Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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, $1.00 par value | |
Trading Symbol | MVBF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,147,124 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001277902 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 4,965 | $ 8,878 |
Interest-bearing balances with banks | 349,007 | 298,559 |
Total cash and cash equivalents | 353,972 | 307,437 |
Certificates of deposit with banks | 2,229 | 2,719 |
Investment securities available-for-sale | 395,301 | 421,466 |
Equity securities | 34,447 | 32,402 |
Loans held-for-sale | 9,161 | 0 |
Loans receivable | 1,897,853 | 1,869,838 |
Allowance for loan losses | (18,808) | (18,266) |
Loans receivable, net | 1,879,045 | 1,851,572 |
Premises and equipment, net | 25,357 | 25,052 |
Bank-owned life insurance | 42,500 | 42,257 |
Equity method investments | 43,063 | 40,013 |
Accrued interest receivable and other assets | 104,401 | 65,543 |
Goodwill | 3,988 | 3,988 |
TOTAL ASSETS | 2,893,464 | 2,792,449 |
Deposits: | ||
Noninterest-bearing | 1,308,998 | 1,120,433 |
Interest-bearing | 1,200,081 | 1,257,172 |
Total deposits | 2,509,079 | 2,377,605 |
Accrued interest payable and other liabilities | 35,328 | 55,126 |
Repurchase agreements | 12,101 | 11,385 |
Subordinated debt | 73,094 | 73,030 |
Total liabilities | 2,629,602 | 2,517,146 |
STOCKHOLDERS’ EQUITY | ||
Common stock - par value $1; 20,000,000 shares authorized; 12,991,140 and 12,143,124 shares issued and outstanding, respectively, as of March 31, 2022 and 12,934,966 and 12,086,950 shares issued and outstanding, respectively, as of December 31, 2021 | 12,991 | 12,935 |
Additional paid-in capital | 144,968 | 143,521 |
Retained earnings | 139,024 | 138,219 |
Accumulated other comprehensive loss | (17,162) | (3,606) |
Treasury stock - 848,016 shares as of March 31, 2022 and December 31, 2021, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 263,080 | 274,328 |
Noncontrolling interest | 782 | 975 |
Total stockholders' equity | 263,862 | 275,303 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,893,464 | $ 2,792,449 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
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) | 12,991,140 | 12,934,966 |
Common stock, shares outstanding (in shares) | 12,143,124 | 12,086,950 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 21,448 | $ 16,892 |
Interest on deposits with banks | 227 | 122 |
Interest on investment securities | 648 | 631 |
Interest on tax-exempt loans and securities | 939 | 1,418 |
Total interest income | 23,262 | 19,063 |
INTEREST EXPENSE | ||
Interest on deposits | 656 | 1,048 |
Interest on short-term borrowings | 5 | 44 |
Interest on subordinated debt | 753 | 466 |
Total interest expense | 1,414 | 1,558 |
NET INTEREST INCOME | 21,848 | 17,505 |
Provision for loan losses | 1,280 | 618 |
Net interest income after provision for loan losses | 20,568 | 16,887 |
NONINTEREST INCOME | ||
Payment card and service charge income | 2,642 | 1,493 |
Insurance and investment services income | 254 | 224 |
Gain on sale of available-for-sale securities, net | 650 | 1,143 |
Gain on sale of loans, net | 1,083 | 0 |
Holding gain (loss) on equity securities, net | (59) | 515 |
Compliance and consulting income | 3,869 | 1,281 |
Equity method investment income | 1,138 | 6,469 |
Equity method investment gain | 1,803 | 0 |
Other operating income | 490 | 1,333 |
Total noninterest income | 11,870 | 12,458 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 17,961 | 11,911 |
Occupancy expense | 972 | 1,158 |
Equipment depreciation and maintenance | 1,226 | 1,041 |
Data processing and communications | 1,016 | 909 |
Marketing, contributions and sponsorships | 325 | 65 |
Professional fees | 2,821 | 1,742 |
Insurance, tax and assessment expense | 536 | 538 |
Travel, entertainment, dues and subscriptions | 1,978 | 884 |
Other operating expenses | 2,027 | 870 |
Total noninterest expense | 28,862 | 19,118 |
Income before income taxes | 3,576 | 10,227 |
Income taxes | 905 | 2,169 |
Net income before noncontrolling interest | 2,671 | 8,058 |
Net loss attributable to noncontrolling interest | 193 | 27 |
Net income attributable to parent | 2,864 | 8,085 |
Preferred dividends | 0 | 35 |
Net income available to common shareholders | $ 2,864 | $ 8,050 |
Earnings per common shareholder - basic (in dollars per share) | $ 0.24 | $ 0.70 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.22 | $ 0.66 |
Weighted average shares outstanding - basic (in shares) | 12,093,179 | 11,530,279 |
Weighted average shares outstanding - diluted (in shares) | 12,927,811 | 12,286,731 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income before noncontrolling interest | $ 2,671 | $ 8,058 |
Other comprehensive loss: | ||
Unrealized holding loss on securities available-for-sale | (17,519) | (6,331) |
Reclassification adjustment for gain recognized in income | (650) | (1,143) |
Change in defined benefit pension plan | 369 | 1,705 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 107 | 127 |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | (10) | 264 |
Other comprehensive loss, before tax | (17,703) | (5,378) |
Income taxes related to items of other comprehensive loss: | ||
Unrealized holding loss on securities available-for-sale | 4,104 | 1,483 |
Reclassification adjustment for gain recognized in income | 152 | 268 |
Change in defined benefit pension plan | (86) | (399) |
Reclassification adjustment for amortization of net actuarial loss recognized in income | (25) | (30) |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | 2 | (62) |
Income taxes related to items of other comprehensive loss | 4,147 | 1,260 |
Total other comprehensive loss, net of tax | (13,556) | (4,118) |
Comprehensive loss attributable to noncontrolling interest | 193 | 27 |
Comprehensive income (loss) | $ (10,692) | $ 3,967 |
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, 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) | 0 | |||||
MVB Technology membership units issued | 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, 2021 | 0 | 12,934,966 | (848,016) | ||||||
Beginning balance at Dec. 31, 2021 | 275,303 | $ 0 | $ 12,935 | 143,521 | 138,219 | (3,606) | $ (16,741) | 274,328 | 975 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 2,671 | 2,864 | 2,864 | (193) | |||||
Other comprehensive loss | (13,556) | (13,556) | (13,556) | ||||||
Dividends on common stock | (2,059) | (2,059) | (2,059) | ||||||
Stock-based compensation | 674 | 674 | 674 | ||||||
Stock-based compensation related to equity method investment | 104 | 104 | 104 | ||||||
Common stock options exercised (in shares) | 56,174 | ||||||||
Common stock options exercised | 725 | $ 56 | 669 | 725 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 0 | 12,991,140 | (848,016) | ||||||
Ending balance at Mar. 31, 2022 | $ 263,862 | $ 0 | $ 12,991 | $ 144,968 | $ 139,024 | $ (17,162) | $ (16,741) | $ 263,080 | $ 782 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 0.17 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income before noncontrolling interest | $ 2,671 | $ 8,058 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net amortization and accretion of investments | 646 | 898 |
Net amortization of deferred loan costs | 604 | 669 |
Provision for loan losses | 1,280 | 618 |
Depreciation and amortization | 851 | 1,003 |
Stock-based compensation | 674 | 592 |
Stock-based compensation related to equity method investment | 104 | 0 |
Loans originated for sale | (16,452) | 0 |
Proceeds of loans sold | 10,804 | 1,062 |
Holding gain (loss) on equity securities | 59 | (515) |
Gain on sale of available-for-sale securities, net | (650) | (1,143) |
Gain on sale of loans | (1,083) | 0 |
Gain on sale of other real estate owned | (21) | 0 |
Income on bank-owned life insurance | (243) | (249) |
Deferred income taxes | 9 | (1,036) |
Equity method investment income | (1,138) | (6,469) |
Equity method investment gain | (1,803) | 0 |
Return on equity method investment | 7,286 | 13,080 |
Other assets | (41,605) | 10,768 |
Other liabilities | (19,332) | (17,120) |
Net cash from operating activities | (57,339) | 10,216 |
INVESTING ACTIVITIES | ||
Purchases of available-for-sale investment securities | (62,635) | (74,714) |
Maturities/paydowns of available-for-sale investment securities | 9,533 | 13,674 |
Sales of available-for-sale investment securities | 60,635 | 41,037 |
Purchases of premises and equipment | (1,227) | (1,436) |
Net increase in loans | (31,787) | (241,558) |
Purchases of restricted bank stock | 0 | (295) |
Redemptions of restricted bank stock | 68 | 0 |
Proceeds from maturities of certificates of deposit with banks | 490 | 0 |
Proceeds from sale of other real estate owned | 245 | 0 |
Purchase of bank-owned life insurance | 0 | (1) |
Purchase of equity securities | (2,304) | (100) |
Net cash from investing activities | (26,982) | (263,393) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 131,474 | 234,164 |
Net increase in repurchase agreements | 716 | 347 |
Net change in FHLB and other borrowings | 0 | 102,185 |
Payment of subordinated debt issuance costs | 0 | 36 |
Preferred stock redemption | 0 | (7,334) |
Common stock options exercised | 725 | 690 |
Cash dividends paid on common stock | (2,059) | (1,153) |
Cash dividends paid on preferred stock | 0 | (35) |
Stock purchase from noncontrolling interest | 0 | 0 |
Net cash from financing activities | 130,856 | 328,900 |
Increase in cash and cash equivalents | 46,535 | 75,723 |
Cash and cash equivalents, beginning of period | 307,437 | 263,893 |
Cash and cash equivalents, end of period | 353,972 | 339,616 |
Cash payments for: | ||
Interest on deposits, repurchase agreements and borrowings | 865 | 1,261 |
Income taxes | 119 | 0 |
Supplemental disclosure of cash flow information: | ||
Fair value of noncontrolling interests at acquisition date | $ 0 | $ 500 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
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 in 2003 that operates principally through its wholly-owned subsidiary, MVB Bank, Inc. The Bank’s subsidiaries include MVB Insurance, LLC, (“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, Inc. (“Edge Ventures”). The Bank owns a controlling interest in Trabian Technology, Inc. (“Trabian”) and Edge Ventures wholly-owns Victor Technologies Inc. ("Victor"), as well as controlling interests in MVB Technology, LLC ("MVB Technology") and Flexia Payments, LLC (“Flexia”). The Bank also owns equity method investments in Intercoastal Mortgage Company, LLC (“ICM”) and Interchecks Technologies, Inc. ("Interchecks"), and MVB Financial Corp. owns an equity method investment in Ayers Socure II, LLC ("Ayers Socure II"). Edge Ventures serves 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, Victor and Flexia. We conduct a wide range of business activities through the Bank, primarily commercial and retail (“CoRe”) banking services, as well as Fintech banking. CoRe Banking We offer our customers a full range of products and services including: l Various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; l Commercial, consumer and real estate mortgage loans and lines of credit; l Debit cards; l Cashier’s checks; l Safe deposit rental facilities; and l Non-deposit investment services offered through an association with a broker-dealer. Fintech Banking We provide innovative strategies to independent banking and corporate clients throughout the United States. Our dedicated Fintech sales team specializes in providing banking services to corporate Fintech clients, with a primary focus on operational risk management and compliance. Managing banking relationships with clients in the payments, digital savings, cryptocurrency, crowd funding, lottery and gaming industries is complex, from both an operational and regulatory perspective. We believe that the complexity of serving these industries causes them to be underserved with quality banking services and provides us with a significantly expanded pool of potential customers. When serviced in a safe and efficient manner, we believe these industries offer an excellent source of stable, low cost deposits and noninterest, fee-based income. We analyze each industry thoroughly, both from an operational and regulatory viewpoint. Principles of Consolidation and Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its 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 significant intercompany accounts and transactions have been eliminated in consolidated financial statements. 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, 2021 has been derived from audited financial statements included in the 2021 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 2021 Form 10-K. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Wholly-owned investments or investments in which we have a controlling financial interest, whether majority owned or in certain circumstances a minority interest, are required to be consolidated into our financial statements. We evaluate investments in entities on an ongoing basis to determine the need to consolidate. The Bank owns a majority interests in Flexia, Trabian and MVB Technology. We own an 80.0% interest in each of Flexia and Trabian and a 93.4% interest in MVB Technology. Accordingly, we are required to consolidate 100% of each entity 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 our 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 investments that are not consolidated or accounted for using the equity method of accounting are accounted for under cost or fair value accounting. For 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 March 31, 2022, we hold three 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. An estimate that is particularly significant to the consolidated financial statements relates to the determination of the allowance for loan losses (“ALL”). 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 Since 2020 and continuing into 2022, 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 will continue to impact our future operating results will depend on future developments, including resurgences, such as the recent acceleration of the spread of variants and related sub-variants of COVID-19, 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. Purchased credit impaired ("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 as of the first quarter of 2022, we no longer qualified as an SRC. 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 currently expect to recognize a one-time cumulative effect adjustment to the ALL as of January 1, 2023, 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. This cross-functional team is currently in the process of testing the model and completing the implementation plan, which will include assessment and documentation of processes, internal controls and data sources; model testing 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 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 clarifies 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 over the next year. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The amendments eliminate the accounting guidance for troubled debt restructurings ("TDRs") in subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 of the codification to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments also include provisions for disclosure of current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost . Gross writeoff information must be included in the vintage disclosures required for public business entities which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. This amendment is effective concurrently with the amendments in ASU 2016-13 which is currently effective for fiscal years beginning after December 15, 2022. These amendments primarily impact disclosure requirements and we do not believe it will have a material impact on our consolidated financial statements. In March 2022, the SEC released Staff Accounting Bulletin No. 121 ("SAB 121") , which updates the SEC's position regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users. When a reporting entity holds crypto-assets for platform users and maintains the cryptographic key information necessary to access the crypto-asset, the reporting entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for platform users. The liability represents the loss exposure due to the risks associated with safeguarding crypto-assets. The entity should also record an asset at the same time that recognizes the fair value of the crypto-assets held for its platform users. SAB 121 is effective no later than the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We do not currently expect this update to impact our consolidated financial statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 54,992 $ 42 $ (2,583) $ 52,451 United States sponsored mortgage-backed securities 74,393 1 (5,913) 68,481 United States treasury securities 112,049 — (6,207) 105,842 Municipal securities 154,673 1,756 (5,086) 151,343 Corporate debt securities 8,801 16 (1) 8,816 Other debt securities 7,500 — — 7,500 Total debt securities 412,408 1,815 (19,790) 394,433 Other securities 868 — — 868 Total investment securities available-for-sale $ 413,276 $ 1,815 $ (19,790) $ 395,301 December 31, 2021 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 41,105 $ 228 $ (896) $ 40,437 United States sponsored mortgage-backed securities 77,519 222 (1,633) 76,108 United States treasury securities 112,133 — (1,744) 110,389 Municipal securities 171,044 4,334 (366) 175,012 Corporate debt securities 11,093 49 — 11,142 Other debt securities 7,500 — — 7,500 Total debt securities 420,394 4,833 (4,639) 420,588 Other securities 878 — — 878 Total investment securities available-for-sale $ 421,272 $ 4,833 $ (4,639) $ 421,466 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period indicated: March 31, 2022 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 1,002 $ 1,005 After one year, but within five years 123,837 117,572 After five years, but within ten years 32,690 31,219 After ten years 254,879 244,637 Total $ 412,408 $ 394,433 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 $245.4 million and $244.6 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022, the details of which are included in the following table. Although these securities would result in a pretax loss of $19.8 million if sold at March 31, 2022, we currently have no intention of selling the applicable securities at such fair values, and believe 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 value 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 March 31, 2022, 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 disclose the length of time that investments have remained in an unrealized loss position at March 31, 2022 and December 31, 2021: March 31, 2022 (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 (33) $ 13,511 $ (648) $ 19,897 $ (1,935) United States sponsored mortgage-backed securities (50) 29,379 (1,930) 38,704 (3,983) United States treasury securities (24) 105,841 (6,207) — — Municipal securities (98) 59,393 (4,402) 7,518 (684) Corporate debt securities (4) — (1) — — $ 208,124 $ (13,188) $ 66,119 $ (6,602) December 31, 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 (21) $ 5,101 $ (77) $ 21,770 $ (819) United States sponsored mortgage-backed securities (30) 55,354 (1,346) 7,845 (287) United States treasury securities (24) 110,389 (1,744) — — Municipal securities (53) 32,221 (270) 7,001 (96) $ 203,065 $ (3,437) $ 36,616 $ (1,202) The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Sales of available-for-sale securities $ 60,635 $ 41,037 Gains, gross 717 1,156 Losses, gross 67 13 Unrealized holding gains (losses) on equity securities (59) 515 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses The following table presents the components of loans as of the periods indicated: (Dollars in thousands) March 31, 2022 December 31, 2021 Commercial: Business 785,307 818,986 Real estate 599,262 561,718 Acquisition, development and construction 96,838 99,823 Total commercial $ 1,481,407 $ 1,480,527 Residential real estate 313,563 306,140 Home equity 21,424 22,186 Consumer 65,631 43,919 Total loans, excluding PCI 1,882,025 1,852,772 Purchased credit impaired loans: Commercial: Business 2,381 2,629 Real estate 9,140 11,018 Acquisition, development and construction 246 257 Total commercial $ 11,767 $ 13,904 Residential real estate 3,782 4,358 Consumer 398 413 Total purchased credit impaired loans 15,947 18,675 Total Loans $ 1,897,972 $ 1,871,447 Deferred loan origination costs and (fees), net (119) (1,609) Loans receivable $ 1,897,853 $ 1,869,838 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 business 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 business 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 March 31, 2022, 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 SBA PPP loan program. 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 March 31, 2022 Commercial Business $ 2,356 $ 218 $ 8,729 $ 11,085 $ 12,944 Real estate 661 224 535 1,196 1,315 Acquisition, development and construction — — 1,139 1,139 2,554 Total commercial 3,017 442 10,403 13,420 16,813 Residential 1,212 84 7,152 8,364 8,376 Home equity — — 230 230 235 Consumer 473 111 39 512 512 Total impaired loans $ 4,702 $ 637 $ 17,824 $ 22,526 $ 25,936 December 31, 2021 Commercial Business $ 2,401 $ 232 $ 8,796 $ 11,197 $ 13,010 Real estate 668 243 543 1,211 1,329 Acquisition, development and construction — — 1,392 1,392 2,807 Total commercial 3,069 475 10,731 13,800 17,146 Residential — — 8,179 8,179 8,219 Home equity — — 217 217 221 Consumer — — 259 259 259 Total impaired loans $ 3,069 $ 475 $ 19,386 $ 22,455 $ 25,845 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 March 31, 2022 2021 (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 Business $ 10,505 $ — $ — $ 6,521 $ — $ — Real estate 1,728 16 18 2,278 11 10 Acquisition, development and construction 322 — — 357 — — Total commercial 12,555 16 18 9,156 11 10 Residential 8,370 5 5 1,944 3 4 Home equity 190 — — 69 — — Consumer 433 — — 3 — — Total $ 21,548 $ 21 $ 23 $ 11,172 $ 14 $ 14 As of March 31, 2022, the Bank’s other real estate owned balance totaled $2.1 million, of which $1.5 million was related to the acquisition of The First State Bank (“First State”) in 2020. The Bank held $1.9 million, or 90.0%, of other real estate owned as a result of the foreclosure of seven unrelated commercial loans. The remaining $0.2 million, or 10.0%, consists of four foreclosed residential real estate properties. There are eleven additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure, with a total recorded investment of $2.1 million as of March 31, 2022. These include five legacy Bank loans totaling $1.4 million and six loans acquired from First State totaling $0.7 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 more 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 Bank's 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 March 31, 2022 Commercial Business $ 754,937 $ 11,133 $ 19,212 $ 25 $ 785,307 Real estate 558,252 11,965 28,972 73 599,262 Acquisition, development and construction 89,471 4,955 1,592 820 96,838 Total commercial 1,402,660 28,053 49,776 918 1,481,407 Residential 302,094 794 8,701 1,974 313,563 Home equity 20,817 392 189 26 21,424 Consumer 65,113 7 511 — 65,631 Total loans $ 1,790,684 $ 29,246 $ 59,177 $ 2,918 $ 1,882,025 December 31, 2021 Commercial Business $ 789,413 $ 11,964 $ 17,581 $ 28 $ 818,986 Real estate 520,446 12,065 29,134 73 561,718 Acquisition, development and construction 89,768 4,960 4,031 1,064 99,823 Total commercial 1,399,627 28,989 50,746 1,165 1,480,527 Residential 294,933 899 9,815 493 306,140 Home equity 21,582 387 191 26 22,186 Consumer 43,645 15 259 — 43,919 Total loans $ 1,759,787 $ 30,290 $ 61,011 $ 1,684 $ 1,852,772 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, becomes likely the borrower cannot or will not make scheduled principal or interest payments, full repayment of principal and interest is not expected or 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 March 31, 2022 Commercial Business $ 781,516 $ 618 $ 21 $ 3,152 $ 3,791 $ 785,307 $ 7,873 $ — Real estate 599,064 — 125 73 198 599,262 224 — Acquisition, development and construction 95,770 — — 1,068 1,068 96,838 1,383 — Total commercial 1,476,350 618 146 4,293 5,057 1,481,407 9,480 — Residential 310,257 1,822 — 1,484 3,306 313,563 7,826 — Home equity 21,212 102 — 110 212 21,424 230 — Consumer 63,502 2,129 — — 2,129 65,631 512 — Total loans $ 1,871,321 $ 4,671 $ 146 $ 5,887 $ 10,704 $ 1,882,025 $ 18,048 $ — December 31, 2021 Commercial Business $ 815,766 $ 1,718 $ 11 $ 1,491 $ 3,220 $ 818,986 $ 8,261 $ — Real estate 561,519 126 — 73 199 561,718 192 — Acquisition, development and construction 98,524 67 412 820 1,299 99,823 1,392 — Total commercial 1,475,809 1,911 423 2,384 4,718 1,480,527 9,845 — Residential 300,988 3,343 285 1,524 5,152 306,140 7,636 — Home equity 21,974 — 119 93 212 22,186 217 — Consumer 41,991 1211 461 256 1928 43,919 259 — Total loans $ 1,840,762 $ 6,465 $ 1,288 $ 4,257 $ 12,010 $ 1,852,772 $ 17,957 $ — 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 Topic 310 - Receivables (" ASC 310 ") for loans individually evaluated for impairment and ASC Subtopic 450-20 - Contingencies 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 analyzes certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on 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 and the reserve totaled $0.1 million as of both March 31, 2022 and December 31, 2021. These loans are included in total loans individually evaluated for impairment and in total impaired loans as these are individually identified as impaired prior to the collective application of allocation rates to calculate impairment. 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 loan 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. To estimate the liability for off-balance sheet credit exposures, Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit and revolving lines of credit and based its calculation 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 March 31, 2022 and December 31, 2021, 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: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 948 $ 128 $ 2,427 $ 17,603 Charge-offs — — — — — — (1,124) (1,124) Recoveries 1 7 — 8 — 2 375 385 Provision (release) (1,159) 468 (247) (938) 179 1 2,088 1,330 ALL balance at March 31, 2022 $ 6,869 $ 5,566 $ 735 $ 13,170 $ 1,127 $ 131 $ 3,766 $ 18,194 Individually evaluated for impairment $ 218 $ 224 $ — $ 442 $ 84 $ — $ 111 $ 637 Collectively evaluated for impairment $ 6,651 $ 5,342 $ 735 $ 12,728 $ 1,043 $ 131 $ 3,655 $ 17,557 Substantially off of the charge-offs during three months ended March 31, 2022 are related to our subprime consumer automobile portfolio of loans. The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial March 31, 2022 Individually evaluated for impairment $ 11,085 $ 1,196 $ 1,139 $ 13,420 $ 8,364 $ 230 $ 512 $ 22,526 Collectively evaluated for impairment 774,222 598,066 95,699 1,467,987 305,199 21,194 65,119 1,859,499 Total Loans $ 785,307 $ 599,262 $ 96,838 $ 1,481,407 $ 313,563 $ 21,424 $ 65,631 $ 1,882,025 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: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,378 $ 298 $ 51 $ 25,760 Charge-offs (265) — — (265) — — — (265) Recoveries 10 — — 10 — 4 3 17 Provision (release) (220) 645 76 501 135 (19) (5) 612 ALL balance at March 31, 2021 $ 11,718 $ 9,724 $ 2,837 $ 24,279 $ 1,513 $ 283 $ 49 $ 26,124 Individually evaluated for impairment $ 743 $ 265 $ — $ 1,008 $ — $ — $ — $ 1,008 Collectively evaluated for impairment $ 10,975 $ 9,459 $ 2,837 $ 23,271 $ 1,513 $ 283 $ 49 $ 25,116 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial March 31, 2021 Individually evaluated for impairment $ 7,328 $ 1,723 $ 2,035 $ 11,086 $ 1,927 $ 95 $ 3 $ 13,111 Collectively evaluated for impairment 735,644 489,928 116,681 1,342,253 273,783 28,748 3,146 1,647,930 Total Loans $ 742,972 $ 491,651 $ 118,716 $ 1,353,339 $ 275,710 $ 28,843 $ 3,149 $ 1,661,041 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 March 31, 2022 and December 31, 2021, the Bank had specific reserve allocations for TDRs of $0.4 million and $0.5 million, respectively. Loans considered to be troubled debt restructured loans totaled $12.5 million and $12.6 million as of March 31, 2022 and December 31, 2021, respectively. Of these totals, for both periods $4.5 million represent accruing troubled debt restructured loans and represent 20% and 21%, respectively, of total impaired loans. Meanwhile, as of March 31, 2022, $2.3 million represent three loans to two borrowers that have defaulted under the restructured terms. The largest of these loans, totaling $2.0 million, is a commercial loan, and the other three of these loans, totaling $0.3 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 March 31, 2022 and December 31, 2021. During the three months ended March 31, 2022 and 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. 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 for the periods indicated: (Dollars in thousands) March 31, 2022 December 31, 2021 Commercial Business 2,381 2,629 Real estate 9,140 11,018 Acquisition, development and construction 246 257 Total commercial $ 11,767 $ 13,904 Residential 3,782 4,358 Consumer 398 413 Outstanding balance $ 15,947 $ 18,675 Carrying amount, net of allowance $ 15,333 $ 18,012 The following table presents the accretable yield, or income expected to be collected, as of the three months ended March 31, 2022 and December 31, 2021, respectively: (Dollars in thousands) March 31, 2022 December 31, 2021 Beginning balance $ 6,505 $ 6,467 Accretion of income (808) (867) Other changes in expected cash flows 556 905 Ending balance $ 6,253 $ 6,505 Income is not recognized on PCI loans if we cannot reasonably estimate cash flows expected to be collected and, as of March 31, 2022, 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: Commercial (Dollars in thousands) Business Real Estate Total Commercial Residential Consumer Total ALL balance as of December 31, 2021 $ — $ — $ — $ 544 $ 119 $ 663 Recoveries 1 — 1 — — 1 Provision (release) 111 53 164 (221) 7 (50) ALL balance as of March 31, 2022 $ 112 $ 53 $ 165 $ 323 $ 126 $ 614 Collectively evaluated for impairment $ 112 $ 53 $ 165 $ 323 $ 126 $ 614 (Dollars in thousands) Commercial Business Residential Total ALL balance as of December 31, 2020 $ — $ 84 $ 84 Charge-offs — — — Provision (release) 90 (84) 6 ALL balance as of March 31, 2021 $ 90 $ — $ 90 Collectively evaluated for impairment $ 90 $ — $ 90 As of March 31, 2022, the loans in our PCI portfolio were all collectively evaluated for impairment and are segmented into three categories: commercial loans totaling $11.8 million, residential loans totaling $3.8 million, and consumer loans totaling $0.4 million, for a portfolio total of $15.9 million. 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 March 31, 2022 Commercial: Business $ 2,023 $ 151 $ 201 $ 6 $ 2,381 Real estate 5,489 1,483 2,168 — 9,140 Acquisition, development and construction 156 90 — — 246 Total commercial 7,668 1,724 2,369 6 11,767 Residential 3,049 — 733 — 3,782 Consumer 32 — 366 — 398 Total loans $ 10,749 $ 1,724 $ 3,468 $ 6 $ 15,947 December 31, 2021 Commercial: Business $ 2,257 $ 159 $ 207 $ 6 $ 2,629 Real estate 7,499 1,571 1,948 — 11,018 Acquisition, development and construction 178 79 — — 257 Total commercial 9,934 1,809 2,155 6 13,904 Residential 3,406 — 952 — 4,358 Consumer 36 — 377 — 413 Total loans $ 13,376 $ 1,809 $ 3,484 $ 6 $ 18,675 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 March 31, 2022 Commercial: Business $ 2,174 $ — $ — $ 207 $ 207 $ 2,381 Real estate 5,798 230 47 3,065 3,342 9,140 Acquisition, development and construction 226 20 — — 20 246 Total commercial 8,198 250 47 3,272 3,569 11,767 Residential 2,702 347 — 733 1,080 3,782 Consumer 31 — — 367 367 398 Total loans $ 10,931 $ 597 $ 47 $ 4,372 $ 5,016 $ 15,947 December 31, 2021 Commercial: Business $ 2,416 $ — $ — $ 213 $ 213 $ 2,629 Real estate 7,680 649 — 2689 3338 11,018 Acquisition, development and construction 243 — — 14 14 257 Total commercial 10,339 649 — 2,916 3,565 13,904 Residential 3,081 325 — 952 1,277 4,358 Consumer 36 — — 377 377 413 Total loans $ 13,456 $ 974 $ — $ 4,245 $ 5,219 $ 18,675 None of the PCI loans are considered non-accrual as they are all currently accreting interest income under PCI accounting. As our PCI loan portfolio is accounted for in pools with similar risk characteristics in accordance with ASC 310-30 , this portfolio is not subject to the impaired loan and TDR guidance. Rather, the revised estimated future cash flows of the individually modified loans are included in the estimated future cash flows of the pool. PPP Loans a |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, 2022 December 31, 2021 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,409 16,841 Software 4,786 4,176 Construction in progress 580 531 Leasehold improvements 2,895 2,895 42,528 41,301 Accumulated depreciation (17,171) (16,249) Premises and equipment, net $ 25,357 $ 25,052 We lease certain premises and equipment under operating and finance leases. At March 31, 2022, we had lease liabilities totaling $18.2 million, substantially all of which was related to operating leases, and right-of-use assets totaling $17.1 million, substantially all of which was related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At March 31, 2022, the weighted-average remaining lease term for operating leases was 11.8 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At March 31, 2022, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 1.8%. At December 31, 2021, we had lease liabilities totaling $18.6 million, of which $18.5 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $17.5 million, of which $17.5 million was related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At December 31, 2021, the weighted-average remaining lease term for operating leases was 12 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At December 31, 2021, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.0% The following table presents lease costs for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 508 $ 477 Short-term lease cost 6 1 Variable lease cost 10 10 Amortization of right-of-use assets, finance leases 14 14 Interest on lease liabilities, finance leases — 1 Total lease cost $ 538 $ 503 For finance leases and operating leases with initial or remaining terms of one year or more as of March 31, 2022, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases Finance Leases 2023 $ 1,460 $ 27 2024 1,897 5 2025 1,827 5 2026 1,826 4 2027 1,840 — 2028 and thereafter 12,984 — Total future minimum lease payments $ 21,834 $ 41 Less: Amounts representing interest (3,632) — Present value of net future minimum lease payments $ 18,202 $ 41 |
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) March 31, 2022 December 31, 2021 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,409 16,841 Software 4,786 4,176 Construction in progress 580 531 Leasehold improvements 2,895 2,895 42,528 41,301 Accumulated depreciation (17,171) (16,249) Premises and equipment, net $ 25,357 $ 25,052 We lease certain premises and equipment under operating and finance leases. At March 31, 2022, we had lease liabilities totaling $18.2 million, substantially all of which was related to operating leases, and right-of-use assets totaling $17.1 million, substantially all of which was related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At March 31, 2022, the weighted-average remaining lease term for operating leases was 11.8 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At March 31, 2022, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 1.8%. At December 31, 2021, we had lease liabilities totaling $18.6 million, of which $18.5 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $17.5 million, of which $17.5 million was related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At December 31, 2021, the weighted-average remaining lease term for operating leases was 12 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At December 31, 2021, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.0% The following table presents lease costs for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 508 $ 477 Short-term lease cost 6 1 Variable lease cost 10 10 Amortization of right-of-use assets, finance leases 14 14 Interest on lease liabilities, finance leases — 1 Total lease cost $ 538 $ 503 For finance leases and operating leases with initial or remaining terms of one year or more as of March 31, 2022, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases Finance Leases 2023 $ 1,460 $ 27 2024 1,897 5 2025 1,827 5 2026 1,826 4 2027 1,840 — 2028 and thereafter 12,984 — Total future minimum lease payments $ 21,834 $ 41 Less: Amounts representing interest (3,632) — Present value of net future minimum lease payments $ 18,202 $ 41 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 5 – Equity Method Investments In accordance with Rule 10-01(b)(1) of Regulation S-X, we must assess whether our equity method investments are significant. In evaluating the significance of these investments, we performed the income and investment tests described in S-X 1-02(w) for each equity method investment. Rule 10-01(b)(1) of Regulation S-X requires summarized financial information in a quarterly report if any of the tests exceeds 20% and if the investee for which separate financial statements would otherwise be required for annual periods. Under the income test, our proportionate share of the net income of ICM exceeded the applicable threshold of 20%, and criteria for reporting separate financial statements is also applicable, accordingly, we are requir ed to provide summarized income statement information for this investee for all periods presented. There were no other equity method investments which met any of the applicable thresholds for interim reporting as of the quarter ended March 31, 2022. Our equity method investments are initially recorded at fair value and subsequently adjusted for changes in the valuation of the entities and our share of the entities' earnings. ICM The following table presents summarized income statement information for our equity method investment for the periods indicated. Three Months Ended March 31, (Dollars in thousands) 2022 2021 Total revenues $ 22,116 $ 50,797 Net income $ 3,230 $ 15,864 Gain on sale of loans $ 15,088 $ 47,594 Volume of loans sold $ 688,094 $ 1,778,090 Our share of ICM's net income totaled $1.3 million and $6.5 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021 , the mortgage pipeline was $1.1 billion an d $1.0 billion, respectively. Interchecks Our ownership percentage of 16.9% of Interchecks allows us to have significant influence over the operations a nd decision making at Interchecks. Accordingly, the investment is accounted for as an equity method investment. Our share of net loss from Interchecks totaled $0.1 million for the three months ended March 31, 2022. During the three months ended March 31, 2022, we recorded a gain due to an observable transaction based on an in-substance sale of ownership in the amount of $1.8 million. The equity method investment in Interchecks is not considered a significant investment based on the criteria of Rule 10-01(b)(1) of Regulation S-X. We have multiple business relationships with Interchecks beyond our investment. Interchecks is a banking client of ours and utilizes the software developed by Victor, which provides revenue to us. Additionally, Interchecks provides management services to MVB Technology, which provides revenue to Interchecks. Such revenues have not been material. Ayers Socure II Our ownership percentage of 10.0% of Ayers Socure II allows us to have significant influence over the company. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the three months ended March 31, 2022 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rule 10-01(b)(1) of Regulation S-X. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits The following table presents the components of deposits as of the periods indicated: (Dollars in thousands) March 31, 2022 December 31, 2021 Noninterest-bearing demand $ 1,308,998 $ 1,120,433 Interest-bearing demand 630,155 651,016 Savings and money markets 491,346 510,068 Time deposits, including CDs and IRAs 78,580 96,088 Total deposits $ 2,509,079 $ 2,377,605 Time deposits that meet or exceed the FDIC insurance limit $ 10,111 $ 9,573 The following table presents the maturities of time deposits for the twelve month periods ended March 31: (Dollars in thousands) 2023 $ 43,011 2024 20,114 2025 10,539 2026 3,207 2027 1,709 Total $ 78,580 As of March 31, 2022, overdrawn deposit accounts totaling $2.8 million were reclassified as loan balances. |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, the Bank's maximum borrowing capacity with the FHLB was $435.2 million and the remaining borrowing capacity was $423.9 million, with the difference being deposit letters of credit. Short-term borrowings As of March 31, 2022 and December 31, 2021, 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) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ — $ — Average balance during the period — 25,275 Maximum month-end balance — 130,047 Weighted-average rate during the period — % 0.05 % Weighted-average rate at end of period — % — % Long-term borrowings As of March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $12.5 million and $15.8 million at March 31, 2022 and December 31, 2021, 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) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ 12,101 $ 11,385 Average balance during the period 11,823 10,821 Maximum month-end balance 12,680 11,398 Weighted-average rate during the period 0.05 % 0.12 % Weighted-average rate at end of period 0.05 % 0.05 % Subordinated debt The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ 73,094 $ 73,030 Average balance during the period 73,062 51,149 Maximum month-end balance 73,094 73,030 Weighted-average rate during the period 4.12 % 4.28 % Weighted-average rate at end of period 3.74 % 3.71 % In September 2021, MVB completed the private placement of $30.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-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 $40.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-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. In March 2007, we completed the private placement of $4.0 million Floating Rate, Trust Preferred Securities through our MVB Financial Statutory Trust I subsidiary (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 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. The obligations we provide 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. The securities issued by the Trust are includable for regulatory purposes as a component of our Tier 1 capital. |
Pension and Supplemental Execut
Pension and Supplemental Executive Retirement Plans | 3 Months Ended |
Mar. 31, 2022 | |
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 approved a Supplemental Executive Retirement Plan (the “SERP”), pursuant to which the Chief Executive Officer of Potomac Mortgage Group ("PMG") 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 PMG 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 both March 31, 2022 and December 31, 2021. 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 March 31, 2022 and 2021 for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Interest cost $ 85 $ 78 Expected return on plan assets (167) (118) Amortization of net actuarial loss 107 127 Net periodic benefit cost $ 25 $ 87 Contributions paid $ — $ 3,835 There was no service cost or amortization of prior service cost for the three months ended March 31, 2022 and 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 9 – 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) March 31, 2022 Financial Assets: Cash and cash equivalents $ 353,972 $ 353,972 $ 353,972 $ — $ — Certificates of deposit with banks 2,229 2,244 — 2,244 — Securities available-for-sale 395,301 395,301 — 355,633 39,668 Equity securities 34,447 34,447 247 — 34,200 Loans held-for-sale 9,161 9,161 — 9,161 — Loans receivable, net 1,879,045 1,892,687 — — 1,892,687 Servicing rights 2,711 2,729 — — 2,729 Interest rate swap 3,492 3,492 — 3,492 — Fair value hedge 873 873 — 873 — Accrued interest receivable 8,234 8,234 — 2,413 5,821 Bank-owned life insurance 42,500 42,500 — 42,500 — Financial Liabilities: Deposits $ 2,509,079 $ 2,468,181 $ — $ 2,468,181 $ — Repurchase agreements 12,101 12,101 — 12,101 — Interest rate swap 3,492 3,492 — 3,492 — Fair value hedge 148 148 — 148 — Accrued interest payable 1,238 1,238 — 1,238 — Subordinated debt 73,094 73,319 — 73,319 — December 31, 2021 Financial assets: Cash and cash equivalents $ 307,437 $ 307,437 $ 307,437 $ — $ — Certificates of deposits with banks 2,719 2,738 — 2,738 — Securities available-for-sale 421,466 421,466 — 379,703 41,763 Equity securities 32,402 32,402 247 — 32,155 Loans receivable, net 1,851,572 1,865,013 — — 1,865,013 Servicing rights 2,812 2,831 — — 2,831 Interest rate swap 6,702 6,702 — 6,702 — Fair value hedge 1,552 1,552 — 1,552 Accrued interest receivable 7,860 7,860 — 2,402 5,458 Bank-owned life insurance 42,257 42,257 — 42,257 — Financial liabilities: Deposits $ 2,377,605 $ 2,338,868 $ — $ 2,338,868 $ — Repurchase agreements 11,385 11,385 — 11,385 — Interest rate swap 6,702 6,702 — 6,702 — Fair value hedge 807 807 — 807 — Accrued interest payable 690 690 — 690 — Subordinated debt 73,030 74,774 — 74,774 — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – 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 2021 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 and money market funds. Level II securities include mortgage-backed securities issued by government-sponsored entities and private label entities, municipal bonds, United States Treasury securities that are traded by dealers or brokers in inactive over-the-counter markets and corporate debt securities. There have been no changes in valuation techniques for the three months ended March 31, 2022. 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 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 months ended March 31, 2022. Valuation techniques are consistent with techniques used in prior periods. 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: March 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 52,451 $ — $ 52,451 United States sponsored mortgage-backed securities — 68,481 — 68,481 United States treasury securities — 105,842 — 105,842 Municipal securities — 111,675 39,668 151,343 Other securities — 868 — 868 Equity securities 247 — — 247 Interest rate swap — 3,492 — 3,492 Fair value hedge — 873 — 873 Liabilities: Interest rate swap — 3,492 — 3,492 Fair value hedge — 148 — 148 December 31, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 40,437 $ — $ 40,437 United States sponsored mortgage-backed securities — 76,108 — 76,108 Municipal securities — 133,249 41,763 175,012 Other securities — 878 — 878 Equity securities 247 — — 247 Interest rate swap — 6,702 — 6,702 Fair value hedge — 1,552 — 1,552 Liabilities: Interest rate swap — 6,702 — 6,702 Fair value hedge — 807 — 807 The following table represents recurring Level III assets, consisting of only municipal securities, as of the periods indicated: (Dollars in thousands) Total Balance at December 31, 2021 $ 41,763 Realized and unrealized gains included in earnings 7 Purchase of securities 862 Maturities/calls (2,290) Unrealized gain included in other comprehensive income (loss) 1,766 Unrealized loss included in other comprehensive income (loss) (2,440) Balance at March 31, 2022 $ 39,668 Balance at December 31, 2020 $ 43,679 Realized and unrealized losses included in earnings 19 Purchase of securities 1,191 Maturities/calls (3,933) Unrealized gain included in other comprehensive income (loss) 1,127 Unrealized loss included in other comprehensive income (loss) (1,811) Balance at March 31, 2021 $ 40,272 Assets Measured on a Nonrecurring Basis From time to time, we may be required to measure certain financial and non-financial assets and 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 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 2022 and 2021 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 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: March 31, 2022 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 21,889 $ 21,889 Other real estate owned — — 2,106 2,106 December 31, 2021 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 21,980 $ 21,980 Other real estate owned — — 2,330 2,330 There were no changes to the fair value of other debt securities or equity securities measured on a nonrecurring basis as of March 31, 2022. 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 March 31, 2022 Nonrecurring measurements: Impaired loans $ 21,889 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 2,106 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 39,668 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% December 31, 2021 Nonrecurring measurements: Impaired loans $ 21,980 Appraisal of collateral 1 Appraisal adjustments 2 10% - 20% Liquidation expense 2 5% - 10% Other real estate owned $ 2,330 Appraisal of collateral 1 Appraisal adjustments 2 10% - 20% Liquidation expense 2 5% - 10% Other debt securities $ 7,500 Net asset value Cost minus impairment —% Equity securities $ 32,155 Net asset value Cost minus impairment —% Recurring measurements: Municipal securities 5 $ 41,763 Appraisal of bond 3 Bond appraisal adjustment 4 1% - 20% 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, liquidity, marketability and legal structure. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 11 – 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 March 31, (Dollars in thousands except shares and per share data) 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 2,864 $ 8,085 Less: Dividends on preferred stock — 35 Net income available to common shareholders - basic $ 2,864 $ 8,050 Denominator: Total weighted-average shares outstanding 12,093,179 11,530,279 Effect of dilutive stock options and restricted stock units 834,632 756,452 Total diluted weighted-average shares outstanding 12,927,811 12,286,731 Earnings per share - basic $ 0.24 $ 0.70 Earnings per share - diluted $ 0.22 $ 0.66 Securities not included in the computation of diluted EPS because the effect would be antidilutive 405,994 111,148 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 12 – 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 March 31, (Dollars in thousands) 2022 2021 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Unrealized holding gains $ 650 $ 1,143 Gain on sale of available-for-sale securities (152) (268) Income tax effect 498 875 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (107) (127) Salaries and employee benefits 25 30 Income tax effect (82) (97) Net of tax Investment hedge Carrying value adjustment 10 (264) Interest on investment securities (2) 62 Income tax effect 8 (202) Net of tax Total reclassifications $ 424 $ 576 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (13,415) 283 — (13,132) Amounts reclassified from accumulated other comprehensive income (loss) (498) 82 (8) (424) Net current period other comprehensive income (loss) (13,913) 365 (8) (13,556) Balance at March 31, 2022 $ (13,766) $ (3,704) $ 308 $ (17,162) Balance at December 31, 2020 7,586 (5,047) (313) 2,226 Other comprehensive income (loss) before reclassification (4,848) 1,306 — (3,542) Amounts reclassified from accumulated other comprehensive income (loss) (875) 97 202 (576) Net current period other comprehensive income (loss) (5,723) 1,403 202 (4,118) Balance at March 31, 2021 $ 1,863 $ (3,644) $ (111) $ (1,892) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 13 – Segment Reporting We have identified five reportable segments: CoRe banking; mortgage banking; professional services; Edge Ventures; 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 and MVB CDC 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. Professional services is the aggregate of Chartwell, Trabian and Paladin Fraud. Revenue from these operating segments is made up of primarily of professional consulting income to banks and Fintech companies. Edge Ventures is the aggregate of Victor, MVB Technology, Flexia and the MVB Edge Ventures holding company. These operating segments are aggregated together as Edge Ventures and are all start-up Fintech software development companies. 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 March 31, 2022 CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 23,171 $ 103 $ — $ — $ (7) $ (5) $ 23,262 Interest expense 659 — 7 — 753 (5) 1,414 Net interest income (expense) 22,512 103 (7) — (760) — 21,848 Provision for loan losses 1,280 — — — — — 1,280 Net interest income (expense) after provision for loan losses 21,232 103 (7) — (760) — 20,568 Total noninterest income 6,898 1,223 5,557 75 2,671 (4,554) 11,870 Noninterest Expenses: Salaries and employee benefits 9,508 — 3,798 599 4,056 — 17,961 Other expenses 11,048 — 1,155 1,047 2,205 (4,554) 10,901 Total noninterest expenses 20,556 — 4,953 1,646 6,261 (4,554) 28,862 Income (loss) before income taxes 7,574 1,326 597 (1,571) (4,350) — 3,576 Income taxes 1,631 341 164 (362) (869) — 905 Net income (loss) 5,943 985 433 (1,209) (3,481) — 2,671 Net loss attributable to noncontrolling interest — — 95 98 — — 193 Net income (loss) available to common shareholders $ 5,943 $ 985 $ 528 $ (1,111) $ (3,481) $ — $ 2,864 Capital expenditures for the three months ended March 31, 2022 $ 250 $ — $ 21 $ 618 $ 338 $ — $ 1,227 Total assets as of March 31, 2022 2,908,045 51,632 14,677 18,947 349,824 (449,661) 2,893,464 Total assets as of December 31, 2021 2,804,840 50,202 — — 363,971 (449,688) 2,792,449 Goodwill as of March 31, 2022 — — 3,988 — — — 3,988 Goodwill as of December 31, 2021 — — 3,988 — — — 3,988 Three Months Ended March 31, 2021 CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 18,959 $ 104 $ — $ — $ 1 $ (1) $ 19,063 Interest expense 1,092 — — — 466 — 1,558 Net interest income (expense) 17,867 104 — — (465) (1) 17,505 Provision for (release of) loan losses 620 (2) — — — — 618 Net interest income (expense) after provision for (release of) loan losses 17,247 106 — — (465) (1) 16,887 Total noninterest income 4,745 6,407 1,692 — 1,581 (1,967) 12,458 Noninterest Expenses: Salaries and employee benefits 7,836 — 894 112 3,069 — 11,911 Other expenses 7,440 63 518 71 1,083 (1,968) 7,207 Total noninterest expenses 15,276 63 1,412 183 4,152 (1,968) 19,118 Income (loss) before income taxes 6,716 6,450 280 (183) (3,036) — 10,227 Income taxes 1,137 1,564 59 (47) (544) — 2,169 Net income (loss) 5,579 4,886 221 (136) (2,492) — 8,058 Net loss attributable to noncontrolling interest — — — 27 — — 27 Net income (loss) attributable to parent 5,579 4,886 221 (109) (2,492) — 8,085 Preferred stock dividends — — — — 35 — 35 Net income (loss) available to common shareholders $ 5,579 $ 4,886 $ 221 $ (109) $ (2,527) $ — $ 8,050 Capital expenditures for the three months ended March 31, 2021 $ 1,936 $ — $ — $ — $ — $ — $ 1,936 |
Pending Acquisition
Pending Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Pending Acquisition | Note 14 – Pending Acquisition Warp Speed Holdings LLC On March 13, 2022, the Bank entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Warp Speed Holdings LLC, a Wyoming limited liability company (“Warp Speed”), pursuant to which the Bank agreed to purchase Class B Common Units of Warp Speed in an amount equal to 37.5% of the outstanding equity interests of Warp Speed on a fully-diluted basis (the “MVB Investment”). On April 28, 2022, MVB Financial Corp. assumed the Bank's obligations under the Purchase Agreement. The aggregate consideration to be paid for the MVB Investment at closing pursuant to the Purchase Agreement is $38.4 million in cash, plus $9.6 million in shares of MVB common stock, with the number of shares of MVB common stock to be issued based on the volume-weighted average closing price for shares of MVB common stock for the 20 trading days ending the day prior to the closing date, which is expected to occur mid-2022. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. |
Basis of Presentation | 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 significant intercompany accounts and transactions have been eliminated in consolidated financial statements. 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, 2021 has been derived from audited financial statements included in the 2021 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 2021 Form 10-K. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
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. Purchased credit impaired ("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 as of the first quarter of 2022, we no longer qualified as an SRC. 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 currently expect to recognize a one-time cumulative effect adjustment to the ALL as of January 1, 2023, 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. This cross-functional team is currently in the process of testing the model and completing the implementation plan, which will include assessment and documentation of processes, internal controls and data sources; model testing 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 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 clarifies 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 over the next year. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The amendments eliminate the accounting guidance for troubled debt restructurings ("TDRs") in subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 of the codification to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments also include provisions for disclosure of current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost . Gross writeoff information must be included in the vintage disclosures required for public business entities which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. This amendment is effective concurrently with the amendments in ASU 2016-13 which is currently effective for fiscal years beginning after December 15, 2022. These amendments primarily impact disclosure requirements and we do not believe it will have a material impact on our consolidated financial statements. In March 2022, the SEC released Staff Accounting Bulletin No. 121 ("SAB 121") , which updates the SEC's position regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users. When a reporting entity holds crypto-assets for platform users and maintains the cryptographic key information necessary to access the crypto-asset, the reporting entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for platform users. The liability represents the loss exposure due to the risks associated with safeguarding crypto-assets. The entity should also record an asset at the same time that recognizes the fair value of the crypto-assets held for its platform users. SAB 121 is effective no later than the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We do not currently expect this update to impact our consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 54,992 $ 42 $ (2,583) $ 52,451 United States sponsored mortgage-backed securities 74,393 1 (5,913) 68,481 United States treasury securities 112,049 — (6,207) 105,842 Municipal securities 154,673 1,756 (5,086) 151,343 Corporate debt securities 8,801 16 (1) 8,816 Other debt securities 7,500 — — 7,500 Total debt securities 412,408 1,815 (19,790) 394,433 Other securities 868 — — 868 Total investment securities available-for-sale $ 413,276 $ 1,815 $ (19,790) $ 395,301 December 31, 2021 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 41,105 $ 228 $ (896) $ 40,437 United States sponsored mortgage-backed securities 77,519 222 (1,633) 76,108 United States treasury securities 112,133 — (1,744) 110,389 Municipal securities 171,044 4,334 (366) 175,012 Corporate debt securities 11,093 49 — 11,142 Other debt securities 7,500 — — 7,500 Total debt securities 420,394 4,833 (4,639) 420,588 Other securities 878 — — 878 Total investment securities available-for-sale $ 421,272 $ 4,833 $ (4,639) $ 421,466 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period indicated: March 31, 2022 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 1,002 $ 1,005 After one year, but within five years 123,837 117,572 After five years, but within ten years 32,690 31,219 After ten years 254,879 244,637 Total $ 412,408 $ 394,433 |
Investments in an Unrealized Loss Position | The following tables disclose the length of time that investments have remained in an unrealized loss position at March 31, 2022 and December 31, 2021: March 31, 2022 (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 (33) $ 13,511 $ (648) $ 19,897 $ (1,935) United States sponsored mortgage-backed securities (50) 29,379 (1,930) 38,704 (3,983) United States treasury securities (24) 105,841 (6,207) — — Municipal securities (98) 59,393 (4,402) 7,518 (684) Corporate debt securities (4) — (1) — — $ 208,124 $ (13,188) $ 66,119 $ (6,602) December 31, 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 (21) $ 5,101 $ (77) $ 21,770 $ (819) United States sponsored mortgage-backed securities (30) 55,354 (1,346) 7,845 (287) United States treasury securities (24) 110,389 (1,744) — — Municipal securities (53) 32,221 (270) 7,001 (96) $ 203,065 $ (3,437) $ 36,616 $ (1,202) |
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 March 31, (Dollars in thousands) 2022 2021 Sales of available-for-sale securities $ 60,635 $ 41,037 Gains, gross 717 1,156 Losses, gross 67 13 Unrealized holding gains (losses) on equity securities (59) 515 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, 2022 December 31, 2021 Commercial: Business 785,307 818,986 Real estate 599,262 561,718 Acquisition, development and construction 96,838 99,823 Total commercial $ 1,481,407 $ 1,480,527 Residential real estate 313,563 306,140 Home equity 21,424 22,186 Consumer 65,631 43,919 Total loans, excluding PCI 1,882,025 1,852,772 Purchased credit impaired loans: Commercial: Business 2,381 2,629 Real estate 9,140 11,018 Acquisition, development and construction 246 257 Total commercial $ 11,767 $ 13,904 Residential real estate 3,782 4,358 Consumer 398 413 Total purchased credit impaired loans 15,947 18,675 Total Loans $ 1,897,972 $ 1,871,447 Deferred loan origination costs and (fees), net (119) (1,609) Loans receivable $ 1,897,853 $ 1,869,838 |
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 March 31, 2022 Commercial Business $ 2,356 $ 218 $ 8,729 $ 11,085 $ 12,944 Real estate 661 224 535 1,196 1,315 Acquisition, development and construction — — 1,139 1,139 2,554 Total commercial 3,017 442 10,403 13,420 16,813 Residential 1,212 84 7,152 8,364 8,376 Home equity — — 230 230 235 Consumer 473 111 39 512 512 Total impaired loans $ 4,702 $ 637 $ 17,824 $ 22,526 $ 25,936 December 31, 2021 Commercial Business $ 2,401 $ 232 $ 8,796 $ 11,197 $ 13,010 Real estate 668 243 543 1,211 1,329 Acquisition, development and construction — — 1,392 1,392 2,807 Total commercial 3,069 475 10,731 13,800 17,146 Residential — — 8,179 8,179 8,219 Home equity — — 217 217 221 Consumer — — 259 259 259 Total impaired loans $ 3,069 $ 475 $ 19,386 $ 22,455 $ 25,845 (Dollars in thousands) March 31, 2022 December 31, 2021 Commercial Business 2,381 2,629 Real estate 9,140 11,018 Acquisition, development and construction 246 257 Total commercial $ 11,767 $ 13,904 Residential 3,782 4,358 Consumer 398 413 Outstanding balance $ 15,947 $ 18,675 Carrying amount, net of allowance $ 15,333 $ 18,012 |
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 March 31, 2022 2021 (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 Business $ 10,505 $ — $ — $ 6,521 $ — $ — Real estate 1,728 16 18 2,278 11 10 Acquisition, development and construction 322 — — 357 — — Total commercial 12,555 16 18 9,156 11 10 Residential 8,370 5 5 1,944 3 4 Home equity 190 — — 69 — — Consumer 433 — — 3 — — Total $ 21,548 $ 21 $ 23 $ 11,172 $ 14 $ 14 |
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 March 31, 2022 Commercial Business $ 754,937 $ 11,133 $ 19,212 $ 25 $ 785,307 Real estate 558,252 11,965 28,972 73 599,262 Acquisition, development and construction 89,471 4,955 1,592 820 96,838 Total commercial 1,402,660 28,053 49,776 918 1,481,407 Residential 302,094 794 8,701 1,974 313,563 Home equity 20,817 392 189 26 21,424 Consumer 65,113 7 511 — 65,631 Total loans $ 1,790,684 $ 29,246 $ 59,177 $ 2,918 $ 1,882,025 December 31, 2021 Commercial Business $ 789,413 $ 11,964 $ 17,581 $ 28 $ 818,986 Real estate 520,446 12,065 29,134 73 561,718 Acquisition, development and construction 89,768 4,960 4,031 1,064 99,823 Total commercial 1,399,627 28,989 50,746 1,165 1,480,527 Residential 294,933 899 9,815 493 306,140 Home equity 21,582 387 191 26 22,186 Consumer 43,645 15 259 — 43,919 Total loans $ 1,759,787 $ 30,290 $ 61,011 $ 1,684 $ 1,852,772 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 March 31, 2022 Commercial: Business $ 2,023 $ 151 $ 201 $ 6 $ 2,381 Real estate 5,489 1,483 2,168 — 9,140 Acquisition, development and construction 156 90 — — 246 Total commercial 7,668 1,724 2,369 6 11,767 Residential 3,049 — 733 — 3,782 Consumer 32 — 366 — 398 Total loans $ 10,749 $ 1,724 $ 3,468 $ 6 $ 15,947 December 31, 2021 Commercial: Business $ 2,257 $ 159 $ 207 $ 6 $ 2,629 Real estate 7,499 1,571 1,948 — 11,018 Acquisition, development and construction 178 79 — — 257 Total commercial 9,934 1,809 2,155 6 13,904 Residential 3,406 — 952 — 4,358 Consumer 36 — 377 — 413 Total loans $ 13,376 $ 1,809 $ 3,484 $ 6 $ 18,675 |
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 March 31, 2022 Commercial Business $ 781,516 $ 618 $ 21 $ 3,152 $ 3,791 $ 785,307 $ 7,873 $ — Real estate 599,064 — 125 73 198 599,262 224 — Acquisition, development and construction 95,770 — — 1,068 1,068 96,838 1,383 — Total commercial 1,476,350 618 146 4,293 5,057 1,481,407 9,480 — Residential 310,257 1,822 — 1,484 3,306 313,563 7,826 — Home equity 21,212 102 — 110 212 21,424 230 — Consumer 63,502 2,129 — — 2,129 65,631 512 — Total loans $ 1,871,321 $ 4,671 $ 146 $ 5,887 $ 10,704 $ 1,882,025 $ 18,048 $ — December 31, 2021 Commercial Business $ 815,766 $ 1,718 $ 11 $ 1,491 $ 3,220 $ 818,986 $ 8,261 $ — Real estate 561,519 126 — 73 199 561,718 192 — Acquisition, development and construction 98,524 67 412 820 1,299 99,823 1,392 — Total commercial 1,475,809 1,911 423 2,384 4,718 1,480,527 9,845 — Residential 300,988 3,343 285 1,524 5,152 306,140 7,636 — Home equity 21,974 — 119 93 212 22,186 217 — Consumer 41,991 1211 461 256 1928 43,919 259 — Total loans $ 1,840,762 $ 6,465 $ 1,288 $ 4,257 $ 12,010 $ 1,852,772 $ 17,957 $ — 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 March 31, 2022 Commercial: Business $ 2,174 $ — $ — $ 207 $ 207 $ 2,381 Real estate 5,798 230 47 3,065 3,342 9,140 Acquisition, development and construction 226 20 — — 20 246 Total commercial 8,198 250 47 3,272 3,569 11,767 Residential 2,702 347 — 733 1,080 3,782 Consumer 31 — — 367 367 398 Total loans $ 10,931 $ 597 $ 47 $ 4,372 $ 5,016 $ 15,947 December 31, 2021 Commercial: Business $ 2,416 $ — $ — $ 213 $ 213 $ 2,629 Real estate 7,680 649 — 2689 3338 11,018 Acquisition, development and construction 243 — — 14 14 257 Total commercial 10,339 649 — 2,916 3,565 13,904 Residential 3,081 325 — 952 1,277 4,358 Consumer 36 — — 377 377 413 Total loans $ 13,456 $ 974 $ — $ 4,245 $ 5,219 $ 18,675 |
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: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 948 $ 128 $ 2,427 $ 17,603 Charge-offs — — — — — — (1,124) (1,124) Recoveries 1 7 — 8 — 2 375 385 Provision (release) (1,159) 468 (247) (938) 179 1 2,088 1,330 ALL balance at March 31, 2022 $ 6,869 $ 5,566 $ 735 $ 13,170 $ 1,127 $ 131 $ 3,766 $ 18,194 Individually evaluated for impairment $ 218 $ 224 $ — $ 442 $ 84 $ — $ 111 $ 637 Collectively evaluated for impairment $ 6,651 $ 5,342 $ 735 $ 12,728 $ 1,043 $ 131 $ 3,655 $ 17,557 Substantially off of the charge-offs during three months ended March 31, 2022 are related to our subprime consumer automobile portfolio of loans. The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial March 31, 2022 Individually evaluated for impairment $ 11,085 $ 1,196 $ 1,139 $ 13,420 $ 8,364 $ 230 $ 512 $ 22,526 Collectively evaluated for impairment 774,222 598,066 95,699 1,467,987 305,199 21,194 65,119 1,859,499 Total Loans $ 785,307 $ 599,262 $ 96,838 $ 1,481,407 $ 313,563 $ 21,424 $ 65,631 $ 1,882,025 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: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,378 $ 298 $ 51 $ 25,760 Charge-offs (265) — — (265) — — — (265) Recoveries 10 — — 10 — 4 3 17 Provision (release) (220) 645 76 501 135 (19) (5) 612 ALL balance at March 31, 2021 $ 11,718 $ 9,724 $ 2,837 $ 24,279 $ 1,513 $ 283 $ 49 $ 26,124 Individually evaluated for impairment $ 743 $ 265 $ — $ 1,008 $ — $ — $ — $ 1,008 Collectively evaluated for impairment $ 10,975 $ 9,459 $ 2,837 $ 23,271 $ 1,513 $ 283 $ 49 $ 25,116 The following table presents the primary segments of our loan portfolio, excluding PCI loans, as of the period indicated: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial March 31, 2021 Individually evaluated for impairment $ 7,328 $ 1,723 $ 2,035 $ 11,086 $ 1,927 $ 95 $ 3 $ 13,111 Collectively evaluated for impairment 735,644 489,928 116,681 1,342,253 273,783 28,748 3,146 1,647,930 Total Loans $ 742,972 $ 491,651 $ 118,716 $ 1,353,339 $ 275,710 $ 28,843 $ 3,149 $ 1,661,041 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: Commercial (Dollars in thousands) Business Real Estate Total Commercial Residential Consumer Total ALL balance as of December 31, 2021 $ — $ — $ — $ 544 $ 119 $ 663 Recoveries 1 — 1 — — 1 Provision (release) 111 53 164 (221) 7 (50) ALL balance as of March 31, 2022 $ 112 $ 53 $ 165 $ 323 $ 126 $ 614 Collectively evaluated for impairment $ 112 $ 53 $ 165 $ 323 $ 126 $ 614 (Dollars in thousands) Commercial Business Residential Total ALL balance as of December 31, 2020 $ — $ 84 $ 84 Charge-offs — — — Provision (release) 90 (84) 6 ALL balance as of March 31, 2021 $ 90 $ — $ 90 Collectively evaluated for impairment $ 90 $ — $ 90 |
Schedule of Accretable Yield | The following table presents the accretable yield, or income expected to be collected, as of the three months ended March 31, 2022 and December 31, 2021, respectively: (Dollars in thousands) March 31, 2022 December 31, 2021 Beginning balance $ 6,505 $ 6,467 Accretion of income (808) (867) Other changes in expected cash flows 556 905 Ending balance $ 6,253 $ 6,505 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, 2022 December 31, 2021 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,409 16,841 Software 4,786 4,176 Construction in progress 580 531 Leasehold improvements 2,895 2,895 42,528 41,301 Accumulated depreciation (17,171) (16,249) Premises and equipment, net $ 25,357 $ 25,052 |
Summary of Lease Cost | The following table presents lease costs for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 508 $ 477 Short-term lease cost 6 1 Variable lease cost 10 10 Amortization of right-of-use assets, finance leases 14 14 Interest on lease liabilities, finance leases — 1 Total lease cost $ 538 $ 503 |
Summary of Finance Lease Liability | For finance leases and operating leases with initial or remaining terms of one year or more as of March 31, 2022, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases Finance Leases 2023 $ 1,460 $ 27 2024 1,897 5 2025 1,827 5 2026 1,826 4 2027 1,840 — 2028 and thereafter 12,984 — Total future minimum lease payments $ 21,834 $ 41 Less: Amounts representing interest (3,632) — Present value of net future minimum lease payments $ 18,202 $ 41 |
Summary of Operating Lease Liability | For finance leases and operating leases with initial or remaining terms of one year or more as of March 31, 2022, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases Finance Leases 2023 $ 1,460 $ 27 2024 1,897 5 2025 1,827 5 2026 1,826 4 2027 1,840 — 2028 and thereafter 12,984 — Total future minimum lease payments $ 21,834 $ 41 Less: Amounts representing interest (3,632) — Present value of net future minimum lease payments $ 18,202 $ 41 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 periods indicated. Three Months Ended March 31, (Dollars in thousands) 2022 2021 Total revenues $ 22,116 $ 50,797 Net income $ 3,230 $ 15,864 Gain on sale of loans $ 15,088 $ 47,594 Volume of loans sold $ 688,094 $ 1,778,090 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Deposits | The following table presents the components of deposits as of the periods indicated: (Dollars in thousands) March 31, 2022 December 31, 2021 Noninterest-bearing demand $ 1,308,998 $ 1,120,433 Interest-bearing demand 630,155 651,016 Savings and money markets 491,346 510,068 Time deposits, including CDs and IRAs 78,580 96,088 Total deposits $ 2,509,079 $ 2,377,605 Time deposits that meet or exceed the FDIC insurance limit $ 10,111 $ 9,573 |
Maturities of Time Deposits | The following table presents the maturities of time deposits for the twelve month periods ended March 31: (Dollars in thousands) 2023 $ 43,011 2024 20,114 2025 10,539 2026 3,207 2027 1,709 Total $ 78,580 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ — $ — Average balance during the period — 25,275 Maximum month-end balance — 130,047 Weighted-average rate during the period — % 0.05 % 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) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ 12,101 $ 11,385 Average balance during the period 11,823 10,821 Maximum month-end balance 12,680 11,398 Weighted-average rate during the period 0.05 % 0.12 % Weighted-average rate at end of period 0.05 % 0.05 % |
Information Related to Subordinated Debt | The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2022 Year Ended December 31, 2021 Balance at end of period $ 73,094 $ 73,030 Average balance during the period 73,062 51,149 Maximum month-end balance 73,094 73,030 Weighted-average rate during the period 4.12 % 4.28 % Weighted-average rate at end of period 3.74 % 3.71 % |
Pension and Supplemental Exec_2
Pension and Supplemental Executive Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and 2021 for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Interest cost $ 85 $ 78 Expected return on plan assets (167) (118) Amortization of net actuarial loss 107 127 Net periodic benefit cost $ 25 $ 87 Contributions paid $ — $ 3,835 There was no service cost or amortization of prior service cost for the three months ended March 31, 2022 and 2021. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, 2022 Financial Assets: Cash and cash equivalents $ 353,972 $ 353,972 $ 353,972 $ — $ — Certificates of deposit with banks 2,229 2,244 — 2,244 — Securities available-for-sale 395,301 395,301 — 355,633 39,668 Equity securities 34,447 34,447 247 — 34,200 Loans held-for-sale 9,161 9,161 — 9,161 — Loans receivable, net 1,879,045 1,892,687 — — 1,892,687 Servicing rights 2,711 2,729 — — 2,729 Interest rate swap 3,492 3,492 — 3,492 — Fair value hedge 873 873 — 873 — Accrued interest receivable 8,234 8,234 — 2,413 5,821 Bank-owned life insurance 42,500 42,500 — 42,500 — Financial Liabilities: Deposits $ 2,509,079 $ 2,468,181 $ — $ 2,468,181 $ — Repurchase agreements 12,101 12,101 — 12,101 — Interest rate swap 3,492 3,492 — 3,492 — Fair value hedge 148 148 — 148 — Accrued interest payable 1,238 1,238 — 1,238 — Subordinated debt 73,094 73,319 — 73,319 — December 31, 2021 Financial assets: Cash and cash equivalents $ 307,437 $ 307,437 $ 307,437 $ — $ — Certificates of deposits with banks 2,719 2,738 — 2,738 — Securities available-for-sale 421,466 421,466 — 379,703 41,763 Equity securities 32,402 32,402 247 — 32,155 Loans receivable, net 1,851,572 1,865,013 — — 1,865,013 Servicing rights 2,812 2,831 — — 2,831 Interest rate swap 6,702 6,702 — 6,702 — Fair value hedge 1,552 1,552 — 1,552 Accrued interest receivable 7,860 7,860 — 2,402 5,458 Bank-owned life insurance 42,257 42,257 — 42,257 — Financial liabilities: Deposits $ 2,377,605 $ 2,338,868 $ — $ 2,338,868 $ — Repurchase agreements 11,385 11,385 — 11,385 — Interest rate swap 6,702 6,702 — 6,702 — Fair value hedge 807 807 — 807 — Accrued interest payable 690 690 — 690 — Subordinated debt 73,030 74,774 — 74,774 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair value of assets and liabilities | |
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets, consisting of only municipal securities, as of the periods indicated: (Dollars in thousands) Total Balance at December 31, 2021 $ 41,763 Realized and unrealized gains included in earnings 7 Purchase of securities 862 Maturities/calls (2,290) Unrealized gain included in other comprehensive income (loss) 1,766 Unrealized loss included in other comprehensive income (loss) (2,440) Balance at March 31, 2022 $ 39,668 Balance at December 31, 2020 $ 43,679 Realized and unrealized losses included in earnings 19 Purchase of securities 1,191 Maturities/calls (3,933) Unrealized gain included in other comprehensive income (loss) 1,127 Unrealized loss included in other comprehensive income (loss) (1,811) Balance at March 31, 2021 $ 40,272 |
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 March 31, 2022 Nonrecurring measurements: Impaired loans $ 21,889 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 2 5% - 10% Other real estate owned $ 2,106 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 2 5% - 10% Recurring measurements: Municipal securities 5 $ 39,668 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% December 31, 2021 Nonrecurring measurements: Impaired loans $ 21,980 Appraisal of collateral 1 Appraisal adjustments 2 10% - 20% Liquidation expense 2 5% - 10% Other real estate owned $ 2,330 Appraisal of collateral 1 Appraisal adjustments 2 10% - 20% Liquidation expense 2 5% - 10% Other debt securities $ 7,500 Net asset value Cost minus impairment —% Equity securities $ 32,155 Net asset value Cost minus impairment —% Recurring measurements: Municipal securities 5 $ 41,763 Appraisal of bond 3 Bond appraisal adjustment 4 1% - 20% 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, liquidity, marketability and legal structure. 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: March 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 52,451 $ — $ 52,451 United States sponsored mortgage-backed securities — 68,481 — 68,481 United States treasury securities — 105,842 — 105,842 Municipal securities — 111,675 39,668 151,343 Other securities — 868 — 868 Equity securities 247 — — 247 Interest rate swap — 3,492 — 3,492 Fair value hedge — 873 — 873 Liabilities: Interest rate swap — 3,492 — 3,492 Fair value hedge — 148 — 148 December 31, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 40,437 $ — $ 40,437 United States sponsored mortgage-backed securities — 76,108 — 76,108 Municipal securities — 133,249 41,763 175,012 Other securities — 878 — 878 Equity securities 247 — — 247 Interest rate swap — 6,702 — 6,702 Fair value hedge — 1,552 — 1,552 Liabilities: Interest rate swap — 6,702 — 6,702 Fair value hedge — 807 — 807 |
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: March 31, 2022 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 21,889 $ 21,889 Other real estate owned — — 2,106 2,106 December 31, 2021 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 21,980 $ 21,980 Other real estate owned — — 2,330 2,330 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, (Dollars in thousands except shares and per share data) 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 2,864 $ 8,085 Less: Dividends on preferred stock — 35 Net income available to common shareholders - basic $ 2,864 $ 8,050 Denominator: Total weighted-average shares outstanding 12,093,179 11,530,279 Effect of dilutive stock options and restricted stock units 834,632 756,452 Total diluted weighted-average shares outstanding 12,927,811 12,286,731 Earnings per share - basic $ 0.24 $ 0.70 Earnings per share - diluted $ 0.22 $ 0.66 Securities not included in the computation of diluted EPS because the effect would be antidilutive 405,994 111,148 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, (Dollars in thousands) 2022 2021 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Unrealized holding gains $ 650 $ 1,143 Gain on sale of available-for-sale securities (152) (268) Income tax effect 498 875 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (107) (127) Salaries and employee benefits 25 30 Income tax effect (82) (97) Net of tax Investment hedge Carrying value adjustment 10 (264) Interest on investment securities (2) 62 Income tax effect 8 (202) Net of tax Total reclassifications $ 424 $ 576 |
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 December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (13,415) 283 — (13,132) Amounts reclassified from accumulated other comprehensive income (loss) (498) 82 (8) (424) Net current period other comprehensive income (loss) (13,913) 365 (8) (13,556) Balance at March 31, 2022 $ (13,766) $ (3,704) $ 308 $ (17,162) Balance at December 31, 2020 7,586 (5,047) (313) 2,226 Other comprehensive income (loss) before reclassification (4,848) 1,306 — (3,542) Amounts reclassified from accumulated other comprehensive income (loss) (875) 97 202 (576) Net current period other comprehensive income (loss) (5,723) 1,403 202 (4,118) Balance at March 31, 2021 $ 1,863 $ (3,644) $ (111) $ (1,892) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 23,171 $ 103 $ — $ — $ (7) $ (5) $ 23,262 Interest expense 659 — 7 — 753 (5) 1,414 Net interest income (expense) 22,512 103 (7) — (760) — 21,848 Provision for loan losses 1,280 — — — — — 1,280 Net interest income (expense) after provision for loan losses 21,232 103 (7) — (760) — 20,568 Total noninterest income 6,898 1,223 5,557 75 2,671 (4,554) 11,870 Noninterest Expenses: Salaries and employee benefits 9,508 — 3,798 599 4,056 — 17,961 Other expenses 11,048 — 1,155 1,047 2,205 (4,554) 10,901 Total noninterest expenses 20,556 — 4,953 1,646 6,261 (4,554) 28,862 Income (loss) before income taxes 7,574 1,326 597 (1,571) (4,350) — 3,576 Income taxes 1,631 341 164 (362) (869) — 905 Net income (loss) 5,943 985 433 (1,209) (3,481) — 2,671 Net loss attributable to noncontrolling interest — — 95 98 — — 193 Net income (loss) available to common shareholders $ 5,943 $ 985 $ 528 $ (1,111) $ (3,481) $ — $ 2,864 Capital expenditures for the three months ended March 31, 2022 $ 250 $ — $ 21 $ 618 $ 338 $ — $ 1,227 Total assets as of March 31, 2022 2,908,045 51,632 14,677 18,947 349,824 (449,661) 2,893,464 Total assets as of December 31, 2021 2,804,840 50,202 — — 363,971 (449,688) 2,792,449 Goodwill as of March 31, 2022 — — 3,988 — — — 3,988 Goodwill as of December 31, 2021 — — 3,988 — — — 3,988 Three Months Ended March 31, 2021 CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 18,959 $ 104 $ — $ — $ 1 $ (1) $ 19,063 Interest expense 1,092 — — — 466 — 1,558 Net interest income (expense) 17,867 104 — — (465) (1) 17,505 Provision for (release of) loan losses 620 (2) — — — — 618 Net interest income (expense) after provision for (release of) loan losses 17,247 106 — — (465) (1) 16,887 Total noninterest income 4,745 6,407 1,692 — 1,581 (1,967) 12,458 Noninterest Expenses: Salaries and employee benefits 7,836 — 894 112 3,069 — 11,911 Other expenses 7,440 63 518 71 1,083 (1,968) 7,207 Total noninterest expenses 15,276 63 1,412 183 4,152 (1,968) 19,118 Income (loss) before income taxes 6,716 6,450 280 (183) (3,036) — 10,227 Income taxes 1,137 1,564 59 (47) (544) — 2,169 Net income (loss) 5,579 4,886 221 (136) (2,492) — 8,058 Net loss attributable to noncontrolling interest — — — 27 — — 27 Net income (loss) attributable to parent 5,579 4,886 221 (109) (2,492) — 8,085 Preferred stock dividends — — — — 35 — 35 Net income (loss) available to common shareholders $ 5,579 $ 4,886 $ 221 $ (109) $ (2,527) $ — $ 8,050 Capital expenditures for the three months ended March 31, 2021 $ 1,936 $ — $ — $ — $ — $ — $ 1,936 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Narrative (Details) | Mar. 31, 2022investment |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of equity method investments | 3 |
Flexia | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ownership percentage | 80.00% |
Trabian | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ownership percentage | 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% |
Trabian | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ownership percentage by noncontrolling owners | 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 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 413,276 | $ 421,272 |
Unrealized Gain | 1,815 | 4,833 |
Unrealized Loss | (19,790) | (4,639) |
Fair Value | 395,301 | 421,466 |
Total debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 412,408 | 420,394 |
Unrealized Gain | 1,815 | 4,833 |
Unrealized Loss | (19,790) | (4,639) |
Fair Value | 394,433 | 420,588 |
United States government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,992 | 41,105 |
Unrealized Gain | 42 | 228 |
Unrealized Loss | (2,583) | (896) |
Fair Value | 52,451 | 40,437 |
United States sponsored mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 74,393 | 77,519 |
Unrealized Gain | 1 | 222 |
Unrealized Loss | (5,913) | (1,633) |
Fair Value | 68,481 | 76,108 |
United States treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 112,049 | 112,133 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (6,207) | (1,744) |
Fair Value | 105,842 | 110,389 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 154,673 | 171,044 |
Unrealized Gain | 1,756 | 4,334 |
Unrealized Loss | (5,086) | (366) |
Fair Value | 151,343 | 175,012 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,801 | 11,093 |
Unrealized Gain | 16 | 49 |
Unrealized Loss | (1) | 0 |
Fair Value | 8,816 | 11,142 |
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 | 868 | 878 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | $ 868 | $ 878 |
Investment Securities - Summary
Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale, Amortized Cost | ||
Amortized Cost | $ 413,276 | $ 421,272 |
Available for sale, Fair Value | ||
Fair Value | 395,301 | 421,466 |
Total debt securities | ||
Available for sale, Amortized Cost | ||
Within one year | 1,002 | |
After one year, but within five years | 123,837 | |
After five years, but within ten years | 32,690 | |
After ten years | 254,879 | |
Amortized Cost | 412,408 | 420,394 |
Available for sale, Fair Value | ||
Within one year | 1,005 | |
After one year, but within five years | 117,572 | |
After five years, but within ten years | 31,219 | |
After ten years | 244,637 | |
Fair Value | $ 394,433 | $ 420,588 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Loss Positions (Details) $ in Thousands | Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan |
Investments in an unrealized loss position | ||
Carrying value of securities pledged | $ 245,400 | $ 244,600 |
Amount of pretax loss if securities in an unrealized loss position are sold | 19,800 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | 208,124 | 203,065 |
Less than 12 months, unrealized loss | (13,188) | (3,437) |
12 months or more, fair value | 66,119 | 36,616 |
12 months or more, unrealized loss | $ (6,602) | $ (1,202) |
United States government agency securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 33 | 21 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 13,511 | $ 5,101 |
Less than 12 months, unrealized loss | (648) | (77) |
12 months or more, fair value | 19,897 | 21,770 |
12 months or more, unrealized loss | $ (1,935) | $ (819) |
United States sponsored mortgage-backed securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 50 | 30 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 29,379 | $ 55,354 |
Less than 12 months, unrealized loss | (1,930) | (1,346) |
12 months or more, fair value | 38,704 | 7,845 |
12 months or more, unrealized loss | $ (3,983) | $ (287) |
United States treasury securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 24 | 24 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 105,841 | $ 110,389 |
Less than 12 months, unrealized loss | (6,207) | (1,744) |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized loss | $ 0 | $ 0 |
Municipal securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 98 | 53 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 59,393 | $ 32,221 |
Less than 12 months, unrealized loss | (4,402) | (270) |
12 months or more, fair value | 7,518 | 7,001 |
12 months or more, unrealized loss | $ (684) | $ (96) |
Corporate debt securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 4 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | |
Less than 12 months, unrealized loss | (1) | |
12 months or more, fair value | 0 | |
12 months or more, unrealized loss | $ 0 |
Investment Securities - Gains (
Investment Securities - Gains (losses) on sales of investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales of available-for-sale securities | $ 60,635 | $ 41,037 |
Gains, gross | 717 | 1,156 |
Losses, gross | 67 | 13 |
Unrealized holding gains (losses) on equity securities | $ (59) | $ 515 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Components of loans | |||
Total loans, excluding PCI | $ 1,882,025 | $ 1,852,772 | $ 1,661,041 |
Collectively evaluated for impairment | 1,859,499 | 1,647,930 | |
Total loans | 1,897,972 | 1,871,447 | |
Deferred loan origination costs and (fees), net | (119) | (1,609) | |
Loans receivable | 1,897,853 | 1,869,838 | |
Purchased credit impaired loans | |||
Components of loans | |||
Collectively evaluated for impairment | 15,900 | ||
Total loans | 15,947 | 18,675 | |
Total commercial | |||
Components of loans | |||
Total loans, excluding PCI | 1,481,407 | 1,480,527 | 1,353,339 |
Collectively evaluated for impairment | 1,467,987 | 1,342,253 | |
Total commercial | Business | |||
Components of loans | |||
Total loans, excluding PCI | 785,307 | 818,986 | 742,972 |
Collectively evaluated for impairment | 774,222 | 735,644 | |
Total commercial | Real estate | |||
Components of loans | |||
Total loans, excluding PCI | 599,262 | 561,718 | 491,651 |
Collectively evaluated for impairment | 598,066 | 489,928 | |
Total commercial | Acquisition, development and construction | |||
Components of loans | |||
Total loans, excluding PCI | 96,838 | 99,823 | 118,716 |
Collectively evaluated for impairment | 95,699 | 116,681 | |
Total commercial | Purchased credit impaired loans | |||
Components of loans | |||
Collectively evaluated for impairment | 11,767 | 13,904 | |
Total loans | 11,767 | 13,904 | |
Total commercial | Purchased credit impaired loans | Business | |||
Components of loans | |||
Collectively evaluated for impairment | 2,381 | 2,629 | |
Total loans | 2,381 | 2,629 | |
Total commercial | Purchased credit impaired loans | Real estate | |||
Components of loans | |||
Collectively evaluated for impairment | 9,140 | 11,018 | |
Total loans | 9,140 | 11,018 | |
Total commercial | Purchased credit impaired loans | Acquisition, development and construction | |||
Components of loans | |||
Collectively evaluated for impairment | 246 | 257 | |
Total loans | 246 | 257 | |
Residential real estate | |||
Components of loans | |||
Total loans, excluding PCI | 313,563 | 306,140 | 275,710 |
Collectively evaluated for impairment | 305,199 | 273,783 | |
Residential real estate | Purchased credit impaired loans | |||
Components of loans | |||
Collectively evaluated for impairment | 3,782 | 4,358 | |
Total loans | 3,782 | 4,358 | |
Home equity | |||
Components of loans | |||
Total loans, excluding PCI | 21,424 | 22,186 | |
Consumer | |||
Components of loans | |||
Total loans, excluding PCI | 65,631 | 43,919 | 3,149 |
Collectively evaluated for impairment | 65,119 | $ 3,146 | |
Consumer | Purchased credit impaired loans | |||
Components of loans | |||
Collectively evaluated for impairment | 398 | 413 | |
Total loans | $ 398 | $ 413 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | $ 4,702 | $ 3,069 | |
Impaired loans with specific allowance, related allowance | 637 | 475 | |
Impaired loans with no specific allowance, recorded investment | 17,824 | 19,386 | |
Total impaired loans, recorded investment | 22,526 | 22,455 | |
Total impaired loans, unpaid principal balance | 25,936 | 25,845 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 21,548 | $ 11,172 | |
Interest Income Recognized on Accrual Basis | 21 | 14 | |
Interest Income Recognized on Cash Basis | 23 | 14 | |
Total commercial | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 3,017 | 3,069 | |
Impaired loans with specific allowance, related allowance | 442 | 475 | |
Impaired loans with no specific allowance, recorded investment | 10,403 | 10,731 | |
Total impaired loans, recorded investment | 13,420 | 13,800 | |
Total impaired loans, unpaid principal balance | 16,813 | 17,146 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 12,555 | 9,156 | |
Interest Income Recognized on Accrual Basis | 16 | 11 | |
Interest Income Recognized on Cash Basis | 18 | 10 | |
Total commercial | Business | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 2,356 | 2,401 | |
Impaired loans with specific allowance, related allowance | 218 | 232 | |
Impaired loans with no specific allowance, recorded investment | 8,729 | 8,796 | |
Total impaired loans, recorded investment | 11,085 | 11,197 | |
Total impaired loans, unpaid principal balance | 12,944 | 13,010 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 10,505 | 6,521 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Total commercial | Real estate | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 661 | 668 | |
Impaired loans with specific allowance, related allowance | 224 | 243 | |
Impaired loans with no specific allowance, recorded investment | 535 | 543 | |
Total impaired loans, recorded investment | 1,196 | 1,211 | |
Total impaired loans, unpaid principal balance | 1,315 | 1,329 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 1,728 | 2,278 | |
Interest Income Recognized on Accrual Basis | 16 | 11 | |
Interest Income Recognized on Cash Basis | 18 | 10 | |
Total commercial | Acquisition, development and construction | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 0 | 0 | |
Impaired loans with specific allowance, related allowance | 0 | 0 | |
Impaired loans with no specific allowance, recorded investment | 1,139 | 1,392 | |
Total impaired loans, recorded investment | 1,139 | 1,392 | |
Total impaired loans, unpaid principal balance | 2,554 | 2,807 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 322 | 357 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Residential real estate | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 1,212 | 0 | |
Impaired loans with specific allowance, related allowance | 84 | 0 | |
Impaired loans with no specific allowance, recorded investment | 7,152 | 8,179 | |
Total impaired loans, recorded investment | 8,364 | 8,179 | |
Total impaired loans, unpaid principal balance | 8,376 | 8,219 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 8,370 | 1,944 | |
Interest Income Recognized on Accrual Basis | 5 | 3 | |
Interest Income Recognized on Cash Basis | 5 | 4 | |
Home Equity | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 0 | 0 | |
Impaired loans with specific allowance, related allowance | 0 | 0 | |
Impaired loans with no specific allowance, recorded investment | 230 | 217 | |
Total impaired loans, recorded investment | 230 | 217 | |
Total impaired loans, unpaid principal balance | 235 | 221 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 190 | 69 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Consumer | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 473 | 0 | |
Impaired loans with specific allowance, related allowance | 111 | 0 | |
Impaired loans with no specific allowance, recorded investment | 39 | 259 | |
Total impaired loans, recorded investment | 512 | 259 | |
Total impaired loans, unpaid principal balance | 512 | $ 259 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 433 | 3 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)categoryloanproperty | Dec. 31, 2021USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Foreclosed properties held | $ 2,100,000 | |
Investment in loans in the process of foreclosure | 2,100,000 | |
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, related reserves | $ 100,000 | $ 100,000 |
Number of rolling quarters | loan | 12 | |
Liability for unfunded commitments | $ 500,000 | $ 500,000 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Foreclosed properties held | $ 1,900,000 | |
Increase (decrease) in impaired loans (as a percentage) | 90.00% | |
Number foreclosed properties held | property | 4 | |
Residential real estate | Other Loan Relationships | ||
Financing Receivable, Impaired [Line Items] | ||
Foreclosed properties held | $ 200,000 | |
Increase (decrease) in impaired loans (as a percentage) | 10.00% | |
Total commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Number foreclosed properties held | property | 7 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Number of additional collateralized loans in the process of foreclosure | loan | 11 | |
Investment in loans in the process of foreclosure | $ 1,400,000 | |
The First State Bank | ||
Financing Receivable, Impaired [Line Items] | ||
Foreclosed properties held | 1,500,000 | |
The First State Bank | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Investment in loans in the process of foreclosure | $ 700,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | $ 1,882,025 | $ 1,852,772 | $ 1,661,041 |
Total loans | 1,897,972 | 1,871,447 | |
Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,481,407 | 1,480,527 | 1,353,339 |
Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 785,307 | 818,986 | 742,972 |
Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 599,262 | 561,718 | 491,651 |
Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 96,838 | 99,823 | 118,716 |
Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 313,563 | 306,140 | 275,710 |
Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 21,424 | 22,186 | 28,843 |
Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 65,631 | 43,919 | $ 3,149 |
Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 15,947 | 18,675 | |
Purchased credit impaired loans | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 11,767 | 13,904 | |
Purchased credit impaired loans | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 2,381 | 2,629 | |
Purchased credit impaired loans | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 9,140 | 11,018 | |
Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 246 | 257 | |
Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 3,782 | 4,358 | |
Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 398 | 413 | |
Pass | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,790,684 | 1,759,787 | |
Pass | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,402,660 | 1,399,627 | |
Pass | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 754,937 | 789,413 | |
Pass | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 558,252 | 520,446 | |
Pass | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 89,471 | 89,768 | |
Pass | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 302,094 | 294,933 | |
Pass | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 20,817 | 21,582 | |
Pass | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 65,113 | 43,645 | |
Pass | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 10,749 | 13,376 | |
Pass | Purchased credit impaired loans | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 7,668 | 9,934 | |
Pass | Purchased credit impaired loans | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 2,023 | 2,257 | |
Pass | Purchased credit impaired loans | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 5,489 | 7,499 | |
Pass | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 156 | 178 | |
Pass | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 3,049 | 3,406 | |
Pass | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 32 | 36 | |
Special Mention | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 29,246 | 30,290 | |
Special Mention | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 28,053 | 28,989 | |
Special Mention | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 11,133 | 11,964 | |
Special Mention | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 11,965 | 12,065 | |
Special Mention | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 4,955 | 4,960 | |
Special Mention | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 794 | 899 | |
Special Mention | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 392 | 387 | |
Special Mention | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 7 | 15 | |
Special Mention | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 1,724 | 1,809 | |
Special Mention | Purchased credit impaired loans | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 1,724 | 1,809 | |
Special Mention | Purchased credit impaired loans | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 151 | 159 | |
Special Mention | Purchased credit impaired loans | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 1,483 | 1,571 | |
Special Mention | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 90 | 79 | |
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 | 59,177 | 61,011 | |
Substandard | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 49,776 | 50,746 | |
Substandard | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 19,212 | 17,581 | |
Substandard | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 28,972 | 29,134 | |
Substandard | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,592 | 4,031 | |
Substandard | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 8,701 | 9,815 | |
Substandard | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 189 | 191 | |
Substandard | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 511 | 259 | |
Substandard | Purchased credit impaired loans | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 3,468 | 3,484 | |
Substandard | Purchased credit impaired loans | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 2,369 | 2,155 | |
Substandard | Purchased credit impaired loans | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 201 | 207 | |
Substandard | Purchased credit impaired loans | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 2,168 | 1,948 | |
Substandard | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 0 | 0 | |
Substandard | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 733 | 952 | |
Substandard | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 366 | 377 | |
Doubtful | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 2,918 | 1,684 | |
Doubtful | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 918 | 1,165 | |
Doubtful | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 25 | 28 | |
Doubtful | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 73 | 73 | |
Doubtful | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 820 | 1,064 | |
Doubtful | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 1,974 | 493 | |
Doubtful | Home Equity | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans, excluding PCI | 26 | 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 | 6 | 6 | |
Doubtful | Purchased credit impaired loans | Total commercial | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 6 | 6 | |
Doubtful | Purchased credit impaired loans | Total commercial | Business | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 6 | 6 | |
Doubtful | Purchased credit impaired loans | Total commercial | Real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 0 | 0 | |
Doubtful | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 0 | 0 | |
Doubtful | Purchased credit impaired loans | Residential real estate | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | 0 | 0 | |
Doubtful | Purchased credit impaired loans | Consumer | |||
Classes of the loan portfolio summarized by credit quality indicators: | |||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aging (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | $ 1,882,025 | $ 1,852,772 | $ 1,661,041 |
Total loans | 1,897,972 | 1,871,447 | |
Non-Accrual | 18,048 | 17,957 | |
90 Plus Days Still Accruing | 0 | 0 | |
Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,481,407 | 1,480,527 | 1,353,339 |
Non-Accrual | 9,480 | 9,845 | |
90 Plus Days Still Accruing | 0 | 0 | |
Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 785,307 | 818,986 | 742,972 |
Non-Accrual | 7,873 | 8,261 | |
90 Plus Days Still Accruing | 0 | 0 | |
Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 599,262 | 561,718 | 491,651 |
Non-Accrual | 224 | 192 | |
90 Plus Days Still Accruing | 0 | 0 | |
Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 96,838 | 99,823 | 118,716 |
Non-Accrual | 1,383 | 1,392 | |
90 Plus Days Still Accruing | 0 | 0 | |
Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 313,563 | 306,140 | 275,710 |
Non-Accrual | 7,826 | 7,636 | |
90 Plus Days Still Accruing | 0 | 0 | |
Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 21,424 | 22,186 | 28,843 |
Non-Accrual | 230 | 217 | |
90 Plus Days Still Accruing | 0 | 0 | |
Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 65,631 | 43,919 | $ 3,149 |
Non-Accrual | 512 | 259 | |
90 Plus Days Still Accruing | 0 | 0 | |
Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 15,947 | 18,675 | |
Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 11,767 | 13,904 | |
Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,381 | 2,629 | |
Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 9,140 | 11,018 | |
Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 246 | 257 | |
Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 3,782 | 4,358 | |
Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 398 | 413 | |
Current | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,871,321 | 1,840,762 | |
Current | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,476,350 | 1,475,809 | |
Current | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 781,516 | 815,766 | |
Current | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 599,064 | 561,519 | |
Current | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 95,770 | 98,524 | |
Current | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 310,257 | 300,988 | |
Current | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 21,212 | 21,974 | |
Current | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 63,502 | 41,991 | |
Current | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 10,931 | 13,456 | |
Current | Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 8,198 | 10,339 | |
Current | Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,174 | 2,416 | |
Current | Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 5,798 | 7,680 | |
Current | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 226 | 243 | |
Current | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,702 | 3,081 | |
Current | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 31 | 36 | |
30-59 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 4,671 | 6,465 | |
30-59 Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 618 | 1,911 | |
30-59 Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 618 | 1,718 | |
30-59 Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 126 | |
30-59 Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 67 | |
30-59 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,822 | 3,343 | |
30-59 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 102 | 0 | |
30-59 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 2,129 | 1,211 | |
30-59 Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 597 | 974 | |
30-59 Days Past Due | Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 250 | 649 | |
30-59 Days Past Due | Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
30-59 Days Past Due | Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 230 | 649 | |
30-59 Days Past Due | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 20 | 0 | |
30-59 Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 347 | 325 | |
30-59 Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 146 | 1,288 | |
60-89 Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 146 | 423 | |
60-89 Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 21 | 11 | |
60-89 Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 125 | 0 | |
60-89 Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 412 | |
60-89 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 285 | |
60-89 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 119 | |
60-89 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 461 | |
60-89 Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 47 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 47 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 47 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
90+ Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 5,887 | 4,257 | |
90+ Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 4,293 | 2,384 | |
90+ Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3,152 | 1,491 | |
90+ Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 73 | 73 | |
90+ Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,068 | 820 | |
90+ Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,484 | 1,524 | |
90+ Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 110 | 93 | |
90+ Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 0 | 256 | |
90+ Days Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 4,372 | 4,245 | |
90+ Days Past Due | Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 3,272 | 2,916 | |
90+ Days Past Due | Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 207 | 213 | |
90+ Days Past Due | Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 3,065 | 2,689 | |
90+ Days Past Due | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 14 | |
90+ Days Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 733 | 952 | |
90+ Days Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 367 | 377 | |
Total Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 10,704 | 12,010 | |
Total Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 5,057 | 4,718 | |
Total Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3,791 | 3,220 | |
Total Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 198 | 199 | |
Total Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 1,068 | 1,299 | |
Total Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 3,306 | 5,152 | |
Total Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 212 | 212 | |
Total Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans, excluding PCI | 2,129 | 1,928 | |
Total Past Due | Purchased credit impaired loans | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 5,016 | 5,219 | |
Total Past Due | Purchased credit impaired loans | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 3,569 | 3,565 | |
Total Past Due | Purchased credit impaired loans | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 207 | 213 | |
Total Past Due | Purchased credit impaired loans | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 3,342 | 3,338 | |
Total Past Due | Purchased credit impaired loans | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 20 | 14 | |
Total Past Due | Purchased credit impaired loans | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,080 | 1,277 | |
Total Past Due | Purchased credit impaired loans | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | $ 367 | $ 377 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | $ 17,603 | $ 25,760 |
Balance at beginning of period | 18,266 | |
Charge-offs | (1,124) | (265) |
Recoveries | 385 | 17 |
Provision (release) | 1,330 | 612 |
Ending balance, excluding PCI loans acquired | 18,194 | 26,124 |
Balance at end of period | 18,808 | |
Individually evaluated for impairment | 637 | 1,008 |
Collectively evaluated for impairment | 17,557 | 25,116 |
Purchased credit impaired loans | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 663 | 84 |
Charge-offs | 0 | |
Recoveries | 1 | |
Provision (release) | (50) | 6 |
Balance at end of period | 614 | 90 |
Collectively evaluated for impairment | 614 | 90 |
Total commercial | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 14,100 | 24,033 |
Charge-offs | 0 | (265) |
Recoveries | 8 | 10 |
Provision (release) | (938) | 501 |
Ending balance, excluding PCI loans acquired | 13,170 | 24,279 |
Individually evaluated for impairment | 442 | 1,008 |
Collectively evaluated for impairment | 12,728 | 23,271 |
Total commercial | Business | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 8,027 | 12,193 |
Charge-offs | 0 | (265) |
Recoveries | 1 | 10 |
Provision (release) | (1,159) | (220) |
Ending balance, excluding PCI loans acquired | 6,869 | 11,718 |
Individually evaluated for impairment | 218 | 743 |
Collectively evaluated for impairment | 6,651 | 10,975 |
Total commercial | Real estate | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 5,091 | 9,079 |
Charge-offs | 0 | 0 |
Recoveries | 7 | 0 |
Provision (release) | 468 | 645 |
Ending balance, excluding PCI loans acquired | 5,566 | 9,724 |
Individually evaluated for impairment | 224 | 265 |
Collectively evaluated for impairment | 5,342 | 9,459 |
Total commercial | Acquisition, development and construction | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 982 | 2,761 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (release) | (247) | 76 |
Ending balance, excluding PCI loans acquired | 735 | 2,837 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 735 | 2,837 |
Total commercial | Purchased credit impaired loans | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 0 | |
Recoveries | 1 | |
Provision (release) | 164 | |
Balance at end of period | 165 | |
Collectively evaluated for impairment | 165 | |
Total commercial | Purchased credit impaired loans | Business | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 0 | 0 |
Charge-offs | 0 | |
Recoveries | 1 | |
Provision (release) | 111 | 90 |
Balance at end of period | 112 | 90 |
Collectively evaluated for impairment | 112 | 90 |
Total commercial | Purchased credit impaired loans | Real estate | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 0 | |
Recoveries | 0 | |
Provision (release) | 53 | |
Balance at end of period | 53 | |
Collectively evaluated for impairment | 53 | |
Residential real estate | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 948 | 1,378 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (release) | 179 | 135 |
Ending balance, excluding PCI loans acquired | 1,127 | 1,513 |
Individually evaluated for impairment | 84 | 0 |
Collectively evaluated for impairment | 1,043 | 1,513 |
Residential real estate | Purchased credit impaired loans | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 544 | 84 |
Charge-offs | 0 | |
Recoveries | 0 | |
Provision (release) | (221) | (84) |
Balance at end of period | 323 | 0 |
Collectively evaluated for impairment | 323 | 0 |
Home Equity | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 128 | 298 |
Charge-offs | 0 | 0 |
Recoveries | 2 | 4 |
Provision (release) | 1 | (19) |
Ending balance, excluding PCI loans acquired | 131 | 283 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 131 | 283 |
Consumer | ||
Changes in the allowance for loan losses | ||
Beginning balance, excluding PCI loans acquired | 2,427 | 51 |
Charge-offs | (1,124) | 0 |
Recoveries | 375 | 3 |
Provision (release) | 2,088 | (5) |
Ending balance, excluding PCI loans acquired | 3,766 | 49 |
Individually evaluated for impairment | 111 | 0 |
Collectively evaluated for impairment | 3,655 | $ 49 |
Consumer | Purchased credit impaired loans | ||
Changes in the allowance for loan losses | ||
Balance at beginning of period | 119 | |
Recoveries | 0 | |
Provision (release) | 7 | |
Balance at end of period | 126 | |
Collectively evaluated for impairment | $ 126 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Primary Segments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Components of loans | |||
Individually evaluated for impairment | $ 22,526 | $ 13,111 | |
Collectively evaluated for impairment | 1,859,499 | 1,647,930 | |
Total loans, excluding acquired | 1,882,025 | $ 1,852,772 | 1,661,041 |
Total loans | 1,897,972 | 1,871,447 | |
Total commercial | |||
Components of loans | |||
Individually evaluated for impairment | 13,420 | 11,086 | |
Collectively evaluated for impairment | 1,467,987 | 1,342,253 | |
Total loans, excluding acquired | 1,481,407 | 1,480,527 | 1,353,339 |
Total commercial | Business | |||
Components of loans | |||
Individually evaluated for impairment | 11,085 | 7,328 | |
Collectively evaluated for impairment | 774,222 | 735,644 | |
Total loans, excluding acquired | 785,307 | 818,986 | 742,972 |
Total commercial | Real estate | |||
Components of loans | |||
Individually evaluated for impairment | 1,196 | 1,723 | |
Collectively evaluated for impairment | 598,066 | 489,928 | |
Total loans, excluding acquired | 599,262 | 561,718 | 491,651 |
Total commercial | Acquisition, development and construction | |||
Components of loans | |||
Individually evaluated for impairment | 1,139 | 2,035 | |
Collectively evaluated for impairment | 95,699 | 116,681 | |
Total loans, excluding acquired | 96,838 | 99,823 | 118,716 |
Residential real estate | |||
Components of loans | |||
Individually evaluated for impairment | 8,364 | 1,927 | |
Collectively evaluated for impairment | 305,199 | 273,783 | |
Total loans, excluding acquired | 313,563 | 306,140 | 275,710 |
Home Equity | |||
Components of loans | |||
Individually evaluated for impairment | 230 | 95 | |
Collectively evaluated for impairment | 21,194 | 28,748 | |
Total loans, excluding acquired | 21,424 | 22,186 | 28,843 |
Consumer | |||
Components of loans | |||
Individually evaluated for impairment | 512 | 3 | |
Collectively evaluated for impairment | 65,119 | 3,146 | |
Total loans, excluding acquired | $ 65,631 | $ 43,919 | $ 3,149 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)borrowerloan | Dec. 31, 2021USD ($) | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Specific reserve allocations for TDR's | $ 0.4 | $ 0.5 |
Troubled debt restructuring loans | $ 12.5 | 12.6 |
Number of loans to defaulted borrowers | loan | 0 | |
Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 2.3 | |
Number of loans to defaulted borrowers | loan | 3 | |
Number of borrower defaulted | borrower | 2 | |
Commercial Borrower Two | Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 2 | |
Commercial Borrower One | Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 0.3 | |
Accruing | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Troubled debt restructuring loans | $ 4.5 | $ 4.5 |
Accruing | Portfolio Risk | Troubled Debt Restructured Loans | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Percentage of total impaired loans | 20.00% | 21.00% |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 15,947 | $ 18,675 |
Carrying amount, net of allowance | 15,333 | 18,012 |
Total commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 11,767 | 13,904 |
Total commercial | Business | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 2,381 | 2,629 |
Total commercial | Real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 9,140 | 11,018 |
Total commercial | Acquisition, development and construction | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 246 | 257 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 3,782 | 4,358 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 398 | $ 413 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Accretiable Yield (Details) - Purchased credit impaired loans - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 6,505 | $ 6,467 |
Accretion of income | (808) | (867) |
Other changes in expected cash flows | 556 | 905 |
Ending balance | $ 6,253 | $ 6,505 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - PPP Loans and CARES Act Deferrals (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 1,897,972 | $ 1,871,447 |
SBA PPP | ||
Financing Receivable, Impaired [Line Items] | ||
Original balance of loans | 13,500 | |
Total loans | $ 28,200 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Premises and equipment | ||
Gross premises and equipment | $ 42,528 | $ 41,301 |
Accumulated depreciation | (17,171) | (16,249) |
Premises and equipment, net | 25,357 | 25,052 |
Land | ||
Premises and equipment | ||
Gross premises and equipment | 3,465 | 3,465 |
Buildings and improvements | ||
Premises and equipment | ||
Gross premises and equipment | 13,393 | 13,393 |
Furniture, fixtures and equipment | ||
Premises and equipment | ||
Gross premises and equipment | 17,409 | 16,841 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 4,786 | 4,176 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 580 | 531 |
Leasehold improvements | ||
Premises and equipment | ||
Gross premises and equipment | $ 2,895 | $ 2,895 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Lease liability | $ 18,200 | $ 18,600 |
Right-of-use asset | $ 17,100 | $ 17,500 |
Operating lease, weighted average remaining lease term (in years) | 11 years 9 months 18 days | 12 years |
Operating lease, weighted average discount rate, (as a percentage) | 2.80% | 2.80% |
Finance lease, weighted average remaining lease term (in years) | 1 year 9 months 18 days | 1 year 9 months 18 days |
Finance lease, weighted average discount rate, (as a percentage) | 1.80% | 2.00% |
Operating lease liability | $ 18,202 | $ 18,500 |
Finance lease liability | $ 41 | 100 |
Operating lease, right of use asset | $ 17,500 |
Premises and Equipment - Lease
Premises and Equipment - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 508 | $ 477 |
Short-term lease cost | 6 | 1 |
Variable lease cost | 10 | 10 |
Amortization of right-of-use assets, finance leases | 14 | 14 |
Interest on lease liabilities, finance leases | 0 | 1 |
Total lease cost | $ 538 | $ 503 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Lease Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 1,460 | |
2024 | 1,897 | |
2025 | 1,827 | |
2026 | 1,826 | |
2027 | 1,840 | |
2028 and thereafter | 12,984 | |
Total future minimum lease payments | 21,834 | |
Less: Amounts representing interest | (3,632) | |
Present value of net future minimum lease payments | 18,202 | $ 18,500 |
Finance Leases | ||
2023 | 27 | |
2024 | 5 | |
2025 | 5 | |
2026 | 4 | |
2027 | 0 | |
2028 and thereafter | 0 | |
Total future minimum lease payments | 41 | |
Less: Amounts representing interest | 0 | |
Present value of net future minimum lease payments | $ 41 | $ 100 |
Equity Method Investments (Deta
Equity Method Investments (Details) loan in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | Dec. 31, 2021USD ($) | Apr. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income | $ 2,864 | $ 8,085 | ||
Equity method investment income | 1,138 | 6,469 | ||
Locked mortgage pipeline | 1,100,000 | $ 1,000,000 | ||
Share of net loss from equity method investment | (1,138) | (6,469) | ||
Equity method investment gain | 1,803 | 0 | ||
Intercoastal | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment income | $ 1,300 | 6,500 | ||
Socure Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage in equity security investment | 1.00% | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenues | $ 22,116 | 50,797 | ||
Net income | 3,230 | 15,864 | ||
Gain on sale of loans | $ 15,088 | $ 47,594 | ||
Volume of loans sold | loan | 688,094 | 1,778,090 | ||
Interchecks | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 16.90% | |||
Share of net loss from equity method investment | $ 100 | |||
Equity method investment gain | $ 1,800 | |||
Ayers Socure II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 10.00% |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 1,308,998 | $ 1,120,433 |
Interest-bearing demand | 630,155 | 651,016 |
Savings and money markets | 491,346 | 510,068 |
Time deposits, including CDs and IRAs | 78,580 | 96,088 |
Total deposits | 2,509,079 | 2,377,605 |
Time deposits that meet or exceed the FDIC insurance limit | $ 10,111 | $ 9,573 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Deposits [Abstract] | |
2023 | $ 43,011 |
2024 | 20,114 |
2025 | 10,539 |
2026 | 3,207 |
2027 | 1,709 |
Total | 78,580 |
Overdrawn deposits | $ 2,800 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings, Long-term borrowings and Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Borrowed funds | ||
FHLB maximum borrowing capacity | $ 435,200,000 | |
FHLB, remaining borrowing capacity | 423,900,000 | |
Short-term Borrowings and Repurchase Agreements | ||
Long-term notes from the FHLB | 0 | $ 0 |
Short-term Borrowings from FHLB | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 0 | 0 |
Average balance during the period | 0 | 25,275,000 |
Maximum month-end balance | $ 0 | $ 130,047,000 |
Weighted-average rate during the period | 0.00% | 0.05% |
Weighted-average rate at end of period | 0.00% | 0.00% |
Investment Securities | ||
Short-term Borrowings and Repurchase Agreements | ||
Investment securities held as collateral | $ 12,500,000 | $ 15,800,000 |
Repurchase Agreements | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 12,101,000 | 11,385,000 |
Average balance during the period | 11,823,000 | 10,821,000 |
Maximum month-end balance | $ 12,680,000 | $ 11,398,000 |
Weighted-average rate during the period | 0.05% | 0.12% |
Weighted-average rate at end of period | 0.05% | 0.05% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2007 | |
Subordinated Debt | |||||
Balance at end of period | $ 73,094,000 | $ 73,030,000 | |||
Subordinated Debt | |||||
Subordinated Debt | |||||
Balance at end of period | 73,094,000 | 73,030,000 | |||
Average balance during the period | 73,062,000 | 51,149,000 | |||
Maximum month-end balance | $ 73,094,000 | $ 73,030,000 | |||
Weighted-average rate during the period | 4.12% | 4.28% | |||
Weighted-average rate at end of period | 3.74% | 3.71% | |||
Face amount of debt issued | $ 30,000,000 | $ 40,000,000 | |||
Term of debt instrument | 10 years | 10 years | |||
Interest rate on debt security | 3.25% | 4.25% | |||
Subordinated Debt | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 2.54% | 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 | 3 Months Ended | ||
Mar. 31, 2022USD ($)installment | Dec. 31, 2021USD ($) | 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 | $ 1,300 |
Pension and Supplemental Exec_4
Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Components of net periodic pension cost | ||
Interest cost | $ 85 | $ 78 |
Expected return on plan assets | (167) | (118) |
Amortization of net actuarial loss | 107 | 127 |
Net periodic benefit cost | 25 | 87 |
Contributions paid | 0 | 3,835 |
Service cost | 0 | 0 |
Amortization of prior service cost | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Cash and cash equivalents | $ 353,972 | $ 307,437 |
Certificates of deposit with banks | 2,229 | 2,719 |
Investment securities available-for-sale | 395,301 | 421,466 |
Equity securities | 34,447 | 32,402 |
Bank-owned life insurance | 42,500 | 42,257 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 353,972 | 307,437 |
Certificates of deposit with banks | 2,229 | 2,719 |
Investment securities available-for-sale | 395,301 | 421,466 |
Equity securities | 34,447 | 32,402 |
Loans held-for-sale | 9,161 | |
Loans receivable, net | 1,879,045 | 1,851,572 |
Servicing rights | 2,711 | 2,812 |
Accrued interest receivable | 8,234 | 7,860 |
Bank-owned life insurance | 42,500 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,509,079 | 2,377,605 |
Repurchase agreements | 12,101 | 11,385 |
Accrued interest payable | 1,238 | 690 |
Subordinated debt | 73,094 | 73,030 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 353,972 | 307,437 |
Certificates of deposit with banks | 2,244 | 2,738 |
Investment securities available-for-sale | 395,301 | 421,466 |
Equity securities | 34,447 | 32,402 |
Loans held-for-sale | 9,161 | |
Loans receivable, net | 1,892,687 | 1,865,013 |
Servicing rights | 2,729 | 2,831 |
Accrued interest receivable | 8,234 | 7,860 |
Bank-owned life insurance | 42,500 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,468,181 | 2,338,868 |
Repurchase agreements | 12,101 | 11,385 |
Accrued interest payable | 1,238 | 690 |
Subordinated debt | 73,319 | 74,774 |
Interest rate swap | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 3,492 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 3,492 | 6,702 |
Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 3,492 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 3,492 | 6,702 |
Fair value hedge | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 873 | 1,552 |
Financial Liabilities: | ||
Derivative liability | 148 | 807 |
Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 873 | 1,552 |
Financial Liabilities: | ||
Derivative liability | 148 | 807 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 353,972 | 307,437 |
Certificates of deposit with banks | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Equity securities | 247 | 247 |
Loans held-for-sale | 0 | |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 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 | 2,244 | 2,738 |
Investment securities available-for-sale | 355,633 | 379,703 |
Equity securities | 0 | 0 |
Loans held-for-sale | 9,161 | |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 2,413 | 2,402 |
Bank-owned life insurance | 42,500 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,468,181 | 2,338,868 |
Repurchase agreements | 12,101 | 11,385 |
Accrued interest payable | 1,238 | 690 |
Subordinated debt | 73,319 | 74,774 |
Significant Other Observable Inputs (Level II) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 3,492 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 3,492 | 6,702 |
Significant Other Observable Inputs (Level II) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 873 | 1,552 |
Financial Liabilities: | ||
Derivative liability | 148 | 807 |
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 | 39,668 | 41,763 |
Equity securities | 34,200 | 32,155 |
Loans held-for-sale | 0 | |
Loans receivable, net | 1,892,687 | 1,865,013 |
Servicing rights | 2,729 | 2,831 |
Accrued interest receivable | 5,821 | 5,458 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 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 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 395,301 | $ 421,466 |
Equity securities | 34,447 | 32,402 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 247 | 247 |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 247 | 247 |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 52,451 | 40,437 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 52,451 | 40,437 |
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 | 52,451 | 40,437 |
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 | 68,481 | 76,108 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 68,481 | 76,108 |
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 | 68,481 | 76,108 |
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 | 105,842 | 110,389 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 105,842 | |
United States treasury securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | |
United States treasury securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 105,842 | |
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 | 151,343 | 175,012 |
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 | 111,675 | 133,249 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 39,668 | 41,763 |
Other securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 868 | 878 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 868 | 878 |
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 | 868 | 878 |
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 | 3,492 | 6,702 |
Derivative liability | 3,492 | 6,702 |
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 | 3,492 | 6,702 |
Derivative liability | 3,492 | 6,702 |
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 | 873 | 1,552 |
Derivative liability | 148 | 807 |
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 | 873 | 1,552 |
Derivative liability | 148 | 807 |
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) - Municipal Securities - Total debt securities - Level III - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 41,763 | $ 43,679 |
Realized and unrealized gains (losses) included in earnings | 7 | 19 |
Purchase of securities | 862 | 1,191 |
Maturities/calls | (2,290) | (3,933) |
Unrealized gain included in other comprehensive income (loss) | 1,766 | 1,127 |
Unrealized loss included in other comprehensive income (loss) | (2,440) | (1,811) |
Ending balance | $ 39,668 | $ 40,272 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 21,889 | $ 21,980 |
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 | 21,889 | 21,980 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,106 | 2,330 |
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 | $ 2,106 | $ 2,330 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Non-recurring | Other debt securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 7,500 | |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 32,155 | |
Non-recurring | Impaired loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 21,889 | 21,980 |
Non-recurring | Impaired loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 21,889 | 21,980 |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 2,106 | 2,330 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 2,106 | 2,330 |
Recurring | Municipal Securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 39,668 | $ 41,763 |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.20 | 0.10 |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.62 | 0.20 |
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 | 0.10 |
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 | 0.20 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal Securities | 0.05 | 0.01 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal Securities | 0.15 | 0.20 |
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 |
Cost minus impairment | Non-recurring | Other debt securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities | 0 | |
Cost minus impairment | Non-recurring | Equity securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities | 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator for basic and diluted earnings per share: | ||
Net income | $ 2,864 | $ 8,085 |
Less: Dividends on preferred stock | 0 | 35 |
Net income available to common shareholders | $ 2,864 | $ 8,050 |
Denominator: | ||
Total weighted-average shares outstanding (in shares) | 12,093,179 | 11,530,279 |
Effect of dilutive stock options and restricted stock units (in shares) | 834,632 | 756,452 |
Total diluted weighted-average shares outstanding (in shares) | 12,927,811 | 12,286,731 |
Earnings per share - basic (in dollars per share) | $ 0.24 | $ 0.70 |
Earnings per share - diluted (in dollars per share) | $ 0.22 | $ 0.66 |
Stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded form computation of earnings per share (in shares) | 405,994 | 111,148 |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Comprehensive Income | ||
Gain on sale of available-for-sale securities | $ 650 | $ 1,143 |
Income tax expense | (905) | (2,169) |
Net income before noncontrolling interest | 2,864 | 8,085 |
Salaries and employee benefits | (17,961) | (11,911) |
Interest on investment securities | 648 | 631 |
Amount reclassified from AOCI | ||
Comprehensive Income | ||
Net income before noncontrolling interest | 424 | 576 |
Available-for-sale securities | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Gain on sale of available-for-sale securities | 650 | 1,143 |
Income tax expense | (152) | (268) |
Net income before noncontrolling interest | 498 | 875 |
Defined benefit pension plan items | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Income tax expense | 25 | 30 |
Net income before noncontrolling interest | (82) | (97) |
Salaries and employee benefits | (107) | (127) |
Investment hedge | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Income tax expense | (2) | 62 |
Net income before noncontrolling interest | 8 | (202) |
Interest on investment securities | $ 10 | $ (264) |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | $ 274,328 | |
Other comprehensive income (loss) before reclassification | (13,132) | $ (3,542) |
Amounts reclassified from accumulated other comprehensive income (loss) | (424) | (576) |
Total other comprehensive loss, net of tax | (13,556) | (4,118) |
Ending balance | 263,080 | |
Unrealized gains (losses) on available for-sale securities | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | 147 | 7,586 |
Other comprehensive income (loss) before reclassification | (13,415) | (4,848) |
Amounts reclassified from accumulated other comprehensive income (loss) | (498) | (875) |
Total other comprehensive loss, net of tax | (13,913) | (5,723) |
Ending balance | (13,766) | 1,863 |
Defined benefit pension plan items | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (4,069) | (5,047) |
Other comprehensive income (loss) before reclassification | 283 | 1,306 |
Amounts reclassified from accumulated other comprehensive income (loss) | 82 | 97 |
Total other comprehensive loss, net of tax | 365 | 1,403 |
Ending balance | (3,704) | (3,644) |
Investment hedge | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | 316 | (313) |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (8) | 202 |
Total other comprehensive loss, net of tax | (8) | 202 |
Ending balance | 308 | (111) |
Accumulated other comprehensive income (loss) | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (3,606) | 2,226 |
Ending balance | $ (17,162) | $ (1,892) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 5 | ||
Interest income | $ 23,262 | $ 19,063 | |
Interest expense | 1,414 | 1,558 | |
NET INTEREST INCOME | 21,848 | 17,505 | |
Provision for loan losses | 1,280 | 618 | |
Net interest income after provision for loan losses | 20,568 | 16,887 | |
Noninterest Income: | |||
Total noninterest income | 11,870 | 12,458 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 17,961 | 11,911 | |
Other expenses | 10,901 | 7,207 | |
Total noninterest expense | 28,862 | 19,118 | |
Income before income taxes | 3,576 | 10,227 | |
Income taxes | 905 | 2,169 | |
Net income before noncontrolling interest | 2,671 | 8,058 | |
Net loss attributable to noncontrolling interest | 193 | 27 | |
Net income attributable to parent | 2,864 | 8,085 | |
Preferred stock dividends | 0 | 35 | |
Net income available to common shareholders | 2,864 | 8,050 | |
Capital expenditures | 1,227 | 1,936 | |
Assets | 2,893,464 | $ 2,792,449 | |
Goodwill | 3,988 | 3,988 | |
Operating Segments | CoRe Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 23,171 | 18,959 | |
Interest expense | 659 | 1,092 | |
NET INTEREST INCOME | 22,512 | 17,867 | |
Provision for loan losses | 1,280 | 620 | |
Net interest income after provision for loan losses | 21,232 | 17,247 | |
Noninterest Income: | |||
Total noninterest income | 6,898 | 4,745 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 9,508 | 7,836 | |
Other expenses | 11,048 | 7,440 | |
Total noninterest expense | 20,556 | 15,276 | |
Income before income taxes | 7,574 | 6,716 | |
Income taxes | 1,631 | 1,137 | |
Net income before noncontrolling interest | 5,943 | 5,579 | |
Net loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | 5,579 | ||
Preferred stock dividends | 0 | ||
Net income available to common shareholders | 5,943 | 5,579 | |
Capital expenditures | 250 | 1,936 | |
Assets | 2,908,045 | 2,804,840 | |
Goodwill | 0 | 0 | |
Operating Segments | Mortgage Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 103 | 104 | |
Interest expense | 0 | 0 | |
NET INTEREST INCOME | 103 | 104 | |
Provision for loan losses | 0 | (2) | |
Net interest income after provision for loan losses | 103 | 106 | |
Noninterest Income: | |||
Total noninterest income | 1,223 | 6,407 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 0 | 0 | |
Other expenses | 0 | 63 | |
Total noninterest expense | 0 | 63 | |
Income before income taxes | 1,326 | 6,450 | |
Income taxes | 341 | 1,564 | |
Net income before noncontrolling interest | 985 | 4,886 | |
Net loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | 4,886 | ||
Preferred stock dividends | 0 | ||
Net income available to common shareholders | 985 | 4,886 | |
Capital expenditures | 0 | 0 | |
Assets | 51,632 | 50,202 | |
Goodwill | 0 | 0 | |
Operating Segments | Professional Services | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | |
Interest expense | 7 | 0 | |
NET INTEREST INCOME | (7) | 0 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | (7) | 0 | |
Noninterest Income: | |||
Total noninterest income | 5,557 | 1,692 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 3,798 | 894 | |
Other expenses | 1,155 | 518 | |
Total noninterest expense | 4,953 | 1,412 | |
Income before income taxes | 597 | 280 | |
Income taxes | 164 | 59 | |
Net income before noncontrolling interest | 433 | 221 | |
Net loss attributable to noncontrolling interest | 95 | 0 | |
Net income attributable to parent | 221 | ||
Preferred stock dividends | 0 | ||
Net income available to common shareholders | 528 | 221 | |
Capital expenditures | 21 | 0 | |
Assets | 14,677 | 0 | |
Goodwill | 3,988 | 3,988 | |
Operating Segments | Edge Ventures | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | |
Interest expense | 0 | 0 | |
NET INTEREST INCOME | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | |
Noninterest Income: | |||
Total noninterest income | 75 | 0 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 599 | 112 | |
Other expenses | 1,047 | 71 | |
Total noninterest expense | 1,646 | 183 | |
Income before income taxes | (1,571) | (183) | |
Income taxes | (362) | (47) | |
Net income before noncontrolling interest | (1,209) | (136) | |
Net loss attributable to noncontrolling interest | 98 | 27 | |
Net income attributable to parent | (109) | ||
Preferred stock dividends | 0 | ||
Net income available to common shareholders | (1,111) | (109) | |
Capital expenditures | 618 | 0 | |
Assets | 18,947 | 0 | |
Goodwill | 0 | 0 | |
Operating Segments | Financial Holding Company | |||
Segment Reporting Information [Line Items] | |||
Interest income | (7) | 1 | |
Interest expense | 753 | 466 | |
NET INTEREST INCOME | (760) | (465) | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | (760) | (465) | |
Noninterest Income: | |||
Total noninterest income | 2,671 | 1,581 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 4,056 | 3,069 | |
Other expenses | 2,205 | 1,083 | |
Total noninterest expense | 6,261 | 4,152 | |
Income before income taxes | (4,350) | (3,036) | |
Income taxes | (869) | (544) | |
Net income before noncontrolling interest | (3,481) | (2,492) | |
Net loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | (2,492) | ||
Preferred stock dividends | 35 | ||
Net income available to common shareholders | (3,481) | (2,527) | |
Capital expenditures | 338 | 0 | |
Assets | 349,824 | 363,971 | |
Goodwill | 0 | 0 | |
Intercompany Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | (5) | (1) | |
Interest expense | (5) | 0 | |
NET INTEREST INCOME | 0 | (1) | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 0 | (1) | |
Noninterest Income: | |||
Total noninterest income | (4,554) | (1,967) | |
Noninterest Expenses: | |||
Salaries and employee benefits | 0 | 0 | |
Other expenses | (4,554) | (1,968) | |
Total noninterest expense | (4,554) | (1,968) | |
Income before income taxes | 0 | 0 | |
Income taxes | 0 | 0 | |
Net income before noncontrolling interest | 0 | 0 | |
Net loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | 0 | ||
Preferred stock dividends | 0 | ||
Net income available to common shareholders | 0 | 0 | |
Capital expenditures | 0 | $ 0 | |
Assets | (449,661) | (449,688) | |
Goodwill | $ 0 | $ 0 |
Pending Acquisition - Narrative
Pending Acquisition - Narrative (Details) - Warp Speed Holdings LLC - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2022 | Mar. 13, 2022 | |
Business Acquisition [Line Items] | ||
Ownership percentage | 37.50% | |
Forecast | Subsequent Event | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 38.4 | |
Consideration issued as equity | $ 9.6 |