Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Per Share | ||
Trading Symbol | MVBF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 337.7 | ||
Entity Common Stock, Shares Outstanding | 12,621,580 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement relating to the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001277902 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | FORVIS, LLP |
Auditor Firm ID | 686 |
Auditor Location | Tampa, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 5,290 | $ 8,878 |
Interest-bearing balances with banks | 34,990 | 298,559 |
Total cash and cash equivalents | 40,280 | 307,437 |
Certificates of deposit with banks | 0 | 2,719 |
Investment securities available-for-sale | 379,814 | 421,466 |
Equity securities | 38,744 | 32,402 |
Loans held-for-sale | 23,126 | 0 |
Loans receivable | 2,372,645 | 1,869,838 |
Allowance for loan losses | (23,837) | (18,266) |
Loans receivable, net | 2,348,808 | 1,851,572 |
Premises and equipment, net | 23,653 | 25,052 |
Bank-owned life insurance | 43,239 | 42,257 |
Equity method investments | 76,223 | 40,013 |
Accrued interest receivable and other assets | 90,975 | 65,543 |
Goodwill | 3,988 | 3,988 |
TOTAL ASSETS | 3,068,850 | 2,792,449 |
Deposits: | ||
Noninterest-bearing | 1,231,544 | 1,120,433 |
Interest-bearing | 1,338,938 | 1,257,172 |
Total deposits | 2,570,482 | 2,377,605 |
Accrued interest payable and other liabilities | 41,556 | 55,126 |
Repurchase agreements | 10,037 | 11,385 |
FHLB and other borrowings | 102,333 | 0 |
Subordinated debt | 73,286 | 73,030 |
Senior term loan | 9,765 | 0 |
Total liabilities | 2,807,459 | 2,517,146 |
STOCKHOLDERS’ EQUITY | ||
Common stock - par value $1; 20,000,000 shares authorized; 13,466,281 and 12,618,265 shares issued and outstanding, respectively, as of December 31, 2022 and 12,934,966 and 12,086,950 shares issued and outstanding, respectively, as of December 31, 2021 | 13,466 | 12,935 |
Additional paid-in capital | 157,152 | 143,521 |
Retained earnings | 144,911 | 138,219 |
Accumulated other comprehensive loss | (37,704) | (3,606) |
Treasury stock - 848,016 shares as of December 31, 2022 and December 31, 2021, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 261,084 | 274,328 |
Noncontrolling interest | 307 | 975 |
Total stockholders' equity | 261,391 | 275,303 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,068,850 | $ 2,792,449 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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) | 13,466,281 | 12,934,966 |
Common stock, shares outstanding (in shares) | 12,618,265 | 12,086,950 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 116,583 | $ 75,282 | $ 72,999 |
Interest on deposits with banks | 1,637 | 506 | 437 |
Interest on investment securities | 3,496 | 2,405 | 2,448 |
Interest on tax-exempt loans and securities | 4,241 | 5,236 | 4,569 |
Total interest income | 125,957 | 83,429 | 80,453 |
INTEREST EXPENSE | |||
Interest on deposits | 10,476 | 3,977 | 10,294 |
Interest on short-term borrowings | 443 | 105 | 1,072 |
Interest on subordinated debt | 3,072 | 2,188 | 261 |
Interest on senior term loan | 163 | 0 | 0 |
Total interest expense | 14,154 | 6,270 | 11,627 |
NET INTEREST INCOME | 111,803 | 77,159 | 68,826 |
Provision (release of allowance) for loan losses | 14,194 | (6,275) | 16,579 |
Net interest income after provision (release of allowance) for loan losses | 97,609 | 83,434 | 52,247 |
NONINTEREST INCOME | |||
Payment card and service charge income | 11,648 | 7,524 | 2,821 |
Mortgage fee income | 0 | 0 | 33,427 |
Insurance and investment services income | 849 | 1,003 | 872 |
Gain on sale of available-for-sale securities, net | 650 | 3,875 | 914 |
Gain (loss) on sale of equity securities, net | (56) | 5 | 3,501 |
Gain on derivatives, net | 0 | 0 | 2,341 |
Gain on sale of loans, net | 1,655 | 4,178 | 332 |
Holding gain (loss) on equity securities | (1,543) | 3,776 | 374 |
Compliance and consulting income | 15,504 | 9,625 | 4,436 |
Equity method investments income (loss) | (713) | 17,428 | 24,174 |
Equity method investment gain | 1,874 | 0 | 0 |
Gains on acquisition and divestiture activity | 0 | 10,783 | 17,640 |
Gain on sale of assets | 4,978 | 0 | 14 |
Other operating income | 3,448 | 4,399 | 991 |
Total noninterest income | 38,294 | 62,596 | 91,837 |
NONINTEREST EXPENSES | |||
Salaries and employee benefits | 72,162 | 60,210 | 61,629 |
Occupancy expense | 4,051 | 4,347 | 4,599 |
Equipment depreciation and maintenance | 5,557 | 4,642 | 3,672 |
Data processing and communications | 4,198 | 4,431 | 5,375 |
Mortgage processing | 0 | 0 | 1,744 |
Professional fees | 10,871 | 10,770 | 8,453 |
Insurance, tax and assessment expense | 2,610 | 2,032 | 2,090 |
Travel, entertainment, dues and subscriptions | 7,998 | 5,092 | 3,390 |
Other operating expenses | 9,941 | 5,928 | 6,189 |
Total noninterest expense | 117,388 | 97,452 | 97,141 |
Income before income taxes | 18,515 | 48,578 | 46,943 |
Income tax expense | 4,128 | 9,882 | 9,532 |
Net income (loss) | 14,387 | 38,696 | 37,411 |
Net loss attributable to noncontrolling interest | (660) | (425) | 0 |
Net income attributable to parent | 15,047 | 39,121 | 37,411 |
Preferred dividends | 0 | 35 | 461 |
Net income available to common shareholders | $ 15,047 | $ 39,086 | $ 36,950 |
Earnings per common share - basic (in dollars per share) | $ 1.23 | $ 3.32 | $ 3.13 |
Earnings per common share - diluted (in dollars per share) | $ 1.17 | $ 3.10 | $ 3.06 |
Weighted average shares outstanding - basic (in shares) | 12,279,462 | 11,778,557 | 11,821,574 |
Weighted average shares outstanding - diluted (in shares) | 12,870,734 | 12,613,620 | 12,088,106 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income before noncontrolling interest | $ 14,387 | $ 38,696 | $ 37,411 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on securities available-for-sale | (45,730) | (5,839) | 6,979 |
Reclassification adjustment for gain recognized in income | (650) | (3,875) | (914) |
Change in defined benefit pension plan | 815 | 770 | (1,403) |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 429 | 507 | 420 |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | (83) | 862 | (473) |
Other comprehensive income (loss), before tax | (45,219) | (7,575) | 4,609 |
Income taxes related to items of other comprehensive income (loss): | |||
Unrealized holding gains (losses) on securities available-for-sale | 11,252 | 1,367 | (1,635) |
Reclassification adjustment for gain recognized in income | 152 | 908 | 214 |
Change in defined benefit pension plan | (201) | (180) | 329 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | (103) | (119) | (98) |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | 21 | (233) | 128 |
Income taxes related to items of other comprehensive income (loss): | 11,121 | 1,743 | (1,062) |
Total other comprehensive income (loss), net of tax | (34,098) | (5,832) | 3,547 |
Comprehensive loss attributable to noncontrolling interest | 660 | 425 | 0 |
Comprehensive income (loss) | $ (19,051) | $ 33,289 | $ 40,958 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders' equity attributable to parent | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2019 | 733 | ||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 11,995,366 | ||||||||
Beginning balance (in shares) at Dec. 31, 2019 | (51,077) | ||||||||
Beginning balance at Dec. 31, 2019 | $ 211,936 | $ 7,334 | $ 11,995 | $ 122,516 | $ 72,496 | $ (1,321) | $ (1,084) | $ 211,936 | $ 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 37,411 | 37,411 | 37,411 | ||||||
Other comprehensive income (loss) | 3,547 | 3,547 | 3,547 | ||||||
Cash dividends paid | (4,275) | (4,275) | (4,275) | ||||||
Dividends on preferred stock | (461) | (461) | (461) | ||||||
Stock-based compensation | 2,353 | 2,353 | 2,353 | ||||||
Common stock options exercised (in shares) | 305,697 | ||||||||
Common stock options exercised | 4,459 | $ 306 | 4,153 | 4,459 | |||||
Restricted stock units issued (in shares) | 53,981 | 525 | |||||||
Restricted stock units issued | (77) | $ 54 | (124) | $ (7) | (77) | ||||
Common stock repurchased (in shares) | 796,414 | ||||||||
Common stock repurchased | (15,650) | $ (15,650) | (15,650) | ||||||
Common stock issued related to acquisitions (in shares) | 19,278 | ||||||||
Common stock issued related to acquisitions | 240 | $ 19 | 221 | 240 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 733 | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | 12,374,322 | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | (848,016) | ||||||||
Ending 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) | 38,696 | 39,121 | 39,121 | (425) | |||||
Other comprehensive income (loss) | (5,832) | (5,832) | (5,832) | ||||||
Cash dividends paid | (6,038) | (6,038) | (6,038) | ||||||
Dividends on preferred stock | (35) | (35) | (35) | ||||||
Stock-based compensation | 2,634 | 2,634 | 2,634 | ||||||
Stock-based compensation related to equity method investment | 574 | 574 | 574 | ||||||
Common stock options exercised (in shares) | 316,682 | ||||||||
Common stock options exercised | 4,930 | $ 317 | 4,613 | 4,930 | |||||
Restricted stock units issued (in shares) | 77,050 | ||||||||
Restricted stock units issued | 0 | $ 77 | (77) | 0 | |||||
Minimum tax withholding on restricted stock units issued (in shares) | (6,579) | ||||||||
Minimum tax withholding on restricted stock units issued | (249) | $ (7) | (242) | (249) | |||||
Noncontrolling interests due to acquisition | 900 | 900 | |||||||
Common stock issued related to contingent consideration (in shares) | 47,966 | ||||||||
Common stock issued related to contingent consideration | 2,000 | $ 48 | 1,952 | 2,000 | |||||
Common stock issued related to acquisitions (in shares) | 17,597 | ||||||||
Common stock issued related to acquisitions | 600 | $ 18 | 582 | 600 | |||||
Common stock issued related to investment (in shares) | 107,928 | ||||||||
Common stock issued related to investment | 4,474 | $ 108 | 4,366 | 4,474 | |||||
MVB Technology membership units issued | 500 | 500 | |||||||
Redemption of preferred stock (in shares) | (733) | ||||||||
Redemption of preferred stock | $ (7,334) | $ (7,334) | (7,334) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 12,086,950 | 12,934,966 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | (848,016) | ||||||||
Ending 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) | 14,387 | 15,047 | 15,047 | (660) | |||||
Other comprehensive income (loss) | (34,098) | (34,098) | (34,098) | ||||||
Cash dividends paid | (8,355) | (8,355) | (8,355) | ||||||
Stock-based compensation | 2,800 | 2,800 | 2,800 | ||||||
Stock-based compensation related to equity method investment | $ 417 | 417 | 417 | ||||||
Common stock options exercised (in shares) | 160,527 | 160,527 | |||||||
Common stock options exercised | $ 2,069 | $ 161 | 1,908 | 2,069 | |||||
Restricted stock units issued (in shares) | 75,354 | ||||||||
Restricted stock units issued | 0 | $ 75 | (75) | 0 | |||||
Minimum tax withholding on restricted stock units issued (in shares) | (17,596) | ||||||||
Minimum tax withholding on restricted stock units issued | (670) | $ (18) | (652) | (670) | |||||
Common stock issued related to acquisitions (in shares) | 313,030 | ||||||||
Common stock issued related to acquisitions | 9,579 | $ 313 | 9,266 | 9,579 | |||||
Stock purchase from noncontrolling interest | $ (41) | (33) | (33) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 12,618,265 | 13,466,281 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | (848,016) | ||||||||
Ending balance at Dec. 31, 2022 | $ 261,391 | $ 0 | $ 13,466 | $ 157,152 | $ 144,911 | $ (37,704) | $ (16,741) | $ 261,084 | $ 307 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid (in dollars per share) | $ 0.68 | $ 0.51 | $ 0.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income before noncontrolling interest | $ 14,387 | $ 38,696 | $ 37,411 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Net amortization and accretion of investments | 2,596 | 4,054 | 1,892 |
Net amortization of deferred loan costs | 2,526 | 2,969 | 1,692 |
Provision (release of allowance) for loan losses | 14,194 | (6,275) | 16,579 |
Depreciation and amortization | 5,322 | 4,198 | 3,292 |
Stock-based compensation | 2,800 | 2,634 | 2,353 |
Stock-based compensation related to equity method investment | 417 | 574 | 0 |
Loans originated for sale | (101,382) | (30,033) | (1,334,910) |
Proceeds of loans sold | 141,261 | 22,024 | 1,477,063 |
Holding (gain) loss on equity securities | 1,543 | (3,776) | (374) |
Mortgage fee income | 0 | 0 | (33,427) |
Gain on sale of available-for-sale securities, net | (650) | (3,875) | (914) |
Gain (loss) on sale of equity securities, net | (56) | 5 | 3,501 |
Gain on sale of loans held-for-sale | (5,487) | (4,178) | (332) |
Gains on acquisition and divestiture activity | 0 | (10,783) | (17,640) |
Gain on sale of other real estate owned | (47) | (1,396) | 0 |
Income on bank-owned life insurance | (975) | (995) | (888) |
Deferred income taxes | (3,631) | 6,129 | (3,386) |
Equity method investment (income) loss | 713 | (17,428) | (27,574) |
Equity method investment gain | (1,874) | 0 | 0 |
Return on equity method investment | 8,275 | 31,032 | 3,400 |
Other assets | (2,438) | (1,440) | (27,200) |
Other liabilities | (12,426) | 2,689 | 18,699 |
Net cash from operating activities | 65,180 | 34,815 | 112,235 |
INVESTING ACTIVITIES | |||
Purchases of available-for-sale investment securities | (89,600) | (216,621) | (269,790) |
Maturities/paydowns of available-for-sale investment securities | 20,973 | 49,248 | 64,493 |
Sales of available-for-sale investment securities | 60,635 | 146,011 | 54,023 |
Purchases of premises and equipment | (3,041) | (4,865) | (6,615) |
Disposals of premises and equipment | 49 | 300 | 1,687 |
Net increase in loans | (576,303) | (460,672) | (70,186) |
Gain on sale of loans held for investment | 3,832 | 0 | 0 |
Purchases of restricted bank stock | (61,245) | (1,410) | (25,831) |
Redemptions of restricted bank stock | 53,048 | 2,364 | 38,048 |
Proceeds from maturities of certificates of deposit with banks | 2,719 | 9,084 | 1,739 |
Purchases of certificates of deposit with banks | 0 | 0 | (993) |
Proceeds from sale of other real estate owned | 1,482 | 3,818 | 8,309 |
Purchase of bank-owned life insurance | (7) | 0 | (5,000) |
Purchase of equity method investments | (38,400) | (500) | 0 |
Purchase of equity securities | (4,452) | (2,982) | (9,918) |
Sales of equity securities | 1,356 | 543 | 4,622 |
Net cash transferred for banking center sale | 0 | (95,500) | (136,005) |
Cash paid for acquisitions, net of cash acquired | 0 | (772) | 57,306 |
Net cash from investing activities | (628,954) | (571,954) | (294,111) |
FINANCING ACTIVITIES | |||
Net increase in deposits | 192,877 | 558,342 | 574,691 |
Net change in repurchase agreements | (1,348) | 1,119 | 94 |
Net change in FHLB and other borrowings | 102,333 | 0 | (180,283) |
Issuance of subordinated debt | 0 | 30,000 | 40,000 |
Issuance of senior term loan | 10,000 | 0 | 0 |
Principal payments on senior term loan | (125) | 0 | 0 |
Preferred stock redemption | 0 | (7,334) | 0 |
Common stock repurchased | 0 | 0 | (15,746) |
Common stock options exercised | 2,069 | 4,930 | 4,464 |
Withholding cash issued in lieu of restricted stock | (670) | (249) | 0 |
Cash dividends paid on common stock | (8,355) | (6,038) | (4,275) |
Cash dividends paid on preferred stock | 0 | (35) | (461) |
Issuance of subsidiary membership units | 0 | 500 | 0 |
Stock purchase from noncontrolling interest | (41) | 0 | 0 |
Net cash from financing activities | 296,617 | 580,683 | 417,767 |
Net change in cash and cash equivalents | (267,157) | 43,544 | 235,891 |
Cash and cash equivalents, beginning of period | 307,437 | 263,893 | 28,002 |
Cash and cash equivalents, end of period | 40,280 | 307,437 | 263,893 |
Cash payments for: | |||
Interest on deposits, repurchase agreements and borrowings | 12,285 | 6,152 | 12,271 |
Income taxes | 2,285 | 11,960 | 11,966 |
Business combination non-cash disclosures: | |||
Assets acquired in business combination, net of cash acquired | 0 | 739 | 87,722 |
Liabilities assumed in business combination | 0 | 605 | 148,731 |
Supplemental disclosure of cash flow information: | |||
Fair value of noncontrolling interests at acquisition date | 0 | 1,400 | |
Loans transferred to other real estate owned | 299 | 357 | 800 |
Change in unrealized holding gains (losses) on securities available-for-sale | 47,508 | (9,595) | 6,193 |
Issuance of subordinated debt | 0 | 30,000 | 40,000 |
Restricted stock units vested | 75 | 77 | 49 |
Employee stock-based compensation tax withholding obligations | 18 | 7 | 35 |
Creation of servicing assets from loan sales | 1,296 | 0 | 0 |
Loans transferred to loans held-for-sale | 914 | 0 | 0 |
Common stock issued related to acquisitions | 9,579 | 5,074 | 240 |
Subordinated Debt | |||
FINANCING ACTIVITIES | |||
Payment of senior debt issuance costs | 0 | 552 | 717 |
Senior Loans | |||
FINANCING ACTIVITIES | |||
Payment of senior debt issuance costs | $ 123 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies 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"). The Bank’s consolidated subsidiaries include MVB Insurance, LLC, a title insurance company (“MVB Insurance”), ProCo Global, Inc. (“Chartwell,” which does business under the registered trade name Chartwell Compliance), Paladin Fraud, LLC (“Paladin Fraud”) and MVB Edge Ventures, LLC (“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 an equity method investment in Intercoastal Mortgage Company, LLC (“ICM”) and MVB Financial Corp. owns equity method investments in Ayers Socure II, LLC ("Ayers Socure II") and Warp Speed Holdings, LLC ("Warp Speed"). 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. Through our professional services entities, which include Chartwell, Paladin Fraud and Trabian, we provide compliance and consulting solutions to assist Fintech and corporate clients in building digital products and meeting their regulatory compliance and fraud defense needs. We have acquired a number of financial institutions and other financial services businesses. Future acquisitions and divestitures will be consistent with our strategic direction. Our most recent acquisition and divestiture activity includes the following: l In March 2022, the Bank entered into an agreement to acquire a 37.5% interest in Warp Speed, a holding company whose subsidiaries are focused on residential and commercial loan origination and servicing, business and personal insurance brokerage and data analytics. In April 2022, we assumed the Bank's obligations under the Purchase Agreement. Effective October 1, 2022, we completed the purchase with $38.4 million in cash, plus 313,030 shares of newly-issued common stock of MVB, with an aggregate value of $9.6 million, based on the volume-weighted average closing price for shares of MVB common stock for the 20 trading days ending the day prior to closing. l In August 2022, we entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Integrated Holdings, Inc. (“IFH”). The Merger Agreement provided that, upon the terms and conditions therein, IFH would merge with and into MVB (the “Merger”), with MVB continuing as the surviving corporation. Following the Merger, West Town Bank & Trust (“West Town Bank”), a state bank chartered under the laws of Illinois and wholly-owned subsidiary of IFH, would merge with and into the Bank, with the Bank as the surviving bank. In January 2023, the Merger Agreement was approved by the board of directors and shareholders of MVB and IFH. We are awaiting required regulatory approvals in order to execute the Merger. 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 provide a source of stable, low cost deposits and noninterest, fee-based income. We thoroughly analyze each industry in which our customers operate, as well as any new products or services provided, from both an operational and regulatory perspective. Edge Ventures Edge Ventures, a wholly-owned subsidiary of the Bank, was created as a management company to provide oversight, alignment and structure for our Fintech companies and allocate resources to help incubate venture businesses and technologies acquired and developed by us. Subsidiaries of Edge Ventures include MVB Technology, Flexia and Victor, which are developing software to enhance the products and services available to our customers. MVB Technology MVB Technology is a 93.4% owned subsidiary of Edge Ventures. MVB Technology's primary product, GRAND, provides fast, cost effective payments from a modern bank account. Account holders fund their GRAND account using a bank account, card or direct deposit and can then seamlessly transfer funds between their GRAND account and their favorite apps. GRAND helps drive significant savings for online merchants through a streamlined process for transfers of customer funds. Flexia Edge Ventures owns an 80% interest in Flexia. Flexia is a Las Vegas-based Fintech company that licenses technology which allows users to access a reloadable account that combines a debit card account and casino gaming accounts into one card and to utilize them for non-cash transactions at participating casinos. Flexia's technology license provides Flexia with exclusive use of the software in the United States and Canada. Victor Victor is a wholly-owned subsidiary of Edge Ventures. Victor was formed to develop technology to make it faster and easier to launch and scale a broad spectrum of Fintech solutions for the gaming, payments, banking-as-a-service and digital asset sectors. Within a matter of weeks, Fintech developers can build solutions to manage and move money with developer-friendly application programming interfaces. Banks can onboard and manage more programs with Victor’s tailored due diligence, risk assessment and oversight workflow tools. Recognizing the complexity of the Fintech ecosystem, Victor also supports seamless integration with a proven network of value-added technology and service providers. Professional Services Chartwell Chartwell is a wholly-owned subsidiary of the Bank. Chartwell provides integrated regulatory compliance, state licensing, financial crimes prevention and enterprise risk management services that include consulting, outsourcing, testing and training solutions. Chartwell has expanded its services to both Fintech clients and banks, in coordination with the Bank’s current compliance officers, to help create and implement strategy and provide expert compliance resources to aid the Bank in carrying out stringent and faster new client due diligence. Paladin Fraud Paladin Fraud is a wholly-owned subsidiary of the Bank. Paladin Fraud provides an extensive and customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies and other vendors to help clients and partners defend against threats. Trabian The Bank owns an 80.8% interest in Trabian. Trabian builds digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks and Fintech companies. Consistent with the Bank's mission to pursue technology to accelerate community finance, Trabian has created technology platforms that have been instrumental to the success of many of today’s leading Fintech companies. COVID-19 Pandemic Since 2020, economies throughout the world have been severely disrupted as a result of the COVID-19 pandemic and its subsequent variants. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business and our clients, providers and third parties. The extent of such impact depends on future developments, including resurgences, new variants or future pandemics, which are highly uncertain and cannot be predicted. We continue to actively monitor and respond to any ongoing effects of the COVID-19 pandemic. 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”) as presented through the FASB's Accounting Standards Codification ("ASC") the and with rules and interpretive guidance 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. 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 controlling interests in Flexia, Trabian and MVB Technology. We own an 80.0% interest in Flexia, an 80.8% interest in 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 interests of these entities 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 December 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. Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short-term borrowing transactions. Investment Securities Investment securities at the time of purchase are classified as one of the following: Available-for-Sale Securities - Includes debt that will be held for indefinite periods of time. These securities may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and yield of alternative investments. Such securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated income tax effect. The income tax effect is released when the securities are sold. Equity Securities - Includes equity securities that are adjusted to fair value on a monthly basis, with the change in value recorded directly on the income statement. We have elected to measure the equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for underlying transactions for identical or similar investments of new issues. The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Securities are periodically reviewed for other-than-temporary impairment. For debt securities, management considers whether the present value of future cash flows expected to be collected are less than the security’s amortized cost basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and our intent to sell the security or whether it is more likely than not that we would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, if we do not intend to sell the security, and it is more-likely-than-not that we will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. A decline in value that is considered to be other-than-temporary is recorded as a loss within noninterest income in the consolidated statement of income. The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of December 31, 2022 and 2021, the Bank holds $10.0 million and $1.8 million of stock, respectively, which is included in accrued interest receivable and other assets. The stock is bought from and sold to the FHLB based upon its $100 per share par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated by management for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (i) a significant decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (iii) the impact of legislative and regulatory changes on the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB’s regulatory capital ratios have improved in the most recent quarters, no issues of liquidity are evident, new shares of FHLB stock continue to trade at the $100 per share par value and the FHLB has repurchased shares of excess capital stock from its members during 2022 and 2021. Loans and Allowance for Loan Losses Loans are stated at the amount of unpaid principal reduced by an allowance for loan losses. Loans are considered non-accrual when scheduled principal or interest payments are 90 days past due. Interest income on loans is recognized on an accrual basis. The allowance for loan losses is maintained at a level deemed adequate to absorb probable losses inherent in the loan portfolio. We consistently apply a quarterly loan review process to continually evaluate loans for changes in credit risk. This process serves as the primary means by which we evaluate the adequacy of the allowance for loan losses, and is based upon periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are impaired. The general component covers all loans that are not impaired, and is based upon historical loss experience adjusted for qualitative factors. We allocate the allowance based on the factors described below, which conform to our loan classification policy. In reviewing risk within the loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial and commercial real estate secured loans; (iii) home equity loans; and (iv) consumer and other loans. Factors considered in this process include general loan terms, collateral and availability of historical data to support the analysis. Historical loss percentages for each loan category are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentages to get the adjusted factor to be applied to non-classified loans on a weighted basis, by risk grade. The following qualitative factors are analyzed: l Lending policies and procedures l Nature and volume of the portfolio l Experience and ability of lending management and staff l Volume and severity of problem credits l Quality of the loan review system l Conclusions of loan reviews, audits and exams l National, state, regional and local economic trends and business conditions l General economic conditions l Unemployment rates l Inflation / Consumer Price Index l Value of underlying collateral l Existence and effect of any credit concentrations l Consumer sentiment l Other external factors We analyze our loan portfolio each quarter to determine the appropriateness of our allowance for loan losses. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Special Assets Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or SARC. Loans are considered to be impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. We also separately evaluate individual consumer loans for impairment. Loans are identified individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow evaluation of the significance of the payment delays and the circumstances surrounding the loan and the borrower. Once the determination has been made that a loan is impaired, the amount of the impairment is measured using one of three valuation methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. We defer loan origination and commitment fees and direct loan origination costs and the net amount is amortized as an adjustment of the related loan’s yield. Troubled Debt Restructurings A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The determination of whether a concession has been granted includes an evaluation of the debtor’s ability to access funds at a market rate for debt with similar risk characteristics and among other things, the significance of the modification relative to unpaid principal or collateral value of the debt and/or the significance of a delay in the timing of payments relative to the frequency of payments, original maturity date or the expected duration of the loan. The most common concessions granted generally include one or more modifications to the terms of the debt such as a reduction in the interest rate for the remaining life of the debt, an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or reduction of the unpaid principal or interest. All TDRs are considered impaired loans. Premises and Equipment Premises and equipment are carried at cost, less accumulated depreciation, while land is carried at cost. Depreciation expense is computed by the straight-line-method based on the estimated useful lives of assets, which range from seven three Software Development Software that we develop for internal use may be capitalized when costs are incurred after the preliminary project stage has ended and the application development stage begins. The application development stage includes designing, coding, installing and testing the software. Once the software has been implemented, costs for training and maintenance are expensed as incurred. Capitalized internal use software development costs are included in premises and equipment in the accompanying consolidated balance sheets. Bank-Owned Life Insurance Bank-owned life insurance represents life insurance on the lives of certain of our employees who have provided positive consent allowing us to be the beneficiary of such policies. These policies are recorded at their cash surrender value or the amount that can be realized upon surrender of the policy. Income from these policies is not subject to income taxes and is recorded as noninterest income. Equity Method Investments Investments in companies in which we have significant influence over the operating and financing decisions are accounted for using the equity method of accounting. Determining if we have significant influence requires judgement based on the facts and circumstances of each investment including level of ownership, legal structure and other qualitative factors which impact our ability to influence the investee's operations, and we review the facts and circumstances each reporting period to determine if we still have significant influence. Equity method investments are recorded initially at cost including costs to acquire the investment. These investments are included in the equity method investments line item on the consolidated balance sheets. We recognize our proportionate share of the investee's profits and losses in the equity method investments income line item. At the time of investment, we may make a one-time election to record our proportionate share of earnings of the investee on a lag of no more than three months. This election may be made on an investment by investment basis. We review equity method investments for impairment if there are events or changes in circumstances which indicate the carrying amount of the investment might not be recoverable. Intangible Assets and Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the related reporting unit level. The goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired; however, if the carrying value of the reporting unit exceeds its fair value, an impairment charge must be recorded. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit. An impairment loss establishes a new basis in the goodwill and subsequent reversals of goodwill impairment losses are not permitted under applicable accounting guidance. For intangible assets subject to amortization, the recoverability test is performed when a triggering event occurs and an impairment loss is recognized if the carrying value of the intangible asset exceeds fair value and is not recoverable. The carrying value of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets deemed to have indefinite useful lives are not subject to amortization. An impairment loss is recognized if the carrying value of the intangible asset with an indefinite life exceeds its fair value. Derivative Instruments Interest Rate Swaps We entered into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking clients. We mitigate this risk by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value on our consolidated balance sheet. Fair value changes are recorded in noninterest income in our consolidated net income statement. At December 31, 2022 and 2021, the fair value of interest rate swap agreements was $8.4 million and $6.7 million, respectively. Fair Value Hedge We entered into an interest rate swap designated as a fair value hedge to mitigate the effect of changing interest rates on the fair values of certain designated fixed-rate loans and available for sale securities. This involves the receipt of variable amounts from a counterparty in exchange for us making fixed payments over the life of the agreements without the exchange of the underlying notional amount. The gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. We entered into a pay-fixed/receive-variable interest rate swap in January 2019 with a notional amount of $10.9 million and $26.4 million at December 31, 2022 and 2021, respectively, which was designated as a fair value hedge associated with our fixed-rate loan program and certain available for sale securities. At December 31, 2022 and 2021, the fair value of interest rate swap hedge was $0.6 million and $0.7 million, respectively. Embedded Derivatives We enter into various contracts through the normal course of business and occasionally a contract may include terms and conditions that create an embedded derivative. An embedded derivative may occur even though the purpose of the contract is not intended to be a derivative contract. Components of a contract should be assessed to determine if they meet the definition of a derivative. If it does, we must then assess whether the embedded derivative is clearly and closely related to its host instrument. If the derivative is not clearly and closely related to the host contract, the embedded derivative must be separated from the host instrument and accounted for as a separate derivative. Servicing Assets Servicing assets are recorded when the Bank sells loans and retains the servicing on those loans. On a monthly basis, we track the amount of loans that are sold with servicing retained. We determine the servicing rights value, which is then recorded as an asset and amortized over the period of estimated net servicing revenues. The servicing assets are evaluated for impairment quarterly. Servicing loans for others generally consists of collecting payments from borrowers, maintaining escrow accounts, remitting payments to third party investors and, when necessary, foreclosure processing. Serviced loans are not included in the consolidated balance sheets. At December 31, 2022 and 2021, the value of servicing assets was $1.6 million and $2.8 million, respectively, and is included in accrued interest and other assets in the consolidated balance sheets. We have the ability to sell the guaranteed portion of loans originated through the SBA's 7(a) program. All SBA loan sales are executed on a servicing retained basis. We are required to retain a minimum of 10% of the principal balance in accordance with SBA regulations. Any gain on sale recognized as income is the sum of the premium on the guaranteed portion of the loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan that is retained. The remaining unguaranteed portion of the loan is presented net of the discount, which is recognized as interest income over the underlying loan's remaining term, using the effective interest method. Foreclosed Assets Held for Resale Foreclosed assets held for resale acquired in satisfaction of mortgage obligations and in |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2 – Investment Securities Amortized cost and fair values of investment securities available-for-sale at December 31, 2022 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 51,436 $ 15 $ (6,637) $ 44,814 United States sponsored mortgage-backed securities 68,267 — (11,696) 56,571 United States treasury securities 130,689 48 (9,828) 120,909 Municipal securities 157,842 2,412 (21,618) 138,636 Corporate debt securities 10,570 10 (20) 10,560 Other debt securities 7,500 — — 7,500 Total debt securities 426,304 2,485 (49,799) 378,990 Other securities 824 — — 824 Total investment securities available-for-sale $ 427,128 $ 2,485 $ (49,799) $ 379,814 Amortized cost and fair values of investment securities available-for-sale at December 31, 2021 are summarized as follows: (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 summarizes amortized cost and fair values of debt securities by maturity: December 31, 2022 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 5,034 $ 5,033 After one year, but within five years 140,570 130,614 After five years, but within ten years 41,366 37,368 After ten years 239,334 205,975 Total $ 426,304 $ 378,990 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may repay sooner than scheduled. Investment securities with a carrying value of $91.3 million and $244.6 million at December 31, 2022 and 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 December 31, 2022, the details of which are included in the following table. Although these securities, if sold at December 31, 2022 would result in a pretax loss of $49.8 million, we have no intent to sell the applicable securities at such fair values, and maintain that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. As of December 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 temporary decline in fair value. The following table discloses the length of time that investments have remained in an unrealized loss position at December 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 (32) $ 21,287 $ (1,937) $ 19,423 $ (4,700) United States sponsored mortgage-backed securities (51) 6,953 (852) 49,618 (10,844) United States treasury securities (29) 11,936 (130) 102,092 (9,698) Municipal securities (173) 65,930 (7,507) 41,184 (14,111) Corporate debt securities (3) 2,380 (20) — — $ 108,486 $ (10,446) $ 212,317 $ (39,353) The following table discloses the length of time that investments have remained in an unrealized loss position at 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) Corporate debt securities (9) — — — — $ 203,065 $ (3,437) $ 36,616 $ (1,202) The following table summarizes the investment sales and related gains and losses in 2022, 2021 and 2020: (Dollars in thousands) 2022 2021 2020 Proceeds from sales of available-for-sale securities $ 60,635 $ 146,011 $ 54,023 Gains, gross 717 3,944 948 Losses, gross (67) (69) (34) Proceeds from sales of equity securities $ 1,356 $ 543 $ 4,622 Gains, gross 158 5 3,501 Losses, gross (214) — — Unrealized holding gains (losses) on equity securities $ (1,543) $ 3,776 $ 374 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses The components of loans in the Consolidated Balance Sheet at December 31, were as follows: (Dollars in thousands) 2022 2021 Commercial: Business $ 851,072 $ 818,986 Real estate 632,839 561,718 Acquisition, development and construction 126,999 99,823 Total commercial $ 1,610,910 $ 1,480,527 Residential real estate 606,970 306,140 Home equity lines of credit 18,734 22,186 Consumer 131,566 43,919 Total loans, excluding PCI 2,368,180 1,852,772 Purchased credit impaired loans: Commercial: Business — 2,629 Real estate — 11,018 Acquisition, development and construction — 257 Total commercial — 13,904 Residential real estate 2,482 4,358 Consumer — 413 Total purchased credit impaired loans $ 2,482 $ 18,675 Total loans 2,370,662 1,871,447 Deferred loan origination costs and (fees), net 1,983 (1,609) Loans receivable $ 2,372,645 $ 1,869,838 Loans serviced for others are not included in the accompanying consolidated balance sheet. The unpaid principal balances of loans serviced for others requiring recognition of a servicing asset were $164.1 million and $347.5 million at December 31, 2022 and 2021, respectively. The following table summarizes the primary segments of the loan portfolio as of December 31, 2022 and 2021: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total December 31, 2022 Individually evaluated for impairment $ 10,451 $ 1,365 $ — $ 11,816 $ 2,603 $ 90 $ 1,351 $ 15,860 Collectively evaluated for impairment 840,621 631,474 126,999 1,599,094 606,849 18,644 130,215 2,354,802 Total loans $ 851,072 $ 632,839 $ 126,999 $ 1,610,910 $ 609,452 $ 18,734 $ 131,566 $ 2,370,662 December 31, 2021 Individually evaluated for impairment $ 12,954 $ 2,206 $ 1,392 $ 16,552 $ 8,765 $ 217 $ 432 $ 25,966 Collectively evaluated for impairment 808,661 570,530 98,688 1,477,879 301,733 21,969 43,900 1,845,481 Total loans $ 821,615 $ 572,736 $ 100,080 $ 1,494,431 $ 310,498 $ 22,186 $ 44,332 $ 1,871,447 We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments which are levels at which we develop and document our systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are as follows: Commercial business loans – Commercial loans are made to provide funds for equipment and general corporate needs, as well as to finance owner occupied real estate, and to finance future cash flows of Federal Government lease contracts. Repayment of these loans primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. This segment includes both company 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 company 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 loans – Loans originated through the various SBA programs have become an area of lending focus for the Bank. As of December 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. 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 loans –This segment includes the loan originated through the recently created SBA PPP loans. Credit risk is heightened as this SBA program mandates that these loans require no collateral and no guarantors of the loans. However, the loans are backed by a full guaranty of the SBA, so long as the loans were originated in accordance with the program guidelines. Additionally, these loans are eligible for full forgiveness by the SBA so long as the borrowers comply with the program guidelines as it pertains to their eligibility to borrow these funds, as well as their use of the funds. Residential mortgage loans – This residential real estate subsegment contains permanent and construction mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios and collateral values. Credit risk arises from the borrower’s, and where applicable the builder's, continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Home equity lines of credit – This segment includes subsegment for senior lien and subordinate lien lines of credit. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. Consumer loans – This segment of loans includes primarily installment loans and personal lines of credit. Consumer loans include installment loans used by clients to purchase automobiles, boats and recreational vehicles. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. This segment primarily includes loans purchased from a third-party originator that originates loans in order to finance the purchase of personal automotive vehicles for sub-prime borrowers. Credit risk is unique in comparison to the remainder of the Consumer segment as these loans are being 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 segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2022 and 2021: 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 December 31, 2022 Commercial: Business $ 3,436 $ 1,253 $ 7,015 $ 10,451 $ 15,324 Real estate 1,240 222 125 1,365 1,470 Acquisition, development and construction — — — — 1,415 Total commercial 4,676 1,475 7,140 11,816 18,209 Residential — — 2,603 2,603 2,671 Home equity lines of credit — — 90 90 94 Consumer 1,347 268 4 1,351 1,351 Total impaired loans $ 6,023 $ 1,743 $ 9,837 $ 15,860 $ 22,325 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 lines of credit — — 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 and related interest income recognized for the years ended: December 31, 2022 December 31, 2021 December 31, 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial: Business $ 12,781 $ 8 $ 6 $ 7,701 $ — $ — $ 6,066 $ — $ — Real estate 1,479 57 59 2,051 60 43 3,057 97 104 Acquisition, development and construction 273 — — 344 — — 1,207 67 73 Total commercial 14,533 65 65 10,096 60 43 10,330 164 177 Residential 6,952 15 15 5,992 15 14 2,541 19 19 Home equity lines of credit 149 — — 81 — — 87 — — Consumer 915 — — 41 — — 7 — — Total $ 22,549 $ 80 $ 80 $ 16,210 $ 75 $ 57 $ 12,965 $ 183 $ 196 As of December 31, 2022, there are ten loans collateralized by residential real estate property in the process of foreclosure. The total recorded investment in these loans was $2.1 million as of December 31, 2022. These loans are included in the table above and have no specific allowance allocated to them. As of December 31, 2022, the Bank's other real estate owned balance totaled $1.2 million. The Bank held five foreclosed residential real estate properties representing $0.2 million, or 16.7%, of the total balance of other real estate owned. The Bank held three commercial real estate properties representing $1.0 million or 83.3% of the total balance of other real estate owned. As of December 31, 2021, there are six loans collateralized by residential real estate property in the process of foreclosure. The total recorded investment in these loans was $0.4 million as of December 31, 2021. These loans are included in the table above and have no specific allowance allocated to them. As of December 31, 2021, the Bank's other real estate owned balance totaled $2.4 million. The Bank held four foreclosed residential real estate properties, representing $0.2 million, or 7.3%, of the total balance of other real estate owned. The Bank held ten commercial real estate properties representing $2.2 million or 92.7% of the total of other real estate owned. We use 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 bank 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 make 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 an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as past due status, bankruptcy, repossession or death occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of $1.0 million or greater is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process, and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2022 and 2021: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2022 Commercial: Business $ 830,319 $ 5,963 $ 12,103 $ 2,687 $ 851,072 Real estate 592,997 18,883 20,600 359 632,839 Acquisition, development and construction 120,788 5,277 934 126,999 Total commercial 1,544,104 30,123 33,637 3,046 1,610,910 Residential 605,513 760 1,556 1,623 609,452 Home equity lines of credit 18,269 375 90 — 18,734 Consumer 131,562 — 4 — 131,566 Total loans $ 2,299,448 $ 31,258 $ 35,287 $ 4,669 $ 2,370,662 December 31, 2021 Commercial: Business $ 789,101 $ 12,246 $ 18,143 $ 2,125 $ 821,615 Real estate 526,851 12,598 31,293 1,994 572,736 Acquisition, development and construction 89,893 4,960 4,163 1,064 100,080 Total commercial 1,405,845 29,804 53,599 5,183 1,494,431 Residential 299,291 899 9,815 493 310,498 Home equity lines of credit 21,582 387 191 26 22,186 Consumer 43,519 24 259 530 44,332 Total loans $ 1,770,237 $ 31,114 $ 63,864 $ 6,232 $ 1,871,447 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 thorough review is presented to the Chief Credit Officer and/or the SARC, as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status, unless we believe it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires the receipt of six The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2022 and 2021: (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 December 31, 2022 Commercial: Business $ 850,112 $ — $ 960 $ — $ 960 $ 851,072 $ 7,528 $ — Real estate 632,839 — — — — 632,839 — — Acquisition, development and construction 126,999 — — — — 126,999 — — Total commercial 1,609,950 — 960 — 960 1,610,910 7,528 — Residential 606,554 1,820 1,078 — 2,898 609,452 2,196 — Home equity lines of credit 18,131 603 — — 603 18,734 90 — Consumer 120,504 6,848 2,867 1,347 11,062 131,566 1,351 — Total loans $ 2,355,139 $ 9,271 $ 4,905 $ 1,347 $ 15,523 $ 2,370,662 $ 11,165 $ — December 31, 2021 Commercial: Business $ 816,638 $ 1,718 $ 11 $ 3,248 $ 4,977 $ 821,615 $ 8,261 $ — Real estate 569,792 396 461 2,087 2,944 572,736 192 — Acquisition, development and construction 98,781 67 412 820 1,299 100,080 1,392 — Total commercial 1,485,211 2,181 884 6,155 9,220 1,494,431 9,845 — Residential 303,940 3,620 285 2,653 6,558 310,498 7,636 — Home equity lines of credit 21,974 — 119 93 212 22,186 217 — Consumer 42,231 1,211 461 429 2,101 44,332 259 — Total loans $ 1,853,356 $ 7,012 $ 1,749 $ 9,330 $ 18,091 $ 1,871,447 $ 17,957 $ — The ALL is maintained to absorb losses from the loan portfolio and 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. Interest income on loans would have increased by approximately $0.5 million, $0.4 million and $0.6 million for 2022, 2021 and 2020, respectively, if loans had performed in accordance with their terms. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Bank 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 and $0.1 million and $0.1 million as of December 31, 2022, 2021 and 2020, respectively. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by qualified factors. The segments described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Company and Bank management track 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 we use to supplement the historical charge-off factor as 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 the 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. The liability for unfunded commitments was $0.5 million as of December 31, 2022 and 2021. 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 tables summarize the activity of 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 years ending December 31, 2022, 2021 and 2020: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Charge-offs (2,858) — — (2,858) (84) — (12,241) (15,183) Recoveries 56 127 — 183 — 7 6,370 6,560 Provision (release) 3,546 486 82 4,114 1,472 (4) 8,612 14,194 ALL balance at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Individually evaluated for impairment $ 1,253 $ 222 $ — $ 1,475 $ — $ — $ 268 $ 1,743 Collectively evaluated for impairment $ 7,518 $ 5,482 $ 1,064 $ 14,064 $ 2,880 $ 131 $ 5,019 $ 22,094 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Charge-offs (1,284) (83) — (1,367) (5) — (247) (1,619) Recoveries 231 — — 231 — 24 61 316 Provision (release) (3,113) (3,905) (1,779) (8,797) 35 (194) 2,681 (6,275) ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Individually evaluated for impairment $ 232 $ 243 $ — $ 475 $ — $ — $ — $ 475 Collectively evaluated for impairment $ 7,795 $ 4,848 $ 982 $ 13,625 $ 1,492 $ 128 $ 2,546 $ 17,791 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2019 $ 6,197 $ 2,988 $ 913 $ 10,098 $ 1,272 $ 327 $ 78 $ 11,775 Charge-offs (1,909) (23) — (1,932) (235) (23) — (2,190) Recoveries 15 7 — 22 — 9 3 34 Provision (release) 7,890 6,107 1,848 15,845 779 (15) (30) 16,579 Allowance contributed with mortgage combination transaction — — — — (354) — — (354) ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Individually evaluated for impairment $ 1,034 $ 262 $ — $ 1,296 $ — $ — $ — $ 1,296 Collectively evaluated for impairment $ 11,159 $ 8,817 $ 2,761 $ 22,737 $ 1,462 $ 298 $ 51 $ 24,548 The allowance for loan losses 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 December 31, 2022 and 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 $10.4 million and $12.6 million as of December 31, 2022 and December 31, 2021, respectively. Of these totals, $4.7 million and $4.5 million, respectively, represent accruing troubled debt restructured loans and represent 45% and 21%, respectively, of total impaired loans. Meanwhile, as of December 31, 2022, $5.7 million represents nine loans to seven borrowers that have defaulted under the restructured terms. The largest of these loans is a $1.9 million restructured commercial loan to a company previously dependent on the coal industry, which is now structured as an unsecured loan. Three of these loans to an unrelated borrower, totaling $3.1 million, are restructured equipment loans to a borrower in the coal industry, which was provided extended interest-only terms to allow time for the collateral equipment to be sold. There is a commercial loan totaling $0.5 million secured by government lease payments that previously defaulted and is now making restructured payments. The four remaining unrelated borrowers have a single loan each, totaling $0.2 million. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of December 31, 2022. All of the nine loans were also considered non-performing loans as of December 31, 2021. During the year ended December 31, 2022, no restructured loans defaulted under their modified terms that were not already classified as non-performing for having previously defaulted under their modified terms. There were no commitments to advance funds to any TDRs as of December 31, 2022. There were no new loans identified as TDRs during the year ended December 31, 2022. The following table presents details related to loans identified as TDRs during the year ended December 31, 2021: December 31, 2021 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial: Business 2 $ 5,200 $ 4,836 Real estate — — — Total commercial 2 5,200 4,836 Residential — — — Total 2 $ 5,200 $ 4,836 1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan. PPP Loans and CARES Act Deferrals We actively participated in the PPP as a lender, evaluating other programs available to assist our clients and providing deferrals consistent with GSE guidelines. As of December 31, 2022, the outstanding balance of PPP loans totaled $7.9 million on loans originated through our internal commercial team and $5.6 million on loans originated through our partnership with a Fintech company. A single loan totaling $2.0 million was labeled Special Mention as of December 31, 2022. The borrower did not complete all of the steps required for forgiveness under the PPP program and converted to principal and interest payments in December 2022. We are currently following the administrative steps needed to submit the loan to the SBA for the execution of their full guarantee. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment at December 31,: (Dollars in thousands) 2022 2021 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,642 16,841 Software 6,019 4,176 Construction in progress 508 531 Leasehold improvements 2,836 2,895 43,863 41,301 Accumulated depreciation (20,210) (16,249) Premises and equipment, net $ 23,653 $ 25,052 Depreciation expense totaled $4.4 million, $3.3 million and $3.0 million for 2022, 2021 and 2020, respectively. We lease certain premises and equipment under operating and finance leases. At December 31, 2022, we had lease liabilities totaling $15.0 million and right-of-use assets totaling $13.9 million, substantially all of which was related to operating leases. At December 31, 2022, the weighted-average remaining lease term for operating leases was 11.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.0%. 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, all of which was related to operating leases. At December 31, 2021, the weighted-average remaining lease term for operating leases was 12.0 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 rates used in the measurement of finance lease liabilities was 2.0%. Lease liabilities and right-of-use assets are reflected in other liabilities other assets The following shows lease costs for the years ended: (Dollars in thousands) December 31, 2022 December 31, 2021 Amortization of right-of-use assets, finance leases $ 57 $ 59 Interest on lease liabilities, finance leases — 2 Operating lease cost 1,781 1,966 Short-term lease cost 32 5 Variable lease cost 38 38 Total lease cost $ 1,908 $ 2,070 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2022. For operating leases with initial or remaining terms of one year or more as of December 31, 2022, the following table presents future minimum payments for the twelve month periods ended December 31: (Dollars in thousands) Operating Leases 2023 $ 1,655 2024 1,579 2025 1,576 2026 1,584 2027 1,625 2028 and thereafter 10,111 Total future minimum lease payments $ 18,130 Less: Amounts representing interest (3,120) Present value of net future minimum lease payments $ 15,010 There are no material future minimum payments on finance leases as of December 31, 2022. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 5 – Equity Method Investments In accordance with Rules 3-09 and 4-08(g) 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, investment and asset tests described in S-X 1-02(w) for each equity method investment. Rule 3-09 of Regulation S-X requires separate audited financial statements of an equity method investee in an annual report if either the income or investment test exceeds 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in an annual report if any of the equity method investees, individually or in the aggregate, result in any of the tests exceeding 10%. Under the income test, our proportionate share of the revenue from equity method investments in the aggregate exceeded the applicable threshold under Rule 4-08(g) of 10% for the year ended December 31, 2022, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. There were no equity method investments which met any of the applicable thresholds for reporting Rule 3-09 for reporting separate financial statements as of the year ended December 31, 2022. Our equity method investments are initially recorded at cost, including transaction costs to obtain the equity method investment, and are subsequently adjusted for changes due to our share of the entities' earnings. ICM The following table provides summarized income statement information for ICM for the years ended December 31, 2022 and 2021: December 31, (Dollars in thousands) 2022 2021 Total revenues $ 67,207 $ 153,549 Net income 343 41,381 Gain on sale of loans 44,921 150,896 Volume of loans sold 2,325,709 5,326,757 Our ownership percentage of 40% of ICM allows us to have significant influence over the operations and decision making at ICM. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from our investment in ICM was not material and $16.4 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the locked mortgage pipeline was $0.7 billion and $1.0 billion, respectively. Warp Speed In October 2022, we acquired a 37.5% interest in Warp Speed and accounted for our ownership as an equity method investment, initially recorded at cost including costs incurred to obtain the equity method investment. Please refer to Note 25 – Acquisitions and Divestitures . Our ownership of Warp Speed allows us to have significant influence over its operations and decision making. Accordingly, the investment is accounted for as an equity method investment. At the time of acquisition, we made a policy election to record our proportionate share of net income of the investee on a three month lag. For the year ended December 31, 2022, we recorded no impact on our income from the equity method investment in Warp Speed. Ayers Socure II Our ownership percentage of 10% 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 twelve months ended December 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. Ayers Socure II's sole business is ownership of equity securities in Socure Inc. ("Socure"). In addition to our equity method investment in Ayers Socure II, we also have direct equity security ownership interest in Socure. With the combination of our investments in both Ayers Socure II and Socure directly, we own less than 1% of Socure in total. Interchecks Prior to December 2022, our ownership percentage of Interchecks, as well as certain other qualitative factors, allowed us to have significant influence over the operations and decision making at Interchecks. Accordingly, the investment had been accounted for as an equity method investment. As a result of a December 2022 sale of Interchecks shares, our remaining ownership percentage decreased to 9%, which was no longer significant to warrant equity method investment classification, and this investment was reclassified to equity securities as of December 31, 2022. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits Deposits at December 31, were as follows: (Dollars in thousands) 2022 2021 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,231,544 $ 1,120,433 Interest-bearing demand 720,074 651,016 Savings and money markets 284,447 510,068 Time deposits, including CDs and IRAs 334,417 96,088 Total deposits $ 2,570,482 $ 2,377,605 Time deposits that meet or exceed the FDIC insurance limit $ 4,386 $ 9,573 Maturities of time deposits at December 31, 2022 were as follows (dollars in thousands): 2023 $ 263,254 2024 64,010 2025 3,819 2026 687 2027 2,394 Thereafter 253 Total $ 334,417 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the FHLB of Pittsburgh, Pennsylvania. As of December 31, 2022, the Bank's maximum borrowing capacity with the FHLB was $751.4 million and the remaining borrowing capacity was $539.3 million, with the difference being short-term borrowings and letters of credit with the FHLB. Short-term borrowings As of December 31, 2022, the Bank had $102.3 million short-term borrowings with the FHLB and no borrowings under Fed Funds purchased outstanding. As of December 31, 2021, the Bank had no short-term borrowings with the FHLB and no borrowings under Fed Funds purchased outstanding. Information related to short-term borrowings is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 102,333 $ — Average balance during the year 15,494 25,275 Maximum month-end balance 102,333 130,047 Weighted-average rate during the year 2.82 % 0.05 % Weighted-average rate at December 31 4.45 % — % Long-term borrowings As of December 31, 2022 and December 31, 2021, the Bank had no long-term borrowings with the FHLB. 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. All of our repurchase agreements were overnight agreements at December 31, 2022 and December 31, 2021. These borrowings were collateralized with investment securities with a carrying value of $10.4 million and $15.8 million at December 31, 2022 and December 31, 2021, respectively, and were comprised of United States Government Agencies and Mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. Information related to repurchase agreements is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 10,037 $ 11,385 Average balance during the year 10,987 10,821 Maximum month-end balance 12,680 11,398 Weighted-average rate during the year 0.05 % 0.12 % Weighted-average rate at December 31 0.06 % 0.05 % Subordinated Debt Information related to subordinated debt is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 73,286 $ 73,030 Average balance during the year 73,159 51,149 Maximum month-end balance 73,286 73,030 Weighted-average rate during the year 4.20 % 4.28 % Weighted-average rate at December 31 3.97 % 3.71 % In September 2021, we completed the private placement of $30 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 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, we completed the private placement of $40 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 401 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In March 2007, we completed the private placement of $4 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. We recognized interest expense on our subordinated debt of $3.1 million, $2.2 million and $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. Senior term loan Information related to senior term loan is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 9,765 — Average balance during the year 2,328 — Maximum month-end balance 9,886 — Weighted-average rate during the year 7.00 % — Rate at December 31 7.44 % — In October 2022, we entered into a credit agreement with Raymond James Bank ("Raymond James"). Pursuant to the credit agreement, Raymond James has extended to us a senior term loan in the aggregate principal amount of up to $10 million. In connection with the closing of the Warp Speed transaction, we borrowed $10 million and paid Raymond James an upfront fee of 1% of the loan amount. The loan will bear interest per annum at a rate equal to 2.75%, plus term secured overnight financing rate, which will reset monthly. Accrued interest is payable on the last business day of each month, beginning with October 31, 2022, with the then outstanding principal balance of the loan payable on the last business day of each quarter in the amount of $125,000 during the first year and $250,000 thereafter. The loan will mature in April 2025, unless accelerated earlier upon an event of default. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 8 – Commitments and Contingent Liabilities Commitments We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. Our exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount and type of collateral obtained, if deemed necessary by us upon extension of credit, varies and is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third-party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Our policy for obtaining collateral, and the nature of such collateral, is substantially the same as that involved in making commitments to extend credit. Specifically, the Bank has entered into agreements to extend credit or provide conditional payments pursuant to standby and commercial letters of credit. In addition, the Bank utilizes letters of credit issued by the FHLB to collateralize certain public funds deposits. Total contractual amounts of the commitments as of December 31, were as follows: (Dollars in thousands) 2022 2021 Available on lines of credit $ 495,618 $ 384,923 Stand-by letters of credit 17,153 23,600 Other loan commitments 14,901 15,792 $ 527,672 $ 424,315 Concentration of Credit Risk We grant a majority of our commercial, financial, agricultural, real estate and installment loans to customers throughout the North Central West Virginia and Northern Virginia markets. Collateral for loans is primarily residential and commercial real estate, personal property and business equipment. We evaluate the credit worthiness of each of our customers on a case-by-case basis and the amount of collateral we obtain is based upon management’s credit evaluation. Regulatory We are required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. In accordance with these requirements, we implemented a deposit reclassification program that allowed us to maintain no such reserve balances as of December 31, 2022 and 2021. Contingent Liabilities The Bank is involved in various legal actions arising in the ordinary course of business. In the opinion of management and counsel, the outcome of these matters will not have a significant adverse effect on the consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The provisions for income taxes for the years ended December 31, were as follows: (Dollars in thousands) 2022 2021 2020 Current: Federal $ 6,607 $ 3,332 $ 10,899 State 1,152 421 2,019 $ 7,759 $ 3,753 $ 12,918 Deferred: Federal $ (3,056) $ 5,159 $ (3,183) State (575) 970 (203) (3,631) 6,129 (3,386) Income tax expense $ 4,128 $ 9,882 $ 9,532 Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31: 2022 2021 2020 (Dollars in thousands) Amount % Amount % Amount % Income tax at federal statutory rate $ 3,889 21.0 % $ 10,201 21.0 % $ 9,858 21.0 % Tax effect of: State income taxes, net of federal income taxes 456 2.5 % 1,099 2.2 % 1,435 3.1 % Tax exempt earnings (1,596) (8.6) % (1,460) (3.0) % (1,381) (3.0) % Other 1,379 7.4 % 42 0.1 % (380) (0.8) % $ 4,128 22.3 % $ 9,882 20.3 % $ 9,532 20.3 % Deferred income tax assets and liabilities were comprised of the following at December 31: (Dollars in thousands) 2022 2021 Gross deferred tax assets: Allowance for loan losses $ 5,849 $ 4,393 Minimum pension liability 991 1,245 Stock-based compensation 1,097 1,140 SERP 317 298 Unrealized loss on securities available-for-sale 11,024 — Lease liabilities 3,611 4,370 Other 364 249 Total gross deferred tax assets 23,253 11,695 Gross deferred tax liabilities: Depreciation (1,726) (1,556) Pension (1,062) (1,077) Unrealized gain on securities available-for-sale (80) (45) Holding gain on equity securities (3,969) (4,358) Equity method investment (2,220) (4,086) Goodwill (110) (70) Right-of-use assets (3,383) (4,141) Other (264) (288) Total gross deferred tax liabilities (12,814) (15,621) Net deferred tax assets (liabilities) $ 10,439 $ (3,926) Net deferred income tax assets and net deferred income tax liabilities were included in other assets and other liabilities, respectively, based on the ending balance. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions We have granted loans to our officers and directors and to their immediate family members, as well as loans to related companies. These related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk of collectability. Set forth below is a summary of the related loan activity. (Dollars in thousands) Balance at Beginning of Year Borrowings, net of participations Executive Officer and Director Retirements Repayments Balance at End of Year December 31, 2022 $ 27,606 $ 221,825 $ (998) $ (215,000) $ 33,433 December 31, 2021 $ 27,423 $ 4,373 $ (996) $ (3,194) $ 27,606 We held related party deposits of $112.5 million and $63.6 million at December 31, 2022 and December 31, 2021, respectively. On January 17, 2022, the MVB Bank Inc. Board of Directors approved a $35.0 million line of credit to BillGO, Inc. a related party of the Bank . Revenue generated during the year from contracts with BillGO, Inc. totaled $0.3 million at December 31, 2022 and December 31, 2021, respectively. In October 2022, we acquired an interest in Warp Speed and account for our ownership as an equity method investment, initially recorded at cost including costs incurred to obtain the equity method investment. As part of the purchase, we are able to designate two out of seven directors to the board of directors of Warp Speed. We purchase loan participations from CalCon Mutual Mortgage LLC, a subsidiary of Warp Speed. As of December 31, 2022, loans purchased from CalCon had an outstanding balance of $39.1 million. Interest income recognized on these participations was $0.9 million for the year ended December 31, 2022. We account for our ownership interest in ICM as an equity method investment and purchase loan participations from ICM. As of December 31, 2022, loans purchased from ICM had an outstanding balance of $572.7 million. |
Pension Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension Plan | Note 11 – Pension Plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan. 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%. 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 at December 31, 2022 and 2021, respectively. Service costs were not material for any periods covered by this report. Pension expense was $0.3 million, $0.3 million and $0.3 million in 2022, 2021 and 2020, respectively. Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2022 and 2021 is as follows: (Dollars in thousands) 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 12,230 $ 12,715 Interest cost 341 313 Actuarial loss 160 143 Assumption changes (3,584) (649) Benefits paid (318) (292) Benefit obligation at end of year $ 8,829 $ 12,230 Change in plan assets: Fair value of plan assets at beginning of year $ 11,591 $ 7,096 Actual return (loss) on plan assets (1,990) 952 Employer contribution — 3,835 Benefits paid (318) (292) Fair value of plan assets at end of year $ 9,283 $ 11,591 Funded status $ 454 $ (639) Unrecognized net actuarial loss 4,120 5,314 Prepaid pension cost recognized $ 4,574 $ 4,675 Accumulated benefit obligation $ 8,829 $ 12,230 At December 31, 2022, 2021 and 2020, the weighted-average assumptions used to determine the benefit obligation are as follows: 2022 2021 2020 Discount rate 5.23 % 2.83 % 2.50 % Rate of compensation increase n/a n/a n/a The components of net periodic pension cost are as follows: (Dollars in thousands) 2022 2021 2020 Interest cost $ 341 $ 313 $ 365 Expected return on plan assets (669) (689) (438) Amortization of net actuarial loss 429 507 420 Net periodic pension cost $ 101 $ 131 $ 347 For the years December 31, 2022, 2021 and 2020, the weighted-average assumptions used to determine net periodic pension cost are as follows: 2022 2021 2020 Discount rate 5.23 % 2.83 % 2.50 % Expected long-term rate of return on plan assets 6.00 % 6.75 % 6.75 % Rate of compensation increase n/a n/a n/a Our pension plan asset allocations at December 31, 2022 and 2021 are as follows: 2022 2021 Plan Assets Cash 7 % 3 % Fixed income 28 % 25 % Alternative investments 13 % 29 % Domestic equities 26 % 25 % Foreign equities 22 % 18 % Real estate investment trusts 4 % — % Total 100 % 100 % The following table sets forth by level within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements , the Pension Plan’s assets at fair value as of December 31, 2022: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 650 $ — $ — $ 650 Fixed income 2,599 — — 2,599 Alternative investments — — 1,207 1,207 Domestic equities 2,414 — — 2,414 Foreign equities 2,042 — — 2,042 Total $ 7,705 $ — $ 1,207 $ 8,912 Investments reported at Net Asset Value 1 371 Total assets at fair value $ 9,283 1 Investments reported at Net Asset Value include Real Estate investment trusts. The following table sets forth by level, within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2021: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 348 $ — $ — $ 348 Fixed income 2,898 — — 2,898 Alternative investments — — 3,361 3,361 Domestic equities 2,898 — — 2,898 Foreign equities 2,086 — — 2,086 Total assets at fair value $ 8,230 $ — $ 3,361 $ 11,591 Investment in government securities, short-term investments, domestic equities and foreign equities are valued at the closing price reported on the active market on which the individual securities are traded. Alternative investments are valued at quoted prices, which are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Real estate investment trusts are valued at the net asset value of the trust at the reporting date. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while this plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table includes our best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: (Dollars in thousands) Cash Flow Contributions for the period of January 1, 2023 through December 31, 2023 $ — Estimated future benefit payments reflecting expected future service 2023 $ 409 2024 $ 433 2025 $ 462 2026 $ 536 2027 $ 542 2028 through 2032 $ 2,801 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 12 – Goodwill and Other Intangible Assets The table below summarizes the changes in carrying amounts of goodwill and other intangibles, including core deposit intangibles, for the periods presented: Intangibles (Dollars in thousands) Goodwill Gross Accumulated Amortization Net Balance at January 1, 2022 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Amortization expense — — (685) (685) Balance at December 31, 2022 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Balance at January 1, 2021 $ 2,350 $ 3,941 $ (1,541) $ 2,400 Goodwill and intangibles resulting from Trabian acquisition 1,638 600 — 600 Reduction of intangibles from sale of branches to Summit — (721) 721 — Amortization expense — — (684) (684) Balance at December 31, 2021 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Balance at January 1, 2020 $ 19,630 $ 4,226 $ (753) $ 3,473 Reduction of goodwill and intangibles from sale of branches to Summit (1,598) (845) 441 (404) Intangibles resulting from First State acquisition — 560 — 560 Reduction of goodwill from ICM transaction (16,882) — — — Goodwill resulting from Paladin acquisition 1,200 — — — Amortization expense — — (1,229) (1,229) Balance at December 31, 2020 $ 2,350 $ 3,941 $ (1,541) $ 2,400 Goodwill represents the excess of the purchase price over the fair value of acquired net assets under the acquisition method of accounting. The intangibles resulting from the Trabian acquisition are related to their customer relationships and trade name. These items are amortized over four years and 10 years, respectively. The intangibles resulting from the Chartwell acquisition are related to their customer relationships, backlog, a trademark and a non-competition agreement. These items are amortized over five years, 5.3 years, 15 years and four years, respectively. The table below presents estimated amortization expense for our other intangible assets (dollars in thousands): 2023 $ 592 2024 321 2025 100 2026 87 2027 87 Thereafter 444 $ 1,631 Our assessment of qualitative factors determined that it is not more likely than not that the fair value of each reporting unit is less than its carrying amount and therefore, goodwill is not impaired as of December 31, 2022 and 2021. We have not identified any triggering events since the impairment evaluation that would indicate potential impairment. Intangibles, including core deposit intangibles are evaluated for impairment if events and circumstances indicate a potential for impairment. Such an evaluation of other intangible assets is based on undiscounted cash flow projections. No impairment charges were recorded for other intangible assets in any of the periods presented. |
Stock Offerings
Stock Offerings | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stock Offerings | Note 13 – Stock Offerings In December 2020, we repurchased 536,490 shares of our common stock at a price of $20.25 per share via a modified “Dutch auction” tender offer. Additionally, our Board of Directors authorized the repurchase from time to time, on or before December 31, 2021, of up to $31.9 million of shares of our common stock as part of our stock repurchase program, which repurchases may occur from time to time, on the open market or otherwise, at such prices and upon such terms as we may determine and otherwise in accordance with applicable law. In December 2020, we issued a notice of redemption to redeem all of our outstanding shares of Convertible Noncumulative Perpetual Preferred Stock, Series B, par value $1.00 per share, with a liquidation preference of $1,000 per share (the “Series B Preferred Stock”) and all of our outstanding shares of Convertible Noncumulative Perpetual Preferred Stock, Series C, par value $1.00 per share, with a liquidation preference of $1,000 per share (the “Series C Preferred Stock,” together with the Series B Preferred Stock, referred to herein as the “Preferred Stock”), at a redemption price per share equal to $10,000, plus declared and unpaid dividends of $46.03 per share of Series B Preferred Stock, and $49.86 per share of Series C Preferred Stock, for the period from and including December 31, 2020, to but excluding January 28, 2021, the date of redemption (the “Preferred Stock Redemption”). The Preferred Stock Redemption is in accordance with the terms of our Articles of Incorporation, as amended. All outstanding shares of our preferred stock were redeemed in January 2021. In April 2021, the Bank entered into a Stock Purchase Agreement with Trabian, a leading software development firm servicing financial institutions. Pursuant to the agreement, a portion of the Bank's purchase consideration for Trabian included 17,597 unregistered shares of our common stock. In August 2021, the Bank entered into a Stock Purchase Agreement with Interchecks, a leading payment disbursement platform. Pursuant to the agreement, a portion of the Bank's purchase consideration for Interchecks included 107,928 unregistered shares of our common stock. In September 2021, the Bank issued 24,408 shares of unregistered common stock valued at $40.97 per share, totaling $1.0 million, pursuant to the Stock Purchase Agreement dated September 13, 2019 between the Bank and Chartwell. In December 2021, the Bank issued 23,558 shares of unregistered common stock valued at $42.45 per share, totaling $1.0 million, pursuant to the Stock Purchase Agreement dated September 13, 2019 between the Bank and Chartwell. In October 2022, we issued 313,030 shares of unregistered common stock valued at $30.60 per share, totaling $9.58 million, pursuant to the Equity Purchase Agreement dated March 13, 2022 between the Bank and Warp Speed. For more information regarding the Warp Speed Purchase Agreement, see Note 25 - Acquisitions and Divestitures. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 14 – Stock-Based Compensation The MVB Financial Corp. Incentive Stock Plan (the “Plan”) provides for the issuance of stock options, restricted stock awards and RSUs to selected employees and directors. On April 4, 2022, the Board of Directors adopted the MVB Financial Corp 2022 Incentive Plan (the “2022 Plan”), which was approved by the shareholders at the annual meeting dated, May 17, 2022. The 2022 Plan replaces the MVB Financial Corp. 2013 Stock Incentive Plan (the “2013 Plan”) and provides for 975,000 shares authorized for grant which includes the number of shares reserved for issuance under the 2013 Plan that remained available for grant thereunder as of the date of Board approval of the 2022 Plan. As of December 31, 2022, 951,868 shares remain available for issuance. Stock-Based Compensation Expense Stock-based compensation expense is recognized as salary and employee benefit cost based upon the fair value of the instruments on the date of the grant. The amount that we recognized in stock-based compensation expense related to the issuance of stock options and RSUs is presented in the following table: (Dollars in thousands) 2022 2021 2020 Stock Options $ 501 $ 832 $ 950 RSUs 2,299 1,802 1,403 Total stock-based compensation expense $ 2,800 $ 2,634 $ 2,353 Proceeds from stock options exercised were $2.1 million, $4.9 million and $4.5 million during 2022, 2021 and 2020, respectively. During 2022, 2021 and 2020, certain options were exercised in broker-assisted cashless transactions. Shares were forfeited related to exercise price and related tax obligations and we paid tax authorities amounts due resulting in a net cash outflow. Stock Options Under the provisions of the Plan, the option price per share shall not be less than the fair market value of the common stock on the grant date. Generally, options granted vest in five years and expire 10 years from the grant date. The following summarizes stock options as of and for the year ended December 31, 2022: 2022 Number of Shares Weighted-Average Exercise Price Outstanding at beginning of year 1,114,200 $ 15.86 Granted 14,350 39.15 Exercised 160,527 12.99 Forfeited 24,930 22.55 Expired 550 14.71 Outstanding at end of year 942,543 $ 16.53 Exercisable at end of year 782,116 $ 15.36 Weighted-average fair value of options granted during 2022 $ 14.94 Weighted-average fair value of options granted during 2021 $ 10.61 Weighted-average fair value of options granted during 2020 $ 4.48 The intrinsic value of options exercised during 2022, 2021 and 2020 was $3.5 million , $8.0 million and $1.9 million, respectively. The fair value for the options was estimated at the grant date using a Black-Scholes option-pricing model with the following inputs: 2022 2021 2020 Average risk-free interest rates 2.23 % 1.27 % 0.66 % Weighted-average life (years) 7 7 7 Expected volatility 41.2 % 41.2 % 30.9 % Expected dividend yield 1.58 % 1.08 % 2.20 % The following summarizes information related to the total outstanding and exercisable stock options at December 31, 2022: Options Outstanding Options Exercisable Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life 942,543 $16.53 $5.7 4.38 782,116 $15.36 $5.3 3.87 At December 31, 2022, total unrecognized pre-tax compensation expense related to unvested stock options outstanding was $0.7 million. This cost is expected to be recognized over a weighted-average period of 2.9 years. For the year ended December 31, 2022, the fair value of stock options vested was $0.6 million. Restricted Stock Units Under the provisions of the Plan, RSUs are similar to restricted stock awards, except the recipient does not receive the stock immediately, but instead receives the stock according to a vesting plan and distribution schedule, after achieving required performance milestones or upon remaining with us for a particular length of time. Each RSU that vests entitles the recipient to receive one share of our common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded RSUs until the recipient becomes the record holder of those shares. We granted 95,723 RSUs in 2022, 53,070 of which were time-based awards and 42,653 of which were performance-based awards. Time-based RSUs granted in 2022 generally vest in five equal installments over a five-year period, with the exception of time-based grants to members of the Board of Directors, which vest over a one-year period. Performance-based RSUs vest in one installment at the end of three years, based on set criteria. A summary of the activity for our RSUs for the period indicated is presented in the following table: 2022 Shares Weighted-Average Grant Date Fair Value Balance at beginning of year 241,906 $ 21.46 Granted 95,723 38.04 Vested (75,354) 21.62 Forfeited (14,718) 26.16 Balance at end of year 247,557 $ 26.39 Weighted-average fair value of RSUs granted during 2022 $ 38.04 Weighted-average fair value of RSUs granted during 2021 $ 40.95 Weighted-average fair value of RSUs granted during 2020 $ 13.08 At December 31, 2022, based on RSU awards outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSU awards was $3.7 million. This cost is expected to be recognized over a weighted-average period of 2.2 years. At December 31, 2022, the fair value of RSU awards vested during the year was $2.9 million. Subsidiary Equity Plan In December 2021, Victor's Board of Directors approved the Victor Technologies, Inc. 2021 Incentive Plan (the “2021 Victor LTI Plan”) which is an incentive plan denominated in Victor’s common shares. The 2021 Victor LTI Plan provides for the issuance of stock options, stock appreciation rights, restricted stock awards and restricted stock units to selected employees and directors. The maximum number of shares that may be issued under the 2021 Victor LTI Plan is 5.0 million shares. During 2022, Victor issued a total of 1.1 million options to employees and non-employees at an average exercise price of $0.29 per share. The options have a ten-year term and will vest over a three-year period, so long as the optionees remain employed by Victor. During 2022 , 299,961 shares vested at an average exercise price of $0.29. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 – 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. For the years ended December 31, (Dollars in thousands except shares and per share data) 2022 2021 2020 Numerator for earnings per share: Net Income $ 14,387 $ 38,696 $ 37,411 Net loss attributable to noncontrolling interest 660 425 — Dividends on preferred stock — (35) (461) Net income available to common shareholders $ 15,047 $ 39,086 $ 36,950 Denominator: Weighted-average shares outstanding - basic 12,279,462 11,778,557 11,821,574 Effect of dilutive stock options and restricted stock units 591,272 835,063 266,532 Weighted-average shares outstanding - diluted 12,870,734 12,613,620 12,088,106 Earnings per common share - basic $ 1.23 $ 3.32 $ 3.13 Earnings per common share - diluted $ 1.17 $ 3.10 $ 3.06 Securities not included in the computation of diluted EPS because the effect would be antidilutive 113,427 93,895 646,168 |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Regulatory Capital Requirements | Note 16 – Regulatory Capital Requirements We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the federal banking agencies. West Virginia state chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of capital. The optional community bank leverage ratio ("CBLR") framework, which is issued through interagency guidance, intends to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions as directed under the EGRRCPA. Under the CBLR, if a qualifying depository institution elects to use such measure, such institutions will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. As of December 31, 2022 and 2021, we and the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain the minimum CBLR as set forth in the table below. Our actual capital amounts and ratio is presented in the table below. In April 2020, under the CARES Act, the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold increased to 8.5% in 2021 and has returned to 9% in 2022. The Bank elected to begin using the CBLR for the first quarter of 2021 and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following: ● Total assets of less than $10 billion; ● Total trading assets plus liabilities of 5% or less of consolidated assets; ● Total off-balance sheet exposures of 25% or less of consolidated assets; ● Cannot be an advanced approaches banking organization; and ● Leverage ratio greater than 9% or temporarily prescribed threshold established in response to COVID-19. Actual Minimum Capital Requirement Minimum to be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Community Bank leverage ratio Subsidiary bank $ 307,936 9.8% $ 250,675 8.0% $ 282,010 9.0% As of December 31, 2021 Community Bank leverage ratio Subsidiary bank $ 321,282 11.6% $ 208,344 7.5% $ 236,123 8.5% |
Regulatory Restriction on Divid
Regulatory Restriction on Dividends | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Regulatory Restriction on Dividends | Note 17 – Regulatory Restriction on Dividends The approval of the regulatory agencies is required if the total of all dividends declared by the Bank in any calendar year exceeds the Bank’s net profits, as defined, for that year combined with its retained net profits for the preceding two |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 18 – Fair Value of Financial Instruments The carrying values and estimated fair values of financial instruments are summarized as follows: Fair Value Measurements at: (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) December 31, 2022 Financial Assets: Cash and cash equivalents $ 40,280 $ 40,280 $ 40,280 $ — $ — Securities available-for-sale 379,814 379,814 — 344,471 35,343 Equity securities 38,744 38,744 5,382 — 33,362 Loans held-for-sale 23,126 24,898 — 24,898 — Loans receivable, net 2,348,808 2,285,427 — — 2,285,427 Servicing assets 0 1,616 1,634 — — 1,634 Interest rate swap 8,427 8,427 — 8,427 — Accrued interest receivable 12,617 12,617 — 2,778 9,839 Bank-owned life insurance 43,239 43,239 — 43,239 — Embedded derivative 787 787 — — 787 Financial Liabilities: Deposits $ 2,570,482 $ 2,226,037 $ — $ 2,226,037 $ — Repurchase Agreements 10,037 10,037 — 10,037 — Fair value hedge 572 572 — 572 — Interest rate swap 8,427 8,427 — 8,427 — Accrued interest payable 2,558 2,558 — 2,558 — FHLB and other borrowings 102,333 102,006 — 102,006 — Senior term loan 9,765 9,765 — 9,765 — Subordinated Debt 73,286 64,330 — 64,330 — 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 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 — Fair value hedge 807 807 — 807 Interest rate swap 6,702 6,702 — 6,702 — Accrued interest payable 690 690 — 690 — Subordinated debt 73,030 74,774 — 74,774 — |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 19 – 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 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. 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. 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 year ended December 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 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 year ended December 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 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. Bank-owned life insurance — Life insurance where the bank is both the policy beneficiary and owner. Bank-owned life insurance ("BOLI") is recorded at fair value on a recurring basis, and increases in cash surrender, contract value and net insurance proceeds at maturity are recorded as other income. Embedded derivatives — Accounted for and recorded separately from the underlying contract as a derivative at fair value on a recurring basis. Fair values are determined using the Monte Carlo model valuation technique. The valuation methodology utilized includes significant unobservable inputs. The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2022 and 2021 by level within the fair value hierarchy: December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 44,814 $ — $ 44,814 United States sponsored mortgage-backed securities — 56,571 — 56,571 United States treasury securities — 120,909 — 120,909 Municipal securities — 103,293 35,343 138,636 Corporate debt securities — 10,560 — 10,560 Other securities — 824 — 824 Equity securities 5,382 — — 5,382 Loans held-for-sale — 24,898 — 24,898 Interest rate swap — 8,427 — 8,427 Bank-owned life insurance — 43,239 — 43,239 Embedded derivative — — 787 787 Liabilities: Interest rate swap — 8,427 — 8,427 Fair value hedge — 572 — 572 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 United States treasury securities — 110,389 — 110,389 Municipal securities — 133,249 41,763 175,012 Corporate debt securities — 11,142 — 11,142 Other securities — 878 — 878 Equity securities 247 — — 247 Interest rate swap — 6,702 — 6,702 Fair value hedge — 1,552 — 1,552 Bank-owned life insurance — 42,257 — 42,257 Liabilities: Interest rate swap — 6,702 — 6,702 Fair value hedge — 807 — 807 The following table represents recurring Level III assets as of the periods shown: (Dollars in thousands) Municipal Securities Embedded Derivatives Total Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized gains included in earnings 9 — 9 Purchase of securities 1,048 — 1,048 Maturities/calls (3,207) — (3,207) Unrealized loss included in other comprehensive loss (4,270) — (4,270) Host contract executed $ — $ 787 $ 787 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Balance at December 31, 2020 $ 43,679 $ — $ 43,679 Purchase of securities 3,862 — 3,862 Maturities/calls (5,214) — (5,214) Unrealized loss included in other comprehensive income (564) — (564) Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Assets Measured on a Nonrecurring Basis We may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 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. Loans held-for-sale — The fair value of loans held-for-sale is determined, when possible, using quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. If the fair value at the reporting date exceeds the amortized cost of a loan, the loan is reported at amortized cost. 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. Assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021 are included in the table below: December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,117 $ 14,117 Other real estate owned — — 1,194 1,194 Other debt securities — — 7,500 7,500 Equity securities — — 33,362 33,362 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 Other debt securities — — 7,500 7,500 Equity securities — — 32,155 32,155 The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2022 and 2021: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 Nonrecurring measurements: Impaired loans $ 14,117 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 1,194 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost minus impairment 0% Equity securities $ 33,362 Net asset value Cost minus impairment 0% Recurring measurements: Municipal securities 5 $ 35,343 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded Derivatives $ 787 Monte Carlo pricing model Deferred payment $0 - $51.9 million Volatility 58% Term 5 years Risk free rate 3.95% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range 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 0% Equity securities $ 32,155 Net asset value Cost minus impairment 0% 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 which 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 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. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 20 – Comprehensive Income The following tables present the components of accumulated other comprehensive income (“AOCI”) for the years ended December 31: (Dollars in thousands) 2022 2021 2020 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Consolidated Statement of Income Line Item Available-for-sale securities Unrealized holding gain $ 650 $ 3,875 $ 914 Gain on sale of available-for-sale securities 650 3,875 914 Total before tax (152) (908) (214) Income tax expense 498 2,967 700 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (429) (507) (420) Salaries and employee benefits (429) (507) (420) Total before tax 103 119 98 Income tax benefit (326) (388) (322) Net of tax Investment hedge Carrying value adjustment 83 (862) 473 Interest on investment securities 83 (862) 473 Total before tax (21) 233 (128) Income tax benefit (expense) 62 (629) 345 Net of tax Total reclassifications $ 234 $ 1,950 $ 723 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment Hedge Total Balance at January 1, 2022 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (34,478) 614 — (33,864) Amounts reclassified from AOCI (498) 326 (62) (234) Net current period OCI (34,976) 940 (62) (34,098) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Balance at January 1, 2021 $ 7,586 $ (5,047) $ (313) $ 2,226 Other comprehensive income (loss) before reclassification (4,472) 590 — (3,882) Amounts reclassified from AOCI (2,967) 388 629 (1,950) Net current period OCI (7,439) 978 629 (5,832) Balance at December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 21 – Condensed Financial Statements of Parent Company Information relative to the parent company’s condensed balance sheets at December 31, 2022 and 2021 and the related condensed statements of income and cash flows for the years ended December 31, 2022, 2021 and 2020 are presented below: Condensed Balance Sheets December 31, (Dollars in thousands) 2022 2021 Assets Cash $ 31,085 $ 27,463 Investment in subsidiaries 277,173 322,002 Debt and equity securities 4,904 — Equity method investments 50,976 — Other assets 11,033 13,715 Total assets $ 375,171 $ 363,180 Liabilities and stockholders’ equity Other liabilities $ 31,036 $ 15,822 Senior term loan 9,765 — Subordinated debt 73,286 73,030 Total liabilities 114,087 88,852 Total stockholders’ equity 261,084 274,328 Total liabilities and stockholders’ equity $ 375,171 $ 363,180 Condensed Statements of Income Year ended December 31, (Dollars in thousands) 2022 2021 2020 Income, dividends from the Bank $ 50,985 $ 19,165 $ 6,688 Operating expenses 27,774 22,458 16,804 Income (loss), before income taxes 23,211 (3,293) (10,116) Income tax benefit (3,450) (2,090) (2,082) Net income (loss) 26,661 (1,203) (8,034) Equity in undistributed income earnings of subsidiaries (11,614) 40,324 45,445 Net income $ 15,047 $ 39,121 $ 37,411 Preferred dividends $ — $ 35 $ 461 Net income available to common shareholders $ 15,047 $ 39,086 $ 36,950 Condensed Statements of Cash Flows (Dollars in thousands) 2022 2021 2020 OPERATING ACTIVITIES Net income $ 15,047 $ 39,121 $ 37,411 Equity in undistributed earnings of subsidiaries 11,614 (40,324) (45,445) Stock-based compensation 3,217 3,208 2,278 Depreciation and amortization 269 175 12 Other assets (45,406) (6,849) (2,101) Other liabilities 16,358 11,215 1,755 Net cash from operating activities 1,099 6,546 (6,090) INVESTING ACTIVITIES Investment in subsidiaries (240) (15,871) (3,713) Net cash from investing activities (240) (15,871) (3,713) FINANCING ACTIVITIES Proceeds from stock issuance — — 240 Issuance of senior term loan, net of issuance costs 9,877 — — Issuance of subordinated debt, net of issuance costs — 29,448 40,000 Common stock repurchased — — (15,657) Preferred stock redemption — (7,334) — Common stock options exercised 1,399 4,930 4,464 Withholding cash issued in lieu of restricted stock — (249) — Issuance of subsidiary membership units — 500 — Principal payments on senior term loan (125) — — Stock purchase from noncontrolling interest (33) — — Cash dividends paid on common stock (8,355) (6,038) (4,275) Cash dividends paid on preferred stock — (35) (461) Net cash from financing activities 2,763 21,222 24,311 Net change in cash 3,622 11,897 14,508 Cash at beginning of period 27,463 15,566 1,058 Cash at end of period $ 31,085 $ 27,463 $ 15,566 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 22 – 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 is included in the CoRe banking segment. Revenue from our mortgage banking segment is primarily comprised of our share of net income or loss from mortgage banking activities of our equity method investments in ICM and Warp Speed. As we have elected to record our proportionate share of earnings of Warp Speed on three month lag, results of Warp Speed are not included in the tables below. 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 Edge Ventures holding company. Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2022, 2021 and 2020 are as follows: 2022 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 125,426 $ 429 $ — $ — $ 146 $ (44) $ 125,957 Interest expense $ 10,920 $ — $ 39 $ 5 $ 3,234 $ (44) $ 14,154 Net interest income (expense) $ 114,506 $ 429 $ (39) $ (5) $ (3,088) $ — $ 111,803 Provision for loan losses $ 14,194 $ — $ — $ — $ — $ — $ 14,194 Net interest income (expense) after provision for loan losses $ 100,312 $ 429 $ (39) $ (5) $ (3,088) $ — $ 97,609 Noninterest income $ 22,673 $ 37 $ 22,812 $ 459 $ 10,576 $ (18,263) $ 38,294 Noninterest Expenses: Salaries and employee benefits $ 36,960 $ 8 $ 15,276 $ 3,336 $ 16,582 $ — $ 72,162 Other expenses $ 44,873 $ 142 $ 5,233 $ 5,192 $ 8,049 $ (18,263) $ 45,226 Total noninterest expenses $ 81,833 $ 150 $ 20,509 $ 8,528 $ 24,631 $ (18,263) $ 117,388 Income (loss) before income taxes $ 41,152 $ 316 $ 2,264 $ (8,074) $ (17,143) $ — $ 18,515 Income taxes $ 8,882 $ 77 $ 567 $ (1,926) $ (3,472) $ — $ 4,128 Net income (loss) $ 32,270 $ 239 $ 1,697 $ (6,148) $ (13,671) $ — $ 14,387 Net loss attributable to noncontrolling interest $ — $ — $ 207 $ 453 $ — $ — $ 660 Net income (loss) available to common shareholders $ 32,270 $ 239 $ 1,904 $ (5,695) $ (13,671) $ — $ 15,047 Capital expenditures for the year ended December 31, 2022 $ 400 $ — $ 26 $ 2,202 $ 413 $ — $ 3,041 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 14,817 12,258 $ 375,171 $ (382,119) $ 3,068,850 Goodwill as of December 31, 2022 $ — $ — 3,988 $ — $ — $ — $ 3,988 2021 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 83,023 $ 411 $ (8) $ — $ 15 $ (12) $ 83,429 Interest expense $ 4,078 $ — $ 16 $ — $ 2,188 $ (12) $ 6,270 Net interest income (expense) $ 78,945 $ 411 $ (24) $ — $ (2,173) $ — $ 77,159 Provision for loan losses $ (6,274) $ (1) $ — $ — $ — $ — $ (6,275) Net interest income (expense) after provision for loan losses $ 85,219 $ 412 $ (24) $ — $ (2,173) $ — $ 83,434 Noninterest income $ 33,179 $ 16,342 $ 14,931 $ 71 $ 11,103 $ (13,030) $ 62,596 Noninterest Expenses: Salaries and employee benefits $ 33,595 $ — $ 10,949 $ 1,962 $ 13,704 $ — $ 60,210 Other expenses $ 37,033 $ 16 $ 4,095 $ 2,555 $ 6,573 $ (13,030) $ 37,242 Total noninterest expenses $ 70,628 $ 16 $ 15,044 $ 4,517 $ 20,277 $ (13,030) $ 97,452 Income (loss) before income taxes $ 47,770 $ 16,738 $ (137) $ (4,446) $ (11,347) $ — $ 48,578 Income taxes $ 9,154 $ 4,068 $ (105) $ (1,144) $ (2,091) $ — $ 9,882 Net income (loss) $ 38,616 $ 12,670 $ (32) $ (3,302) $ (9,256) $ — $ 38,696 Net loss attributable to noncontrolling interest $ — $ — $ 210 $ 215 $ — $ — $ 425 Net income (loss) attributable to parent $ 38,616 $ 12,670 $ 178 $ (3,087) $ (9,256) $ — $ 39,121 Preferred stock dividends $ — $ — $ — $ — $ 35 $ — $ 35 Net income (loss) available to common shareholders $ 38,616 $ 12,670 $ 178 $ (3,087) $ (9,291) $ — $ 39,086 Capital expenditures for the year ended December 31, 2021 $ 2,590 $ — $ 2,731 $ — $ 43 $ — $ 5,364 Total assets as of December 31, 2021 $ 2,804,840 $ 50,202 $ 13,210 $ 9,914 $ 363,971 $ (449,688) $ 2,792,449 Goodwill as of December 31, 2021 $ — $ — $ 3,988 $ — $ — $ — $ 3,988 2020 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 75,812 $ 6,269 $ — $ — $ 3 $ (1,631) $ 80,453 Interest expense $ 10,400 $ 3,139 $ — $ — $ 261 $ (2,173) $ 11,627 Net interest income (expense) $ 65,412 $ 3,130 $ — $ — $ (258) $ 542 $ 68,826 Provision for loan losses $ 16,649 $ (70) $ — $ — $ — $ — $ 16,579 Net interest income (expense) after provision for loan losses $ 48,763 $ 3,200 $ — $ — $ (258) $ 542 $ 52,247 Noninterest income $ 24,420 $ 63,490 $ 5,909 $ — $ 6,685 $ (8,667) $ 91,837 Noninterest Expenses: Salaries and employee benefits $ 25,808 $ 21,550 $ 2,993 $ — $ 11,278 $ — $ 61,629 Other expenses $ 31,389 $ 5,074 $ 1,909 $ — $ 5,265 $ (8,125) $ 35,512 Total noninterest expenses $ 57,197 $ 26,624 $ 4,902 $ — $ 16,543 $ (8,125) $ 97,141 Income (loss) before income taxes $ 15,986 $ 40,066 $ 1,007 $ — $ (10,116) $ — $ 46,943 Income taxes $ 1,479 $ 9,862 $ 273 $ — $ (2,082) $ — $ 9,532 Net income (loss) attributable to parent $ 14,507 $ 30,204 $ 734 $ — $ (8,034) $ — $ 37,411 Preferred stock dividends $ — $ — $ — $ — $ 461 $ — $ 461 Net income (loss) available to common shareholders $ 14,507 $ 30,204 $ 734 $ — $ (8,495) $ — $ 36,950 Capital expenditures for the year ended December 31, 2020 $ 6,439 $ 99 $ — $ — $ 77 $ — $ 6,615 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 23 – Quarterly Financial Data (Unaudited) Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2022 First quarter $ 23,262 $ 21,848 $ 3,576 $ 2,864 $ 0.24 $ 0.22 Second quarter 28,090 26,660 3,650 2,956 0.24 0.23 Third quarter 33,903 29,846 2,952 2,718 0.22 0.21 Fourth quarter 40,702 33,449 8,337 6,509 0.52 0.50 Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2021 First quarter $ 19,063 $ 17,505 $ 10,227 $ 8,085 $ 0.70 $ 0.66 Second quarter 20,833 19,055 10,836 9,247 0.79 0.73 Third quarter 20,484 19,096 14,838 11,828 1.00 0.92 Fourth quarter 23,049 21,503 12,675 9,959 0.83 0.77 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 25 – Acquisitions and Divestitures Warp Speed Holdings, LLC In March 2022, the Bank entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Warp Speed, pursuant to which the Bank agreed to purchase certain 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. In April 2022, we assumed the Bank's obligations under the Purchase Agreement. Effective October 1, 2022, we completed the purchase with $38.4 million in cash, plus 313,030 shares of newly-issued common stock of MVB, with an aggregate value of $9.6 million, based on the volume-weighted average closing price for shares of MVB common stock for the 20 trading days ending the day prior to closing. We account for our ownership in Warp Speed as an equity method investment, the balance of which was $49.4 million as of December 31, 2022. In accordance with ASC Topic 323 Investments - Equity Method and Joint Ventures , we have made an election to record our share of the results of operations of Warp Speed on a three-month lag. Accordingly, the transaction will not impact our consolidated statements of income until the first quarter of 2023. Integrated Financial Holdings, LLC In August 2022, we entered into the Merger Agreement with IFH. Pursuant to the Merger Agreement, IFH will merge with and into MVB, with MVB continuing as the surviving corporation. Under the terms of the merger agreement, IFH shareholders will receive 1.21 shares of MVB common stock for each share of IFH common stock. The value of the merger consideration to be paid by MVB in shares of MVB common stock upon the completion of the merger will be determined based on the closing price of MVB common stock on the closing date and the number of issued and outstanding shares of IFH common stock immediately prior to the closing. Following the merger, West Town Bank & Trust, a state bank chartered under the laws of Illinois and wholly-owned subsidiary of IFH, may, upon the direction of MVB, merge with and into the Bank, with the Bank as the surviving bank. In January 2023, the Merger Agreement was approved by the board of directors and shareholders of MVB and IFH. We are awaiting required regulatory approvals in order to execute the Merger. Flexia Payments, LLC In February 2021, the Bank entered into an agreement to acquire an 80.0% interest in Flexia. The Bank invested approximately $2.5 million for the 80.0% interest. At the time of acquisition, Flexia had no assets or liabilities. Soon after the Bank's investment, Flexia purchased a license for technology that allows users to access a reloadable account that combines a debit card account and casino gaming accounts into one card and to utilize them for non-cash transactions at participating casinos, for approximately $1.0 million for exclusive use in the United States and Canada. On the acquisition date, $0.5 million was recorded on the consolidated balance sheet for the 20.0% noncontrolling interest. Trabian Technology, Inc. In April 2021, the Bank entered into a Stock Purchase Agreement with Trabian, a leading software development firm servicing financial institutions. Pursuant to the agreement, the Bank invested approximately $1.6 million, including unregistered shares of MVB common stock, for the 80.0% interest. At the time of acquisition, Trabian had assets totaling $0.8 million and liabilities totaling $0.7 million. As a result of the transaction, the Bank recorded goodwill of $1.6 million and intangible assets related to Trabian's customer relationships and trade name totaling $0.6 million. On the acquisition date, $0.4 million was recorded on the consolidated balance sheet for the 20.0% noncontrolling interest. Sale of Southern Market, WV Banking Centers |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 26 – Subsequent Events In January 2023, we held a Special Meeting of Shareholders (the “Special Meeting”). At the Special Meeting, our shareholders approved an amendment to our articles of incorporation to effect an increase in the number of authorized shares of common stock from 20,000,000 to 40,000,000. Our articles of incorporation were amended to reflect the approval. On February 28, 2023, we completed the sale of the Bank's wholly-owned subsidiary, Chartwell, for a purchase price of $14.4 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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”) as presented through the FASB's Accounting Standards Codification ("ASC") the and with rules and interpretive guidance 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. 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 controlling interests in Flexia, Trabian and MVB Technology. We own an 80.0% interest in Flexia, an 80.8% interest in 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 interests of these entities 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 December 31, 2022, we hold three equity method investments. |
Reclassifications | 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short-term borrowing transactions. |
Investment Securities | Investment Securities Investment securities at the time of purchase are classified as one of the following: Available-for-Sale Securities - Includes debt that will be held for indefinite periods of time. These securities may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and yield of alternative investments. Such securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated income tax effect. The income tax effect is released when the securities are sold. Equity Securities - Includes equity securities that are adjusted to fair value on a monthly basis, with the change in value recorded directly on the income statement. We have elected to measure the equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for underlying transactions for identical or similar investments of new issues. The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Securities are periodically reviewed for other-than-temporary impairment. For debt securities, management considers whether the present value of future cash flows expected to be collected are less than the security’s amortized cost basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and our intent to sell the security or whether it is more likely than not that we would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, if we do not intend to sell the security, and it is more-likely-than-not that we will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. A decline in value that is considered to be other-than-temporary is recorded as a loss within noninterest income in the consolidated statement of income. The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of December 31, 2022 and 2021, the Bank holds $10.0 million and $1.8 million of stock, respectively, which is included in accrued interest receivable and other assets. The stock is bought from and sold to the FHLB based upon its $100 per share par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated by management for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (i) a significant decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (iii) the impact of legislative and regulatory changes on the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB’s regulatory capital ratios have improved in the most recent quarters, no issues of liquidity are evident, new shares of FHLB stock continue to trade at the $100 per share par value and the FHLB has repurchased shares of excess capital stock from its members during 2022 and 2021. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans are stated at the amount of unpaid principal reduced by an allowance for loan losses. Loans are considered non-accrual when scheduled principal or interest payments are 90 days past due. Interest income on loans is recognized on an accrual basis. The allowance for loan losses is maintained at a level deemed adequate to absorb probable losses inherent in the loan portfolio. We consistently apply a quarterly loan review process to continually evaluate loans for changes in credit risk. This process serves as the primary means by which we evaluate the adequacy of the allowance for loan losses, and is based upon periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are impaired. The general component covers all loans that are not impaired, and is based upon historical loss experience adjusted for qualitative factors. We allocate the allowance based on the factors described below, which conform to our loan classification policy. In reviewing risk within the loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial and commercial real estate secured loans; (iii) home equity loans; and (iv) consumer and other loans. Factors considered in this process include general loan terms, collateral and availability of historical data to support the analysis. Historical loss percentages for each loan category are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentages to get the adjusted factor to be applied to non-classified loans on a weighted basis, by risk grade. The following qualitative factors are analyzed: l Lending policies and procedures l Nature and volume of the portfolio l Experience and ability of lending management and staff l Volume and severity of problem credits l Quality of the loan review system l Conclusions of loan reviews, audits and exams l National, state, regional and local economic trends and business conditions l General economic conditions l Unemployment rates l Inflation / Consumer Price Index l Value of underlying collateral l Existence and effect of any credit concentrations l Consumer sentiment l Other external factors We analyze our loan portfolio each quarter to determine the appropriateness of our allowance for loan losses. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Special Assets Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or SARC. Loans are considered to be impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. We also separately evaluate individual consumer loans for impairment. Loans are identified individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow evaluation of the significance of the payment delays and the circumstances surrounding the loan and the borrower. Once the determination has been made that a loan is impaired, the amount of the impairment is measured using one of three valuation methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. We defer loan origination and commitment fees and direct loan origination costs and the net amount is amortized as an adjustment of the related loan’s yield. |
Troubled Debt Restructurings | Troubled Debt Restructurings A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The determination of whether a concession has been granted includes an evaluation of the debtor’s ability to access funds at a market rate for debt with similar risk characteristics and among other things, the significance of the modification relative to unpaid principal or collateral value of the debt and/or the significance of a delay in the timing of payments relative to the frequency of payments, original maturity date or the expected duration of the loan. The most common concessions granted generally include one or more modifications to the terms of the debt such as a reduction in the interest rate for the remaining life of the debt, an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or reduction of the unpaid principal or interest. All TDRs are considered impaired loans. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost, less accumulated depreciation, while land is carried at cost. Depreciation expense is computed by the straight-line-method based on the estimated useful lives of assets, which range from seven three |
Software Development | Software Development Software that we develop for internal use may be capitalized when costs are incurred after the preliminary project stage has ended and the application development stage begins. The application development stage includes designing, coding, installing and testing the software. Once the software has been implemented, costs for training and maintenance are expensed as incurred. Capitalized internal use software development costs are included in premises and equipment in the accompanying consolidated balance sheets. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance represents life insurance on the lives of certain of our employees who have provided positive consent allowing us to be the beneficiary of such policies. These policies are recorded at their cash surrender value or the amount that can be realized upon surrender of the policy. Income from these policies is not subject to income taxes and is recorded as noninterest income. |
Equity Method Investments | Equity Method Investments Investments in companies in which we have significant influence over the operating and financing decisions are accounted for using the equity method of accounting. Determining if we have significant influence requires judgement based on the facts and circumstances of each investment including level of ownership, legal structure and other qualitative factors which impact our ability to influence the investee's operations, and we review the facts and circumstances each reporting period to determine if we still have significant influence. Equity method investments are recorded initially at cost including costs to acquire the investment. These investments are included in the equity method investments line item on the consolidated balance sheets. We recognize our proportionate share of the investee's profits and losses in the equity method investments income line item. At the time of investment, we may make a one-time election to record our proportionate share of earnings of the investee on a lag of no more than three months. This election may be made on an investment by investment basis. We review equity method investments for impairment if there are events or changes in circumstances which indicate the carrying amount of the investment might not be recoverable. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the related reporting unit level. The goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired; however, if the carrying value of the reporting unit exceeds its fair value, an impairment charge must be recorded. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit. An impairment loss establishes a new basis in the goodwill and subsequent reversals of goodwill impairment losses are not permitted under applicable accounting guidance. For intangible assets subject to amortization, the recoverability test is performed when a triggering event occurs and an impairment loss is recognized if the carrying value of the intangible asset exceeds fair value and is not recoverable. The carrying value of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets deemed to have indefinite useful lives are not subject to amortization. An impairment loss is recognized if the carrying value of the intangible asset with an indefinite life exceeds its fair value. |
Interest Rate Swaps | Interest Rate SwapsWe entered into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking clients. We mitigate this risk by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value on our consolidated balance sheet. Fair value changes are recorded in noninterest income in our consolidated net income statement. |
Fair Value Hedge | Fair Value HedgeWe entered into an interest rate swap designated as a fair value hedge to mitigate the effect of changing interest rates on the fair values of certain designated fixed-rate loans and available for sale securities. This involves the receipt of variable amounts from a counterparty in exchange for us making fixed payments over the life of the agreements without the exchange of the underlying notional amount. The gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. We entered into a pay-fixed/receive-variable interest rate swap in January 2019 with a notional amount of $10.9 million and $26.4 million at December 31, 2022 and 2021, respectively, which was designated as a fair value hedge associated with our fixed-rate loan program and certain available for sale securities. |
Embedded Derivatives | Embedded DerivativesWe enter into various contracts through the normal course of business and occasionally a contract may include terms and conditions that create an embedded derivative. An embedded derivative may occur even though the purpose of the contract is not intended to be a derivative contract. Components of a contract should be assessed to determine if they meet the definition of a derivative. If it does, we must then assess whether the embedded derivative is clearly and closely related to its host instrument. If the derivative is not clearly and closely related to the host contract, the embedded derivative must be separated from the host instrument and accounted for as a separate derivative. |
Servicing Assets | Servicing Assets Servicing assets are recorded when the Bank sells loans and retains the servicing on those loans. On a monthly basis, we track the amount of loans that are sold with servicing retained. We determine the servicing rights value, which is then recorded as an asset and amortized over the period of estimated net servicing revenues. The servicing assets are evaluated for impairment quarterly. Servicing loans for others generally consists of collecting payments from borrowers, maintaining escrow accounts, remitting payments to third party investors and, when necessary, foreclosure processing. Serviced loans are not included in the consolidated balance sheets. At December 31, 2022 and 2021, the value of servicing assets was $1.6 million and $2.8 million, respectively, and is included in accrued interest and other assets in the consolidated balance sheets. We have the ability to sell the guaranteed portion of loans originated through the SBA's 7(a) program. All SBA loan sales are executed on a servicing retained basis. We are required to retain a minimum of 10% of the principal balance in accordance with SBA regulations. Any gain on sale recognized as income is the sum of the premium on the guaranteed portion of the loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan that is retained. The remaining unguaranteed portion of the loan is presented net of the discount, which is recognized as interest income over the underlying loan's remaining term, using the effective interest method. |
Foreclosed Assets Held for Resale | Foreclosed Assets Held for ResaleForeclosed assets held for resale acquired in satisfaction of mortgage obligations and in foreclosure proceedings are recorded at fair value less estimated selling costs at the time of foreclosure, establishing a new cost basis, with any valuation adjustments charged to the allowance for loan losses. In subsequent periods, foreclosed assets are recorded at the lower of cost or fair value less any costs to sell. Costs relating to improvement of the property are capitalized, while holding costs of the property are charged to other loan origination and maintenance expense in the period incurred. Subsequent declines in fair value and gains or losses on sale are recorded in other noninterest expense. |
Fair Value Measurements | Fair Value Measurements Accounting standards require that we adopt fair value measurement for financial assets and financial liabilities. This enhanced guidance for using fair value to measure assets and liabilities applies whenever other standards require or permit assets or liabilities to be measured at fair value. This guidance does not expand the use of fair value in any new circumstances. The following summarizes the methods and significant assumptions we use in estimating our fair value disclosures for financial instruments. Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available, but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Transfers of assets and liabilities between levels within the fair value hierarchy are recognized when an event or change in circumstances occurs. |
Revenue Recognition | Revenue Recognition We record revenue from contracts with customers in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. Our primary sources of revenue are derived from interest and fees earned on loans, investment securities and other financial instruments that are not within the scope of ASC 606. We have evaluated the nature of our contracts with customers and determined that our revenue from contracts with customers is appropriately disaggregated in our consolidated statement of income is not currently necessary. We generally fully satisfy our performance obligations on our contracts with customers as services are rendered and the transaction prices are typically fixed within each contract, charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying ASC 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Payment Card and Service Charge Income Payment card and service charge income are comprised of service charges on accounts and interchange and debit card transaction fees. Service charges on accounts consist of account analysis fees, monthly service fees, check orders and other account related fees. Our performance obligation for account analysis fees and monthly service fees is generally satisfied and the related revenue recognized, over the period in which the service is provided. Check orders and other account related fees are largely transactional based and therefore, our performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange and debit card transaction fees are primarily comprised of interchange fees earned whenever the Bank’s debit and credit cards are processed through card payment networks, such as Visa. The Bank’s performance obligation for debit card and interchange income is generally satisfied, and the related revenue recognized, on a transactional basis. Payment is typically received immediately or in the following month. We also enter into interchange arrangements with minimum commitment fees. Minimum commitment fees are recognized ratably, until such time that minimum commitment fees are exceeded or expected to be exceeded. Compliance and Consulting Income Compliance and consulting income is comprised revenue generated by Chartwell, Paladin Fraud and Trabian. Chartwell provides integrated regulatory compliance, state licensing, financial crimes prevention and enterprise risk management services that include consulting, outsourcing, testing and training solutions. Paladin Fraud provides an extensive and customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies and other vendors to help clients and partners defend against threats. Trabian provides consulting for the development of online and mobile banking platforms and digital products for Fintech companies. Chartwell, Paladin Fraud and Trabian account for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The services promised are then evaluated in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. Chartwell, Paladin Fraud and Trabian's services included in our contracts are distinct from one another. The transaction price for each contract is determined based upon the consideration expected to be received for the distinct services being provided under the contract. Revenue is recognized as performance obligations are satisfied and the customer obtains control of the goods or services provided. In determining when performance obligations are satisfied, factors considered include contract terms, payment terms and whether there is an alternative future use of the product or service. Consulting engagements may vary in length and scope, but will generally include the review and/or preparation of regulatory filings, business plans, financial models and other risk management services to customers within financial industries. Revenue from consulting services is recognized on a pro rata basis based upon actual labor hours completed as compared to budgeted labor hours for the deliverable. Other Operating Income Other operating income is primarily comprised of ATM fees, wire transfer fees, travelers check fees, revenue streams such as safe deposit box rental fees and other miscellaneous service charges. ATM fees, wire transfer fees and travelers check fees are primarily generated when a Bank’s cardholder uses a non-Bank ATM or a non-Bank cardholder uses a Bank ATM. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Bank determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks and other services. The Bank’s performance obligations for fees and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. The Bank’s performance obligation for the gains and losses on sales of other real estate owned is satisfied, and the related revenue recognized, after each sale of other real estate owned is closed. |
Stock-Based Compensation | Stock-Based CompensationCompensation cost is recognized for stock options and restricted stock units (“RSUs”) issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and minimum pension liability, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Income Taxes | Income Taxes The amount reflected as income taxes represents federal and state income taxes on financial statement income. Certain items of income and expense, primarily the provision for possible loan losses, allowance for losses on foreclosed assets held for resale, depreciation and accretion of discounts on investment securities are reported in different accounting periods for income tax purposes. We and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax bases of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period. Deferred tax assets and liabilities are the result of timing differences in recognition of revenue and expense for income tax and financial statement purposes. No deferred income tax valuation allowance is provided since it is more likely than not that realization of the deferred income tax asset will occur in future years. |
Operating Segments | Operating SegmentsAn operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. We have identified five reportable segments: CoRe banking; mortgage banking; professional services; Edge Ventures and the financial holding company. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from us, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (iii) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Recent Accounting Pronouncements and Developments | Recent Accounting Pronouncements and Developments 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. We have formed a cross-functional implementation team. This cross-functional team has completed testing the model and is finalizing 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 have completed the process of implementing a third-party vendor solution to assist us in the application of this standard. The adoption of this standard will 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. Upon adoption of ASU 2016-13, we currently expect to record a charge to retained earnings of $6.5 million to $7.0 million. 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. In December 2022, the FASB issued ASC 2022-06, Deferral of the Sunset date of Topic 848, which extends the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. 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. As of December 31, 2022, we had loans totaling $317.1 million that reference LIBOR which will be transitioned to the secured overnight financing rate ("SOFR") effective June 30, 2023. 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 receivables 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 they will have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
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. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Investment Securities Available-for-sale | Amortized cost and fair values of investment securities available-for-sale at December 31, 2022 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 51,436 $ 15 $ (6,637) $ 44,814 United States sponsored mortgage-backed securities 68,267 — (11,696) 56,571 United States treasury securities 130,689 48 (9,828) 120,909 Municipal securities 157,842 2,412 (21,618) 138,636 Corporate debt securities 10,570 10 (20) 10,560 Other debt securities 7,500 — — 7,500 Total debt securities 426,304 2,485 (49,799) 378,990 Other securities 824 — — 824 Total investment securities available-for-sale $ 427,128 $ 2,485 $ (49,799) $ 379,814 Amortized cost and fair values of investment securities available-for-sale at December 31, 2021 are summarized as follows: (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 summarizes amortized cost and fair values of debt securities by maturity: December 31, 2022 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 5,034 $ 5,033 After one year, but within five years 140,570 130,614 After five years, but within ten years 41,366 37,368 After ten years 239,334 205,975 Total $ 426,304 $ 378,990 |
Investments in an Unrealized Loss Position | The following table discloses the length of time that investments have remained in an unrealized loss position at December 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 (32) $ 21,287 $ (1,937) $ 19,423 $ (4,700) United States sponsored mortgage-backed securities (51) 6,953 (852) 49,618 (10,844) United States treasury securities (29) 11,936 (130) 102,092 (9,698) Municipal securities (173) 65,930 (7,507) 41,184 (14,111) Corporate debt securities (3) 2,380 (20) — — $ 108,486 $ (10,446) $ 212,317 $ (39,353) The following table discloses the length of time that investments have remained in an unrealized loss position at 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) Corporate debt securities (9) — — — — $ 203,065 $ (3,437) $ 36,616 $ (1,202) |
Realized Gain (Loss) on Investments | The following table summarizes the investment sales and related gains and losses in 2022, 2021 and 2020: (Dollars in thousands) 2022 2021 2020 Proceeds from sales of available-for-sale securities $ 60,635 $ 146,011 $ 54,023 Gains, gross 717 3,944 948 Losses, gross (67) (69) (34) Proceeds from sales of equity securities $ 1,356 $ 543 $ 4,622 Gains, gross 158 5 3,501 Losses, gross (214) — — Unrealized holding gains (losses) on equity securities $ (1,543) $ 3,776 $ 374 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Components of Loans in Consolidated Balance Sheet | The components of loans in the Consolidated Balance Sheet at December 31, were as follows: (Dollars in thousands) 2022 2021 Commercial: Business $ 851,072 $ 818,986 Real estate 632,839 561,718 Acquisition, development and construction 126,999 99,823 Total commercial $ 1,610,910 $ 1,480,527 Residential real estate 606,970 306,140 Home equity lines of credit 18,734 22,186 Consumer 131,566 43,919 Total loans, excluding PCI 2,368,180 1,852,772 Purchased credit impaired loans: Commercial: Business — 2,629 Real estate — 11,018 Acquisition, development and construction — 257 Total commercial — 13,904 Residential real estate 2,482 4,358 Consumer — 413 Total purchased credit impaired loans $ 2,482 $ 18,675 Total loans 2,370,662 1,871,447 Deferred loan origination costs and (fees), net 1,983 (1,609) Loans receivable $ 2,372,645 $ 1,869,838 |
Primary Segments of the Loan Portfolio | The following table summarizes the primary segments of the loan portfolio as of December 31, 2022 and 2021: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total December 31, 2022 Individually evaluated for impairment $ 10,451 $ 1,365 $ — $ 11,816 $ 2,603 $ 90 $ 1,351 $ 15,860 Collectively evaluated for impairment 840,621 631,474 126,999 1,599,094 606,849 18,644 130,215 2,354,802 Total loans $ 851,072 $ 632,839 $ 126,999 $ 1,610,910 $ 609,452 $ 18,734 $ 131,566 $ 2,370,662 December 31, 2021 Individually evaluated for impairment $ 12,954 $ 2,206 $ 1,392 $ 16,552 $ 8,765 $ 217 $ 432 $ 25,966 Collectively evaluated for impairment 808,661 570,530 98,688 1,477,879 301,733 21,969 43,900 1,845,481 Total loans $ 821,615 $ 572,736 $ 100,080 $ 1,494,431 $ 310,498 $ 22,186 $ 44,332 $ 1,871,447 |
Impaired Loans by Class | The following table presents impaired loans by class segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2022 and 2021: 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 December 31, 2022 Commercial: Business $ 3,436 $ 1,253 $ 7,015 $ 10,451 $ 15,324 Real estate 1,240 222 125 1,365 1,470 Acquisition, development and construction — — — — 1,415 Total commercial 4,676 1,475 7,140 11,816 18,209 Residential — — 2,603 2,603 2,671 Home equity lines of credit — — 90 90 94 Consumer 1,347 268 4 1,351 1,351 Total impaired loans $ 6,023 $ 1,743 $ 9,837 $ 15,860 $ 22,325 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 lines of credit — — 217 217 221 Consumer — — 259 259 259 Total impaired loans $ 3,069 $ 475 $ 19,386 $ 22,455 $ 25,845 |
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized | The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended: December 31, 2022 December 31, 2021 December 31, 2020 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial: Business $ 12,781 $ 8 $ 6 $ 7,701 $ — $ — $ 6,066 $ — $ — Real estate 1,479 57 59 2,051 60 43 3,057 97 104 Acquisition, development and construction 273 — — 344 — — 1,207 67 73 Total commercial 14,533 65 65 10,096 60 43 10,330 164 177 Residential 6,952 15 15 5,992 15 14 2,541 19 19 Home equity lines of credit 149 — — 81 — — 87 — — Consumer 915 — — 41 — — 7 — — Total $ 22,549 $ 80 $ 80 $ 16,210 $ 75 $ 57 $ 12,965 $ 183 $ 196 |
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories | The following table represents the classes of the 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 December 31, 2022 and 2021: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2022 Commercial: Business $ 830,319 $ 5,963 $ 12,103 $ 2,687 $ 851,072 Real estate 592,997 18,883 20,600 359 632,839 Acquisition, development and construction 120,788 5,277 934 126,999 Total commercial 1,544,104 30,123 33,637 3,046 1,610,910 Residential 605,513 760 1,556 1,623 609,452 Home equity lines of credit 18,269 375 90 — 18,734 Consumer 131,562 — 4 — 131,566 Total loans $ 2,299,448 $ 31,258 $ 35,287 $ 4,669 $ 2,370,662 December 31, 2021 Commercial: Business $ 789,101 $ 12,246 $ 18,143 $ 2,125 $ 821,615 Real estate 526,851 12,598 31,293 1,994 572,736 Acquisition, development and construction 89,893 4,960 4,163 1,064 100,080 Total commercial 1,405,845 29,804 53,599 5,183 1,494,431 Residential 299,291 899 9,815 493 310,498 Home equity lines of credit 21,582 387 191 26 22,186 Consumer 43,519 24 259 530 44,332 Total loans $ 1,770,237 $ 31,114 $ 63,864 $ 6,232 $ 1,871,447 |
Classes of the Loan Portfolio Summarized by Aging Categories | The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2022 and 2021: (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 December 31, 2022 Commercial: Business $ 850,112 $ — $ 960 $ — $ 960 $ 851,072 $ 7,528 $ — Real estate 632,839 — — — — 632,839 — — Acquisition, development and construction 126,999 — — — — 126,999 — — Total commercial 1,609,950 — 960 — 960 1,610,910 7,528 — Residential 606,554 1,820 1,078 — 2,898 609,452 2,196 — Home equity lines of credit 18,131 603 — — 603 18,734 90 — Consumer 120,504 6,848 2,867 1,347 11,062 131,566 1,351 — Total loans $ 2,355,139 $ 9,271 $ 4,905 $ 1,347 $ 15,523 $ 2,370,662 $ 11,165 $ — December 31, 2021 Commercial: Business $ 816,638 $ 1,718 $ 11 $ 3,248 $ 4,977 $ 821,615 $ 8,261 $ — Real estate 569,792 396 461 2,087 2,944 572,736 192 — Acquisition, development and construction 98,781 67 412 820 1,299 100,080 1,392 — Total commercial 1,485,211 2,181 884 6,155 9,220 1,494,431 9,845 — Residential 303,940 3,620 285 2,653 6,558 310,498 7,636 — Home equity lines of credit 21,974 — 119 93 212 22,186 217 — Consumer 42,231 1,211 461 429 2,101 44,332 259 — Total loans $ 1,853,356 $ 7,012 $ 1,749 $ 9,330 $ 18,091 $ 1,871,447 $ 17,957 $ — |
Allowance Activity | The following tables summarize the activity of 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 years ending December 31, 2022, 2021 and 2020: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Charge-offs (2,858) — — (2,858) (84) — (12,241) (15,183) Recoveries 56 127 — 183 — 7 6,370 6,560 Provision (release) 3,546 486 82 4,114 1,472 (4) 8,612 14,194 ALL balance at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Individually evaluated for impairment $ 1,253 $ 222 $ — $ 1,475 $ — $ — $ 268 $ 1,743 Collectively evaluated for impairment $ 7,518 $ 5,482 $ 1,064 $ 14,064 $ 2,880 $ 131 $ 5,019 $ 22,094 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Charge-offs (1,284) (83) — (1,367) (5) — (247) (1,619) Recoveries 231 — — 231 — 24 61 316 Provision (release) (3,113) (3,905) (1,779) (8,797) 35 (194) 2,681 (6,275) ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Individually evaluated for impairment $ 232 $ 243 $ — $ 475 $ — $ — $ — $ 475 Collectively evaluated for impairment $ 7,795 $ 4,848 $ 982 $ 13,625 $ 1,492 $ 128 $ 2,546 $ 17,791 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL balance at December 31, 2019 $ 6,197 $ 2,988 $ 913 $ 10,098 $ 1,272 $ 327 $ 78 $ 11,775 Charge-offs (1,909) (23) — (1,932) (235) (23) — (2,190) Recoveries 15 7 — 22 — 9 3 34 Provision (release) 7,890 6,107 1,848 15,845 779 (15) (30) 16,579 Allowance contributed with mortgage combination transaction — — — — (354) — — (354) ALL balance at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Individually evaluated for impairment $ 1,034 $ 262 $ — $ 1,296 $ — $ — $ — $ 1,296 Collectively evaluated for impairment $ 11,159 $ 8,817 $ 2,761 $ 22,737 $ 1,462 $ 298 $ 51 $ 24,548 |
Loans Identified as Troubled Debt Restructuring | The following table presents details related to loans identified as TDRs during the year ended December 31, 2021: December 31, 2021 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial: Business 2 $ 5,200 $ 4,836 Real estate — — — Total commercial 2 5,200 4,836 Residential — — — Total 2 $ 5,200 $ 4,836 1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table presents the components of premises and equipment at December 31,: (Dollars in thousands) 2022 2021 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,642 16,841 Software 6,019 4,176 Construction in progress 508 531 Leasehold improvements 2,836 2,895 43,863 41,301 Accumulated depreciation (20,210) (16,249) Premises and equipment, net $ 23,653 $ 25,052 |
Summary of Lease Cost | The following shows lease costs for the years ended: (Dollars in thousands) December 31, 2022 December 31, 2021 Amortization of right-of-use assets, finance leases $ 57 $ 59 Interest on lease liabilities, finance leases — 2 Operating lease cost 1,781 1,966 Short-term lease cost 32 5 Variable lease cost 38 38 Total lease cost $ 1,908 $ 2,070 |
Summary of Operating Lease Liability | For operating leases with initial or remaining terms of one year or more as of December 31, 2022, the following table presents future minimum payments for the twelve month periods ended December 31: (Dollars in thousands) Operating Leases 2023 $ 1,655 2024 1,579 2025 1,576 2026 1,584 2027 1,625 2028 and thereafter 10,111 Total future minimum lease payments $ 18,130 Less: Amounts representing interest (3,120) Present value of net future minimum lease payments $ 15,010 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Income Statement Information for Equity Method Investments | The following table provides summarized income statement information for ICM for the years ended December 31, 2022 and 2021: December 31, (Dollars in thousands) 2022 2021 Total revenues $ 67,207 $ 153,549 Net income 343 41,381 Gain on sale of loans 44,921 150,896 Volume of loans sold 2,325,709 5,326,757 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits at December 31, were as follows: (Dollars in thousands) 2022 2021 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,231,544 $ 1,120,433 Interest-bearing demand 720,074 651,016 Savings and money markets 284,447 510,068 Time deposits, including CDs and IRAs 334,417 96,088 Total deposits $ 2,570,482 $ 2,377,605 Time deposits that meet or exceed the FDIC insurance limit $ 4,386 $ 9,573 |
Maturities of Time Deposits | Maturities of time deposits at December 31, 2022 were as follows (dollars in thousands): 2023 $ 263,254 2024 64,010 2025 3,819 2026 687 2027 2,394 Thereafter 253 Total $ 334,417 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Information Related to Short-term Borrowings | Information related to short-term borrowings is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 102,333 $ — Average balance during the year 15,494 25,275 Maximum month-end balance 102,333 130,047 Weighted-average rate during the year 2.82 % 0.05 % Weighted-average rate at December 31 4.45 % — % |
Information Related to Repurchase Agreements | Information related to repurchase agreements is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 10,037 $ 11,385 Average balance during the year 10,987 10,821 Maximum month-end balance 12,680 11,398 Weighted-average rate during the year 0.05 % 0.12 % Weighted-average rate at December 31 0.06 % 0.05 % |
Information Related to Subordinated Debt | Information related to subordinated debt is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 73,286 $ 73,030 Average balance during the year 73,159 51,149 Maximum month-end balance 73,286 73,030 Weighted-average rate during the year 4.20 % 4.28 % Weighted-average rate at December 31 3.97 % 3.71 % |
Information Related to Secured Borrowings | Information related to senior term loan is summarized as follows: (Dollars in thousands) 2022 2021 Balance at end of year $ 9,765 — Average balance during the year 2,328 — Maximum month-end balance 9,886 — Weighted-average rate during the year 7.00 % — Rate at December 31 7.44 % — |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Amounts of Commitments | Total contractual amounts of the commitments as of December 31, were as follows: (Dollars in thousands) 2022 2021 Available on lines of credit $ 495,618 $ 384,923 Stand-by letters of credit 17,153 23,600 Other loan commitments 14,901 15,792 $ 527,672 $ 424,315 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provisions for income taxes for the years ended December 31, were as follows: (Dollars in thousands) 2022 2021 2020 Current: Federal $ 6,607 $ 3,332 $ 10,899 State 1,152 421 2,019 $ 7,759 $ 3,753 $ 12,918 Deferred: Federal $ (3,056) $ 5,159 $ (3,183) State (575) 970 (203) (3,631) 6,129 (3,386) Income tax expense $ 4,128 $ 9,882 $ 9,532 |
Reconciliation of Income Taxes at Federal Statutory Rates to Recorded Income Taxes | Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31: 2022 2021 2020 (Dollars in thousands) Amount % Amount % Amount % Income tax at federal statutory rate $ 3,889 21.0 % $ 10,201 21.0 % $ 9,858 21.0 % Tax effect of: State income taxes, net of federal income taxes 456 2.5 % 1,099 2.2 % 1,435 3.1 % Tax exempt earnings (1,596) (8.6) % (1,460) (3.0) % (1,381) (3.0) % Other 1,379 7.4 % 42 0.1 % (380) (0.8) % $ 4,128 22.3 % $ 9,882 20.3 % $ 9,532 20.3 % |
Deferred Income Tax Assets and (Liabilities) | Deferred income tax assets and liabilities were comprised of the following at December 31: (Dollars in thousands) 2022 2021 Gross deferred tax assets: Allowance for loan losses $ 5,849 $ 4,393 Minimum pension liability 991 1,245 Stock-based compensation 1,097 1,140 SERP 317 298 Unrealized loss on securities available-for-sale 11,024 — Lease liabilities 3,611 4,370 Other 364 249 Total gross deferred tax assets 23,253 11,695 Gross deferred tax liabilities: Depreciation (1,726) (1,556) Pension (1,062) (1,077) Unrealized gain on securities available-for-sale (80) (45) Holding gain on equity securities (3,969) (4,358) Equity method investment (2,220) (4,086) Goodwill (110) (70) Right-of-use assets (3,383) (4,141) Other (264) (288) Total gross deferred tax liabilities (12,814) (15,621) Net deferred tax assets (liabilities) $ 10,439 $ (3,926) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Loan Activity | Set forth below is a summary of the related loan activity. (Dollars in thousands) Balance at Beginning of Year Borrowings, net of participations Executive Officer and Director Retirements Repayments Balance at End of Year December 31, 2022 $ 27,606 $ 221,825 $ (998) $ (215,000) $ 33,433 December 31, 2021 $ 27,423 $ 4,373 $ (996) $ (3,194) $ 27,606 |
Pension Plan (Tables)
Pension Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan Activity | Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2022 and 2021 is as follows: (Dollars in thousands) 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 12,230 $ 12,715 Interest cost 341 313 Actuarial loss 160 143 Assumption changes (3,584) (649) Benefits paid (318) (292) Benefit obligation at end of year $ 8,829 $ 12,230 Change in plan assets: Fair value of plan assets at beginning of year $ 11,591 $ 7,096 Actual return (loss) on plan assets (1,990) 952 Employer contribution — 3,835 Benefits paid (318) (292) Fair value of plan assets at end of year $ 9,283 $ 11,591 Funded status $ 454 $ (639) Unrecognized net actuarial loss 4,120 5,314 Prepaid pension cost recognized $ 4,574 $ 4,675 Accumulated benefit obligation $ 8,829 $ 12,230 |
Weighted Average Assumptions Used | At December 31, 2022, 2021 and 2020, the weighted-average assumptions used to determine the benefit obligation are as follows: 2022 2021 2020 Discount rate 5.23 % 2.83 % 2.50 % Rate of compensation increase n/a n/a n/a For the years December 31, 2022, 2021 and 2020, the weighted-average assumptions used to determine net periodic pension cost are as follows: 2022 2021 2020 Discount rate 5.23 % 2.83 % 2.50 % Expected long-term rate of return on plan assets 6.00 % 6.75 % 6.75 % Rate of compensation increase n/a n/a n/a |
Components of Net Periodic Pension Cost | The components of net periodic pension cost are as follows: (Dollars in thousands) 2022 2021 2020 Interest cost $ 341 $ 313 $ 365 Expected return on plan assets (669) (689) (438) Amortization of net actuarial loss 429 507 420 Net periodic pension cost $ 101 $ 131 $ 347 |
Pension Plan Asset Allocations | Our pension plan asset allocations at December 31, 2022 and 2021 are as follows: 2022 2021 Plan Assets Cash 7 % 3 % Fixed income 28 % 25 % Alternative investments 13 % 29 % Domestic equities 26 % 25 % Foreign equities 22 % 18 % Real estate investment trusts 4 % — % Total 100 % 100 % |
Plan Assets at Fair Value by Level | The following table sets forth by level within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements , the Pension Plan’s assets at fair value as of December 31, 2022: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 650 $ — $ — $ 650 Fixed income 2,599 — — 2,599 Alternative investments — — 1,207 1,207 Domestic equities 2,414 — — 2,414 Foreign equities 2,042 — — 2,042 Total $ 7,705 $ — $ 1,207 $ 8,912 Investments reported at Net Asset Value 1 371 Total assets at fair value $ 9,283 1 Investments reported at Net Asset Value include Real Estate investment trusts. The following table sets forth by level, within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2021: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 348 $ — $ — $ 348 Fixed income 2,898 — — 2,898 Alternative investments — — 3,361 3,361 Domestic equities 2,898 — — 2,898 Foreign equities 2,086 — — 2,086 Total assets at fair value $ 8,230 $ — $ 3,361 $ 11,591 |
Estimate of Plan Contributions in Future Years | The following table includes our best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: (Dollars in thousands) Cash Flow Contributions for the period of January 1, 2023 through December 31, 2023 $ — Estimated future benefit payments reflecting expected future service 2023 $ 409 2024 $ 433 2025 $ 462 2026 $ 536 2027 $ 542 2028 through 2032 $ 2,801 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill and Other Intangibles | The table below summarizes the changes in carrying amounts of goodwill and other intangibles, including core deposit intangibles, for the periods presented: Intangibles (Dollars in thousands) Goodwill Gross Accumulated Amortization Net Balance at January 1, 2022 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Amortization expense — — (685) (685) Balance at December 31, 2022 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Balance at January 1, 2021 $ 2,350 $ 3,941 $ (1,541) $ 2,400 Goodwill and intangibles resulting from Trabian acquisition 1,638 600 — 600 Reduction of intangibles from sale of branches to Summit — (721) 721 — Amortization expense — — (684) (684) Balance at December 31, 2021 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Balance at January 1, 2020 $ 19,630 $ 4,226 $ (753) $ 3,473 Reduction of goodwill and intangibles from sale of branches to Summit (1,598) (845) 441 (404) Intangibles resulting from First State acquisition — 560 — 560 Reduction of goodwill from ICM transaction (16,882) — — — Goodwill resulting from Paladin acquisition 1,200 — — — Amortization expense — — (1,229) (1,229) Balance at December 31, 2020 $ 2,350 $ 3,941 $ (1,541) $ 2,400 |
Estimated Amortization Expense for Other Intangible Assets | The table below presents estimated amortization expense for our other intangible assets (dollars in thousands): 2023 $ 592 2024 321 2025 100 2026 87 2027 87 Thereafter 444 $ 1,631 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The amount that we recognized in stock-based compensation expense related to the issuance of stock options and RSUs is presented in the following table: (Dollars in thousands) 2022 2021 2020 Stock Options $ 501 $ 832 $ 950 RSUs 2,299 1,802 1,403 Total stock-based compensation expense $ 2,800 $ 2,634 $ 2,353 |
Stock Option Activity | The following summarizes stock options as of and for the year ended December 31, 2022: 2022 Number of Shares Weighted-Average Exercise Price Outstanding at beginning of year 1,114,200 $ 15.86 Granted 14,350 39.15 Exercised 160,527 12.99 Forfeited 24,930 22.55 Expired 550 14.71 Outstanding at end of year 942,543 $ 16.53 Exercisable at end of year 782,116 $ 15.36 Weighted-average fair value of options granted during 2022 $ 14.94 Weighted-average fair value of options granted during 2021 $ 10.61 Weighted-average fair value of options granted during 2020 $ 4.48 |
Schedule of Stock Option Valuation Assumptions | The fair value for the options was estimated at the grant date using a Black-Scholes option-pricing model with the following inputs: 2022 2021 2020 Average risk-free interest rates 2.23 % 1.27 % 0.66 % Weighted-average life (years) 7 7 7 Expected volatility 41.2 % 41.2 % 30.9 % Expected dividend yield 1.58 % 1.08 % 2.20 % |
Outstanding and Exercisable Options Information | The following summarizes information related to the total outstanding and exercisable stock options at December 31, 2022: Options Outstanding Options Exercisable Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life 942,543 $16.53 $5.7 4.38 782,116 $15.36 $5.3 3.87 |
Summary of RSUs | A summary of the activity for our RSUs for the period indicated is presented in the following table: 2022 Shares Weighted-Average Grant Date Fair Value Balance at beginning of year 241,906 $ 21.46 Granted 95,723 38.04 Vested (75,354) 21.62 Forfeited (14,718) 26.16 Balance at end of year 247,557 $ 26.39 Weighted-average fair value of RSUs granted during 2022 $ 38.04 Weighted-average fair value of RSUs granted during 2021 $ 40.95 Weighted-average fair value of RSUs granted during 2020 $ 13.08 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | For the years ended December 31, (Dollars in thousands except shares and per share data) 2022 2021 2020 Numerator for earnings per share: Net Income $ 14,387 $ 38,696 $ 37,411 Net loss attributable to noncontrolling interest 660 425 — Dividends on preferred stock — (35) (461) Net income available to common shareholders $ 15,047 $ 39,086 $ 36,950 Denominator: Weighted-average shares outstanding - basic 12,279,462 11,778,557 11,821,574 Effect of dilutive stock options and restricted stock units 591,272 835,063 266,532 Weighted-average shares outstanding - diluted 12,870,734 12,613,620 12,088,106 Earnings per common share - basic $ 1.23 $ 3.32 $ 3.13 Earnings per common share - diluted $ 1.17 $ 3.10 $ 3.06 Securities not included in the computation of diluted EPS because the effect would be antidilutive 113,427 93,895 646,168 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Actual Capital Amounts and Ratios | Our actual capital amounts and ratio is presented in the table below. In April 2020, under the CARES Act, the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold increased to 8.5% in 2021 and has returned to 9% in 2022. The Bank elected to begin using the CBLR for the first quarter of 2021 and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following: ● Total assets of less than $10 billion; ● Total trading assets plus liabilities of 5% or less of consolidated assets; ● Total off-balance sheet exposures of 25% or less of consolidated assets; ● Cannot be an advanced approaches banking organization; and ● Leverage ratio greater than 9% or temporarily prescribed threshold established in response to COVID-19. Actual Minimum Capital Requirement Minimum to be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Community Bank leverage ratio Subsidiary bank $ 307,936 9.8% $ 250,675 8.0% $ 282,010 9.0% As of December 31, 2021 Community Bank leverage ratio Subsidiary bank $ 321,282 11.6% $ 208,344 7.5% $ 236,123 8.5% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of financial instruments are summarized as follows: Fair Value Measurements at: (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) December 31, 2022 Financial Assets: Cash and cash equivalents $ 40,280 $ 40,280 $ 40,280 $ — $ — Securities available-for-sale 379,814 379,814 — 344,471 35,343 Equity securities 38,744 38,744 5,382 — 33,362 Loans held-for-sale 23,126 24,898 — 24,898 — Loans receivable, net 2,348,808 2,285,427 — — 2,285,427 Servicing assets 0 1,616 1,634 — — 1,634 Interest rate swap 8,427 8,427 — 8,427 — Accrued interest receivable 12,617 12,617 — 2,778 9,839 Bank-owned life insurance 43,239 43,239 — 43,239 — Embedded derivative 787 787 — — 787 Financial Liabilities: Deposits $ 2,570,482 $ 2,226,037 $ — $ 2,226,037 $ — Repurchase Agreements 10,037 10,037 — 10,037 — Fair value hedge 572 572 — 572 — Interest rate swap 8,427 8,427 — 8,427 — Accrued interest payable 2,558 2,558 — 2,558 — FHLB and other borrowings 102,333 102,006 — 102,006 — Senior term loan 9,765 9,765 — 9,765 — Subordinated Debt 73,286 64,330 — 64,330 — 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 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 — Fair value hedge 807 807 — 807 Interest rate swap 6,702 6,702 — 6,702 — Accrued interest payable 690 690 — 690 — Subordinated debt 73,030 74,774 — 74,774 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair value of assets and liabilities | |
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets as of the periods shown: (Dollars in thousands) Municipal Securities Embedded Derivatives Total Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized gains included in earnings 9 — 9 Purchase of securities 1,048 — 1,048 Maturities/calls (3,207) — (3,207) Unrealized loss included in other comprehensive loss (4,270) — (4,270) Host contract executed $ — $ 787 $ 787 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Balance at December 31, 2020 $ 43,679 $ — $ 43,679 Purchase of securities 3,862 — 3,862 Maturities/calls (5,214) — (5,214) Unrealized loss included in other comprehensive income (564) — (564) Balance at December 31, 2021 $ 41,763 $ — $ 41,763 |
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value | The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2022 and 2021: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 Nonrecurring measurements: Impaired loans $ 14,117 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 1,194 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost minus impairment 0% Equity securities $ 33,362 Net asset value Cost minus impairment 0% Recurring measurements: Municipal securities 5 $ 35,343 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded Derivatives $ 787 Monte Carlo pricing model Deferred payment $0 - $51.9 million Volatility 58% Term 5 years Risk free rate 3.95% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range 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 0% Equity securities $ 32,155 Net asset value Cost minus impairment 0% 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 which 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 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 the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2022 and 2021 by level within the fair value hierarchy: December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 44,814 $ — $ 44,814 United States sponsored mortgage-backed securities — 56,571 — 56,571 United States treasury securities — 120,909 — 120,909 Municipal securities — 103,293 35,343 138,636 Corporate debt securities — 10,560 — 10,560 Other securities — 824 — 824 Equity securities 5,382 — — 5,382 Loans held-for-sale — 24,898 — 24,898 Interest rate swap — 8,427 — 8,427 Bank-owned life insurance — 43,239 — 43,239 Embedded derivative — — 787 787 Liabilities: Interest rate swap — 8,427 — 8,427 Fair value hedge — 572 — 572 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 United States treasury securities — 110,389 — 110,389 Municipal securities — 133,249 41,763 175,012 Corporate debt securities — 11,142 — 11,142 Other securities — 878 — 878 Equity securities 247 — — 247 Interest rate swap — 6,702 — 6,702 Fair value hedge — 1,552 — 1,552 Bank-owned life insurance — 42,257 — 42,257 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 | Assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021 are included in the table below: December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,117 $ 14,117 Other real estate owned — — 1,194 1,194 Other debt securities — — 7,500 7,500 Equity securities — — 33,362 33,362 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 Other debt securities — — 7,500 7,500 Equity securities — — 32,155 32,155 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Income | The following tables present the components of accumulated other comprehensive income (“AOCI”) for the years ended December 31: (Dollars in thousands) 2022 2021 2020 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Consolidated Statement of Income Line Item Available-for-sale securities Unrealized holding gain $ 650 $ 3,875 $ 914 Gain on sale of available-for-sale securities 650 3,875 914 Total before tax (152) (908) (214) Income tax expense 498 2,967 700 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (429) (507) (420) Salaries and employee benefits (429) (507) (420) Total before tax 103 119 98 Income tax benefit (326) (388) (322) Net of tax Investment hedge Carrying value adjustment 83 (862) 473 Interest on investment securities 83 (862) 473 Total before tax (21) 233 (128) Income tax benefit (expense) 62 (629) 345 Net of tax Total reclassifications $ 234 $ 1,950 $ 723 |
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 January 1, 2022 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (34,478) 614 — (33,864) Amounts reclassified from AOCI (498) 326 (62) (234) Net current period OCI (34,976) 940 (62) (34,098) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Balance at January 1, 2021 $ 7,586 $ (5,047) $ (313) $ 2,226 Other comprehensive income (loss) before reclassification (4,472) 590 — (3,882) Amounts reclassified from AOCI (2,967) 388 629 (1,950) Net current period OCI (7,439) 978 629 (5,832) Balance at December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets December 31, (Dollars in thousands) 2022 2021 Assets Cash $ 31,085 $ 27,463 Investment in subsidiaries 277,173 322,002 Debt and equity securities 4,904 — Equity method investments 50,976 — Other assets 11,033 13,715 Total assets $ 375,171 $ 363,180 Liabilities and stockholders’ equity Other liabilities $ 31,036 $ 15,822 Senior term loan 9,765 — Subordinated debt 73,286 73,030 Total liabilities 114,087 88,852 Total stockholders’ equity 261,084 274,328 Total liabilities and stockholders’ equity $ 375,171 $ 363,180 |
Condensed Statements of Income | Condensed Statements of Income Year ended December 31, (Dollars in thousands) 2022 2021 2020 Income, dividends from the Bank $ 50,985 $ 19,165 $ 6,688 Operating expenses 27,774 22,458 16,804 Income (loss), before income taxes 23,211 (3,293) (10,116) Income tax benefit (3,450) (2,090) (2,082) Net income (loss) 26,661 (1,203) (8,034) Equity in undistributed income earnings of subsidiaries (11,614) 40,324 45,445 Net income $ 15,047 $ 39,121 $ 37,411 Preferred dividends $ — $ 35 $ 461 Net income available to common shareholders $ 15,047 $ 39,086 $ 36,950 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in thousands) 2022 2021 2020 OPERATING ACTIVITIES Net income $ 15,047 $ 39,121 $ 37,411 Equity in undistributed earnings of subsidiaries 11,614 (40,324) (45,445) Stock-based compensation 3,217 3,208 2,278 Depreciation and amortization 269 175 12 Other assets (45,406) (6,849) (2,101) Other liabilities 16,358 11,215 1,755 Net cash from operating activities 1,099 6,546 (6,090) INVESTING ACTIVITIES Investment in subsidiaries (240) (15,871) (3,713) Net cash from investing activities (240) (15,871) (3,713) FINANCING ACTIVITIES Proceeds from stock issuance — — 240 Issuance of senior term loan, net of issuance costs 9,877 — — Issuance of subordinated debt, net of issuance costs — 29,448 40,000 Common stock repurchased — — (15,657) Preferred stock redemption — (7,334) — Common stock options exercised 1,399 4,930 4,464 Withholding cash issued in lieu of restricted stock — (249) — Issuance of subsidiary membership units — 500 — Principal payments on senior term loan (125) — — Stock purchase from noncontrolling interest (33) — — Cash dividends paid on common stock (8,355) (6,038) (4,275) Cash dividends paid on preferred stock — (35) (461) Net cash from financing activities 2,763 21,222 24,311 Net change in cash 3,622 11,897 14,508 Cash at beginning of period 27,463 15,566 1,058 Cash at end of period $ 31,085 $ 27,463 $ 15,566 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2022, 2021 and 2020 are as follows: 2022 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 125,426 $ 429 $ — $ — $ 146 $ (44) $ 125,957 Interest expense $ 10,920 $ — $ 39 $ 5 $ 3,234 $ (44) $ 14,154 Net interest income (expense) $ 114,506 $ 429 $ (39) $ (5) $ (3,088) $ — $ 111,803 Provision for loan losses $ 14,194 $ — $ — $ — $ — $ — $ 14,194 Net interest income (expense) after provision for loan losses $ 100,312 $ 429 $ (39) $ (5) $ (3,088) $ — $ 97,609 Noninterest income $ 22,673 $ 37 $ 22,812 $ 459 $ 10,576 $ (18,263) $ 38,294 Noninterest Expenses: Salaries and employee benefits $ 36,960 $ 8 $ 15,276 $ 3,336 $ 16,582 $ — $ 72,162 Other expenses $ 44,873 $ 142 $ 5,233 $ 5,192 $ 8,049 $ (18,263) $ 45,226 Total noninterest expenses $ 81,833 $ 150 $ 20,509 $ 8,528 $ 24,631 $ (18,263) $ 117,388 Income (loss) before income taxes $ 41,152 $ 316 $ 2,264 $ (8,074) $ (17,143) $ — $ 18,515 Income taxes $ 8,882 $ 77 $ 567 $ (1,926) $ (3,472) $ — $ 4,128 Net income (loss) $ 32,270 $ 239 $ 1,697 $ (6,148) $ (13,671) $ — $ 14,387 Net loss attributable to noncontrolling interest $ — $ — $ 207 $ 453 $ — $ — $ 660 Net income (loss) available to common shareholders $ 32,270 $ 239 $ 1,904 $ (5,695) $ (13,671) $ — $ 15,047 Capital expenditures for the year ended December 31, 2022 $ 400 $ — $ 26 $ 2,202 $ 413 $ — $ 3,041 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 14,817 12,258 $ 375,171 $ (382,119) $ 3,068,850 Goodwill as of December 31, 2022 $ — $ — 3,988 $ — $ — $ — $ 3,988 2021 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 83,023 $ 411 $ (8) $ — $ 15 $ (12) $ 83,429 Interest expense $ 4,078 $ — $ 16 $ — $ 2,188 $ (12) $ 6,270 Net interest income (expense) $ 78,945 $ 411 $ (24) $ — $ (2,173) $ — $ 77,159 Provision for loan losses $ (6,274) $ (1) $ — $ — $ — $ — $ (6,275) Net interest income (expense) after provision for loan losses $ 85,219 $ 412 $ (24) $ — $ (2,173) $ — $ 83,434 Noninterest income $ 33,179 $ 16,342 $ 14,931 $ 71 $ 11,103 $ (13,030) $ 62,596 Noninterest Expenses: Salaries and employee benefits $ 33,595 $ — $ 10,949 $ 1,962 $ 13,704 $ — $ 60,210 Other expenses $ 37,033 $ 16 $ 4,095 $ 2,555 $ 6,573 $ (13,030) $ 37,242 Total noninterest expenses $ 70,628 $ 16 $ 15,044 $ 4,517 $ 20,277 $ (13,030) $ 97,452 Income (loss) before income taxes $ 47,770 $ 16,738 $ (137) $ (4,446) $ (11,347) $ — $ 48,578 Income taxes $ 9,154 $ 4,068 $ (105) $ (1,144) $ (2,091) $ — $ 9,882 Net income (loss) $ 38,616 $ 12,670 $ (32) $ (3,302) $ (9,256) $ — $ 38,696 Net loss attributable to noncontrolling interest $ — $ — $ 210 $ 215 $ — $ — $ 425 Net income (loss) attributable to parent $ 38,616 $ 12,670 $ 178 $ (3,087) $ (9,256) $ — $ 39,121 Preferred stock dividends $ — $ — $ — $ — $ 35 $ — $ 35 Net income (loss) available to common shareholders $ 38,616 $ 12,670 $ 178 $ (3,087) $ (9,291) $ — $ 39,086 Capital expenditures for the year ended December 31, 2021 $ 2,590 $ — $ 2,731 $ — $ 43 $ — $ 5,364 Total assets as of December 31, 2021 $ 2,804,840 $ 50,202 $ 13,210 $ 9,914 $ 363,971 $ (449,688) $ 2,792,449 Goodwill as of December 31, 2021 $ — $ — $ 3,988 $ — $ — $ — $ 3,988 2020 (Dollars in thousands) CoRe Banking Mortgage Banking Professional Services Edge Ventures Financial Holding Company Intercompany Eliminations Consolidated Interest income $ 75,812 $ 6,269 $ — $ — $ 3 $ (1,631) $ 80,453 Interest expense $ 10,400 $ 3,139 $ — $ — $ 261 $ (2,173) $ 11,627 Net interest income (expense) $ 65,412 $ 3,130 $ — $ — $ (258) $ 542 $ 68,826 Provision for loan losses $ 16,649 $ (70) $ — $ — $ — $ — $ 16,579 Net interest income (expense) after provision for loan losses $ 48,763 $ 3,200 $ — $ — $ (258) $ 542 $ 52,247 Noninterest income $ 24,420 $ 63,490 $ 5,909 $ — $ 6,685 $ (8,667) $ 91,837 Noninterest Expenses: Salaries and employee benefits $ 25,808 $ 21,550 $ 2,993 $ — $ 11,278 $ — $ 61,629 Other expenses $ 31,389 $ 5,074 $ 1,909 $ — $ 5,265 $ (8,125) $ 35,512 Total noninterest expenses $ 57,197 $ 26,624 $ 4,902 $ — $ 16,543 $ (8,125) $ 97,141 Income (loss) before income taxes $ 15,986 $ 40,066 $ 1,007 $ — $ (10,116) $ — $ 46,943 Income taxes $ 1,479 $ 9,862 $ 273 $ — $ (2,082) $ — $ 9,532 Net income (loss) attributable to parent $ 14,507 $ 30,204 $ 734 $ — $ (8,034) $ — $ 37,411 Preferred stock dividends $ — $ — $ — $ — $ 461 $ — $ 461 Net income (loss) available to common shareholders $ 14,507 $ 30,204 $ 734 $ — $ (8,495) $ — $ 36,950 Capital expenditures for the year ended December 31, 2020 $ 6,439 $ 99 $ — $ — $ 77 $ — $ 6,615 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2022 First quarter $ 23,262 $ 21,848 $ 3,576 $ 2,864 $ 0.24 $ 0.22 Second quarter 28,090 26,660 3,650 2,956 0.24 0.23 Third quarter 33,903 29,846 2,952 2,718 0.22 0.21 Fourth quarter 40,702 33,449 8,337 6,509 0.52 0.50 Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2021 First quarter $ 19,063 $ 17,505 $ 10,227 $ 8,085 $ 0.70 $ 0.66 Second quarter 20,833 19,055 10,836 9,247 0.79 0.73 Third quarter 20,484 19,096 14,838 11,828 1.00 0.92 Fourth quarter 23,049 21,503 12,675 9,959 0.83 0.77 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Other Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||
Oct. 01, 2022 USD ($) | Oct. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) segment investment valuationMethod $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | Jan. 01, 2023 USD ($) | Mar. 31, 2022 | Apr. 30, 2021 | Feb. 28, 2021 | |
Summary of Significant Accounting Policies [Line Items] | |||||||||
Common stock issued related to acquisitions | $ 9,579,000 | $ 600,000 | $ 240,000 | ||||||
Number of equity method investments | investment | 3 | ||||||||
Period past due for loans to be considered as delinquent | 90 days | ||||||||
Total valuation methods used on impaired loans | valuationMethod | 3 | ||||||||
Total loans serviced for others | $ 1,600,000 | 2,800,000 | |||||||
Other real estate | 1,200,000 | 2,300,000 | |||||||
Deferred income tax valuation allowance | 0 | ||||||||
Liability for uncertain tax positions | 0 | ||||||||
Unrecognized tax benefits | $ 0 | ||||||||
Number of reportable segments | segment | 5 | ||||||||
Expected charge to retained earnings | $ (144,911,000) | (138,219,000) | |||||||
Loans receivable | 2,372,645,000 | 1,869,838,000 | |||||||
LIBOR | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Loans receivable | $ 317,100,000 | ||||||||
Software | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 3 years | ||||||||
Minimum | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Forecast | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Expected charge to retained earnings | $ 6,500,000 | ||||||||
Minimum | Building | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 7 years | ||||||||
Minimum | Furniture, Fixtures and Equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 3 years | ||||||||
Maximum | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Forecast | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Expected charge to retained earnings | $ 7,000,000 | ||||||||
Maximum | Building | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 40 years | ||||||||
Maximum | Furniture, Fixtures and Equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 10 years | ||||||||
Subsidiary bank | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
FHLB stock | $ 10,000,000 | $ 1,800,000 | |||||||
FHLB stock par value (in dollars per share) | $ / shares | $ 100 | $ 100 | |||||||
MVB Technology | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 93.40% | ||||||||
MVB Technology | Edge Ventures | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 93.40% | ||||||||
Flexia | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 80% | 80% | |||||||
Flexia | Edge Ventures | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 80% | ||||||||
Trabian | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 80.80% | 80% | |||||||
Warp Speed Holdings LLC | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Ownership interest | 37.50% | ||||||||
Cash consideration | $ 38,400,000 | ||||||||
Common stock issued related to acquisitions (in shares) | shares | 313,030 | ||||||||
Consideration issued as equity | $ 9,600,000 | ||||||||
Number of trading days | 20 days | ||||||||
Common stock issued related to acquisitions | $ 9,580,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value hedge | ||
Derivative [Line Items] | ||
Notional amount | $ 10,900 | $ 26,400 |
Carrying Value | Interest rate swap | ||
Derivative [Line Items] | ||
Fair value of interest rate swap agreements | 8,427 | 6,702 |
Carrying Value | Fair value hedge | ||
Derivative [Line Items] | ||
Fair value of interest rate swap agreements | 1,552 | |
Fair value of interest rate swap hedge | $ 600 | $ 700 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Investment Securities Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | $ 427,128 | $ 421,272 |
Unrealized Gain | 2,485 | 4,833 |
Unrealized Loss | (49,799) | (4,639) |
Investment securities available-for-sale | 379,814 | 421,466 |
Total debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 426,304 | 420,394 |
Unrealized Gain | 2,485 | 4,833 |
Unrealized Loss | (49,799) | (4,639) |
Investment securities available-for-sale | 378,990 | 420,588 |
United States government agency securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 51,436 | 41,105 |
Unrealized Gain | 15 | 228 |
Unrealized Loss | (6,637) | (896) |
Investment securities available-for-sale | 44,814 | 40,437 |
United States sponsored mortgage-backed securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 68,267 | 77,519 |
Unrealized Gain | 0 | 222 |
Unrealized Loss | (11,696) | (1,633) |
Investment securities available-for-sale | 56,571 | 76,108 |
United States treasury securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 130,689 | 112,133 |
Unrealized Gain | 48 | 0 |
Unrealized Loss | (9,828) | (1,744) |
Investment securities available-for-sale | 120,909 | 110,389 |
Municipal securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 157,842 | 171,044 |
Unrealized Gain | 2,412 | 4,334 |
Unrealized Loss | (21,618) | (366) |
Investment securities available-for-sale | 138,636 | 175,012 |
Corporate debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 10,570 | 11,093 |
Unrealized Gain | 10 | 49 |
Unrealized Loss | (20) | 0 |
Investment securities available-for-sale | 10,560 | 11,142 |
Other debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 7,500 | 7,500 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Investment securities available-for-sale | 7,500 | 7,500 |
Other securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 824 | 878 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Investment securities available-for-sale | $ 824 | $ 878 |
Investment Securities - Summary
Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Amortized Cost | $ 427,128 | $ 421,272 |
Fair Value | ||
Fair Value | 379,814 | 421,466 |
Total debt securities | ||
Amortized Cost | ||
Within one year | 5,034 | |
After one year, but within five years | 140,570 | |
After five years, but within ten years | 41,366 | |
After ten years | 239,334 | |
Amortized Cost | 426,304 | 420,394 |
Fair Value | ||
Within one year | 5,033 | |
After one year, but within five years | 130,614 | |
After five years, but within ten years | 37,368 | |
After ten years | 205,975 | |
Fair Value | $ 378,990 | $ 420,588 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Loss Positions (Details) $ in Thousands | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan |
Investments in an unrealized loss position | ||
Amortized cost | $ 427,128 | $ 421,272 |
Amount of pretax loss if securities in an unrealized loss position are sold | 49,800 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | 108,486 | 203,065 |
Less than 12 months, unrealized loss | (10,446) | (3,437) |
12 months or more, fair value | 212,317 | 36,616 |
12 months or more, unrealized loss | (39,353) | (1,202) |
Asset Pledged as Collateral | Public Funds, Repurchase Agreements, and Potential Borrowings | ||
Investments in an unrealized loss position | ||
Amortized cost | 91,300 | 244,600 |
United States government agency securities | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 51,436 | $ 41,105 |
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 32 | 21 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 21,287 | $ 5,101 |
Less than 12 months, unrealized loss | (1,937) | (77) |
12 months or more, fair value | 19,423 | 21,770 |
12 months or more, unrealized loss | (4,700) | (819) |
United States sponsored mortgage-backed securities | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 68,267 | $ 77,519 |
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 51 | 30 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 6,953 | $ 55,354 |
Less than 12 months, unrealized loss | (852) | (1,346) |
12 months or more, fair value | 49,618 | 7,845 |
12 months or more, unrealized loss | (10,844) | (287) |
United States treasury securities | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 130,689 | $ 112,133 |
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 29 | 24 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 11,936 | $ 110,389 |
Less than 12 months, unrealized loss | (130) | (1,744) |
12 months or more, fair value | 102,092 | 0 |
12 months or more, unrealized loss | $ (9,698) | $ 0 |
Municipal securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 173 | 53 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 65,930 | $ 32,221 |
Less than 12 months, unrealized loss | (7,507) | (270) |
12 months or more, fair value | 41,184 | 7,001 |
12 months or more, unrealized loss | (14,111) | (96) |
Corporate debt securities | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 10,570 | $ 11,093 |
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 3 | 9 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 2,380 | $ 0 |
Less than 12 months, unrealized loss | (20) | 0 |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized loss | $ 0 | $ 0 |
Investment Securities - Gains (
Investment Securities - Gains (losses) on sales of investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Sales of available-for-sale investment securities | $ 60,635 | $ 146,011 | $ 54,023 |
Gains, gross | 717 | 3,944 | 948 |
Losses, gross | (67) | (69) | (34) |
Proceeds from sales of equity securities | 1,356 | 543 | 4,622 |
Gains, gross | 158 | 5 | 3,501 |
Losses, gross | (214) | 0 | 0 |
Holding gain (loss) on equity securities | $ (1,543) | $ 3,776 | $ 374 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of loans | ||
Total loans, excluding PCI | $ 2,368,180 | $ 1,852,772 |
Collectively evaluated for impairment | 2,354,802 | 1,845,481 |
Total loans | 2,370,662 | 1,871,447 |
Deferred loan origination costs and (fees), net | 1,983 | (1,609) |
Loans receivable | 2,372,645 | 1,869,838 |
Servicing asset | 164,100 | 347,500 |
Purchased credit impaired loans | ||
Components of loans | ||
Collectively evaluated for impairment | 2,482 | 18,675 |
Total commercial | ||
Components of loans | ||
Total loans, excluding PCI | 1,610,910 | 1,480,527 |
Collectively evaluated for impairment | 1,599,094 | 1,477,879 |
Total loans | 1,610,910 | 1,494,431 |
Total commercial | Business | ||
Components of loans | ||
Total loans, excluding PCI | 851,072 | 818,986 |
Collectively evaluated for impairment | 840,621 | 808,661 |
Total loans | 851,072 | 821,615 |
Total commercial | Real estate | ||
Components of loans | ||
Total loans, excluding PCI | 632,839 | 561,718 |
Collectively evaluated for impairment | 631,474 | 570,530 |
Total loans | 632,839 | 572,736 |
Total commercial | Acquisition, development and construction | ||
Components of loans | ||
Total loans, excluding PCI | 126,999 | 99,823 |
Collectively evaluated for impairment | 126,999 | 98,688 |
Total loans | 126,999 | 100,080 |
Total commercial | Purchased credit impaired loans | ||
Components of loans | ||
Collectively evaluated for impairment | 0 | 13,904 |
Total commercial | Purchased credit impaired loans | Business | ||
Components of loans | ||
Collectively evaluated for impairment | 0 | 2,629 |
Total commercial | Purchased credit impaired loans | Real estate | ||
Components of loans | ||
Collectively evaluated for impairment | 0 | 11,018 |
Total commercial | Purchased credit impaired loans | Acquisition, development and construction | ||
Components of loans | ||
Collectively evaluated for impairment | 0 | 257 |
Residential | ||
Components of loans | ||
Total loans, excluding PCI | 606,970 | 306,140 |
Collectively evaluated for impairment | 606,849 | 301,733 |
Total loans | 609,452 | 310,498 |
Residential | Purchased credit impaired loans | ||
Components of loans | ||
Collectively evaluated for impairment | 2,482 | 4,358 |
Home equity lines of credit | ||
Components of loans | ||
Total loans, excluding PCI | 18,734 | 22,186 |
Collectively evaluated for impairment | 18,644 | 21,969 |
Total loans | 18,734 | 22,186 |
Consumer | ||
Components of loans | ||
Total loans, excluding PCI | 131,566 | 43,919 |
Collectively evaluated for impairment | 130,215 | 43,900 |
Total loans | 131,566 | 44,332 |
Consumer | Purchased credit impaired loans | ||
Components of loans | ||
Collectively evaluated for impairment | $ 0 | $ 413 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Primary Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | $ 15,860 | $ 25,966 |
Collectively evaluated for impairment | 2,354,802 | 1,845,481 |
Total loans | 2,370,662 | 1,871,447 |
Purchased credit impaired loans | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 2,482 | 18,675 |
Total Commercial | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 11,816 | 16,552 |
Collectively evaluated for impairment | 1,599,094 | 1,477,879 |
Total loans | 1,610,910 | 1,494,431 |
Total Commercial | Business | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 10,451 | 12,954 |
Collectively evaluated for impairment | 840,621 | 808,661 |
Total loans | 851,072 | 821,615 |
Total Commercial | Real estate | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 1,365 | 2,206 |
Collectively evaluated for impairment | 631,474 | 570,530 |
Total loans | 632,839 | 572,736 |
Total Commercial | Acquisition, development and construction | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 0 | 1,392 |
Collectively evaluated for impairment | 126,999 | 98,688 |
Total loans | 126,999 | 100,080 |
Total Commercial | Purchased credit impaired loans | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 0 | 13,904 |
Total Commercial | Purchased credit impaired loans | Business | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 0 | 2,629 |
Total Commercial | Purchased credit impaired loans | Real estate | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 0 | 11,018 |
Total Commercial | Purchased credit impaired loans | Acquisition, development and construction | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 0 | 257 |
Residential | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 2,603 | 8,765 |
Collectively evaluated for impairment | 606,849 | 301,733 |
Total loans | 609,452 | 310,498 |
Residential | Purchased credit impaired loans | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | 2,482 | 4,358 |
Home equity lines of credit | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 90 | 217 |
Collectively evaluated for impairment | 18,644 | 21,969 |
Total loans | 18,734 | 22,186 |
Consumer | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 1,351 | 432 |
Collectively evaluated for impairment | 130,215 | 43,900 |
Total loans | 131,566 | 44,332 |
Consumer | Purchased credit impaired loans | ||
Primary segments of the loan portfolio: | ||
Collectively evaluated for impairment | $ 0 | $ 413 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | $ 6,023 | $ 3,069 | |
Impaired loans with specific allowance, related allowance | 1,743 | 475 | |
Impaired loans with no specific allowance, recorded investment | 9,837 | 19,386 | |
Total impaired loans, recorded investment | 15,860 | 22,455 | |
Total impaired loans, unpaid principal balance | 22,325 | 25,845 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 22,549 | 16,210 | $ 12,965 |
Interest Income Recognized on Accrual Basis | 80 | 75 | 183 |
Interest Income Recognized on Cash Basis | 80 | 57 | 196 |
Total Commercial | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 4,676 | 3,069 | |
Impaired loans with specific allowance, related allowance | 1,475 | 475 | |
Impaired loans with no specific allowance, recorded investment | 7,140 | 10,731 | |
Total impaired loans, recorded investment | 11,816 | 13,800 | |
Total impaired loans, unpaid principal balance | 18,209 | 17,146 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 14,533 | 10,096 | 10,330 |
Interest Income Recognized on Accrual Basis | 65 | 60 | 164 |
Interest Income Recognized on Cash Basis | 65 | 43 | 177 |
Total Commercial | Business | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 3,436 | 2,401 | |
Impaired loans with specific allowance, related allowance | 1,253 | 232 | |
Impaired loans with no specific allowance, recorded investment | 7,015 | 8,796 | |
Total impaired loans, recorded investment | 10,451 | 11,197 | |
Total impaired loans, unpaid principal balance | 15,324 | 13,010 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 12,781 | 7,701 | 6,066 |
Interest Income Recognized on Accrual Basis | 8 | 0 | 0 |
Interest Income Recognized on Cash Basis | 6 | 0 | 0 |
Total Commercial | Real estate | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 1,240 | 668 | |
Impaired loans with specific allowance, related allowance | 222 | 243 | |
Impaired loans with no specific allowance, recorded investment | 125 | 543 | |
Total impaired loans, recorded investment | 1,365 | 1,211 | |
Total impaired loans, unpaid principal balance | 1,470 | 1,329 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 1,479 | 2,051 | 3,057 |
Interest Income Recognized on Accrual Basis | 57 | 60 | 97 |
Interest Income Recognized on Cash Basis | 59 | 43 | 104 |
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 | 0 | 1,392 | |
Total impaired loans, recorded investment | 0 | 1,392 | |
Total impaired loans, unpaid principal balance | 1,415 | 2,807 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 273 | 344 | 1,207 |
Interest Income Recognized on Accrual Basis | 0 | 0 | 67 |
Interest Income Recognized on Cash Basis | 0 | 0 | 73 |
Residential | |||
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 | 2,603 | 8,179 | |
Total impaired loans, recorded investment | 2,603 | 8,179 | |
Total impaired loans, unpaid principal balance | 2,671 | 8,219 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 6,952 | 5,992 | 2,541 |
Interest Income Recognized on Accrual Basis | 15 | 15 | 19 |
Interest Income Recognized on Cash Basis | 15 | 14 | 19 |
Home equity lines of credit | |||
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 | 90 | 217 | |
Total impaired loans, recorded investment | 90 | 217 | |
Total impaired loans, unpaid principal balance | 94 | 221 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 149 | 81 | 87 |
Interest Income Recognized on Accrual Basis | 0 | 0 | 0 |
Interest Income Recognized on Cash Basis | 0 | 0 | 0 |
Consumer | |||
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | 1,347 | 0 | |
Impaired loans with specific allowance, related allowance | 268 | 0 | |
Impaired loans with no specific allowance, recorded investment | 4 | 259 | |
Total impaired loans, recorded investment | 1,351 | 259 | |
Total impaired loans, unpaid principal balance | 1,351 | 259 | |
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 915 | 41 | 7 |
Interest Income Recognized on Accrual Basis | 0 | 0 | 0 |
Interest Income Recognized on Cash Basis | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) property Category loan | Dec. 31, 2021 USD ($) property loan | |
Activity in the allowance for loan losses: | ||
Number of additional collateralized loans in the process of foreclosure | loan | 10 | 6 |
Investment in loans in the process of foreclosure | $ 2.1 | $ 0.4 |
Foreclosed properties held | $ 1.2 | $ 2.4 |
Number foreclosed properties held | property | 4 | |
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 | |
Past due period before loans placed in non-accrual status | 90 days | |
Recent loan payment history before removal from non-accrual status | 6 months | |
Residential | ||
Activity in the allowance for loan losses: | ||
Foreclosed properties held | $ 0.2 | $ 0.2 |
Number foreclosed properties held | property | 5 | |
Increase (decrease) in impaired loans (percentage) | 16.70% | 7.30% |
Total Commercial | ||
Activity in the allowance for loan losses: | ||
Foreclosed properties held | $ 1 | |
Number foreclosed properties held | property | 3 | |
Increase (decrease) in impaired loans (percentage) | 83.30% | 92.70% |
Consumer | ||
Activity in the allowance for loan losses: | ||
Number of additional collateralized loans in the process of foreclosure | property | 10 | |
Investment in loans in the process of foreclosure | $ 2.2 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | $ 2,370,662 | $ 1,871,447 |
Total Commercial | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 1,610,910 | 1,494,431 |
Total Commercial | Business | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 851,072 | 821,615 |
Total Commercial | Real estate | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 632,839 | 572,736 |
Total Commercial | Acquisition, development and construction | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 126,999 | 100,080 |
Residential | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 609,452 | 310,498 |
Home equity lines of credit | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 18,734 | 22,186 |
Consumer | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 131,566 | 44,332 |
Pass | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 2,299,448 | 1,770,237 |
Pass | Total Commercial | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 1,544,104 | 1,405,845 |
Pass | Total Commercial | Business | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 830,319 | 789,101 |
Pass | Total Commercial | Real estate | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 592,997 | 526,851 |
Pass | Total Commercial | Acquisition, development and construction | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 120,788 | 89,893 |
Pass | Residential | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 605,513 | 299,291 |
Pass | Home equity lines of credit | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 18,269 | 21,582 |
Pass | Consumer | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 131,562 | 43,519 |
Special Mention | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 31,258 | 31,114 |
Special Mention | Total Commercial | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 30,123 | 29,804 |
Special Mention | Total Commercial | Business | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 5,963 | 12,246 |
Special Mention | Total Commercial | Real estate | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 18,883 | 12,598 |
Special Mention | Total Commercial | Acquisition, development and construction | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 5,277 | 4,960 |
Special Mention | Residential | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 760 | 899 |
Special Mention | Home equity lines of credit | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 375 | 387 |
Special Mention | Consumer | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 0 | 24 |
Substandard | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 35,287 | 63,864 |
Substandard | Total Commercial | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 33,637 | 53,599 |
Substandard | Total Commercial | Business | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 12,103 | 18,143 |
Substandard | Total Commercial | Real estate | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 20,600 | 31,293 |
Substandard | Total Commercial | Acquisition, development and construction | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 934 | 4,163 |
Substandard | Residential | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 1,556 | 9,815 |
Substandard | Home equity lines of credit | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 90 | 191 |
Substandard | Consumer | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 4 | 259 |
Doubtful | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 4,669 | 6,232 |
Doubtful | Total Commercial | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 3,046 | 5,183 |
Doubtful | Total Commercial | Business | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 2,687 | 2,125 |
Doubtful | Total Commercial | Real estate | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 359 | 1,994 |
Doubtful | Total Commercial | Acquisition, development and construction | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 1,064 | |
Doubtful | Residential | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 1,623 | 493 |
Doubtful | Home equity lines of credit | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | 0 | 26 |
Doubtful | Consumer | ||
Classes of the loan portfolio summarized by credit quality indicators: | ||
Total loans | $ 0 | $ 530 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Aging (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) component | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Aging categories of performing loans and nonaccrual loans | |||
Total loans | $ 2,370,662 | $ 1,871,447 | |
Non-Accrual | 11,165 | 17,957 | |
90+ Days Still Accruing | 0 | 0 | |
Increased amount of interest income on loans | $ 500 | 400 | $ 600 |
Allowance for loan losses, number of evaluation components | component | 2 | ||
Impaired loans collectively evaluated | $ 100 | 100 | $ 100 |
Liability for unfunded commitments | 500 | 500 | |
Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,610,910 | 1,494,431 | |
Non-Accrual | 7,528 | 9,845 | |
90+ Days Still Accruing | 0 | 0 | |
Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 851,072 | 821,615 | |
Non-Accrual | 7,528 | 8,261 | |
90+ Days Still Accruing | 0 | 0 | |
Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 632,839 | 572,736 | |
Non-Accrual | 0 | 192 | |
90+ Days Still Accruing | 0 | 0 | |
Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 126,999 | 100,080 | |
Non-Accrual | 0 | 1,392 | |
90+ Days Still Accruing | 0 | 0 | |
Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 609,452 | 310,498 | |
Non-Accrual | 2,196 | 7,636 | |
90+ Days Still Accruing | 0 | 0 | |
Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 18,734 | 22,186 | |
Non-Accrual | 90 | 217 | |
90+ Days Still Accruing | 0 | 0 | |
Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 131,566 | 44,332 | |
Non-Accrual | 1,351 | 259 | |
90+ Days Still Accruing | 0 | 0 | |
Current | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,355,139 | 1,853,356 | |
Current | Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,609,950 | 1,485,211 | |
Current | Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 850,112 | 816,638 | |
Current | Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 632,839 | 569,792 | |
Current | Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 126,999 | 98,781 | |
Current | Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 606,554 | 303,940 | |
Current | Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 18,131 | 21,974 | |
Current | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 120,504 | 42,231 | |
30-59 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 9,271 | 7,012 | |
30-59 Days Past Due | Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 2,181 | |
30-59 Days Past Due | Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 1,718 | |
30-59 Days Past Due | Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 396 | |
30-59 Days Past Due | Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 67 | |
30-59 Days Past Due | Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,820 | 3,620 | |
30-59 Days Past Due | Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 603 | 0 | |
30-59 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 6,848 | 1,211 | |
60-89 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 4,905 | 1,749 | |
60-89 Days Past Due | Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 960 | 884 | |
60-89 Days Past Due | Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 960 | 11 | |
60-89 Days Past Due | Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 461 | |
60-89 Days Past Due | Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 412 | |
60-89 Days Past Due | Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,078 | 285 | |
60-89 Days Past Due | Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 119 | |
60-89 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,867 | 461 | |
90+ Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,347 | 9,330 | |
90+ Days Past Due | Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 6,155 | |
90+ Days Past Due | Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 3,248 | |
90+ Days Past Due | Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 2,087 | |
90+ Days Past Due | Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 820 | |
90+ Days Past Due | Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 2,653 | |
90+ Days Past Due | Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 93 | |
90+ Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,347 | 429 | |
Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 15,523 | 18,091 | |
Past Due | Total Commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 960 | 9,220 | |
Past Due | Total Commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 960 | 4,977 | |
Past Due | Total Commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 2,944 | |
Past Due | Total Commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 1,299 | |
Past Due | Residential | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,898 | 6,558 | |
Past Due | Home equity lines of credit | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 603 | 212 | |
Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | $ 11,062 | $ 2,101 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in the allowance for loan losses | |||
Balance at beginning of period | $ 18,266 | $ 25,844 | $ 11,775 |
Charge-offs | (15,183) | (1,619) | (2,190) |
Recoveries | 6,560 | 316 | 34 |
Provision (release) | 14,194 | (6,275) | 16,579 |
Allowance contributed with mortgage combination transaction | (354) | ||
Balance at end of period | 23,837 | 18,266 | 25,844 |
Individually evaluated for impairment | 1,743 | 475 | 1,296 |
Collectively evaluated for impairment | 22,094 | 17,791 | 24,548 |
Total Commercial | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 14,100 | 24,033 | 10,098 |
Charge-offs | (2,858) | (1,367) | (1,932) |
Recoveries | 183 | 231 | 22 |
Provision (release) | 4,114 | (8,797) | 15,845 |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 15,539 | 14,100 | 24,033 |
Individually evaluated for impairment | 1,475 | 475 | 1,296 |
Collectively evaluated for impairment | 14,064 | 13,625 | 22,737 |
Total Commercial | Business | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 8,027 | 12,193 | 6,197 |
Charge-offs | (2,858) | (1,284) | (1,909) |
Recoveries | 56 | 231 | 15 |
Provision (release) | 3,546 | (3,113) | 7,890 |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 8,771 | 8,027 | 12,193 |
Individually evaluated for impairment | 1,253 | 232 | 1,034 |
Collectively evaluated for impairment | 7,518 | 7,795 | 11,159 |
Total Commercial | Real estate | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 5,091 | 9,079 | 2,988 |
Charge-offs | 0 | (83) | (23) |
Recoveries | 127 | 0 | 7 |
Provision (release) | 486 | (3,905) | 6,107 |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 5,704 | 5,091 | 9,079 |
Individually evaluated for impairment | 222 | 243 | 262 |
Collectively evaluated for impairment | 5,482 | 4,848 | 8,817 |
Total Commercial | Acquisition, development and construction | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 982 | 2,761 | 913 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (release) | 82 | (1,779) | 1,848 |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 1,064 | 982 | 2,761 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,064 | 982 | 2,761 |
Residential | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 1,492 | 1,462 | 1,272 |
Charge-offs | (84) | (5) | (235) |
Recoveries | 0 | 0 | 0 |
Provision (release) | 1,472 | 35 | 779 |
Allowance contributed with mortgage combination transaction | (354) | ||
Balance at end of period | 2,880 | 1,492 | 1,462 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 2,880 | 1,492 | 1,462 |
Home equity lines of credit | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 128 | 298 | 327 |
Charge-offs | 0 | 0 | (23) |
Recoveries | 7 | 24 | 9 |
Provision (release) | (4) | (194) | (15) |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 131 | 128 | 298 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 131 | 128 | 298 |
Consumer | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 2,546 | 51 | 78 |
Charge-offs | (12,241) | (247) | 0 |
Recoveries | 6,370 | 61 | 3 |
Provision (release) | 8,612 | 2,681 | (30) |
Allowance contributed with mortgage combination transaction | 0 | ||
Balance at end of period | 5,287 | 2,546 | 51 |
Individually evaluated for impairment | 268 | 0 | 0 |
Collectively evaluated for impairment | $ 5,019 | $ 2,546 | $ 51 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan borrower | Dec. 31, 2021 USD ($) contract | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Specific reserve allocations for TDR's | $ 400 | $ 500 |
Troubled debt restructuring loans | 10,400 | $ 12,600 |
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 5,200 | |
Post-Modification Outstanding Recorded Investment | $ 4,836 | |
Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 5,700 | |
Number of restructured loans | loan | 9 | |
Number of borrowers defaulted | borrower | 7 | |
Total Commercial | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 5,200 | |
Post-Modification Outstanding Recorded Investment | $ 4,836 | |
Total Commercial | Business | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 5,200 | |
Post-Modification Outstanding Recorded Investment | $ 4,836 | |
Total Commercial | Real estate | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Residential | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | |
Accruing | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Troubled debt restructuring loans | $ 4,700 | $ 4,500 |
Accruing | Portfolio Risk | Troubled Debt Restructured Loans | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Concentration risk, percentage | 45% | 21% |
Commercial Borrower One | Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 1,900 | |
Commercial Borrower Two | Restructured Equipment Loan | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 500 | |
Commercial Borrower Three | Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 3,100 | |
Commercial Borrowers Four through Seven | Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 200 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - PPP Loans and CARES Act Deferrals (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 2,370,662 | $ 1,871,447 |
Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 31,258 | 31,114 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 131,566 | 44,332 |
Loans approved for modification | 10,800 | |
Consumer | Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 24 |
Total Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 1,610,910 | 1,494,431 |
Loans approved for modification | 0 | |
Total Commercial | Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 30,123 | $ 29,804 |
SBA PPP | ||
Financing Receivable, Impaired [Line Items] | ||
Original balance of loans | 7,900 | |
Total loans | 5,600 | |
SBA PPP | Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 2,000 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and equipment | ||
Gross premises and equipment | $ 43,863 | $ 41,301 |
Accumulated depreciation | (20,210) | (16,249) |
Premises and equipment, net | 23,653 | 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 | 17,642 | 16,841 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 6,019 | 4,176 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 508 | 531 |
Leasehold improvements | ||
Premises and equipment | ||
Gross premises and equipment | $ 2,836 | $ 2,895 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4,400 | $ 3,300 | $ 3,000 |
Lease liabilities | 15,000 | $ 18,600 | |
Right-of-use assets | $ 13,900 | ||
Operating lease lease, weighted average remaining lease term | 11 years 7 months 6 days | 12 years | |
Operating lease, weighted average discount rate | 3% | 2.80% | |
Operating lease, liability | $ 15,010 | $ 18,500 | |
Finance lease, liability | 100 | ||
Operating lease right-of-use asset | $ 17,500 | ||
Finance lease, weighted average remaining lease term | 1 year 9 months 18 days | ||
Finance lease, weighted average discount rate | 2% | ||
Finance lease, liability, statement of financial position [Extensible Enumeration] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | |
Operating lease, liability, statement of financial position [Extensible Enumeration] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | |
Operating lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Accrued interest receivable and other assets | Accrued interest receivable and other assets |
Premises and Equipment - Lease
Premises and Equipment - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Amortization of right-of-use assets, finance leases | $ 57 | $ 59 |
Interest on lease liabilities, finance leases | 0 | 2 |
Operating lease cost | 1,781 | 1,966 |
Short-term lease cost | 32 | 5 |
Variable lease cost | 38 | 38 |
Total lease cost | $ 1,908 | $ 2,070 |
Premises and Equipment - Leas_2
Premises and Equipment - Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 1,655 | |
2024 | 1,579 | |
2025 | 1,576 | |
2026 | 1,584 | |
2027 | 1,625 | |
2028 and thereafter | 10,111 | |
Total future minimum lease payments | 18,130 | |
Less: Amounts representing interest | (3,120) | |
Present value of net future minimum lease payments | $ 15,010 | $ 18,500 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | Oct. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net income | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | $ 15,047 | $ 39,121 | $ 37,411 | |
Equity method investments income (loss) | (713) | 17,428 | 24,174 | |||||||||
Locked mortgage pipeline | $ 700,000 | $ 1,000,000 | 700,000 | 1,000,000 | ||||||||
Share of net loss from equity method investment | $ 713 | (17,428) | $ (27,574) | |||||||||
Intercoastal | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 40% | 40% | ||||||||||
Equity method investments income (loss) | $ 0 | 16,400 | ||||||||||
Warp Speed Holdings LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 37.50% | |||||||||||
Ayers Socure II | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 10% | 10% | ||||||||||
Socure Inc. | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage in equity security investment | 1% | 1% | ||||||||||
Interchecks | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 9% | 9% | ||||||||||
Share of net loss from equity method investment | $ 700 | |||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total revenues | 67,207 | 153,549 | ||||||||||
Net income | 343 | 41,381 | ||||||||||
Gain on sale of loans | $ 44,921 | $ 150,896 | ||||||||||
Volume of loans sold | loan | 2,325,709,000 | 5,326,757,000 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Demand deposits of individuals, partnerships and corporations | ||
Noninterest-bearing demand | $ 1,231,544 | $ 1,120,433 |
Interest-bearing demand | 720,074 | 651,016 |
Savings and money markets | 284,447 | 510,068 |
Time deposits, including CDs and IRAs | 334,417 | 96,088 |
Total deposits | 2,570,482 | 2,377,605 |
Time deposits that meet or exceed the FDIC insurance limit | $ 4,386 | $ 9,573 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Maturities of Time Deposits | |
2023 | $ 263,254 |
2024 | 64,010 |
2025 | 3,819 |
2026 | 687 |
2027 | 2,394 |
Thereafter | 253 |
Total | 334,417 |
Overdrawn deposits | $ 1,100 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowed funds | ||
Maximum borrowing capacity with the FHLB | $ 751,400 | |
Remaining maximum borrowing capacity with the FHLB | 539,300 | |
Short-term Borrowings from FHLB | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of year | 102,333 | $ 0 |
Average balance during the year | 15,494 | 25,275 |
Maximum month-end balance | $ 102,333 | $ 130,047 |
Weighted-average rate during the year | 2.82% | 0.05% |
Weighted-average rate at December 31 | 4.45% | 0% |
Federal Funds Purchased | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of year | $ 0 | $ 0 |
Borrowed Funds - Long-term Borr
Borrowed Funds - Long-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Borrowings from the FHLB | $ 0 | $ 0 |
Borrowed Funds - Repurchase Agr
Borrowed Funds - Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Securities | ||
Borrowed funds | ||
Investment securities held as collateral | $ 10,400 | $ 15,800 |
Repurchase Agreements | ||
Borrowed funds | ||
Balance at end of year | 10,037 | 11,385 |
Average balance during the year | 10,987 | 10,821 |
Maximum month-end balance | $ 12,680 | $ 11,398 |
Weighted-average rate during the year | 0.05% | 0.12% |
Weighted-average rate at December 31 | 0.06% | 0.05% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Nov. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2022 | Mar. 31, 2007 | |
Subordinated Debt | |||||||
Balance at end of year | $ 73,286 | $ 73,030 | |||||
Interest expense on borrowed funds | 3,072 | 2,188 | $ 261 | ||||
Subordinated Debt | |||||||
Subordinated Debt | |||||||
Balance at end of year | 73,286 | 73,030 | |||||
Average balance during the year | 73,159 | 51,149 | |||||
Maximum month-end balance | $ 73,286 | $ 73,030 | |||||
Weighted-average rate during the year | 4.20% | 4.28% | |||||
Weighted-average rate at December 31 | 3.97% | 3.71% | |||||
Face amount of debt issued | $ 30,000 | $ 40,000 | |||||
Term of debt instrument | 10 years | 10 years | |||||
Interest rate on debt security | 3.25% | 4.25% | |||||
Interest expense on borrowed funds | $ 3,100 | $ 2,200 | $ 300 | ||||
Senior Loans | |||||||
Subordinated Debt | |||||||
Weighted-average rate during the year | 7% | 0% | |||||
Weighted-average rate at December 31 | 7.44% | 0% | |||||
SOFR | Subordinated Debt | |||||||
Subordinated Debt | |||||||
Variable rate basis spread | 2.54% | 4.01% | |||||
Subordinated Debentures | Subordinated Debt | |||||||
Subordinated Debt | |||||||
Face amount of debt issued | $ 4,000 | ||||||
Subordinated Debentures | LIBOR | Subordinated Debt | |||||||
Subordinated Debt | |||||||
Variable rate basis spread | 1.62% | ||||||
Raymond James Senior Term Loan | Senior Loans | |||||||
Subordinated Debt | |||||||
Face amount of debt issued | $ 10,000 |
Borrowed Funds - Senior term lo
Borrowed Funds - Senior term loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Secured Borrowings | ||||
Senior term loan | $ 9,765 | $ 0 | ||
Interest on senior term loan | 163 | 0 | $ 0 | |
Senior Loans | ||||
Secured Borrowings | ||||
Senior term loan | 9,765 | 0 | ||
Average balance during the year | 2,328 | 0 | ||
Maximum month-end balance | $ 9,886 | $ 0 | ||
Weighted-average rate during the year | 7% | 0% | ||
Weighted-average rate at December 31 | 7.44% | 0% | ||
Senior Loans | Raymond James Senior Term Loan | ||||
Secured Borrowings | ||||
Face amount of debt issued | $ 10,000 | |||
Upfront fee, as a percent | 1% | |||
Senior Loans | Raymond James Senior Term Loan | Debt Instrument, Redemption, Period One | ||||
Secured Borrowings | ||||
Periodic principal payment | $ 125 | |||
Senior Loans | Raymond James Senior Term Loan | Debt Instrument, Redemption, Period Two | ||||
Secured Borrowings | ||||
Periodic principal payment | $ 250 | |||
Senior Loans | Raymond James Senior Term Loan | SOFR | ||||
Secured Borrowings | ||||
Base rate | 2.75% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | $ 527,672,000 | $ 424,315,000 |
Average balance maintained in accordance with Federal Reserve Board requirements | 0 | 0 |
Available on lines of credit | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | 495,618,000 | 384,923,000 |
Stand-by letters of credit | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | 17,153,000 | 23,600,000 |
Other loan commitments | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | $ 14,901,000 | $ 15,792,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 6,607 | $ 3,332 | $ 10,899 |
State | 1,152 | 421 | 2,019 |
Total current | 7,759 | 3,753 | 12,918 |
Deferred: | |||
Federal | (3,056) | 5,159 | (3,183) |
State | (575) | 970 | (203) |
Total deferred expense (benefit) | (3,631) | 6,129 | (3,386) |
Income tax expense | $ 4,128 | $ 9,882 | $ 9,532 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Income tax at federal statutory rate | $ 3,889 | $ 10,201 | $ 9,858 |
Tax effect of: | |||
State income taxes, net of federal income taxes | 456 | 1,099 | 1,435 |
Tax exempt earnings | (1,596) | (1,460) | (1,381) |
Other | 1,379 | 42 | (380) |
Income tax expense | $ 4,128 | $ 9,882 | $ 9,532 |
Effective Income Tax Rate Reconciliation, Percent | |||
Income tax at federal statutory rate (percentage) | 21% | 21% | 21% |
Tax effect of: | |||
State income taxes, net of federal income taxes (percentage) | 2.50% | 2.20% | 3.10% |
Tax exempt earnings (percentage) | (8.60%) | (3.00%) | (3.00%) |
Other (percentage) | 7.40% | 0.10% | (0.80%) |
Income tax expense (as a percentage) | 22.30% | 20.30% | 20.30% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of Deferred Tax Assets and Liabilities | ||
Allowance for loan losses | $ 5,849 | $ 4,393 |
Minimum pension liability | 991 | 1,245 |
Stock-based compensation | 1,097 | 1,140 |
SERP | 317 | 298 |
Unrealized loss on securities available-for-sale | 11,024 | 0 |
Lease liabilities | 3,611 | 4,370 |
Other | 364 | 249 |
Total gross deferred tax assets | 23,253 | 11,695 |
Depreciation | (1,726) | (1,556) |
Pension | (1,062) | (1,077) |
Unrealized gain on securities available-for-sale | (80) | (45) |
Holding gain on equity securities | (3,969) | (4,358) |
Equity method investment | (2,220) | (4,086) |
Goodwill | (110) | (70) |
Deferred Tax Liabilities, Leasing Arrangements | 3,383 | 4,141 |
Other | (264) | (288) |
Total gross deferred tax liabilities | (12,814) | (15,621) |
Net deferred tax assets | $ 10,439 | |
Net deferred tax liabilities | $ (3,926) |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 director | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 17, 2022 USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||||
Balance at Beginning of Year | $ 27,606 | $ 27,423 | ||
Borrowings, net of participations | 221,825 | 4,373 | ||
Executive Officer and Director Retirements | (998) | (996) | ||
Repayments | (215,000) | (3,194) | ||
Balance at End of Year | 33,433 | 27,606 | ||
Related party deposits | 112,500 | 63,600 | ||
Related Party Transaction [Line Items] | ||||
Line of credit, related party | 33,433 | 27,606 | ||
BillGO, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Line of credit, related party | $ 35,000 | |||
Revenue from related parties | 300 | $ 300 | ||
Warp Speed Holdings LLC | ||||
Related Party Transaction [Line Items] | ||||
Number of directors designated by the Company | director | 2 | |||
Total number of directors | director | 7 | |||
CalCon Mutual Mortgage LLC | ||||
Related Party Transaction [Line Items] | ||||
Loans purchased from related party | 39,100 | |||
Interest income from loans purchased from related party | 900 | |||
Intercoastal | ||||
Related Party Transaction [Line Items] | ||||
Loans purchased from related party | $ 572,700 |
Pension Plan - Narrative (Detai
Pension Plan - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) installment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service period | 3 years | |||
Pension expense | $ 300 | $ 300 | $ 300 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 5.23% | 2.83% | 2.50% | 4.50% |
Benefit obligation | $ 8,829 | $ 12,230 | $ 12,715 | |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4% | |||
Benefit obligation | $ 1,800 | |||
Number of equal consecutive installments | installment | 180 | |||
Consecutive installments, amount | $ 10 | |||
Accrued liability | $ 1,300 | $ 1,300 |
Pension Plan - Defined Benefit
Pension Plan - Defined Benefit Plan Activity (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 12,230 | $ 12,715 | |
Interest cost | 341 | 313 | $ 365 |
Actuarial loss | 160 | 143 | |
Assumption changes | (3,584) | (649) | |
Benefits paid | (318) | (292) | |
Benefit obligation at end of year | 8,829 | 12,230 | 12,715 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 11,591 | 7,096 | |
Actual return (loss) on plan assets | (1,990) | 952 | |
Employer contribution | 0 | 3,835 | |
Benefits paid | (318) | (292) | |
Fair value of plan assets at end of year | 9,283 | 11,591 | $ 7,096 |
Funded status | 454 | (639) | |
Unrecognized net actuarial loss | 4,120 | 5,314 | |
Prepaid pension cost recognized | 4,574 | 4,675 | |
Accumulated benefit obligation | $ 8,829 | $ 12,230 |
Pension Plan - Weighted Average
Pension Plan - Weighted Average Assumptions and Net Periodic Pension Cost (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2014 | |
Weighted average assumptions used to determine the benefit obligation | ||||
Discount rate | 5.23% | 2.83% | 2.50% | 4.50% |
Components of net periodic pension cost | ||||
Interest cost | $ 341 | $ 313 | $ 365 | |
Expected return on plan assets | (669) | (689) | (438) | |
Amortization of net actuarial loss | 429 | 507 | 420 | |
Net periodic pension cost | $ 101 | $ 131 | $ 347 | |
Weighted average assumptions used to determine net periodic pension cost | ||||
Discount rate | 5.23% | 2.83% | 2.50% | |
Expected long-term rate of return on plan assets | 6% | 6.75% | 6.75% |
Pension Plan - Plan Asset Alloc
Pension Plan - Plan Asset Allocations (Details) - Pension Plan | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 100% | 100% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 7% | 3% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 28% | 25% |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 13% | 29% |
Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 26% | 25% |
Foreign equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 22% | 18% |
Real estate investment trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 4% | 0% |
Pension Plan - Plan Assets at F
Pension Plan - Plan Assets at Fair Value (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | $ 9,283 | $ 11,591 | $ 7,096 |
Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 8,912 | 11,591 | |
Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 7,705 | 8,230 | |
Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 1,207 | 3,361 | |
Net Asset Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 371 | ||
Cash | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 650 | 348 | |
Cash | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 650 | 348 | |
Cash | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Cash | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Fixed income | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,599 | 2,898 | |
Fixed income | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,599 | 2,898 | |
Fixed income | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Fixed income | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Alternative investments | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 1,207 | 3,361 | |
Alternative investments | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Alternative investments | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Alternative investments | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 1,207 | 3,361 | |
Domestic equities | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,414 | 2,898 | |
Domestic equities | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,414 | 2,898 | |
Domestic equities | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Domestic equities | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Foreign equities | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,042 | 2,086 | |
Foreign equities | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 2,042 | 2,086 | |
Foreign equities | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | 0 | 0 | |
Foreign equities | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total assets at fair value | $ 0 | $ 0 |
Pension Plan - Estimated Plan C
Pension Plan - Estimated Plan Contributions in Future Years (Details) - Pension Plan $ in Thousands | Dec. 31, 2022 USD ($) |
Estimated Future Employer Contributions | |
Contributions for the period of January 1, 2023 through December 31, 2023 | $ 0 |
Estimated future benefit payments reflecting expected future service | |
2023 | 409 |
2024 | 433 |
2025 | 462 |
2026 | 536 |
2027 | 542 |
2028 through 2032 | $ 2,801 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||
Goodwill, beginning balance | $ 3,988,000 | $ 2,350,000 | $ 19,630,000 |
Goodwill, ending balance | 3,988,000 | 3,988,000 | 2,350,000 |
Intangibles | |||
Gross, beginning balance | 3,820,000 | 3,941,000 | 4,226,000 |
Accumulated depreciation, beginning balance | (1,504,000) | (1,541,000) | (753,000) |
Net, beginning balance | 2,316,000 | 2,400,000 | 3,473,000 |
Accumulated Amortization expense | (685,000) | (684,000) | (1,229,000) |
Gross, ending balance | 3,820,000 | 3,820,000 | 3,941,000 |
Accumulated depreciation, ending balance | (2,189,000) | (1,504,000) | (1,541,000) |
Net, ending balance | 1,631,000 | 2,316,000 | 2,400,000 |
Intangible Assets, Other Disclosures | |||
Goodwill impairment | 0 | 0 | |
Impairment charges | $ 0 | 0 | 0 |
Branches Sold to Summit | |||
Goodwill | |||
Goodwill, written off | (1,598,000) | ||
Intangibles | |||
Intangible assets related to sale, gross | (721,000) | (845,000) | |
Accumulated Amortization expense | (721,000) | (441,000) | |
Intangible assets related to sale, net | (404,000) | ||
Trabian | |||
Goodwill | |||
Goodwill, resulting from acquisition | 1,638,000 | ||
Intangibles | |||
Intangibles resulting from acquisition | $ 600,000 | ||
First State Bank | |||
Intangibles | |||
Intangibles resulting from acquisition | 560,000 | ||
Intercoastal | |||
Goodwill | |||
Goodwill, written off | (16,882,000) | ||
Paladin | |||
Goodwill | |||
Goodwill, resulting from acquisition | $ 1,200,000 | ||
Customer Relationships | Trabian | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 4 years | ||
Customer Relationships | Chartwell | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 5 years | ||
Trade Names | Trabian | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 10 years | ||
Backlog | Chartwell | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 5 years 3 months 18 days | ||
Trademark | Chartwell | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 15 years | ||
Non-competition agreement | Chartwell | |||
Intangible Assets, Other Disclosures | |||
Amortization period | 4 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Estimated Amortization Expense | ||||
2023 | $ 592 | |||
2024 | 321 | |||
2025 | 100 | |||
2026 | 87 | |||
2027 | 87 | |||
Thereafter | 444 | |||
Total | $ 1,631 | $ 2,316 | $ 2,400 | $ 3,473 |
Stock Offerings (Details)
Stock Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Total number of shares purchased (in shares) | 536,490 | ||||||
Average price paid per share (in dollars per share) | $ 20.25 | ||||||
Authorized repurchase amount | $ 31,900 | $ 31,900 | |||||
Common stock issued related to contingent consideration | 2,000 | ||||||
Common stock issued related to acquisitions | $ 9,579 | $ 600 | $ 240 | ||||
Series B Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, par value (in dollars per share) | 1 | $ 1 | |||||
Liquidation preference (in dollars per share) | 1,000 | 1,000 | |||||
Dividends declared (in dollars per share) | 46.03 | ||||||
Series C Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, par value (in dollars per share) | 1 | 1 | |||||
Liquidation preference (in dollars per share) | 1,000 | 1,000 | |||||
Dividends declared (in dollars per share) | 49.86 | ||||||
Series B and Series C Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Redemption price (in dollars per share) | $ 10,000 | $ 10,000 | |||||
Chartwell | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to contingent consideration (in shares) | 23,558 | 24,408 | |||||
Sale of stock, price per share (in dollars per share) | $ 42.45 | $ 40.97 | $ 42.45 | ||||
Common stock issued related to contingent consideration | $ 1,000 | $ 1,000 | |||||
Warp Speed Holdings LLC | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to acquisitions (in shares) | 313,030 | ||||||
Sale of stock, price per share (in dollars per share) | $ 30.60 | ||||||
Common stock issued related to acquisitions | $ 9,580 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) installment shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Stock options | |||
Shares authorized for issuance (in shares) | shares | 975,000 | ||
Shares available for issuance (in shares) | shares | 951,868 | ||
Common stock options exercised | $ 2,069 | $ 4,930 | $ 4,459 |
Fair value of stock options vested | $ 600 | ||
Stock Options | |||
Stock options | |||
Vesting period | 5 years | ||
Expiration term | 10 years | ||
Intrinsic value of options exercised | $ 3,500 | $ 8,000 | $ 1,900 |
Unrecognized pre-tax compensation expense | $ 700 | ||
Unrecognized pre-tax compensation expense, recognition period | 2 years 10 months 24 days | ||
RSUs | |||
Stock options | |||
Unrecognized pre-tax compensation expense | $ 3,700 | ||
Unrecognized pre-tax compensation expense, recognition period | 2 years 2 months 12 days | ||
Granted (in shares) | shares | 95,723 | ||
Fair value of RSUs vested | $ 2,900 | ||
Time Based, Restricted Stock Units | |||
Stock options | |||
Vesting period | 5 years | ||
Granted (in shares) | shares | 53,070 | ||
Number of vesting installments | installment | 5 | ||
Time Based, Restricted Stock Units | Director | |||
Stock options | |||
Vesting period | 1 year | ||
Performance Based, Restricted Stock Units | |||
Stock options | |||
Vesting period | 3 years | ||
Granted (in shares) | shares | 42,653 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,800 | $ 2,634 | $ 2,353 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 501 | 832 | 950 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,299 | $ 1,802 | $ 1,403 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 1,114,200 | ||
Granted (in shares) | 14,350 | ||
Exercised (in shares) | 160,527 | ||
Forfeited (in shares) | 24,930 | ||
Expired (in shares) | 550 | ||
Outstanding at end of year (in shares) | 942,543 | 1,114,200 | |
Exercisable at end of year (in shares) | 782,116 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 15.86 | ||
Granted (in dollars per share) | 39.15 | ||
Exercised (in dollars per share) | 12.99 | ||
Forfeited (in dollars per share) | 22.55 | ||
Expired (in dollars per share) | 14.71 | ||
Outstanding at end of year (in dollars per share) | 16.53 | $ 15.86 | |
Exercisable at end of year (in dollars per share) | 15.36 | ||
Additional disclosure | |||
Weighted-average fair value of options granted during the year (in dollars per share) | $ 14.94 | $ 10.61 | $ 4.48 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
Average risk-free interest rates | 2.23% | 1.27% | 0.66% |
Weighted-average life (years) | 7 years | 7 years | 7 years |
Expected volatility | 41.20% | 41.20% | 30.90% |
Expected dividend yield | 1.58% | 1.08% | 2.20% |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options Outstanding | ||
Total Options (in shares) | 942,543 | 1,114,200 |
Weighted-Average Exercise Price (in dollars per share) | $ 16.53 | $ 15.86 |
Options Exercisable | ||
Total Options (in shares) | 782,116 | |
Weighted-Average Exercise Price (in dollars per share) | $ 15.36 | |
Stock Options | ||
Options Outstanding | ||
Intrinsic Value (in millions) | $ 5.7 | |
Weighted-Average Remaining Life | 4 years 4 months 17 days | |
Options Exercisable | ||
Intrinsic Value (in millions) | $ 5.3 | |
Weighted-Average Remaining Life | 3 years 10 months 13 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSUs (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Balance at beginning of year (in shares) | 241,906 | ||
Granted (in shares) | 95,723 | ||
Vested (in shares) | (75,354) | ||
Forfeited (in shares) | (14,718) | ||
Balance at end of year (in shares) | 247,557 | 241,906 | |
Weighted-Average Grant Date Fair Value | |||
Balance at beginning of year (in dollars per share) | $ 21.46 | ||
Granted (in dollars per share) | 38.04 | $ 40.95 | $ 13.08 |
Vested (in dollars per share) | 21.62 | ||
Forfeited (in dollars per share) | 26.16 | ||
Balance at end of year (in dollars per share) | $ 26.39 | $ 21.46 |
Stock-Based Compensation - Subs
Stock-Based Compensation - Subsidiary Equity Plan (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | ||
Shares authorized for issuance (in shares) | 975,000 | |
Granted (in shares) | 14,350 | |
Granted (in dollars per share) | $ 39.15 | |
Stock Options | ||
Stock options | ||
Expiration term | 10 years | |
Vesting period | 5 years | |
2021 Victor LTI Plan | ||
Stock options | ||
Shares authorized for issuance (in shares) | 5,000,000 | |
Granted (in shares) | 1,100,000 | |
Granted (in dollars per share) | $ 0.29 | |
Shares vested (in shares) | 299,961 | |
Average exercise price of shares vested (in dollars per share) | $ 0.29 | |
Nonvested stock options (in shares) | 817,029 | |
2021 Victor LTI Plan | Stock Options | ||
Stock options | ||
Expiration term | 10 years | |
Vesting period | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for earnings per share: | |||||||||||
Net Income | $ 14,387 | $ 38,696 | $ 37,411 | ||||||||
Net loss attributable to noncontrolling interest | 660 | 425 | 0 | ||||||||
Dividends on preferred stock | 0 | (35) | (461) | ||||||||
Net income available to common shareholders | $ 15,047 | $ 39,086 | $ 36,950 | ||||||||
Denominator: | |||||||||||
Total average shares outstanding (in shares) | 12,279,462 | 11,778,557 | 11,821,574 | ||||||||
Effect of dilutive stock options and restricted stock units (in shares) | 591,272 | 835,063 | 266,532 | ||||||||
Total diluted average shares outstanding (in shares) | 12,870,734 | 12,613,620 | 12,088,106 | ||||||||
Earnings per common share - basic (in dollars per share) | $ 0.52 | $ 0.22 | $ 0.24 | $ 0.24 | $ 0.83 | $ 1 | $ 0.79 | $ 0.70 | $ 1.23 | $ 3.32 | $ 3.13 |
Earnings per common share - diluted (in dollars per share) | $ 0.50 | $ 0.21 | $ 0.23 | $ 0.22 | $ 0.77 | $ 0.92 | $ 0.73 | $ 0.66 | $ 1.17 | $ 3.10 | $ 3.06 |
Stock Options | |||||||||||
Denominator: | |||||||||||
Securities not included in the computation of diluted EPS because the effect would be antidilutive (in shares) | 113,427 | 93,895 | 646,168 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities not included in the computation of diluted EPS because the effect would be antidilutive (in shares) | 113,427 | 93,895 | 646,168 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - Subsidiary bank $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 30, 2020 |
Community Bank leverage ratio | |||
Actual, amount | $ 307,936 | $ 321,282 | |
Actual, ratio | 0.098 | 0.116 | |
Minimum Capital Requirement, amount | $ 250,675 | $ 208,344 | |
Minimum Capital Requirement, ratio | 0.080 | 0.075 | |
Minimum to be Well Capitalized, amount | $ 282,010 | $ 236,123 | |
Minimum to be Well Capitalized, ratio | 0.090 | 0.085 | 0.08 |
Regulatory Restriction on Div_2
Regulatory Restriction on Dividends (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Number of preceding years, the retained net profits of which is considered for dividend payment | 2 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Certificates of deposits with banks | $ 0 | $ 2,719 |
Investment securities available-for-sale | 379,814 | 421,466 |
Equity securities | 38,744 | 32,402 |
Servicing assets | 1,600 | 2,800 |
Bank-owned life insurance | 43,239 | 42,257 |
Financial Liabilities: | ||
FHLB and other borrowings | 102,333 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 40,280 | 307,437 |
Certificates of deposits with banks | 2,719 | |
Investment securities available-for-sale | 379,814 | 421,466 |
Equity securities | 38,744 | 32,402 |
Loans held-for-sale | 23,126 | |
Loans receivable, net | 2,348,808 | 1,851,572 |
Servicing assets | 1,616 | 2,812 |
Accrued interest receivable | 12,617 | 7,860 |
Bank-owned life insurance | 43,239 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,570,482 | 2,377,605 |
Repurchase Agreements | 10,037 | 11,385 |
Accrued interest payable | 2,558 | 690 |
FHLB and other borrowings | 102,333 | |
Senior term loan | 9,765 | |
Subordinated debt | 73,286 | 73,030 |
Carrying Value | Interest rate swap | ||
Financial assets: | ||
Derivative asset | 8,427 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 8,427 | 6,702 |
Carrying Value | Embedded derivative | ||
Financial assets: | ||
Derivative asset | 787 | |
Carrying Value | Fair value hedge | ||
Financial assets: | ||
Derivative asset | 1,552 | |
Financial Liabilities: | ||
Derivative liability | 572 | 807 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 40,280 | 307,437 |
Certificates of deposits with banks | 2,738 | |
Investment securities available-for-sale | 379,814 | 421,466 |
Equity securities | 38,744 | 32,402 |
Loans held-for-sale | 24,898 | |
Loans receivable, net | 2,285,427 | 1,865,013 |
Servicing assets | 1,634 | 2,831 |
Accrued interest receivable | 12,617 | 7,860 |
Bank-owned life insurance | 43,239 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,226,037 | 2,338,868 |
Repurchase Agreements | 10,037 | 11,385 |
Accrued interest payable | 2,558 | 690 |
FHLB and other borrowings | 102,006 | |
Senior term loan | 9,765 | |
Subordinated debt | 64,330 | 74,774 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Cash and cash equivalents | 40,280 | 307,437 |
Certificates of deposits with banks | 0 | |
Investment securities available-for-sale | 0 | 0 |
Equity securities | 5,382 | 247 |
Loans held-for-sale | 0 | |
Loans receivable, net | 0 | 0 |
Servicing assets | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase Agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB and other borrowings | 0 | |
Senior term loan | 0 | |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposits with banks | 2,738 | |
Investment securities available-for-sale | 344,471 | 379,703 |
Equity securities | 0 | 0 |
Loans held-for-sale | 24,898 | |
Loans receivable, net | 0 | 0 |
Servicing assets | 0 | 0 |
Accrued interest receivable | 2,778 | 2,402 |
Bank-owned life insurance | 43,239 | 42,257 |
Financial Liabilities: | ||
Deposits | 2,226,037 | 2,338,868 |
Repurchase Agreements | 10,037 | 11,385 |
Accrued interest payable | 2,558 | 690 |
FHLB and other borrowings | 102,006 | |
Senior term loan | 9,765 | |
Subordinated debt | 64,330 | 74,774 |
Estimated Fair Value | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposits with banks | 0 | |
Investment securities available-for-sale | 35,343 | 41,763 |
Equity securities | 33,362 | 32,155 |
Loans held-for-sale | 0 | |
Loans receivable, net | 2,285,427 | 1,865,013 |
Servicing assets | 1,634 | 2,831 |
Accrued interest receivable | 9,839 | 5,458 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase Agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB and other borrowings | 0 | |
Senior term loan | 0 | |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Interest rate swap | ||
Financial assets: | ||
Derivative asset | 8,427 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 8,427 | 6,702 |
Estimated Fair Value | Interest rate swap | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Interest rate swap | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Derivative asset | 8,427 | 6,702 |
Financial Liabilities: | ||
Derivative liability | 8,427 | 6,702 |
Estimated Fair Value | Interest rate swap | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Embedded derivative | ||
Financial assets: | ||
Derivative asset | 787 | |
Estimated Fair Value | Embedded derivative | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Derivative asset | 0 | |
Estimated Fair Value | Embedded derivative | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Derivative asset | 0 | |
Estimated Fair Value | Embedded derivative | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Derivative asset | 787 | |
Estimated Fair Value | Fair value hedge | ||
Financial assets: | ||
Derivative asset | 1,552 | |
Financial Liabilities: | ||
Derivative liability | 572 | 807 |
Estimated Fair Value | Fair value hedge | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Fair value hedge | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Derivative asset | 1,552 | |
Financial Liabilities: | ||
Derivative liability | 572 | 807 |
Estimated Fair Value | Fair value hedge | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 379,814 | $ 421,466 |
Equity securities | 38,744 | 32,402 |
Bank-owned life insurance | 43,239 | 42,257 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 5,382 | 247 |
Loans held-for-sale | 24,898 | |
Bank-owned life insurance | 43,239 | 42,257 |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 5,382 | 247 |
Loans held-for-sale | 0 | |
Bank-owned life insurance | 0 | 0 |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 24,898 | |
Bank-owned life insurance | 43,239 | 42,257 |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 0 | |
Bank-owned life insurance | 0 | 0 |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 44,814 | 40,437 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 44,814 | 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 | 44,814 | 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 | 56,571 | 76,108 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 56,571 | 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 | 56,571 | 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 | 120,909 | 110,389 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 120,909 | 110,389 |
United States treasury securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States treasury securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 120,909 | 110,389 |
United States treasury securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Municipal securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 138,636 | 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 | 103,293 | 133,249 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 35,343 | 41,763 |
Corporate debt securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 10,560 | 11,142 |
Corporate debt securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 10,560 | 11,142 |
Corporate debt securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Corporate debt securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 10,560 | 11,142 |
Corporate debt securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Other securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 824 | 878 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 824 | 878 |
Other securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Other securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 824 | 878 |
Other securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Interest rate swap | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 8,427 | 6,702 |
Derivative liability | 8,427 | 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 | 8,427 | 6,702 |
Derivative liability | 8,427 | 6,702 |
Interest rate swap | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Embedded derivative | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 787 | |
Embedded derivative | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Embedded derivative | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Embedded derivative | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 787 | |
Fair value hedge | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 1,552 | |
Derivative liability | 572 | 807 |
Fair value hedge | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 1,552 | |
Derivative liability | 572 | 807 |
Fair value hedge | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Level III Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Including Derivatives Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Unrealized loss included in other comprehensive loss | Unrealized loss included in other comprehensive income |
Level III | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 41,763 | $ 43,679 |
Realized gains included in earnings | 9 | |
Purchase of securities | 1,048 | 3,862 |
Maturities/calls | (3,207) | (5,214) |
Unrealized loss included in other comprehensive loss | (4,270) | (564) |
Host contract executed | 0 | |
Ending balance | 35,343 | 41,763 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Realized gains included in earnings | 0 | |
Purchase of securities | 0 | 0 |
Maturities/calls | 0 | 0 |
Unrealized loss included in other comprehensive loss | 0 | 0 |
Host contract executed | 787 | |
Ending balance | 787 | 0 |
Fair Value, Assets Including Derivatives Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 41,763 | 43,679 |
Realized gains included in earnings | 9 | |
Purchase of securities | 1,048 | 3,862 |
Maturities/calls | (3,207) | (5,214) |
Unrealized loss included in other comprehensive loss | (4,270) | (564) |
Host contract executed | 787 | |
Ending balance | $ 36,130 | $ 41,763 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 14,117 | $ 21,980 |
Impaired loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Impaired loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Impaired loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,117 | 21,980 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,194 | 2,330 |
Other real estate owned | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,194 | 2,330 |
Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,500 | 7,500 |
Other debt securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other debt securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other debt securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,500 | 7,500 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 33,362 | 32,155 |
Equity securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 33,362 | $ 32,155 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Dec. 31, 2022 USD ($) yr | Dec. 31, 2021 USD ($) |
Non-recurring | Other debt securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | $ 7,500 | $ 7,500 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 33,362 | 32,155 |
Non-recurring | Impaired loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 14,117 | 21,980 |
Non-recurring | Impaired loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 14,117 | 21,980 |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 1,194 | 2,330 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 1,194 | 2,330 |
Non-recurring | Equity securities | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 33,362 | 32,155 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 33,362 | 32,155 |
Recurring | Municipal securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 35,343 | $ 41,763 |
Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | $ 787 | |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans, measurement input | 0 | 0.10 |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans, measurement input | 0.20 | 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, measurement input | 0 | 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, measurement input | 0.20 | 0.20 |
Appraisal adjustments | Recurring | Municipal securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities, measurement input | 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, measurement input | 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, measurement input | 0.05 | |
Liquidation expense | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans, measurement input | 0.06 | 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, measurement input | 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, measurement input | 0.06 | 0.10 |
Cost minus impairment | Non-recurring | Other debt securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities, measurement input | 0 | 0 |
Cost minus impairment | Non-recurring | Equity securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities, measurement input | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 0 | |
Deferred payment | Recurring | Embedded derivative | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 51,900 | |
Volatility | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 58 | |
Term | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | yr | 5 | |
Risk free rate | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 3.95 |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive Income | |||||||||||
Gain on sale of available-for-sale securities, net | $ 650 | $ 3,875 | $ 914 | ||||||||
Salaries and employee benefits | (72,162) | (60,210) | (61,629) | ||||||||
Interest on investment securities | 3,496 | 2,405 | 2,448 | ||||||||
Income before income taxes | 18,515 | 48,578 | 46,943 | ||||||||
Income tax expense | (4,128) | (9,882) | (9,532) | ||||||||
Net income attributable to parent | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | 15,047 | 39,121 | 37,411 |
Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Net income attributable to parent | 234 | 1,950 | 723 | ||||||||
Available-for-sale securities | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Gain on sale of available-for-sale securities, net | 650 | 3,875 | 914 | ||||||||
Income before income taxes | 650 | 3,875 | 914 | ||||||||
Income tax expense | (152) | (908) | (214) | ||||||||
Net income attributable to parent | 498 | 2,967 | 700 | ||||||||
Defined benefit pension plan items | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Salaries and employee benefits | (429) | (507) | (420) | ||||||||
Income before income taxes | (429) | (507) | (420) | ||||||||
Income tax expense | 103 | 119 | 98 | ||||||||
Net income attributable to parent | (326) | (388) | (322) | ||||||||
Investment hedge | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Interest on investment securities | 83 | (862) | 473 | ||||||||
Income before income taxes | 83 | (862) | 473 | ||||||||
Income tax expense | (21) | 233 | (128) | ||||||||
Net income attributable to parent | $ 62 | $ (629) | $ 345 |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | $ 274,328 | |
Other comprehensive income (loss) before reclassification | (33,864) | $ (3,882) |
Amounts reclassified from AOCI | (234) | (1,950) |
Net current period OCI | (34,098) | (5,832) |
Ending balance | 261,084 | 274,328 |
Unrealized gains (losses) on available for-sale securities | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | 147 | 7,586 |
Other comprehensive income (loss) before reclassification | (34,478) | (4,472) |
Amounts reclassified from AOCI | (498) | (2,967) |
Net current period OCI | (34,976) | (7,439) |
Ending balance | (34,829) | 147 |
Defined benefit pension plan items | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (4,069) | (5,047) |
Other comprehensive income (loss) before reclassification | 614 | 590 |
Amounts reclassified from AOCI | 326 | 388 |
Net current period OCI | 940 | 978 |
Ending balance | (3,129) | (4,069) |
Investment hedge | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | 316 | (313) |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amounts reclassified from AOCI | (62) | 629 |
Net current period OCI | (62) | 629 |
Ending balance | 254 | 316 |
AOCI attributable to parent | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (3,606) | 2,226 |
Ending balance | $ (37,704) | $ (3,606) |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Equity method investments | $ 76,223 | $ 40,013 |
TOTAL ASSETS | 3,068,850 | 2,792,449 |
Liabilities and stockholders’ equity | ||
Senior term loan | 9,765 | 0 |
Total liabilities | 2,807,459 | 2,517,146 |
Total stockholders’ equity | 261,084 | 274,328 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 3,068,850 | 2,792,449 |
Parent Company | ||
Assets | ||
Cash | 31,085 | 27,463 |
Investment in subsidiaries | 277,173 | 322,002 |
Debt and equity securities | 4,904 | 0 |
Equity method investments | 50,976 | 0 |
Other assets | 11,033 | 13,715 |
TOTAL ASSETS | 375,171 | 363,180 |
Liabilities and stockholders’ equity | ||
Other liabilities | 31,036 | 15,822 |
Senior term loan | 9,765 | 0 |
Subordinated debt | 73,286 | 73,030 |
Total liabilities | 114,087 | 88,852 |
Total stockholders’ equity | 261,084 | 274,328 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 375,171 | $ 363,180 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statements of income | |||||||||||
Income tax expense | $ 4,128 | $ 9,882 | $ 9,532 | ||||||||
Equity in undistributed income earnings of subsidiaries | (713) | 17,428 | 24,174 | ||||||||
Net income attributable to parent | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | 15,047 | 39,121 | 37,411 |
Preferred dividends | 0 | 35 | 461 | ||||||||
Net income available to common shareholders | 15,047 | 39,086 | 36,950 | ||||||||
Parent Company | |||||||||||
Condensed Statements of income | |||||||||||
Income, dividends from the Bank | 50,985 | 19,165 | 6,688 | ||||||||
Operating expenses | 27,774 | 22,458 | 16,804 | ||||||||
Income (loss), before income taxes | 23,211 | (3,293) | (10,116) | ||||||||
Income tax expense | (3,450) | (2,090) | (2,082) | ||||||||
Net income (loss) | 26,661 | (1,203) | (8,034) | ||||||||
Equity in undistributed income earnings of subsidiaries | (11,614) | 40,324 | 45,445 | ||||||||
Net income attributable to parent | 15,047 | 39,121 | 37,411 | ||||||||
Preferred dividends | 0 | 35 | 461 | ||||||||
Net income available to common shareholders | $ 15,047 | $ 39,086 | $ 36,950 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||||||||||
Net income attributable to parent | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | $ 15,047 | $ 39,121 | $ 37,411 |
Equity in undistributed earnings of subsidiaries | 713 | (17,428) | (24,174) | ||||||||
Stock-based compensation | 2,800 | 2,634 | 2,353 | ||||||||
Depreciation and amortization | 5,322 | 4,198 | 3,292 | ||||||||
Other assets | (2,438) | (1,440) | (27,200) | ||||||||
Other liabilities | (12,426) | 2,689 | 18,699 | ||||||||
Net cash from operating activities | 65,180 | 34,815 | 112,235 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Net cash from investing activities | (628,954) | (571,954) | (294,111) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Common stock repurchased | 0 | 0 | (15,746) | ||||||||
Preferred stock redemption | 0 | (7,334) | 0 | ||||||||
Common stock options exercised | 2,069 | 4,930 | 4,464 | ||||||||
Issuance of subsidiary membership units | 0 | 500 | 0 | ||||||||
Principal payments on senior term loan | (125) | 0 | 0 | ||||||||
Stock purchase from noncontrolling interest | (41) | 0 | 0 | ||||||||
Cash dividends paid on common stock | (8,355) | (6,038) | (4,275) | ||||||||
Cash dividends paid on preferred stock | 0 | (35) | (461) | ||||||||
Net cash from financing activities | 296,617 | 580,683 | 417,767 | ||||||||
Net change in cash and cash equivalents | (267,157) | 43,544 | 235,891 | ||||||||
Cash and cash equivalents, beginning of period | 307,437 | 263,893 | 307,437 | 263,893 | 28,002 | ||||||
Cash and cash equivalents, end of period | 40,280 | 307,437 | 40,280 | 307,437 | 263,893 | ||||||
Parent Company | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income attributable to parent | 15,047 | 39,121 | 37,411 | ||||||||
Equity in undistributed earnings of subsidiaries | 11,614 | (40,324) | (45,445) | ||||||||
Stock-based compensation | 3,217 | 3,208 | 2,278 | ||||||||
Depreciation and amortization | 269 | 175 | 12 | ||||||||
Other assets | (45,406) | (6,849) | (2,101) | ||||||||
Other liabilities | 16,358 | 11,215 | 1,755 | ||||||||
Net cash from operating activities | 1,099 | 6,546 | (6,090) | ||||||||
INVESTING ACTIVITIES | |||||||||||
Investment in subsidiaries | (240) | (15,871) | (3,713) | ||||||||
Net cash from investing activities | (240) | (15,871) | (3,713) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from stock issuance | 0 | 0 | 240 | ||||||||
Common stock repurchased | 0 | 0 | (15,657) | ||||||||
Preferred stock redemption | 0 | (7,334) | 0 | ||||||||
Common stock options exercised | 1,399 | 4,930 | 4,464 | ||||||||
Withholding cash issued in lieu of restricted stock | 0 | (249) | 0 | ||||||||
Issuance of subsidiary membership units | 0 | 500 | 0 | ||||||||
Principal payments on senior term loan | (125) | 0 | 0 | ||||||||
Stock purchase from noncontrolling interest | (33) | 0 | 0 | ||||||||
Cash dividends paid on common stock | (8,355) | (6,038) | (4,275) | ||||||||
Cash dividends paid on preferred stock | 0 | (35) | (461) | ||||||||
Net cash from financing activities | 2,763 | 21,222 | 24,311 | ||||||||
Net change in cash and cash equivalents | 3,622 | 11,897 | 14,508 | ||||||||
Cash and cash equivalents, beginning of period | $ 27,463 | $ 15,566 | 27,463 | 15,566 | 1,058 | ||||||
Cash and cash equivalents, end of period | $ 31,085 | $ 27,463 | 31,085 | 27,463 | 15,566 | ||||||
Parent Company | Secured Debt | |||||||||||
FINANCING ACTIVITIES | |||||||||||
Issuance of senior term loan, net of issuance costs | 9,877 | 0 | 0 | ||||||||
Parent Company | Subordinated Debt | |||||||||||
FINANCING ACTIVITIES | |||||||||||
Issuance of senior term loan, net of issuance costs | $ 0 | $ 29,448 | $ 40,000 |
Segment Reporting - Reportable
Segment Reporting - Reportable Segments and Reconciliation (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Information About the Reportable Segments | ||||||||||||
Number of reportable segments | segment | 5 | |||||||||||
Interest income | $ 40,702 | $ 33,903 | $ 28,090 | $ 23,262 | $ 23,049 | $ 20,484 | $ 20,833 | $ 19,063 | $ 125,957 | $ 83,429 | $ 80,453 | |
Interest expense | 14,154 | 6,270 | 11,627 | |||||||||
NET INTEREST INCOME | 33,449 | 29,846 | 26,660 | 21,848 | 21,503 | 19,096 | 19,055 | 17,505 | 111,803 | 77,159 | 68,826 | |
Provision (release of allowance) for loan losses | 14,194 | (6,275) | 16,579 | |||||||||
Net interest income after provision (release of allowance) for loan losses | 97,609 | 83,434 | 52,247 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 38,294 | 62,596 | 91,837 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 72,162 | 60,210 | 61,629 | |||||||||
Other expenses | 45,226 | 37,242 | 35,512 | |||||||||
Total noninterest expense | 117,388 | 97,452 | 97,141 | |||||||||
Income before income taxes | 18,515 | 48,578 | 46,943 | |||||||||
Income taxes | 4,128 | 9,882 | 9,532 | |||||||||
Net income (loss) | 14,387 | 38,696 | 37,411 | |||||||||
Net loss attributable to noncontrolling interest | 660 | 425 | 0 | |||||||||
Net income attributable to parent | 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | 15,047 | 39,121 | 37,411 | |
Preferred dividends | 0 | 35 | 461 | |||||||||
Net income available to common shareholders | 15,047 | 39,086 | 36,950 | |||||||||
Capital expenditures | 5,364 | |||||||||||
Capital expenditures | 3,041 | 4,865 | 6,615 | |||||||||
Total assets | 3,068,850 | 2,792,449 | 3,068,850 | 2,792,449 | ||||||||
Goodwill | 3,988 | 3,988 | 3,988 | 3,988 | 2,350 | $ 19,630 | ||||||
Operating Segments | CoRe Banking | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | 125,426 | 83,023 | 75,812 | |||||||||
Interest expense | 10,920 | 4,078 | 10,400 | |||||||||
NET INTEREST INCOME | 114,506 | 78,945 | 65,412 | |||||||||
Provision (release of allowance) for loan losses | 14,194 | (6,274) | 16,649 | |||||||||
Net interest income after provision (release of allowance) for loan losses | 100,312 | 85,219 | 48,763 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 22,673 | 33,179 | 24,420 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 36,960 | 33,595 | 25,808 | |||||||||
Other expenses | 44,873 | 37,033 | 31,389 | |||||||||
Total noninterest expense | 81,833 | 70,628 | 57,197 | |||||||||
Income before income taxes | 41,152 | 47,770 | 15,986 | |||||||||
Income taxes | 8,882 | 9,154 | 1,479 | |||||||||
Net income (loss) | 32,270 | 38,616 | ||||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | ||||||||||
Net income attributable to parent | 38,616 | 14,507 | ||||||||||
Preferred dividends | 0 | 0 | ||||||||||
Net income available to common shareholders | 32,270 | 38,616 | 14,507 | |||||||||
Capital expenditures | 2,590 | |||||||||||
Capital expenditures | 400 | 6,439 | ||||||||||
Total assets | 3,014,475 | 2,804,840 | 3,014,475 | 2,804,840 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | Mortgage Banking | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | 429 | 411 | 6,269 | |||||||||
Interest expense | 0 | 0 | 3,139 | |||||||||
NET INTEREST INCOME | 429 | 411 | 3,130 | |||||||||
Provision (release of allowance) for loan losses | 0 | (1) | (70) | |||||||||
Net interest income after provision (release of allowance) for loan losses | 429 | 412 | 3,200 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 37 | 16,342 | 63,490 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 8 | 0 | 21,550 | |||||||||
Other expenses | 142 | 16 | 5,074 | |||||||||
Total noninterest expense | 150 | 16 | 26,624 | |||||||||
Income before income taxes | 316 | 16,738 | 40,066 | |||||||||
Income taxes | 77 | 4,068 | 9,862 | |||||||||
Net income (loss) | 239 | 12,670 | ||||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | ||||||||||
Net income attributable to parent | 12,670 | 30,204 | ||||||||||
Preferred dividends | 0 | 0 | ||||||||||
Net income available to common shareholders | 239 | 12,670 | 30,204 | |||||||||
Capital expenditures | 0 | |||||||||||
Capital expenditures | 0 | 99 | ||||||||||
Total assets | 34,248 | 50,202 | 34,248 | 50,202 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | Professional Services | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | 0 | (8) | 0 | |||||||||
Interest expense | 39 | 16 | 0 | |||||||||
NET INTEREST INCOME | (39) | (24) | 0 | |||||||||
Provision (release of allowance) for loan losses | 0 | 0 | 0 | |||||||||
Net interest income after provision (release of allowance) for loan losses | (39) | (24) | 0 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 22,812 | 14,931 | 5,909 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 15,276 | 10,949 | 2,993 | |||||||||
Other expenses | 5,233 | 4,095 | 1,909 | |||||||||
Total noninterest expense | 20,509 | 15,044 | 4,902 | |||||||||
Income before income taxes | 2,264 | (137) | 1,007 | |||||||||
Income taxes | 567 | (105) | 273 | |||||||||
Net income (loss) | 1,697 | (32) | ||||||||||
Net loss attributable to noncontrolling interest | 207 | 210 | ||||||||||
Net income attributable to parent | 178 | 734 | ||||||||||
Preferred dividends | 0 | 0 | ||||||||||
Net income available to common shareholders | 1,904 | 178 | 734 | |||||||||
Capital expenditures | 2,731 | |||||||||||
Capital expenditures | 26 | 0 | ||||||||||
Total assets | 14,817 | 13,210 | 14,817 | 13,210 | ||||||||
Goodwill | 3,988 | 3,988 | 3,988 | 3,988 | ||||||||
Operating Segments | Edge Ventures | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | 0 | 0 | 0 | |||||||||
Interest expense | 5 | 0 | 0 | |||||||||
NET INTEREST INCOME | (5) | 0 | 0 | |||||||||
Provision (release of allowance) for loan losses | 0 | 0 | 0 | |||||||||
Net interest income after provision (release of allowance) for loan losses | (5) | 0 | 0 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 459 | 71 | 0 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 3,336 | 1,962 | 0 | |||||||||
Other expenses | 5,192 | 2,555 | 0 | |||||||||
Total noninterest expense | 8,528 | 4,517 | 0 | |||||||||
Income before income taxes | (8,074) | (4,446) | 0 | |||||||||
Income taxes | (1,926) | (1,144) | 0 | |||||||||
Net income (loss) | (6,148) | (3,302) | ||||||||||
Net loss attributable to noncontrolling interest | 453 | 215 | ||||||||||
Net income attributable to parent | (3,087) | 0 | ||||||||||
Preferred dividends | 0 | 0 | ||||||||||
Net income available to common shareholders | (5,695) | (3,087) | 0 | |||||||||
Capital expenditures | 0 | |||||||||||
Capital expenditures | 2,202 | 0 | ||||||||||
Total assets | 12,258 | 9,914 | 12,258 | 9,914 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | Financial Holding Company | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | 146 | 15 | 3 | |||||||||
Interest expense | 3,234 | 2,188 | 261 | |||||||||
NET INTEREST INCOME | (3,088) | (2,173) | (258) | |||||||||
Provision (release of allowance) for loan losses | 0 | 0 | 0 | |||||||||
Net interest income after provision (release of allowance) for loan losses | (3,088) | (2,173) | (258) | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | 10,576 | 11,103 | 6,685 | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 16,582 | 13,704 | 11,278 | |||||||||
Other expenses | 8,049 | 6,573 | 5,265 | |||||||||
Total noninterest expense | 24,631 | 20,277 | 16,543 | |||||||||
Income before income taxes | (17,143) | (11,347) | (10,116) | |||||||||
Income taxes | (3,472) | (2,091) | (2,082) | |||||||||
Net income (loss) | (13,671) | (9,256) | ||||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | ||||||||||
Net income attributable to parent | (9,256) | (8,034) | ||||||||||
Preferred dividends | 35 | 461 | ||||||||||
Net income available to common shareholders | (13,671) | (9,291) | (8,495) | |||||||||
Capital expenditures | 43 | |||||||||||
Capital expenditures | 413 | 77 | ||||||||||
Total assets | 375,171 | 363,971 | 375,171 | 363,971 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Intercompany Eliminations | ||||||||||||
Information About the Reportable Segments | ||||||||||||
Interest income | (44) | (12) | (1,631) | |||||||||
Interest expense | (44) | (12) | (2,173) | |||||||||
NET INTEREST INCOME | 0 | 0 | 542 | |||||||||
Provision (release of allowance) for loan losses | 0 | 0 | 0 | |||||||||
Net interest income after provision (release of allowance) for loan losses | 0 | 0 | 542 | |||||||||
Noninterest Income: | ||||||||||||
Total noninterest income | (18,263) | (13,030) | (8,667) | |||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 0 | 0 | 0 | |||||||||
Other expenses | (18,263) | (13,030) | (8,125) | |||||||||
Total noninterest expense | (18,263) | (13,030) | (8,125) | |||||||||
Income before income taxes | 0 | 0 | 0 | |||||||||
Income taxes | 0 | 0 | 0 | |||||||||
Net income (loss) | 0 | 0 | ||||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | ||||||||||
Net income attributable to parent | 0 | 0 | ||||||||||
Preferred dividends | 0 | 0 | ||||||||||
Net income available to common shareholders | 0 | 0 | 0 | |||||||||
Capital expenditures | 0 | |||||||||||
Capital expenditures | 0 | $ 0 | ||||||||||
Total assets | (382,119) | (449,688) | (382,119) | (449,688) | ||||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 40,702 | $ 33,903 | $ 28,090 | $ 23,262 | $ 23,049 | $ 20,484 | $ 20,833 | $ 19,063 | $ 125,957 | $ 83,429 | $ 80,453 |
Net Interest Income | 33,449 | 29,846 | 26,660 | 21,848 | 21,503 | 19,096 | 19,055 | 17,505 | 111,803 | 77,159 | 68,826 |
Income Before Taxes | 8,337 | 2,952 | 3,650 | 3,576 | 12,675 | 14,838 | 10,836 | 10,227 | |||
Net income attributable to parent | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 9,959 | $ 11,828 | $ 9,247 | $ 8,085 | $ 15,047 | $ 39,121 | $ 37,411 |
Earnings per common share - basic (in dollars per share) | $ 0.52 | $ 0.22 | $ 0.24 | $ 0.24 | $ 0.83 | $ 1 | $ 0.79 | $ 0.70 | $ 1.23 | $ 3.32 | $ 3.13 |
Earnings per common share - diluted (in dollars per share) | $ 0.50 | $ 0.21 | $ 0.23 | $ 0.22 | $ 0.77 | $ 0.92 | $ 0.73 | $ 0.66 | $ 1.17 | $ 3.10 | $ 3.06 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 01, 2022 USD ($) shares | Aug. 31, 2022 shares | Apr. 30, 2021 USD ($) | Feb. 28, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 | Jul. 31, 2021 USD ($) bankingCenter | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Equity method investments | $ 40,013 | $ 76,223 | ||||||||
Noncontrolling interest | 975 | 307 | ||||||||
Goodwill | 3,988 | 3,988 | $ 2,350 | $ 19,630 | ||||||
Disposal group, disposed of by sale | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Branch locations sold, number | bankingCenter | 4 | |||||||||
Deposits assumed | $ 163,300 | |||||||||
Loans of branches held for sale | $ 57,800 | |||||||||
Gains on acquisition and divestiture activity | $ 10,800 | |||||||||
Flexia | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage by noncontrolling owners | 20% | |||||||||
Trabian | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage by noncontrolling owners | 20% | |||||||||
Flexia | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments for software | $ 1,000 | |||||||||
Warp Speed Holdings LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest | 37.50% | |||||||||
Cash consideration | $ 38,400 | |||||||||
Consideration issued as equity (in shares) | shares | 313,030 | |||||||||
Consideration issued as equity | $ 9,600 | |||||||||
Number of trading days | 20 days | |||||||||
Equity method investments | $ 49,400 | |||||||||
Integrated Financial Holdings, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Shares of MVB common stock to be received by IFH shareholders per share of IFH common stock (in shares) | shares | 1.21 | |||||||||
Flexia | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest | 80% | 80% | ||||||||
Purchase consideration | $ 2,500 | |||||||||
Noncontrolling interest | $ 500 | |||||||||
Trabian | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest | 80% | 80.80% | ||||||||
Purchase consideration | $ 1,600 | |||||||||
Noncontrolling interest | 400 | |||||||||
Assets acquired | 800 | |||||||||
Liabilities assumed | 700 | |||||||||
Goodwill | 1,600 | |||||||||
Intangible assets assumed | $ 600 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 28, 2023 | Jan. 25, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares authorized (in shares) | 40,000,000 | |||
Subsequent Event | Chartwell | Disposal group, disposed of by sale | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale | $ 14.4 |