Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38314 | |
Entity Registrant Name | MVB Financial Corp | |
Entity Incorporation, State or Country Code | WV | |
Entity Tax Identification Number | 20-0034461 | |
Entity Address, Address Line One | 301 Virginia Avenue | |
Entity Address, City or Town | Fairmont | |
Entity Address, State or Province | WV | |
Entity Address, Postal Zip Code | 26554 | |
City Area Code | 304 | |
Local Phone Number | 363-4800 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | MVBF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,039,548 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0001277902 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 9,784 | $ 19,110 |
Interest-bearing balances with banks | 380,297 | 244,783 |
Total cash and cash equivalents | 390,081 | 263,893 |
Certificates of deposit with banks | 9,582 | 11,803 |
Investment securities available-for-sale | 439,023 | 410,624 |
Equity securities | 29,809 | 27,585 |
Loans held-for-sale | 0 | 1,062 |
Loans receivable | 1,764,186 | 1,453,744 |
Allowance for loan losses | (25,187) | (25,844) |
Loans receivable, net | 1,738,999 | 1,427,900 |
Premises and equipment, net | 25,043 | 26,203 |
Bank-owned life insurance | 42,011 | 41,262 |
Equity method investments | 38,935 | 46,494 |
Accrued interest receivable and other assets | 71,353 | 72,300 |
Goodwill | 3,988 | 2,350 |
TOTAL ASSETS | 2,788,824 | 2,331,476 |
Deposits: | ||
Noninterest-bearing | 999,328 | 715,791 |
Interest-bearing | 1,399,612 | 1,266,598 |
Total deposits | 2,398,940 | 1,982,389 |
Accrued interest payable and other liabilities | 39,079 | 55,931 |
Repurchase agreements | 11,139 | 10,266 |
Subordinated debt | 72,966 | 43,407 |
Total liabilities | 2,522,124 | 2,091,993 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock - par value $1,000; 20,000 shares authorized; no shares issued and outstanding as of September 30, 2021 and 733 shares issued and outstanding as December 31, 2020 | 0 | 7,334 |
Common stock - par value $1; 20,000,000 shares authorized; 12,820,220 and 11,972,204 shares issued and outstanding, respectively, as of September 30, 2021 and 12,374,322 and 11,526,306 shares issued and outstanding, respectively, as of December 31, 2020 | 12,820 | 12,374 |
Additional paid-in capital | 140,235 | 129,119 |
Retained earnings | 130,066 | 105,171 |
Accumulated other comprehensive income (loss) | (815) | 2,226 |
Treasury stock - 848,016 shares as of September 30, 2021 and December 31, 2020, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 265,565 | 239,483 |
Noncontrolling interest | 1,135 | 0 |
Total stockholders' equity | 266,700 | 239,483 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,788,824 | $ 2,331,476 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 0 | 733 |
Preferred stock, shares outstanding (in shares) | 0 | 733 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 12,820,220 | 12,374,322 |
Common stock, shares outstanding (in shares) | 11,972,204 | 11,526,306 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 18,530 | $ 16,976 | $ 54,175 | $ 56,064 |
Interest on deposits with banks | 112 | 106 | 332 | 297 |
Interest on investment securities | 575 | 411 | 1,831 | 1,554 |
Interest on tax-exempt loans and securities | 1,267 | 1,134 | 4,042 | 3,185 |
Total interest income | 20,484 | 18,627 | 60,380 | 61,100 |
INTEREST EXPENSE | ||||
Interest on deposits | 898 | 1,894 | 3,182 | 8,840 |
Interest on short-term borrowings | 9 | 703 | 105 | 1,543 |
Interest on subordinated debt | 481 | 20 | 1,437 | 78 |
Total interest expense | 1,388 | 2,617 | 4,724 | 10,461 |
NET INTEREST INCOME | 19,096 | 16,010 | 55,656 | 50,639 |
Provision for loan losses | 380 | 8,631 | (542) | 16,365 |
Net interest income (loss) after provision for loan losses | 18,716 | 7,379 | 56,198 | 34,274 |
NONINTEREST INCOME | ||||
Payment card and service charge income | 1,685 | 638 | 5,104 | 1,716 |
Mortgage fee income | 0 | 7,264 | 0 | 33,427 |
Insurance and investment services income | 236 | 224 | 707 | 620 |
Gain on sale of available-for-sale securities, net | 529 | 35 | 3,380 | 865 |
Gain on sale of equity securities, net | 0 | 18 | 5 | 48 |
Gain on sale of loans, net | 908 | 172 | 3,125 | 302 |
Gain (loss) on derivatives, net | 0 | (7,508) | 0 | 2,365 |
Holding gain on equity securities, net | 536 | 94 | 1,750 | 111 |
Compliance and consulting income | 3,013 | 1,085 | 6,162 | 3,035 |
Equity method investment income | 3,573 | 13,620 | 14,570 | 13,620 |
Gains on acquisition and divestiture activity | 10,783 | 0 | 10,783 | 14,302 |
Other operating income | 688 | 3,756 | 2,467 | 5,350 |
Total noninterest income | 21,951 | 19,398 | 48,053 | 75,761 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 16,528 | 10,519 | 42,100 | 49,360 |
Occupancy expense | 1,024 | 1,101 | 3,297 | 3,508 |
Equipment depreciation and maintenance | 1,250 | 845 | 3,497 | 2,636 |
Data processing and communications | 1,080 | 1,372 | 3,409 | 4,268 |
Mortgage processing | 0 | 3 | 0 | 1,744 |
Marketing, contributions and sponsorships | 207 | 227 | 418 | 891 |
Professional fees | 2,665 | 1,606 | 6,857 | 5,931 |
Insurance, tax and assessment expense | 532 | 577 | 1,570 | 1,607 |
Travel, entertainment, dues and subscriptions | 1,437 | 624 | 3,525 | 2,683 |
Other operating expenses | 1,106 | 1,391 | 3,677 | 3,626 |
Total noninterest expense | 25,829 | 18,265 | 68,350 | 76,254 |
Income before income taxes | 14,838 | 8,512 | 35,901 | 33,781 |
Income tax expense | 3,164 | 2,021 | 7,006 | 8,208 |
Net income before noncontrolling interest | 11,674 | 6,491 | 28,895 | 25,573 |
Net loss attributable to noncontrolling interest | 154 | 0 | 265 | 0 |
Net income attributable to parent | 11,828 | 6,491 | 29,160 | 25,573 |
Preferred dividends | 0 | 116 | 35 | 345 |
Net income available to common shareholders | $ 11,828 | $ 6,375 | $ 29,125 | $ 25,228 |
Earnings per common shareholder - basic (in dollars per share) | $ 1 | $ 0.53 | $ 2.49 | $ 2.11 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.92 | $ 0.53 | $ 2.32 | $ 2.07 |
Weighted average shares outstanding - basic (in shares) | 11,880,348 | 11,948,989 | 11,684,570 | 11,948,857 |
Weighted average shares outstanding - diluted (in shares) | 12,824,309 | 12,116,418 | 12,565,809 | 12,185,137 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 11,674 | $ 6,491 | $ 28,895 | $ 25,573 |
Other comprehensive (loss) income: | ||||
Unrealized holding gain (loss) on securities available-for-sale | 239 | 1,226 | (2,723) | 3,191 |
Income tax effect | (56) | (331) | 638 | (862) |
Reclassification adjustment for gain recognized in income | (529) | (35) | (3,380) | (865) |
Income tax effect | 124 | 9 | 793 | 234 |
Change in defined benefit pension plan | (914) | (102) | 1,112 | (1,809) |
Income tax effect | 214 | 28 | (261) | 489 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 127 | 105 | 381 | 315 |
Income tax effect | (30) | (28) | (89) | (85) |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | 14 | 95 | 637 | (738) |
Income tax effect | (3) | (26) | (149) | 199 |
Total other comprehensive (loss) income | (814) | 941 | (3,041) | 69 |
Comprehensive loss attributable to noncontrolling interest | 154 | 0 | 265 | 0 |
Comprehensive income | $ 11,014 | $ 7,432 | $ 26,119 | $ 25,642 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders' equity attributable to parent | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2019 | 733 | 11,995,366 | 51,077 | ||||||
Beginning balance at Dec. 31, 2019 | $ 211,936 | $ 7,334 | $ 11,995 | $ 122,516 | $ 72,496 | $ (1,321) | $ (1,084) | $ 211,936 | $ 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 1,048 | 1,048 | 1,048 | ||||||
Other comprehensive loss | (917) | (917) | (917) | ||||||
Dividends on common stock | (1,076) | (1,076) | (1,076) | ||||||
Dividends on preferred stock | (114) | (114) | (114) | ||||||
Stock-based compensation | 498 | 498 | 498 | ||||||
Common stock options exercised (in shares) | 2,500 | ||||||||
Common stock options exercised | 38 | $ 3 | 35 | 38 | |||||
Common stock repurchased (in shares) | 16,300 | ||||||||
Common stock repurchased | (260) | $ (260) | (260) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 733 | 11,997,866 | (67,377) | ||||||
Ending balance at Mar. 31, 2020 | 211,153 | $ 7,334 | $ 11,998 | 123,049 | 72,354 | (2,238) | $ (1,344) | 211,153 | 0 |
Beginning balance (in shares) at Dec. 31, 2019 | 733 | 11,995,366 | 51,077 | ||||||
Beginning balance at Dec. 31, 2019 | 211,936 | $ 7,334 | $ 11,995 | 122,516 | 72,496 | (1,321) | $ (1,084) | 211,936 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 25,573 | ||||||||
Other comprehensive loss | 69 | ||||||||
Fair value of noncontrolling interests at acquisition date | 0 | ||||||||
Common stock issued related to acquisition | 240 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 733 | 12,068,627 | (179,626) | ||||||
Ending balance at Sep. 30, 2020 | 234,116 | $ 7,334 | $ 12,069 | 124,474 | 94,496 | (1,252) | $ (3,005) | 234,116 | 0 |
Beginning balance (in shares) at Mar. 31, 2020 | 733 | 11,997,866 | (67,377) | ||||||
Beginning balance at Mar. 31, 2020 | 211,153 | $ 7,334 | $ 11,998 | 123,049 | 72,354 | (2,238) | $ (1,344) | 211,153 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 18,034 | 18,034 | 18,034 | ||||||
Other comprehensive loss | 45 | 45 | 45 | ||||||
Dividends on common stock | (1,076) | (1,076) | (1,076) | ||||||
Dividends on preferred stock | (115) | (115) | (115) | ||||||
Stock-based compensation | 627 | 627 | 627 | ||||||
Restricted stock units issued (in shares) | 48,483 | 525 | |||||||
Restricted stock units issued | (7) | $ 49 | (49) | $ (7) | (7) | ||||
Common stock issued related to acquisition (in shares) | 19,278 | ||||||||
Common stock issued related to acquisition | 240 | $ 19 | 221 | 240 | |||||
Common stock repurchased (in shares) | 29,300 | ||||||||
Common stock repurchased | (401) | $ (401) | (401) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 733 | 12,065,627 | (97,202) | ||||||
Ending balance at Jun. 30, 2020 | 228,500 | $ 7,334 | $ 12,066 | 123,848 | 89,197 | (2,193) | $ (1,752) | 228,500 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 6,491 | 6,491 | 6,491 | ||||||
Other comprehensive loss | 941 | 941 | 941 | ||||||
Dividends on common stock | (1,076) | (1,076) | (1,076) | ||||||
Dividends on preferred stock | (116) | (116) | (116) | ||||||
Stock-based compensation | 592 | 592 | 592 | ||||||
Common stock options exercised (in shares) | 3,000 | ||||||||
Common stock options exercised | 37 | $ 3 | 34 | 37 | |||||
Common stock repurchased (in shares) | 82,424 | ||||||||
Common stock repurchased | (1,253) | $ (1,253) | (1,253) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 733 | 12,068,627 | (179,626) | ||||||
Ending balance at Sep. 30, 2020 | 234,116 | $ 7,334 | $ 12,069 | 124,474 | 94,496 | (1,252) | $ (3,005) | 234,116 | 0 |
Beginning balance (in shares) at Dec. 31, 2020 | 733 | 12,374,322 | (848,016) | ||||||
Beginning balance at Dec. 31, 2020 | 239,483 | $ 7,334 | $ 12,374 | 129,119 | 105,171 | 2,226 | $ (16,741) | 239,483 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 8,058 | 8,085 | 8,085 | (27) | |||||
Other comprehensive loss | (4,118) | (4,118) | (4,118) | ||||||
Dividends on common stock | (1,153) | (1,153) | (1,153) | ||||||
Dividends on preferred stock | (35) | (35) | (35) | ||||||
Stock-based compensation | 592 | 592 | 592 | ||||||
Redemption of preferred stock (in shares) | (733) | ||||||||
Redemption of preferred stock | (7,334) | $ (7,334) | (7,334) | ||||||
Common stock options exercised (in shares) | 52,584 | ||||||||
Common stock options exercised | 690 | $ 53 | 637 | 690 | |||||
Restricted stock units issued (in shares) | 11,155 | ||||||||
Restricted stock units issued | 0 | $ 11 | (11) | ||||||
Fair value of noncontrolling interests at acquisition date | 500 | 500 | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 0 | 12,438,061 | (848,016) | ||||||
Ending balance at Mar. 31, 2021 | 236,683 | $ 0 | $ 12,438 | 130,337 | 112,068 | (1,892) | $ (16,741) | 236,210 | 473 |
Beginning balance (in shares) at Dec. 31, 2020 | 733 | 12,374,322 | (848,016) | ||||||
Beginning balance at Dec. 31, 2020 | 239,483 | $ 7,334 | $ 12,374 | 129,119 | 105,171 | 2,226 | $ (16,741) | 239,483 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 28,895 | ||||||||
Other comprehensive loss | (3,041) | ||||||||
Fair value of noncontrolling interests at acquisition date | 1,400 | ||||||||
Common stock issued related to acquisition | 708 | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | 12,820,220 | (848,016) | ||||||
Ending balance at Sep. 30, 2021 | 266,700 | $ 0 | $ 12,820 | 140,235 | 130,066 | (815) | $ (16,741) | 265,565 | 1,135 |
Beginning balance (in shares) at Mar. 31, 2021 | 0 | 12,438,061 | (848,016) | ||||||
Beginning balance at Mar. 31, 2021 | 236,683 | $ 0 | $ 12,438 | 130,337 | 112,068 | (1,892) | $ (16,741) | 236,210 | 473 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 9,163 | 9,247 | 9,247 | (84) | |||||
Other comprehensive loss | 1,891 | 1,891 | 1,891 | ||||||
Dividends on common stock | (1,405) | (1,405) | (1,405) | ||||||
Stock-based compensation | 692 | 692 | 692 | ||||||
Common stock options exercised (in shares) | 108,511 | ||||||||
Common stock options exercised | 1,607 | $ 108 | 1,499 | 1,607 | |||||
Restricted stock units issued (in shares) | 57,906 | ||||||||
Restricted stock units issued | 0 | $ 58 | (58) | 0 | |||||
Minimum tax withholding on restricted stock units issued | (231) | (231) | (231) | ||||||
Fair value of noncontrolling interests at acquisition date | 400 | 400 | |||||||
Common stock issued related to acquisition (in shares) | 17,597 | ||||||||
Common stock issued related to acquisition | 600 | $ 18 | 582 | 600 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 0 | 12,622,075 | (848,016) | ||||||
Ending balance at Jun. 30, 2021 | 249,400 | $ 0 | $ 12,622 | 132,821 | 119,910 | (1) | $ (16,741) | 248,611 | 789 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 11,674 | 11,828 | 11,828 | (154) | |||||
Other comprehensive loss | (814) | (814) | (814) | ||||||
Dividends on common stock | (1,672) | (1,672) | (1,672) | ||||||
Stock-based compensation | 1,055 | 1,055 | 1,055 | ||||||
Common stock options exercised (in shares) | 64,399 | ||||||||
Common stock options exercised | 1,108 | $ 64 | 1,044 | 1,108 | |||||
Restricted stock units issued (in shares) | 1,410 | ||||||||
Restricted stock units issued | 0 | $ 1 | (1) | 0 | |||||
Minimum tax withholding on restricted stock units issued | (25) | (25) | (25) | ||||||
Common stock issued related to stock-based compensation (in shares) | 24,408 | ||||||||
Common stock issued related to stock-based compensation | 1,000 | $ 25 | 975 | 1,000 | |||||
Common stock issued related to equity method investment (in shares) | 107,928 | ||||||||
Common stock issued related to equity method investment | 4,474 | $ 108 | 4,366 | 4,474 | |||||
MVB Technology membership units issued | 500 | 500 | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | 12,820,220 | (848,016) | ||||||
Ending balance at Sep. 30, 2021 | $ 266,700 | $ 0 | $ 12,820 | $ 140,235 | $ 130,066 | $ (815) | $ (16,741) | $ 265,565 | $ 1,135 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends paid (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.09 | $ 0.09 | $ 0.09 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income before noncontrolling interest | $ 28,895 | $ 25,573 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net amortization and accretion of investments | 3,011 | 1,112 |
Net amortization of deferred loan costs | 2,062 | 779 |
Provision for loan losses | (542) | 16,365 |
Depreciation and amortization | 2,800 | 761 |
Stock-based compensation | 2,339 | 1,717 |
Loans originated for sale | (23,950) | (1,334,910) |
Proceeds of loans sold | 17,871 | 1,475,854 |
Holding gain on equity securities | (1,750) | (111) |
Mortgage fee income | 0 | (33,427) |
Gain on sale of available-for-sale securities | (3,411) | (899) |
Loss on sale of available-for-sale securities | 31 | 34 |
Gain on sale of equity securities | (5) | (48) |
Gain on sale of loans | (3,125) | (302) |
Gains on acquisition and divestiture activity | (10,783) | (14,302) |
Gain on sale of other real estate owned | (116) | 0 |
Income on bank-owned life insurance | (749) | (663) |
Deferred income taxes | (1,186) | 3,958 |
Equity method investment income | (14,570) | (13,620) |
Return on equity method investment | 29,795 | (3,338) |
Other assets | (503) | (36,669) |
Other liabilities | (14,327) | 3,444 |
Net cash from operating activities | 11,787 | 91,308 |
INVESTING ACTIVITIES | ||
Purchases of available-for-sale investment securities | (176,468) | (132,896) |
Maturities/paydowns of available-for-sale investment securities | 38,846 | 42,770 |
Sales of available-for-sale investment securities | 103,365 | 48,579 |
Purchases of premises and equipment | (3,589) | (4,211) |
Disposals of premises and equipment | 0 | 1,687 |
Loans, net | (356,623) | (43,869) |
Purchases of restricted bank stock | (1,410) | (24,013) |
Redemptions of restricted bank stock | 2,821 | 33,578 |
Proceeds from sale of certificates of deposit with banks | 2,221 | 1,241 |
Purchases of certificates of deposit with banks | 0 | (993) |
Proceeds from sale of other real estate owned | 2,761 | 7,700 |
Purchase of equity securities | (3,472) | (6,260) |
Sales of equity securities | 61 | 669 |
Net cash transferred for banking center sale | (95,697) | 0 |
Cash paid for acquisitions, net of cash acquired | (772) | (78,699) |
Net cash from investing activities | (487,956) | (154,717) |
FINANCING ACTIVITIES | ||
Deposits, net | 579,875 | 491,259 |
Repurchase agreements, net | 873 | (127) |
FHLB and other borrowings, net | 0 | (154,483) |
Issuance of subordinated debt | 30,000 | 0 |
Payment of subordinated debt issuance costs | 441 | 0 |
Preferred stock redemption | (7,334) | 0 |
Common stock repurchased | 0 | (1,921) |
Common stock options exercised | 3,405 | 75 |
Withholding cash issued in lieu of restricted stock | (256) | 0 |
Cash dividends paid on common stock | (4,230) | (3,228) |
Cash dividends paid on preferred stock | (35) | (345) |
Issuance of subsidiary membership units | 500 | 0 |
Net cash from financing activities | 602,357 | 331,230 |
Increase in cash and cash equivalents | 126,188 | 267,821 |
Cash and cash equivalents, beginning of period | 263,893 | 28,002 |
Cash and cash equivalents, end of period | 390,081 | 295,823 |
Cash payments for: | ||
Interest on deposits, repurchase agreements and borrowings | 4,488 | 13,275 |
Income taxes | 9,600 | 7,613 |
Business combination non-cash disclosures: | ||
Assets acquired in business combination (net of cash received) | 739 | 87,722 |
Liabilities assumed in business combination | 605 | 148,731 |
Supplemental disclosure of cash flow information: | ||
Fair value of noncontrolling interests at acquisition date | 1,400 | 0 |
Loans transferred to other real estate owned | 357 | 800 |
Employee stock-based compensation tax withholding obligations | 4,155 | 35 |
Restricted stock units vested | 70 | 49 |
Common stock issued related to investments and acquisitions | $ 708 | $ 240 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Note 1 – Nature of Operations and Basis of Presentation Business and Organization MVB Financial Corp. is a financial holding company organized as a West Virginia corporation that operates principally through its wholly-owned subsidiary, MVB Bank, Inc.. The Bank’s subsidiaries include MVB Insurance, LLC, a title insurance company (“MVB Insurance”), MVB Community Development Corporation (“MVB CDC”), ProCo Global, Inc. (“Chartwell”, which began doing business under the registered trade name Chartwell Compliance), Paladin Fraud, LLC (“Paladin Fraud”) and MVB Edge Ventures, LLC (“Edge Ventures”). We also own equity method investments in Intercoastal Mortgage Company, LLC (“ICM”) and Interchecks Technologies, Inc. ("Interchecks"). The Bank owns controlling interests in Trabian Technology, Inc. (“Trabian”) and Edge Ventures owns controlling interests in MVB Technology, LLC ("MVB Technology") and Flexia Payments, LLC (“Flexia”). In 2021, Edge Ventures was created as a management company providing oversight, alignment and structure for MVB’s Fintech companies and allocates resources to help incubate venture businesses and technologies acquired and developed by MVB. Subsidiaries of Edge Ventures include MVB Technology, Flexia and Victor Technologies, Inc. (“Victor”). We conduct a wide range of business activities, primarily commercial and retail (“CoRe”) banking. We also continue to be involved in new innovative strategies to provide independent banking to corporate clients throughout the United States by leveraging recent investments in Fintech-related companies. We consider Fintech companies as those entities that use technology to electronically move funds. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of MVB and our subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All material intercompany accounts and transactions have been eliminated in consolidation. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2020 has been derived from audited financial statements included in the 2020 Form 10-K. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2020 Form 10-K. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. In 2021, the Bank entered into agreements to acquire majority interests in both Flexia and in Trabian and to divest a minority interest in MVB Technology. Although we own, through our subsidiaries, an 80.0% interest in each of Flexia and Trabian and a 93.4% interest in MVB Technology, we are required to consolidate 100% of Flexia, Trabian and MVB Technology within the consolidated financial statements. The remaining 20.0% of Flexia and Trabian and 6.6% of MVB Technology are accounted for separately as noncontrolling interests within the consolidated financial statements. Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of these entities. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting; those that are not consolidated or accounted for using the equity method of accounting are accounted for under cost or fair value accounting. For these investments accounted for under the equity method, we record our investment in non-consolidated affiliates and the portion of income or loss in equity in earnings of non-consolidated affiliates. We periodically evaluate these investments for impairment. As of September 30, 2021, we hold two equity method investments. Preparation of our consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based upon the best available information and actual results could differ from those estimates. Estimates that are particularly significant to the consolidated financial statements relate to the determination of the allowance for loan losses (“ALL”), purchased credit impaired (“PCI”) loans, derivative instruments, goodwill and deferred tax assets and liabilities. In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. COVID-19 Pandemic Throughout 2020 and into 2021, economies throughout the world have been severely disrupted as a result of the outbreak of COVID-19. The outbreak and any preventative or protective actions that we or our clients may take related to this virus may result in a period of disruption, including our financial reporting capabilities, our operations generally and could potentially impact our clients, providers and third parties. While significant progress has been made to combat the outbreak of COVID-19, the extent to which the COVID-19 pandemic continues to impact our future operating results will depend on future developments, including if there is a resurgence in the virus, which are highly uncertain and cannot be predicted. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , in April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , in May 2019, ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 and in November 2019, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , all of which clarifies codification and corrects unintended application of the guidance. The new guidance replaces the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. PCI loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance was initially effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. On November 15, 2019, the FASB issued ASU 2019-10, Financial Investments – Credit Issues (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which finalizes a delay in the effective date of the standard for smaller reporting companies (“SRCs”). Effective in the first quarter of 2022, we will lose our SRC designation. However, because we met the criteria to be an SRC as of the issuance date of this guidance, we are eligible for the delay in effective date and plan to adopt this standard for fiscal years ending after December 15, 2022. We expect to recognize a one-time cumulative effect adjustment to the ALL as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In that regard, we have formed a cross-functional implementation team. The team is working to develop an implementation plan which will include assessment and documentation of processes, internal controls and data sources; model development and documentation; and system configuration, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of this standard. The adoption of this standard could result in an increase in the ALL as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts as of the adoption date. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirement for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The updates in this ASU are part of the disclosure framework project ASU 2018-14 and modify the disclosure requirements under Accounting Standards Codification (“ASC”) 715-20 for employers that sponsor defined benefit pension or other postretirement plans. Those modifications include the removal and addition of disclosure requirements as well as clarifying specific disclosure requirements. The ASU removed the following disclosures: 1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; 2) the amount and timing of plan assets expected to be returned to the employer; 3) the disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law; 4) related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan; 5) for nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy; however, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets and 6) for public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the (i) aggregate of the service and interest cost components of net periodic benefit costs and (ii) benefit obligation for postretirement health care benefits. The ASU added the following disclosures: 1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and 2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU then clarified the following disclosures: 1) the projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs more than plan assets; and 2) the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs more than plan assets. ASU 2018-14 is effective for public business entities for fiscal years ending after December 15, 2020. As ASU 2018-04 is specific to disclosure requirements, adoption did not have a material impact on our interim consolidated financial statements. Our year-end disclosures will be revised to comply with the new requirements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . ASU 2020-01 clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives, including accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The amendments were effective for us beginning January 1, 2021 and adoption did not have a material effect on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments provide optional expedients and exceptions for certain contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits entities to not apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. In January 2021, ASU 2021-01 was issued by the FASB and clarified that certain exceptions in reference rate reform apply to derivatives that are affected by the discounting transition. We will continue to assess the impact as the reference rate transition occurs. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2 – Investment Securities The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods indicated: September 30, 2021 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 42,226 $ 342 $ (597) $ 41,971 United States sponsored mortgage-backed securities 85,754 401 (884) 85,271 United States treasury securities 82,738 — (316) 82,422 Municipal securities 202,717 5,182 (476) 207,423 Other debt securities 7,500 — — 7,500 Total debt securities 420,935 5,925 (2,273) 424,587 Other securities 14,282 177 (23) 14,436 Total investment securities available-for-sale $ 435,217 $ 6,102 $ (2,296) $ 439,023 December 31, 2020 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 53,207 $ 872 $ (210) $ 53,869 United States sponsored mortgage-backed securities 94,968 972 (171) 95,769 United States treasury securities 3,000 123 — 3,123 Municipal securities 223,642 8,327 (82) 231,887 Other debt securities 7,500 — — 7,500 Total debt securities 382,317 10,294 (463) 392,148 Other securities 18,401 146 (71) 18,476 Total investment securities available-for-sale $ 400,718 $ 10,440 $ (534) $ 410,624 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period indicated: September 30, 2021 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 5 $ 5 After one year, but within five years 86,798 86,542 After five years, but within ten years 34,205 35,079 After ten years 299,927 302,961 Total $ 420,935 $ 424,587 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled. Investment securities with a carrying value of $280.0 million and $229.4 million at September 30, 2021 and December 31, 2020, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve Discount Window. Our investment portfolio includes securities that are in an unrealized loss position as of September 30, 2021, the details of which are included in the following table. Although these securities would result in a pretax loss of $2.3 million if sold at September 30, 2021, we currently have no intention of selling the applicable securities at such fair values, and maintain that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. As of September 30, 2021, we consider all securities with unrealized loss positions to be temporarily impaired. As a result, we do not believe we will sustain any material realized losses as a result of the current decline in fair value. The following tables present investments in an unrealized loss position as of the periods indicated: September 30, 2021 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (20) $ 4,334 $ (138) $ 18,113 $ (459) United States sponsored mortgage-backed securities (27) 57,861 (803) 4,431 (81) United States treasury securities (18) 82,423 (316) — — Municipal securities (56) 40,069 (430) 2,898 (46) Other securities (1) — — 1,477 (23) $ 184,687 $ (1,687) $ 26,919 $ (609) December 31, 2020 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (27) $ 19,021 $ (68) $ 12,574 $ (142) United States sponsored mortgage-backed securities (9) 15,331 (155) 3,349 (16) Municipal securities (14) 11,856 (82) — — Other securities (5) 3,947 (71) — — $ 50,155 $ (376) $ 15,923 $ (158) The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Sales of available-for-sale securities $ 28,049 $ 7,379 $ 103,365 $ 48,579 Gains, gross 547 69 3,411 899 Losses, gross 18 34 31 34 Sales of equity securities $ — $ 669 $ 61 $ 669 Gain, gross — 18 5 48 Losses, gross — — — — Unrealized holding gains on equity securities 536 94 1,750 111 Qualified Affordable Housing Projects We have invested in limited partnerships that sponsor affordable housing projects utilizing low income house tax credits pursuant to Section 42 of the Internal Revenue Code. In exchange for these investments, we receive our pro-rata share of income, expense, gains and losses, including tax credits, that are received by the projects using the proportional amortization method. As of both September 30, 2021 and December 31, 2020, we have recognized investments totaling $4.0 million between the five affordable housing investment limited partnerships and have recognized cumulative amortization of $1.5 million and $1.2 million from these funds as of September 30, 2021 and December 31, 2020, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses Prior to the ICM transaction, we routinely generated one-to-four family mortgages for sale into the secondary market. During the three months ended September 30, 2020, we did not receive any sales proceeds and during the nine months ended September 30, 2020, we received sales proceeds of $1.23 billion, resulting in mortgage fee income of $33.4 million. Subsequent to the ICM transaction and during the three and nine months ended September 30, 2021, we did not receive any sales proceeds or recognize any mortgage fee income related to the sale of one-to-four family mortgages. The following table presents the components of loans as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial and non-residential real estate $ 1,430,290 $ 1,141,114 Residential real estate 269,967 240,264 Home equity 23,777 30,828 Consumer 22,144 3,156 Total 1,746,178 1,415,362 Purchased credit impaired loans: Commercial and non-residential real estate 15,079 21,008 Residential real estate 4,430 16,943 Consumer 601 1,488 Total purchased credit impaired loans 20,110 39,439 Total Loans $ 1,766,288 $ 1,454,801 Deferred loan origination costs and (fees), net (2,102) (1,057) Loans receivable $ 1,764,186 $ 1,453,744 We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments, which are levels at which we develop and document our systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are as follows: Commercial business loans – Commercial loans are made to provide funds for equipment and general corporate needs, as well as to finance owner-occupied real estate, and to finance future cash flows of Federal government lease contracts. Repayment of these loans primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. This segment includes both internally originated and purchased participation loans. 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. Commercial real estate loans – Commercial real estate loans consist of non-owner occupied properties, such as investment properties for retail, office and multifamily with a history of occupancy and cash flow. This segment includes both internally originated and purchased participation loans. These loans carry the risk of adverse changes in the local economy and a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow. Commercial acquisition, development and construction loans – Commercial acquisition, development and construction loans are intended to finance the construction of commercial and residential properties, including the construction of single-family dwellings, and also includes loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan. Commercial Small Business Administration (“SBA”) loans – Loans originated through the various SBA programs have become an area of lending focus for the Bank. As of June 30, 2021, these loans have not yet been designated as a unique portfolio segment due to the relative insignificance from a loan volume perspective. These loans are currently included within the loan types noted above, based on the purpose of each loan originated. However, it is anticipated that this portfolio will continue to expand through a dedicated SBA lending focus, which we continue to monitor. When appropriate, the portfolio segments will be adjusted to segregate the SBA loan portfolio segment from the other commercial loan portfolio segments. Commercial SBA Paycheck Protection Program (“PPP”) loans –This segment includes the loan originated through the recently created SBA PPP loans. Credit risk is heightened as this SBA program mandates that these loans require no collateral and no guarantors of the loans. However, the loans are backed by a full guaranty of the SBA, so long as the loans were originated in accordance with the program guidelines. Additionally, these loans are eligible for full forgiveness by the SBA so long as the borrowers comply with the program guidelines as it pertains to their eligibility to borrow these funds, as well as their use of the funds. Residential mortgage loans – This residential real estate subsegment contains permanent and construction mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios and collateral values. Credit risk arises from the borrower’s, and where applicable, the builder’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. Home equity lines of credit – This segment includes subsegment for senior lien and subordinate lien lines of credit. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. Consumer loans – This segment of loans includes primarily installment loans and personal lines of credit. Consumer loans include installment loans used by clients to purchase automobiles, boats and recreational vehicles. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. This segment also includes loans purchased from a third-party originator which it originates to finance the purchase of personal automotive vehicles. Credit risk is unique in comparison to the Consumer segment as this segment includes only those loans provided to consumers that cannot typically obtain financing through traditional lenders. As such, these loans are subject to a higher risk of default than the typical consumer loan. The following table presents impaired loans by class, excluding PCI loans, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of the periods indicated: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance September 30, 2021 Commercial Commercial business $ 5,931 $ 3,792 $ 3,646 $ 9,577 $ 11,283 Commercial real estate 676 243 495 1,171 1,341 Acquisition and development — — 1,401 1,401 2,816 Total commercial 6,607 4,035 5,542 12,149 15,440 Residential — — 6,971 6,971 7,222 Home equity 69 69 26 95 95 Consumer — — 3 3 3 Total impaired loans $ 6,676 $ 4,104 $ 12,542 $ 19,218 $ 22,760 December 31, 2020 Commercial Commercial business $ 3,431 $ 1,032 $ 5,653 $ 9,084 $ 10,440 Commercial real estate 772 264 944 1,716 1,864 Acquisition and development — — 2,534 2,534 3,939 Total commercial 4,203 1,296 9,131 13,334 16,243 Residential — — 1,960 1,960 2,232 Home equity — — 95 95 95 Consumer — — 5 5 5 Total impaired loans $ 4,203 $ 1,296 $ 11,191 $ 15,394 $ 18,575 The following table presents the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized for the periods indicated: Three Months Ended September 30, 2021 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial business $ 7,223 $ — $ — $ 7,785 $ — $ — Commercial real estate 1,943 11 11 3,264 26 26 Acquisition and development 340 — — 375 10 54 Total commercial 9,506 11 11 11,424 36 80 Residential 7,029 3 3 3,085 5 5 Home equity 69 — — 69 — — Consumer 3 — — 5 — — Total $ 16,607 $ 14 $ 14 $ 14,583 $ 41 $ 85 Nine Months Ended September 30, 2021 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial business $ 6,701 $ — $ — $ 5,225 $ — $ — Commercial real estate 2,125 33 33 3,124 77 79 Acquisition and development 348 — — 1,487 67 73 Total commercial 9,174 33 33 9,836 144 152 Residential 5,418 11 10 2,683 14 14 Home equity 69 — — 94 — — Consumer 3 — — 8 — — Total $ 14,664 $ 44 $ 43 $ 12,621 $ 158 $ 166 As of September 30, 2021, the Bank’s other real estate owned balance totaled $3.4 million, of which $2.7 million was related to the acquisition of The First State Bank (“First State”) in 2020. The Bank held $2.6 million, or 76.5%, of other real estate owned as a result of the foreclosure of 20 unrelated commercial loans. The remaining $0.8 million, or 23.5%, consists of 11 foreclosed residential real estate properties. There are five additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure, with a total recorded investment of $0.4 million as of September 30, 2021. These include four legacy Bank loans totaling $0.2 million and one loan acquired from First State totaling $0.2 million. These loans are included in the table above and have no specific allowance allocated to them. Bank management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. Loans categorized as “Pass” rated have adequate sources of repayment, with little identifiable risk of collection and general conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. Loans categorized as “Special Mention” rated have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. Loans categorized as “Substandard” rated are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans categorized as “Doubtful” rated have all the weakness inherent in those classified substandard with the added characteristic that the weakness makes collections or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as past due status, bankruptcy, repossession or death, occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of $1.0 million or greater is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table represents the classes of the loan portfolio, excluding PCI loans, summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods indicated: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total September 30, 2021 Commercial Commercial business $ 589,196 $ 13,623 $ 12,910 $ 3,605 $ 619,334 Commercial real estate 508,729 22,004 33,687 156 564,576 Acquisition and development 86,205 7,624 4,149 1,064 99,042 SBA PPP 147,338 — — — 147,338 Total commercial 1,331,468 43,251 50,746 4,825 1,430,290 Residential 259,864 917 8,693 493 269,967 Home equity 23,304 378 — 95 23,777 Consumer 22,123 18 3 — 22,144 Total Loans $ 1,636,759 $ 44,564 $ 59,442 $ 5,413 $ 1,746,178 December 31, 2020 Commercial Commercial business $ 496,222 $ 9,529 $ 17,045 $ 1,095 $ 523,891 Commercial real estate 356,544 32,044 34,001 533 423,122 Acquisition and development 80,771 25,001 4,184 2,170 112,126 SBA PPP 81,975 — — — 81,975 Total commercial 1,015,512 66,574 55,230 3,798 1,141,114 Residential 236,250 948 2,896 170 240,264 Home equity 30,277 381 144 26 30,828 Consumer 3,124 32 — — 3,156 Total Loans $ 1,285,163 $ 67,935 $ 58,270 $ 3,994 $ 1,415,362 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A complete review is presented to the Chief Credit Officer and/or the Special Asset Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status unless we believe it is likely the accrued interest will be collected. Any payments subsequently received are applied to the principal. All principal and interest due must be paid up-to-date and the Bank is reasonably sure of future satisfactory payment performance to remove a loan from non-accrual status. Usually, this requires the receipt of six The following table presents the classes of the loan portfolio, excluding PCI loans, summarized by aging categories of performing loans and non-accrual loans as of the periods indicated: (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Total Loans Non-Accrual 90+ Days Still Accruing September 30, 2021 Commercial Commercial business $ 608,407 $ 6,315 $ 1,052 $ 3,560 $ 10,927 $ 619,334 $ 9,102 $ — Commercial real estate 564,420 — — 156 156 564,576 495 — Acquisition and development 97,966 — — 1,076 1,076 99,042 1,157 — SBA PPP 147,338 — — — — 147,338 — — Total commercial 1,418,131 6,315 1,052 4,792 12,159 1,430,290 10,754 — Residential 268,281 726 415 545 1,686 269,967 6,601 — Home equity 23,550 117 15 95 227 23,777 95 — Consumer 22,138 3 3 — 6 22,144 3 — Total Loans $ 1,732,100 $ 7,161 $ 1,485 $ 5,432 $ 14,078 $ 1,746,178 $ 17,453 $ — December 31, 2020 Commercial Commercial business $ 521,799 $ 1,040 $ 33 $ 1,019 $ 2,092 $ 523,891 $ 8,601 $ — Commercial real estate 422,343 34 212 533 779 423,122 944 — Acquisition and development 109,686 — — 2,440 2,440 112,126 2,534 — SBA PPP 81,975 — — — — 81,975 — — Total commercial 1,135,803 1,074 245 3,992 5,311 1,141,114 12,079 — Residential 235,420 2,058 1,969 817 4,844 240,264 1,534 — Home equity 30,369 289 75 95 459 30,828 95 — Consumer 3,156 — — — — 3,156 5 — Total Loans $ 1,404,748 $ 3,421 $ 2,289 $ 4,904 $ 10,614 $ 1,415,362 $ 13,713 $ — An ALL is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Bank’s methodology allows for the analysis of certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on the outstanding principal balance. More specifically, residential mortgage loans, home equity lines of credit and consumer loans, when considered impaired, are evaluated collectively for impairment by applying allocation rates derived from the Bank’s historical losses specific to impaired loans. Total collectively evaluated impaired loans, excluding the PCI loans acquired from First State, were $1.4 million and $2.0 million, while the related reserves were $0.1 million and $0.1 million as of September 30, 2021 and December 31, 2020. Such collectively evaluated impaired loans are included in total loans individually evaluated for impairment and in total impaired loans. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by qualified factors. The segments described above, which are based on the federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory and governmental sources are: lending policies and procedures, nature and volume of the portfolio, experience and ability of lending management and staff, volume and severity of problem credits, quality of the loan review system, changes in the value of underlying collateral, effect of concentrations of credit from a loan type, industry and/or geographic standpoint, changes in economic and business conditions, consumer sentiment and other external factors. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan risk grading deteriorates. Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit and revolving lines of credit and based its calculation to estimate the liability for off-balance sheet credit exposures on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in a similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. As of September 30, 2021 and December 31, 2020, the liability for unfunded commitments related to loans held for investment, excluding loans acquired from First State, was $0.5 million. Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. The following table presents the primary segments of the ALL, excluding PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at June 30, 2021 $ 22,659 $ 1,363 $ 284 $ 576 $ 24,882 Charge-offs (96) (2) — — (98) Recoveries 10 — 13 — 23 Provision (release) (529) (42) (37) 609 1 ALL balance at September 30, 2021 $ 22,044 $ 1,319 $ 260 $ 1,185 $ 24,808 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2020 $ 24,033 $ 1,378 $ 298 $ 51 $ 25,760 Charge-offs (361) (2) — — (363) Recoveries 224 — 21 3 248 Provision (release) (1,852) (57) (59) 1,131 (837) ALL balance at September 30, 2021 $ 22,044 $ 1,319 $ 260 $ 1,185 $ 24,808 Individually evaluated for impairment $ 4,035 $ — $ 69 $ — $ 4,104 Collectively evaluated for impairment $ 18,009 $ 1,319 $ 191 $ 1,185 $ 20,704 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total September 30, 2021 Individually evaluated for impairment $ 12,148 $ 6,971 $ 95 $ 3 $ 19,217 Collectively evaluated for impairment 1,418,142 262,996 23,682 22,141 1,726,961 Total Loans $ 1,430,290 $ 269,967 $ 23,777 $ 22,144 $ 1,746,178 The following table presents the primary segments of the ALL, excluding PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at June 30, 2020 $ 15,401 $ 1,846 $ 264 $ 58 $ 17,569 Charge-offs (100) — — — (100) Recoveries 3 — 2 — 5 Provision (release) 8,840 (218) 82 (8) 8,696 ALL balance at Allowance contributed with mortgage combination transaction — (354) — — (354) ALL balance at September 30, 2020 $ 24,144 $ 1,274 $ 348 $ 50 $ 25,816 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2019 $ 10,098 $ 1,272 $ 327 $ 78 $ 11,775 Charge-offs (1,856) — (23) — (1,879) Recoveries 9 — 6 2 17 Provision (release) 15,893 356 38 (30) 16,257 Allowance contributed with mortgage combination transaction — (354) — — (354) ALL balance at September 30, 2020 $ 24,144 $ 1,274 $ 348 $ 50 $ 25,816 Individually evaluated for impairment $ 1,984 $ — $ — $ — $ 1,984 Collectively evaluated for impairment $ 22,160 $ 1,274 $ 348 $ 50 $ 23,832 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total September 30, 2020 Individually evaluated for impairment $ 14,350 $ 3,051 $ 95 $ 6 $ 17,502 Collectively evaluated for impairment 1,102,976 231,707 34,689 3,980 1,373,352 Total Loans $ 1,117,326 $ 234,758 $ 34,784 $ 3,986 $ 1,390,854 The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. Troubled Debt Restructurings At September 30, 2021 and December 31, 2020, the Bank had specific reserve allocations for troubled debt restructurings (“TDRs”) of $0.5 million and $0.6 million, respectively. Loans considered to be troubled debt restructured loans totaled $7.7 million and $10.2 million as of September 30, 2021 and December 31, 2020, respectively. Of these totals, $1.4 million and $1.6 million, respectively, represent accruing troubled debt restructured loans and represent 8% and 10%, respectively, of total impaired loans. Meanwhile, as of September 30, 2021, $2.6 million represent four loans to two borrowers that have defaulted under the restructured terms. The largest of these loans, totaling $2.1 million, is a commercial loan, and the other three of these loans, totaling $0.5 million, are commercial acquisition and development loans that were considered TDRs due to extended interest-only periods and/or unsatisfactory repayment structures once transitioned to principal and interest payments. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of September 30, 2021 and December 31, 2020. During the nine months ended September 30, 2021, no additional loans were classified as TDRs and no restructured loan defaulted under their modified terms that were not already classified as non-performing for having previously defaulted under their modified terms. During the three months ended September 30, 2020, no additional loans were classified as TDRs and no restructured loans defaulted under their modified terms that were already classified as non-performing for having previously defaulted under their modified terms. For the nine months ended September 30, 2020, the following table presents the new TDRs as of the period indicated: Nine Months Ended September 30, 2020 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Commercial business 5 $ 6,237 $ 5,427 Commercial real estate 2 159 152 Total commercial 7 6,396 5,579 Residential 1 87 86 Total 8 $ 6,483 $ 5,665 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan. Purchased Credit Impaired Loans As a result of the acquisition of First State, we have PCI loans. The following table presents the carrying amount of the PCI loan portfolio as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial $ 15,079 $ 21,008 Residential 4,430 16,943 Consumer 601 1,488 Outstanding balance $ 20,110 $ 39,439 Carrying amount, net of allowance $ 20,110 $ 39,355 The following table presents the accretable yield, or income expected to be collected, as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Beginning balance $ 8,313 $ — New loans purchased — 11,746 Accretion of income (3,080) (2,945) Other changes in expected cash flows 1,234 (488) Ending balance $ 6,467 $ 8,313 There were no PCI loans purchased during the three or nine months ended September 30, 2021. Income is not recognized on PCI loans if we cannot reasonably estimate cash flows expected to be collected and, as of September 30, 2021, we held no such loans. The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the PCI loan portfolio as of the periods indicated: (Dollars in thousands) Commercial Residential Total ALL balance at June 30, 2021 $ — $ — $ — Provision 14 365 379 ALL balance at September 30, 2021 $ 14 $ 365 $ 379 (Dollars in thousands) Commercial Residential Total ALL balance at December 31, 2020 $ — $ 84 $ 84 Provision 14 281 295 ALL balance at September 30, 2021 $ 14 $ 365 $ 379 Collectively evaluated for impairment $ 14 $ 365 $ 379 (Dollars in thousands) Commercial Residential Total ALL balance at June 30, 2020 $ 121 $ 52 $ 173 Charge-offs — (11) (11) Provision (121) 56 (65) ALL balance at September 30, 2020 $ — $ 97 $ 97 (Dollars in thousands) Commercial Residential Total ALL balance at December 31, 2019 $ — $ — $ — Charge-offs — (11) (11) Provision — 108 108 ALL balance at September 30, 2020 $ — $ 97 $ 97 Collectively evaluated for impairment $ — $ 97 $ 97 As of September 30, 2021, the loans in our PCI portfolio were all collectively evaluated for impairment and are segmented into three categories: commercial loans totaling $15.1 million, residential loans totaling $4.4 million, and consumer loans totaling $0.6 million, for a portfolio total of $20.1 million. The following table presents the classes of the PCI loan portfolio summarized by |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Land $ 3,465 $ 3,936 Buildings and improvements 13,393 14,350 Furniture, fixtures and equipment 16,615 17,451 Software 3,978 1,527 Construction in progress 113 49 Leasehold improvements 2,865 3,079 40,429 40,392 Accumulated depreciation (15,386) (14,189) Premises and equipment, net $ 25,043 $ 26,203 We lease certain premises and equipment under operating and finance leases. At September 30, 2021, we had lease liabilities totaling $17.1 million, of which $17.0 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $18.2 million, of which $17.8 million was related to operating leases and $0.4 million was related to finance leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At September 30, 2021, the weighted-average remaining lease term for operating leases was 12.2 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At September 30, 2021, the weighted-average remaining lease term for finance leases was 1.9 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.1%. At December 31, 2020, we had lease liabilities totaling $18.4 million, of which $18.3 million was related to operating leases and $0.2 million was related to finance leases, and right-of-use assets totaling $17.7 million, of which $17.5 million was related to operating leases and $0.2 million was related to finance leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At December 31, 2020, the weighted-average remaining lease term for operating leases was 12.9 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.9%. At December 31, 2020, the weighted-average remaining lease term for finance leases was 2.3 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.4%. The following table presents lease costs for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Operating lease cost $ 504 $ 473 $ 1,458 1,594 Short-term lease cost 2 — 4 26 Variable lease cost 9 10 29 30 Amortization of right-of-use assets, finance leases 16 13 44 49 Interest on lease liabilities, finance leases — 1 2 3 Total lease cost $ 531 $ 497 $ 1,537 $ 1,702 The following table presents future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of September 30, 2021: (Dollars in thousands) Operating Leases Finance Leases 2021 $ 468 $ 15 2022 1,946 42 2023 1,897 5 2024 1,827 5 2025 1,826 4 2026 and thereafter 12,901 — Total future minimum lease payments $ 20,865 $ 71 Less: Amounts representing interest (3,878) (1) Present value of net future minimum lease payments $ 16,987 $ 70 |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Land $ 3,465 $ 3,936 Buildings and improvements 13,393 14,350 Furniture, fixtures and equipment 16,615 17,451 Software 3,978 1,527 Construction in progress 113 49 Leasehold improvements 2,865 3,079 40,429 40,392 Accumulated depreciation (15,386) (14,189) Premises and equipment, net $ 25,043 $ 26,203 We lease certain premises and equipment under operating and finance leases. At September 30, 2021, we had lease liabilities totaling $17.1 million, of which $17.0 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $18.2 million, of which $17.8 million was related to operating leases and $0.4 million was related to finance leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At September 30, 2021, the weighted-average remaining lease term for operating leases was 12.2 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At September 30, 2021, the weighted-average remaining lease term for finance leases was 1.9 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.1%. At December 31, 2020, we had lease liabilities totaling $18.4 million, of which $18.3 million was related to operating leases and $0.2 million was related to finance leases, and right-of-use assets totaling $17.7 million, of which $17.5 million was related to operating leases and $0.2 million was related to finance leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At December 31, 2020, the weighted-average remaining lease term for operating leases was 12.9 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.9%. At December 31, 2020, the weighted-average remaining lease term for finance leases was 2.3 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.4%. The following table presents lease costs for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Operating lease cost $ 504 $ 473 $ 1,458 1,594 Short-term lease cost 2 — 4 26 Variable lease cost 9 10 29 30 Amortization of right-of-use assets, finance leases 16 13 44 49 Interest on lease liabilities, finance leases — 1 2 3 Total lease cost $ 531 $ 497 $ 1,537 $ 1,702 The following table presents future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of September 30, 2021: (Dollars in thousands) Operating Leases Finance Leases 2021 $ 468 $ 15 2022 1,946 42 2023 1,897 5 2024 1,827 5 2025 1,826 4 2026 and thereafter 12,901 — Total future minimum lease payments $ 20,865 $ 71 Less: Amounts representing interest (3,878) (1) Present value of net future minimum lease payments $ 16,987 $ 70 |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 5 – Equity Method Investments ICM In the third quarter of 2020, we acquired a portion of ICM, a direct mortgage lender, and account for our ownership as an equity method investment, initially recorded at fair value and subsequently adjusted for our share of ICM's earnings. In accordance with Rule 8-03(b)(3) of Regulation S-X, we must assess whether our equity method investment is significant. In evaluating the significance of this investment, we performed the income, asset and investment tests described in S-X 3-05 and S-X 1-02(w). Rule 8-03(b)(3) of Regulation S-X requires summarized financial information in a quarterly report if any of the three tests exceeds 20%. Under the income test, our proportionate share of our equity method investee's aggregated net income exceeded the applicable threshold of 20%, and accordingly, we are requir ed to provide summarized income statement information for this investee for all periods presented. Our share of net income from our equity method investment totaled $3.6 million and $14.6 million for the three and nine months ended September 30, 2021 . The following table presents summarized income statement information for our equity method investment for the period indicated. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Total revenues $ 35,229 $ 62,915 $ 126,106 $ 62,915 Net income 9,962 28,979 36,747 28,979 Gain on sale of loans $ 30,720 $ 39,518 $ 122,621 $ 39,518 Volume of loans sold $ 1,098,475 $ 1,215,512 $ 4,368,875 $ 1,215,512 As of September 30, 2021 and December 31, 2020 , the mortgage pipeline was $1.15 billion an d $1.54 billion, respectively. Interchecks In September 2021, we increased our equity investment in Interchecks by $4.5 million, for a total investment to $7.7 million as of September 30, 2021 . The additional investment increased our ownership percentage to 16.9% and allows us to have significant influence over the operations and decision making at Interchecks; therefore, the investment has now been accounted for as an equity method investment as of September 30, 2021 . The equity method investment in Interchecks is not considered a significant investment based on the criteria of Rule 8-03(b)(3) of Regulation S-X. We have multiple business relationships with Interchecks beyond our investment. Interchecks is a banking client of ours and utilizes the Victor platform, which provides revenue to us. Additionally, Interchecks provides management services to MVB Technology, which provides revenue to Interchecks. Such revenues have not been material. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits The following table presents the components of deposits as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Noninterest-bearing demand $ 999,328 $ 715,791 Interest-bearing demand 767,268 496,502 Savings and money markets 530,538 545,501 Time deposits, including CDs and IRAs 101,806 224,595 Total deposits $ 2,398,940 $ 1,982,389 Time deposits that meet or exceed the FDIC insurance limit $ 9,563 $ 16,955 The following table presents the maturities of time deposits for the twelve month periods ended September 30: (Dollars in thousands) 2022 $ 64,757 2023 21,466 2024 10,794 2025 3,726 2026 1,063 Total $ 101,806 As of September 30, 2021, overdrawn deposit accounts totaling $54 thousand were reclassified as loan balances. |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the Federal Home Loan Bank ("FHLB") of Pittsburgh, Pennsylvania. As of September 30, 2021, the Bank's maximum borrowing capacity with the FHLB was $454.4 million and the remaining borrowing capacity was $443.0 million, with the difference being deposit letters of credit. Short-term borrowings As of September 30, 2021 and December 31, 2020, the Bank had no borrowings under Fed Funds purchased outstanding. The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ — $ — Average balance during the period 33,914 68,407 Maximum month-end balance 130,047 154,248 Weighted-average rate during the period 0.36 % 0.58 % Weighted-average rate at end of period — % — % Long-term borrowings As of September 30, 2021 and December 31, 2020, the Bank had no long-term borrowings with the FHLB or the Federal Reserve Bank. Repurchase agreements Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase (“repurchase agreements”) with clients representing funds deposited by clients, on an overnight basis, that are collateralized by investment securities owned by us. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between us and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in liabilities consist of client accounts and securities which are pledged on an individual security basis. We monitor the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected in the amount of cash received in connection with the transaction. The primary risk with our repurchase agreements is the market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. As of September 30, 2021 and December 31, 2020, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $11.5 million and $10.7 million at September 30, 2021 and December 31, 2020, respectively, and were comprised of United States government agency securities and United States sponsored mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ 11,139 $ 10,266 Average balance during the period 10,677 9,856 Maximum month-end balance 11,361 10,505 Weighted-average rate during the period 0.14 % 0.23 % Weighted-average rate at end of period 0.12 % 0.14 % Subordinated debt The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ 72,966 $ 43,407 Average balance during the period 43,786 7,568 Maximum month-end balance 72,966 43,524 Weighted-average rate during the period 0.17 % 3.45 % Weighted-average rate at end of period 4.03 % 4.02 % In September 2021, MVB completed the private placement of $30 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 254 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In November 2020, MVB completed the private placement of $40 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 401 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. The weighted-average rate during the period of nine months ended September 30, 2021 exceeds the coupon rate of the 4.25% subordinated debt due to the impact of the amortization of the issuance costs to interest expense. In March 2007, we completed the private placement of $4 million Floating Rate, Trust Preferred Securities through our subsidiary, MVB Financial Statutory Trust I (the “Trust”). We established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The proceeds from the sale of the Trust Preferred Securities will be loaned to us under subordinated Debentures (the “Debentures”) issued to the Trust pursuant to an Indenture. The Debentures are the only asset of the Trust. The Trust Preferred Securities have been issued to a pooling vehicle that will use the distributions on the Trust Preferred Securities to securitize note obligations. The securities issued by the Trust are includable for regulatory purposes as a component of our Tier 1 capital. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by us since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three-month LIBOR Rate. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by us of the Trust’s obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. |
Pension and Supplemental Execut
Pension and Supplemental Executive Retirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Supplemental Executive Retirement Plans | Note 8 – Pension and Supplemental Executive Retirement Plans Supplemental executive retirement plan In June 2017, we, along with MVB Mortgage, approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief Executive Officer of MVB Mortgage is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. As the executive completed three years of continuous employment with MVB Mortgage prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive monthly installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.3 million as of September 30, 2021 and $1.2 million as of December 31, 2020. Service costs were not material for any periods covered by this report. Pension plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee’s compensation. Accruals under the plan were frozen as of May 31, 2014. Freezing the plan resulted in a remeasurement of the pension obligations and plan assets as of the freeze date. The pension obligation was remeasured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.5%. The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of September 30, 2021 and 2020 for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Service cost $ — $ — $ — $ — Interest cost 78 91 234 273 Expected return on plan assets (118) (109) (354) (327) Amortization of net actuarial loss 127 105 381 315 Amortization of prior service cost — — — — Net periodic benefit cost $ 87 $ 87 $ 261 $ 261 Contributions paid $ — $ 119 $ 3,835 $ 587 |
Stock Offerings
Stock Offerings | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stock Offerings | Note 9 – Stock Offerings In December 2020, we issued a notice of redemption to redeem all of our outstanding shares of Convertible Noncumulative Perpetual Preferred Stock, Series B, par value $1.00 per share, with a liquidation preference of $1,000 per share (the “Series B Preferred Stock”) and all of our outstanding shares of Convertible Noncumulative Perpetual Preferred Stock, Series C, par value $1.00 per share, with a liquidation preference of $1,000 per share (the “Series C Preferred Stock, together with the Series B Preferred Stock, referred to herein as the “Preferred Stock”), at a redemption price per share equal to $10,000, plus declared and unpaid dividends of $46.03 per share of Series B Preferred Stock, and $49.86 per share of Series C Preferred Stock, for the period from and including December 31, 2020, to but excluding January 28, 2021, the date of redemption (the “Preferred Stock Redemption”). The Preferred Stock Redemption is in accordance with the terms of our Articles of Incorporation, as amended. All outstanding shares of our preferred stock were redeemed in January 2021. In April 2021, the Bank entered into a Stock Purchase Agreement with Trabian, a leading software development firm servicing financial institutions. Pursuant to the agreement, a portion of the Bank's purchase consideration for Trabian included 17,597 unregistered shares of MVB common stock. For more information regarding the Trabian acquisition, see Note 15 – Acquisitions and Divestitures . In August 2021, the Bank entered into a Stock Purchase Agreement with Interchecks, a leading payment disbursement platform. Pursuant to the agreement, a portion of the Bank's purchase consideration for Interchecks included 107,928 unregistered shares of MVB common stock. For more information regarding the Interchecks investment, see Note 5 – Equity Method Investments. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 10 – Fair Value of Financial InstrumentsThe following table presents the carrying values and estimated fair values of our financial instruments as of the periods indicated: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) September 30, 2021 Financial Assets: Cash and cash equivalents $ 390,081 $ 390,081 $ 390,081 $ — $ — Certificates of deposit with banks 9,582 9,657 — 9,657 — Securities available-for-sale 439,023 439,023 — 397,609 41,414 Equity securities 29,809 29,809 729 — 29,080 Loans receivable, net 1,738,999 1,748,759 — — 1,748,759 Servicing Assets 2,667 2,667 — — 2,667 Interest rate swap 8,444 8,444 — 8,444 — Fair value hedge 1,699 1,699 — 1,699 — Accrued interest receivable 8,513 8,513 — 2,621 5,892 Bank-owned life insurance 42,011 42,011 — 42,011 — Financial Liabilities: Deposits $ 2,398,940 $ 2,375,650 $ — $ 2,375,650 $ — Repurchase agreements 11,139 11,139 — 11,139 — FHLB and other borrowings — — — — — Interest rate swap 8,444 8,444 — 8,444 — Fair value hedge 1,129 1,129 — 1,129 — Accrued interest payable 802 802 — 802 — Subordinated debt 72,966 73,825 — 73,825 — December 31, 2020 Financial assets: Cash and cash equivalents $ 263,893 $ 263,893 $ 263,893 $ — $ — Certificates of deposits with banks 11,803 11,986 — 11,986 — Securities available-for-sale 410,624 410,624 — 366,945 43,679 Equity securities 27,585 27,585 472 — 27,113 Loans held-for-sale 1,062 1,062 — 1,062 — Loans receivable, net 1,427,900 1,434,275 — — 1,434,275 Mortgage servicing rights 2,942 2,942 — — 2,942 Interest rate swap 13,822 13,822 — 13,822 — Fair value hedge 2,215 2,215 — 2,215 Accrued interest receivable 7,793 7,793 — 2,770 5,023 Bank-owned life insurance 41,262 41,262 — 41,262 — Financial liabilities: Deposits $ 1,982,389 $ 1,964,860 $ — $ 1,964,860 $ — Repurchase agreements 10,266 10,266 — 10,266 — Interest rate swap 13,822 13,822 — 13,822 — Fair value hedge 2,141 2,141 — 2,141 — Accrued interest payable 572 572 — 572 — Subordinated debt 43,407 45,536 — 45,536 — |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 – Fair Value Measurements Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time of our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. The methods of determining the fair value of assets and liabilities presented in this footnote are consistent with our methodologies disclosed in Note 1 - Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data , of the 2020 Form 10-K. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We classified investments in government securities as Level II instruments and valued them using the market approach. The following measurements are made on a recurring basis. Available-for-sale investment securities – Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level I securities include those traded on an active exchange, such as the New York Stock Exchange, United States Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level II securities include mortgage-backed securities issued by government-sponsored entities and private label entities, municipal bonds and corporate debt securities. There have been no changes in valuation techniques for the three and nine months ended September 30, 2021. Valuation techniques are consistent with techniques used in prior periods. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. We classified investments in government securities as Level II instruments and valued them using the market approach. Equity securities – Certain equity securities are recorded at fair value on both a recurring and nonrecurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. The valuation methodologies utilized may include significant unobservable inputs. There have been no changes in valuation techniques for the three and nine months ended September 30, 2021. Valuation techniques are consistent with techniques used in prior periods. Loans held-for-sale – The fair value of mortgage loans held-for-sale is determined, when possible, using quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. Interest rate swap – Interest rate swaps are recorded at fair value based on third-party vendors who compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data. Fair value hedge – Treated like an interest rate swap, fair value hedges are recorded at fair value based on third-party vendors who compile prices from various sources and may determine fair value of identical or similar instruments by using pricing models that consider observable market data. The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods indicated by level within the fair value hierarchy: September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 41,971 $ — $ 41,971 United States sponsored mortgage-backed securities — 85,271 — 85,271 United States treasury securities 82,422 — — 82,422 Municipal securities — 166,009 41,414 207,423 Other securities — 14,436 — 14,436 Equity securities 729 — — 729 Interest rate swap — 8,444 — 8,444 Fair value hedge — 1,699 — 1,699 Liabilities: Interest rate swap — 8,444 — 8,444 Fair value hedge — 1,129 — 1,129 December 31, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 56,992 $ — $ 56,992 United States sponsored mortgage-backed securities — 95,769 — 95,769 Municipal securities — 188,208 43,679 231,887 Other securities — 18,476 — 18,476 Equity securities 472 — — 472 Loans held-for-sale — 1,062 — 1,062 Interest rate swap — 13,822 — 13,822 Fair value hedge — 2,215 — 2,215 Liabilities: Interest rate swap — 13,822 — 13,822 Fair value hedge — 2,141 — 2,141 The following table represents recurring Level III assets as of the periods indicated: (Dollars in thousands) Interest Rate Lock Commitments Municipal Securities Total Balance at June 30, 2021 $ — $ 39,770 $ 39,770 Realized and unrealized gains included in earnings — 5 5 Purchase of securities — 1,757 1,757 Maturities/calls — (74) (74) Unrealized gain included in other comprehensive income (loss) — 3,300 3,300 Unrealized loss included in other comprehensive income (loss) — (3,344) (3,344) Balance at September 30, 2021 $ — $ 41,414 $ 41,414 Balance at December 31, 2020 $ — $ 43,679 $ 43,679 Realized and unrealized gains included in earnings — 25 25 Purchase of securities — 3,575 3,575 Maturities/calls — (5,248) (5,248) Unrealized gain included in other comprehensive income (loss) — 7,720 7,720 Unrealized loss included in other comprehensive income (loss) — (8,337) (8,337) Balance at September 30, 2021 $ — $ 41,414 $ 41,414 Balance at June 30, 2020 $ 7,338 $ 40,457 $ 47,795 Realized and unrealized losses included in earnings (7,338) — (7,338) Purchase of securities — 368 368 Maturities/calls — (61) (61) Unrealized gain included in other comprehensive income (loss) — 1,810 1,810 Unrealized loss included in other comprehensive income (loss) — (466) (466) Balance at September 30, 2020 $ — $ 42,108 $ 42,108 Balance at December 31, 2019 $ 1,660 $ 37,259 $ 38,919 Realized and unrealized gains included in earnings (1,660) 3 (1,657) Purchase of securities — 21,147 21,147 Maturities/calls — (15,574) (15,574) Unrealized gain included in other comprehensive income (loss) — 5,872 5,872 Unrealized loss included in other comprehensive income (loss) — (6,599) (6,599) Balance at September 30, 2020 $ — $ 42,108 $ 42,108 Assets Measured on a Nonrecurring Basis We may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a nonrecurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 2021 and 2020 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other noninterest expense. Impaired loans – Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. For a majority of impaired real estate-related loans, we obtain a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. Other real estate owned – Other real estate owned, which is obtained through the Bank’s foreclosure process, is valued utilizing the appraised collateral value. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. At the time the foreclosure is completed, we obtain a current external appraisal. Other debt securities – Certain debt securities are recorded at fair value on a nonrecurring basis. These other debt securities, which include preferred member interest in an equity method investment, are securities without a readily determinable fair value and are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. Equity securities – Certain equity securities are recorded at fair value on a nonrecurring basis. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. The following table presents the fair value of these assets as of the periods indicated: September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 15,114 $ 15,114 Other real estate owned — — 3,442 3,442 December 31, 2020 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,098 $ 14,098 Other real estate owned — — 5,730 5,730 There were no changes to the fair value of other debt securities or equity securities measured on a nonrecurring basis as of September 30, 2021. The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods indicated: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range September 30, 2021 Nonrecurring measurements: Impaired loans $ 15,114 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 3,442 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 41,414 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% December 31, 2020 Nonrecurring measurements: Impaired loans $ 14,098 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 5,730 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 43,679 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors such as local economic conditions. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12 – Earnings per Share We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. The following table presents our calculation of EPS for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands except shares and per share data) 2021 2020 2021 2020 Numerator for basic earnings per share: Net income $ 11,828 $ 6,491 $ 29,160 $ 25,573 Less: Dividends on preferred stock — 116 35 345 Net income available to common shareholders - basic $ 11,828 $ 6,375 $ 29,125 $ 25,228 Numerator for diluted earnings per share: Net income available to common shareholders - diluted $ 11,828 $ 6,375 $ 29,125 $ 25,228 Denominator: Total weighted-average shares outstanding 11,880,348 11,948,989 11,684,570 11,948,857 Effect of dilutive stock options and restricted stock units 943,961 167,429 881,239 236,280 Total diluted weighted-average shares outstanding 12,824,309 12,116,418 12,565,809 12,185,137 Earnings per share - basic $ 1.00 $ 0.53 $ 2.49 $ 2.11 Earnings per share - diluted $ 0.92 $ 0.53 $ 2.32 $ 2.07 Stock options not included in the computation of diluted EPS because the effect would be antidilutive 179,694 849,589 185,944 815,089 |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 13 – Comprehensive Income The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Unrealized holding gains $ 529 $ 35 $ 3,380 $ 865 Gain on sale of available-for-sale securities (124) (9) (793) (234) Income tax effect 405 26 2,587 631 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (127) (105) (381) (315) Salaries and employee benefits 30 28 89 85 Income tax effect (97) (77) (292) (230) Net of tax Investment hedge Carrying value adjustment (14) (95) (637) 738 Interest on investment securities 3 26 149 (199) Income tax effect (11) (69) (488) 539 Net of tax Total reclassifications $ 297 $ (120) $ 1,807 $ 940 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at June 30, 2021 $ 3,136 $ (3,301) $ 164 $ (1) Other comprehensive income (loss) before reclassification 183 (700) — (517) Amounts reclassified from AOCI (405) 97 11 (297) Net current period OCI (222) (603) 11 (814) Balance at September 30, 2021 $ 2,914 $ (3,904) $ 175 $ (815) Balance at December 31, 2020 7,586 (5,047) (313) 2,226 Other comprehensive income (loss) before reclassification (2,085) 851 — (1,234) Amounts reclassified from AOCI (2,587) 292 488 (1,807) Net current period OCI (4,672) 1,143 488 (3,041) Balance at September 30, 2021 $ 2,914 $ (3,904) $ 175 $ (815) Balance at June 30, 2020 $ 3,771 $ (5,388) $ (576) $ (2,193) Other comprehensive income (loss) before reclassification 895 (74) — 821 Amounts reclassified from AOCI (26) 77 69 120 Net current period OCI 869 3 69 941 Balance at September 30, 2020 $ 4,640 $ (5,385) $ (507) $ (1,252) Balance at December 31, 2019 2,942 (4,295) 32 (1,321) Other comprehensive income (loss) before reclassification 2,329 (1,320) — 1,009 Amounts reclassified from AOCI (631) 230 (539) (940) Net current period OCI 1,698 (1,090) (539) 69 Balance at September 30, 2020 $ 4,640 $ (5,385) $ (507) $ (1,252) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14 – Segment Reporting We have identified three reportable segments: CoRe banking; mortgage banking; and financial holding company. Revenue from CoRe banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. Our Fintech division, MVB Edge Ventures, MVB CDC, Chartwell, Trabian and Paladin Fraud are included in the CoRe banking segment. Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage loan origination process. Prior to July 1, 2020, the mortgage banking services were conducted by a subsidiary of the Bank, Potomac Mortgage Group ("PMG"). In July 2020, we announced the completion of PMG’s combination with Intercoastal Mortgage Company to form ICM. We have recognized our ownership of ICM as an equity method investment. Income related to this equity method investment is included in the Mortgage Banking segment. Revenue from financial holding company activities is mainly comprised of intercompany service income and dividends. The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods indicated: Three Months Ended September 30, 2021 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 20,383 $ 105 $ 1 $ (5) $ 20,484 Interest expense 912 — 481 (5) 1,388 Net interest income 19,471 105 (480) — 19,096 Provision for loan losses 379 1 — — 380 Net interest income (loss) after provision for loan losses 19,092 104 (480) — 18,716 Total noninterest income 20,211 3,546 2,002 (3,808) 21,951 Noninterest Expenses: Salaries and employee benefits 13,097 47 3,384 — 16,528 Other expense 11,654 (198) 1,653 (3,808) 9,301 Total noninterest expenses 24,751 (151) 5,037 (3,808) 25,829 Income (loss) before income taxes 14,552 3,801 (3,515) — 14,838 Income tax expense (benefit) 2,973 922 (731) — 3,164 Net income (loss) before noncontrolling interest 11,579 2,879 (2,784) — 11,674 Net loss attributable to noncontrolling interest 154 — — — 154 Net income (loss) attributable to parent $ 11,733 $ 2,879 $ (2,784) $ — $ 11,828 Preferred stock dividends — — — — — Net income (loss) available to common shareholders $ 11,733 $ 2,879 $ (2,784) $ — $ 11,828 Capital expenditures for the three months ended September 30, 2021 $ 1,975 $ — $ — $ — $ 1,975 Total assets as of September 30, 2021 2,827,019 53,261 342,677 (434,133) 2,788,824 Total assets as of December 31, 2020 2,343,556 58,140 284,943 (355,163) 2,331,476 Goodwill as of September 30, 2021 3,988 — — — 3,988 Goodwill as of December 31, 2020 2,350 — — — 2,350 Three Months Ended September 30, 2020 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 18,737 $ 78 $ — $ (188) $ 18,627 Interest expense 2,553 232 20 (188) 2,617 Net interest income 16,184 (154) (20) — 16,010 Provision for loan losses 8,631 — — — 8,631 Net interest income (loss) after provision for loan losses 7,553 (154) (20) — 7,379 Total noninterest income 3,106 16,793 1,481 (1,982) 19,398 Noninterest Expense: Salaries and employee benefits 7,526 82 2,911 — 10,519 Other expense 8,389 68 1,271 (1,982) 7,746 Total noninterest expenses 15,915 150 4,182 (1,982) 18,265 Income (loss) before income taxes (5,256) 16,489 (2,721) — 8,512 Income tax expense (benefit) (1,556) 4,245 (668) — 2,021 Net income (loss) $ (3,700) $ 12,244 $ (2,053) $ — $ 6,491 Preferred stock dividends — — 116 — 116 Net income (loss) available to common shareholders $ (3,700) $ 12,244 $ (2,169) $ — $ 6,375 Capital expenditures for the three months ended September 30, 2020 $ 1,652 $ — $ — $ — $ 1,652 Nine Months Ended September 30, 2021 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 60,078 $ 307 $ 2 $ (7) $ 60,380 Interest expense 3,294 — 1,437 (7) 4,724 Net interest income 56,784 307 (1,435) — 55,656 Release of allowance for loan losses (541) (1) — — (542) Net interest income (loss) after release of allowance for loan losses 57,325 308 (1,435) — 56,198 Total noninterest income 36,634 14,499 5,892 (8,972) 48,053 Noninterest Expenses: Salaries and employee benefits 32,323 47 9,730 — 42,100 Other expense 31,261 (112) 4,073 (8,972) 26,250 Total noninterest expenses 63,584 (65) 13,803 (8,972) 68,350 Income (loss) before income taxes 30,375 14,872 (9,346) — 35,901 Income tax expense (benefit) 5,290 3,606 (1,890) — 7,006 Net income (loss) before noncontrolling interest 25,085 11,266 (7,456) — 28,895 Net loss attributable to noncontrolling interest 265 — — — 265 Net income (loss) attributable to parent $ 25,350 $ 11,266 $ (7,456) $ — $ 29,160 Preferred stock dividends — — 35 — 35 Net income (loss) available to common shareholders $ 25,350 $ 11,266 $ (7,491) $ — $ 29,125 Capital expenditures for the nine months ended September 30, 2021 $ 4,127 $ — $ — $ — $ 4,127 Nine Months Ended September 30, 2020 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 56,693 $ 6,034 $ 2 $ (1,629) $ 61,100 Interest expense 9,418 3,136 78 (2,171) 10,461 Net interest income 47,275 2,898 (76) 542 50,639 Provision for loan losses 16,361 4 — — 16,365 Net interest income (loss) after provision for loan losses 30,914 2,894 (76) 542 34,274 Total noninterest income 24,394 53,140 4,664 (6,437) 75,761 Noninterest Expenses: Salaries and employee benefits 19,562 21,550 8,248 — 49,360 Other expense 24,172 4,780 3,837 (5,895) 26,894 Total noninterest expenses 43,734 26,330 12,085 (5,895) 76,254 Income (loss) before income taxes 11,574 29,704 (7,497) — 33,781 Income tax expense (benefit) 2,336 7,696 (1,824) — 8,208 Net income (loss) $ 9,238 $ 22,008 $ (5,673) $ — $ 25,573 Preferred stock dividends — — 345 — 345 Net income (loss) available to common shareholders $ 9,238 $ 22,008 $ (6,018) $ — $ 25,228 Capital Expenditures for the nine-month period ended September 30, 2020 $ 4,092 $ 99 $ 20 $ — $ 4,211 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 15 – Acquisitions and Divestitures Flexia Payments, LLC In February 2021, the Bank entered into an agreement to acquire an 80% interest in Flexia. The Bank invested approximately $2.5 million for the 80% interest. At the time of acquisition, Flexia had no assets or liabilities. Soon after the Bank's investment, Flexia purchased a license for technology that allows users to access a reloadable account that combines a debit card account and casino gaming accounts into one card and to utilize them for non-cash transactions at participating casinos, for approximately $1 million for exclusive use in the United States and Canada. On the acquisition date, $0.5 million was recorded on the consolidated balance sheet for the 20% noncontrolling interest. Trabian Technology, Inc. In April 2021, the Bank entered into a Stock Purchase Agreement with Trabian, a leading software development firm servicing financial institutions. Pursuant to the agreement, the Bank invested approximately $1.6 million, including unregistered shares of MVB common stock, for the 80% interest. At the time of acquisition, Trabian had assets totaling $0.8 million and liabilities totaling $0.7 million. As a result of the transaction, the Bank recorded goodwill of $1.6 million and intangible assets related to Trabian's customer relationships and trade name totaling $0.6 million. On the acquisition date, $0.4 million was recorded on the consolidated balance sheet for the 20% noncontrolling interest. Sale of Southern Market, WV Banking Centers |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying unaudited consolidated financial statements include the accounts of MVB and our subsidiaries, including the Bank and the Bank’s subsidiaries. |
Basis of Presentation | nerally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All material intercompany accounts and transactions have been eliminated in consolidation. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2020 has been derived from audited financial statements included in the 2020 Form 10-K. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2020 Form 10-K. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. In 2021, the Bank entered into agreements to acquire majority interests in both Flexia and in Trabian and to divest a minority interest in MVB Technology. Although we own, through our subsidiaries, an 80.0% interest in each of Flexia and Trabian and a 93.4% interest in MVB Technology, we are required to consolidate 100% of Flexia, Trabian and MVB Technology within the consolidated financial statements. The remaining 20.0% of Flexia and Trabian and 6.6% of MVB Technology are accounted for separately as noncontrolling interests within the consolidated financial statements. Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of these entities. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting; those that are not consolidated or accounted for using the equity method of accounting are accounted for under cost or fair value accounting. For these investments accounted for under the equity method, we record our investment in non-consolidated affiliates and the portion of income or loss in equity in earnings of non-consolidated affiliates. We periodically evaluate these investments for impairment. As of September 30, 2021, we hold two equity method investments. Preparation of our consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based upon the best available information and actual results could differ from those estimates. Estimates that are particularly significant to the consolidated financial statements relate to the determination of the allowance for loan losses (“ALL”), purchased credit impaired (“PCI”) loans, derivative instruments, goodwill and deferred tax assets and liabilities. |
Reclassification | In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
Subsequent Events | We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , in April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , in May 2019, ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 and in November 2019, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , all of which clarifies codification and corrects unintended application of the guidance. The new guidance replaces the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. PCI loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance was initially effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. On November 15, 2019, the FASB issued ASU 2019-10, Financial Investments – Credit Issues (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which finalizes a delay in the effective date of the standard for smaller reporting companies (“SRCs”). Effective in the first quarter of 2022, we will lose our SRC designation. However, because we met the criteria to be an SRC as of the issuance date of this guidance, we are eligible for the delay in effective date and plan to adopt this standard for fiscal years ending after December 15, 2022. We expect to recognize a one-time cumulative effect adjustment to the ALL as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In that regard, we have formed a cross-functional implementation team. The team is working to develop an implementation plan which will include assessment and documentation of processes, internal controls and data sources; model development and documentation; and system configuration, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of this standard. The adoption of this standard could result in an increase in the ALL as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts as of the adoption date. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirement for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The updates in this ASU are part of the disclosure framework project ASU 2018-14 and modify the disclosure requirements under Accounting Standards Codification (“ASC”) 715-20 for employers that sponsor defined benefit pension or other postretirement plans. Those modifications include the removal and addition of disclosure requirements as well as clarifying specific disclosure requirements. The ASU removed the following disclosures: 1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; 2) the amount and timing of plan assets expected to be returned to the employer; 3) the disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law; 4) related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan; 5) for nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy; however, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets and 6) for public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the (i) aggregate of the service and interest cost components of net periodic benefit costs and (ii) benefit obligation for postretirement health care benefits. The ASU added the following disclosures: 1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and 2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU then clarified the following disclosures: 1) the projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs more than plan assets; and 2) the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs more than plan assets. ASU 2018-14 is effective for public business entities for fiscal years ending after December 15, 2020. As ASU 2018-04 is specific to disclosure requirements, adoption did not have a material impact on our interim consolidated financial statements. Our year-end disclosures will be revised to comply with the new requirements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . ASU 2020-01 clarifies the interaction between accounting standards related to equity securities, equity method investments and certain derivatives, including accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The amendments were effective for us beginning January 1, 2021 and adoption did not have a material effect on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments provide optional expedients and exceptions for certain contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits entities to not apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. In January 2021, ASU 2021-01 was issued by the FASB and clarified that certain exceptions in reference rate reform apply to derivatives that are affected by the discounting transition. We will continue to assess the impact as the reference rate transition occurs. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Investment Securities Available-for-sale | The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods indicated: September 30, 2021 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 42,226 $ 342 $ (597) $ 41,971 United States sponsored mortgage-backed securities 85,754 401 (884) 85,271 United States treasury securities 82,738 — (316) 82,422 Municipal securities 202,717 5,182 (476) 207,423 Other debt securities 7,500 — — 7,500 Total debt securities 420,935 5,925 (2,273) 424,587 Other securities 14,282 177 (23) 14,436 Total investment securities available-for-sale $ 435,217 $ 6,102 $ (2,296) $ 439,023 December 31, 2020 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 53,207 $ 872 $ (210) $ 53,869 United States sponsored mortgage-backed securities 94,968 972 (171) 95,769 United States treasury securities 3,000 123 — 3,123 Municipal securities 223,642 8,327 (82) 231,887 Other debt securities 7,500 — — 7,500 Total debt securities 382,317 10,294 (463) 392,148 Other securities 18,401 146 (71) 18,476 Total investment securities available-for-sale $ 400,718 $ 10,440 $ (534) $ 410,624 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period indicated: September 30, 2021 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 5 $ 5 After one year, but within five years 86,798 86,542 After five years, but within ten years 34,205 35,079 After ten years 299,927 302,961 Total $ 420,935 $ 424,587 |
Investments in an Unrealized Loss Position | The following tables present investments in an unrealized loss position as of the periods indicated: September 30, 2021 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (20) $ 4,334 $ (138) $ 18,113 $ (459) United States sponsored mortgage-backed securities (27) 57,861 (803) 4,431 (81) United States treasury securities (18) 82,423 (316) — — Municipal securities (56) 40,069 (430) 2,898 (46) Other securities (1) — — 1,477 (23) $ 184,687 $ (1,687) $ 26,919 $ (609) December 31, 2020 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (27) $ 19,021 $ (68) $ 12,574 $ (142) United States sponsored mortgage-backed securities (9) 15,331 (155) 3,349 (16) Municipal securities (14) 11,856 (82) — — Other securities (5) 3,947 (71) — — $ 50,155 $ (376) $ 15,923 $ (158) |
Realized Gain (Loss) on Investments | The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Sales of available-for-sale securities $ 28,049 $ 7,379 $ 103,365 $ 48,579 Gains, gross 547 69 3,411 899 Losses, gross 18 34 31 34 Sales of equity securities $ — $ 669 $ 61 $ 669 Gain, gross — 18 5 48 Losses, gross — — — — Unrealized holding gains on equity securities 536 94 1,750 111 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Components of Loans in the Consolidated Balance Sheet | The following table presents the components of loans as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial and non-residential real estate $ 1,430,290 $ 1,141,114 Residential real estate 269,967 240,264 Home equity 23,777 30,828 Consumer 22,144 3,156 Total 1,746,178 1,415,362 Purchased credit impaired loans: Commercial and non-residential real estate 15,079 21,008 Residential real estate 4,430 16,943 Consumer 601 1,488 Total purchased credit impaired loans 20,110 39,439 Total Loans $ 1,766,288 $ 1,454,801 Deferred loan origination costs and (fees), net (2,102) (1,057) Loans receivable $ 1,764,186 $ 1,453,744 |
Impaired Loans by Class | The following table presents impaired loans by class, excluding PCI loans, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of the periods indicated: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance September 30, 2021 Commercial Commercial business $ 5,931 $ 3,792 $ 3,646 $ 9,577 $ 11,283 Commercial real estate 676 243 495 1,171 1,341 Acquisition and development — — 1,401 1,401 2,816 Total commercial 6,607 4,035 5,542 12,149 15,440 Residential — — 6,971 6,971 7,222 Home equity 69 69 26 95 95 Consumer — — 3 3 3 Total impaired loans $ 6,676 $ 4,104 $ 12,542 $ 19,218 $ 22,760 December 31, 2020 Commercial Commercial business $ 3,431 $ 1,032 $ 5,653 $ 9,084 $ 10,440 Commercial real estate 772 264 944 1,716 1,864 Acquisition and development — — 2,534 2,534 3,939 Total commercial 4,203 1,296 9,131 13,334 16,243 Residential — — 1,960 1,960 2,232 Home equity — — 95 95 95 Consumer — — 5 5 5 Total impaired loans $ 4,203 $ 1,296 $ 11,191 $ 15,394 $ 18,575 (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial $ 15,079 $ 21,008 Residential 4,430 16,943 Consumer 601 1,488 Outstanding balance $ 20,110 $ 39,439 Carrying amount, net of allowance $ 20,110 $ 39,355 |
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized | The following table presents the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized for the periods indicated: Three Months Ended September 30, 2021 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial business $ 7,223 $ — $ — $ 7,785 $ — $ — Commercial real estate 1,943 11 11 3,264 26 26 Acquisition and development 340 — — 375 10 54 Total commercial 9,506 11 11 11,424 36 80 Residential 7,029 3 3 3,085 5 5 Home equity 69 — — 69 — — Consumer 3 — — 5 — — Total $ 16,607 $ 14 $ 14 $ 14,583 $ 41 $ 85 Nine Months Ended September 30, 2021 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial business $ 6,701 $ — $ — $ 5,225 $ — $ — Commercial real estate 2,125 33 33 3,124 77 79 Acquisition and development 348 — — 1,487 67 73 Total commercial 9,174 33 33 9,836 144 152 Residential 5,418 11 10 2,683 14 14 Home equity 69 — — 94 — — Consumer 3 — — 8 — — Total $ 14,664 $ 44 $ 43 $ 12,621 $ 158 $ 166 |
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories | The following table represents the classes of the loan portfolio, excluding PCI loans, summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods indicated: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total September 30, 2021 Commercial Commercial business $ 589,196 $ 13,623 $ 12,910 $ 3,605 $ 619,334 Commercial real estate 508,729 22,004 33,687 156 564,576 Acquisition and development 86,205 7,624 4,149 1,064 99,042 SBA PPP 147,338 — — — 147,338 Total commercial 1,331,468 43,251 50,746 4,825 1,430,290 Residential 259,864 917 8,693 493 269,967 Home equity 23,304 378 — 95 23,777 Consumer 22,123 18 3 — 22,144 Total Loans $ 1,636,759 $ 44,564 $ 59,442 $ 5,413 $ 1,746,178 December 31, 2020 Commercial Commercial business $ 496,222 $ 9,529 $ 17,045 $ 1,095 $ 523,891 Commercial real estate 356,544 32,044 34,001 533 423,122 Acquisition and development 80,771 25,001 4,184 2,170 112,126 SBA PPP 81,975 — — — 81,975 Total commercial 1,015,512 66,574 55,230 3,798 1,141,114 Residential 236,250 948 2,896 170 240,264 Home equity 30,277 381 144 26 30,828 Consumer 3,124 32 — — 3,156 Total Loans $ 1,285,163 $ 67,935 $ 58,270 $ 3,994 $ 1,415,362 The following table presents the classes of the PCI loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods indicated: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total September 30, 2021 Commercial Commercial business $ 2,360 $ 158 $ 211 $ 209 $ 2,938 Commercial real estate 7,784 1,549 2,189 73 11,595 Acquisition and development 259 78 163 46 546 Total commercial 10,403 1,785 2,563 328 15,079 Residential 3,586 — 844 — 4,430 Consumer 36 — 563 2 601 Total Loans $ 14,025 $ 1,785 $ 3,970 $ 330 $ 20,110 December 31, 2020 Commercial Commercial business $ 12,263 $ 136 $ 345 $ 4,860 $ 17,604 Commercial real estate 982 3 263 21 1,269 Acquisition and development 1,900 — — 235 2,135 Total commercial 15,145 139 608 5,116 21,008 Residential 15,157 — 1,665 121 16,943 Consumer 1,256 — — 232 1,488 Total Loans $ 31,558 $ 139 $ 2,273 $ 5,469 $ 39,439 |
Classes of the Loan Portfolio Summarized by Aging Categories | The following table presents the classes of the loan portfolio, excluding PCI loans, summarized by aging categories of performing loans and non-accrual loans as of the periods indicated: (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Total Loans Non-Accrual 90+ Days Still Accruing September 30, 2021 Commercial Commercial business $ 608,407 $ 6,315 $ 1,052 $ 3,560 $ 10,927 $ 619,334 $ 9,102 $ — Commercial real estate 564,420 — — 156 156 564,576 495 — Acquisition and development 97,966 — — 1,076 1,076 99,042 1,157 — SBA PPP 147,338 — — — — 147,338 — — Total commercial 1,418,131 6,315 1,052 4,792 12,159 1,430,290 10,754 — Residential 268,281 726 415 545 1,686 269,967 6,601 — Home equity 23,550 117 15 95 227 23,777 95 — Consumer 22,138 3 3 — 6 22,144 3 — Total Loans $ 1,732,100 $ 7,161 $ 1,485 $ 5,432 $ 14,078 $ 1,746,178 $ 17,453 $ — December 31, 2020 Commercial Commercial business $ 521,799 $ 1,040 $ 33 $ 1,019 $ 2,092 $ 523,891 $ 8,601 $ — Commercial real estate 422,343 34 212 533 779 423,122 944 — Acquisition and development 109,686 — — 2,440 2,440 112,126 2,534 — SBA PPP 81,975 — — — — 81,975 — — Total commercial 1,135,803 1,074 245 3,992 5,311 1,141,114 12,079 — Residential 235,420 2,058 1,969 817 4,844 240,264 1,534 — Home equity 30,369 289 75 95 459 30,828 95 — Consumer 3,156 — — — — 3,156 5 — Total Loans $ 1,404,748 $ 3,421 $ 2,289 $ 4,904 $ 10,614 $ 1,415,362 $ 13,713 $ — The following table presents the classes of the PCI loan portfolio summarized by aging categories of performing loans and non-accrual loans as of the periods indicated: (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Total Loans September 30, 2021 Commercial Commercial business $ 2,519 $ — $ — $ 419 $ 419 $ 2,938 Commercial real estate 7,967 640 — 2,988 3,628 11,595 Acquisition and development 146 177 — 223 400 546 Total commercial 10,632 817 — 3,630 4,447 15,079 Residential 3,522 — 64 844 908 4,430 Consumer 36 — — 565 565 601 Total Loans $ 14,190 $ 817 $ 64 $ 5,039 $ 5,920 $ 20,110 December 31, 2020 Commercial Commercial business $ 16,264 $ 71 $ 65 $ 1,204 $ 1,340 $ 17,604 Commercial real estate 1,157 — — 112 112 1,269 Acquisition and development 2,135 — — — — 2,135 Total commercial 19,556 71 65 1,316 1,452 21,008 Residential 13,714 710 145 2,374 3,229 16,943 Consumer 1,245 3 1 239 243 1,488 Total Loans $ 34,515 $ 784 $ 211 $ 3,929 $ 4,924 $ 39,439 |
Allowance Activity | The following table presents the primary segments of the ALL, excluding PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at June 30, 2021 $ 22,659 $ 1,363 $ 284 $ 576 $ 24,882 Charge-offs (96) (2) — — (98) Recoveries 10 — 13 — 23 Provision (release) (529) (42) (37) 609 1 ALL balance at September 30, 2021 $ 22,044 $ 1,319 $ 260 $ 1,185 $ 24,808 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2020 $ 24,033 $ 1,378 $ 298 $ 51 $ 25,760 Charge-offs (361) (2) — — (363) Recoveries 224 — 21 3 248 Provision (release) (1,852) (57) (59) 1,131 (837) ALL balance at September 30, 2021 $ 22,044 $ 1,319 $ 260 $ 1,185 $ 24,808 Individually evaluated for impairment $ 4,035 $ — $ 69 $ — $ 4,104 Collectively evaluated for impairment $ 18,009 $ 1,319 $ 191 $ 1,185 $ 20,704 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total September 30, 2021 Individually evaluated for impairment $ 12,148 $ 6,971 $ 95 $ 3 $ 19,217 Collectively evaluated for impairment 1,418,142 262,996 23,682 22,141 1,726,961 Total Loans $ 1,430,290 $ 269,967 $ 23,777 $ 22,144 $ 1,746,178 The following table presents the primary segments of the ALL, excluding PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at June 30, 2020 $ 15,401 $ 1,846 $ 264 $ 58 $ 17,569 Charge-offs (100) — — — (100) Recoveries 3 — 2 — 5 Provision (release) 8,840 (218) 82 (8) 8,696 ALL balance at Allowance contributed with mortgage combination transaction — (354) — — (354) ALL balance at September 30, 2020 $ 24,144 $ 1,274 $ 348 $ 50 $ 25,816 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2019 $ 10,098 $ 1,272 $ 327 $ 78 $ 11,775 Charge-offs (1,856) — (23) — (1,879) Recoveries 9 — 6 2 17 Provision (release) 15,893 356 38 (30) 16,257 Allowance contributed with mortgage combination transaction — (354) — — (354) ALL balance at September 30, 2020 $ 24,144 $ 1,274 $ 348 $ 50 $ 25,816 Individually evaluated for impairment $ 1,984 $ — $ — $ — $ 1,984 Collectively evaluated for impairment $ 22,160 $ 1,274 $ 348 $ 50 $ 23,832 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: (Dollars in thousands) Commercial Residential Home Equity Consumer Total September 30, 2020 Individually evaluated for impairment $ 14,350 $ 3,051 $ 95 $ 6 $ 17,502 Collectively evaluated for impairment 1,102,976 231,707 34,689 3,980 1,373,352 Total Loans $ 1,117,326 $ 234,758 $ 34,784 $ 3,986 $ 1,390,854 The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the PCI loan portfolio as of the periods indicated: (Dollars in thousands) Commercial Residential Total ALL balance at June 30, 2021 $ — $ — $ — Provision 14 365 379 ALL balance at September 30, 2021 $ 14 $ 365 $ 379 (Dollars in thousands) Commercial Residential Total ALL balance at December 31, 2020 $ — $ 84 $ 84 Provision 14 281 295 ALL balance at September 30, 2021 $ 14 $ 365 $ 379 Collectively evaluated for impairment $ 14 $ 365 $ 379 (Dollars in thousands) Commercial Residential Total ALL balance at June 30, 2020 $ 121 $ 52 $ 173 Charge-offs — (11) (11) Provision (121) 56 (65) ALL balance at September 30, 2020 $ — $ 97 $ 97 (Dollars in thousands) Commercial Residential Total ALL balance at December 31, 2019 $ — $ — $ — Charge-offs — (11) (11) Provision — 108 108 ALL balance at September 30, 2020 $ — $ 97 $ 97 Collectively evaluated for impairment $ — $ 97 $ 97 |
Troubled Debt Restructurings on Financing Receivables | For the nine months ended September 30, 2020, the following table presents the new TDRs as of the period indicated: Nine Months Ended September 30, 2020 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Commercial business 5 $ 6,237 $ 5,427 Commercial real estate 2 159 152 Total commercial 7 6,396 5,579 Residential 1 87 86 Total 8 $ 6,483 $ 5,665 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan. |
Schedule of Accretable Yield | The following table presents the accretable yield, or income expected to be collected, as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Beginning balance $ 8,313 $ — New loans purchased — 11,746 Accretion of income (3,080) (2,945) Other changes in expected cash flows 1,234 (488) Ending balance $ 6,467 $ 8,313 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Premises and Equipment | The following table presents the components of premises and equipment as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Land $ 3,465 $ 3,936 Buildings and improvements 13,393 14,350 Furniture, fixtures and equipment 16,615 17,451 Software 3,978 1,527 Construction in progress 113 49 Leasehold improvements 2,865 3,079 40,429 40,392 Accumulated depreciation (15,386) (14,189) Premises and equipment, net $ 25,043 $ 26,203 |
Summary of Lease Cost | The following table presents lease costs for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Operating lease cost $ 504 $ 473 $ 1,458 1,594 Short-term lease cost 2 — 4 26 Variable lease cost 9 10 29 30 Amortization of right-of-use assets, finance leases 16 13 44 49 Interest on lease liabilities, finance leases — 1 2 3 Total lease cost $ 531 $ 497 $ 1,537 $ 1,702 |
Summary of Finance Lease Liability | The following table presents future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of September 30, 2021: (Dollars in thousands) Operating Leases Finance Leases 2021 $ 468 $ 15 2022 1,946 42 2023 1,897 5 2024 1,827 5 2025 1,826 4 2026 and thereafter 12,901 — Total future minimum lease payments $ 20,865 $ 71 Less: Amounts representing interest (3,878) (1) Present value of net future minimum lease payments $ 16,987 $ 70 |
Summary of Operating Lease Liability | The following table presents future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of September 30, 2021: (Dollars in thousands) Operating Leases Finance Leases 2021 $ 468 $ 15 2022 1,946 42 2023 1,897 5 2024 1,827 5 2025 1,826 4 2026 and thereafter 12,901 — Total future minimum lease payments $ 20,865 $ 71 Less: Amounts representing interest (3,878) (1) Present value of net future minimum lease payments $ 16,987 $ 70 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents summarized income statement information for our equity method investment for the period indicated. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Total revenues $ 35,229 $ 62,915 $ 126,106 $ 62,915 Net income 9,962 28,979 36,747 28,979 Gain on sale of loans $ 30,720 $ 39,518 $ 122,621 $ 39,518 Volume of loans sold $ 1,098,475 $ 1,215,512 $ 4,368,875 $ 1,215,512 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Deposits | The following table presents the components of deposits as of the periods indicated: (Dollars in thousands) September 30, 2021 December 31, 2020 Noninterest-bearing demand $ 999,328 $ 715,791 Interest-bearing demand 767,268 496,502 Savings and money markets 530,538 545,501 Time deposits, including CDs and IRAs 101,806 224,595 Total deposits $ 2,398,940 $ 1,982,389 Time deposits that meet or exceed the FDIC insurance limit $ 9,563 $ 16,955 |
Maturities of Time Deposits | The following table presents the maturities of time deposits for the twelve month periods ended September 30: (Dollars in thousands) 2022 $ 64,757 2023 21,466 2024 10,794 2025 3,726 2026 1,063 Total $ 101,806 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Information Related to Short-term Borrowings | The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ — $ — Average balance during the period 33,914 68,407 Maximum month-end balance 130,047 154,248 Weighted-average rate during the period 0.36 % 0.58 % Weighted-average rate at end of period — % — % |
Information Related To Repurchase Agreements | The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ 11,139 $ 10,266 Average balance during the period 10,677 9,856 Maximum month-end balance 11,361 10,505 Weighted-average rate during the period 0.14 % 0.23 % Weighted-average rate at end of period 0.12 % 0.14 % |
Information Related to Subordinated Debt | The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at end of period $ 72,966 $ 43,407 Average balance during the period 43,786 7,568 Maximum month-end balance 72,966 43,524 Weighted-average rate during the period 0.17 % 3.45 % Weighted-average rate at end of period 4.03 % 4.02 % |
Pension and Supplemental Exec_2
Pension and Supplemental Executive Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Activity in the Defined Benefit Plan | The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of September 30, 2021 and 2020 for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Service cost $ — $ — $ — $ — Interest cost 78 91 234 273 Expected return on plan assets (118) (109) (354) (327) Amortization of net actuarial loss 127 105 381 315 Amortization of prior service cost — — — — Net periodic benefit cost $ 87 $ 87 $ 261 $ 261 Contributions paid $ — $ 119 $ 3,835 $ 587 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Estimated Fair Values of Financial Instruments | The following table presents the carrying values and estimated fair values of our financial instruments as of the periods indicated: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) September 30, 2021 Financial Assets: Cash and cash equivalents $ 390,081 $ 390,081 $ 390,081 $ — $ — Certificates of deposit with banks 9,582 9,657 — 9,657 — Securities available-for-sale 439,023 439,023 — 397,609 41,414 Equity securities 29,809 29,809 729 — 29,080 Loans receivable, net 1,738,999 1,748,759 — — 1,748,759 Servicing Assets 2,667 2,667 — — 2,667 Interest rate swap 8,444 8,444 — 8,444 — Fair value hedge 1,699 1,699 — 1,699 — Accrued interest receivable 8,513 8,513 — 2,621 5,892 Bank-owned life insurance 42,011 42,011 — 42,011 — Financial Liabilities: Deposits $ 2,398,940 $ 2,375,650 $ — $ 2,375,650 $ — Repurchase agreements 11,139 11,139 — 11,139 — FHLB and other borrowings — — — — — Interest rate swap 8,444 8,444 — 8,444 — Fair value hedge 1,129 1,129 — 1,129 — Accrued interest payable 802 802 — 802 — Subordinated debt 72,966 73,825 — 73,825 — December 31, 2020 Financial assets: Cash and cash equivalents $ 263,893 $ 263,893 $ 263,893 $ — $ — Certificates of deposits with banks 11,803 11,986 — 11,986 — Securities available-for-sale 410,624 410,624 — 366,945 43,679 Equity securities 27,585 27,585 472 — 27,113 Loans held-for-sale 1,062 1,062 — 1,062 — Loans receivable, net 1,427,900 1,434,275 — — 1,434,275 Mortgage servicing rights 2,942 2,942 — — 2,942 Interest rate swap 13,822 13,822 — 13,822 — Fair value hedge 2,215 2,215 — 2,215 Accrued interest receivable 7,793 7,793 — 2,770 5,023 Bank-owned life insurance 41,262 41,262 — 41,262 — Financial liabilities: Deposits $ 1,982,389 $ 1,964,860 $ — $ 1,964,860 $ — Repurchase agreements 10,266 10,266 — 10,266 — Interest rate swap 13,822 13,822 — 13,822 — Fair value hedge 2,141 2,141 — 2,141 — Accrued interest payable 572 572 — 572 — Subordinated debt 43,407 45,536 — 45,536 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair value of assets and liabilities | |
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets as of the periods indicated: (Dollars in thousands) Interest Rate Lock Commitments Municipal Securities Total Balance at June 30, 2021 $ — $ 39,770 $ 39,770 Realized and unrealized gains included in earnings — 5 5 Purchase of securities — 1,757 1,757 Maturities/calls — (74) (74) Unrealized gain included in other comprehensive income (loss) — 3,300 3,300 Unrealized loss included in other comprehensive income (loss) — (3,344) (3,344) Balance at September 30, 2021 $ — $ 41,414 $ 41,414 Balance at December 31, 2020 $ — $ 43,679 $ 43,679 Realized and unrealized gains included in earnings — 25 25 Purchase of securities — 3,575 3,575 Maturities/calls — (5,248) (5,248) Unrealized gain included in other comprehensive income (loss) — 7,720 7,720 Unrealized loss included in other comprehensive income (loss) — (8,337) (8,337) Balance at September 30, 2021 $ — $ 41,414 $ 41,414 Balance at June 30, 2020 $ 7,338 $ 40,457 $ 47,795 Realized and unrealized losses included in earnings (7,338) — (7,338) Purchase of securities — 368 368 Maturities/calls — (61) (61) Unrealized gain included in other comprehensive income (loss) — 1,810 1,810 Unrealized loss included in other comprehensive income (loss) — (466) (466) Balance at September 30, 2020 $ — $ 42,108 $ 42,108 Balance at December 31, 2019 $ 1,660 $ 37,259 $ 38,919 Realized and unrealized gains included in earnings (1,660) 3 (1,657) Purchase of securities — 21,147 21,147 Maturities/calls — (15,574) (15,574) Unrealized gain included in other comprehensive income (loss) — 5,872 5,872 Unrealized loss included in other comprehensive income (loss) — (6,599) (6,599) Balance at September 30, 2020 $ — $ 42,108 $ 42,108 |
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods indicated: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range September 30, 2021 Nonrecurring measurements: Impaired loans $ 15,114 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 3,442 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 41,414 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% December 31, 2020 Nonrecurring measurements: Impaired loans $ 14,098 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 5,730 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 43,679 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors such as local economic conditions. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods indicated by level within the fair value hierarchy: September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 41,971 $ — $ 41,971 United States sponsored mortgage-backed securities — 85,271 — 85,271 United States treasury securities 82,422 — — 82,422 Municipal securities — 166,009 41,414 207,423 Other securities — 14,436 — 14,436 Equity securities 729 — — 729 Interest rate swap — 8,444 — 8,444 Fair value hedge — 1,699 — 1,699 Liabilities: Interest rate swap — 8,444 — 8,444 Fair value hedge — 1,129 — 1,129 December 31, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 56,992 $ — $ 56,992 United States sponsored mortgage-backed securities — 95,769 — 95,769 Municipal securities — 188,208 43,679 231,887 Other securities — 18,476 — 18,476 Equity securities 472 — — 472 Loans held-for-sale — 1,062 — 1,062 Interest rate swap — 13,822 — 13,822 Fair value hedge — 2,215 — 2,215 Liabilities: Interest rate swap — 13,822 — 13,822 Fair value hedge — 2,141 — 2,141 |
Non-recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following table presents the fair value of these assets as of the periods indicated: September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 15,114 $ 15,114 Other real estate owned — — 3,442 3,442 December 31, 2020 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,098 $ 14,098 Other real estate owned — — 5,730 5,730 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Common Share | The following table presents our calculation of EPS for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands except shares and per share data) 2021 2020 2021 2020 Numerator for basic earnings per share: Net income $ 11,828 $ 6,491 $ 29,160 $ 25,573 Less: Dividends on preferred stock — 116 35 345 Net income available to common shareholders - basic $ 11,828 $ 6,375 $ 29,125 $ 25,228 Numerator for diluted earnings per share: Net income available to common shareholders - diluted $ 11,828 $ 6,375 $ 29,125 $ 25,228 Denominator: Total weighted-average shares outstanding 11,880,348 11,948,989 11,684,570 11,948,857 Effect of dilutive stock options and restricted stock units 943,961 167,429 881,239 236,280 Total diluted weighted-average shares outstanding 12,824,309 12,116,418 12,565,809 12,185,137 Earnings per share - basic $ 1.00 $ 0.53 $ 2.49 $ 2.11 Earnings per share - diluted $ 0.92 $ 0.53 $ 2.32 $ 2.07 Stock options not included in the computation of diluted EPS because the effect would be antidilutive 179,694 849,589 185,944 815,089 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Unrealized holding gains $ 529 $ 35 $ 3,380 $ 865 Gain on sale of available-for-sale securities (124) (9) (793) (234) Income tax effect 405 26 2,587 631 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (127) (105) (381) (315) Salaries and employee benefits 30 28 89 85 Income tax effect (97) (77) (292) (230) Net of tax Investment hedge Carrying value adjustment (14) (95) (637) 738 Interest on investment securities 3 26 149 (199) Income tax effect (11) (69) (488) 539 Net of tax Total reclassifications $ 297 $ (120) $ 1,807 $ 940 |
Components of Accumulated Other Comprehensive Income | (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at June 30, 2021 $ 3,136 $ (3,301) $ 164 $ (1) Other comprehensive income (loss) before reclassification 183 (700) — (517) Amounts reclassified from AOCI (405) 97 11 (297) Net current period OCI (222) (603) 11 (814) Balance at September 30, 2021 $ 2,914 $ (3,904) $ 175 $ (815) Balance at December 31, 2020 7,586 (5,047) (313) 2,226 Other comprehensive income (loss) before reclassification (2,085) 851 — (1,234) Amounts reclassified from AOCI (2,587) 292 488 (1,807) Net current period OCI (4,672) 1,143 488 (3,041) Balance at September 30, 2021 $ 2,914 $ (3,904) $ 175 $ (815) Balance at June 30, 2020 $ 3,771 $ (5,388) $ (576) $ (2,193) Other comprehensive income (loss) before reclassification 895 (74) — 821 Amounts reclassified from AOCI (26) 77 69 120 Net current period OCI 869 3 69 941 Balance at September 30, 2020 $ 4,640 $ (5,385) $ (507) $ (1,252) Balance at December 31, 2019 2,942 (4,295) 32 (1,321) Other comprehensive income (loss) before reclassification 2,329 (1,320) — 1,009 Amounts reclassified from AOCI (631) 230 (539) (940) Net current period OCI 1,698 (1,090) (539) 69 Balance at September 30, 2020 $ 4,640 $ (5,385) $ (507) $ (1,252) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods indicated: Three Months Ended September 30, 2021 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 20,383 $ 105 $ 1 $ (5) $ 20,484 Interest expense 912 — 481 (5) 1,388 Net interest income 19,471 105 (480) — 19,096 Provision for loan losses 379 1 — — 380 Net interest income (loss) after provision for loan losses 19,092 104 (480) — 18,716 Total noninterest income 20,211 3,546 2,002 (3,808) 21,951 Noninterest Expenses: Salaries and employee benefits 13,097 47 3,384 — 16,528 Other expense 11,654 (198) 1,653 (3,808) 9,301 Total noninterest expenses 24,751 (151) 5,037 (3,808) 25,829 Income (loss) before income taxes 14,552 3,801 (3,515) — 14,838 Income tax expense (benefit) 2,973 922 (731) — 3,164 Net income (loss) before noncontrolling interest 11,579 2,879 (2,784) — 11,674 Net loss attributable to noncontrolling interest 154 — — — 154 Net income (loss) attributable to parent $ 11,733 $ 2,879 $ (2,784) $ — $ 11,828 Preferred stock dividends — — — — — Net income (loss) available to common shareholders $ 11,733 $ 2,879 $ (2,784) $ — $ 11,828 Capital expenditures for the three months ended September 30, 2021 $ 1,975 $ — $ — $ — $ 1,975 Total assets as of September 30, 2021 2,827,019 53,261 342,677 (434,133) 2,788,824 Total assets as of December 31, 2020 2,343,556 58,140 284,943 (355,163) 2,331,476 Goodwill as of September 30, 2021 3,988 — — — 3,988 Goodwill as of December 31, 2020 2,350 — — — 2,350 Three Months Ended September 30, 2020 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 18,737 $ 78 $ — $ (188) $ 18,627 Interest expense 2,553 232 20 (188) 2,617 Net interest income 16,184 (154) (20) — 16,010 Provision for loan losses 8,631 — — — 8,631 Net interest income (loss) after provision for loan losses 7,553 (154) (20) — 7,379 Total noninterest income 3,106 16,793 1,481 (1,982) 19,398 Noninterest Expense: Salaries and employee benefits 7,526 82 2,911 — 10,519 Other expense 8,389 68 1,271 (1,982) 7,746 Total noninterest expenses 15,915 150 4,182 (1,982) 18,265 Income (loss) before income taxes (5,256) 16,489 (2,721) — 8,512 Income tax expense (benefit) (1,556) 4,245 (668) — 2,021 Net income (loss) $ (3,700) $ 12,244 $ (2,053) $ — $ 6,491 Preferred stock dividends — — 116 — 116 Net income (loss) available to common shareholders $ (3,700) $ 12,244 $ (2,169) $ — $ 6,375 Capital expenditures for the three months ended September 30, 2020 $ 1,652 $ — $ — $ — $ 1,652 Nine Months Ended September 30, 2021 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 60,078 $ 307 $ 2 $ (7) $ 60,380 Interest expense 3,294 — 1,437 (7) 4,724 Net interest income 56,784 307 (1,435) — 55,656 Release of allowance for loan losses (541) (1) — — (542) Net interest income (loss) after release of allowance for loan losses 57,325 308 (1,435) — 56,198 Total noninterest income 36,634 14,499 5,892 (8,972) 48,053 Noninterest Expenses: Salaries and employee benefits 32,323 47 9,730 — 42,100 Other expense 31,261 (112) 4,073 (8,972) 26,250 Total noninterest expenses 63,584 (65) 13,803 (8,972) 68,350 Income (loss) before income taxes 30,375 14,872 (9,346) — 35,901 Income tax expense (benefit) 5,290 3,606 (1,890) — 7,006 Net income (loss) before noncontrolling interest 25,085 11,266 (7,456) — 28,895 Net loss attributable to noncontrolling interest 265 — — — 265 Net income (loss) attributable to parent $ 25,350 $ 11,266 $ (7,456) $ — $ 29,160 Preferred stock dividends — — 35 — 35 Net income (loss) available to common shareholders $ 25,350 $ 11,266 $ (7,491) $ — $ 29,125 Capital expenditures for the nine months ended September 30, 2021 $ 4,127 $ — $ — $ — $ 4,127 Nine Months Ended September 30, 2020 CoRe Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 56,693 $ 6,034 $ 2 $ (1,629) $ 61,100 Interest expense 9,418 3,136 78 (2,171) 10,461 Net interest income 47,275 2,898 (76) 542 50,639 Provision for loan losses 16,361 4 — — 16,365 Net interest income (loss) after provision for loan losses 30,914 2,894 (76) 542 34,274 Total noninterest income 24,394 53,140 4,664 (6,437) 75,761 Noninterest Expenses: Salaries and employee benefits 19,562 21,550 8,248 — 49,360 Other expense 24,172 4,780 3,837 (5,895) 26,894 Total noninterest expenses 43,734 26,330 12,085 (5,895) 76,254 Income (loss) before income taxes 11,574 29,704 (7,497) — 33,781 Income tax expense (benefit) 2,336 7,696 (1,824) — 8,208 Net income (loss) $ 9,238 $ 22,008 $ (5,673) $ — $ 25,573 Preferred stock dividends — — 345 — 345 Net income (loss) available to common shareholders $ 9,238 $ 22,008 $ (6,018) $ — $ 25,228 Capital Expenditures for the nine-month period ended September 30, 2020 $ 4,092 $ 99 $ 20 $ — $ 4,211 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Narrative (Details) - loan | Sep. 30, 2021 | Apr. 30, 2021 | Feb. 28, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of equity method investments | 2 | ||
Flexia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 80.00% | 80.00% | |
Trabian | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 80.00% | 80.00% | |
MVB Technology | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 93.40% | ||
Flexia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage by noncontrolling owners | 20.00% | 20.00% | |
Trabian | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage by noncontrolling owners | 20.00% | 20.00% | |
MVB Technology | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage by noncontrolling owners | 6.60% |
Investment Securities - Availab
Investment Securities - Available-for-sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 435,217 | $ 400,718 |
Unrealized Gain | 6,102 | 10,440 |
Unrealized Loss | (2,296) | (534) |
Fair Value | 439,023 | 410,624 |
Total debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 420,935 | 382,317 |
Unrealized Gain | 5,925 | 10,294 |
Unrealized Loss | (2,273) | (463) |
Fair Value | 424,587 | 392,148 |
United States government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,226 | 53,207 |
Unrealized Gain | 342 | 872 |
Unrealized Loss | (597) | (210) |
Fair Value | 41,971 | 53,869 |
United States sponsored mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85,754 | 94,968 |
Unrealized Gain | 401 | 972 |
Unrealized Loss | (884) | (171) |
Fair Value | 85,271 | 95,769 |
United States treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 82,738 | 3,000 |
Unrealized Gain | 0 | 123 |
Unrealized Loss | (316) | 0 |
Fair Value | 82,422 | 3,123 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 202,717 | 223,642 |
Unrealized Gain | 5,182 | 8,327 |
Unrealized Loss | (476) | (82) |
Fair Value | 207,423 | 231,887 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,500 | 7,500 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 7,500 | 7,500 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,282 | 18,401 |
Unrealized Gain | 177 | 146 |
Unrealized Loss | (23) | (71) |
Fair Value | $ 14,436 | $ 18,476 |
Investment Securities - Summary
Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available for sale, Amortized Cost | ||
Amortized Cost | $ 435,217 | $ 400,718 |
Available for sale, Fair Value | ||
Fair Value | 439,023 | 410,624 |
Total debt securities | ||
Available for sale, Amortized Cost | ||
Within one year | 5 | |
After one year, but within five years | 86,798 | |
After five years, but within ten years | 34,205 | |
After ten years | 299,927 | |
Amortized Cost | 420,935 | 382,317 |
Available for sale, Fair Value | ||
Within one year | 5 | |
After one year, but within five years | 86,542 | |
After five years, but within ten years | 35,079 | |
After ten years | 302,961 | |
Fair Value | $ 424,587 | $ 392,148 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Loss Positions (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan |
Investments in an unrealized loss position | ||
Carrying value of securities pledged | $ 280,000 | $ 229,400 |
Amount of pretax loss if securities in an unrealized loss position are sold | 2,300 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | 184,687 | 50,155 |
Less than 12 months, unrealized loss | (1,687) | (376) |
12 months or more, fair value | 26,919 | 15,923 |
12 months or more, unrealized loss | $ (609) | $ (158) |
United States government agency securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 20 | 27 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 4,334 | $ 19,021 |
Less than 12 months, unrealized loss | (138) | (68) |
12 months or more, fair value | 18,113 | 12,574 |
12 months or more, unrealized loss | $ (459) | $ (142) |
United States sponsored mortgage-backed securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 27 | 9 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 57,861 | $ 15,331 |
Less than 12 months, unrealized loss | (803) | (155) |
12 months or more, fair value | 4,431 | 3,349 |
12 months or more, unrealized loss | $ (81) | $ (16) |
United States treasury securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 18 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 82,423 | |
Less than 12 months, unrealized loss | (316) | |
12 months or more, fair value | 0 | |
12 months or more, unrealized loss | $ 0 | |
Municipal securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 56 | 14 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 40,069 | $ 11,856 |
Less than 12 months, unrealized loss | (430) | (82) |
12 months or more, fair value | 2,898 | 0 |
12 months or more, unrealized loss | $ (46) | $ 0 |
Other securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 1 | 5 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | $ 3,947 |
Less than 12 months, unrealized loss | 0 | (71) |
12 months or more, fair value | 1,477 | 0 |
12 months or more, unrealized loss | $ (23) | $ 0 |
Investment Securities - Gains (
Investment Securities - Gains (losses) on sales of investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Sales of available-for-sale securities | $ 28,049 | $ 7,379 | $ 103,365 | $ 48,579 |
Gains, gross | 547 | 69 | 3,411 | 899 |
Losses, gross | 18 | 34 | 31 | 34 |
Sales of equity securities | 0 | 669 | 61 | 669 |
Gain, gross | 0 | 18 | 5 | 48 |
Losses, gross | 0 | 0 | 0 | 0 |
Unrealized holding gains on equity securities | $ 536 | $ 94 | $ 1,750 | $ 111 |
Investment Securities - Qualifi
Investment Securities - Qualified Affordable Housing Projects (Details) - Affordable Housing Investment Fund $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)investment | Dec. 31, 2020USD ($)investment | |
Summary of Investment Holdings [Line Items] | ||
Affordable housing project investments | $ 4 | $ 4 |
Number of investments | investment | 5 | 5 |
Income (loss) on affordable housing investment funds | $ 1.5 | $ 1.2 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Components of loans | |||||
Proceeds of loans sold | $ 17,871 | $ 1,475,854 | |||
Mortgage fee income | $ 0 | $ 7,264 | 0 | 33,427 | |
Total loans, excluding PCI | 1,746,178 | 1,390,854 | 1,746,178 | 1,390,854 | $ 1,415,362 |
Total Loans | 1,766,288 | 1,766,288 | 1,454,801 | ||
Deferred loan origination costs and (fees), net | (2,102) | (2,102) | (1,057) | ||
Loans receivable | 1,764,186 | 1,764,186 | 1,453,744 | ||
Mortgage Banking | |||||
Components of loans | |||||
Proceeds of loans sold | 1,230,000 | ||||
Mortgage fee income | 33,400 | ||||
Purchased credit impaired loans | |||||
Components of loans | |||||
Total Loans | 20,110 | 20,110 | 39,439 | ||
Commercial and non-residential real estate | |||||
Components of loans | |||||
Total loans, excluding PCI | 1,430,290 | 1,117,326 | 1,430,290 | 1,117,326 | 1,141,114 |
Commercial and non-residential real estate | Purchased credit impaired loans | |||||
Components of loans | |||||
Total Loans | 15,079 | 15,079 | 21,008 | ||
Residential real estate | |||||
Components of loans | |||||
Total loans, excluding PCI | 269,967 | 234,758 | 269,967 | 234,758 | 240,264 |
Residential real estate | Purchased credit impaired loans | |||||
Components of loans | |||||
Total Loans | 4,430 | 4,430 | 16,943 | ||
Home equity | |||||
Components of loans | |||||
Total loans, excluding PCI | 23,777 | 23,777 | 30,828 | ||
Consumer | |||||
Components of loans | |||||
Total loans, excluding PCI | 22,144 | $ 3,986 | 22,144 | $ 3,986 | 3,156 |
Consumer | Purchased credit impaired loans | |||||
Components of loans | |||||
Total Loans | $ 601 | $ 601 | $ 1,488 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | $ 6,676 | $ 6,676 | $ 4,203 | ||
Impaired loans with specific allowance, related allowance | 4,104 | 4,104 | 1,296 | ||
Impaired loans with no specific allowance, recorded investment | 12,542 | 12,542 | 11,191 | ||
Total impaired loans, recorded investment | 19,218 | 19,218 | 15,394 | ||
Total impaired loans, unpaid principal balance | 22,760 | 22,760 | 18,575 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 16,607 | $ 14,583 | 14,664 | $ 12,621 | |
Interest Income Recognized on Accrual Basis | 14 | 41 | 44 | 158 | |
Interest Income Recognized on Cash Basis | 14 | 85 | 43 | 166 | |
Commercial and non-residential real estate | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 6,607 | 6,607 | 4,203 | ||
Impaired loans with specific allowance, related allowance | 4,035 | 4,035 | 1,296 | ||
Impaired loans with no specific allowance, recorded investment | 5,542 | 5,542 | 9,131 | ||
Total impaired loans, recorded investment | 12,149 | 12,149 | 13,334 | ||
Total impaired loans, unpaid principal balance | 15,440 | 15,440 | 16,243 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 9,506 | 11,424 | 9,174 | 9,836 | |
Interest Income Recognized on Accrual Basis | 11 | 36 | 33 | 144 | |
Interest Income Recognized on Cash Basis | 11 | 80 | 33 | 152 | |
Commercial and non-residential real estate | Commercial business | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 5,931 | 5,931 | 3,431 | ||
Impaired loans with specific allowance, related allowance | 3,792 | 3,792 | 1,032 | ||
Impaired loans with no specific allowance, recorded investment | 3,646 | 3,646 | 5,653 | ||
Total impaired loans, recorded investment | 9,577 | 9,577 | 9,084 | ||
Total impaired loans, unpaid principal balance | 11,283 | 11,283 | 10,440 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 7,223 | 7,785 | 6,701 | 5,225 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | 0 | 0 | |
Commercial and non-residential real estate | Commercial real estate | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 676 | 676 | 772 | ||
Impaired loans with specific allowance, related allowance | 243 | 243 | 264 | ||
Impaired loans with no specific allowance, recorded investment | 495 | 495 | 944 | ||
Total impaired loans, recorded investment | 1,171 | 1,171 | 1,716 | ||
Total impaired loans, unpaid principal balance | 1,341 | 1,341 | 1,864 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 1,943 | 3,264 | 2,125 | 3,124 | |
Interest Income Recognized on Accrual Basis | 11 | 26 | 33 | 77 | |
Interest Income Recognized on Cash Basis | 11 | 26 | 33 | 79 | |
Commercial and non-residential real estate | Acquisition and development | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with specific allowance, related allowance | 0 | 0 | 0 | ||
Impaired loans with no specific allowance, recorded investment | 1,401 | 1,401 | 2,534 | ||
Total impaired loans, recorded investment | 1,401 | 1,401 | 2,534 | ||
Total impaired loans, unpaid principal balance | 2,816 | 2,816 | 3,939 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 340 | 375 | 348 | 1,487 | |
Interest Income Recognized on Accrual Basis | 0 | 10 | 0 | 67 | |
Interest Income Recognized on Cash Basis | 0 | 54 | 0 | 73 | |
Residential real estate | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with specific allowance, related allowance | 0 | 0 | 0 | ||
Impaired loans with no specific allowance, recorded investment | 6,971 | 6,971 | 1,960 | ||
Total impaired loans, recorded investment | 6,971 | 6,971 | 1,960 | ||
Total impaired loans, unpaid principal balance | 7,222 | 7,222 | 2,232 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 7,029 | 3,085 | 5,418 | 2,683 | |
Interest Income Recognized on Accrual Basis | 3 | 5 | 11 | 14 | |
Interest Income Recognized on Cash Basis | 3 | 5 | 10 | 14 | |
Home Equity | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 69 | 69 | 0 | ||
Impaired loans with specific allowance, related allowance | 69 | 69 | 0 | ||
Impaired loans with no specific allowance, recorded investment | 26 | 26 | 95 | ||
Total impaired loans, recorded investment | 95 | 95 | 95 | ||
Total impaired loans, unpaid principal balance | 95 | 95 | 95 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 69 | 69 | 69 | 94 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | 0 | 0 | |
Consumer | |||||
Impaired loans by class | |||||
Impaired loans with specific allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with specific allowance, related allowance | 0 | 0 | 0 | ||
Impaired loans with no specific allowance, recorded investment | 3 | 3 | 5 | ||
Total impaired loans, recorded investment | 3 | 3 | 5 | ||
Total impaired loans, unpaid principal balance | 3 | 3 | $ 5 | ||
Average recorded investment in impaired loans and related interest income recognized | |||||
Average Investment in Impaired Loans | 3 | 5 | 3 | 8 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | 0 | 0 | |
Interest Income Recognized on Cash Basis | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Narrative (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($)propertyloancategory | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Foreclosed properties held | $ 3,400,000 | ||
Investment in loans in the process of foreclosure | 400,000 | ||
Investment in loans in the process of foreclosure, related allowance | $ 0 | ||
Number of points in internal risk rating system | category | 9 | ||
Number of categories in internal risk rating system considered as not criticized | category | 6 | ||
Commercial relationship credit review threshold amount | $ 1,000,000 | ||
Past due period before loans placed in non-accrual status | 90 days | ||
Recent loan payment history before removal from non-accrual status | 6 months | ||
Allowance for loan losses, number of evaluation components | loan | 2 | ||
Impaired loans collectively evaluated | $ 1,400,000 | $ 2,000,000 | |
Impaired loans, related reserves | $ 100,000 | 100,000 | |
Number of rolling quarters | loan | 12 | ||
Liability for unfunded commitments | $ 500,000 | $ 500,000 | |
Collectively evaluated for impairment | 1,726,961,000 | $ 1,373,352,000 | |
Purchased credit impaired loans | |||
Financing Receivable, Impaired [Line Items] | |||
Collectively evaluated for impairment | 20,100,000 | ||
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Foreclosed properties held | $ 2,600,000 | ||
Increase (decrease) in impaired loans (as a percentage) | 76.50% | ||
Number foreclosed properties held | property | 11 | ||
Collectively evaluated for impairment | $ 262,996,000 | 231,707,000 | |
Residential real estate | Purchased credit impaired loans | |||
Financing Receivable, Impaired [Line Items] | |||
Collectively evaluated for impairment | 4,430,000 | ||
Residential real estate | Other Loan Relationships | |||
Financing Receivable, Impaired [Line Items] | |||
Foreclosed properties held | $ 800,000 | ||
Increase (decrease) in impaired loans (as a percentage) | 23.50% | ||
Commercial and non-residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Number foreclosed properties held | property | 20 | ||
Collectively evaluated for impairment | $ 1,418,142,000 | 1,102,976,000 | |
Commercial and non-residential real estate | Purchased credit impaired loans | |||
Financing Receivable, Impaired [Line Items] | |||
Collectively evaluated for impairment | $ 15,079,000 | ||
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Number of additional collateralized loans in the process of foreclosure | loan | 5 | ||
Investment in loans in the process of foreclosure | $ 200,000 | ||
Collectively evaluated for impairment | 22,141,000 | $ 3,980,000 | |
Consumer | Purchased credit impaired loans | |||
Financing Receivable, Impaired [Line Items] | |||
Collectively evaluated for impairment | 601,000 | ||
The First State Bank | |||
Financing Receivable, Impaired [Line Items] | |||
Foreclosed properties held | 2,700,000 | ||
The First State Bank | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Investment in loans in the process of foreclosure | $ 200,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | $ 1,746,178 | $ 1,415,362 | $ 1,390,854 |
Total Loans | 1,766,288 | 1,454,801 | |
SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 119,400 | ||
Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,430,290 | 1,141,114 | 1,117,326 |
Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 619,334 | 523,891 | |
Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 564,576 | 423,122 | |
Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 99,042 | 112,126 | |
Commercial and non-residential real estate | SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 147,338 | 81,975 | |
Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 269,967 | 240,264 | 234,758 |
Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 23,777 | 30,828 | 34,784 |
Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 22,144 | 3,156 | $ 3,986 |
Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 20,110 | 39,439 | |
Purchased credit impaired loans | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 15,079 | 21,008 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 2,938 | 17,604 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 11,595 | 1,269 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 546 | 2,135 | |
Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 4,430 | 16,943 | |
Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 601 | 1,488 | |
Pass | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,636,759 | 1,285,163 | |
Pass | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,331,468 | 1,015,512 | |
Pass | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 589,196 | 496,222 | |
Pass | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 508,729 | 356,544 | |
Pass | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 86,205 | 80,771 | |
Pass | Commercial and non-residential real estate | SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 147,338 | 81,975 | |
Pass | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 259,864 | 236,250 | |
Pass | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 23,304 | 30,277 | |
Pass | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 22,123 | 3,124 | |
Pass | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 14,025 | 31,558 | |
Pass | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 10,403 | 15,145 | |
Pass | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 2,360 | 12,263 | |
Pass | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 7,784 | 982 | |
Pass | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 259 | 1,900 | |
Pass | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 3,586 | 15,157 | |
Pass | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 36 | 1,256 | |
Special Mention | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 44,564 | 67,935 | |
Special Mention | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 43,251 | 66,574 | |
Special Mention | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 13,623 | 9,529 | |
Special Mention | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 22,004 | 32,044 | |
Special Mention | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 7,624 | 25,001 | |
Special Mention | Commercial and non-residential real estate | SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 0 | 0 | |
Special Mention | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 917 | 948 | |
Special Mention | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 378 | 381 | |
Special Mention | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 18 | 32 | |
Special Mention | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 1,785 | 139 | |
Special Mention | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 1,785 | 139 | |
Special Mention | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 158 | 136 | |
Special Mention | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 1,549 | 3 | |
Special Mention | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 78 | 0 | |
Special Mention | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 0 | 0 | |
Special Mention | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 0 | 0 | |
Substandard | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 59,442 | 58,270 | |
Substandard | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 50,746 | 55,230 | |
Substandard | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 12,910 | 17,045 | |
Substandard | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 33,687 | 34,001 | |
Substandard | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 4,149 | 4,184 | |
Substandard | Commercial and non-residential real estate | SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 0 | 0 | |
Substandard | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 8,693 | 2,896 | |
Substandard | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 0 | 144 | |
Substandard | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 3 | 0 | |
Substandard | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 3,970 | 2,273 | |
Substandard | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 2,563 | 608 | |
Substandard | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 211 | 345 | |
Substandard | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 2,189 | 263 | |
Substandard | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 163 | 0 | |
Substandard | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 844 | 1,665 | |
Substandard | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 563 | 0 | |
Doubtful | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 5,413 | 3,994 | |
Doubtful | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 4,825 | 3,798 | |
Doubtful | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 3,605 | 1,095 | |
Doubtful | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 156 | 533 | |
Doubtful | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,064 | 2,170 | |
Doubtful | Commercial and non-residential real estate | SBA PPP | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 0 | 0 | |
Doubtful | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 493 | 170 | |
Doubtful | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 95 | 26 | |
Doubtful | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 0 | 0 | |
Doubtful | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 330 | 5,469 | |
Doubtful | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 328 | 5,116 | |
Doubtful | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 209 | 4,860 | |
Doubtful | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 73 | 21 | |
Doubtful | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 46 | 235 | |
Doubtful | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | 0 | 121 | |
Doubtful | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total Loans | $ 2 | $ 232 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aging (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | $ 1,746,178 | $ 1,415,362 | $ 1,390,854 |
Total Loans | 1,766,288 | 1,454,801 | |
Non-Accrual | 17,453 | 13,713 | |
90 Plus Days Still Accruing | 0 | 0 | |
SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 119,400 | ||
Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,430,290 | 1,141,114 | 1,117,326 |
Non-Accrual | 10,754 | 12,079 | |
90 Plus Days Still Accruing | 0 | 0 | |
Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 619,334 | 523,891 | |
Non-Accrual | 9,102 | 8,601 | |
90 Plus Days Still Accruing | 0 | 0 | |
Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 564,576 | 423,122 | |
Non-Accrual | 495 | 944 | |
90 Plus Days Still Accruing | 0 | 0 | |
Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 99,042 | 112,126 | |
Non-Accrual | 1,157 | 2,534 | |
90 Plus Days Still Accruing | 0 | 0 | |
Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 147,338 | 81,975 | |
Non-Accrual | 0 | 0 | |
90 Plus Days Still Accruing | 0 | 0 | |
Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 269,967 | 240,264 | 234,758 |
Non-Accrual | 6,601 | 1,534 | |
90 Plus Days Still Accruing | 0 | 0 | |
Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 23,777 | 30,828 | 34,784 |
Non-Accrual | 95 | 95 | |
90 Plus Days Still Accruing | 0 | 0 | |
Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 22,144 | 3,156 | $ 3,986 |
Non-Accrual | 3 | 5 | |
90 Plus Days Still Accruing | 0 | 0 | |
Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 20,110 | 39,439 | |
Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 15,079 | 21,008 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 2,938 | 17,604 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 11,595 | 1,269 | |
Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 546 | 2,135 | |
Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 4,430 | 16,943 | |
Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 601 | 1,488 | |
Financial Asset, Not Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,732,100 | 1,404,748 | |
Financial Asset, Not Past Due | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,418,131 | 1,135,803 | |
Financial Asset, Not Past Due | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 608,407 | 521,799 | |
Financial Asset, Not Past Due | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 564,420 | 422,343 | |
Financial Asset, Not Past Due | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 97,966 | 109,686 | |
Financial Asset, Not Past Due | Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 147,338 | 81,975 | |
Financial Asset, Not Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 268,281 | 235,420 | |
Financial Asset, Not Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 23,550 | 30,369 | |
Financial Asset, Not Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 22,138 | 3,156 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 14,190 | 34,515 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 10,632 | 19,556 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 2,519 | 16,264 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 7,967 | 1,157 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 146 | 2,135 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 3,522 | 13,714 | |
Financial Asset, Not Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 36 | 1,245 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 7,161 | 3,421 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 6,315 | 1,074 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 6,315 | 1,040 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 34 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 726 | 2,058 | |
Financing Receivables, 30 to 59 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 117 | 289 | |
Financing Receivables, 30 to 59 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 817 | 784 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 817 | 71 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 71 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 640 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 177 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 710 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 3 | |
Financing Receivables, 60 to 89 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,485 | 2,289 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,052 | 245 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,052 | 33 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 212 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 415 | 1,969 | |
Financing Receivables, 60 to 89 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 15 | 75 | |
Financing Receivables, 60 to 89 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 64 | 211 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 65 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 65 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 64 | 145 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 0 | 1 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 5,432 | 4,904 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 4,792 | 3,992 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3,560 | 1,019 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 156 | 533 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,076 | 2,440 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 545 | 817 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 95 | 95 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 5,039 | 3,929 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 3,630 | 1,316 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 419 | 1,204 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 2,988 | 112 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 223 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 844 | 2,374 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 565 | 239 | |
Financial Asset, Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 14,078 | 10,614 | |
Financial Asset, Past Due | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 12,159 | 5,311 | |
Financial Asset, Past Due | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 10,927 | 2,092 | |
Financial Asset, Past Due | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 156 | 779 | |
Financial Asset, Past Due | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,076 | 2,440 | |
Financial Asset, Past Due | Commercial and non-residential real estate | SBA PPP | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 0 | |
Financial Asset, Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,686 | 4,844 | |
Financial Asset, Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 227 | 459 | |
Financial Asset, Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 6 | 0 | |
Financial Asset, Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 5,920 | 4,924 | |
Financial Asset, Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 4,447 | 1,452 | |
Financial Asset, Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 419 | 1,340 | |
Financial Asset, Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Commercial real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 3,628 | 112 | |
Financial Asset, Past Due | Purchased credit impaired loans | Commercial and non-residential real estate | Acquisition and development | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 400 | 0 | |
Financial Asset, Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | 908 | 3,229 | |
Financial Asset, Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total Loans | $ 565 | $ 243 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the allowance for loan losses | ||||
Beginning balance, excluding PCI loans acquired | $ 24,882 | $ 17,569 | $ 25,760 | $ 11,775 |
Balance at beginning of period | 25,844 | |||
Recoveries | 23 | 5 | 248 | 17 |
Provision (release) | 1 | 8,696 | (837) | 16,257 |
Charge-offs | (98) | (100) | (363) | (1,879) |
Allowance contributed with mortgage combination transaction | (354) | (354) | ||
Ending balance, excluding PCI loans acquired | 24,808 | 25,816 | 24,808 | 25,816 |
Balance at end of period | 25,187 | 25,187 | ||
Individually evaluated for impairment | 4,104 | 1,984 | 4,104 | 1,984 |
Collectively evaluated for impairment | 20,704 | 23,832 | 20,704 | 23,832 |
Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Balance at beginning of period | 0 | 173 | 84 | 0 |
Provision (release) | 379 | (65) | 295 | 108 |
Charge-offs | (11) | (11) | ||
Balance at end of period | 379 | 97 | 379 | 97 |
Collectively evaluated for impairment | 379 | 97 | 379 | 97 |
Commercial and non-residential real estate | ||||
Changes in the allowance for loan losses | ||||
Beginning balance, excluding PCI loans acquired | 22,659 | 15,401 | 24,033 | 10,098 |
Recoveries | 10 | 3 | 224 | 9 |
Provision (release) | (529) | 8,840 | (1,852) | 15,893 |
Charge-offs | (96) | (100) | (361) | (1,856) |
Allowance contributed with mortgage combination transaction | 0 | 0 | ||
Ending balance, excluding PCI loans acquired | 22,044 | 24,144 | 22,044 | 24,144 |
Individually evaluated for impairment | 4,035 | 1,984 | 4,035 | 1,984 |
Collectively evaluated for impairment | 18,009 | 22,160 | 18,009 | 22,160 |
Commercial and non-residential real estate | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Balance at beginning of period | 0 | 121 | 0 | 0 |
Provision (release) | 14 | (121) | 14 | 0 |
Charge-offs | 0 | 0 | ||
Balance at end of period | 14 | 0 | 14 | 0 |
Collectively evaluated for impairment | 14 | 0 | 14 | 0 |
Residential real estate | ||||
Changes in the allowance for loan losses | ||||
Beginning balance, excluding PCI loans acquired | 1,363 | 1,846 | 1,378 | 1,272 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (release) | (42) | (218) | (57) | 356 |
Charge-offs | (2) | 0 | (2) | 0 |
Allowance contributed with mortgage combination transaction | (354) | (354) | ||
Ending balance, excluding PCI loans acquired | 1,319 | 1,274 | 1,319 | 1,274 |
Individually evaluated for impairment | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,319 | 1,274 | 1,319 | 1,274 |
Residential real estate | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Balance at beginning of period | 0 | 52 | 84 | 0 |
Provision (release) | 365 | 56 | 281 | 108 |
Charge-offs | (11) | (11) | ||
Balance at end of period | 365 | 97 | 365 | 97 |
Collectively evaluated for impairment | 365 | 97 | 365 | 97 |
Home Equity | ||||
Changes in the allowance for loan losses | ||||
Beginning balance, excluding PCI loans acquired | 284 | 264 | 298 | 327 |
Recoveries | 13 | 2 | 21 | 6 |
Provision (release) | (37) | 82 | (59) | 38 |
Charge-offs | 0 | 0 | 0 | (23) |
Allowance contributed with mortgage combination transaction | 0 | 0 | ||
Ending balance, excluding PCI loans acquired | 260 | 348 | 260 | 348 |
Individually evaluated for impairment | 69 | 0 | 69 | 0 |
Collectively evaluated for impairment | 191 | 348 | 191 | 348 |
Consumer | ||||
Changes in the allowance for loan losses | ||||
Beginning balance, excluding PCI loans acquired | 576 | 58 | 51 | 78 |
Recoveries | 0 | 0 | 3 | 2 |
Provision (release) | 609 | (8) | 1,131 | (30) |
Charge-offs | 0 | 0 | 0 | 0 |
Allowance contributed with mortgage combination transaction | 0 | 0 | ||
Ending balance, excluding PCI loans acquired | 1,185 | 50 | 1,185 | 50 |
Individually evaluated for impairment | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 1,185 | $ 50 | $ 1,185 | $ 50 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Primary Segments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Components of loans | |||
Individually evaluated for impairment | $ 19,217 | $ 17,502 | |
Collectively evaluated for impairment | 1,726,961 | 1,373,352 | |
Total loans, excluding acquired | 1,746,178 | $ 1,415,362 | 1,390,854 |
Total Loans | 1,766,288 | 1,454,801 | |
Commercial and non-residential real estate | |||
Components of loans | |||
Individually evaluated for impairment | 12,148 | 14,350 | |
Collectively evaluated for impairment | 1,418,142 | 1,102,976 | |
Total loans, excluding acquired | 1,430,290 | 1,141,114 | 1,117,326 |
Residential real estate | |||
Components of loans | |||
Individually evaluated for impairment | 6,971 | 3,051 | |
Collectively evaluated for impairment | 262,996 | 231,707 | |
Total loans, excluding acquired | 269,967 | 240,264 | 234,758 |
Home Equity | |||
Components of loans | |||
Individually evaluated for impairment | 95 | 95 | |
Collectively evaluated for impairment | 23,682 | 34,689 | |
Total loans, excluding acquired | 23,777 | 30,828 | 34,784 |
Consumer | |||
Components of loans | |||
Individually evaluated for impairment | 3 | 6 | |
Collectively evaluated for impairment | 22,141 | 3,980 | |
Total loans, excluding acquired | $ 22,144 | $ 3,156 | $ 3,986 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)borrowerloan | Sep. 30, 2020USD ($)contract | Dec. 31, 2020USD ($) | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Specific reserve allocations for TDR's | $ 500 | $ 600 | |
Troubled debt restructuring loans | 7,700 | 10,200 | |
Number of Contracts | contract | 8 | ||
Pre-Modification Outstanding Recorded Investment | $ 6,483 | ||
Post-Modification Outstanding Recorded Investment | $ 5,665 | ||
Acquisition and development | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Loans defaulted under the restructured terms | $ 2,600 | ||
Number of loans to defaulted borrowers | loan | 4 | ||
Number of borrower defaulted | borrower | 2 | ||
Commercial and non-residential real estate | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Number of loans to defaulted borrowers | loan | 0 | ||
Number of Contracts | contract | 7 | ||
Pre-Modification Outstanding Recorded Investment | $ 6,396 | ||
Post-Modification Outstanding Recorded Investment | $ 5,579 | ||
Commercial and non-residential real estate | Commercial business | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Number of Contracts | contract | 5 | ||
Pre-Modification Outstanding Recorded Investment | $ 6,237 | ||
Post-Modification Outstanding Recorded Investment | $ 5,427 | ||
Commercial and non-residential real estate | Commercial real estate | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Number of Contracts | contract | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 159 | ||
Post-Modification Outstanding Recorded Investment | $ 152 | ||
Residential real estate | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 87 | ||
Post-Modification Outstanding Recorded Investment | $ 86 | ||
Commercial Borrower Two | Acquisition and development | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Loans defaulted under the restructured terms | $ 2,100 | ||
Commercial Borrower One | Acquisition and development | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Loans defaulted under the restructured terms | 500 | ||
Accruing | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Troubled debt restructuring loans | $ 1,400 | $ 1,600 | |
Accruing | Portfolio Risk | Troubled Debt Restructured Loans | |||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |||
Percentage of total impaired loans | 8.00% | 10.00% |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Carrying Amount of PCI Loans (Details) - Purchased credit impaired loans - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 20,110 | $ 39,439 |
Carrying amount, net of allowance | $ 20,110 | 39,355 |
Commercial and non-residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 21,008 | |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 16,943 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 1,488 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Accretiable Yield (Details) - Purchased credit impaired loans - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 8,313 | $ 0 |
New loans purchased | 0 | 11,746 |
Accretion of income | (3,080) | (2,945) |
Other changes in expected cash flows | 1,234 | (488) |
Ending balance | $ 6,467 | $ 8,313 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - PPP Loans and CARES Act Deferrals (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($) |
Financing Receivable, Impaired [Line Items] | ||
Total Loans | $ 1,766,288 | $ 1,454,801 |
Commercial and non-residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Loans approved for modification | 6,600 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Loans approved for modification | $ 2,700 | |
SBA PPP | ||
Financing Receivable, Impaired [Line Items] | ||
Number of loans | loan | 733 | |
Original balance of loans | $ 27,900 | |
Total Loans | $ 119,400 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Premises and equipment | ||
Gross premises and equipment | $ 40,429 | $ 40,392 |
Accumulated depreciation | (15,386) | (14,189) |
Premises and equipment, net | 25,043 | 26,203 |
Land | ||
Premises and equipment | ||
Gross premises and equipment | 3,465 | 3,936 |
Buildings and improvements | ||
Premises and equipment | ||
Gross premises and equipment | 13,393 | 14,350 |
Furniture, fixtures and equipment | ||
Premises and equipment | ||
Gross premises and equipment | 16,615 | 17,451 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 3,978 | 1,527 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 113 | 49 |
Leasehold improvements | ||
Premises and equipment | ||
Gross premises and equipment | $ 2,865 | $ 3,079 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Lease liability | $ 17,100 | $ 18,400 |
Operating lease liability | 16,987 | 18,300 |
Finance lease liability | 70 | 200 |
Right-of-use asset | 18,200 | 17,700 |
Operating lease, right of use asset | 17,800 | 17,500 |
Finance lease, right of use asset | $ 400 | $ 200 |
Finance lease, weighted average remaining lease term (in years) | 1 year 10 months 24 days | 2 years 3 months 18 days |
Finance lease, weighted average discount rate, (as a percentage) | 2.10% | 2.40% |
Operating lease, weighted average remaining lease term (in years) | 12 years 2 months 12 days | 12 years 10 months 24 days |
Operating lease, weighted average discount rate, (as a percentage) | 2.80% | 2.90% |
Premises and Equipment - Lease
Premises and Equipment - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 504 | $ 473 | $ 1,458 | $ 1,594 |
Short-term lease cost | 2 | 0 | 4 | 26 |
Variable lease cost | 9 | 10 | 29 | 30 |
Amortization of right-of-use assets, finance leases | 16 | 13 | 44 | 49 |
Interest on lease liabilities, finance leases | 0 | 1 | 2 | 3 |
Total lease cost | $ 531 | $ 497 | $ 1,537 | $ 1,702 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2021 | $ 15 | |
2022 | 42 | |
2023 | 5 | |
2024 | 5 | |
2025 | 4 | |
2026 and thereafter | 0 | |
Total future minimum lease payments | 71 | |
Less: Amounts representing interest | (1) | |
Present value of net future minimum lease payments | 70 | $ 200 |
Operating Leases | ||
2021 | 468 | |
2022 | 1,946 | |
2023 | 1,897 | |
2024 | 1,827 | |
2025 | 1,826 | |
2026 and thereafter | 12,901 | |
Total future minimum lease payments | 20,865 | |
Less: Amounts representing interest | (3,878) | |
Present value of net future minimum lease payments | $ 16,987 | $ 18,300 |
Equity Method Investments (Deta
Equity Method Investments (Details) loan in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment income | $ 3,573 | $ 13,620 | $ 14,570 | $ 13,620 | ||
Net income | 11,828 | 6,491 | 29,160 | 25,573 | ||
Locked mortgage pipeline | $ 1,150,000 | 1,150,000 | 1,150,000 | $ 1,540,000 | ||
Equity method investment | 38,935 | 38,935 | 38,935 | $ 46,494 | ||
Intercoastal | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment income | 3,600 | 14,600 | ||||
Interchecks | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Increase in equity method investment | 4,500 | |||||
Equity method investment | $ 7,700 | $ 7,700 | $ 7,700 | |||
Ownership percentage | 16.90% | 16.90% | 16.90% | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Total revenues | $ 35,229 | 62,915 | $ 126,106 | 62,915 | ||
Net income | 9,962 | 28,979 | 36,747 | 28,979 | ||
Gain on sale of loans | $ 30,720 | $ 39,518 | $ 122,621 | $ 39,518 | ||
Volume of loans sold | loan | 1,098,475 | 1,215,512 | 4,368,875 | 1,215,512 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 999,328 | $ 715,791 |
Interest-bearing demand | 767,268 | 496,502 |
Savings and money markets | 530,538 | 545,501 |
Time deposits, including CDs and IRAs | 101,806 | 224,595 |
Total deposits | 2,398,940 | 1,982,389 |
Time deposits that meet or exceed the FDIC insurance limit | $ 9,563 | $ 16,955 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Deposits [Abstract] | |
2022 | $ 64,757 |
2023 | 21,466 |
2024 | 10,794 |
2025 | 3,726 |
2026 | 1,063 |
Total | 101,806 |
Overdrawn deposits | $ 54 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings, Long-term borrowings and Repurchase Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Borrowed funds | ||
FHLB maximum borrowing capacity | $ 454,400 | |
FHLB, remaining borrowing capacity | 443,000 | |
Short-term Borrowings from FHLB | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 0 | $ 0 |
Average balance during the period | 33,914 | 68,407 |
Maximum month-end balance | $ 130,047 | $ 154,248 |
Weighted-average rate during the period | 0.36% | 0.58% |
Weighted-average rate at end of period | 0.00% | 0.00% |
Investment Securities | ||
Short-term Borrowings and Repurchase Agreements | ||
Investment securities held as collateral | $ 11,500 | $ 10,700 |
Repurchase Agreements | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 11,139 | 10,266 |
Average balance during the period | 10,677 | 9,856 |
Maximum month-end balance | $ 11,361 | $ 10,505 |
Weighted-average rate during the period | 0.14% | 0.23% |
Weighted-average rate at end of period | 0.12% | 0.14% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2007 | |
Subordinated Debt | ||||
Balance at end of period | $ 72,966,000 | $ 43,407,000 | ||
Subordinated Debt | ||||
Subordinated Debt | ||||
Balance at end of period | 72,966,000 | 43,407,000 | ||
Average balance during the period | 43,786,000 | 7,568,000 | ||
Maximum month-end balance | $ 72,966,000 | $ 43,524,000 | ||
Weighted-average rate during the period | 0.17% | 3.45% | ||
Weighted-average rate at end of period | 4.03% | 4.02% | ||
Face amount of debt issued | $ 40,000,000 | $ 30,000,000 | ||
Term of debt instrument | 10 years | 10 years | ||
Interest rate on debt security | 4.25% | 3.25% | ||
Subordinated Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Subordinated Debt | ||||
Variable rate basis spread | 4.01% | |||
Subordinated Debt | Subordinated Debentures | ||||
Subordinated Debt | ||||
Face amount of debt issued | $ 4,000,000 | |||
Subordinated Debt | Subordinated Debentures | LIBOR | ||||
Subordinated Debt | ||||
Variable rate basis spread | 1.62% |
Pension and Supplemental Exec_3
Pension and Supplemental Executive Retirement Plans - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021USD ($)installment | Dec. 31, 2020USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to re-measure pension obligation | 4.50% | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employment period | 3 years | ||
Benefit obligation | $ 1,800 | ||
Number of equal consecutive installments | installment | 180 | ||
Consecutive installments, amount | $ 10 | ||
Discount rate used to re-measure pension obligation | 4.00% | ||
Accrued liability | $ 1,300 | $ 1,200 |
Pension and Supplemental Exec_4
Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of net periodic pension cost | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 78 | 91 | 234 | 273 |
Expected return on plan assets | (118) | (109) | (354) | (327) |
Amortization of net actuarial loss | 127 | 105 | 381 | 315 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 87 | 87 | 261 | 261 |
Contributions paid | $ 0 | $ 119 | $ 3,835 | $ 587 |
Stock Offerings (Details)
Stock Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||
Common stock issued related to stock-based compensation | $ 1,000 | ||||
Interchecks | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock issued related to equity method investment (in shares) | 107,928 | ||||
Trabian | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock issued related to acquisition (in shares) | 17,597 | ||||
Chartwell | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock issued related to stock-based compensation (in shares) | 24,408 | ||||
Sale of stock, price per share (in dollars per share) | $ 40.97 | $ 40.97 | |||
Common stock issued related to stock-based compensation | $ 1,000 | ||||
Series B Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Preferred stock, par value (in dollars per share) | 1 | ||||
Liquidation preference (in dollars per share) | 1,000 | ||||
Dividends declared (in dollars per share) | 46.03 | ||||
Series C Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Preferred stock, par value (in dollars per share) | 1 | ||||
Liquidation preference (in dollars per share) | 1,000 | ||||
Dividends declared (in dollars per share) | 49.86 | ||||
Series B And Series C preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Liquidation amount per share (in dollars per share) | $ 10,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Cash and cash equivalents | $ 390,081 | $ 263,893 |
Certificates of deposit with banks | 9,582 | 11,803 |
Investment securities available-for-sale | 439,023 | 410,624 |
Equity securities | 29,809 | 27,585 |
Bank-owned life insurance | 42,011 | 41,262 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 390,081 | 263,893 |
Certificates of deposit with banks | 9,582 | 11,803 |
Investment securities available-for-sale | 439,023 | 410,624 |
Equity securities | 29,809 | 27,585 |
Loans held-for-sale | 1,062 | |
Loans receivable, net | 1,738,999 | 1,427,900 |
Servicing Assets | 2,667 | 2,942 |
Accrued interest receivable | 8,513 | 7,793 |
Bank-owned life insurance | 42,011 | 41,262 |
Financial Liabilities: | ||
Deposits | 2,398,940 | 1,982,389 |
Repurchase agreements | 11,139 | 10,266 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 802 | 572 |
Subordinated debt | 72,966 | 43,407 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 390,081 | 263,893 |
Certificates of deposit with banks | 9,657 | 11,986 |
Investment securities available-for-sale | 439,023 | 410,624 |
Equity securities | 29,809 | 27,585 |
Loans held-for-sale | 1,062 | |
Loans receivable, net | 1,748,759 | 1,434,275 |
Servicing Assets | 2,667 | 2,942 |
Accrued interest receivable | 8,513 | 7,793 |
Bank-owned life insurance | 42,011 | 41,262 |
Financial Liabilities: | ||
Deposits | 2,375,650 | 1,964,860 |
Repurchase agreements | 11,139 | 10,266 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 802 | 572 |
Subordinated debt | 73,825 | 45,536 |
Interest rate swap | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 8,444 | 13,822 |
Financial Liabilities: | ||
Derivative liability | 8,444 | 13,822 |
Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 8,444 | 13,822 |
Financial Liabilities: | ||
Derivative liability | 8,444 | 13,822 |
Fair value hedge | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 1,699 | 2,215 |
Financial Liabilities: | ||
Derivative liability | 1,129 | 2,141 |
Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 1,699 | 2,215 |
Financial Liabilities: | ||
Derivative liability | 1,129 | 2,141 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 390,081 | 263,893 |
Certificates of deposit with banks | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Equity securities | 729 | 472 |
Loans held-for-sale | 0 | |
Loans receivable, net | 0 | 0 |
Servicing Assets | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Subordinated debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Other Observable Inputs (Level II) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit with banks | 9,657 | 11,986 |
Investment securities available-for-sale | 397,609 | 366,945 |
Equity securities | 0 | 0 |
Loans held-for-sale | 1,062 | |
Loans receivable, net | 0 | 0 |
Servicing Assets | 0 | 0 |
Accrued interest receivable | 2,621 | 2,770 |
Bank-owned life insurance | 42,011 | 41,262 |
Financial Liabilities: | ||
Deposits | 2,375,650 | 1,964,860 |
Repurchase agreements | 11,139 | 10,266 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 802 | 572 |
Subordinated debt | 73,825 | 45,536 |
Significant Other Observable Inputs (Level II) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 8,444 | 13,822 |
Financial Liabilities: | ||
Derivative liability | 8,444 | 13,822 |
Significant Other Observable Inputs (Level II) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 1,699 | 2,215 |
Financial Liabilities: | ||
Derivative liability | 1,129 | 2,141 |
Significant Unobservable Inputs (Level III) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit with banks | 0 | 0 |
Investment securities available-for-sale | 41,414 | 43,679 |
Equity securities | 29,080 | 27,113 |
Loans held-for-sale | 0 | |
Loans receivable, net | 1,748,759 | 1,434,275 |
Servicing Assets | 2,667 | 2,942 |
Accrued interest receivable | 5,892 | 5,023 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Subordinated debt | 0 | 0 |
Significant Unobservable Inputs (Level III) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Unobservable Inputs (Level III) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 439,023 | $ 410,624 |
Equity securities | 29,809 | 27,585 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 729 | 472 |
Loans held-for-sale | 1,062 | |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 729 | 472 |
Loans held-for-sale | 0 | |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 1,062 | |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 0 | |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 41,971 | 53,869 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 41,971 | 56,992 |
United States government agency securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States government agency securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 41,971 | 56,992 |
United States government agency securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States sponsored mortgage-backed securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 85,271 | 95,769 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 85,271 | 95,769 |
United States sponsored mortgage-backed securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States sponsored mortgage-backed securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 85,271 | 95,769 |
United States sponsored mortgage-backed securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States treasury securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 82,422 | 3,123 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 82,422 | |
United States treasury securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 82,422 | |
United States treasury securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | |
United States treasury securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | |
Municipal securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 207,423 | 231,887 |
Municipal securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Municipal securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 166,009 | 188,208 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 41,414 | 43,679 |
Other securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 14,436 | 18,476 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 14,436 | 18,476 |
Other securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Other securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 14,436 | 18,476 |
Other securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Interest rate swap | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 8,444 | 13,822 |
Derivative liability | 8,444 | 13,822 |
Interest rate swap | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swap | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 8,444 | 13,822 |
Derivative liability | 8,444 | 13,822 |
Interest rate swap | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 1,699 | 2,215 |
Derivative liability | 1,129 | 2,141 |
Fair value hedge | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 1,699 | 2,215 |
Derivative liability | 1,129 | 2,141 |
Fair value hedge | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Level III Assets (Details) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 39,770 | $ 47,795 | $ 43,679 | $ 38,919 |
Realized and unrealized gains (losses) included in earnings | 5 | (7,338) | 25 | (1,657) |
Purchase of securities | 1,757 | 368 | 3,575 | 21,147 |
Maturities/calls | (74) | (61) | (5,248) | (15,574) |
Unrealized gain included in other comprehensive income (loss) | 3,300 | 1,810 | 7,720 | 5,872 |
Unrealized loss included in other comprehensive income (loss) | (3,344) | (466) | (8,337) | (6,599) |
Ending balance | 41,414 | 42,108 | 41,414 | 42,108 |
Interest Rate Lock Commitments | Interest Rate Lock Commitments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 7,338 | 0 | 1,660 |
Realized and unrealized gains (losses) included in earnings | 0 | (7,338) | 0 | (1,660) |
Purchase of securities | 0 | 0 | 0 | 0 |
Maturities/calls | 0 | 0 | 0 | 0 |
Unrealized gain included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Unrealized loss included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Municipal Securities | Total debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 39,770 | 40,457 | 43,679 | 37,259 |
Realized and unrealized gains (losses) included in earnings | 5 | 0 | 25 | 3 |
Purchase of securities | 1,757 | 368 | 3,575 | 21,147 |
Maturities/calls | (74) | (61) | (5,248) | (15,574) |
Unrealized gain included in other comprehensive income (loss) | 3,300 | 1,810 | 7,720 | 5,872 |
Unrealized loss included in other comprehensive income (loss) | (3,344) | (466) | (8,337) | (6,599) |
Ending balance | $ 41,414 | $ 42,108 | $ 41,414 | $ 42,108 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 15,114 | $ 14,098 |
Impaired loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Impaired loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Impaired loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 15,114 | 14,098 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,442 | 5,730 |
Other real estate owned | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 3,442 | $ 5,730 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Non-recurring | Impaired loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 15,114 | $ 14,098 |
Non-recurring | Impaired loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 15,114 | 14,098 |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 3,442 | 5,730 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 3,442 | 5,730 |
Recurring | Municipal Securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 41,414 | $ 43,679 |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.20 | 0.20 |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.62 | 0.62 |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.20 | 0.20 |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.30 | 0.30 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal Securities | 0.05 | 0.05 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal Securities | 0.15 | 0.15 |
Liquidation expense | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.05 | 0.05 |
Liquidation expense | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.10 | 0.10 |
Liquidation expense | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.05 | 0.05 |
Liquidation expense | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.10 | 0.10 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator for basic earnings per share: | ||||
Net income before noncontrolling interest | $ 11,828 | $ 6,491 | $ 29,160 | $ 25,573 |
Less: Dividends on preferred stock | 0 | 116 | 35 | 345 |
Net income available to common shareholders | 11,828 | 6,375 | 29,125 | 25,228 |
Numerator for diluted earnings per share: | ||||
Net income available to common shareholders - diluted | $ 11,828 | $ 6,375 | $ 29,125 | $ 25,228 |
Denominator: | ||||
Total weighted-average shares outstanding (in shares) | 11,880,348 | 11,948,989 | 11,684,570 | 11,948,857 |
Effect of dilutive stock options and restricted stock units (in shares) | 943,961 | 167,429 | 881,239 | 236,280 |
Total diluted weighted-average shares outstanding (in shares) | 12,824,309 | 12,116,418 | 12,565,809 | 12,185,137 |
Earnings per share - basic (in dollars per share) | $ 1 | $ 0.53 | $ 2.49 | $ 2.11 |
Earnings per share - diluted (in dollars per share) | $ 0.92 | $ 0.53 | $ 2.32 | $ 2.07 |
Stock option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded form computation of earnings per share (in shares) | 179,694 | 849,589 | 185,944 | 815,089 |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Comprehensive Income | ||||
Gain on sale of available-for-sale securities | $ 529 | $ 35 | $ 3,380 | $ 865 |
Income tax expense | (3,164) | (2,021) | (7,006) | (8,208) |
Net income before noncontrolling interest | 11,828 | 6,491 | 29,160 | 25,573 |
Salaries and employee benefits | (16,528) | (10,519) | (42,100) | (49,360) |
Interest on investment securities | 575 | 411 | 1,831 | 1,554 |
Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Net income before noncontrolling interest | 297 | (120) | 1,807 | 940 |
Available-for-sale securities | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Gain on sale of available-for-sale securities | 529 | 35 | 3,380 | 865 |
Income tax expense | (124) | (9) | (793) | (234) |
Net income before noncontrolling interest | 405 | 26 | 2,587 | 631 |
Defined benefit pension plan items | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Income tax expense | 30 | 28 | 89 | 85 |
Net income before noncontrolling interest | (97) | (77) | (292) | (230) |
Salaries and employee benefits | (127) | (105) | (381) | (315) |
Investment hedge | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Income tax expense | 3 | 26 | 149 | (199) |
Net income before noncontrolling interest | (11) | (69) | (488) | 539 |
Interest on investment securities | $ (14) | $ (95) | $ (637) | $ 738 |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | $ 239,483 | |||
Other comprehensive income (loss) before reclassification | $ (517) | $ 821 | (1,234) | $ 1,009 |
Amounts reclassified from AOCI | (297) | 120 | (1,807) | (940) |
Total other comprehensive (loss) income | (814) | 941 | (3,041) | 69 |
Ending balance | 265,565 | 265,565 | ||
Unrealized gains (losses) on available for-sale securities | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | 3,136 | 3,771 | 7,586 | 2,942 |
Other comprehensive income (loss) before reclassification | 183 | 895 | (2,085) | 2,329 |
Amounts reclassified from AOCI | (405) | (26) | (2,587) | (631) |
Total other comprehensive (loss) income | (222) | 869 | (4,672) | 1,698 |
Ending balance | 2,914 | 4,640 | 2,914 | 4,640 |
Defined benefit pension plan items | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | (3,301) | (5,388) | (5,047) | (4,295) |
Other comprehensive income (loss) before reclassification | (700) | (74) | 851 | (1,320) |
Amounts reclassified from AOCI | 97 | 77 | 292 | 230 |
Total other comprehensive (loss) income | (603) | 3 | 1,143 | (1,090) |
Ending balance | (3,904) | (5,385) | (3,904) | (5,385) |
Investment hedge | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | 164 | (576) | (313) | 32 |
Other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 11 | 69 | 488 | (539) |
Total other comprehensive (loss) income | 11 | 69 | 488 | (539) |
Ending balance | 175 | (507) | 175 | (507) |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | (1) | (2,193) | 2,226 | (1,321) |
Ending balance | $ (815) | $ (1,252) | $ (815) | $ (1,252) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||||||
Number of reportable segments | segment | 3 | ||||||||
Interest income | $ 20,484 | $ 18,627 | $ 60,380 | $ 61,100 | |||||
Interest expense | 1,388 | 2,617 | 4,724 | 10,461 | |||||
NET INTEREST INCOME | 19,096 | 16,010 | 55,656 | 50,639 | |||||
Provision for loan losses | 380 | 8,631 | (542) | 16,365 | |||||
Net interest income (loss) after provision for loan losses | 18,716 | 7,379 | 56,198 | 34,274 | |||||
Noninterest Income: | |||||||||
Total noninterest income | 21,951 | 19,398 | 48,053 | 75,761 | |||||
Noninterest Expenses: | |||||||||
Salaries and employee benefits | 16,528 | 10,519 | 42,100 | 49,360 | |||||
Other expense | 9,301 | 7,746 | 26,250 | 26,894 | |||||
Total noninterest expense | 25,829 | 18,265 | 68,350 | 76,254 | |||||
Income before income taxes | 14,838 | 8,512 | 35,901 | 33,781 | |||||
Income tax expense (benefit) | 3,164 | 2,021 | 7,006 | 8,208 | |||||
Net income before noncontrolling interest | 11,674 | $ 9,163 | $ 8,058 | 6,491 | $ 18,034 | $ 1,048 | 28,895 | 25,573 | |
Net loss attributable to noncontrolling interest | 154 | 0 | 265 | 0 | |||||
Net income attributable to parent | 11,828 | 6,491 | 29,160 | 25,573 | |||||
Preferred dividends | 0 | 116 | 35 | 345 | |||||
Net income available to common shareholders | 11,828 | 6,375 | 29,125 | 25,228 | |||||
Capital expenditures | 1,975 | 1,652 | 4,127 | 4,211 | |||||
Assets | 2,788,824 | 2,788,824 | $ 2,331,476 | ||||||
Goodwill | 3,988 | 3,988 | 2,350 | ||||||
Operating Segments | CoRe Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 20,383 | 18,737 | 60,078 | 56,693 | |||||
Interest expense | 912 | 2,553 | 3,294 | 9,418 | |||||
NET INTEREST INCOME | 19,471 | 16,184 | 56,784 | 47,275 | |||||
Provision for loan losses | 379 | 8,631 | (541) | 16,361 | |||||
Net interest income (loss) after provision for loan losses | 19,092 | 7,553 | 57,325 | 30,914 | |||||
Noninterest Income: | |||||||||
Total noninterest income | 20,211 | 3,106 | 36,634 | 24,394 | |||||
Noninterest Expenses: | |||||||||
Salaries and employee benefits | 13,097 | 7,526 | 32,323 | 19,562 | |||||
Other expense | 11,654 | 8,389 | 31,261 | 24,172 | |||||
Total noninterest expense | 24,751 | 15,915 | 63,584 | 43,734 | |||||
Income before income taxes | 14,552 | (5,256) | 30,375 | 11,574 | |||||
Income tax expense (benefit) | 2,973 | (1,556) | 5,290 | 2,336 | |||||
Net income before noncontrolling interest | 11,579 | (3,700) | 25,085 | 9,238 | |||||
Net loss attributable to noncontrolling interest | 154 | 265 | |||||||
Net income attributable to parent | 11,733 | 25,350 | |||||||
Preferred dividends | 0 | 0 | 0 | 0 | |||||
Net income available to common shareholders | 11,733 | (3,700) | 25,350 | 9,238 | |||||
Capital expenditures | 1,975 | 1,652 | 4,127 | 4,092 | |||||
Assets | 2,827,019 | 2,827,019 | 2,343,556 | ||||||
Goodwill | 3,988 | 3,988 | 2,350 | ||||||
Operating Segments | Mortgage Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 105 | 78 | 307 | 6,034 | |||||
Interest expense | 0 | 232 | 0 | 3,136 | |||||
NET INTEREST INCOME | 105 | (154) | 307 | 2,898 | |||||
Provision for loan losses | 1 | 0 | (1) | 4 | |||||
Net interest income (loss) after provision for loan losses | 104 | (154) | 308 | 2,894 | |||||
Noninterest Income: | |||||||||
Total noninterest income | 3,546 | 16,793 | 14,499 | 53,140 | |||||
Noninterest Expenses: | |||||||||
Salaries and employee benefits | 47 | 82 | 47 | 21,550 | |||||
Other expense | (198) | 68 | (112) | 4,780 | |||||
Total noninterest expense | (151) | 150 | (65) | 26,330 | |||||
Income before income taxes | 3,801 | 16,489 | 14,872 | 29,704 | |||||
Income tax expense (benefit) | 922 | 4,245 | 3,606 | 7,696 | |||||
Net income before noncontrolling interest | 2,879 | 12,244 | 11,266 | 22,008 | |||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||
Net income attributable to parent | 2,879 | 11,266 | |||||||
Preferred dividends | 0 | 0 | 0 | 0 | |||||
Net income available to common shareholders | 2,879 | 12,244 | 11,266 | 22,008 | |||||
Capital expenditures | 0 | 0 | 0 | 99 | |||||
Assets | 53,261 | 53,261 | 58,140 | ||||||
Goodwill | 0 | 0 | 0 | ||||||
Operating Segments | Financial Holding Company | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 1 | 0 | 2 | 2 | |||||
Interest expense | 481 | 20 | 1,437 | 78 | |||||
NET INTEREST INCOME | (480) | (20) | (1,435) | (76) | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income (loss) after provision for loan losses | (480) | (20) | (1,435) | (76) | |||||
Noninterest Income: | |||||||||
Total noninterest income | 2,002 | 1,481 | 5,892 | 4,664 | |||||
Noninterest Expenses: | |||||||||
Salaries and employee benefits | 3,384 | 2,911 | 9,730 | 8,248 | |||||
Other expense | 1,653 | 1,271 | 4,073 | 3,837 | |||||
Total noninterest expense | 5,037 | 4,182 | 13,803 | 12,085 | |||||
Income before income taxes | (3,515) | (2,721) | (9,346) | (7,497) | |||||
Income tax expense (benefit) | (731) | (668) | (1,890) | (1,824) | |||||
Net income before noncontrolling interest | (2,784) | (2,053) | (7,456) | (5,673) | |||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||
Net income attributable to parent | (2,784) | (7,456) | |||||||
Preferred dividends | 0 | 116 | 35 | 345 | |||||
Net income available to common shareholders | (2,784) | (2,169) | (7,491) | (6,018) | |||||
Capital expenditures | 0 | 0 | 0 | 20 | |||||
Assets | 342,677 | 342,677 | 284,943 | ||||||
Goodwill | 0 | 0 | 0 | ||||||
Intercompany Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | (5) | (188) | (7) | (1,629) | |||||
Interest expense | (5) | (188) | (7) | (2,171) | |||||
NET INTEREST INCOME | 0 | 0 | 0 | 542 | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income (loss) after provision for loan losses | 0 | 0 | 0 | 542 | |||||
Noninterest Income: | |||||||||
Total noninterest income | (3,808) | (1,982) | (8,972) | (6,437) | |||||
Noninterest Expenses: | |||||||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||||
Other expense | (3,808) | (1,982) | (8,972) | (5,895) | |||||
Total noninterest expense | (3,808) | (1,982) | (8,972) | (5,895) | |||||
Income before income taxes | 0 | 0 | 0 | 0 | |||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |||||
Net income before noncontrolling interest | 0 | 0 | 0 | 0 | |||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||
Net income attributable to parent | 0 | 0 | |||||||
Preferred dividends | 0 | 0 | 0 | 0 | |||||
Net income available to common shareholders | 0 | 0 | 0 | 0 | |||||
Capital expenditures | 0 | $ 0 | 0 | $ 0 | |||||
Assets | (434,133) | (434,133) | (355,163) | ||||||
Goodwill | $ 0 | $ 0 | $ 0 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($) | Sep. 30, 2021USD ($) | Jul. 31, 2021USD ($)bankingCenter | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,988,000 | $ 2,350,000 | |||
Noncontrolling interest | 1,135,000 | $ 0 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Branch locations held for sale, number | bankingCenter | 4 | ||||
Deposit liabilities related to disposal group | $ 163,300,000 | ||||
Loans of branches held for sale | $ 57,800,000 | ||||
Gain on sale of other real estate owned | $ 10,800,000 | ||||
Flexia | |||||
Business Acquisition [Line Items] | |||||
Payments for software | $ 1,000,000 | ||||
Flexia | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by noncontrolling owners | 20.00% | 20.00% | |||
Trabian | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by noncontrolling owners | 20.00% | 20.00% | |||
Flexia | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 80.00% | 80.00% | |||
Consideration transferred | $ 2,500,000 | ||||
Assets acquired | 0 | ||||
Liabilities assumed | 0 | ||||
Noncontrolling interest | $ 500,000 | ||||
Trabian | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 80.00% | 80.00% | |||
Consideration transferred | $ 1,600,000 | ||||
Assets acquired | 800,000 | ||||
Liabilities assumed | 700,000 | ||||
Goodwill | 1,600,000 | ||||
Intangible assets assumed | 600,000 | ||||
Noncontrolling interest | $ 400,000 |