Collateral Other Collateral Total Construction $ 252 $ — $ 252 Residential real estate 3,219 — 3,219 Commercial real estate 1,239 — 1,239 Commercial — 156 156 Consumer — 51 51 Total $ 4,710 $ 207 $ 4,917 |
Schedule of loans acquired from severn | December 31, 2022 Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Outstanding principal balance $ 29,620 $ 349,262 $ 378,882 Carrying amount Construction $ 650 $ 18,761 $ 19,411 Residential real estate 13,956 116,118 130,074 Commercial real estate 11,866 174,278 186,144 Commercial 156 35,687 35,843 Consumer 14 697 711 Total loans $ 26,642 $ 345,541 $ 372,183 |
Schedule of PCI loans acquired | For the Six Months Ended (Dollars in thousands) June 30, 2022 Accretable yield, beginning of period $ 5,367 Accretion (788) Reclassification of nonaccretable difference due to improvement in expected cash flows 325 Other changes, net 237 Accretable yield, end of period $ 5,141 |
Schedule of allowance for credit losses on financing receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2022 Loans individually evaluated for impairment $ 331 $ 5,081 $ 2,540 $ 174 $ 28 $ 8,154 Loans collectively evaluated for impairment 236,901 791,460 1,051,003 147,526 285,984 2,512,874 Acquired loans - PCI 650 13,956 11,866 156 14 26,642 Total loans $ 237,882 $ 810,497 $ 1,065,409 $ 147,856 $ 286,026 $ 2,547,670 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 127 $ — $ — $ — $ 127 Loans collectively evaluated for impairment 2,973 2,495 4,899 1,652 4,497 16,516 Total allowance $ 2,973 $ 2,622 $ 4,899 $ 1,652 $ 4,497 $ 16,643 (1) Excludes loans measured at fair value of $8.4 million at December 31, 2022. |
Schedule of impaired financing receivables | Recorded Recorded June 30, 2022 Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2022 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 314 $ 322 $ — Residential real estate 1,363 1,259 — — 1,487 1,482 — Commercial real estate 159 150 — — 740 823 — Commercial 359 174 — — 208 265 — Consumer 29 28 — — 31 52 — Total $ 2,207 $ 1,908 $ — $ — $ 2,780 $ 2,944 $ — Impaired accruing TDRs: Construction $ 10 $ 10 $ — $ — $ 18 $ 20 $ — Residential real estate 2,849 1,176 1,539 127 2,773 3,221 56 Commercial real estate 1,680 1,680 — — 2,147 2,431 38 Commercial — — — — — — — Consumer — — — — — 9 — Total $ 4,539 $ 2,866 $ 1,539 $ 127 $ 4,938 $ 5,681 $ 94 Other impaired accruing loans: Construction $ 24 $ 24 $ — $ — $ 265 $ 133 $ 3 Residential real estate 1,107 1,107 — — 5 17 4 Commercial real estate 710 710 — — 524 471 4 Commercial — — — — — 4 1 Consumer — — — — — 19 — Total $ 1,841 $ 1,841 $ — $ — $ 794 $ 644 $ 12 Total impaired loans: Construction $ 331 $ 331 $ — $ — $ 597 $ 475 $ 3 Residential real estate 5,319 3,542 1,539 127 4,265 4,720 60 Commercial real estate 2,549 2,540 — — 3,411 3,725 42 Commercial 359 174 — — 208 269 1 Consumer 29 28 — — 31 80 — Total $ 8,587 $ 6,615 $ 1,539 $ 127 $ 8,512 $ 9,269 $ 106 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Information about leases | (Dollars in thousands) June 30, 2023 December 31, 2022 Lease liabilities $ 9,392 $ 9,908 Right-of-use assets $ 9,077 $ 9,629 Weighted average remaining lease term 12.36 years 12.55 years Weighted average discount rate 2.55 % 2.50 % For the Three Months Ended For the Six Months Ended June 30, June 30, Lease cost (in thousands) 2023 2022 2023 2022 Operating lease cost $ 327 $ 332 $ 667 $ 666 Short-term lease cost — — — — Total lease cost $ 327 $ 332 $ 667 $ 666 Cash paid for amounts included in the measurement of lease liabilities $ 310 $ 311 $ 631 $ 621 |
Operating lease liabilities | As of Lease payments due (in thousands) June 30, 2023 Six months ending December 31, 2023 $ 600 2024 1,141 2025 917 2026 916 2027 849 Thereafter 6,584 Total undiscounted cash flows $ 11,007 Discount 1,615 Lease liabilities $ 9,392 |
Minimum future annual rental income | As of (In thousands) June 30, 2023 Six months ending December 31, 2023 $ 412 2024 701 2025 719 2026 737 2027 418 Thereafter 1,554 Total $ 4,541 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Components of Goodwill and Other Acquired Intangible Assets | June 30, 2023 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 65,476 $ (1,543) $ (667) $ 63,266 — Other intangible assets Amortizable Core deposit intangible $ 10,504 $ — $ (5,833) $ 4,671 2.4 Total other intangible assets $ 10,504 $ — $ (5,833) $ 4,671 December 31, 2022 Weighted Gross Measurement Accumulated Net Average Carrying Period Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Adjustments Charges Amortization Amount (in years) Goodwill $ 65,631 $ (155) $ (1,543) $ (667) $ 63,266 — Other intangible assets Amortizable Core deposit intangible $ 10,504 $ — $ — $ (4,957) $ 5,547 2.6 Total other intangible assets $ 10,504 $ — $ — $ (4,957) $ 5,547 |
Future Amortization Expense for Amortizable Other Intangible Assets | (Dollars in thousands) Amortization 2023 $ 806 2024 1,376 2025 1,070 2026 765 2027 459 Thereafter 195 Total amortizing intangible assets $ 4,671 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | June 30, December 31, (Dollars in thousands) 2023 2022 Accrued interest receivable $ 8,778 $ 9,384 Deferred income taxes 10,879 7,357 Prepaid expenses 2,921 2,680 Income taxes receivable 1,301 74 Other assets 9,534 8,506 Total $ 33,413 $ 28,001 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | (Dollars in thousands) June 30, 2023 December 31, 2022 Accrued interest payable $ 2,710 $ 989 Accrued salaries and wages 1,391 1,360 Accounts payable 249 353 Deferred compensation liability 6,448 5,679 Other liabilities 1,548 1,846 Total $ 12,346 $ 10,227 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-Based Compensation | For Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Stock-based compensation expense $ 170 $ 172 $ 325 $ 302 Excess tax benefits (deficiencies) related to stock-based compensation (1) 2 21 45 June 30, (Dollars in thousands) 2023 2022 Unrecognized stock-based compensation expense $ 279 $ 461 Weighted average period unrecognized expense is expected to be recognized 0.8 years 0.7 years |
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity | 2023 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period 36,860 $ 20.15 Granted 27,550 17.49 Vested (30,199) 20.01 Forfeited (900) 17.49 Nonvested at end of period 33,311 $ 17.63 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | June 30, 2023 December 31, 2022 Notional Estimated Notional Estimated (Dollars in thousands) Amount Fair Value Amount Fair Value Asset - IRLCs $ 15,045 $ 32 $ 4,166 $ 35 Asset - TBA securities 17,100 117 8,750 41 Liability - IRLCs — — 1,150 7 Liability - TBA securities 6,250 19 1,000 6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on available for sale (Dollars in thousands) securities Balance, March 31, 2023 $ (8,161) Other comprehensive income (400) Balance, June 30, 2023 $ (8,561) Balance, March 31, 2022 $ (2,172) Other comprehensive (loss) (4,479) Balance, June 30, 2022 $ (6,651) Unrealized gains (losses) on available for sale (Dollars in thousands) securities Balance, December 31, 2022 $ (9,021) Other comprehensive income 460 Balance, June 30, 2023 $ (8,561) Balance, December 31, 2021 $ 56 Other comprehensive (loss) (6,707) Balance, June 30, 2022 $ (6,651) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques | (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 MSRs (1) $ 5,466 Market Approach Weighted average prepayment speed (PSA) (2) 111 IRLCs - asset $ 32 Market Approach Range of pull through rate 86% - 100% Average pull through rate 98% (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 MSRs (1) $ 5,275 Market Approach Weighted average prepayment speed (PSA) (2) 121 IRLCs - net asset $ 28 Market Approach Range of pull through rate 78% - 100% Average pull through rate 92% (1) The weighted average was calculated with reference to the principal balance of the underlying mortgages. (2) PSA = Public Securities Association Standard Prepayment Model |
Schedule of Servicing Asset at Fair Value | For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Beginning balance $ 5,310 $ 5,275 Servicing rights resulting from sales of loans 114 231 Valuation adjustment 42 (40) Ending balance $ 5,466 $ 5,466 |
Schedule of Derivative Asset at Fair Value | For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, 2023 June 30, 2023 Beginning balance $ 101 $ 28 Valuation adjustment (69) 4 Ending balance $ 32 $ 32 |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2023 Assets: Securities available for sale: U.S. Government agencies $ 18,062 $ — $ 18,062 $ — Mortgage-backed 58,179 — 58,179 — Other debt securities 1,828 — 1,828 — 78,069 — 78,069 — Equity securities 1,245 — 1,245 — TBA securities 117 — 117 — LHFS 6,845 — 6,845 — LHFI, at fair value 9,745 — 9,745 — MSRs 5,466 — — 5,466 IRLCs 32 — — 32 Total assets at fair value $ 101,519 $ — $ 96,021 $ 5,498 Liabilities: TBA securities $ 19 $ — $ 19 $ — Total liabilities at fair value $ 19 $ — $ 19 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2022 Assets: Securities available for sale: U.S. Government agencies $ 18,178 $ — $ 18,178 $ — Mortgage-backed 63,519 — 63,519 — Other debt securities 1,890 — 1,890 — 83,587 — 83,587 — Equity securities 1,233 — 1,233 — TBA securities 41 — 41 — LHFS 4,248 — 4,248 — LHFI, at fair value 8,437 — 8,437 — MSRs 5,275 — — 5,275 IRLCs 35 — — 35 Total assets at fair value $ 102,856 $ — $ 97,546 $ 5,310 Liabilities: IRLCs $ 7 $ — $ — $ 7 TBA securities 6 — 6 — Total liabilities at fair value $ 13 $ — $ 6 $ 7 |
Fair Value of Assets Measured on Nonrecurring Basis | Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (1) June 30, 2023 Nonrecurring measurements: Individually evaluated collateral dependent loans $ 890 Appraisal of collateral Liquidation expense 10% 10% Other real estate owned $ 179 Appraisal of collateral Appraisal adjustments 0% - 20% (0%) Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (1) December 31, 2022 Nonrecurring measurements: Other real estate owned $ 197 Appraisal of collateral Appraisal adjustments 0% - 20% (2%) (1) |
Schedule of Estimated Fair Values of Financial Assets and Liabilities | June 30, 2023 December 31, 2022 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 45,827 $ 45,827 $ 55,499 $ 55,499 Level 2 inputs Investment securities available for sale $ 78,069 $ 78,069 $ 83,587 $ 83,587 Investment securities held to maturity 536,970 473,296 559,455 494,626 Equity securities 1,245 1,245 1,233 1,233 Restricted securities 21,208 21,208 11,169 11,169 LHFS 6,845 6,845 4,248 4,248 TBA securities 117 117 41 41 Cash surrender value on life insurance 60,150 60,150 59,218 59,218 Loans, at fair value 9,745 9,745 8,437 8,437 Level 3 inputs Loans, net $ 2,714,464 $ 2,550,457 $ 2,531,027 $ 2,431,808 MSRs 5,466 5,466 5,275 5,275 IRLCs 32 32 35 35 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 778,963 $ 778,963 $ 862,015 $ 862,015 Checking plus interest 694,221 694,221 694,101 694,101 Money market 600,724 600,724 709,132 709,132 Savings 270,884 270,884 319,814 319,814 Club 1,098 1,098 374 374 Certificates of deposit 591,636 583,747 424,348 410,455 Advances from FHLB - short-term 276,000 276,012 40,000 40,002 Subordinated debt 43,227 40,377 43,072 41,193 TBA Securities 19 19 6 6 Level 3 inputs IRLCs — — 7 7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Commitments Outstanding | (Dollars in thousands) June 30, 2023 December 31, 2022 Commitments to extend credit $ 378,045 $ 406,353 Letters of credit 9,130 8,009 Total $ 387,175 $ 414,362 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Schedule Of Noninterest Income, Segregated By Revenue Streams In-Scope And Out-Of-Scope Of Topic 606 | For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 1,264 $ 1,438 $ 2,477 $ 2,797 Trust and investment fee income 399 447 831 961 Interchange income 1,311 1,253 2,523 2,291 Title Company revenue 186 426 323 749 Other noninterest income 500 582 945 1,042 Noninterest Income (in-scope of Topic 606) 3,660 4,146 7,099 7,840 Noninterest Income (out-of-scope of Topic 606) 1,634 1,687 3,529 4,039 Total Noninterest Income $ 5,294 $ 5,833 $ 10,628 $ 11,879 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Event [Abstract] | |
Schedule of business acquisition by acquisition | (Dollars in thousands) Purchase Price: Shore Bancshares, Inc common stock paid at closing price of $11.56 as of June 30, 2023 $ 152,612 Effective settlement of pre-existing debt 500 Cash consideration (cash in lieu for fractional shares) 4 Fair value of converted share-based payment awards 499 Total purchase price $ 153,615 |
Adoption of Accounting Standa_3
Adoption of Accounting Standards - Narrative (Details) - USD ($) | Jun. 30, 2023 | Jan. 31, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 169,494,000 | $ (7,800,000) | $ 171,613,000 |
Amount, after allowance for credit loss, of accrued interest | $ 6,600,000 | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | ||
Amount of allowance for credit loss on accrued interest on financing receivable | $ 0 | ||
Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Available for sale debt securities and has included such accrued interest | $ 2,100,000 |
Adoption of Accounting Standa_4
Adoption of Accounting Standards - Reserve for Unfunded Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | $ 2,753,223 | $ 14,922 | ||||||
Less: allowance for credit losses | (29,014) | $ (28,464) | (16,643) | $ (15,483) | $ (14,699) | $ (13,944) | ||
Loans, net | $ 2,724,209 | |||||||
Loan Risk Rating | 2,556,107 | |||||||
Allowance for credit losses | (16,643) | |||||||
Loans, net | 2,539,464 | |||||||
Reserve for Unfunded Commitments | 316 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | $ 2,556,267 | |||||||
Less: allowance for credit losses | (27,434) | |||||||
Loans, net | 2,528,833 | |||||||
Reserve for Unfunded Commitments | $ 581 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Less: allowance for credit losses | $ (10,791) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | $ 160 | |||||||
Less: allowance for credit losses | (10,791) | |||||||
Loans, net | (10,631) | |||||||
Reserve for Unfunded Commitments | $ 265 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 4,018 | $ 6,457 | $ 7,499 | $ 5,613 | $ 10,475 | $ 13,112 |
Weighted average shares outstanding - Basic (in shares) | 19,903 | 19,847 | 19,895 | 19,838 | ||
Weighted average shares outstanding - Diluted (in shares) | 19,903 | 19,847 | 19,895 | 19,838 | ||
Earnings per common share - Basic | $ 0.20 | $ 0.38 | $ 0.53 | $ 0.66 | ||
Earnings per common share - Diluted | $ 0.20 | $ 0.38 | $ 0.53 | $ 0.66 | ||
Potentially dilutive shares outstanding | 0 | 0 | 0 | 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Proceeds from sale and maturity of marketable securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 116 | 116 | |||
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 11,782 | $ 11,782 | $ 12,419 | ||
Debt Securities, available-for-sale, impairment loss | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 10,475 | 13,112 | |||
Equity Securities Fv Ni | 1,245 | 1,245 | 1,233 | ||
Securities past due or on nonaccrual | 0 | 0 | |||
Revision of Prior Period, Change in Accounting Principle, Adjustment | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (3) | $ (108) | |||
Mortgage-backed | |||||
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 8,188 | 8,188 | 8,666 | ||
U.S. Government agencies | |||||
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 3,408 | 3,408 | 3,625 | ||
Other debt securities | |||||
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 186 | $ 186 | $ 128 |
Investment Securities - Activit
Investment Securities - Activity in the ACL on held-to maturity securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Activity in the ACL on held-to maturity securities | |||
Held to maturity, allowance for credit losses | $ 163 | $ 163 | $ 163 |
Provision for credit losses - HTM Debt Securities | $ 0 | $ 163 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, Amortized Cost | $ 89,846 | $ 95,999 | ||
Available-for-sale securities, Amortized Cost | 89,846 | |||
Available-for-sale securities, Gross Unrealized Gains | 5 | 7 | ||
Available-for-sale securities, Gross Unrealized Losses | 11,782 | 12,419 | ||
Available-for-sale, at fair value (amortized cost of 89,846 (2023) and $95,999 (2022)) | 78,069 | 83,587 | ||
Held-to-maturity Securities, Amortized Cost | 537,133 | 559,455 | ||
Held-to-maturity securities, Gross Unrealized Gains | 39 | 35 | ||
Held-to-maturity securities, Gross Unrealized Losses | 63,876 | 64,863 | ||
Held-to-maturity securities, Estimated Fair Value | 473,296 | 494,627 | $ 494,627 | |
Held to maturity, allowance for credit losses | 163 | $ 163 | ||
Equity securities, at fair value | 1,245 | 1,233 | ||
Collateral Pledged | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, Amortized Cost | 65,500 | 83,300 | ||
Held-to-maturity Securities, Amortized Cost | 166,200 | 19,200 | ||
U.S. Government agencies | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, Amortized Cost | 21,798 | |||
Available-for-sale securities, Amortized Cost | 21,465 | |||
Available-for-sale securities, Gross Unrealized Gains | 5 | 5 | ||
Available-for-sale securities, Gross Unrealized Losses | 3,408 | 3,625 | ||
Available-for-sale, at fair value (amortized cost of 89,846 (2023) and $95,999 (2022)) | 18,062 | 18,178 | ||
Held-to-maturity Securities, Amortized Cost | 144,882 | 148,097 | ||
Held-to-maturity securities, Gross Unrealized Losses | 13,035 | 13,601 | ||
Held-to-maturity securities, Estimated Fair Value | 131,847 | 134,496 | ||
States and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Held-to-maturity Securities, Amortized Cost | 1,472 | 1,474 | ||
Held-to-maturity securities, Gross Unrealized Gains | 39 | 35 | ||
Held-to-maturity securities, Gross Unrealized Losses | 30 | 28 | ||
Held-to-maturity securities, Estimated Fair Value | 1,481 | 1,481 | ||
Mortgage-backed | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, Amortized Cost | 72,183 | |||
Available-for-sale securities, Amortized Cost | 66,367 | |||
Available-for-sale securities, Gross Unrealized Gains | 2 | |||
Available-for-sale securities, Gross Unrealized Losses | 8,188 | 8,666 | ||
Available-for-sale, at fair value (amortized cost of 89,846 (2023) and $95,999 (2022)) | 58,179 | 63,519 | ||
Held-to-maturity Securities, Amortized Cost | 379,779 | 398,884 | ||
Held-to-maturity securities, Gross Unrealized Losses | 49,407 | 50,464 | ||
Held-to-maturity securities, Estimated Fair Value | 330,372 | 348,420 | ||
Other debt securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, Amortized Cost | 2,018 | |||
Available-for-sale securities, Amortized Cost | 2,014 | |||
Available-for-sale securities, Gross Unrealized Losses | 186 | 128 | ||
Available-for-sale, at fair value (amortized cost of 89,846 (2023) and $95,999 (2022)) | 1,828 | 1,890 | ||
Held-to-maturity Securities, Amortized Cost | 11,000 | 11,000 | ||
Held-to-maturity securities, Gross Unrealized Losses | 1,404 | 770 | ||
Held-to-maturity securities, Estimated Fair Value | 9,596 | $ 10,230 | ||
Held to maturity, allowance for credit losses | $ 163 |
Investment Securities (Credit Q
Investment Securities (Credit Quality Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | $ 536,970 | $ 559,455 |
Held-to-Maturity, Amortized cost | 537,133 | 559,455 |
Speculative | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 0 | 0 |
Aaa | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 137,359 | |
Aa1 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 1,472 | |
A3 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 4,000 | |
Baa1 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 4,000 | |
Baa2 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 500 | |
Baa3 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 500 | |
NR | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 389,302 | |
U.S. Government agencies | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 144,882 | 148,097 |
U.S. Government agencies | Aaa | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 137,359 | |
U.S. Government agencies | NR | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 7,523 | |
Mortgage-backed | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 379,779 | 398,884 |
Mortgage-backed | NR | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 379,779 | |
States and political subdivisions | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 1,472 | 1,474 |
States and political subdivisions | Aa1 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 1,472 | |
Other debt securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 11,000 | $ 11,000 |
Other debt securities | A3 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 4,000 | |
Other debt securities | Baa1 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 4,000 | |
Other debt securities | Baa2 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 500 | |
Other debt securities | Baa3 | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | 500 | |
Other debt securities | NR | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Held-to-Maturity, Amortized cost | $ 2,000 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 2,080 | $ 32,180 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 34 | 2,541 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 75,584 | 50,752 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 11,748 | 9,878 |
Available-for-sale securities, continuous unrealized loss position, fair value | 77,664 | 82,932 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 11,782 | 12,419 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 224,974 | |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 12,625 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 268,951 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 52,238 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 493,925 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 64,863 | |
Mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,128 | 29,125 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 29 | 2,409 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 57,051 | 34,167 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 8,159 | 6,257 |
Available-for-sale securities, continuous unrealized loss position, fair value | 58,179 | 63,292 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 8,188 | 8,666 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 148,771 | |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 9,402 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 199,649 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 41,062 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 348,420 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 50,464 | |
U.S. Government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 952 | 1,165 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 5 | 4 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 16,705 | 16,585 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 3,403 | 3,621 |
Available-for-sale securities, continuous unrealized loss position, fair value | 17,657 | 17,750 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 3,408 | 3,625 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 67,332 | |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 2,786 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 67,163 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 10,815 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 134,495 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 13,601 | |
Other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,890 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 128 | |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 1,828 | |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 186 | |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,828 | 1,890 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 186 | 128 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 8,091 | |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 409 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value | 2,139 | |
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 361 | |
Held-to-maturity securities, continuous unrealized loss position, fair value | 10,230 | |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 770 | |
States and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 780 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 28 | |
Available-for-sale securities, continuous unrealized loss position, fair value | 780 | |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ 28 |
Investment Securities (Amorti_2
Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Investment Securities [Abstract] | |||
Available for sale, Amortized Cost, Due in one year or less | $ 30 | ||
Available for sale, Amortized Cost, Due after one year through five years | 8,771 | ||
Available for sale, Amortized Cost, Due after five years through ten years | 36,753 | ||
Available for sale, Amortized Cost, Due after ten years | 44,292 | ||
Available-for-sale securities, Amortized Cost | 89,846 | $ 95,999 | |
Available for sale, Estimated Fair Value, Due in one year or less | 30 | ||
Available for sale, Estimated Fair Value, Due after one year through five years | 8,345 | ||
Available for sale, Estimated Fair Value, Due after five years through ten years | 32,325 | ||
Available for sale, Estimated Fair Value, Due after ten years | 37,369 | ||
Available-for-sale Securities, Debt Securities, Total | 78,069 | 83,587 | |
Held to maturity securities, Amortized Cost, Due in one year or less | 1,019 | ||
Held to maturity securities, Amortized Cost, Due after one year through five years | 123,636 | ||
Held to maturity securities, Amortized Cost, Due after five years through ten years | 58,643 | ||
Held to maturity securities, Amortized Cost, Due after ten years | 353,835 | ||
Held-to-maturity Securities, Amortized Cost | 537,133 | 559,455 | |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 1,009 | ||
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 114,964 | ||
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 52,809 | ||
Held to maturity securities, Estimated Fair Value, Due after ten years | 304,514 | ||
Held-to-maturity Securities, Fair Value, Total | $ 473,296 | $ 494,627 | $ 494,627 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivable, recorded investment, nonaccrual status | $ 3,481 | $ 3,481 | $ 1,908 |
Mortgage loans in process of foreclosure, amount | 18 | ||
Loans and leases receivable, net amount, total | 2,539,464 | ||
Loans, net | 2,724,209 | 2,724,209 | |
Amount of loans modified | 0 | 0 | |
Federal National Mortgage Association | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans, net | 352,300 | 352,300 | |
Federal Home Loan Mortgage Corporation | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans, net | 78,000 | 78,000 | |
Residential real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivable, recorded investment, nonaccrual status | 2,733 | 2,733 | 1,259 |
Mortgage loans in process of foreclosure, amount | 39 | $ 39 | $ 263 |
Number of residential real estate property | item | 0 | 1 | |
Consumer | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivable, recorded investment, nonaccrual status | 51 | $ 51 | $ 28 |
Northwest Bank Branches | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Deferred costs, net of fees | 2,000 | 2,000 | 1,400 |
Severn Bancorp, Inc. | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable Net of Allowance | 332,400 | 332,400 | 372,200 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable, Related Discount | $ 5,700 | $ 5,700 | $ 6,700 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | $ 2,556,107 | |||||
Allowance for credit losses | (16,643) | |||||
Loans, net | 2,539,464 | |||||
Acquired loans - PCI | 26,642 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | $ 2,753,223 | 14,922 | ||||
Less: allowance for credit losses | (29,014) | $ (28,464) | (16,643) | $ (15,483) | $ (14,699) | $ (13,944) |
Loans, net | 2,724,209 | |||||
PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 26,642 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 2,753,223 | |||||
Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance for credit losses | (2,973) | |||||
Acquired loans - PCI | 650 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 220,228 | |||||
Severn Bancorp, Inc. | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Outstanding principal balance | 378,882 | |||||
Acquired loans - PCI | 372,183 | |||||
Severn Bancorp, Inc. | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Outstanding principal balance | 29,620 | |||||
Acquired loans - PCI | 26,642 | |||||
Severn Bancorp, Inc. | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Outstanding principal balance | 349,262 | |||||
Acquired loans - PCI | 345,541 | |||||
Commercial and Residential Real Estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 246,319 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 220,228 | 5,382 | ||||
Less: allowance for credit losses | (2,386) | (2,689) | (2,973) | (3,345) | (2,857) | (2,454) |
Commercial and Residential Real Estate | Construction | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 650 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 220,228 | |||||
Commercial and Residential Real Estate | Severn Bancorp, Inc. | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 19,411 | |||||
Commercial and Residential Real Estate | Severn Bancorp, Inc. | Construction | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 650 | |||||
Commercial and Residential Real Estate | Severn Bancorp, Inc. | Construction | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 18,761 | |||||
Residential real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 810,497 | |||||
Allowance for credit losses | (2,622) | |||||
Acquired loans - PCI | 13,956 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 938,151 | 8,212 | ||||
Less: allowance for credit losses | (9,151) | (8,747) | (2,622) | (2,778) | (2,575) | (2,858) |
Residential real estate | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 13,956 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 938,151 | |||||
Residential real estate | Severn Bancorp, Inc. | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 130,074 | |||||
Residential real estate | Severn Bancorp, Inc. | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 13,956 | |||||
Residential real estate | Severn Bancorp, Inc. | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 116,118 | |||||
Commercial real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 1,065,409 | |||||
Allowance for credit losses | (4,899) | |||||
Acquired loans - PCI | 11,866 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 1,130,346 | 1,079 | ||||
Less: allowance for credit losses | (10,267) | (9,858) | (4,899) | (4,441) | (4,500) | (4,598) |
Commercial real estate | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 11,866 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 1,130,346 | |||||
Commercial real estate | Severn Bancorp, Inc. | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 186,144 | |||||
Commercial real estate | Severn Bancorp, Inc. | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 11,866 | |||||
Commercial real estate | Severn Bancorp, Inc. | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 174,278 | |||||
Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 147,856 | |||||
Allowance for credit losses | (1,652) | |||||
Acquired loans - PCI | 156 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 138,459 | 15 | ||||
Less: allowance for credit losses | (1,956) | (1,921) | (1,652) | (1,681) | (1,835) | (2,070) |
Commercial | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 156 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 138,459 | |||||
Commercial | Severn Bancorp, Inc. | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 35,843 | |||||
Commercial | Severn Bancorp, Inc. | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 156 | |||||
Commercial | Severn Bancorp, Inc. | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 35,687 | |||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 286,026 | |||||
Allowance for credit losses | (4,497) | |||||
Acquired loans - PCI | 14 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | 326,039 | 234 | ||||
Less: allowance for credit losses | (5,254) | $ (5,249) | (4,497) | $ (3,238) | $ (2,932) | $ (1,964) |
Consumer | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 14 | |||||
Loans held for investment ($9,745 (2023) and $8,437 (2022), at fair value) | $ 326,039 | |||||
Consumer | Severn Bancorp, Inc. | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 711 | |||||
Consumer | Severn Bancorp, Inc. | PCI loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | 14 | |||||
Consumer | Severn Bancorp, Inc. | Performing loans acquired | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Acquired loans - PCI | $ 697 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Nonaccrual loans by loan class (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | $ 3,326 |
Nonaccrual with an allowance for credit loss | 155 |
Loans past due 90 days or more and still accruing | 1,050 |
Interest income | 2 |
Construction | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | 173 |
Loans past due 90 days or more and still accruing | 79 |
Residential real estate | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | 2,602 |
Nonaccrual with an allowance for credit loss | 131 |
Loans past due 90 days or more and still accruing | 250 |
Commercial real estate | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | 368 |
Loans past due 90 days or more and still accruing | 721 |
Commercial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | 156 |
Consumer | |
Loans and Leases Receivable Disclosure [Line Items] | |
Nonaccrual with no allowance for credit loss | 27 |
Nonaccrual with an allowance for credit loss | $ 24 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loan risk ratings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing receivable allowance for credit loss | ||
Prior | $ 637,583 | |
2019 | 154,380 | |
2020 | 266,849 | |
2021 | 539,353 | |
2022 | 718,881 | |
2023 | 297,855 | |
Revolving loans | 134,938 | |
Revolving converted to term loans | 3,384 | |
Financing Receivable, before Allowance for Credit Loss, Total | 2,753,223 | $ 14,922 |
Gross charge-offs | ||
2021 | (4) | |
2023 | (279) | |
Revolving converted to term loans | (1) | |
Total | (284) | |
Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 625,158 | |
2019 | 154,212 | |
2020 | 266,849 | |
2021 | 537,489 | |
2022 | 718,858 | |
2023 | 297,855 | |
Revolving loans | 134,114 | |
Revolving converted to term loans | 3,085 | |
Financing Receivable, before Allowance for Credit Loss, Total | 2,737,620 | |
Special Mention | ||
Financing receivable allowance for credit loss | ||
Prior | 8,462 | |
2019 | 142 | |
2021 | 1,852 | |
Revolving loans | 635 | |
Revolving converted to term loans | 251 | |
Financing Receivable, before Allowance for Credit Loss, Total | 11,342 | |
Substandard | ||
Financing receivable allowance for credit loss | ||
Prior | 3,963 | |
2019 | 26 | |
2021 | 12 | |
2022 | 23 | |
Revolving loans | 189 | |
Revolving converted to term loans | 48 | |
Financing Receivable, before Allowance for Credit Loss, Total | 4,261 | |
Construction | ||
Financing receivable allowance for credit loss | ||
Prior | 15,677 | |
2019 | 7,228 | |
2020 | 16,242 | |
2021 | 42,074 | |
2022 | 103,722 | |
2023 | 34,080 | |
Revolving loans | 1,205 | |
Financing Receivable, before Allowance for Credit Loss, Total | 220,228 | |
Construction | Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 15,492 | |
2019 | 7,228 | |
2020 | 16,242 | |
2021 | 42,062 | |
2022 | 103,722 | |
2023 | 34,080 | |
Revolving loans | 1,205 | |
Financing Receivable, before Allowance for Credit Loss, Total | 220,031 | |
Construction | Substandard | ||
Financing receivable allowance for credit loss | ||
Prior | 185 | |
2021 | 12 | |
Financing Receivable, before Allowance for Credit Loss, Total | 197 | |
Residential real estate | ||
Financing receivable allowance for credit loss | ||
Prior | 220,810 | |
2019 | 35,596 | |
2020 | 68,945 | |
2021 | 177,830 | |
2022 | 232,814 | |
2023 | 127,464 | |
Revolving loans | 74,371 | |
Revolving converted to term loans | 321 | |
Financing Receivable, before Allowance for Credit Loss, Total | 938,151 | 8,212 |
Residential real estate | Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 217,796 | |
2019 | 35,596 | |
2020 | 68,945 | |
2021 | 177,830 | |
2022 | 232,814 | |
2023 | 127,464 | |
Revolving loans | 73,990 | |
Revolving converted to term loans | 321 | |
Financing Receivable, before Allowance for Credit Loss, Total | 934,756 | |
Residential real estate | Special Mention | ||
Financing receivable allowance for credit loss | ||
Prior | 41 | |
Revolving loans | 193 | |
Financing Receivable, before Allowance for Credit Loss, Total | 234 | |
Residential real estate | Substandard | ||
Financing receivable allowance for credit loss | ||
Prior | 2,973 | |
Revolving loans | 188 | |
Financing Receivable, before Allowance for Credit Loss, Total | 3,161 | |
Commercial real estate | ||
Financing receivable allowance for credit loss | ||
Prior | 383,865 | |
2019 | 106,086 | |
2020 | 153,693 | |
2021 | 196,734 | |
2022 | 208,386 | |
2023 | 71,276 | |
Revolving loans | 9,083 | |
Revolving converted to term loans | 1,223 | |
Financing Receivable, before Allowance for Credit Loss, Total | 1,130,346 | 1,079 |
Commercial real estate | Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 374,795 | |
2019 | 105,944 | |
2020 | 153,693 | |
2021 | 195,339 | |
2022 | 208,386 | |
2023 | 71,276 | |
Revolving loans | 9,083 | |
Revolving converted to term loans | 1,223 | |
Financing Receivable, before Allowance for Credit Loss, Total | 1,119,739 | |
Commercial real estate | Special Mention | ||
Financing receivable allowance for credit loss | ||
Prior | 8,421 | |
2019 | 142 | |
2021 | 1,395 | |
Financing Receivable, before Allowance for Credit Loss, Total | 9,958 | |
Commercial real estate | Substandard | ||
Financing receivable allowance for credit loss | ||
Prior | 649 | |
Financing Receivable, before Allowance for Credit Loss, Total | 649 | |
Commercial | ||
Financing receivable allowance for credit loss | ||
Prior | 16,337 | |
2019 | 3,927 | |
2020 | 10,511 | |
2021 | 34,264 | |
2022 | 16,906 | |
2023 | 5,100 | |
Revolving loans | 49,574 | |
Revolving converted to term loans | 1,840 | |
Financing Receivable, before Allowance for Credit Loss, Total | 138,459 | 15 |
Commercial | Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 16,181 | |
2019 | 3,927 | |
2020 | 10,511 | |
2021 | 33,807 | |
2022 | 16,906 | |
2023 | 5,100 | |
Revolving loans | 49,134 | |
Revolving converted to term loans | 1,541 | |
Financing Receivable, before Allowance for Credit Loss, Total | 137,107 | |
Commercial | Special Mention | ||
Financing receivable allowance for credit loss | ||
2021 | 457 | |
Revolving loans | 440 | |
Revolving converted to term loans | 251 | |
Financing Receivable, before Allowance for Credit Loss, Total | 1,148 | |
Commercial | Substandard | ||
Financing receivable allowance for credit loss | ||
Prior | 156 | |
Revolving converted to term loans | 48 | |
Financing Receivable, before Allowance for Credit Loss, Total | 204 | |
Consumer | ||
Financing receivable allowance for credit loss | ||
Prior | 894 | |
2019 | 1,543 | |
2020 | 17,458 | |
2021 | 88,451 | |
2022 | 157,053 | |
2023 | 59,935 | |
Revolving loans | 705 | |
Financing Receivable, before Allowance for Credit Loss, Total | 326,039 | $ 234 |
Gross charge-offs | ||
2021 | (4) | |
2023 | (279) | |
Revolving converted to term loans | (1) | |
Total | (284) | |
Consumer | Pass | ||
Financing receivable allowance for credit loss | ||
Prior | 894 | |
2019 | 1,517 | |
2020 | 17,458 | |
2021 | 88,451 | |
2022 | 157,030 | |
2023 | 59,935 | |
Revolving loans | 702 | |
Financing Receivable, before Allowance for Credit Loss, Total | 325,987 | |
Consumer | Special Mention | ||
Financing receivable allowance for credit loss | ||
Revolving loans | 2 | |
Financing Receivable, before Allowance for Credit Loss, Total | 2 | |
Consumer | Substandard | ||
Financing receivable allowance for credit loss | ||
2019 | 26 | |
2022 | 23 | |
Revolving loans | 1 | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 50 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 2,753,223 | $ 14,922 |
Nonaccrual | $ 3,481 | 1,908 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | $ 2,556,107 | |
Percent of total loans, Total past due | 0.60% | |
Percent of total loans, Nonaccrual | 0.10% | 0.10% |
Percent of total loans, Total loans | 100% | |
Loans, net | $ 9,745 | $ 8,437 |
PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 2,753,223 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | $ 26,642 | |
Percent of total loans, Total loans | 100% | 1% |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 2,742,780 | $ 2,512,635 |
Percent of total loans, Current | 99.70% | 98.30% |
Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 6,962 | |
Percent of total loans, Total past due | 0.20% | |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 3,451 | $ 11,164 |
Percent of total loans, Total past due | 0.10% | 0.40% |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 2,461 | $ 1,917 |
Percent of total loans, Total past due | 0.10% | 0.10% |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,050 | $ 1,841 |
Percent of total loans, Total past due | 0.10% | |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 938,151 | $ 8,212 |
Nonaccrual | 2,733 | 1,259 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 810,497 | |
Residential real estate | PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 938,151 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 13,956 | |
Residential real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 932,852 | 787,070 |
Residential real estate | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 2,566 | |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 574 | 6,214 |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,742 | 891 |
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 250 | 1,107 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,130,346 | 1,079 |
Nonaccrual | 368 | 150 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 1,065,409 | |
Commercial real estate | PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,130,346 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 11,866 | |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,128,529 | 1,052,314 |
Commercial real estate | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,449 | |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 685 | 369 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 43 | |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 721 | 710 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 138,459 | 15 |
Nonaccrual | 156 | 174 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 147,856 | |
Commercial | PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 138,459 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 156 | |
Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 138,303 | 147,511 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 15 | |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 326,039 | 234 |
Nonaccrual | 51 | 28 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 286,026 | |
Consumer | PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 326,039 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 14 | |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 324,312 | 285,750 |
Consumer | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,676 | |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,509 | 223 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 167 | 11 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 220,228 | |
Construction | Commercial and Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 220,228 | 5,382 |
Nonaccrual | 173 | 297 |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 246,319 | |
Construction | Commercial and Residential Real Estate | PCI loans acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 220,228 | |
Loans held for investment ($9,526 (2023) and $8,437 (2022), at fair value) | 650 | |
Construction | Commercial and Residential Real Estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 218,784 | 239,990 |
Construction | Commercial and Residential Real Estate | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,271 | |
Construction | Commercial and Residential Real Estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 683 | 4,343 |
Construction | Commercial and Residential Real Estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 509 | 1,015 |
Construction | Commercial and Residential Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 79 | $ 24 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for credit losses allocated to: | ||||
Beginning balance | $ 28,464 | $ 14,699 | $ 16,643 | $ 13,944 |
Charge-offs | (177) | (147) | (284) | (255) |
Recoveries | 127 | 731 | 214 | 994 |
Net (charge-offs) recoveries | (50) | 584 | (70) | 739 |
Provision | 600 | 200 | 1,650 | 800 |
Ending balance | 29,014 | 15,483 | 29,014 | 15,483 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 10,791 | |||
Commercial and Residential Real Estate | Construction | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,689 | 2,857 | 2,973 | 2,454 |
Recoveries | 4 | 4 | 7 | 7 |
Net (charge-offs) recoveries | 4 | 4 | 7 | 7 |
Provision | (307) | 484 | (1,816) | 884 |
Ending balance | 2,386 | 3,345 | 2,386 | 3,345 |
Commercial and Residential Real Estate | Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 1,222 | |||
Residential real estate | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 8,747 | 2,575 | 2,622 | 2,858 |
Charge-offs | (4) | (4) | ||
Recoveries | 3 | 73 | 34 | 119 |
Net (charge-offs) recoveries | 3 | 69 | 34 | 115 |
Provision | 401 | 134 | 1,521 | (195) |
Ending balance | 9,151 | 2,778 | 9,151 | 2,778 |
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 4,974 | |||
Commercial real estate | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 9,858 | 4,500 | 4,899 | 4,598 |
Charge-offs | (6) | (6) | ||
Recoveries | 555 | 705 | ||
Net (charge-offs) recoveries | 549 | 699 | ||
Provision | 409 | (608) | 1,626 | (856) |
Ending balance | 10,267 | 4,441 | 10,267 | 4,441 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 3,742 | |||
Commercial | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 1,921 | 1,835 | 1,652 | 2,070 |
Charge-offs | (26) | (25) | ||
Recoveries | 1 | 20 | 8 | 25 |
Net (charge-offs) recoveries | 1 | (6) | 8 | |
Provision | 34 | (148) | (105) | (389) |
Ending balance | 1,956 | 1,681 | 1,956 | 1,681 |
Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 401 | |||
Consumer | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 5,249 | 2,932 | 4,497 | 1,964 |
Charge-offs | (177) | (111) | (284) | (220) |
Recoveries | 119 | 79 | 165 | 138 |
Net (charge-offs) recoveries | (58) | (32) | (119) | (82) |
Provision | 63 | 338 | 424 | 1,356 |
Ending balance | 5,254 | $ 3,238 | 5,254 | $ 3,238 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 452 | |||
Consumer | Demand Deposit Overdrafts [Member] | ||||
Allowance for credit losses allocated to: | ||||
Charge-offs | $ (172) | $ (279) |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Collateral-dependent Loans) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | $ 2,724,209 |
Real Estate Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 4,710 |
Other Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 207 |
Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 4,917 |
Commercial and Residential Real Estate | Construction | Real Estate Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 252 |
Commercial and Residential Real Estate | Construction | Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 252 |
Residential real estate | Real Estate Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 3,219 |
Residential real estate | Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 3,219 |
Commercial real estate | Real Estate Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 1,239 |
Commercial real estate | Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 1,239 |
Commercial | Other Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 156 |
Commercial | Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 156 |
Consumer | Other Collateral | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | 51 |
Consumer | Collateral Pledged | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing receivables, amortized cost basis | $ 51 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (PCI Loans Acquired) (Details) - Severn Bancorp, Inc. - PCI loans acquired $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, beginning of period | $ 5,367 |
Accretion | (788) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 325 |
Other changes, net | 237 |
Accretable yield, end of period | $ 5,141 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 8,154 | |
Loans collectively evaluated for impairment | 2,512,874 | |
Acquired loans - PCI | 26,642 | |
Total loans | 2,547,670 | |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 127 | |
Loans collectively evaluated for impairment | 16,516 | |
Loans and Leases Receivable, Allowance, Total | 16,643 | |
Loans, net | $ 9,745 | 8,437 |
Construction | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 331 | |
Loans collectively evaluated for impairment | 236,901 | |
Acquired loans - PCI | 650 | |
Total loans | 237,882 | |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 2,973 | |
Loans and Leases Receivable, Allowance, Total | 2,973 | |
Residential real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 5,081 | |
Loans collectively evaluated for impairment | 791,460 | |
Acquired loans - PCI | 13,956 | |
Total loans | 810,497 | |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 127 | |
Loans collectively evaluated for impairment | 2,495 | |
Loans and Leases Receivable, Allowance, Total | 2,622 | |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 2,540 | |
Loans collectively evaluated for impairment | 1,051,003 | |
Acquired loans - PCI | 11,866 | |
Total loans | 1,065,409 | |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 4,899 | |
Loans and Leases Receivable, Allowance, Total | 4,899 | |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 174 | |
Loans collectively evaluated for impairment | 147,526 | |
Acquired loans - PCI | 156 | |
Total loans | 147,856 | |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 1,652 | |
Loans and Leases Receivable, Allowance, Total | 1,652 | |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 28 | |
Loans collectively evaluated for impairment | 285,984 | |
Acquired loans - PCI | 14 | |
Total loans | 286,026 | |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 4,497 | |
Loans and Leases Receivable, Allowance, Total | $ 4,497 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | $ 2,207 |
Recorded investment with no allowance | 1,908 |
Quarter-to-date average recorded investment | 2,780 |
Year-to-date average recorded investment | 2,944 |
Impaired Accruing Restructured Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 4,539 |
Recorded investment with no allowance | 2,866 |
Recorded investment with an allowance | 1,539 |
Related allowance | 127 |
Quarter-to-date average recorded investment | 4,938 |
Year-to-date average recorded investment | 5,681 |
Interest recorded investment | 94 |
Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 1,841 |
Recorded investment with no allowance | 1,841 |
Quarter-to-date average recorded investment | 794 |
Year-to-date average recorded investment | 644 |
Interest recorded investment | 12 |
Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 8,587 |
Recorded investment with no allowance | 6,615 |
Recorded investment with an allowance | 1,539 |
Related allowance | 127 |
Quarter-to-date average recorded investment | 8,512 |
Year-to-date average recorded investment | 9,269 |
Interest recorded investment | 106 |
Residential real estate | Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 1,363 |
Recorded investment with no allowance | 1,259 |
Quarter-to-date average recorded investment | 1,487 |
Year-to-date average recorded investment | 1,482 |
Residential real estate | Impaired Accruing Restructured Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 2,849 |
Recorded investment with no allowance | 1,176 |
Recorded investment with an allowance | 1,539 |
Related allowance | 127 |
Quarter-to-date average recorded investment | 2,773 |
Year-to-date average recorded investment | 3,221 |
Interest recorded investment | 56 |
Residential real estate | Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 1,107 |
Recorded investment with no allowance | 1,107 |
Quarter-to-date average recorded investment | 5 |
Year-to-date average recorded investment | 17 |
Interest recorded investment | 4 |
Residential real estate | Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 5,319 |
Recorded investment with no allowance | 3,542 |
Recorded investment with an allowance | 1,539 |
Related allowance | 127 |
Quarter-to-date average recorded investment | 4,265 |
Year-to-date average recorded investment | 4,720 |
Interest recorded investment | 60 |
Commercial real estate | Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 159 |
Recorded investment with no allowance | 150 |
Quarter-to-date average recorded investment | 740 |
Year-to-date average recorded investment | 823 |
Commercial real estate | Impaired Accruing Restructured Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 1,680 |
Recorded investment with no allowance | 1,680 |
Quarter-to-date average recorded investment | 2,147 |
Year-to-date average recorded investment | 2,431 |
Interest recorded investment | 38 |
Commercial real estate | Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 710 |
Recorded investment with no allowance | 710 |
Quarter-to-date average recorded investment | 524 |
Year-to-date average recorded investment | 471 |
Interest recorded investment | 4 |
Commercial real estate | Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 2,549 |
Recorded investment with no allowance | 2,540 |
Quarter-to-date average recorded investment | 3,411 |
Year-to-date average recorded investment | 3,725 |
Interest recorded investment | 42 |
Commercial | Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 359 |
Recorded investment with no allowance | 174 |
Quarter-to-date average recorded investment | 208 |
Year-to-date average recorded investment | 265 |
Commercial | Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Year-to-date average recorded investment | 4 |
Interest recorded investment | 1 |
Commercial | Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 359 |
Recorded investment with no allowance | 174 |
Quarter-to-date average recorded investment | 208 |
Year-to-date average recorded investment | 269 |
Interest recorded investment | 1 |
Consumer | Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 29 |
Recorded investment with no allowance | 28 |
Quarter-to-date average recorded investment | 31 |
Year-to-date average recorded investment | 52 |
Consumer | Impaired Accruing Restructured Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Year-to-date average recorded investment | 9 |
Consumer | Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Year-to-date average recorded investment | 19 |
Consumer | Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 29 |
Recorded investment with no allowance | 28 |
Quarter-to-date average recorded investment | 31 |
Year-to-date average recorded investment | 80 |
Construction | Commercial and Residential Real Estate | Impaired Nonaccrual Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 297 |
Recorded investment with no allowance | 297 |
Quarter-to-date average recorded investment | 314 |
Year-to-date average recorded investment | 322 |
Construction | Commercial and Residential Real Estate | Impaired Accruing Restructured Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 10 |
Recorded investment with no allowance | 10 |
Quarter-to-date average recorded investment | 18 |
Year-to-date average recorded investment | 20 |
Construction | Commercial and Residential Real Estate | Other Impaired Accruing Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 24 |
Recorded investment with no allowance | 24 |
Quarter-to-date average recorded investment | 265 |
Year-to-date average recorded investment | 133 |
Interest recorded investment | 3 |
Construction | Commercial and Residential Real Estate | Impaired Loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid principal balance | 331 |
Recorded investment with no allowance | 331 |
Quarter-to-date average recorded investment | 597 |
Year-to-date average recorded investment | 475 |
Interest recorded investment | $ 3 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) - contract | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Receivables [Abstract] | ||
Number of contracts | 0 | 0 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses (Troubled Debt Restructurings With Subsequent Default) (Details) - contract | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Receivables [Abstract] | ||
Number of contracts modified as TDRs which subsequently defaulted within 12 months | 0 | 0 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | $ 2,556,107 |
PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 26,642 |
Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 2,338,936 |
Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 184,544 |
Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 3,539 |
Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 2,446 |
Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 26,642 |
Commercial and Residential Real Estate | Construction Loans | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 246,319 |
Commercial and Residential Real Estate | Construction Loans | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 650 |
Commercial and Residential Real Estate | Construction Loans | Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 231,160 |
Commercial and Residential Real Estate | Construction Loans | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 14,212 |
Commercial and Residential Real Estate | Construction Loans | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 297 |
Commercial and Residential Real Estate | Construction Loans | Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 650 |
Residential real estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 810,497 |
Residential real estate | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 13,956 |
Residential real estate | Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 761,405 |
Residential real estate | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 32,467 |
Residential real estate | Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1,239 |
Residential real estate | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1,430 |
Residential real estate | Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 13,956 |
Commercial real estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1,065,409 |
Commercial real estate | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 11,866 |
Commercial real estate | Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 929,501 |
Commercial real estate | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 121,711 |
Commercial real estate | Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1,814 |
Commercial real estate | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 517 |
Commercial real estate | Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 11,866 |
Commercial | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 147,856 |
Commercial | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 156 |
Commercial | Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 131,084 |
Commercial | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 15,958 |
Commercial | Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 484 |
Commercial | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 174 |
Commercial | Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 156 |
Consumer | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 286,026 |
Consumer | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 14 |
Consumer | Pass Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 285,786 |
Consumer | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 196 |
Consumer | Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 2 |
Consumer | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 28 |
Consumer | Doubtful | PCI loans acquired | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | $ 14 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Option to extend lease term | true | |||
H.S. West, LLC [Member] | ||||
Gross rental income | $ 291 | $ 254 | $ 684 | $ 526 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lease liabilities | $ 9,392 | $ 9,908 |
Right-of-use assets | $ 9,077 | $ 9,629 |
Weighted average remaining lease term | 12 years 4 months 9 days | 12 years 6 months 18 days |
Weighted average discount rate | 2.55% | 2.50% |
Leases (Lease cost) (Details)
Leases (Lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 327 | $ 332 | $ 667 | $ 666 |
Total lease cost | 327 | 332 | 667 | 666 |
Cash paid for amounts included in the measurement of lease liabilities | $ 310 | $ 311 | $ 631 | $ 621 |
Leases (Lease Payments Due) (De
Leases (Lease Payments Due) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Six months ending December 31, 2023 | $ 600 | |
2024 | 1,141 | |
2025 | 917 | |
2026 | 916 | |
2027 | 849 | |
Thereafter | 6,584 | |
Total undiscounted cash flows | 11,007 | |
Discount | 1,615 | |
Lease liabilities | $ 9,392 | $ 9,908 |
Leases (Minimum Future Annual R
Leases (Minimum Future Annual Rental Income) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Minimum Future Annual Rental Income | |
Six months ending December 31, 2023 | $ 412 |
2024 | 701 |
2025 | 719 |
2026 | 737 |
2027 | 418 |
Thereafter | 1,554 |
Total | $ 4,541 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Other Intangible Assets [Abstract] | ||||
Amortization of other intangible assets | $ 435 | $ 511 | $ 876 | $ 1,028 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Schedule of Components of Goodwill and Other Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 65,476 | $ 65,631 |
Adjustments | (155) | |
Accumulated Impairment Charges | (1,543) | (1,543) |
Accumulated Amortization | (667) | (667) |
Net carrying amount | 63,266 | 63,266 |
Other intangible assets, Amortizable, Gross Carrying Amount | 10,504 | 10,504 |
Other intangible assets, Amortizable, Accumulated Amortization | (5,833) | (4,957) |
Total amortizing intangible assets | 4,671 | 5,547 |
Intangible Assets, Net (Excluding Goodwill), Total | 5,547 | |
Core deposit intangible | ||
Goodwill and Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 10,504 | 10,504 |
Other intangible assets, Amortizable, Accumulated Amortization | (5,833) | (4,957) |
Total amortizing intangible assets | $ 4,671 | $ 5,547 |
Weighted Average Remaining Life (in years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Future Amortization Expense for Amortizable Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Other Intangible Assets [Abstract] | ||
2023 | $ 806 | |
2024 | 1,376 | |
2025 | 1,070 | |
2026 | 765 | |
2027 | 459 | |
Thereafter | 195 | |
Total amortizing intangible assets | $ 4,671 | $ 5,547 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 8,778 | $ 9,384 |
Deferred income taxes | 10,879 | 7,357 |
Prepaid expenses | 2,921 | 2,680 |
Income taxes receivable | 1,301 | 74 |
Other assets | 9,534 | 8,506 |
Total | $ 33,413 | $ 28,001 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank Advances | Minimum | ||
Short-term Debt [Line Items] | ||
Outstanding obligations interest rates | 5.07% | |
Federal Home Loan Bank Advances | Maximum | ||
Short-term Debt [Line Items] | ||
Outstanding obligations interest rates | 5.32% | |
Subordinated Debt. | ||
Short-term Debt [Line Items] | ||
Principal amount | $ 25 | |
Recorded balance | 24.7 | $ 24.7 |
Unamortized fair value adjustment | 2.1 | 2.2 |
Subordinated Debt. | Severn Bancorp, Inc. | ||
Short-term Debt [Line Items] | ||
Principal amount | 20.6 | |
Recorded balance | 18.5 | 18.4 |
Federal Home Loan Bank Advances | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Total | $ 276 | $ 40 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities [Abstract] | ||
Accrued interest payable | $ 2,710 | $ 989 |
Accrued salaries and wages | 1,391 | 1,360 |
Accounts payable | 249 | 353 |
Deferred compensation liability | 6,448 | 5,679 |
Other liabilities | 1,548 | 1,846 |
Total | $ 12,346 | $ 10,227 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - Equity Plan 2016 - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award description | The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration | 10 years | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other than options, vested, fair value | $ 523 | $ 505 |
Time Based Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized for granting | 750,000 | |
Shares available to be granted | 472,320 | |
Maximum | Time Based Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Minimum | Time Based Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 170 | $ 172 | $ 325 | $ 302 |
Excess tax benefits (deficiencies) related to stock-based compensation | (1) | 2 | 21 | 45 |
Unrecognized stock-based compensation expense | $ 279 | $ 461 | $ 279 | $ 461 |
Weighted average period unrecognized expense is expected to be recognized | 9 months 18 days | 8 months 12 days |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Stock-Based Compensation, RS and RSU Award Activity) (Details) - Equity Plan 2016 - Restricted Stock | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Nonvested at beginning of period (in shares) | shares | 36,860 |
Number of Shares, Granted (in shares) | shares | 27,550 |
Number of Shares, Vested (in shares) | shares | (30,199) |
Number of Shares, Forfeited (in shares) | shares | (900) |
Number of Shares, Nonvested at end of period (in shares) | shares | 33,311 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ / shares | $ 20.15 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 17.49 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 20.01 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 17.49 |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ / shares | $ 17.63 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - Interest Rate Lock Commitments | 6 Months Ended |
Jun. 30, 2023 | |
Minimum | |
Derivatives, Fair Value [Line Items] | |
Period between issuance of loan commitment and closing and sale of loan | 14 days |
Maximum | |
Derivatives, Fair Value [Line Items] | |
Period between issuance of loan commitment and closing and sale of loan | 120 days |
Derivatives (Carrying Amounts o
Derivatives (Carrying Amounts of Derivative Financial Instruments ) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 15,045 | $ 4,166 |
Derivative asset, estimated fair value | 32 | 35 |
Derivative liability, notional amount | 1,150 | |
Derivative liability, estimated fair value | 7 | |
TBA securities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 17,100 | 8,750 |
Derivative asset, estimated fair value | 117 | 41 |
Derivative liability, notional amount | 6,250 | 1,000 |
Derivative liability, estimated fair value | $ 19 | $ 6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (loss) (Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | $ 361,638 | $ 351,864 | $ 364,285 | $ 350,693 |
Other comprehensive income (loss) | (400) | (4,479) | 460 | (6,707) |
Balances | 363,140 | 352,777 | 363,140 | 352,777 |
Accumulated Other Comprehensive Income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (8,161) | (2,172) | (9,021) | 56 |
Balances | (8,561) | (6,651) | (8,561) | (6,651) |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (8,161) | (2,172) | (9,021) | 56 |
Other comprehensive income (loss) | (400) | (4,479) | 460 | (6,707) |
Balances | $ (8,561) | $ (6,651) | $ (8,561) | $ (6,651) |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value and Range) (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
MSRs | $ 5,466 | $ 5,310 | $ 5,275 |
Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs - Derivative Asset | 32 | 35 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
MSRs | 5,466 | 5,275 | |
Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs - Derivative Asset | 32 | 35 | |
Market Approach | Weighted average prepayment speed (PSA) | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
MSRs | $ 5,466 | $ 5,275 | |
MSRs Range | 111 | 121 | |
Market Approach | Range of pull through rate | Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs - Derivative Asset | $ 32 | $ 28 | |
Minimum | Market Approach | Range of pull through rate | Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs Range | 86 | 78 | |
Maximum | Market Approach | Range of pull through rate | Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs Range | 100 | 100 | |
Arithmetic Average | Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs Range | 98 | 92 |
Fair Value Measurements (Activi
Fair Value Measurements (Activity in MSRs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Fair Value Measurements [Abstract] | ||
Beginning balance | $ 5,310 | $ 5,275 |
Servicing rights resulting from sales of loans | 114 | 231 |
Valuation adjustment | 42 | (40) |
Ending balance | $ 5,466 | $ 5,466 |
Fair Value Measurements (Acti_2
Fair Value Measurements (Activity in IRLCs) (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning Balance | $ 101 | $ 28 |
Valuation adjustment | (69) | 4 |
Ending Balance | $ 32 | $ 32 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Investment securities: | |||
Investment securities available for sale, at fair value | $ 78,069 | $ 83,587 | |
Equity securities, at fair value | 1,245 | 1,233 | |
LHFS | 6,845 | 4,248 | |
LHFI | 9,745 | 8,437 | |
MSRs | 5,466 | $ 5,310 | 5,275 |
Total assets at fair value | 101,519 | 102,856 | |
Total liabilities at fair value | 19 | 13 | |
Fair Value, Inputs, Level 2 | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 78,069 | 83,587 | |
Equity securities, at fair value | 1,245 | 1,233 | |
LHFS | 6,845 | 4,248 | |
LHFI | 9,745 | 8,437 | |
Total assets at fair value | 96,021 | 97,546 | |
Total liabilities at fair value | 19 | 6 | |
Fair Value, Inputs, Level 3 | |||
Investment securities: | |||
MSRs | 5,466 | 5,275 | |
Total assets at fair value | 5,498 | 5,310 | |
Total liabilities at fair value | 7 | ||
U.S. Government agencies | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 18,062 | 18,178 | |
U.S. Government agencies | Fair Value, Inputs, Level 2 | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 18,062 | 18,178 | |
Mortgage-backed | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 58,179 | 63,519 | |
Mortgage-backed | Fair Value, Inputs, Level 2 | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 58,179 | 63,519 | |
Other debt securities | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 1,828 | 1,890 | |
Other debt securities | Fair Value, Inputs, Level 2 | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 1,828 | 1,890 | |
Interest Rate Lock Commitments | |||
Investment securities: | |||
IRLCs - Derivative Asset | 32 | 35 | |
IRLCs - Derivative Liability | 7 | ||
Interest Rate Lock Commitments | Fair Value, Inputs, Level 3 | |||
Investment securities: | |||
IRLCs - Derivative Asset | 32 | 35 | |
IRLCs - Derivative Liability | 7 | ||
TBA securities | |||
Investment securities: | |||
IRLCs - Derivative Asset | 117 | 41 | |
IRLCs - Derivative Liability | 19 | 6 | |
TBA securities | Fair Value, Inputs, Level 2 | |||
Investment securities: | |||
IRLCs - Derivative Asset | 117 | 41 | |
IRLCs - Derivative Liability | $ 19 | $ 6 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - Appraisal Of Collateral - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Weighted Average | ||
Impaired loans: | ||
Impaired loans, Liquidation expense, Range | 10% | |
Other real estate owned, Appraisal adjustment, Range | 0% | (2.00%) |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | ||
Impaired loans: | ||
Impaired loans | $ 890 | |
Other real estate owned | $ 179 | $ 197 |
Impaired loans, Liquidation expense, Range | 10% | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Maximum | ||
Impaired loans: | ||
Other real estate owned, Appraisal adjustment, Range | 20% | 20% |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Minimum | ||
Impaired loans: | ||
Other real estate owned, Appraisal adjustment, Range | 0% | 0% |
Fair Value Measurements (Esti_2
Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Financial assets, Estimated Fair Value | ||||
Investment securities available for sale, at fair value | $ 78,069 | $ 83,587 | ||
Investment securities held to maturity | 473,296 | 494,627 | $ 494,627 | |
LHFS | 6,845 | 4,248 | ||
Loans, net | 9,745 | 8,437 | ||
MSRs | 5,466 | $ 5,310 | 5,275 | |
Interest Rate Lock Commitments | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 32 | 35 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | 7 | |||
TBA securities | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 117 | 41 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | 19 | 6 | ||
Carrying Amount | ||||
Financial assets, Estimated Fair Value | ||||
Loans, net | 9,745 | 8,437 | ||
Estimated Fair Value | ||||
Financial assets, Estimated Fair Value | ||||
Loans, net | 9,745 | 8,437 | ||
Fair Value, Inputs, Level 1 | Carrying Amount | ||||
Financial assets, Estimated Fair Value | ||||
Cash and cash equivalents | 45,827 | 55,499 | ||
Fair Value, Inputs, Level 1 | Estimated Fair Value | ||||
Financial assets, Estimated Fair Value | ||||
Cash and cash equivalents | 45,827 | 55,499 | ||
Fair Value, Inputs, Level 2 | ||||
Financial assets, Estimated Fair Value | ||||
Investment securities available for sale, at fair value | 78,069 | 83,587 | ||
LHFS | 6,845 | 4,248 | ||
Loans, net | 9,745 | 8,437 | ||
Fair Value, Inputs, Level 2 | TBA securities | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 117 | 41 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | 19 | 6 | ||
Fair Value, Inputs, Level 2 | Carrying Amount | ||||
Financial assets, Estimated Fair Value | ||||
Investment securities available for sale, at fair value | 78,069 | 83,587 | ||
Investment securities held to maturity | 536,970 | 559,455 | ||
Equity securities | 1,245 | 1,233 | ||
Restricted securities | 21,208 | 11,169 | ||
LHFS | 6,845 | 4,248 | ||
Cash surrender value on life insurance | 60,150 | 59,218 | ||
Financial liabilities, Estimated Fair Value | ||||
Noninterest-bearing demand | 778,963 | 862,015 | ||
Checking plus interest | 694,221 | 694,101 | ||
Money market | 600,724 | 709,132 | ||
Savings | 270,884 | 319,814 | ||
Club | 1,098 | 374 | ||
Certificates of deposit | 591,636 | 424,348 | ||
Advances from FHLB - short-term | 276,000 | 40,000 | ||
Subordinated debt | 43,227 | 43,072 | ||
IRLCs - Derivative Liability | 19 | 6 | ||
Fair Value, Inputs, Level 2 | Carrying Amount | TBA securities | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 117 | 41 | ||
Fair Value, Inputs, Level 2 | Estimated Fair Value | ||||
Financial assets, Estimated Fair Value | ||||
Investment securities available for sale, at fair value | 78,069 | 83,587 | ||
Investment securities held to maturity | 473,296 | 494,626 | ||
Equity securities | 1,245 | 1,233 | ||
Restricted securities | 21,208 | 11,169 | ||
LHFS | 6,845 | 4,248 | ||
Cash surrender value on life insurance | 60,150 | 59,218 | ||
Financial liabilities, Estimated Fair Value | ||||
Noninterest-bearing demand | 778,963 | 862,015 | ||
Checking plus interest | 694,221 | 694,101 | ||
Money market | 600,724 | 709,132 | ||
Savings | 270,884 | 319,814 | ||
Club | 1,098 | 374 | ||
Certificates of deposit | 583,747 | 410,455 | ||
Advances from FHLB - short-term | 276,012 | 40,002 | ||
Subordinated debt | 40,377 | 41,193 | ||
IRLCs - Derivative Liability | 19 | 6 | ||
Fair Value, Inputs, Level 2 | Estimated Fair Value | TBA securities | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 117 | 41 | ||
Fair Value, Inputs, Level 3 | ||||
Financial assets, Estimated Fair Value | ||||
MSRs | 5,466 | 5,275 | ||
Fair Value, Inputs, Level 3 | Interest Rate Lock Commitments | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 32 | 35 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | 7 | |||
Fair Value, Inputs, Level 3 | Carrying Amount | ||||
Financial assets, Estimated Fair Value | ||||
Loans, net | 2,714,464 | 2,531,027 | ||
MSRs | 5,466 | 5,275 | ||
Fair Value, Inputs, Level 3 | Carrying Amount | Interest Rate Lock Commitments | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | 32 | 35 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | 7 | |||
Fair Value, Inputs, Level 3 | Estimated Fair Value | ||||
Financial assets, Estimated Fair Value | ||||
Loans, net | 2,550,457 | 2,431,808 | ||
MSRs | 5,466 | 5,275 | ||
Fair Value, Inputs, Level 3 | Estimated Fair Value | Interest Rate Lock Commitments | ||||
Financial assets, Estimated Fair Value | ||||
Derivative asset, estimated fair value | $ 32 | 35 | ||
Financial liabilities, Estimated Fair Value | ||||
IRLCs - Derivative Liability | $ 7 |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 387,175 | $ 414,362 |
Commitments to Extend Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | 378,045 | 406,353 |
Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 9,130 | $ 8,009 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Deposits | $ 2,937,526 | $ 2,937,526 | $ 3,009,784 | ||
Gross loans | $ 2,539,464 | ||||
Interest Income | 36,633 | $ 26,670 | 71,695 | $ 50,994 | |
Noninterest income | 5,294 | $ 5,833 | 10,628 | $ 11,879 | |
Financing receivables, amortized cost basis | 2,724,209 | 2,724,209 | |||
Business Activities With Medical Use Cannabis Customers | Medical Use Cannabis Customers | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Deposits | 121,800 | $ 121,800 | |||
Deposits with customers as percentage of total deposits | 4.20% | ||||
Loans with customers as percentage of total loans | 2.20% | ||||
Interest Income | $ 4,800 | ||||
Noninterest income | 549 | ||||
Financing receivables, amortized cost basis | $ 59,800 | $ 59,800 |
Revenue Recognition (Noninteres
Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Recognition [Abstract] | ||||
Service charges on deposit accounts | $ 1,264 | $ 1,438 | $ 2,477 | $ 2,797 |
Trust and investment fee income | 399 | 447 | 831 | 961 |
Interchange income | 1,311 | 1,253 | 2,523 | 2,291 |
Title Company revenue | 186 | 426 | 323 | 749 |
Other noninterest income | 500 | 582 | 945 | 1,042 |
Noninterest Income (in-scope of Topic 606) | 3,660 | 4,146 | 7,099 | 7,840 |
Noninterest Income (out-of-scope of Topic 606) | 1,634 | 1,687 | 3,529 | 4,039 |
Total noninterest income | $ 5,294 | $ 5,833 | $ 10,628 | $ 11,879 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ / shares in Units, $ in Thousands | Jul. 24, 2023 USD ($) | Jul. 01, 2023 USD ($) Office shares | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) |
Subsequent Event [Line Items] | ||||
Assets | $ 3,641,631 | $ 3,477,276 | ||
The Community Financial Corporation | ||||
Subsequent Event [Line Items] | ||||
Purchase price per share | $ / shares | $ 11.56 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Available-for-sale securities portfolio acquired, net proceeds | $ 430,000 | |||
Payment of FHLB advances | $ 380,000 | |||
Subsequent Event | The Community Financial Corporation | ||||
Subsequent Event [Line Items] | ||||
Number of Shares to be Issued for each share | shares | 2.3287 | |||
Transaction consideration | $ 153,615 | |||
Fair value of common shares issued | shares | 13,201,693 | |||
Subsequent Event | The Community Financial Corporation | MARYLAND | ||||
Subsequent Event [Line Items] | ||||
Number of Community Banking Offices | Office | 10 | |||
Subsequent Event | The Community Financial Corporation | VIRGINIA | ||||
Subsequent Event [Line Items] | ||||
Number of Community Banking Offices | Office | 2 | |||
Subsequent Event | The Community Financial Corporation | Minimum | ||||
Subsequent Event [Line Items] | ||||
Assets | $ 2,400,000 |
Subsequent Events (Purchase Pri
Subsequent Events (Purchase Price Allocations) (Details) - The Community Financial Corporation - USD ($) $ / shares in Units, $ in Thousands | Jul. 01, 2023 | Jun. 30, 2023 |
Subsequent Event [Line Items] | ||
Purchase price per share | $ 11.56 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shore Bancshares, Inc common stock paid at closing price of $11.56 as of June 30, 2023 | $ 152,612 | |
Effective settlement of pre-existing debt | 500 | |
Cash consideration (cash in lieu for fractional shares) | 4 | |
Fair value of converted share-based payment awards | 499 | |
Total purchase price | $ 153,615 |