Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38314 | |
Entity Registrant Name | MVB Financial Corp | |
Entity Incorporation, State or Country Code | WV | |
Entity Tax Identification Number | 20-0034461 | |
Entity Address, Address Line One | 301 Virginia Avenue | |
Entity Address, City or Town | Fairmont | |
Entity Address, State or Province | WV | |
Entity Address, Postal Zip Code | 26554 | |
City Area Code | 304 | |
Local Phone Number | 363-4800 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | MVBF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,719,823 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Central Index Key | 0001277902 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 8,278 | $ 5,290 |
Interest-bearing balances with banks | 447,557 | 34,990 |
Total cash and cash equivalents | 455,835 | 40,280 |
Investment securities available-for-sale | 329,137 | 379,814 |
Equity securities | 41,082 | 38,744 |
Loans held-for-sale | 7,009 | 23,126 |
Loans receivable | 2,312,387 | 2,372,645 |
Allowance for credit losses | (30,294) | (23,837) |
Loans receivable, net | 2,282,093 | 2,348,808 |
Premises and equipment, net | 22,407 | 23,630 |
Bank-owned life insurance | 43,746 | 43,239 |
Equity method investments | 76,413 | 76,223 |
Accrued interest receivable and other assets | 91,287 | 87,833 |
Assets from discontinued operations | 0 | 4,315 |
Goodwill | 2,838 | 2,838 |
TOTAL ASSETS | 3,351,847 | 3,068,850 |
Deposits: | ||
Noninterest-bearing | 987,555 | 1,231,544 |
Interest-bearing | 1,971,384 | 1,338,938 |
Total deposits | 2,958,939 | 2,570,482 |
Accrued interest payable and other liabilities | 31,564 | 36,112 |
Repurchase agreements | 4,798 | 10,037 |
FHLB and other borrowings | 0 | 102,333 |
Subordinated debt | 73,414 | 73,286 |
Senior term loan | 8,835 | 9,765 |
Liabilities from discontinued operations | 0 | 5,444 |
Total liabilities | 3,077,550 | 2,807,459 |
STOCKHOLDERS’ EQUITY | ||
Common stock - par value $1; 40,000,000 and 20,000,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; 13,567,839 and 12,719,823 shares issued and outstanding, respectively, as of June 30, 2023 and 13,466,281 and 12,618,265 shares issued and outstanding, respectively, as of December 31, 2022 | 13,568 | 13,466 |
Additional paid-in capital | 158,572 | 157,152 |
Retained earnings | 153,414 | 144,911 |
Accumulated other comprehensive loss | (34,464) | (37,704) |
Treasury stock - 848,016 shares as of June 30, 2023 and December 31, 2022, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 274,349 | 261,084 |
Noncontrolling interest | (52) | 307 |
Total stockholders' equity | 274,297 | 261,391 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,351,847 | $ 3,068,850 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 13,567,839 | 13,466,281 |
Common stock, shares outstanding (in shares) | 12,719,823 | 12,618,265 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 39,321 | $ 25,837 | $ 78,016 | $ 47,285 |
Interest on deposits with banks | 5,542 | 313 | 8,695 | 540 |
Interest on investment securities | 1,229 | 838 | 3,077 | 1,486 |
Interest on tax-exempt loans and securities | 939 | 1,102 | 2,006 | 2,041 |
Total interest income | 47,031 | 28,090 | 91,794 | 51,352 |
INTEREST EXPENSE | ||||
Interest on deposits | 16,450 | 661 | 26,603 | 1,317 |
Interest on short-term borrowings | 0 | 9 | 888 | 14 |
Interest on subordinated debt | 801 | 760 | 1,600 | 1,513 |
Interest on senior term loan | 198 | 0 | 392 | 0 |
Total interest expense | 17,449 | 1,430 | 29,483 | 2,844 |
NET INTEREST INCOME | 29,582 | 26,660 | 62,311 | 48,508 |
Provision (release of allowance) for credit losses | (4,235) | 5,100 | 341 | 6,380 |
Net interest income after provision (release of allowance) for credit losses | 33,817 | 21,560 | 61,970 | 42,128 |
NONINTEREST INCOME | ||||
Payment card and service charge income | 3,503 | 4,015 | 7,113 | 6,657 |
Insurance and investment services income | 78 | 218 | 170 | 472 |
Gain (loss) on sale of available-for-sale securities, net | 0 | 0 | (1,536) | 650 |
Gain (loss) on sale of equity securities, net | (294) | 100 | (294) | 100 |
Loss on derivatives, net | 0 | 0 | (100) | 0 |
Gain (loss) on sale of loans, net | (989) | 1,405 | (1,345) | 2,488 |
Holding gain (loss) on equity securities | 160 | (26) | (148) | (85) |
Compliance and consulting income | 996 | 1,180 | 2,012 | 2,414 |
Equity method investments income | 1,873 | 549 | 680 | 1,687 |
Loss on divestiture activity | (986) | 0 | (986) | 0 |
Equity method investments gain | 0 | 71 | 0 | 1,874 |
Other operating income | 2,078 | 1,872 | 3,920 | 2,406 |
Total noninterest income | 6,419 | 9,384 | 9,486 | 18,663 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 15,746 | 16,585 | 32,492 | 32,312 |
Occupancy expense | 1,090 | 907 | 1,882 | 1,879 |
Equipment depreciation and maintenance | 1,451 | 1,252 | 2,908 | 2,464 |
Data processing and communications | 1,118 | 1,055 | 2,266 | 2,071 |
Professional fees | 3,948 | 3,726 | 6,899 | 7,743 |
Insurance, tax and assessment expense | 1,131 | 614 | 2,035 | 1,150 |
Travel, entertainment, dues and subscriptions | 2,137 | 2,045 | 4,059 | 3,713 |
Other operating expenses | 3,661 | 1,788 | 6,058 | 3,897 |
Total noninterest expense | 30,282 | 27,972 | 58,599 | 55,229 |
Income before income taxes | 9,954 | 2,972 | 12,857 | 5,562 |
Income taxes | 1,956 | 699 | 2,421 | 1,379 |
Net income (loss) from continuing operations | 7,998 | 2,273 | 10,436 | 4,183 |
Income from discontinued operations before income taxes | 0 | 678 | 11,831 | 1,664 |
Income taxes | 0 | 160 | 3,049 | 385 |
Net income from discontinued operations | 0 | 518 | 8,782 | 1,279 |
Net income (loss) | 7,998 | 2,791 | 19,218 | 5,462 |
Net loss attributable to noncontrolling interest | 114 | 165 | 236 | 358 |
Net income attributable to parent | $ 8,112 | $ 2,956 | $ 19,454 | $ 5,820 |
Earnings per share from continuing operations - basic (in dollars per share) | $ 0.64 | $ 0.20 | $ 0.84 | $ 0.37 |
Earnings per share from discontinued operations - basic (in dollars per share) | 0 | 0.04 | 0.69 | 0.11 |
Earnings per common shareholder - basic (in dollars per share) | 0.64 | 0.24 | 1.54 | 0.48 |
Earnings per share from continuing operations - diluted (in dollars per share) | 0.63 | 0.19 | 0.82 | 0.35 |
Earnings per share from discontinued operations - diluted (in dollars per share) | 0 | 0.04 | 0.68 | 0.10 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.63 | $ 0.23 | $ 1.50 | $ 0.45 |
Weighted average shares outstanding - basic (in shares) | 12,689,669 | 12,176,805 | 12,656,698 | 12,135,223 |
Weighted average shares outstanding - diluted (in shares) | 12,915,294 | 12,895,581 | 12,959,725 | 12,870,892 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before noncontrolling interest | $ 7,998 | $ 2,791 | $ 19,218 | $ 5,462 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities available-for-sale | (5,381) | (16,631) | 2,323 | (34,150) |
Reclassification adjustment for gain (loss) recognized in income | 294 | 0 | 1,830 | (650) |
Change in defined benefit pension plan | 371 | 320 | 343 | 689 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 29 | 107 | 58 | 214 |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | 45 | (187) | (289) | (197) |
Other comprehensive income (loss), before tax | (4,642) | (16,391) | 4,265 | (34,094) |
Income taxes related to items of other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities available-for-sale | 1,294 | 4,194 | (558) | 8,298 |
Reclassification adjustment for gain (loss) recognized in income | (71) | 0 | (440) | 152 |
Change in defined benefit pension plan | (89) | (81) | (82) | (167) |
Reclassification adjustment for amortization of net actuarial loss recognized in income | (7) | (27) | (14) | (52) |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | (11) | 47 | 69 | 49 |
Income taxes related to items of other comprehensive income (loss): | 1,116 | 4,133 | (1,025) | 8,280 |
Total other comprehensive income (loss), net of tax | (3,526) | (12,258) | 3,240 | (25,814) |
Comprehensive income attributable to noncontrolling interest | 114 | 165 | 236 | 358 |
Comprehensive income (loss) | $ 4,586 | $ (9,302) | $ 22,694 | $ (19,994) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Impact of adopting ASC 326 | Common stock | Additional paid-in capital | Retained earnings | Retained earnings Impact of adopting ASC 326 | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders' equity attributable to parent | Total stockholders' equity attributable to parent Impact of adopting ASC 326 | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2021 | 12,934,966 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 848,016 | ||||||||||
Beginning balance at Dec. 31, 2021 | $ 275,303 | $ 12,935 | $ 143,521 | $ 138,219 | $ (3,606) | $ (16,741) | $ 274,328 | $ 975 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 2,671 | 2,864 | 2,864 | (193) | |||||||
Other comprehensive loss | (13,556) | (13,556) | (13,556) | ||||||||
Dividends on common stock | (2,059) | (2,059) | (2,059) | ||||||||
Stock-based compensation | 674 | 674 | 674 | ||||||||
Stock-based compensation related to equity method investment | 104 | 104 | 104 | ||||||||
Common stock options exercised (in shares) | 56,174 | ||||||||||
Common stock options exercised | 725 | $ 56 | 669 | 725 | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 12,991,140 | ||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 848,016 | ||||||||||
Ending balance at Mar. 31, 2022 | 263,862 | $ 12,991 | 144,968 | 139,024 | (17,162) | $ (16,741) | 263,080 | 782 | |||
Beginning balance (in shares) at Dec. 31, 2021 | 12,934,966 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 848,016 | ||||||||||
Beginning balance at Dec. 31, 2021 | 275,303 | $ 12,935 | 143,521 | 138,219 | (3,606) | $ (16,741) | 274,328 | 975 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 5,462 | ||||||||||
Other comprehensive loss | (25,814) | ||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 13,077,044 | ||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 848,016 | ||||||||||
Ending balance at Jun. 30, 2022 | 252,910 | $ 13,077 | 145,480 | 139,904 | (29,420) | $ (16,741) | 252,300 | 610 | |||
Beginning balance (in shares) at Mar. 31, 2022 | 12,991,140 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 848,016 | ||||||||||
Beginning balance at Mar. 31, 2022 | 263,862 | $ 12,991 | 144,968 | 139,024 | (17,162) | $ (16,741) | 263,080 | 782 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 2,791 | 2,956 | 2,956 | (165) | |||||||
Other comprehensive loss | (12,258) | (12,258) | (12,258) | ||||||||
Dividends on common stock | (2,076) | (2,076) | (2,076) | ||||||||
Stock-based compensation | 757 | 757 | 757 | ||||||||
Stock-based compensation related to equity method investment | 173 | 173 | 173 | ||||||||
Common stock options exercised (in shares) | 30,200 | ||||||||||
Common stock options exercised | 392 | $ 30 | 362 | 392 | |||||||
Restricted stock units vested (in shares) | 73,300 | ||||||||||
Restricted stock units vested | 0 | $ 73 | (73) | 0 | |||||||
Minimum tax withholding on restricted stock units issued (in shares) | (17,596) | ||||||||||
Minimum tax withholding on restricted stock units issued | (691) | $ (17) | (674) | (691) | |||||||
Redemption of and Stock purchase from noncontrolling interest | (40) | (33) | (33) | (7) | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 13,077,044 | ||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 848,016 | ||||||||||
Ending balance at Jun. 30, 2022 | $ 252,910 | $ 13,077 | 145,480 | 139,904 | (29,420) | $ (16,741) | 252,300 | 610 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 12,618,265 | 13,466,281 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 848,016 | 848,016 | |||||||||
Beginning balance at Dec. 31, 2022 | $ 261,391 | $ (6,642) | $ 13,466 | 157,152 | 144,911 | $ (6,642) | (37,704) | $ (16,741) | 261,084 | $ (6,642) | 307 |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 11,220 | 11,342 | 11,342 | (122) | |||||||
Other comprehensive loss | 6,766 | 6,766 | 6,766 | ||||||||
Dividends on common stock | (2,146) | (2,146) | (2,146) | ||||||||
Stock-based compensation | 831 | 831 | 831 | ||||||||
Stock-based compensation related to equity method investment | 69 | 69 | 69 | ||||||||
Common stock options exercised (in shares) | 4,450 | ||||||||||
Common stock options exercised | 70 | $ 4 | 66 | 70 | |||||||
Restricted stock units vested (in shares) | 43,882 | ||||||||||
Restricted stock units vested | 0 | $ 44 | (44) | 0 | |||||||
Minimum tax withholding on restricted stock units issued (in shares) | (13,416) | ||||||||||
Minimum tax withholding on restricted stock units issued | (243) | $ (13) | (230) | (243) | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 13,501,197 | ||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 848,016 | ||||||||||
Ending balance at Mar. 31, 2023 | $ 271,316 | $ 13,501 | 157,844 | 147,465 | (30,938) | $ (16,741) | 271,131 | 185 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 12,618,265 | 13,466,281 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 848,016 | 848,016 | |||||||||
Beginning balance at Dec. 31, 2022 | $ 261,391 | $ (6,642) | $ 13,466 | 157,152 | 144,911 | $ (6,642) | (37,704) | $ (16,741) | 261,084 | $ (6,642) | 307 |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 19,218 | ||||||||||
Other comprehensive loss | $ 3,240 | ||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 12,719,823 | 13,567,839 | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 848,016 | 848,016 | |||||||||
Ending balance at Jun. 30, 2023 | $ 274,297 | $ 13,568 | 158,572 | 153,414 | (34,464) | $ (16,741) | 274,349 | (52) | |||
Beginning balance (in shares) at Mar. 31, 2023 | 13,501,197 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 848,016 | ||||||||||
Beginning balance at Mar. 31, 2023 | 271,316 | $ 13,501 | 157,844 | 147,465 | (30,938) | $ (16,741) | 271,131 | 185 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 7,998 | 8,112 | 8,112 | (114) | |||||||
Other comprehensive loss | (3,526) | (3,526) | (3,526) | ||||||||
Dividends on common stock | (2,163) | (2,163) | (2,163) | ||||||||
Stock-based compensation | 792 | 792 | 792 | ||||||||
Stock-based compensation related to equity method investment | 104 | 104 | 104 | ||||||||
Common stock options exercised (in shares) | 3,000 | ||||||||||
Common stock options exercised | 43 | $ 3 | 40 | 43 | |||||||
Restricted stock units vested (in shares) | 86,520 | ||||||||||
Restricted stock units vested | 0 | $ 87 | (87) | 0 | |||||||
Minimum tax withholding on restricted stock units issued (in shares) | (22,878) | ||||||||||
Minimum tax withholding on restricted stock units issued | (438) | $ (23) | (415) | (438) | |||||||
Redemption of and Stock purchase from noncontrolling interest | $ 171 | 294 | 294 | (123) | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 12,719,823 | 13,567,839 | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 848,016 | 848,016 | |||||||||
Ending balance at Jun. 30, 2023 | $ 274,297 | $ 13,568 | $ 158,572 | $ 153,414 | $ (34,464) | $ (16,741) | $ 274,349 | $ (52) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends paid (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net income before noncontrolling interest | $ 19,218 | $ 5,462 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net amortization and accretion of investments | 988 | 1,320 |
Net amortization of deferred loan costs | 831 | 1,269 |
Provision (release of allowance) for credit losses | 341 | 6,380 |
Depreciation and amortization | 2,683 | 1,780 |
Stock-based compensation | 1,623 | 1,431 |
Stock-based compensation related to equity method investments | 173 | 277 |
Loans originated for sale | (402) | (28,308) |
Proceeds of loans held-for-sale sold | 23,562 | 45,361 |
Holding loss on equity securities | 148 | 85 |
(Gain) loss on sale of available-for-sale securities, net | 1,536 | (650) |
(Gain) loss on sale of equity securities, net | 294 | (100) |
Gain on sale of loans held-for-sale | (154) | (2,488) |
Loss on sale of loans held for investment | 1,499 | 0 |
Gain on sale of discontinued operations | (11,800) | 0 |
Loss on divestiture activity | 986 | 0 |
Gain on sale of other real estate owned | (138) | (2) |
Income on bank-owned life insurance | (507) | (487) |
Deferred income taxes | 59 | 12 |
Equity method investments income | (680) | (1,687) |
Equity method investments gain | 0 | (1,874) |
Return on equity method investments | 308 | 3,775 |
Other assets | (6,552) | (19,913) |
Other liabilities | (3,403) | (22,188) |
Net cash from operating activities | 30,613 | (10,545) |
INVESTING ACTIVITIES | ||
Purchases of available-for-sale investment securities | (60,425) | (67,867) |
Net maturities/paydowns of available-for-sale investment securities | 55,791 | 14,874 |
Sales of available-for-sale investment securities | 54,531 | 60,635 |
Purchases of premises and equipment | (1,213) | (2,109) |
Disposals of premises and equipment | 425 | 0 |
Net change in loans | 55,030 | (374,878) |
Proceeds of loans held for investment sold | 9,502 | 0 |
Purchases of restricted bank stock | 0 | (2,962) |
Redemptions of restricted bank stock | 0 | 2,325 |
Proceeds from maturities of certificates of deposit with banks | 0 | 2,223 |
Proceeds from sale of other real estate owned | 385 | 1,004 |
Purchase of equity securities | (300) | (2,859) |
Proceeds from sale of equity securities | 206 | 1,100 |
Net cash transferred for sale of discontinued operations | (3,935) | 0 |
Net cash transferred in divestiture activity | (8) | 0 |
Net cash from investing activities | 109,989 | (368,514) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 388,457 | 237,365 |
Net change in repurchase agreements | (5,239) | (233) |
Net change in FHLB and other borrowings | (102,333) | 0 |
Principal payments on senior term loan | (956) | 0 |
Common stock options exercised | 113 | 1,117 |
Withholding cash issued in lieu of restricted stock | (680) | (691) |
Cash dividends paid on common stock | (4,309) | (4,135) |
Redemption of noncontrolling interest | (100) | 0 |
Stock purchase from noncontrolling interest | 0 | (40) |
Net cash from financing activities | 274,953 | 233,383 |
Net change in cash and cash equivalents | 415,555 | (145,676) |
Cash and cash equivalents, beginning of period | 40,280 | 307,437 |
Cash and cash equivalents, end of period | 455,835 | 161,761 |
Cash payments for: | ||
Interest on deposits, repurchase agreements and borrowings | 30,233 | 3,450 |
Income taxes | 10,235 | 316 |
Supplemental disclosure of cash flow information: | ||
Change in unrealized holding losses on securities available-for-sale | 4,154 | 36,355 |
Restricted stock units vested | 131 | 73 |
Employee stock-based compensation tax withholding obligations | (36) | (17) |
Impact of adopting ASC 326, net of tax | 6,642 | 0 |
Creation of servicing assets from loan sales | 406 | 0 |
Loans transferred to loans held-for-sale | $ 7,909 | $ 7,957 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Note 1 – Nature of Operations and Basis of Presentation Business and Organization MVB Financial Corp. is a financial holding company organized in 2003 as a West Virginia corporation that operates principally through its wholly-owned subsidiary, MVB Bank, Inc. (the “Bank”). The Bank’s consolidated subsidiaries include MVB Edge Ventures, LLC (“Edge Ventures”), Paladin Fraud, LLC (“Paladin Fraud”) and MVB Insurance, LLC, (“MVB Insurance”). The Bank owns a controlling interest in Trabian Technology, Inc. (“Trabian”). Edge Ventures wholly-owns Victor Technologies, Inc. (“Victor”) and MVB Technology, LLC ("MVB Technology"). The Bank also owns an equity method investment in Intercoastal Mortgage Company, LLC (“ICM”) and MVB Financial Corp. owns equity method investments in Warp Speed Holdings, LLC (“Warp Speed”) and Ayers Socure II, LLC (“Ayers Socure II”). Edge Ventures serves as a management company providing oversight, alignment and structure for MVB’s Fintech companies and allocates resources to help incubate venture businesses and technologies acquired and developed by MVB. Through our professional services entities, which include Paladin Fraud and Trabian, we provide consulting solutions to assist Fintech and corporate clients in building digital products and meeting their fraud defense needs. In February 2023, we completed the sale of the Bank’s wholly-owned subsidiary, ProCo Global, Inc. (“Chartwell,” which does business under the registered trade name Chartwell Compliance). In May 2023, MVB entered into an agreement with Flexia, to facilitate the divestiture of MVB’s interests in the ongoing business of Flexia. Refer to Note 14 – Acquisition & Divestiture Activity . 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 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, digital assets, 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, lower 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. Principles of Consolidation and Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2022 has been derived from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2022 Form 10-K. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 an 80.8% interest in Trabian, which grants us a controlling interest. Accordingly, we are required to consolidate 100% of Trabian within the consolidated financial statements. The remaining interests of Trabian are accounted for separately as noncontrolling interest 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 June 30, 2023, we held 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 credit losses (“ACL”) and the allowance for loan losses (“ALL”) for current and previous periods, respectively. 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. Recent Accounting Pronouncements 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. As of June 30, 2023, all loans and other relevant financial instruments that referenced LIBOR have been transitioned to the secured overnight financing rate (“SOFR”). 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 . The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot recognize and measure a contractual sale restriction as a separate unit of account and require additional disclosures related to equity securities with contractual sale restrictions. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact our consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method . The amendments allow registrants the option to apply the proportional amortization method to account for all types of investments in tax credit structures if certain conditions are met. Prior to these amendments, the option to use the proportional amortization method was limited to only investments in low-income-housing tax credit structures. Under the proportional amortization method, entities amortize the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognize the net amortization and income tax credits and other benefits in the income statement as a component of income tax expense or benefit. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact on our consolidated financial statements. Adoption of New Accounting Pronouncement In January 2023, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures all of which clarify codification and correct unintended application of the guidance. Collectively, upon adoption, these updates comprise Accounting Standards Codification Topic 326 Financial Instruments - Credit Losses ("ASC 326"). 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 deteriorated (“PCD”) 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. We formed a cross-functional implementation team. This cross-functional team has completed testing the model and has executed the implementation plan, which included assessment and documentation of processes, internal controls and data sources; model testing and documentation; and system configuration, among other things. We completed the process of implementing a third-party vendor solution to assist us in the application of this standard. Adoption of this pronouncement resulted in an increase in the ACL 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. On January 1, 2023, we adopted ASU 2016-13 using the modified retrospective method for loans, leases and off-balance sheet credit exposures. Adoption of this guidance resulted in a $10.0 million increase in the ACL, comprised of increases in the ACL for loans of $8.9 million and the ACL for unfunded commitments of $1.1 million, with $1.2 million of the increase reclassified from the amortized cost basis of PCD financial assets. This increase was offset by $2.1 million related to tax effect, resulting in a cumulative adjustment to retained earnings of $6.6 million. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the incurred loss model. The ACL for the majority of the Bank's loans and leases was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a one-year straight-line reversion period. The Bank’s current ACL fluctuates over time due to macroeconomic conditions and forecasts as well as the size and composition of the loan portfolios. We adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”). In accordance with the pronouncement, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. As mentioned above, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $1.2 million to the ACL. The remaining noncredit discount (based on the adjusted amortized cost basis) is being accreted into interest income at a rate that approximates the effective interest rate beginning on January 1, 2023. With regard to PCD assets, because we elected to disaggregate the former PCI pools and no longer considers these pools to be the unit of account, contractually delinquent PCD loans are now being reported as nonaccrual loans using the same criteria as other loans. In addition to the aforementioned elections, we made the following elections at adoption: l to not measure an ACL for accrued interest receivable and instead elected to reverse interest income on those loans that are 90 days past due; l to exclude accrued interest receivable from the amortized cost basis of financial instruments subject to ASC 326 and to separately state the balance of accrued interest receivable and other assets on the consolidated balance sheet; l as a practical expedient, elected to use the fair value of collateral when determining the ACL for loans if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty (collateral-dependent loans). l to update our troubled debt restructuring ("TDR") disclosures in accordance with ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures, which eliminated the accounting guidance for TDRs for creditors. In June 2023, we adopted ASU 2022-01, Fair Value Hedging – Portfolio Layer Method , upon entering into an interest rate swap to hedge the fair value of fixed rate mortgages included in a closed portfolio for changes in the SOFR benchmark interest rate component of the mortgages. This ASU amends the guidance in ASU 2017-12 and expands what it now calls the portfolio layer method (previously the last-of-layer method) to allow entities to hedge multiple layers of a closed portfolio of assets. It also allows for the use of an amortizing notional swap when entering into a portfolio layer method hedge. Thus, the interest rate swap is considered a hedge of a single layer of the closed portfolio of fixed rate loans. We applied this ASU to the derivatives we entered into during June 2023 as further described in Note 10 - Fair Value Measurements below . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2 – Investment Securities The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown: June 30, 2023 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 44,844 $ 6 $ (6,376) $ 38,474 United States sponsored mortgage-backed securities 65,715 — (11,349) 54,366 United States treasury securities 106,552 — (8,523) 98,029 Municipal securities 136,352 4,232 (19,518) 121,066 Corporate debt securities 9,071 — (170) 8,901 Other debt securities 7,500 — — 7,500 Total debt securities 370,034 4,238 (45,936) 328,336 Other securities 801 — — 801 Total investment securities available-for-sale $ 370,835 $ 4,238 $ (45,936) $ 329,137 December 31, 2022 (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 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown: June 30, 2023 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 4,704 $ 4,701 After one year, but within five years 112,082 103,496 After five years, but within ten years 39,867 35,626 After ten years 213,381 184,513 Total $ 370,034 $ 328,336 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled. Investment securities with a carrying value of $212.0 million and $91.3 million at June 30, 2023 and December 31, 2022, 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 June 30, 2023, the details of which are included in the following table. We evaluate available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. When determining the allowance for credit losses 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. Although these securities would result in a pre-tax loss of $45.9 million if sold at June 30, 2023, declines in the fair value of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole, rather than credit-related conditions. Therefore, we have no allowance for credit losses as of June 30, 2023. The following tables show available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: June 30, 2023 (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 (25) $ 272 $ — $ 36,479 $ (6,376) United States sponsored mortgage-backed securities (48) 2,362 (22) 52,004 (11,327) United States treasury securities (23) — — 98,028 (8,523) Municipal securities (155) 2,890 (6,810) 85,784 (12,708) Corporate debt securities (7) 2,429 (142) 1,472 (28) Total $ 7,953 $ (6,974) $ 273,767 $ (38,962) 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) — — Total $ 108,486 $ (10,446) $ 212,317 $ (39,353) The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds from sales of available-for-sale securities $ — $ — $ 54,531 $ 60,635 Gains, gross — — — 717 Losses, gross — — 1,536 67 Proceeds from sales of equity securities $ 206 $ 1,100 $ 206 $ 1,100 Gain, gross — 100 — 100 Losses, gross 294 — 294 — Unrealized holding gains (losses) on equity securities 160 (26) (148) (85) |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 3 – Loans and Allowance for Credit Losses The following table presents the components of loans as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Commercial: Business $ 845,107 $ 851,072 Real estate 616,034 632,839 Acquisition, development and construction 106,906 126,999 Total commercial $ 1,568,047 $ 1,610,910 Residential real estate 674,090 606,970 Home equity lines of credit 16,651 18,734 Consumer 51,766 131,566 Total loans, excluding PCI 2,310,554 2,368,180 Purchased credit impaired loans: Residential real estate — 2,482 Total purchased credit impaired loans — 2,482 Total Loans $ 2,310,554 $ 2,370,662 Deferred loan origination costs, net 1,833 1,983 Loans receivable $ 2,312,387 $ 2,372,645 We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments. With the adoption of ASU 2016-13 on January 1, 2023, we modified our loan portfolio segmentation to be based primarily on call report codes, 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. The ACL portfolio segments are aggregated into broader segments in order to present informative yet concise disclosures within this document, as follows: Commercial business loans – Commercial business loans are made to provide funds for equipment and general corporate needs, as well as to finance owner-occupied real estate, and to finance future cash flows of Federal government lease contracts. Repayment of these loans primarily uses the funds obtained from the operation of the borrower’s business. Commercial business loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. This segment includes both internally originated and purchased participation loans. Credit risk arises from the successful operation of the business, which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Commercial real estate loans – Commercial real estate loans consist of non-owner occupied properties, such as investment properties for retail, office and multifamily with a history of occupancy and cash flow. This segment includes both internally originated and purchased participation loans. These loans carry the risk of adverse changes in the local economy and a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow. Commercial acquisition, development and construction loans – Commercial acquisition, development and construction loans are intended to finance the construction of commercial and residential properties, 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. Residential real estate – This residential real estate subsegment contains permanent and construction mortgage loans principally to consumers, but also includes loans to residential real estate developers, secured by residential real estate, which we previously presented under commercial acquisitions, development and construction loans under the incurred loss model. Residential real estate loans to consumers 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. Residential real estate secured loans to developers 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. 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 Consumer segment as this segment includes only those loans provided to consumers that cannot typically obtain financing through traditional lenders. As such, these loans are subject to a higher risk of default than the typical consumer loan. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with the incurred loss model. 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 the periods shown: 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 real estate — — 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 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods shown: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Business $ 11,015 $ — $ — $ 10,741 $ — $ — Real estate 1,597 16 15 1,681 33 33 Acquisition, development and construction 306 — — 314 — — Total commercial 12,918 16 15 12,736 33 33 Residential 8,374 5 4 8,372 10 9 Home equity 159 — — 174 — — Consumer 754 — — 593 — — Total $ 22,205 $ 21 $ 19 $ 21,875 $ 43 $ 42 As of June 30, 2023, the Bank’s other real estate owned balance totaled $0.9 million, substantially all of which was related to our acquisition of The First State Bank (“First State”) in 2020. The Bank held $0.8 million, or 89%, of other real estate owned as a result of the foreclosure of two unrelated commercial loans. The remaining $0.1 million, or 11%, consists of two foreclosed residential real estate property. As of June 30, 2023, there were two residential mortgages in the process of foreclosure with loan balances totaling $0.2 million. Bank management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. Loans categorized as “Pass” rated have adequate sources of repayment, with little identifiable risk of collection and general conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. Loans categorized as “Special Mention” rated have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. Loans categorized as “Substandard” rated are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans categorized as “Doubtful” rated have all the weakness inherent in those classified Substandard with the added characteristic that the weakness makes collections or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. The Special Mention rated category includes assets that are currently protected but are potentially weak, resulting in undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the “Loss” category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories, unless a specific action, such as past due status, bankruptcy, repossession or death, occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Bank's Credit Department ensures that a review of all commercial relationships of $1.0 million or more is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships in excess of $3.0 million or criticized relationships. The Bank's Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the amortized cost of loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system by vintage year as of the period shown: Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total June 30, 2023 Commercial business: Risk rating: Pass $ 67,617 $ 265,932 $ 141,159 $ 29,974 $ 17,500 $ 66,225 $ 235,707 $ — $ 824,114 Special Mention — 1,395 83 711 98 4,502 — — 6,789 Substandard — 232 475 — 5,290 5,485 — — 11,482 Doubtful — — 1,144 264 — 1,314 — — 2,722 Total commercial business loans $ 67,617 $ 267,559 $ 142,861 $ 30,949 $ 22,889 $ 77,526 $ 235,707 $ — $ 845,107 Gross charge-offs $ — $ — $ 116 $ 141 $ — $ 11 $ — $ 268 Commercial real estate: Risk rating: Pass $ 32,028 $ 157,930 $ 231,805 $ 12,251 $ 26,729 $ 113,943 $ — $ — $ 574,686 Special Mention — — — — 6,859 15,123 — — 21,982 Substandard — — — — — 19,366 — — 19,366 Doubtful — — — — — — — — — Total commercial real estate loans $ 32,028 $ 157,930 $ 231,805 $ 12,251 $ 33,588 $ 148,432 $ — $ — $ 616,034 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 1,943 $ 32,930 $ 44,498 $ 21,945 $ 3,128 $ 1,653 $ — $ — $ 106,097 Special Mention — — — — — 10 — — 10 Substandard — — — — — 799 — — 799 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 1,943 $ 32,930 $ 44,498 $ 21,945 $ 3,128 $ 2,462 $ — $ — $ 106,906 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total June 30, 2023 Residential Real Estate: Risk rating: Pass $ 61,630 $ 426,251 $ 105,465 $ 39,932 $ 7,549 $ 25,496 $ — $ — $ 666,323 Special Mention — — — 3,924 1,382 735 — — 6,041 Substandard — — — 83 153 912 — — 1,148 Doubtful — — — — — 578 — — 578 Total residential real estate loans $ 61,630 $ 426,251 $ 105,465 $ 43,939 $ 9,084 $ 27,721 $ — $ — $ 674,090 Gross charge-offs $ — $ — $ — $ — $ — $ 22 $ — $ — $ 22 Home equity lines of credit: Risk rating: Pass $ — $ 37 $ — $ — $ 174 $ 866 $ 15,265 $ — $ 16,342 Special Mention — — — — — 75 150 — 225 Substandard — — — — — 84 — — 84 Doubtful — — — — — — — — — Total home equity lines of credit loans $ — $ 37 $ — $ — $ 174 $ 1,025 $ 15,415 $ — $ 16,651 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ 8,860 $ 33,732 $ 8,011 $ 2 $ 56 $ 87 $ — $ — $ 50,748 Special Mention — — — — — — — — — Substandard 160 801 54 — — 2 — — 1,017 Doubtful — — — — — 1 — — 1 Total consumer loans $ 9,020 $ 34,533 $ 8,065 $ 2 $ 56 $ 90 $ — $ — $ 51,766 Gross charge-offs $ 217 $ 6,772 $ 1,268 $ — $ — $ — $ — $ — $ 8,257 Total: Risk rating: Pass $ 172,078 $ 916,812 $ 530,938 $ 104,104 $ 55,136 $ 208,270 $ 250,972 $ — $ 2,238,310 Special Mention — 1,395 83 4,635 8,339 20,445 150 — 35,047 Substandard 160 1,033 529 83 5,443 26,648 — — 33,896 Doubtful — — 1,144 264 — 1,893 — — 3,301 Total consumer loans $ 172,238 $ 919,240 $ 532,694 $ 109,086 $ 68,918 $ 257,256 $ 251,122 $ — $ 2,310,554 Gross charge-offs $ 217 $ 6,772 $ 1,384 $ 141 $ — $ 33 $ — $ — $ 8,547 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 the periods shown: (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 real estate 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 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A complete review is presented to the Chief Credit Officer and/or the Special Asset Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, becomes likely the borrower cannot or will not make scheduled principal or interest payments, full repayment of principal and interest is not expected or the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status unless we believe it is likely the accrued interest will be collected. Any payments subsequently received are applied to the principal. All principal and interest due must be paid up-to-date and the Bank is reasonably sure of future satisfactory payment performance to remove a loan from non-accrual status. Usually, this requires the receipt of six The following table presents the amortized cost basis in loans by aging category and accrual status as of the periods shown: (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 Non Accrual with No Credit Loss Interest Income Recognized June 30, 2023 Commercial Business $ 834,448 $ 239 $ 4,554 $ 5,866 $ 10,659 $ 845,107 $ 10,801 $ — $ 3,825 $ — Real estate 616,034 — — — — 616,034 — — — — Acquisition, development and construction 106,107 799 — — 799 106,906 — — — — Total commercial 1,556,589 1,038 4,554 5,866 11,458 1,568,047 10,801 — 3,825 — Residential real estate 672,516 — — 1,574 1,574 674,090 1,659 — — — Home equity lines of credit 16,651 — — — — 16,651 169 — — — Consumer 43,140 5,320 2,291 1,015 8,626 51,766 1,017 — — — Total loans $ 2,288,896 $ 6,358 $ 6,845 $ 8,455 $ 21,658 $ 2,310,554 $ 13,646 $ — $ 3,825 $ — The following table presents the aging of recorded investment in loans, including accruing and nonaccrual loans, as of the period shown: (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 real estate 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 $ — The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the ACL when management believes the loan balance is uncollectible. Accrued interest receivable is excluded from the estimate of credit losses. Management determines the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit behaviors along with model judgments provide the basis for the estimation of expected credit losses. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term, as well as for changes in environmental conditions, such as changes in economic conditions, property values or other relevant factors. The Bank’s methodology for determining the ACL is based on the requirements of ASC 326 for loans individually evaluated for impairment and ASC Subtopic 450-20 - Contingencies for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Credit Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ACL. The ACL is calculated on a collective basis when similar risk characteristics exist. The ACL for the majority of loans and leases was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a one-year straight-line reversion period with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type. Expected credit loss rates were estimated using a regression model based on historical data from peer banks which incorporates a third-party vendor’s economic forecast to predict the change in credit losses. As of June 30, 2023, the Bank expects the markets in which it operates will experience a decline in economic conditions and an increase in the unemployment rate and level of delinquencies, over the next one to two years. The ACL for only one portfolio segment consisting entirely of automotive loans to consumers was calculated under the remaining life methodology using straight-line amortization over the remaining life of the portfolio. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When Bank management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of the periods shown: (Dollars in thousands) Real Estate Vehicles and Equipment Assignment of Cash Flow Accounts Receivable Other Totals Allowance for Credit Losses June 30, 2023 Commercial Business $ 1,434 $ 3,952 $ 900 $ 238 $ 264 $ 6,788 $ 2,666 Total commercial $ 1,434 $ 3,952 $ 900 $ 238 $ 264 $ 6,788 $ 2,666 Residential 1,599 — — — — 1,599 391 Consumer — 1,015 — — — 1,015 199 Total $ 3,033 $ 4,967 $ 900 $ 238 $ 264 $ 9,402 $ 3,256 Collateral value $ 2,503 $ 9,312 $ — $ 178 $ 451 $ 12,444 The Bank evaluates certain 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 are evaluated collectively for expected credit losses by applying allocation rates derived from the Bank’s historical losses specific to these loans. The reserve was immaterial at June 30, 2023 and $0.1 million at December 31, 2022. Management has identified a number of additional qualitative factors which it uses to supplement the estimated losses derived from the loss rate methodologies employed within the CECL model because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from the loss rate methodologies. 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. For accounting methodologies related to the incurred loss method previously used before the adoption of ASC 326, refer to Note 1 - Summary of Significant Accounting Policies and Note 3 - Loans and Allowance for Loan Losses of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data , of the 2022 Form 10-K. To estimate the liability for off-balance sheet credit exposures, Bank management analyzed the portfolios of unfunded commitments based on the same segmentation used for the allowance for credit losses calculation. The estimated funding rate for each segment was derived from a funding rate study created by a third-party vendor which analyzed funding of various loan types over time to develop industry benchmarks at the call report code level. Once the estimated future advances were calculated, the allocation rate applicable to that portfolio segment was applied in the same manner as those used for the allowance for credit loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. As of June 30, 2023 and December 31, 2022, the liability for unfunded commitments related to loans held for investment was $1.4 million and $0.5 million, respectively. 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 ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL. The following table presents the balance and activity for the primary segments of the ACL as of the periods shown: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL, prior to adoption of ASC 326, at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Impact of adopting ASC 326 (126) (2,846) 288 (2,684) 3,889 (5) 6,482 7,682 Provision (release of allowance) for credit losses 2,186 180 355 2,721 (86) (14) (2,153) 468 Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Charge-offs (268) — — (268) (22) — (8,257) (8,547) Recoveries 35 13 — 48 — 2 5,587 5,637 ACL at June 30, 2023 $ 11,308 $ 3,051 $ 1,707 $ 16,066 $ 7,168 $ 114 $ 6,946 $ 30,294 (Dollars in thousands) ACL balance at March 31, 2023 $ 9,918 $ 3,177 $ 1,640 $ 14,735 $ 7,618 $ 119 $ 13,041 $ 35,513 Provision (release of allowance) for credit losses 1,504 (133) 67 1,438 (450) (6) (4,969) (3,987) Charge-offs (127) — — (127) — — (3,573) (3,700) Recoveries 13 7 — 20 — 1 2,447 2,468 ACL balance at June 30, 2023 $ 11,308 $ 3,051 $ 1,707 $ 16,066 $ 7,168 $ 114 $ 6,946 $ 30,294 During the three and six months ended June 30, 2023, there was a $0.2 million and $0.1 million release of allowance related to unfunded commitments, respectively. Substantially all of the charge-offs during three and six months ended June 30, 2023 are related to our subprime automobile portfolio of loans. The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 948 $ 128 $ 2,427 $ 17,603 Charge-offs — — — — — — (3,652) (3,652) Recoveries 10 62 — 72 — 4 1,664 1,740 Provision (release) 40 1,488 (15) 1,513 824 9 4,697 7,043 ALL balance at June 30, 2022 $ 8,077 $ 6,641 $ 967 $ 15,685 $ 1,772 $ 141 $ 5,136 $ 22,734 Individually evaluated for impairment $ 1,076 $ 223 $ — $ 1,299 $ 84 $ — $ 212 $ 1,595 Collectively evaluated for impairment $ 7,001 $ 6,418 $ 967 $ 14,386 $ 1,688 $ 141 $ 4,924 $ 21,139 (Dollars in thousands) ALL balance at March 31, 2022 $ 6,869 $ 5,566 $ 735 $ 13,170 $ 1,127 $ 131 $ 3,766 $ 18,194 Charge-offs — — — — — — (2,529) (2,529) Recoveries 9 55 — 64 — 2 1,289 1,355 Provision 1,199 1,020 232 2,451 645 8 2,610 5,714 ALL balance at June 30, 2022 $ 8,077 $ 6,641 $ 967 $ 15,685 $ 1,772 $ 141 $ 5,136 $ 22,734 The following table presents the primary segments of our loan portfolio as of the period shown: Commercial Residential Home Equity Lines of Credit Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial June 30, 2022 Individually evaluated for impairment $ 11,953 $ 1,182 $ 1,069 $ 14,204 $ 8,407 $ 198 $ 831 $ 23,640 Collectively evaluated for impairment 818,227 696,454 111,187 1,625,868 432,154 19,992 107,054 2,185,068 Total Loans $ 830,180 $ 697,636 $ 112,256 $ 1,640,072 $ 440,561 $ 20,190 $ 107,885 $ 2,208,708 The ACL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the portfolio segments, the related loss estimation methodologies and other qualitative factors, as well as the consistency in the application of assumptions, result in an ACL that is representative of the risk found in the components of the portfolio at any given date. Purchased Credit Impaired Loans The carrying amount of purchased credit impaired loans ("PCI") outstanding at June 30, 2022 was $5.8 million. The following table presents the accretable yield, or income expected to be collected, during the periods shown: (Dollars in thousands) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Beginning balance $ 6,253 $ 6,505 Accretion of income (985) (1,793) Accretion from disposals (1,041) (1,041) Disposals (1,271) (1,271) Other changes in expected cash flows (1,047) (491) Ending balance 1,909 1,909 The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the PCI loan portfolio as of the periods indicated: Commercial Residential Consumer Total (Dollars in thousands) Business Real Estate Total Commercial ALL balance as of December 31, 2021 — — — 544 119 663 Release — — — (544) (119) (663) ALL balance as of June 30, 2022 — — — — — — Collectively evaluated for impairment — — — — — — (Dollars in thousands) ALL balance as of March 31, 2022 112 53 165 323 126 614 Release (112) (53) (165) (323) (126) (614) ALL balance as of June 30, 2022 — — — — — — Loan Modifications for Borrowers Experiencing Financial Difficulty Occasionally, the Bank modifies loans to borrowers in financial distress by providing concessions that allow for the borrower to lower their payment obligations for a defined period, these may include, but are not limited to: principal forgiveness, payment delays, term extensions, interest rate reductions and any combinations of the preceding. The following tables summarize the amortized cost basis of loans that were modified during three and six months ended June 30, 2023: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable June 30, 2023 Commercial Business $ — $ 4,563 $ — $ — $ 4,563 1 % Real estate — 11,376 — — 11,376 2 % Total commercial — 15,939 — — 15,939 1 % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 15,939 $ — $ — $ 15,939 1 % The above table presents the amortized cost basis of loans at June 30, 2023 that were experiencing financial difficulty and modified during the three and six months ended June 30, 2023, by class and by type of modification. Also presented above is the percentage of the amortized cost basis of lo |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,666 17,549 Software 6,598 6,019 Construction in progress 521 508 Leasehold improvements 2,836 2,836 44,479 43,770 Accumulated depreciation (22,072) (20,140) Premises and equipment, net $ 22,407 $ 23,630 We lease certain premises and equipment under operating and finance leases. At June 30, 2023, we had lease liabilities totaling $14.5 million and right-of-use assets totaling $13.3 million, substantially all of which $13.2 million was related to operating leases. At June 30, 2023, the weighted-average remaining lease term for operating leases was 11.1 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.0%. 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%. Lease liabilities and right-of-use assets are reflected in other liabilities other assets The following table presents lease costs for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Amortization of right-of-use assets, finance leases $ 1 $ 14 $ 7 $ 29 Operating lease cost 446 445 896 890 Short-term lease cost 2 8 8 14 Variable lease cost 10 10 19 19 Sublease income (87) — (174) — Total lease cost $ 372 $ 477 $ 756 $ 952 For operating leases with initial or remaining terms of one year or more as of June 30, 2023, the following table presents future minimum payments for the twelve month periods ended June 30: (Dollars in thousands) Operating Leases 2024 $ 829 2025 1,621 2026 1,618 2027 1,594 2028 1,625 2029 and thereafter 10,111 Total future minimum lease payments $ 17,398 Less: Amounts representing interest (2,921) Present value of net future minimum lease payments $ 14,477 Future minimum payments on finance leases as of June 30, 2023 were not material. |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,666 17,549 Software 6,598 6,019 Construction in progress 521 508 Leasehold improvements 2,836 2,836 44,479 43,770 Accumulated depreciation (22,072) (20,140) Premises and equipment, net $ 22,407 $ 23,630 We lease certain premises and equipment under operating and finance leases. At June 30, 2023, we had lease liabilities totaling $14.5 million and right-of-use assets totaling $13.3 million, substantially all of which $13.2 million was related to operating leases. At June 30, 2023, the weighted-average remaining lease term for operating leases was 11.1 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.0%. 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%. Lease liabilities and right-of-use assets are reflected in other liabilities other assets The following table presents lease costs for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Amortization of right-of-use assets, finance leases $ 1 $ 14 $ 7 $ 29 Operating lease cost 446 445 896 890 Short-term lease cost 2 8 8 14 Variable lease cost 10 10 19 19 Sublease income (87) — (174) — Total lease cost $ 372 $ 477 $ 756 $ 952 For operating leases with initial or remaining terms of one year or more as of June 30, 2023, the following table presents future minimum payments for the twelve month periods ended June 30: (Dollars in thousands) Operating Leases 2024 $ 829 2025 1,621 2026 1,618 2027 1,594 2028 1,625 2029 and thereafter 10,111 Total future minimum lease payments $ 17,398 Less: Amounts representing interest (2,921) Present value of net future minimum lease payments $ 14,477 Future minimum payments on finance leases as of June 30, 2023 were not material. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2023 | |
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 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in a quarterly 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%, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. 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 presents summarized income statement information for ICM for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Total revenues $ 12,239 $ 22,063 $ 21,645 $ 44,179 Net income (loss) (1,089) 1,938 $ (4,171) $ 5,169 Gain on sale of loans 7,240 14,872 $ 12,688 $ 29,961 Volume of loans sold 409,222 692,553 $ 712,004 $ 1,380,646 Our ownership percentage of ICM is 40% and it was determined that we 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 ICM's net loss totaled $0.4 million and $1.7 million for the three and six months ended June 30, 2023, respectively and our share of ICM's net income totaled $0.7 million and $2.0 million for the three and six months ended June 30, 2022 , respectively. As of June 30, 2023 and December 31, 2022 , the mortgage pipeline was $631.9 million an d $678.3 million, respectively. Warp Speed The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown: (Dollars in thousands) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Total revenues $ 39,816 $ 75,333 Net income 6,243 8,925 Gain on sale of loans 12,464 25,146 Volume of loans sold 307,999 598,206 Our ownership percentage of Warp Speed is 37.5% and it was determined that we 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. Our share of Warp Speed's net income totaled $2.3 million and $3.3 million for the three and six months ended June 30, 2023, respectively. As of June 30, 2023 , the mortgage pipeline was $116.9 million . Ayers Socure II Our ownership percentage of Ayers Socure II is 10% and it was determined that we have significant influence over the company. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the three and six months ended June 30, 2023 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rules 3-09 and 4-08(g) of Regulation S-X. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits The following table presents the components of deposits as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 987,555 $ 1,231,544 Interest-bearing demand 639,814 720,074 Savings and money markets 624,276 284,447 Time deposits, including CDs and IRAs 707,294 334,417 Total deposits $ 2,958,939 $ 2,570,482 Time deposits that meet or exceed the FDIC insurance limit $ 2,414 $ 4,386 The following table presents the maturities of time deposits for the twelve month periods ended June 30: (Dollars in thousands) 2024 $ 402,287 2025 300,347 2026 1,617 2027 844 2028 1,959 Thereafter 240 Total $ 707,294 As of June 30, 2023, overdrawn deposit accounts totaling $3.4 million were reclassified as loan balances. |
Borrowed Funds
Borrowed Funds | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, Pennsylvania. As of June 30, 2023, the Bank's maximum borrowing capacity with the FHLB was $766.4 million and the remaining borrowing capacity was $753.1 million, with the difference being deposit letters of credit. Short-term borrowings As of June 30, 2023, the Bank had no short-term borrowings with the FHLB and no borrowings under the federal funds rate purchased outstanding. As of December 31, 2022, the Bank had $102.3 million short-term borrowings with the FHLB and no borrowings under the federal funds rate purchased outstanding. The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ — $ 102,333 Average balance during the period 35,347 15,494 Maximum month-end balance — 102,333 Weighted-average rate during the period 5.07 % 2.82 % Weighted-average rate at end of period — % 4.45 % Long-term borrowings As of June 30, 2023 and December 31, 2022, the Bank had no long-term borrowings with the FHLB or the Federal Reserve Bank. Repurchase agreements Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase (“repurchase agreements”) with clients representing funds deposited by clients, on an overnight basis, that are collateralized by investment securities owned by us. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between us and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in liabilities consist of client accounts and securities which are pledged on an individual security basis. We monitor the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected in the amount of cash received in connection with the transaction. The primary risk with our repurchase agreements is the market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. As of June 30, 2023 and December 31, 2022, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $4.9 million and $10.4 million at June 30, 2023 and December 31, 2022, respectively, and were comprised of United States government agency securities and United States sponsored mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 4,798 $ 10,037 Average balance during the period 6,514 10,987 Maximum month-end balance 10,041 12,680 Weighted-average rate during the period 0.03 % 0.05 % Weighted-average rate at end of period 0.01 % 0.06 % Subordinated debt The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 73,414 $ 73,286 Average balance during the period 73,350 73,159 Maximum month-end balance 73,414 73,286 Weighted-average rate during the period 4.40 % 4.20 % Weighted-average rate at end of period 3.97 % 3.97 % In September 2021, we completed the private placement of $30.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 254 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In November 2020, we completed the private placement of $40.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 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 $4.0 million Floating Rate, Trust Preferred Securities through our MVB Financial Statutory Trust I subsidiary (the “Trust”). We established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by us since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 0.26% plus Three-Month Term SOFR. 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. Senior term loan The following table presents information related to senior term loan as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 8,835 $ 9,765 Average balance during the period 9,557 2,328 Maximum month-end balance 9,768 9,886 Weighted-average rate during the period 8.27 % 7.00 % Weighted-average rate at end of period 8.57 % 7.44 % |
Pension and Supplemental Execut
Pension and Supplemental Executive Retirement Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Supplemental Executive Retirement Plans | Note 8 – Pension and Supplemental Executive Retirement Plans 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 as of both June 30, 2023 and December 31, 2022, respectively. Service costs were not material for any periods covered by this report. The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of June 30, 2023 and 2022 for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Interest cost $ 113 $ 85 226 170 Expected return on plan assets (164) (167) (328) (334) Amortization of net actuarial loss 29 107 58 214 Net periodic benefit (income) cost $ (22) $ 25 $ (44) $ 50 Contributions paid $ — $ — $ — $ — There was no service cost or amortization of prior service cost for the three and six months ended June 30, 2023 and 2022. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 9 – Fair Value of Financial Instruments The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown: (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) June 30, 2023 Financial Assets: Cash and cash equivalents $ 455,835 $ 455,835 $ 455,835 $ — $ — Securities available-for-sale 329,137 329,137 — 294,719 34,418 Equity securities 41,082 41,082 4,837 — 36,245 Loans held-for-sale 7,009 7,009 — 7,009 — Loans receivable, net 2,282,093 2,158,860 — — 2,158,860 Servicing rights 1,911 1,972 — — 1,972 Interest rate swap 9,372 9,372 — 9,372 — Fair value hedge 219 219 — 219 — Accrued interest receivable 16,102 16,102 — 2,391 13,711 FHLB Stock 2,168 2,168 — 2,168 — Bank-owned life insurance 43,746 43,746 — 43,746 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 2,958,939 $ 2,623,395 $ — $ 2,623,395 $ — Repurchase agreements 4,798 4,798 — 4,798 — Interest rate swap 8,429 8,429 — 8,429 — Accrued interest payable 1,809 1,809 — 1,809 — Senior term loan 8,835 8,667 — 8,667 — Subordinated debt 73,414 63,539 — 63,539 — 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 rights 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 — FHLB Stock 9,966 9,966 — 9,966 — 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 — |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time of our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. The methods of determining the fair value of assets and liabilities presented in this footnote are consistent with our methodologies disclosed in Note 1 - Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data , of the 2022 Form 10-K. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following measurements are made on a recurring basis. Available-for-sale investment securities – Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level I securities include those traded on an active exchange, such as the New York Stock Exchange and money market funds. Level II securities include mortgage-backed securities issued by government sponsored entities and private label entities, municipal bonds, United States Treasury securities that are traded by dealers or brokers in inactive over-the-counter markets and corporate debt securities. There have been no changes in valuation techniques for the three and six months ended June 30, 2023. 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 three and six months ended June 30, 2023. Valuation techniques are consistent with techniques used in prior periods. Interest rate swap – Interest rate swaps are recorded at fair value based on third-party vendors who compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data. These instruments are included in accrued interest receivable and other assets and accrued interest payable and other liabilities, as applicable, on the consolidated balance sheet. 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. These instruments are included in loans receivable on the consolidated balance sheet. Bank-owned life insurance - Life insurance where the bank is both the policy beneficiary and owner. Bank-owned life insurance 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. These instruments are included in accrued interest receivable and other assets on the consolidated balance sheet and gains and losses are included in interest income on the consolidated statement of income. The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy: June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 38,474 $ — $ 38,474 United States sponsored mortgage-backed securities — 54,366 — 54,366 United States treasury securities 98,029 — — 98,029 Municipal securities — 86,648 34,418 121,066 Corporate debt securities — 8,901 — 8,901 Other securities — 801 — 801 Equity securities 4,837 — — 4,837 Interest rate swap — 9,372 — 9,372 Fair value hedge — 219 — 219 Bank-owned life insurance — 43,746 — 43,746 Embedded derivative — — 648 648 Liabilities: Interest rate swap — 8,429 — 8,429 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 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 The following table represents recurring Level III assets as of the periods shown: (Dollars in thousands) Municipal Securities Embedded Derivatives Total Balance at March 31, 2023 $ 36,458 $ 648 $ 37,106 Realized and unrealized loss included in earnings 1 — 1 Maturities/calls (700) — (700) Unrealized loss included in other comprehensive income (loss) (1,341) — (1,341) Balance at June 30, 2023 $ 34,418 $ 648 $ 35,066 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized and unrealized loss included in earnings 1 (139) (138) Maturities/calls (767) — (767) Unrealized loss included in other comprehensive income (loss) (159) — (159) Balance at June 30, 2023 $ 34,418 $ 648 $ 35,066 Balance at March 31, 2022 $ 39,668 $ — $ 39,668 Realized and unrealized gain included in earnings 1 — 1 Purchase of securities 186 — 186 Maturities/calls (785) — (785) Unrealized loss included in other comprehensive income (loss) (2,035) — (2,035) Balance at June 30, 2022 $ 37,035 $ — $ 37,035 Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized and unrealized gains included in earnings 8 — 8 Purchase of securities 1,048 — 1,048 Maturities/calls (3,075) — (3,075) Unrealized loss included in other comprehensive income (2,709) — (2,709) Balance at June 30, 2022 $ 37,035 $ — $ 37,035 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 2023 and 2022 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. Collateral-dependent loans - Certain loans receivable are evaluated individually for credit loss when the borrower is experiencing financial difficulties and repayment is expected to be provided substantially through the operation or sale of collateral. Estimated credit losses are based on the fair value of the collateral, adjusted for costs to sell. 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 collateral-dependent 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. The following table presents the fair value of these assets as of the periods shown: June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans $ — $ — $ 6,146 $ 6,146 Other real estate owned — — 947 947 Other debt securities — — 7,500 7,500 Equity securities — — 36,245 36,245 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 The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 Nonrecurring measurements: Collateral-dependent loans $ 6,146 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 947 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost, less impairment 0% Equity securities $ 36,245 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 34,418 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded derivatives $ 648 Monte Carlo pricing model Deferred payment $0 - $49.1 million Volatility 59% Term 4.75 years Risk free rate 3.59% 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, less impairment 0% Equity securities $ 33,362 Net asset value Cost, less 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% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. Fair Value Hedges of Interest Rate Risk We are exposed to changes in the fair value of fixed rate mortgages included in a closed portfolio due to changes in benchmark interest rates. In June 2023, we entered into three fixed portfolio layer method fair value swaps, designated as hedging instruments, to manage exposure to changes in fair value on these instruments attributable to the designated interest rate. The interest rate swaps involve the payment of fixed-rate amounts to a counterparty in exchange for us receiving variable-rate payments over the life of the agreements, without the exchange of the underlying notional amount. We designated the fair value swaps under the portfolio layer method (“PLM”). The total notional amount of the three swaps was $148.5 million as of June 30, 2023, one of which is amortizing and included a $1.5 million amortization adjustment to the notional amount at June 30, 2023. Under this method, the hedged item is designated as a hedged layer of a closed portfolio of financial loans that is anticipated to remain outstanding for the designated hedged period. Adjustments will be made to record the swap at fair value on the consolidated balance sheets, with changes in fair value recognized in interest income. The carrying values of the fair value swaps on the consolidated balance sheets will also be adjusted through interest income, based on changes in fair value attributable to changes in the hedged risk. The following table represents the carrying value of the portfolio layer method hedged assets and the cumulative fair value hedging adjustments included in the carrying value of the hedged assets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Basis Hedged Asset Basis Adjustment Amortized Cost Basis Hedged Asset Basis Adjustment Fixed Rate Assets $ 508,971 $ 148,547 $ (870) $ — $ — $ — |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 11 – Earnings per Share We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. The following table presents our calculation of EPS for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands except shares and per share data) 2023 2022 2023 2022 Numerator for earnings per share: Net income from continuing operations $ 7,998 $ 2,273 $ 10,436 $ 4,183 Net loss attributable to noncontrolling interest 114 165 236 358 Net income available to common shareholders 8,112 2,438 10,672 4,541 Net income from discontinued operations available to common shareholders - basic and diluted — 518 8,782 1,279 Net income available to common shareholders $ 8,112 $ 2,956 $ 19,454 $ 5,820 Denominator: Weighted-average shares outstanding - basic 12,689,669 12,176,805 12,656,698 12,135,223 Effect of dilutive securities 225,625 718,776 303,027 735,669 Weighted-average shares outstanding - diluted 12,915,294 12,895,581 12,959,725 12,870,892 Earnings per share from continuing operations - basic $ 0.64 $ 0.20 $ 0.84 $ 0.37 Earnings per share from discontinued operations - basic $ — $ 0.04 $ 0.69 $ 0.11 Earnings per common share - basic $ 0.64 $ 0.24 $ 1.54 $ 0.48 Earnings per share from continuing operations - diluted $ 0.63 $ 0.19 $ 0.82 $ 0.35 Earnings per share from discontinued operations - diluted $ — $ 0.04 $ 0.68 $ 0.10 Earnings per share common share - diluted $ 0.63 $ 0.23 $ 1.50 $ 0.45 Securities not included in the computation of diluted EPS because the effect would be antidilutive 641,534 499,887 274,409 496,625 |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 12 – Comprehensive Income The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Realized gain (loss) recognized in income $ (294) $ — $ (1,830) $ 650 Gain (loss) on sale of available-for-sale securities Income tax effect 71 — 440 (152) Income taxes Realized gain (loss) recognized in income, net of tax (223) — (1,390) 498 Defined benefit pension plan items Amortization of net actuarial loss (29) $ (107) $ (58) $ (214) Salaries and employee benefits Income tax effect 7 27 14 52 Income taxes Defined benefit pension plan items, net of tax (22) (80) (44) (162) Investment hedge Carrying value adjustment (45) 187 289 197 Interest on investment securities Income tax effect 11 (47) (69) (49) Income taxes Investment hedge, net of tax (34) 140 220 148 Total reclassifications $ (279) $ 60 $ (1,214) $ 484 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at March 31, 2023 $ (27,810) $ (3,128) $ — $ (30,938) Other comprehensive income (loss) before reclassification (4,087) 282 — (3,805) Amounts reclassified from accumulated other comprehensive income (loss) 223 22 34 279 Net current period other comprehensive income (loss) (3,864) 304 34 (3,526) Balance at June 30, 2023 $ (31,674) $ (2,824) $ 34 $ (34,464) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 1,765 261 — 2,026 Amounts reclassified from accumulated other comprehensive income (loss) 1,390 44 (220) 1,214 Net current period other comprehensive income (loss) 3,155 305 (220) 3,240 Balance at June 30, 2023 $ (31,674) $ (2,824) $ 34 $ (34,464) Balance at March 31, 2022 $ (13,766) $ (3,704) $ 308 $ (17,162) Other comprehensive income (loss) before reclassification (12,437) 239 — (12,198) Amounts reclassified from accumulated other comprehensive income (loss) — 80 (140) (60) Net current period other comprehensive income (loss) (12,437) 319 (140) (12,258) Balance at June 30, 2022 $ (26,203) $ (3,385) $ 168 $ (29,420) Balance at December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (25,852) 522 — (25,330) Amounts reclassified from accumulated other comprehensive income (loss) (498) 162 (148) (484) Net current period other comprehensive income (loss) (26,350) 684 (148) (25,814) Balance at June 30, 2022 $ (26,203) $ (3,385) $ 168 $ (29,420) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 13 – Segment Reporting We have identified three reportable segments: CoRe banking; mortgage banking; and financial holding company. All other operating segments are summarized in an other category. 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. Revenue from financial holding company activities is mainly comprised of intercompany service income and dividends. The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown: Three Months Ended June 30, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 46,929 $ 105 $ 3 $ 6 $ (12) $ 47,031 Interest expense 16,439 — 999 23 (12) 17,449 Net interest income (expense) 30,490 105 (996) (17) — 29,582 Release of allowance for credit losses (4,235) — — — — (4,235) Net interest income (expense) after release of allowance for credit losses 34,725 105 (996) (17) — 33,817 Noninterest income 4,113 1,872 3,116 1,051 (3,733) 6,419 Noninterest Expenses: Salaries and employee benefits 9,053 7 4,623 2,063 — 15,746 Other expenses 14,148 18 2,163 1,940 (3,733) 14,536 Total noninterest expenses 23,201 25 6,786 4,003 (3,733) 30,282 Income (loss) before income taxes 15,637 1,952 (4,666) (2,969) — 9,954 Income taxes 3,237 643 (1,207) (717) — 1,956 Net income (loss) 12,400 1,309 (3,459) (2,252) — 7,998 Net loss attributable to noncontrolling interest — — — 114 — 114 Net income (loss) available to common shareholders $ 12,400 $ 1,309 $ (3,459) $ (2,138) $ — $ 8,112 Capital expenditures for the three months ended June 30, 2023 $ 155 $ — $ — $ 1,561 $ — $ 1,716 Total assets as of June 30, 2023 $ 3,295,564 $ 85,563 $ 335,193 $ 20,871 $ (385,344) $ 3,351,847 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 $ 375,171 $ 27,075 $ (382,119) $ 3,068,850 Goodwill as of June 30, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 Goodwill as of December 31, 2022 $ — $ — $ — $ 2,838 $ — $ 2,838 Three Months Ended June 30, 2022 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 27,910 $ 103 $ 87 $ — $ (10) $ 28,090 Interest expense 672 — 760 8 (10) 1,430 Net interest income (expense) 27,238 103 (673) (8) — 26,660 Release of allowance for loan losses 5,100 — — — 5,100 Net interest income (expense) after release of allowance for credit losses 22,138 103 (673) (8) — 21,560 Noninterest income 7,093 787 3,228 1,584 (3,308) 9,384 Noninterest Expenses: Salaries and employee benefits 9,948 — 4,439 2,198 — 16,585 Other expenses 10,913 94 2,247 1,441 (3,308) 11,387 Total noninterest expenses 20,861 94 6,686 3,639 (3,308) 27,972 Income (loss) before income taxes 8,370 796 (4,131) (2,063) — 2,972 Income taxes 1,771 207 (815) (464) — 699 Net income (loss) from continuing operations 6,599 589 (3,316) (1,599) — 2,273 Income from discontinued operations, before income taxes — — — 678 — 678 Income taxes - discontinued operations — — — 160 — 160 Net income from discontinued operations — — — 518 — 518 Net income (loss) 6,599 589 (3,316) (1,081) — 2,791 Net loss attributable to noncontrolling interest — — — 165 — 165 Net income (loss) available to common shareholders $ 6,599 $ 589 $ (3,316) $ (916) $ — $ 2,956 Capital expenditures for the three months ended June 30, 2022 $ — $ — $ 47 $ 834 $ — $ 881 Six Months Ended June 30, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 91,591 $ 210 $ 36 $ — $ (43) $ 91,794 Interest expense 27,480 — 1,992 54 (43) 29,483 Net interest income (expense) 64,111 210 (1,956) (54) — 62,311 Provision for credit losses 341 — — — — 341 Net interest income (expense) after provision for credit losses 63,770 210 (1,956) (54) — 61,970 Noninterest income 7,131 686 5,526 2,835 (6,692) 9,486 Noninterest Expenses: Salaries and employee benefits 18,104 7 9,573 4,808 — 32,492 Other expenses 25,202 52 4,080 3,465 (6,692) 26,107 Total noninterest expenses 43,306 59 13,653 8,273 (6,692) 58,599 Income (loss) before income taxes 27,595 837 (10,083) (5,492) — 12,857 Income taxes 5,752 139 (2,149) (1,321) — 2,421 Net income (loss) from continuing operations 21,843 698 (7,934) (4,171) — 10,436 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income taxes - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss) 21,843 698 (7,934) 4,611 — 19,218 Net loss attributable to noncontrolling interest — — — 236 — 236 Net income (loss) available to common shareholders $ 21,843 $ 698 $ (7,934) $ 4,847 $ — $ 19,454 Capital expenditures for the six months ended June 30, 2023 $ 492 $ — $ — $ 2,155 $ — $ 2,647 Six Months Ended June 30, 2022 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 51,081 $ 206 $ 80 $ — $ (15) $ 51,352 Interest expense 1,331 — 1,513 15 (15) 2,844 Net interest income (expense) 49,750 206 (1,433) (15) — 48,508 Provision for credit losses 6,380 — — — — 6,380 Net interest income (expense) after provision for credit losses 43,370 206 (1,433) (15) — 42,128 Noninterest income 13,991 2,010 5,899 3,120 (6,357) 18,663 Noninterest Expenses: Salaries and employee benefits 19,456 — 8,495 4,361 — 32,312 Other expenses 21,961 94 4,452 2,767 (6,357) 22,917 Total noninterest expenses 41,417 94 12,947 7,128 (6,357) 55,229 Income (loss) before income taxes 15,944 2,122 (8,481) (4,023) — 5,562 Income taxes 3,402 548 (1,684) (887) — 1,379 Net income (loss) from continuing operations 12,542 1,574 (6,797) (3,136) — 4,183 Income from discontinued operations, before income taxes — — — 1,664 — 1,664 Income taxes - discontinued operations — — — 385 — 385 Net income from discontinued operations — — — 1,279 — 1,279 Net income (loss) before noncontrolling interest 12,542 1,574 (6,797) (1,857) — 5,462 Net loss attributable to noncontrolling interest — — — 358 — 358 Net income (loss) available to common shareholders $ 12,542 $ 1,574 $ (6,797) $ (1,499) $ — $ 5,820 Capital expenditures for the six months ended June 30, 2022 $ 250 $ — $ 385 $ 1,474 $ — $ 2,109 |
Acquisition & Divestiture Activ
Acquisition & Divestiture Activity | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition & Divestiture Activity | Note 14 – Acquisition & Divestiture Activity Flexia Payments, LLC In May 2023, MVB Technology entered into an Assignment and Assumption Agreement with Flexia Payments, LLC ("Flexia"), wherein Flexia assigned loans outstanding between Flexia and MVB to MVB Technology. In consideration for the assignment, Flexia granted a license to MVB Technology for the Flexia software. Additionally, through a Mutual Release Agreement between Edge Ventures and Flexia, Edge Ventures transferred its 800 Class A Common Units and 1,500 Preferred Units of Flexia back to Flexia for cancellation. As a result of the transactions, we incurred a loss of $1.1 million and no longer consolidate Flexia in our financial statements. Chartwell Compliance In February 2023, we completed the sale of the Bank’s wholly-owned subsidiary, Chartwell, for total consideration of $14.4 million in the form of a note issued to the buyer, resulting in a gain on sale of $11.8 million. The note matures June 20, 2027 and bears interest at a fixed rate of 7%, payable in four equal annual installments commencing June 20, 2024. To facilitate a transition of the Chartwell services and support the onboarding and conversion of systems, we entered into a 60 day Employee Lease and Service Agreement, whereby we provided the purchaser with finance and accounting, human capital, information technology, marketing and record/data retention services. In addition, we entered into a contract with the purchaser to continue to provide services and support from Chartwell for three years following the sale. Balances attributable to Chartwell are included in assets from discontinued operations and liabilities from discontinued operations on our December 31, 2022 balance sheet. There were no assets from discontinued operations or liabilities from discontinued operations as of June 30, 2023. Chartwell's net income is presented in income from discontinued operations for all periods shown. Prior period balances have been reclassified to conform with this presentation. The following table presents the major classes of assets held-for-sale from discontinued operations and liabilities held-for-sale from discontinued operations as of December 31, 2022: (Dollars in thousands) December 31, 2022 Premises and equipment $ 23 Accrued interest receivable and other assets 3,142 Goodwill 1,150 Total assets from discontinued operations $ 4,315 Accrued interest payable and other liabilities $ 5,444 Total liabilities from discontinued operations $ 5,444 The following table presents the major classes of net income from discontinued operations for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Compliance consulting income $ — $ 4,213 $ 2,369 $ 8,308 Gain on sale of discontinued operations — — 11,800 — Total income $ — $ 4,213 $ 14,169 $ 8,308 Salaries and employee benefits $ — $ 2,398 $ 2,082 $ 4,632 Other expenses — 1,137 256 2,012 Total expenses $ — $ 3,535 $ 2,338 $ 6,644 Income before income taxes $ — $ 678 $ 11,831 $ 1,664 Income taxes — 160 3,049 385 Net income from discontinued operations $ — $ 518 $ 8,782 $ 1,279 Integrated Financial Holdings, Inc. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. |
Basis of Presentation | In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2022 has been derived from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2022 Form 10-K. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. |
Reclassification | In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
Subsequent Events | We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 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. As of June 30, 2023, all loans and other relevant financial instruments that referenced LIBOR have been transitioned to the secured overnight financing rate (“SOFR”). 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 . The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot recognize and measure a contractual sale restriction as a separate unit of account and require additional disclosures related to equity securities with contractual sale restrictions. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact our consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method . The amendments allow registrants the option to apply the proportional amortization method to account for all types of investments in tax credit structures if certain conditions are met. Prior to these amendments, the option to use the proportional amortization method was limited to only investments in low-income-housing tax credit structures. Under the proportional amortization method, entities amortize the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognize the net amortization and income tax credits and other benefits in the income statement as a component of income tax expense or benefit. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact on our consolidated financial statements. Adoption of New Accounting Pronouncement In January 2023, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures all of which clarify codification and correct unintended application of the guidance. Collectively, upon adoption, these updates comprise Accounting Standards Codification Topic 326 Financial Instruments - Credit Losses ("ASC 326"). 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 deteriorated (“PCD”) 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. We formed a cross-functional implementation team. This cross-functional team has completed testing the model and has executed the implementation plan, which included assessment and documentation of processes, internal controls and data sources; model testing and documentation; and system configuration, among other things. We completed the process of implementing a third-party vendor solution to assist us in the application of this standard. Adoption of this pronouncement resulted in an increase in the ACL 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. On January 1, 2023, we adopted ASU 2016-13 using the modified retrospective method for loans, leases and off-balance sheet credit exposures. Adoption of this guidance resulted in a $10.0 million increase in the ACL, comprised of increases in the ACL for loans of $8.9 million and the ACL for unfunded commitments of $1.1 million, with $1.2 million of the increase reclassified from the amortized cost basis of PCD financial assets. This increase was offset by $2.1 million related to tax effect, resulting in a cumulative adjustment to retained earnings of $6.6 million. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the incurred loss model. The ACL for the majority of the Bank's loans and leases was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a one-year straight-line reversion period. The Bank’s current ACL fluctuates over time due to macroeconomic conditions and forecasts as well as the size and composition of the loan portfolios. We adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”). In accordance with the pronouncement, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. As mentioned above, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $1.2 million to the ACL. The remaining noncredit discount (based on the adjusted amortized cost basis) is being accreted into interest income at a rate that approximates the effective interest rate beginning on January 1, 2023. With regard to PCD assets, because we elected to disaggregate the former PCI pools and no longer considers these pools to be the unit of account, contractually delinquent PCD loans are now being reported as nonaccrual loans using the same criteria as other loans. In addition to the aforementioned elections, we made the following elections at adoption: l to not measure an ACL for accrued interest receivable and instead elected to reverse interest income on those loans that are 90 days past due; l to exclude accrued interest receivable from the amortized cost basis of financial instruments subject to ASC 326 and to separately state the balance of accrued interest receivable and other assets on the consolidated balance sheet; l as a practical expedient, elected to use the fair value of collateral when determining the ACL for loans if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty (collateral-dependent loans). l to update our troubled debt restructuring ("TDR") disclosures in accordance with ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures, which eliminated the accounting guidance for TDRs for creditors. In June 2023, we adopted ASU 2022-01, Fair Value Hedging – Portfolio Layer Method , upon entering into an interest rate swap to hedge the fair value of fixed rate mortgages included in a closed portfolio for changes in the SOFR benchmark interest rate component of the mortgages. This ASU amends the guidance in ASU 2017-12 and expands what it now calls the portfolio layer method (previously the last-of-layer method) to allow entities to hedge multiple layers of a closed portfolio of assets. It also allows for the use of an amortizing notional swap when entering into a portfolio layer method hedge. Thus, the interest rate swap is considered a hedge of a single layer of the closed portfolio of fixed rate loans. We applied this ASU to the derivatives we entered into during June 2023 as further described in Note 10 - Fair Value Measurements below . |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Investment Securities Available-for-sale | The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown: June 30, 2023 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 44,844 $ 6 $ (6,376) $ 38,474 United States sponsored mortgage-backed securities 65,715 — (11,349) 54,366 United States treasury securities 106,552 — (8,523) 98,029 Municipal securities 136,352 4,232 (19,518) 121,066 Corporate debt securities 9,071 — (170) 8,901 Other debt securities 7,500 — — 7,500 Total debt securities 370,034 4,238 (45,936) 328,336 Other securities 801 — — 801 Total investment securities available-for-sale $ 370,835 $ 4,238 $ (45,936) $ 329,137 December 31, 2022 (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 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown: June 30, 2023 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 4,704 $ 4,701 After one year, but within five years 112,082 103,496 After five years, but within ten years 39,867 35,626 After ten years 213,381 184,513 Total $ 370,034 $ 328,336 |
Investments in an Unrealized Loss Position | The following tables show available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: June 30, 2023 (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 (25) $ 272 $ — $ 36,479 $ (6,376) United States sponsored mortgage-backed securities (48) 2,362 (22) 52,004 (11,327) United States treasury securities (23) — — 98,028 (8,523) Municipal securities (155) 2,890 (6,810) 85,784 (12,708) Corporate debt securities (7) 2,429 (142) 1,472 (28) Total $ 7,953 $ (6,974) $ 273,767 $ (38,962) 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) — — Total $ 108,486 $ (10,446) $ 212,317 $ (39,353) |
Realized Gain (Loss) on Investments | The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds from sales of available-for-sale securities $ — $ — $ 54,531 $ 60,635 Gains, gross — — — 717 Losses, gross — — 1,536 67 Proceeds from sales of equity securities $ 206 $ 1,100 $ 206 $ 1,100 Gain, gross — 100 — 100 Losses, gross 294 — 294 — Unrealized holding gains (losses) on equity securities 160 (26) (148) (85) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Components of Loans in the Consolidated Balance Sheet | The following table presents the components of loans as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Commercial: Business $ 845,107 $ 851,072 Real estate 616,034 632,839 Acquisition, development and construction 106,906 126,999 Total commercial $ 1,568,047 $ 1,610,910 Residential real estate 674,090 606,970 Home equity lines of credit 16,651 18,734 Consumer 51,766 131,566 Total loans, excluding PCI 2,310,554 2,368,180 Purchased credit impaired loans: Residential real estate — 2,482 Total purchased credit impaired loans — 2,482 Total Loans $ 2,310,554 $ 2,370,662 Deferred loan origination costs, net 1,833 1,983 Loans receivable $ 2,312,387 $ 2,372,645 |
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 the periods shown: 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 real estate — — 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 |
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 periods shown: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Business $ 11,015 $ — $ — $ 10,741 $ — $ — Real estate 1,597 16 15 1,681 33 33 Acquisition, development and construction 306 — — 314 — — Total commercial 12,918 16 15 12,736 33 33 Residential 8,374 5 4 8,372 10 9 Home equity 159 — — 174 — — Consumer 754 — — 593 — — Total $ 22,205 $ 21 $ 19 $ 21,875 $ 43 $ 42 |
Classes of the Loan Portfolio Summarized by Vintage Year and the Aggregate Pass and the Criticized Categories | The following table presents the amortized cost of loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system by vintage year as of the period shown: Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total June 30, 2023 Commercial business: Risk rating: Pass $ 67,617 $ 265,932 $ 141,159 $ 29,974 $ 17,500 $ 66,225 $ 235,707 $ — $ 824,114 Special Mention — 1,395 83 711 98 4,502 — — 6,789 Substandard — 232 475 — 5,290 5,485 — — 11,482 Doubtful — — 1,144 264 — 1,314 — — 2,722 Total commercial business loans $ 67,617 $ 267,559 $ 142,861 $ 30,949 $ 22,889 $ 77,526 $ 235,707 $ — $ 845,107 Gross charge-offs $ — $ — $ 116 $ 141 $ — $ 11 $ — $ 268 Commercial real estate: Risk rating: Pass $ 32,028 $ 157,930 $ 231,805 $ 12,251 $ 26,729 $ 113,943 $ — $ — $ 574,686 Special Mention — — — — 6,859 15,123 — — 21,982 Substandard — — — — — 19,366 — — 19,366 Doubtful — — — — — — — — — Total commercial real estate loans $ 32,028 $ 157,930 $ 231,805 $ 12,251 $ 33,588 $ 148,432 $ — $ — $ 616,034 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 1,943 $ 32,930 $ 44,498 $ 21,945 $ 3,128 $ 1,653 $ — $ — $ 106,097 Special Mention — — — — — 10 — — 10 Substandard — — — — — 799 — — 799 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 1,943 $ 32,930 $ 44,498 $ 21,945 $ 3,128 $ 2,462 $ — $ — $ 106,906 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total June 30, 2023 Residential Real Estate: Risk rating: Pass $ 61,630 $ 426,251 $ 105,465 $ 39,932 $ 7,549 $ 25,496 $ — $ — $ 666,323 Special Mention — — — 3,924 1,382 735 — — 6,041 Substandard — — — 83 153 912 — — 1,148 Doubtful — — — — — 578 — — 578 Total residential real estate loans $ 61,630 $ 426,251 $ 105,465 $ 43,939 $ 9,084 $ 27,721 $ — $ — $ 674,090 Gross charge-offs $ — $ — $ — $ — $ — $ 22 $ — $ — $ 22 Home equity lines of credit: Risk rating: Pass $ — $ 37 $ — $ — $ 174 $ 866 $ 15,265 $ — $ 16,342 Special Mention — — — — — 75 150 — 225 Substandard — — — — — 84 — — 84 Doubtful — — — — — — — — — Total home equity lines of credit loans $ — $ 37 $ — $ — $ 174 $ 1,025 $ 15,415 $ — $ 16,651 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ 8,860 $ 33,732 $ 8,011 $ 2 $ 56 $ 87 $ — $ — $ 50,748 Special Mention — — — — — — — — — Substandard 160 801 54 — — 2 — — 1,017 Doubtful — — — — — 1 — — 1 Total consumer loans $ 9,020 $ 34,533 $ 8,065 $ 2 $ 56 $ 90 $ — $ — $ 51,766 Gross charge-offs $ 217 $ 6,772 $ 1,268 $ — $ — $ — $ — $ — $ 8,257 Total: Risk rating: Pass $ 172,078 $ 916,812 $ 530,938 $ 104,104 $ 55,136 $ 208,270 $ 250,972 $ — $ 2,238,310 Special Mention — 1,395 83 4,635 8,339 20,445 150 — 35,047 Substandard 160 1,033 529 83 5,443 26,648 — — 33,896 Doubtful — — 1,144 264 — 1,893 — — 3,301 Total consumer loans $ 172,238 $ 919,240 $ 532,694 $ 109,086 $ 68,918 $ 257,256 $ 251,122 $ — $ 2,310,554 Gross charge-offs $ 217 $ 6,772 $ 1,384 $ 141 $ — $ 33 $ — $ — $ 8,547 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 the periods shown: (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 real estate 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 |
Classes of the Loan Portfolio Summarized by Aging Categories | The following table presents the amortized cost basis in loans by aging category and accrual status as of the periods shown: (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 Non Accrual with No Credit Loss Interest Income Recognized June 30, 2023 Commercial Business $ 834,448 $ 239 $ 4,554 $ 5,866 $ 10,659 $ 845,107 $ 10,801 $ — $ 3,825 $ — Real estate 616,034 — — — — 616,034 — — — — Acquisition, development and construction 106,107 799 — — 799 106,906 — — — — Total commercial 1,556,589 1,038 4,554 5,866 11,458 1,568,047 10,801 — 3,825 — Residential real estate 672,516 — — 1,574 1,574 674,090 1,659 — — — Home equity lines of credit 16,651 — — — — 16,651 169 — — — Consumer 43,140 5,320 2,291 1,015 8,626 51,766 1,017 — — — Total loans $ 2,288,896 $ 6,358 $ 6,845 $ 8,455 $ 21,658 $ 2,310,554 $ 13,646 $ — $ 3,825 $ — The following table presents the aging of recorded investment in loans, including accruing and nonaccrual loans, as of the period shown: (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 real estate 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 $ — |
Amortized Cost Basis of Collateral-Dependent Loans | The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of the periods shown: (Dollars in thousands) Real Estate Vehicles and Equipment Assignment of Cash Flow Accounts Receivable Other Totals Allowance for Credit Losses June 30, 2023 Commercial Business $ 1,434 $ 3,952 $ 900 $ 238 $ 264 $ 6,788 $ 2,666 Total commercial $ 1,434 $ 3,952 $ 900 $ 238 $ 264 $ 6,788 $ 2,666 Residential 1,599 — — — — 1,599 391 Consumer — 1,015 — — — 1,015 199 Total $ 3,033 $ 4,967 $ 900 $ 238 $ 264 $ 9,402 $ 3,256 Collateral value $ 2,503 $ 9,312 $ — $ 178 $ 451 $ 12,444 |
Allowance Activity | The following table presents the balance and activity for the primary segments of the ACL as of the periods shown: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL, prior to adoption of ASC 326, at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Impact of adopting ASC 326 (126) (2,846) 288 (2,684) 3,889 (5) 6,482 7,682 Provision (release of allowance) for credit losses 2,186 180 355 2,721 (86) (14) (2,153) 468 Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Charge-offs (268) — — (268) (22) — (8,257) (8,547) Recoveries 35 13 — 48 — 2 5,587 5,637 ACL at June 30, 2023 $ 11,308 $ 3,051 $ 1,707 $ 16,066 $ 7,168 $ 114 $ 6,946 $ 30,294 (Dollars in thousands) ACL balance at March 31, 2023 $ 9,918 $ 3,177 $ 1,640 $ 14,735 $ 7,618 $ 119 $ 13,041 $ 35,513 Provision (release of allowance) for credit losses 1,504 (133) 67 1,438 (450) (6) (4,969) (3,987) Charge-offs (127) — — (127) — — (3,573) (3,700) Recoveries 13 7 — 20 — 1 2,447 2,468 ACL balance at June 30, 2023 $ 11,308 $ 3,051 $ 1,707 $ 16,066 $ 7,168 $ 114 $ 6,946 $ 30,294 During the three and six months ended June 30, 2023, there was a $0.2 million and $0.1 million release of allowance related to unfunded commitments, respectively. Substantially all of the charge-offs during three and six months ended June 30, 2023 are related to our subprime automobile portfolio of loans. The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL balance at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 948 $ 128 $ 2,427 $ 17,603 Charge-offs — — — — — — (3,652) (3,652) Recoveries 10 62 — 72 — 4 1,664 1,740 Provision (release) 40 1,488 (15) 1,513 824 9 4,697 7,043 ALL balance at June 30, 2022 $ 8,077 $ 6,641 $ 967 $ 15,685 $ 1,772 $ 141 $ 5,136 $ 22,734 Individually evaluated for impairment $ 1,076 $ 223 $ — $ 1,299 $ 84 $ — $ 212 $ 1,595 Collectively evaluated for impairment $ 7,001 $ 6,418 $ 967 $ 14,386 $ 1,688 $ 141 $ 4,924 $ 21,139 (Dollars in thousands) ALL balance at March 31, 2022 $ 6,869 $ 5,566 $ 735 $ 13,170 $ 1,127 $ 131 $ 3,766 $ 18,194 Charge-offs — — — — — — (2,529) (2,529) Recoveries 9 55 — 64 — 2 1,289 1,355 Provision 1,199 1,020 232 2,451 645 8 2,610 5,714 ALL balance at June 30, 2022 $ 8,077 $ 6,641 $ 967 $ 15,685 $ 1,772 $ 141 $ 5,136 $ 22,734 The following table presents the primary segments of our loan portfolio as of the period shown: Commercial Residential Home Equity Lines of Credit Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial June 30, 2022 Individually evaluated for impairment $ 11,953 $ 1,182 $ 1,069 $ 14,204 $ 8,407 $ 198 $ 831 $ 23,640 Collectively evaluated for impairment 818,227 696,454 111,187 1,625,868 432,154 19,992 107,054 2,185,068 Total Loans $ 830,180 $ 697,636 $ 112,256 $ 1,640,072 $ 440,561 $ 20,190 $ 107,885 $ 2,208,708 The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the PCI loan portfolio as of the periods indicated: Commercial Residential Consumer Total (Dollars in thousands) Business Real Estate Total Commercial ALL balance as of December 31, 2021 — — — 544 119 663 Release — — — (544) (119) (663) ALL balance as of June 30, 2022 — — — — — — Collectively evaluated for impairment — — — — — — (Dollars in thousands) ALL balance as of March 31, 2022 112 53 165 323 126 614 Release (112) (53) (165) (323) (126) (614) ALL balance as of June 30, 2022 — — — — — — |
Schedule of Accretable Yield | The following table presents the accretable yield, or income expected to be collected, during the periods shown: (Dollars in thousands) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Beginning balance $ 6,253 $ 6,505 Accretion of income (985) (1,793) Accretion from disposals (1,041) (1,041) Disposals (1,271) (1,271) Other changes in expected cash flows (1,047) (491) Ending balance 1,909 1,909 |
Summary of Modified Loans | The following tables summarize the amortized cost basis of loans that were modified during three and six months ended June 30, 2023: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable June 30, 2023 Commercial Business $ — $ 4,563 $ — $ — $ 4,563 1 % Real estate — 11,376 — — 11,376 2 % Total commercial — 15,939 — — 15,939 1 % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 15,939 $ — $ — $ 15,939 1 % (Dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Past Due June 30, 2023 Commercial Business $ — $ 2,075 $ — $ 2,075 Total commercial — 2,075 — 2,075 Residential — — — — Home equity lines of credit — — — — Consumer — — — — Total $ — $ 2,075 $ — $ 2,075 |
Summary of Modified Loans with Subsequent Default | The following table presents the amortized cost basis of loans that had a payment default and were modified prior to that default to borrowers experiencing financial difficulty as of the period shown: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total June 30, 2023 Commercial Business $ — $ 2,075 $ — $ — $ 2,075 Real estate — — — — — Total commercial — 2,075 — — 2,075 Residential — — — — — Home equity lines of credit — — — — — Consumer — — — — — Total $ — $ 2,075 $ — $ — $ 2,075 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Premises and Equipment | The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 17,666 17,549 Software 6,598 6,019 Construction in progress 521 508 Leasehold improvements 2,836 2,836 44,479 43,770 Accumulated depreciation (22,072) (20,140) Premises and equipment, net $ 22,407 $ 23,630 |
Summary of Lease Cost | The following table presents lease costs for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Amortization of right-of-use assets, finance leases $ 1 $ 14 $ 7 $ 29 Operating lease cost 446 445 896 890 Short-term lease cost 2 8 8 14 Variable lease cost 10 10 19 19 Sublease income (87) — (174) — Total lease cost $ 372 $ 477 $ 756 $ 952 |
Summary of Operating Lease Liability | For operating leases with initial or remaining terms of one year or more as of June 30, 2023, the following table presents future minimum payments for the twelve month periods ended June 30: (Dollars in thousands) Operating Leases 2024 $ 829 2025 1,621 2026 1,618 2027 1,594 2028 1,625 2029 and thereafter 10,111 Total future minimum lease payments $ 17,398 Less: Amounts representing interest (2,921) Present value of net future minimum lease payments $ 14,477 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents summarized income statement information for ICM for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Total revenues $ 12,239 $ 22,063 $ 21,645 $ 44,179 Net income (loss) (1,089) 1,938 $ (4,171) $ 5,169 Gain on sale of loans 7,240 14,872 $ 12,688 $ 29,961 Volume of loans sold 409,222 692,553 $ 712,004 $ 1,380,646 The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown: (Dollars in thousands) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Total revenues $ 39,816 $ 75,333 Net income 6,243 8,925 Gain on sale of loans 12,464 25,146 Volume of loans sold 307,999 598,206 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits | The following table presents the components of deposits as of the periods shown: (Dollars in thousands) June 30, 2023 December 31, 2022 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 987,555 $ 1,231,544 Interest-bearing demand 639,814 720,074 Savings and money markets 624,276 284,447 Time deposits, including CDs and IRAs 707,294 334,417 Total deposits $ 2,958,939 $ 2,570,482 Time deposits that meet or exceed the FDIC insurance limit $ 2,414 $ 4,386 |
Maturities of Time Deposits | The following table presents the maturities of time deposits for the twelve month periods ended June 30: (Dollars in thousands) 2024 $ 402,287 2025 300,347 2026 1,617 2027 844 2028 1,959 Thereafter 240 Total $ 707,294 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Information Related to Short-term Borrowings | The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ — $ 102,333 Average balance during the period 35,347 15,494 Maximum month-end balance — 102,333 Weighted-average rate during the period 5.07 % 2.82 % Weighted-average rate at end of period — % 4.45 % |
Information Related to Repurchase Agreements | The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 4,798 $ 10,037 Average balance during the period 6,514 10,987 Maximum month-end balance 10,041 12,680 Weighted-average rate during the period 0.03 % 0.05 % Weighted-average rate at end of period 0.01 % 0.06 % |
Information Related to Subordinated Debt | The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 73,414 $ 73,286 Average balance during the period 73,350 73,159 Maximum month-end balance 73,414 73,286 Weighted-average rate during the period 4.40 % 4.20 % Weighted-average rate at end of period 3.97 % 3.97 % |
Information Related to Senior Term Loan | The following table presents information related to senior term loan as of and for the periods shown: (Dollars in thousands) Six Months Ended June 30, 2023 Year Ended December 31, 2022 Balance at end of period $ 8,835 $ 9,765 Average balance during the period 9,557 2,328 Maximum month-end balance 9,768 9,886 Weighted-average rate during the period 8.27 % 7.00 % Weighted-average rate at end of period 8.57 % 7.44 % |
Pension and Supplemental Exec_2
Pension and Supplemental Executive Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Activity in the Defined Benefit Plan | The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of June 30, 2023 and 2022 for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Interest cost $ 113 $ 85 226 170 Expected return on plan assets (164) (167) (328) (334) Amortization of net actuarial loss 29 107 58 214 Net periodic benefit (income) cost $ (22) $ 25 $ (44) $ 50 Contributions paid $ — $ — $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Estimated Fair Values of Financial Instruments | The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown: (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) June 30, 2023 Financial Assets: Cash and cash equivalents $ 455,835 $ 455,835 $ 455,835 $ — $ — Securities available-for-sale 329,137 329,137 — 294,719 34,418 Equity securities 41,082 41,082 4,837 — 36,245 Loans held-for-sale 7,009 7,009 — 7,009 — Loans receivable, net 2,282,093 2,158,860 — — 2,158,860 Servicing rights 1,911 1,972 — — 1,972 Interest rate swap 9,372 9,372 — 9,372 — Fair value hedge 219 219 — 219 — Accrued interest receivable 16,102 16,102 — 2,391 13,711 FHLB Stock 2,168 2,168 — 2,168 — Bank-owned life insurance 43,746 43,746 — 43,746 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 2,958,939 $ 2,623,395 $ — $ 2,623,395 $ — Repurchase agreements 4,798 4,798 — 4,798 — Interest rate swap 8,429 8,429 — 8,429 — Accrued interest payable 1,809 1,809 — 1,809 — Senior term loan 8,835 8,667 — 8,667 — Subordinated debt 73,414 63,539 — 63,539 — 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 rights 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 — FHLB Stock 9,966 9,966 — 9,966 — 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 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 March 31, 2023 $ 36,458 $ 648 $ 37,106 Realized and unrealized loss included in earnings 1 — 1 Maturities/calls (700) — (700) Unrealized loss included in other comprehensive income (loss) (1,341) — (1,341) Balance at June 30, 2023 $ 34,418 $ 648 $ 35,066 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized and unrealized loss included in earnings 1 (139) (138) Maturities/calls (767) — (767) Unrealized loss included in other comprehensive income (loss) (159) — (159) Balance at June 30, 2023 $ 34,418 $ 648 $ 35,066 Balance at March 31, 2022 $ 39,668 $ — $ 39,668 Realized and unrealized gain included in earnings 1 — 1 Purchase of securities 186 — 186 Maturities/calls (785) — (785) Unrealized loss included in other comprehensive income (loss) (2,035) — (2,035) Balance at June 30, 2022 $ 37,035 $ — $ 37,035 Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized and unrealized gains included in earnings 8 — 8 Purchase of securities 1,048 — 1,048 Maturities/calls (3,075) — (3,075) Unrealized loss included in other comprehensive income (2,709) — (2,709) Balance at June 30, 2022 $ 37,035 $ — $ 37,035 |
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2023 Nonrecurring measurements: Collateral-dependent loans $ 6,146 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 947 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost, less impairment 0% Equity securities $ 36,245 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 34,418 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded derivatives $ 648 Monte Carlo pricing model Deferred payment $0 - $49.1 million Volatility 59% Term 4.75 years Risk free rate 3.59% 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, less impairment 0% Equity securities $ 33,362 Net asset value Cost, less 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% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Schedule of Carrying Value and Fair Value Hedging Adjustment of Portfolio Layer Method Hedged Asset | The following table represents the carrying value of the portfolio layer method hedged assets and the cumulative fair value hedging adjustments included in the carrying value of the hedged assets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Basis Hedged Asset Basis Adjustment Amortized Cost Basis Hedged Asset Basis Adjustment Fixed Rate Assets $ 508,971 $ 148,547 $ (870) $ — $ — $ — |
Recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy: June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 38,474 $ — $ 38,474 United States sponsored mortgage-backed securities — 54,366 — 54,366 United States treasury securities 98,029 — — 98,029 Municipal securities — 86,648 34,418 121,066 Corporate debt securities — 8,901 — 8,901 Other securities — 801 — 801 Equity securities 4,837 — — 4,837 Interest rate swap — 9,372 — 9,372 Fair value hedge — 219 — 219 Bank-owned life insurance — 43,746 — 43,746 Embedded derivative — — 648 648 Liabilities: Interest rate swap — 8,429 — 8,429 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 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 |
Non-recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following table presents the fair value of these assets as of the periods shown: June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans $ — $ — $ 6,146 $ 6,146 Other real estate owned — — 947 947 Other debt securities — — 7,500 7,500 Equity securities — — 36,245 36,245 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 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Common Share | The following table presents our calculation of EPS for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands except shares and per share data) 2023 2022 2023 2022 Numerator for earnings per share: Net income from continuing operations $ 7,998 $ 2,273 $ 10,436 $ 4,183 Net loss attributable to noncontrolling interest 114 165 236 358 Net income available to common shareholders 8,112 2,438 10,672 4,541 Net income from discontinued operations available to common shareholders - basic and diluted — 518 8,782 1,279 Net income available to common shareholders $ 8,112 $ 2,956 $ 19,454 $ 5,820 Denominator: Weighted-average shares outstanding - basic 12,689,669 12,176,805 12,656,698 12,135,223 Effect of dilutive securities 225,625 718,776 303,027 735,669 Weighted-average shares outstanding - diluted 12,915,294 12,895,581 12,959,725 12,870,892 Earnings per share from continuing operations - basic $ 0.64 $ 0.20 $ 0.84 $ 0.37 Earnings per share from discontinued operations - basic $ — $ 0.04 $ 0.69 $ 0.11 Earnings per common share - basic $ 0.64 $ 0.24 $ 1.54 $ 0.48 Earnings per share from continuing operations - diluted $ 0.63 $ 0.19 $ 0.82 $ 0.35 Earnings per share from discontinued operations - diluted $ — $ 0.04 $ 0.68 $ 0.10 Earnings per share common share - diluted $ 0.63 $ 0.23 $ 1.50 $ 0.45 Securities not included in the computation of diluted EPS because the effect would be antidilutive 641,534 499,887 274,409 496,625 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Realized gain (loss) recognized in income $ (294) $ — $ (1,830) $ 650 Gain (loss) on sale of available-for-sale securities Income tax effect 71 — 440 (152) Income taxes Realized gain (loss) recognized in income, net of tax (223) — (1,390) 498 Defined benefit pension plan items Amortization of net actuarial loss (29) $ (107) $ (58) $ (214) Salaries and employee benefits Income tax effect 7 27 14 52 Income taxes Defined benefit pension plan items, net of tax (22) (80) (44) (162) Investment hedge Carrying value adjustment (45) 187 289 197 Interest on investment securities Income tax effect 11 (47) (69) (49) Income taxes Investment hedge, net of tax (34) 140 220 148 Total reclassifications $ (279) $ 60 $ (1,214) $ 484 |
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 March 31, 2023 $ (27,810) $ (3,128) $ — $ (30,938) Other comprehensive income (loss) before reclassification (4,087) 282 — (3,805) Amounts reclassified from accumulated other comprehensive income (loss) 223 22 34 279 Net current period other comprehensive income (loss) (3,864) 304 34 (3,526) Balance at June 30, 2023 $ (31,674) $ (2,824) $ 34 $ (34,464) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 1,765 261 — 2,026 Amounts reclassified from accumulated other comprehensive income (loss) 1,390 44 (220) 1,214 Net current period other comprehensive income (loss) 3,155 305 (220) 3,240 Balance at June 30, 2023 $ (31,674) $ (2,824) $ 34 $ (34,464) Balance at March 31, 2022 $ (13,766) $ (3,704) $ 308 $ (17,162) Other comprehensive income (loss) before reclassification (12,437) 239 — (12,198) Amounts reclassified from accumulated other comprehensive income (loss) — 80 (140) (60) Net current period other comprehensive income (loss) (12,437) 319 (140) (12,258) Balance at June 30, 2022 $ (26,203) $ (3,385) $ 168 $ (29,420) Balance at December 31, 2021 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (25,852) 522 — (25,330) Amounts reclassified from accumulated other comprehensive income (loss) (498) 162 (148) (484) Net current period other comprehensive income (loss) (26,350) 684 (148) (25,814) Balance at June 30, 2022 $ (26,203) $ (3,385) $ 168 $ (29,420) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown: Three Months Ended June 30, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 46,929 $ 105 $ 3 $ 6 $ (12) $ 47,031 Interest expense 16,439 — 999 23 (12) 17,449 Net interest income (expense) 30,490 105 (996) (17) — 29,582 Release of allowance for credit losses (4,235) — — — — (4,235) Net interest income (expense) after release of allowance for credit losses 34,725 105 (996) (17) — 33,817 Noninterest income 4,113 1,872 3,116 1,051 (3,733) 6,419 Noninterest Expenses: Salaries and employee benefits 9,053 7 4,623 2,063 — 15,746 Other expenses 14,148 18 2,163 1,940 (3,733) 14,536 Total noninterest expenses 23,201 25 6,786 4,003 (3,733) 30,282 Income (loss) before income taxes 15,637 1,952 (4,666) (2,969) — 9,954 Income taxes 3,237 643 (1,207) (717) — 1,956 Net income (loss) 12,400 1,309 (3,459) (2,252) — 7,998 Net loss attributable to noncontrolling interest — — — 114 — 114 Net income (loss) available to common shareholders $ 12,400 $ 1,309 $ (3,459) $ (2,138) $ — $ 8,112 Capital expenditures for the three months ended June 30, 2023 $ 155 $ — $ — $ 1,561 $ — $ 1,716 Total assets as of June 30, 2023 $ 3,295,564 $ 85,563 $ 335,193 $ 20,871 $ (385,344) $ 3,351,847 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 $ 375,171 $ 27,075 $ (382,119) $ 3,068,850 Goodwill as of June 30, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 Goodwill as of December 31, 2022 $ — $ — $ — $ 2,838 $ — $ 2,838 Three Months Ended June 30, 2022 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 27,910 $ 103 $ 87 $ — $ (10) $ 28,090 Interest expense 672 — 760 8 (10) 1,430 Net interest income (expense) 27,238 103 (673) (8) — 26,660 Release of allowance for loan losses 5,100 — — — 5,100 Net interest income (expense) after release of allowance for credit losses 22,138 103 (673) (8) — 21,560 Noninterest income 7,093 787 3,228 1,584 (3,308) 9,384 Noninterest Expenses: Salaries and employee benefits 9,948 — 4,439 2,198 — 16,585 Other expenses 10,913 94 2,247 1,441 (3,308) 11,387 Total noninterest expenses 20,861 94 6,686 3,639 (3,308) 27,972 Income (loss) before income taxes 8,370 796 (4,131) (2,063) — 2,972 Income taxes 1,771 207 (815) (464) — 699 Net income (loss) from continuing operations 6,599 589 (3,316) (1,599) — 2,273 Income from discontinued operations, before income taxes — — — 678 — 678 Income taxes - discontinued operations — — — 160 — 160 Net income from discontinued operations — — — 518 — 518 Net income (loss) 6,599 589 (3,316) (1,081) — 2,791 Net loss attributable to noncontrolling interest — — — 165 — 165 Net income (loss) available to common shareholders $ 6,599 $ 589 $ (3,316) $ (916) $ — $ 2,956 Capital expenditures for the three months ended June 30, 2022 $ — $ — $ 47 $ 834 $ — $ 881 Six Months Ended June 30, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 91,591 $ 210 $ 36 $ — $ (43) $ 91,794 Interest expense 27,480 — 1,992 54 (43) 29,483 Net interest income (expense) 64,111 210 (1,956) (54) — 62,311 Provision for credit losses 341 — — — — 341 Net interest income (expense) after provision for credit losses 63,770 210 (1,956) (54) — 61,970 Noninterest income 7,131 686 5,526 2,835 (6,692) 9,486 Noninterest Expenses: Salaries and employee benefits 18,104 7 9,573 4,808 — 32,492 Other expenses 25,202 52 4,080 3,465 (6,692) 26,107 Total noninterest expenses 43,306 59 13,653 8,273 (6,692) 58,599 Income (loss) before income taxes 27,595 837 (10,083) (5,492) — 12,857 Income taxes 5,752 139 (2,149) (1,321) — 2,421 Net income (loss) from continuing operations 21,843 698 (7,934) (4,171) — 10,436 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income taxes - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss) 21,843 698 (7,934) 4,611 — 19,218 Net loss attributable to noncontrolling interest — — — 236 — 236 Net income (loss) available to common shareholders $ 21,843 $ 698 $ (7,934) $ 4,847 $ — $ 19,454 Capital expenditures for the six months ended June 30, 2023 $ 492 $ — $ — $ 2,155 $ — $ 2,647 Six Months Ended June 30, 2022 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 51,081 $ 206 $ 80 $ — $ (15) $ 51,352 Interest expense 1,331 — 1,513 15 (15) 2,844 Net interest income (expense) 49,750 206 (1,433) (15) — 48,508 Provision for credit losses 6,380 — — — — 6,380 Net interest income (expense) after provision for credit losses 43,370 206 (1,433) (15) — 42,128 Noninterest income 13,991 2,010 5,899 3,120 (6,357) 18,663 Noninterest Expenses: Salaries and employee benefits 19,456 — 8,495 4,361 — 32,312 Other expenses 21,961 94 4,452 2,767 (6,357) 22,917 Total noninterest expenses 41,417 94 12,947 7,128 (6,357) 55,229 Income (loss) before income taxes 15,944 2,122 (8,481) (4,023) — 5,562 Income taxes 3,402 548 (1,684) (887) — 1,379 Net income (loss) from continuing operations 12,542 1,574 (6,797) (3,136) — 4,183 Income from discontinued operations, before income taxes — — — 1,664 — 1,664 Income taxes - discontinued operations — — — 385 — 385 Net income from discontinued operations — — — 1,279 — 1,279 Net income (loss) before noncontrolling interest 12,542 1,574 (6,797) (1,857) — 5,462 Net loss attributable to noncontrolling interest — — — 358 — 358 Net income (loss) available to common shareholders $ 12,542 $ 1,574 $ (6,797) $ (1,499) $ — $ 5,820 Capital expenditures for the six months ended June 30, 2022 $ 250 $ — $ 385 $ 1,474 $ — $ 2,109 |
Acquisition & Divestiture Act_2
Acquisition & Divestiture Activity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Major Classes of Assets, Liabilities, and Net Income From Discontinued Operations | The following table presents the major classes of assets held-for-sale from discontinued operations and liabilities held-for-sale from discontinued operations as of December 31, 2022: (Dollars in thousands) December 31, 2022 Premises and equipment $ 23 Accrued interest receivable and other assets 3,142 Goodwill 1,150 Total assets from discontinued operations $ 4,315 Accrued interest payable and other liabilities $ 5,444 Total liabilities from discontinued operations $ 5,444 The following table presents the major classes of net income from discontinued operations for the periods shown: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Compliance consulting income $ — $ 4,213 $ 2,369 $ 8,308 Gain on sale of discontinued operations — — 11,800 — Total income $ — $ 4,213 $ 14,169 $ 8,308 Salaries and employee benefits $ — $ 2,398 $ 2,082 $ 4,632 Other expenses — 1,137 256 2,012 Total expenses $ — $ 3,535 $ 2,338 $ 6,644 Income before income taxes $ — $ 678 $ 11,831 $ 1,664 Income taxes — 160 3,049 385 Net income from discontinued operations $ — $ 518 $ 8,782 $ 1,279 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Narrative (Details) $ in Thousands | Jan. 01, 2023 USD ($) | Jun. 30, 2023 USD ($) investment | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of equity method investments | investment | 3 | ||
Impact of adopting ASC 326, net of tax | $ (153,414) | $ (144,911) | |
Impact of adopting ASC 326 | Accounting Standards Update 2016-13 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | $ 10,000 | ||
Increase related to PCD financial assets | 1,200 | ||
Tax effect | 2,100 | ||
Impact of adopting ASC 326, net of tax | 6,600 | ||
Impact of adopting ASC 326 | Accounting Standards Update 2016-13 | Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | 8,900 | ||
Impact of adopting ASC 326 | Accounting Standards Update 2016-13 | Unfunded Commitments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | $ 1,100 | ||
Trabian | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 80.80% |
Investment Securities - Availab
Investment Securities - Available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 370,835 | $ 427,128 |
Unrealized Gain | 4,238 | 2,485 |
Unrealized Loss | (45,936) | (49,799) |
Fair Value | 329,137 | 379,814 |
United States government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 44,844 | 51,436 |
Unrealized Gain | 6 | 15 |
Unrealized Loss | (6,376) | (6,637) |
Fair Value | 38,474 | 44,814 |
United States sponsored mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 65,715 | 68,267 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (11,349) | (11,696) |
Fair Value | 54,366 | 56,571 |
United States treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 106,552 | 130,689 |
Unrealized Gain | 0 | 48 |
Unrealized Loss | (8,523) | (9,828) |
Fair Value | 98,029 | 120,909 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 136,352 | 157,842 |
Unrealized Gain | 4,232 | 2,412 |
Unrealized Loss | (19,518) | (21,618) |
Fair Value | 121,066 | 138,636 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,071 | 10,570 |
Unrealized Gain | 0 | 10 |
Unrealized Loss | (170) | (20) |
Fair Value | 8,901 | 10,560 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,500 | 7,500 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 7,500 | 7,500 |
Total debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 370,034 | 426,304 |
Unrealized Gain | 4,238 | 2,485 |
Unrealized Loss | (45,936) | (49,799) |
Fair Value | 328,336 | 378,990 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 801 | 824 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | $ 801 | $ 824 |
Investment Securities - Summary
Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale, Fair Value | ||
Fair Value | $ 329,137 | $ 379,814 |
Total debt securities | ||
Available for sale, Amortized Cost | ||
Within one year | 4,704 | |
After one year, but within five years | 112,082 | |
After five years, but within ten years | 39,867 | |
After ten years | 213,381 | |
Amortized Cost | 370,034 | |
Available for sale, Fair Value | ||
Within one year | 4,701 | |
After one year, but within five years | 103,496 | |
After five years, but within ten years | 35,626 | |
After ten years | 184,513 | |
Fair Value | $ 328,336 | $ 378,990 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Loss Positions (Details) | Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Investments in an unrealized loss position | ||
Amount of pretax loss if securities in an unrealized loss position are sold | $ 45,900,000 | |
Allowance for credit losses, continuous unrealized loss position | 0 | |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | 7,953,000 | $ 108,486,000 |
Less than 12 months, unrealized loss | (6,974,000) | (10,446,000) |
12 months or more, fair value | 273,767,000 | 212,317,000 |
12 months or more, unrealized loss | (38,962,000) | (39,353,000) |
Asset Pledged as Collateral | Public Funds, Repurchase Agreements, and Potential Borrowings | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 212,000,000 | $ 91,300,000 |
United States government agency securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 25 | 32 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 272,000 | $ 21,287,000 |
Less than 12 months, unrealized loss | 0 | (1,937,000) |
12 months or more, fair value | 36,479,000 | 19,423,000 |
12 months or more, unrealized loss | $ (6,376,000) | $ (4,700,000) |
United States sponsored mortgage-backed securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 48 | 51 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 2,362,000 | $ 6,953,000 |
Less than 12 months, unrealized loss | (22,000) | (852,000) |
12 months or more, fair value | 52,004,000 | 49,618,000 |
12 months or more, unrealized loss | $ (11,327,000) | $ (10,844,000) |
United States treasury securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 23 | 29 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | $ 11,936,000 |
Less than 12 months, unrealized loss | 0 | (130,000) |
12 months or more, fair value | 98,028,000 | 102,092,000 |
12 months or more, unrealized loss | $ (8,523,000) | $ (9,698,000) |
Municipal securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 155 | 173 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 2,890,000 | $ 65,930,000 |
Less than 12 months, unrealized loss | (6,810,000) | (7,507,000) |
12 months or more, fair value | 85,784,000 | 41,184,000 |
12 months or more, unrealized loss | $ (12,708,000) | $ (14,111,000) |
Corporate debt securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 7 | 3 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 2,429,000 | $ 2,380,000 |
Less than 12 months, unrealized loss | (142,000) | (20,000) |
12 months or more, fair value | 1,472,000 | 0 |
12 months or more, unrealized loss | $ (28,000) | $ 0 |
Investment Securities - Gains (
Investment Securities - Gains (Losses) on Sales of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of available-for-sale securities | $ 0 | $ 0 | $ 54,531 | $ 60,635 |
Gains, gross | 0 | 0 | 0 | 717 |
Losses, gross | 0 | 0 | 1,536 | 67 |
Proceeds from sales of equity securities | 206 | 1,100 | 206 | 1,100 |
Gain, gross | 0 | 100 | 0 | 100 |
Losses, gross | 294 | 0 | 294 | 0 |
Unrealized holding gains (losses) on equity securities | $ 160 | $ (26) | $ (148) | $ (85) |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loan Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Components of loans | |||
Total loans, excluding PCI | $ 2,310,554 | $ 2,368,180 | |
Collectively evaluated for impairment | $ 2,185,068 | ||
Total loans | 2,310,554 | 2,370,662 | |
Deferred loan origination costs, net | 1,833 | 1,983 | |
Loans receivable | 2,312,387 | 2,372,645 | |
Purchased credit impaired loans | |||
Components of loans | |||
Total loans | 0 | 2,482 | |
Total commercial | |||
Components of loans | |||
Total loans, excluding PCI | 1,568,047 | 1,610,910 | |
Collectively evaluated for impairment | 1,625,868 | ||
Total commercial | Business | |||
Components of loans | |||
Total loans, excluding PCI | 845,107 | 851,072 | |
Collectively evaluated for impairment | 818,227 | ||
Total commercial | Real estate | |||
Components of loans | |||
Total loans, excluding PCI | 616,034 | 632,839 | |
Collectively evaluated for impairment | 696,454 | ||
Total commercial | Acquisition, development and construction | |||
Components of loans | |||
Total loans, excluding PCI | 106,906 | 126,999 | |
Collectively evaluated for impairment | 111,187 | ||
Residential real estate | |||
Components of loans | |||
Total loans, excluding PCI | 674,090 | 606,970 | |
Collectively evaluated for impairment | 432,154 | ||
Residential real estate | Purchased credit impaired loans | |||
Components of loans | |||
Collectively evaluated for impairment | 0 | 2,482 | |
Home equity lines of credit | |||
Components of loans | |||
Total loans, excluding PCI | 16,651 | 18,734 | |
Consumer | |||
Components of loans | |||
Total loans, excluding PCI | $ 51,766 | $ 131,566 | |
Collectively evaluated for impairment | $ 107,054 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | $ 6,023 | |||
Impaired loans with specific allowance, related allowance | 1,743 | |||
Impaired loans with no specific allowance, recorded investment | 9,837 | |||
Total impaired loans, recorded investment | 15,860 | |||
Total impaired loans, unpaid principal balance | 22,325 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | $ 22,205 | $ 21,875 | ||
Interest Income Recognized on Accrual Basis | 21 | 43 | ||
Interest Income Recognized on Cash Basis | 19 | 42 | ||
Individually evaluated for impairment | 23,640 | 23,640 | $ 9,402 | |
Collateral value | 12,444 | |||
Individually evaluated for impairment, allowance | 1,595 | 1,595 | 3,256 | |
Real Estate | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 3,033 | |||
Collateral value | 2,503 | |||
Vehicles and Equipment | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 4,967 | |||
Collateral value | 9,312 | |||
Assignment of Cash Flow | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 900 | |||
Collateral value | 0 | |||
Accounts Receivable | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 238 | |||
Collateral value | 178 | |||
Other | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 264 | |||
Collateral value | 451 | |||
Total commercial | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 4,676 | |||
Impaired loans with specific allowance, related allowance | 1,475 | |||
Impaired loans with no specific allowance, recorded investment | 7,140 | |||
Total impaired loans, recorded investment | 11,816 | |||
Total impaired loans, unpaid principal balance | 18,209 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 12,918 | 12,736 | ||
Interest Income Recognized on Accrual Basis | 16 | 33 | ||
Interest Income Recognized on Cash Basis | 15 | 33 | ||
Individually evaluated for impairment | 14,204 | 14,204 | 6,788 | |
Individually evaluated for impairment, allowance | 1,299 | 1,299 | 2,666 | |
Total commercial | Real Estate | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 1,434 | |||
Total commercial | Vehicles and Equipment | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 3,952 | |||
Total commercial | Assignment of Cash Flow | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 900 | |||
Total commercial | Accounts Receivable | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 238 | |||
Total commercial | Other | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 264 | |||
Total commercial | Business | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 3,436 | |||
Impaired loans with specific allowance, related allowance | 1,253 | |||
Impaired loans with no specific allowance, recorded investment | 7,015 | |||
Total impaired loans, recorded investment | 10,451 | |||
Total impaired loans, unpaid principal balance | 15,324 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 11,015 | 10,741 | ||
Interest Income Recognized on Accrual Basis | 0 | 0 | ||
Interest Income Recognized on Cash Basis | 0 | 0 | ||
Individually evaluated for impairment | 11,953 | 11,953 | 6,788 | |
Individually evaluated for impairment, allowance | 1,076 | 1,076 | 2,666 | |
Total commercial | Business | Real Estate | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 1,434 | |||
Total commercial | Business | Vehicles and Equipment | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 3,952 | |||
Total commercial | Business | Assignment of Cash Flow | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 900 | |||
Total commercial | Business | Accounts Receivable | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 238 | |||
Total commercial | Business | Other | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 264 | |||
Total commercial | Real estate | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 1,240 | |||
Impaired loans with specific allowance, related allowance | 222 | |||
Impaired loans with no specific allowance, recorded investment | 125 | |||
Total impaired loans, recorded investment | 1,365 | |||
Total impaired loans, unpaid principal balance | 1,470 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 1,597 | 1,681 | ||
Interest Income Recognized on Accrual Basis | 16 | 33 | ||
Interest Income Recognized on Cash Basis | 15 | 33 | ||
Individually evaluated for impairment | 1,182 | 1,182 | ||
Individually evaluated for impairment, allowance | 223 | 223 | ||
Total commercial | Acquisition, development and construction | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 0 | |||
Impaired loans with specific allowance, related allowance | 0 | |||
Impaired loans with no specific allowance, recorded investment | 0 | |||
Total impaired loans, recorded investment | 0 | |||
Total impaired loans, unpaid principal balance | 1,415 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 306 | 314 | ||
Interest Income Recognized on Accrual Basis | 0 | 0 | ||
Interest Income Recognized on Cash Basis | 0 | 0 | ||
Individually evaluated for impairment | 1,069 | 1,069 | ||
Individually evaluated for impairment, allowance | 0 | 0 | ||
Residential real estate | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 0 | |||
Impaired loans with specific allowance, related allowance | 0 | |||
Impaired loans with no specific allowance, recorded investment | 2,603 | |||
Total impaired loans, recorded investment | 2,603 | |||
Total impaired loans, unpaid principal balance | 2,671 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 8,374 | 8,372 | ||
Interest Income Recognized on Accrual Basis | 5 | 10 | ||
Interest Income Recognized on Cash Basis | 4 | 9 | ||
Individually evaluated for impairment | 8,407 | 8,407 | 1,599 | |
Individually evaluated for impairment, allowance | 84 | 84 | 391 | |
Residential real estate | Real Estate | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 1,599 | |||
Residential real estate | Vehicles and Equipment | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Residential real estate | Assignment of Cash Flow | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Residential real estate | Accounts Receivable | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Residential real estate | Other | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Home Equity | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 0 | |||
Impaired loans with specific allowance, related allowance | 0 | |||
Impaired loans with no specific allowance, recorded investment | 90 | |||
Total impaired loans, recorded investment | 90 | |||
Total impaired loans, unpaid principal balance | 94 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 159 | 174 | ||
Interest Income Recognized on Accrual Basis | 0 | 0 | ||
Interest Income Recognized on Cash Basis | 0 | 0 | ||
Individually evaluated for impairment | 198 | 198 | ||
Individually evaluated for impairment, allowance | 0 | 0 | ||
Consumer | ||||
Impaired loans by class | ||||
Impaired loans with specific allowance, recorded investment | 1,347 | |||
Impaired loans with specific allowance, related allowance | 268 | |||
Impaired loans with no specific allowance, recorded investment | 4 | |||
Total impaired loans, recorded investment | 1,351 | |||
Total impaired loans, unpaid principal balance | $ 1,351 | |||
Average recorded investment in impaired loans and related interest income recognized | ||||
Average Investment in Impaired Loans | 754 | 593 | ||
Interest Income Recognized on Accrual Basis | 0 | 0 | ||
Interest Income Recognized on Cash Basis | 0 | 0 | ||
Individually evaluated for impairment | 831 | 831 | 1,015 | |
Individually evaluated for impairment, allowance | $ 212 | $ 212 | 199 | |
Consumer | Real Estate | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Consumer | Vehicles and Equipment | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 1,015 | |||
Consumer | Assignment of Cash Flow | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Consumer | Accounts Receivable | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | 0 | |||
Consumer | Other | ||||
Average recorded investment in impaired loans and related interest income recognized | ||||
Individually evaluated for impairment | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Narrative (Details) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) category | Jun. 30, 2023 loan | Jun. 30, 2023 property | Jun. 30, 2023 component | Dec. 31, 2022 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||||
Foreclosed properties held | $ 0.9 | ||||
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 | ||||
Commercial relationship credit review threshold amount, independent external review | $ 3 | ||||
Past due period before loans placed in non-accrual status | 90 days | ||||
Recent loan payment history before removal from non-accrual status | 6 months | ||||
Allowance for loan losses, number of evaluation components | component | 2 | ||||
Impaired loans, related reserves | $ 0 | $ 0.1 | |||
Liability for unfunded commitments | 1.4 | $ 0.5 | |||
Residential real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Foreclosed properties held | $ 0.8 | ||||
Increase (decrease) in impaired loans (as a percentage) | 89% | ||||
Number foreclosed properties held | 2,000,000 | 2 | |||
Investment in loans in the process of foreclosure | $ 0.2 | ||||
Residential real estate | Other Loan Relationships | |||||
Financing Receivable, Impaired [Line Items] | |||||
Foreclosed properties held | $ 0.1 | ||||
Increase (decrease) in impaired loans (as a percentage) | 11% | ||||
Total commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Number foreclosed properties held | loan | 2 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Total commercial business loans | |||||
2023 | $ 172,238 | $ 172,238 | |||
2022 | 919,240 | 919,240 | |||
2021 | 532,694 | 532,694 | |||
2020 | 109,086 | 109,086 | |||
2019 | 68,918 | 68,918 | |||
Prior | 257,256 | 257,256 | |||
Revolving Loans Amortized Cost Basis | 251,122 | 251,122 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 2,310,554 | $ 2,208,708 | 2,310,554 | $ 2,208,708 | $ 2,370,662 |
Gross charge-offs | |||||
2023 | 217 | ||||
2022 | 6,772 | ||||
2021 | 1,384 | ||||
2020 | 141 | ||||
2019 | 0 | ||||
Prior | 33 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 3,700 | 2,529 | 8,547 | 3,652 | |
Total commercial | |||||
Total commercial business loans | |||||
Total Loans | 1,568,047 | 1,640,072 | 1,568,047 | 1,640,072 | 1,610,910 |
Gross charge-offs | |||||
Total | 127 | 0 | 268 | 0 | |
Total commercial | Business | |||||
Total commercial business loans | |||||
2023 | 67,617 | 67,617 | |||
2022 | 267,559 | 267,559 | |||
2021 | 142,861 | 142,861 | |||
2020 | 30,949 | 30,949 | |||
2019 | 22,889 | 22,889 | |||
Prior | 77,526 | 77,526 | |||
Revolving Loans Amortized Cost Basis | 235,707 | 235,707 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 845,107 | 830,180 | 845,107 | 830,180 | 851,072 |
Gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 116 | ||||
2020 | 141 | ||||
2019 | 0 | ||||
Prior | 11 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Total | 127 | 0 | 268 | 0 | |
Total commercial | Real estate | |||||
Total commercial business loans | |||||
2023 | 32,028 | 32,028 | |||
2022 | 157,930 | 157,930 | |||
2021 | 231,805 | 231,805 | |||
2020 | 12,251 | 12,251 | |||
2019 | 33,588 | 33,588 | |||
Prior | 148,432 | 148,432 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 616,034 | 697,636 | 616,034 | 697,636 | 632,839 |
Gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Total commercial | Acquisition, development and construction | |||||
Total commercial business loans | |||||
2023 | 1,943 | 1,943 | |||
2022 | 32,930 | 32,930 | |||
2021 | 44,498 | 44,498 | |||
2020 | 21,945 | 21,945 | |||
2019 | 3,128 | 3,128 | |||
Prior | 2,462 | 2,462 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 106,906 | 112,256 | 106,906 | 112,256 | 126,999 |
Gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Residential real estate | |||||
Total commercial business loans | |||||
2023 | 61,630 | 61,630 | |||
2022 | 426,251 | 426,251 | |||
2021 | 105,465 | 105,465 | |||
2020 | 43,939 | 43,939 | |||
2019 | 9,084 | 9,084 | |||
Prior | 27,721 | 27,721 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 674,090 | 440,561 | 674,090 | 440,561 | 609,452 |
Gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 22 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 0 | 0 | 22 | 0 | |
Home Equity | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 37 | 37 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 174 | 174 | |||
Prior | 1,025 | 1,025 | |||
Revolving Loans Amortized Cost Basis | 15,415 | 15,415 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 16,651 | 20,190 | 16,651 | 20,190 | 18,734 |
Gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Consumer | |||||
Total commercial business loans | |||||
2023 | 9,020 | 9,020 | |||
2022 | 34,533 | 34,533 | |||
2021 | 8,065 | 8,065 | |||
2020 | 2 | 2 | |||
2019 | 56 | 56 | |||
Prior | 90 | 90 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 51,766 | 107,885 | 51,766 | 107,885 | 131,566 |
Gross charge-offs | |||||
2023 | 217 | ||||
2022 | 6,772 | ||||
2021 | 1,268 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term | 0 | ||||
Total | 3,573 | $ 2,529 | 8,257 | $ 3,652 | |
Pass | |||||
Total commercial business loans | |||||
2023 | 172,078 | 172,078 | |||
2022 | 916,812 | 916,812 | |||
2021 | 530,938 | 530,938 | |||
2020 | 104,104 | 104,104 | |||
2019 | 55,136 | 55,136 | |||
Prior | 208,270 | 208,270 | |||
Revolving Loans Amortized Cost Basis | 250,972 | 250,972 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 2,238,310 | 2,238,310 | 2,299,448 | ||
Pass | Total commercial | |||||
Total commercial business loans | |||||
Total Loans | 1,544,104 | ||||
Pass | Total commercial | Business | |||||
Total commercial business loans | |||||
2023 | 67,617 | 67,617 | |||
2022 | 265,932 | 265,932 | |||
2021 | 141,159 | 141,159 | |||
2020 | 29,974 | 29,974 | |||
2019 | 17,500 | 17,500 | |||
Prior | 66,225 | 66,225 | |||
Revolving Loans Amortized Cost Basis | 235,707 | 235,707 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 824,114 | 824,114 | 830,319 | ||
Pass | Total commercial | Real estate | |||||
Total commercial business loans | |||||
2023 | 32,028 | 32,028 | |||
2022 | 157,930 | 157,930 | |||
2021 | 231,805 | 231,805 | |||
2020 | 12,251 | 12,251 | |||
2019 | 26,729 | 26,729 | |||
Prior | 113,943 | 113,943 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 574,686 | 574,686 | 592,997 | ||
Pass | Total commercial | Acquisition, development and construction | |||||
Total commercial business loans | |||||
2023 | 1,943 | 1,943 | |||
2022 | 32,930 | 32,930 | |||
2021 | 44,498 | 44,498 | |||
2020 | 21,945 | 21,945 | |||
2019 | 3,128 | 3,128 | |||
Prior | 1,653 | 1,653 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 106,097 | 106,097 | 120,788 | ||
Pass | Residential real estate | |||||
Total commercial business loans | |||||
2023 | 61,630 | 61,630 | |||
2022 | 426,251 | 426,251 | |||
2021 | 105,465 | 105,465 | |||
2020 | 39,932 | 39,932 | |||
2019 | 7,549 | 7,549 | |||
Prior | 25,496 | 25,496 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 666,323 | 666,323 | 605,513 | ||
Pass | Home Equity | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 37 | 37 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 174 | 174 | |||
Prior | 866 | 866 | |||
Revolving Loans Amortized Cost Basis | 15,265 | 15,265 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 16,342 | 16,342 | 18,269 | ||
Pass | Consumer | |||||
Total commercial business loans | |||||
2023 | 8,860 | 8,860 | |||
2022 | 33,732 | 33,732 | |||
2021 | 8,011 | 8,011 | |||
2020 | 2 | 2 | |||
2019 | 56 | 56 | |||
Prior | 87 | 87 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 50,748 | 50,748 | 131,562 | ||
Special Mention | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 1,395 | 1,395 | |||
2021 | 83 | 83 | |||
2020 | 4,635 | 4,635 | |||
2019 | 8,339 | 8,339 | |||
Prior | 20,445 | 20,445 | |||
Revolving Loans Amortized Cost Basis | 150 | 150 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 35,047 | 35,047 | 31,258 | ||
Special Mention | Total commercial | |||||
Total commercial business loans | |||||
Total Loans | 30,123 | ||||
Special Mention | Total commercial | Business | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 1,395 | 1,395 | |||
2021 | 83 | 83 | |||
2020 | 711 | 711 | |||
2019 | 98 | 98 | |||
Prior | 4,502 | 4,502 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 6,789 | 6,789 | 5,963 | ||
Special Mention | Total commercial | Real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 6,859 | 6,859 | |||
Prior | 15,123 | 15,123 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 21,982 | 21,982 | 18,883 | ||
Special Mention | Total commercial | Acquisition, development and construction | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 10 | 10 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 10 | 10 | 5,277 | ||
Special Mention | Residential real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 3,924 | 3,924 | |||
2019 | 1,382 | 1,382 | |||
Prior | 735 | 735 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 6,041 | 6,041 | 760 | ||
Special Mention | Home Equity | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 75 | 75 | |||
Revolving Loans Amortized Cost Basis | 150 | 150 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 225 | 225 | 375 | ||
Special Mention | Consumer | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 0 | 0 | 0 | ||
Substandard | |||||
Total commercial business loans | |||||
2023 | 160 | 160 | |||
2022 | 1,033 | 1,033 | |||
2021 | 529 | 529 | |||
2020 | 83 | 83 | |||
2019 | 5,443 | 5,443 | |||
Prior | 26,648 | 26,648 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 33,896 | 33,896 | 35,287 | ||
Substandard | Total commercial | |||||
Total commercial business loans | |||||
Total Loans | 33,637 | ||||
Substandard | Total commercial | Business | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 232 | 232 | |||
2021 | 475 | 475 | |||
2020 | 0 | 0 | |||
2019 | 5,290 | 5,290 | |||
Prior | 5,485 | 5,485 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 11,482 | 11,482 | 12,103 | ||
Substandard | Total commercial | Real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 19,366 | 19,366 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 19,366 | 19,366 | 20,600 | ||
Substandard | Total commercial | Acquisition, development and construction | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 799 | 799 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 799 | 799 | 934 | ||
Substandard | Residential real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 83 | 83 | |||
2019 | 153 | 153 | |||
Prior | 912 | 912 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 1,148 | 1,148 | 1,556 | ||
Substandard | Home Equity | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 84 | 84 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 84 | 84 | 90 | ||
Substandard | Consumer | |||||
Total commercial business loans | |||||
2023 | 160 | 160 | |||
2022 | 801 | 801 | |||
2021 | 54 | 54 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 2 | 2 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 1,017 | 1,017 | 4 | ||
Doubtful | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 1,144 | 1,144 | |||
2020 | 264 | 264 | |||
2019 | 0 | 0 | |||
Prior | 1,893 | 1,893 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 3,301 | 3,301 | 4,669 | ||
Doubtful | Total commercial | |||||
Total commercial business loans | |||||
Total Loans | 3,046 | ||||
Doubtful | Total commercial | Business | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 1,144 | 1,144 | |||
2020 | 264 | 264 | |||
2019 | 0 | 0 | |||
Prior | 1,314 | 1,314 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 2,722 | 2,722 | 2,687 | ||
Doubtful | Total commercial | Real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 0 | 0 | 359 | ||
Doubtful | Total commercial | Acquisition, development and construction | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 0 | 0 | 0 | ||
Doubtful | Residential real estate | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 578 | 578 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 578 | 578 | 1,623 | ||
Doubtful | Home Equity | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | 0 | 0 | 0 | ||
Doubtful | Consumer | |||||
Total commercial business loans | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 1 | 1 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Total Loans | $ 1 | $ 1 | $ 0 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Aging (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Aging categories of performing loans and nonaccrual loans | |||
Total loans | $ 2,310,554 | $ 2,370,662 | $ 2,208,708 |
Non-Accrual | 13,646 | 11,165 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 3,825 | ||
Interest Income Recognized | 0 | ||
Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,568,047 | 1,610,910 | 1,640,072 |
Non-Accrual | 10,801 | 7,528 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 3,825 | ||
Interest Income Recognized | 0 | ||
Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 845,107 | 851,072 | 830,180 |
Non-Accrual | 10,801 | 7,528 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 3,825 | ||
Interest Income Recognized | 0 | ||
Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 616,034 | 632,839 | 697,636 |
Non-Accrual | 0 | 0 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 0 | ||
Interest Income Recognized | 0 | ||
Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 106,906 | 126,999 | 112,256 |
Non-Accrual | 0 | 0 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 0 | ||
Interest Income Recognized | 0 | ||
Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 674,090 | 609,452 | 440,561 |
Non-Accrual | 1,659 | 2,196 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 0 | ||
Interest Income Recognized | 0 | ||
Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 16,651 | 18,734 | 20,190 |
Non-Accrual | 169 | 90 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 0 | ||
Interest Income Recognized | 0 | ||
Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 51,766 | 131,566 | $ 107,885 |
Non-Accrual | 1,017 | 1,351 | |
90+ Days Still Accruing | 0 | 0 | |
Non Accrual with No Credit Loss | 0 | ||
Interest Income Recognized | 0 | ||
Current | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,288,896 | 2,355,139 | |
Current | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,556,589 | 1,609,950 | |
Current | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 834,448 | 850,112 | |
Current | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 616,034 | 632,839 | |
Current | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 106,107 | 126,999 | |
Current | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 672,516 | 606,554 | |
Current | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 16,651 | 18,131 | |
Current | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 43,140 | 120,504 | |
30-59 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 6,358 | 9,271 | |
30-59 Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,038 | 0 | |
30-59 Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 239 | 0 | |
30-59 Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
30-59 Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 799 | 0 | |
30-59 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 1,820 | |
30-59 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 603 | |
30-59 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 5,320 | 6,848 | |
60-89 Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 6,845 | 4,905 | |
60-89 Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 4,554 | 960 | |
60-89 Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 4,554 | 960 | |
60-89 Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 1,078 | |
60-89 Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
60-89 Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 2,291 | 2,867 | |
90+ Days Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 8,455 | 1,347 | |
90+ Days Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 5,866 | 0 | |
90+ Days Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 5,866 | 0 | |
90+ Days Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
90+ Days Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
90+ Days Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,574 | 0 | |
90+ Days Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
90+ Days Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,015 | 1,347 | |
Total Past Due | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 21,658 | 15,523 | |
Total Past Due | Total commercial | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 11,458 | 960 | |
Total Past Due | Total commercial | Business | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 10,659 | 960 | |
Total Past Due | Total commercial | Real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 0 | |
Total Past Due | Total commercial | Acquisition, development and construction | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 799 | 0 | |
Total Past Due | Residential real estate | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 1,574 | 2,898 | |
Total Past Due | Home Equity | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | 0 | 603 | |
Total Past Due | Consumer | |||
Aging categories of performing loans and nonaccrual loans | |||
Total loans | $ 8,626 | $ 11,062 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Changes in the allowance for loan losses | ||||
Beginning balance | $ 35,513 | $ 18,194 | $ 23,837 | $ 17,603 |
Provision (release of allowance) for credit losses | (3,987) | 5,714 | 468 | 7,043 |
Provision (release of allowance) for credit losses | (4,235) | 5,100 | 341 | 6,380 |
Initial allowance on loans purchased with credit deterioration | 1,217 | |||
Charge-offs | (3,700) | (2,529) | (8,547) | (3,652) |
Recoveries | 2,468 | 1,355 | 5,637 | 1,740 |
Ending balance | 30,294 | 22,734 | 30,294 | 22,734 |
Individually evaluated for impairment | 3,256 | 1,595 | 3,256 | 1,595 |
Collectively evaluated for impairment | 21,139 | 21,139 | ||
Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 614 | 663 | ||
Provision (release of allowance) for credit losses | (614) | (663) | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 7,682 | |||
Unfunded Commitments | ||||
Changes in the allowance for loan losses | ||||
Provision (release of allowance) for credit losses | (200) | (100) | ||
Total commercial | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 14,735 | 13,170 | 15,539 | 14,100 |
Provision (release of allowance) for credit losses | 1,438 | 2,451 | 2,721 | 1,513 |
Initial allowance on loans purchased with credit deterioration | 710 | |||
Charge-offs | (127) | 0 | (268) | 0 |
Recoveries | 20 | 64 | 48 | 72 |
Ending balance | 16,066 | 15,685 | 16,066 | 15,685 |
Individually evaluated for impairment | 2,666 | 1,299 | 2,666 | 1,299 |
Collectively evaluated for impairment | 14,386 | 14,386 | ||
Total commercial | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 165 | 0 | ||
Provision (release of allowance) for credit losses | (165) | 0 | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total commercial | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | (2,684) | |||
Total commercial | Business | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 9,918 | 6,869 | 8,771 | 8,027 |
Provision (release of allowance) for credit losses | 1,504 | 1,199 | 2,186 | 40 |
Initial allowance on loans purchased with credit deterioration | 710 | |||
Charge-offs | (127) | 0 | (268) | 0 |
Recoveries | 13 | 9 | 35 | 10 |
Ending balance | 11,308 | 8,077 | 11,308 | 8,077 |
Individually evaluated for impairment | 2,666 | 1,076 | 2,666 | 1,076 |
Collectively evaluated for impairment | 7,001 | 7,001 | ||
Total commercial | Business | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 112 | 0 | ||
Provision (release of allowance) for credit losses | (112) | 0 | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total commercial | Business | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | (126) | |||
Total commercial | Real estate | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 3,177 | 5,566 | 5,704 | 5,091 |
Provision (release of allowance) for credit losses | (133) | 1,020 | 180 | 1,488 |
Initial allowance on loans purchased with credit deterioration | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 7 | 55 | 13 | 62 |
Ending balance | 3,051 | 6,641 | 3,051 | 6,641 |
Individually evaluated for impairment | 223 | 223 | ||
Collectively evaluated for impairment | 6,418 | 6,418 | ||
Total commercial | Real estate | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 53 | 0 | ||
Provision (release of allowance) for credit losses | (53) | 0 | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total commercial | Real estate | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | (2,846) | |||
Total commercial | Acquisition, development and construction | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 1,640 | 735 | 1,064 | 982 |
Provision (release of allowance) for credit losses | 67 | 232 | 355 | (15) |
Initial allowance on loans purchased with credit deterioration | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 1,707 | 967 | 1,707 | 967 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 967 | 967 | ||
Total commercial | Acquisition, development and construction | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 288 | |||
Residential real estate | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 7,618 | 1,127 | 2,880 | 948 |
Provision (release of allowance) for credit losses | (450) | 645 | (86) | 824 |
Initial allowance on loans purchased with credit deterioration | 507 | |||
Charge-offs | 0 | 0 | (22) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 7,168 | 1,772 | 7,168 | 1,772 |
Individually evaluated for impairment | 391 | 84 | 391 | 84 |
Collectively evaluated for impairment | 1,688 | 1,688 | ||
Residential real estate | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 323 | 544 | ||
Provision (release of allowance) for credit losses | (323) | (544) | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Residential real estate | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 3,889 | |||
Home Equity | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 119 | 131 | 131 | 128 |
Provision (release of allowance) for credit losses | (6) | 8 | (14) | 9 |
Initial allowance on loans purchased with credit deterioration | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 2 | 2 | 4 |
Ending balance | 114 | 141 | 114 | 141 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 141 | 141 | ||
Home Equity | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | (5) | |||
Consumer | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 13,041 | 3,766 | 5,287 | 2,427 |
Provision (release of allowance) for credit losses | (4,969) | 2,610 | (2,153) | 4,697 |
Initial allowance on loans purchased with credit deterioration | 0 | |||
Charge-offs | (3,573) | (2,529) | (8,257) | (3,652) |
Recoveries | 2,447 | 1,289 | 5,587 | 1,664 |
Ending balance | 6,946 | 5,136 | 6,946 | 5,136 |
Individually evaluated for impairment | $ 199 | 212 | 199 | 212 |
Collectively evaluated for impairment | 4,924 | 4,924 | ||
Consumer | Purchased credit impaired loans | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | 126 | 119 | ||
Provision (release of allowance) for credit losses | (126) | (119) | ||
Ending balance | 0 | 0 | ||
Collectively evaluated for impairment | $ 0 | $ 0 | ||
Consumer | Impact of adopting ASC 326 | ||||
Changes in the allowance for loan losses | ||||
Beginning balance | $ 6,482 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Primary Segments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Components of loans | |||
Individually evaluated for impairment | $ 9,402 | $ 23,640 | |
Collectively evaluated for impairment | 2,185,068 | ||
Total Loans | 2,310,554 | $ 2,370,662 | 2,208,708 |
Total commercial | |||
Components of loans | |||
Individually evaluated for impairment | 6,788 | 14,204 | |
Collectively evaluated for impairment | 1,625,868 | ||
Total Loans | 1,568,047 | 1,610,910 | 1,640,072 |
Total commercial | Business | |||
Components of loans | |||
Individually evaluated for impairment | 6,788 | 11,953 | |
Collectively evaluated for impairment | 818,227 | ||
Total Loans | 845,107 | 851,072 | 830,180 |
Total commercial | Real estate | |||
Components of loans | |||
Individually evaluated for impairment | 1,182 | ||
Collectively evaluated for impairment | 696,454 | ||
Total Loans | 616,034 | 632,839 | 697,636 |
Total commercial | Acquisition, development and construction | |||
Components of loans | |||
Individually evaluated for impairment | 1,069 | ||
Collectively evaluated for impairment | 111,187 | ||
Total Loans | 106,906 | 126,999 | 112,256 |
Residential real estate | |||
Components of loans | |||
Individually evaluated for impairment | 1,599 | 8,407 | |
Collectively evaluated for impairment | 432,154 | ||
Total Loans | 674,090 | 609,452 | 440,561 |
Home Equity | |||
Components of loans | |||
Individually evaluated for impairment | 198 | ||
Collectively evaluated for impairment | 19,992 | ||
Total Loans | 16,651 | 18,734 | 20,190 |
Consumer | |||
Components of loans | |||
Individually evaluated for impairment | 1,015 | 831 | |
Collectively evaluated for impairment | 107,054 | ||
Total Loans | $ 51,766 | $ 131,566 | $ 107,885 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Carrying Amount of PCI Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for credit losses | $ 30,294 | $ 35,513 | $ 23,837 | $ 22,734 | $ 18,194 | $ 17,603 |
Purchased credit impaired loans | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Carrying amount of purchased credit impaired loans | 5,800 | |||||
Allowance for credit losses | $ 0 | $ 614 | $ 663 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Accretiable Yield (Details) - Purchased credit impaired loans - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 6,253 | $ 6,505 |
Accretion of income | (985) | (1,793) |
Accretion from disposals | (1,041) | (1,041) |
Disposals | (1,271) | (1,271) |
Other changes in expected cash flows | (1,047) | (491) |
Ending balance | $ 1,909 | $ 1,909 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Amortized Cost Basis of Modified Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) loan | Jun. 30, 2023 USD ($) loan | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 15,939 | $ 15,939 |
Total Class of Financing Receivable | 1% | 1% |
Number of loans modified in period | loan | 5 | 5 |
Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 15,939 | 15,939 |
Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 15,939 | $ 15,939 |
Total Class of Financing Receivable | 1% | 1% |
Total commercial | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total commercial | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 15,939 | 15,939 |
Total commercial | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | Business | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 4,563 | $ 4,563 |
Total Class of Financing Receivable | 1% | 1% |
Number of loans modified in period | loan | 4 | 4 |
Total commercial | Business | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total commercial | Business | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 4,563 | 4,563 |
Total commercial | Business | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | Business | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | Real estate | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 11,376 | $ 11,376 |
Total Class of Financing Receivable | 2% | 2% |
Number of loans modified in period | loan | 1 | 1 |
Total commercial | Real estate | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total commercial | Real estate | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 11,376 | 11,376 |
Total commercial | Real estate | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Total commercial | Real estate | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Residential real estate | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Residential real estate | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Residential real estate | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Residential real estate | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Residential real estate | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Home Equity | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Home Equity | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Home Equity | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Home Equity | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Home Equity | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Consumer | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Consumer | Principal Forgiveness | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Consumer | Payment Delay | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Consumer | Term Extension | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | 0 | 0 |
Consumer | Interest Rate Reduction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Total | $ 0 | $ 0 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Performance of Modified Loans (Details) $ in Thousands | Jun. 30, 2023 USD ($) loan |
30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | $ 0 |
60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 2,075 |
90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 2,075 |
Total commercial | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total commercial | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 2,075 |
Total commercial | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total commercial | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 2,075 |
Total commercial | Business | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total commercial | Business | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 2,075 |
Total commercial | Business | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total commercial | Business | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | $ 2,075 |
Number of past due modified loans | loan | 1 |
Residential real estate | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | $ 0 |
Residential real estate | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential real estate | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential real estate | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home Equity | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home Equity | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home Equity | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home Equity | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Consumer | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Consumer | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Consumer | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Consumer | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | $ 0 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Modified Loans with Subsequent Default (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) loan | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 2,075 |
Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,075 |
Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,075 |
Total commercial | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,075 |
Total commercial | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Business | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 2,075 |
Number of modified loans that has defaulted | loan | 1 |
Total commercial | Business | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total commercial | Business | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,075 |
Total commercial | Business | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Business | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home Equity | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home Equity | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home Equity | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home Equity | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home Equity | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Consumer | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Consumer | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Consumer | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Consumer | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Consumer | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) borrower loan | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Specific reserve allocations for TDR's | $ 400 | |
Troubled debt restructuring loans | 10,400 | |
Loans defaulted under the restructured terms | $ 2,075 | |
Acquisition, development and construction | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 5,700 | |
Number of loans to defaulted borrowers | loan | 9,000,000 | |
Number of borrower defaulted | borrower | 7,000,000 | |
Acquisition, development and construction | Commercial Borrower One | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | $ 1,900 | |
Acquisition, development and construction | Commercial Borrower Three | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 3,100 | |
Acquisition, development and construction | Commercial Borrowers Four Through Seven | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 200 | |
Restructured Equipment Loan | Commercial Borrower Two | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Loans defaulted under the restructured terms | 500 | |
Accruing | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Troubled debt restructuring loans | $ 4,700 | |
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | ||
Details related to loans identified as Troubled Debt Restructurings (TDRs): | ||
Percentage of total impaired loans | 45% |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Premises and equipment | ||
Gross premises and equipment | $ 44,479 | $ 43,770 |
Accumulated depreciation | (22,072) | (20,140) |
Premises and equipment, net | 22,407 | 23,630 |
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 | 17,666 | 17,549 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 6,598 | 6,019 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 521 | 508 |
Leasehold improvements | ||
Premises and equipment | ||
Gross premises and equipment | $ 2,836 | $ 2,836 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease liability | $ 14.5 | $ 15 |
Right-of-use asset | 13.3 | |
Operating lease, right of use asset | $ 13.2 | $ 13.9 |
Operating lease, weighted average remaining lease term (in years) | 11 years 1 month 6 days | 11 years 7 months 6 days |
Operating lease, weighted average discount rate, (as a percentage) | 3% | 3% |
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 Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets, finance leases | $ 1 | $ 14 | $ 7 | $ 29 |
Operating lease cost | 446 | 445 | 896 | 890 |
Short-term lease cost | 2 | 8 | 8 | 14 |
Variable lease cost | 10 | 10 | 19 | 19 |
Sublease income | (87) | 0 | (174) | 0 |
Total lease cost | $ 372 | $ 477 | $ 756 | $ 952 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Lease Liability (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Operating Leases | |
2024 | $ 829 |
2025 | 1,621 |
2026 | 1,618 |
2027 | 1,594 |
2028 | 1,625 |
2029 and thereafter | 10,111 |
Total future minimum lease payments | 17,398 |
Less: Amounts representing interest | (2,921) |
Present value of net future minimum lease payments | $ 14,477 |
Equity Method Investments (Deta
Equity Method Investments (Details) loan in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) loan | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments income | $ 1,873 | $ 549 | $ 680 | $ 1,687 | |
Intercoastal | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 40% | 40% | |||
Equity method investments income | $ (400) | 700 | $ (1,700) | 2,000 | |
Locked mortgage pipeline | $ 631,900 | $ 631,900 | $ 678,300 | ||
Warp Speed Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 37.50% | 37.50% | |||
Equity method investments income | $ 2,300 | $ 3,300 | |||
Locked mortgage pipeline | $ 116,900 | $ 116,900 | |||
Socure Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 10% | 10% | |||
Ownership percentage in equity security investment | 1% | 1% | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | $ 12,239 | 22,063 | $ 21,645 | 44,179 | |
Net income (loss) attributable to parent | (1,089) | 1,938 | (4,171) | 5,169 | |
Gain on sale of loans | $ 7,240 | $ 14,872 | $ 12,688 | $ 29,961 | |
Volume of loans sold | loan | 409,222 | 692,553 | 712,004 | 1,380,646 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Warp Speed Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | $ 39,816 | $ 75,333 | |||
Net income (loss) attributable to parent | 6,243 | 8,925 | |||
Gain on sale of loans | $ 12,464 | $ 25,146 | |||
Volume of loans sold | loan | 307,999 | 598,206 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 987,555 | $ 1,231,544 |
Interest-bearing demand | 639,814 | 720,074 |
Savings and money markets | 624,276 | 284,447 |
Time deposits, including CDs and IRAs | 707,294 | 334,417 |
Total deposits | 2,958,939 | 2,570,482 |
Time deposits that meet or exceed the FDIC insurance limit | $ 2,414 | $ 4,386 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Deposits [Abstract] | |
2024 | $ 402,287 |
2025 | 300,347 |
2026 | 1,617 |
2027 | 844 |
2028 | 1,959 |
Thereafter | 240 |
Total | 707,294 |
Overdrawn deposits | $ 3,400 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings, Long-term borrowings and Repurchase Agreements (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Borrowed funds | ||
FHLB maximum borrowing capacity | $ 766,400,000 | |
FHLB, remaining borrowing capacity | 753,100,000 | |
Short-term Borrowings and Repurchase Agreements | ||
Long-term notes from the FHLB | 0 | $ 0 |
Short-term Borrowings from FHLB | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 0 | 102,333,000 |
Average balance during the period | 35,347,000 | 15,494,000 |
Maximum month-end balance | $ 0 | $ 102,333,000 |
Weighted-average rate during the period | 5.07% | 2.82% |
Weighted-average rate at end of period | 0% | 4.45% |
Federal Funds Purchased | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | $ 0 | $ 0 |
Investment Securities | ||
Short-term Borrowings and Repurchase Agreements | ||
Investment securities held as collateral | 4,900,000 | 10,400,000 |
Repurchase Agreements | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 4,798,000 | 10,037,000 |
Average balance during the period | 6,514,000 | 10,987,000 |
Maximum month-end balance | $ 10,041,000 | $ 12,680,000 |
Weighted-average rate during the period | 0.03% | 0.05% |
Weighted-average rate at end of period | 0.01% | 0.06% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 30, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2007 | |
Subordinated Debt | |||||
Balance at end of period | $ 73,414 | $ 73,286 | |||
Subordinated Debt | |||||
Subordinated Debt | |||||
Balance at end of period | 73,414 | 73,286 | |||
Average balance during the period | 73,350 | 73,159 | |||
Maximum month-end balance | $ 73,414 | $ 73,286 | |||
Weighted-average rate during the period | 4.40% | 4.20% | |||
Weighted-average rate at end of period | 3.97% | 3.97% | |||
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% | |||
Subordinated Debt | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 2.54% | 4.01% | |||
Subordinated Debt | Subordinated Debentures | |||||
Subordinated Debt | |||||
Face amount of debt issued | $ 4,000 | ||||
Subordinated Debt | Subordinated Debentures | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 0.26% |
Borrowed Funds - Senior term lo
Borrowed Funds - Senior term loan (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Oct. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Secured Borrowings | |||
Senior term loan | $ 8,835 | $ 9,765 | |
Senior Loans | |||
Secured Borrowings | |||
Senior term loan | 8,835 | 9,765 | |
Average balance during the period | 9,557 | 2,328 | |
Maximum month-end balance | $ 9,768 | $ 9,886 | |
Weighted-average rate during the period | 8.27% | 7% | |
Weighted-average rate at end of period | 8.57% | 7.44% | |
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 | First year | |||
Secured Borrowings | |||
Periodic principal payment | $ 125 | ||
Senior Loans | Raymond James Senior Term Loan | Thereafter | |||
Secured Borrowings | |||
Periodic principal payment | $ 250 | ||
Senior Loans | Raymond James Senior Term Loan | SOFR | |||
Secured Borrowings | |||
Base rate | 2.75% |
Pension and Supplemental Exec_3
Pension and Supplemental Executive Retirement Plans - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 USD ($) installment | Dec. 31, 2022 USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to re-measure pension obligation | 4.50% | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to re-measure pension obligation | 4% | ||
Employment period | 3 years | ||
Benefit obligation | $ 1,800 | ||
Number of equal consecutive installments | installment | 180 | ||
Consecutive installments, amount | $ 10 | ||
Accrued liability | $ 1,300 | $ 1,300 |
Pension and Supplemental Exec_4
Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Components of net periodic pension cost | ||||
Interest cost | $ 113 | $ 85 | $ 226 | $ 170 |
Expected return on plan assets | (164) | (167) | (328) | (334) |
Amortization of net actuarial loss | 29 | 107 | 58 | 214 |
Net periodic benefit (income) cost | (22) | 25 | (44) | 50 |
Contributions paid | 0 | 0 | 0 | 0 |
Service cost | 0 | 0 | 0 | 0 |
Amortization of prior service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Cash and cash equivalents | $ 455,835 | $ 40,280 |
Investment securities available-for-sale | 329,137 | 379,814 |
Equity securities | 41,082 | 38,744 |
Bank-owned life insurance | 43,746 | 43,239 |
Financial Liabilities: | ||
FHLB and other borrowings | 0 | 102,333 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 455,835 | 40,280 |
Investment securities available-for-sale | 329,137 | 379,814 |
Equity securities | 41,082 | 38,744 |
Loans held-for-sale | 7,009 | 23,126 |
Loans receivable, net | 2,282,093 | 2,348,808 |
Servicing rights | 1,911 | 1,616 |
Accrued interest receivable | 16,102 | 12,617 |
FHLB Stock | 2,168 | 9,966 |
Bank-owned life insurance | 43,746 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,958,939 | 2,570,482 |
Repurchase agreements | 4,798 | 10,037 |
Accrued interest payable | 1,809 | 2,558 |
FHLB and other borrowings | 102,333 | |
Senior term loan | 8,835 | 9,765 |
Subordinated debt | 73,414 | 73,286 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 455,835 | 40,280 |
Investment securities available-for-sale | 329,137 | 379,814 |
Equity securities | 41,082 | 38,744 |
Loans held-for-sale | 7,009 | 24,898 |
Loans receivable, net | 2,158,860 | 2,285,427 |
Servicing rights | 1,972 | 1,634 |
Accrued interest receivable | 16,102 | 12,617 |
FHLB Stock | 2,168 | 9,966 |
Bank-owned life insurance | 43,746 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,623,395 | 2,226,037 |
Repurchase agreements | 4,798 | 10,037 |
Accrued interest payable | 1,809 | 2,558 |
FHLB and other borrowings | 102,006 | |
Senior term loan | 8,667 | 9,765 |
Subordinated debt | 63,539 | 64,330 |
Interest rate swap | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 9,372 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 8,429 | 8,427 |
Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 9,372 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 8,429 | 8,427 |
Fair value hedge | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 219 | |
Financial Liabilities: | ||
Derivative liability | 572 | |
Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 219 | |
Financial Liabilities: | ||
Derivative liability | 572 | |
Embedded derivative | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 648 | 787 |
Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 648 | 787 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 455,835 | 40,280 |
Investment securities available-for-sale | 0 | 0 |
Equity securities | 4,837 | 5,382 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FHLB Stock | 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 | 0 |
Subordinated debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level I) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Significant Other Observable Inputs (Level II) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 294,719 | 344,471 |
Equity securities | 0 | 0 |
Loans held-for-sale | 7,009 | 24,898 |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 2,391 | 2,778 |
FHLB Stock | 2,168 | 9,966 |
Bank-owned life insurance | 43,746 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,623,395 | 2,226,037 |
Repurchase agreements | 4,798 | 10,037 |
Accrued interest payable | 1,809 | 2,558 |
FHLB and other borrowings | 102,006 | |
Senior term loan | 8,667 | 9,765 |
Subordinated debt | 63,539 | 64,330 |
Significant Other Observable Inputs (Level II) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 9,372 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 8,429 | 8,427 |
Significant Other Observable Inputs (Level II) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 219 | |
Financial Liabilities: | ||
Derivative liability | 572 | |
Significant Other Observable Inputs (Level II) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Significant Unobservable Inputs (Level III) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 34,418 | 35,343 |
Equity securities | 36,245 | 33,362 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net | 2,158,860 | 2,285,427 |
Servicing rights | 1,972 | 1,634 |
Accrued interest receivable | 13,711 | 9,839 |
FHLB Stock | 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 | 0 |
Subordinated debt | 0 | 0 |
Significant Unobservable Inputs (Level III) | Interest rate swap | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Unobservable Inputs (Level III) | Fair value hedge | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Significant Unobservable Inputs (Level III) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | $ 648 | $ 787 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 329,137 | $ 379,814 |
Equity securities | 41,082 | 38,744 |
Bank-owned life insurance | 43,746 | 43,239 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 4,837 | 5,382 |
Bank-owned life insurance | 43,746 | 43,239 |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 4,837 | 5,382 |
Bank-owned life insurance | 0 | 0 |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Bank-owned life insurance | 43,746 | 43,239 |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 38,474 | 44,814 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 38,474 | 44,814 |
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 | 38,474 | 44,814 |
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 | 54,366 | 56,571 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 54,366 | 56,571 |
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 | 54,366 | 56,571 |
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 | 98,029 | 120,909 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 98,029 | 120,909 |
United States treasury securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 98,029 | 0 |
United States treasury securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 120,909 |
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 | 121,066 | 138,636 |
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 | 86,648 | 103,293 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 34,418 | 35,343 |
Corporate debt securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,901 | 10,560 |
Corporate debt securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,901 | 10,560 |
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 | 8,901 | 10,560 |
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 | 801 | 824 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 801 | 824 |
Other securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Other securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 801 | 824 |
Other securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Interest rate swap | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 9,372 | 8,427 |
Derivative liability | 8,429 | 8,427 |
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 | 9,372 | 8,427 |
Derivative liability | 8,429 | 8,427 |
Interest rate swap | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 219 | |
Derivative liability | 572 | |
Fair value hedge | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Derivative liability | 0 | |
Fair value hedge | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 219 | |
Derivative liability | 572 | |
Fair value hedge | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | |
Derivative liability | 0 | |
Embedded derivative | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 648 | 787 |
Embedded derivative | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Embedded derivative | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Embedded derivative | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | $ 648 | $ 787 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Level III Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
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 income (loss) | |||
Level III | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 36,458 | $ 39,668 | $ 35,343 | $ 41,763 |
Realized and unrealized gain (loss) included in earnings | 1 | 1 | 1 | 8 |
Purchase of securities | 186 | 1,048 | ||
Maturities/calls | (700) | (785) | (767) | (3,075) |
Unrealized loss included in other comprehensive income (loss) | (1,341) | (2,035) | (159) | (2,709) |
Ending balance | 34,418 | 37,035 | 34,418 | 37,035 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 648 | 0 | 787 | 0 |
Realized and unrealized gain (loss) included in earnings | 0 | 0 | (139) | 0 |
Purchase of securities | 0 | 0 | ||
Maturities/calls | 0 | 0 | 0 | 0 |
Unrealized loss included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending balance | 648 | 0 | 648 | 0 |
Fair Value, Assets Including Derivatives Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 37,106 | 39,668 | 36,130 | 41,763 |
Realized and unrealized gain included in earnings | 1 | 1 | (138) | 8 |
Purchase of securities | 186 | 1,048 | ||
Maturities/calls | (700) | (785) | (767) | (3,075) |
Unrealized loss included in other comprehensive income (loss) | (1,341) | (2,035) | (159) | (2,709) |
Ending balance | $ 35,066 | $ 37,035 | $ 35,066 | $ 37,035 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Collateral-dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 6,146 | |
Collateral-dependent loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Collateral-dependent loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Collateral-dependent loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 6,146 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 14,117 | |
Impaired loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Impaired loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Impaired loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 14,117 | |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 947 | 1,194 |
Other real estate owned | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 947 | 1,194 |
Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 7,500 | 7,500 |
Other debt securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other debt securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other debt securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 7,500 | 7,500 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 36,245 | 33,362 |
Equity securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Equity securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Equity securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 36,245 | $ 33,362 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Jun. 30, 2023 USD ($) yr | Dec. 31, 2022 USD ($) yr |
Non-recurring | Other debt securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 7,500 | $ 7,500 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 36,245 | 33,362 |
Non-recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 648 | 787 |
Non-recurring | Collateral-dependent loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 6,146 | |
Non-recurring | Collateral-dependent loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 6,146 | |
Non-recurring | Impaired loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 14,117 | |
Non-recurring | Impaired loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 14,117 | |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 947 | 1,194 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 947 | 1,194 |
Recurring | Municipal Securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 34,418 | $ 35,343 |
Appraisal adjustments | Non-recurring | Collateral-dependent loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Collateral-dependent loans | 0 | |
Appraisal adjustments | Non-recurring | Collateral-dependent loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Collateral-dependent loans | 0.20 | |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0 | |
Appraisal adjustments | Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.20 | |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0 | 0 |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.20 | 0.20 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities | 0.05 | 0.05 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities | 0.15 | 0.15 |
Liquidation expense | Non-recurring | Collateral-dependent loans | Appraisal of collateral | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Collateral-dependent loans | 0.06 | |
Liquidation expense | Non-recurring | Impaired loans | Appraisal of collateral | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Impaired loans | 0.06 | |
Liquidation expense | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.06 | 0.06 |
Cost, less impairment | Non-recurring | Other debt securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities | 0 | 0 |
Cost, less impairment | Non-recurring | Equity securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 49,100 | 51,900 |
Volatility | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 0.59 | 58 |
Term | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | yr | 4.75 | 5 |
Risk free rate | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 3.59 | 3.95 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hedges of Interest Rate Risk (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) Derivative | Dec. 31, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | ||
Number of fixed portfolio layer method fair value swaps | Derivative | 3 | |
Notional amount of swaps | $ 148,547 | $ 0 |
Amortization adjustment | (1,500) | |
Financial Asset, Closed Portfolio and Beneficial Interest, Portfolio Layer Method, Amortized Cost [Abstract] | ||
Amortized Cost Basis | 508,971 | 0 |
Hedged Asset | 148,547 | 0 |
Basis Adjustment | $ (870) | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator for earnings per share: | ||||
Net income (loss) from continuing operations | $ 7,998 | $ 2,273 | $ 10,436 | $ 4,183 |
Net loss attributable to noncontrolling interest | 114 | 165 | 236 | 358 |
Net income available to common shareholders | 8,112 | 2,438 | 10,672 | 4,541 |
Net income from discontinued operations available to common shareholders - basic and diluted | 0 | 518 | 8,782 | 1,279 |
Net income attributable to parent | $ 8,112 | $ 2,956 | $ 19,454 | $ 5,820 |
Denominator: | ||||
Total weighted-average shares outstanding (in shares) | 12,689,669 | 12,176,805 | 12,656,698 | 12,135,223 |
Effect of dilutive securities (in shares) | 225,625 | 718,776 | 303,027 | 735,669 |
Total diluted weighted-average shares outstanding (in shares) | 12,915,294 | 12,895,581 | 12,959,725 | 12,870,892 |
Earnings per share from continuing operations - basic (in dollars per share) | $ 0.64 | $ 0.20 | $ 0.84 | $ 0.37 |
Earnings per share from discontinued operations - basic (in dollars per share) | 0 | 0.04 | 0.69 | 0.11 |
Earnings per common shareholder - basic (in dollars per share) | 0.64 | 0.24 | 1.54 | 0.48 |
Earnings per share from continuing operations - diluted (in dollars per share) | 0.63 | 0.19 | 0.82 | 0.35 |
Earnings per share from discontinued operations - diluted (in dollars per share) | 0 | 0.04 | 0.68 | 0.10 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.63 | $ 0.23 | $ 1.50 | $ 0.45 |
Stock option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded form computation of earnings per share (in shares) | 641,534 | 499,887 | 274,409 | 496,625 |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Comprehensive Income | ||||
Gain (loss) on sale of available-for-sale securities | $ 0 | $ 0 | $ (1,536) | $ 650 |
Income taxes | (1,956) | (699) | (2,421) | (1,379) |
Salaries and employee benefits | (15,746) | (16,585) | (32,492) | (32,312) |
Interest on investment securities | 1,229 | 838 | 3,077 | 1,486 |
Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Realized gain (loss) recognized in income, net of tax | (279) | 60 | (1,214) | 484 |
Available-for-sale securities | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Gain (loss) on sale of available-for-sale securities | (294) | 0 | (1,830) | 650 |
Income taxes | 71 | 0 | 440 | (152) |
Realized gain (loss) recognized in income, net of tax | (223) | 0 | (1,390) | 498 |
Defined benefit pension plan items | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Income taxes | 7 | 27 | 14 | 52 |
Realized gain (loss) recognized in income, net of tax | (22) | (80) | (44) | (162) |
Salaries and employee benefits | (29) | (107) | (58) | (214) |
Investment hedge | Amount reclassified from AOCI | ||||
Comprehensive Income | ||||
Income taxes | 11 | (47) | (69) | (49) |
Realized gain (loss) recognized in income, net of tax | (34) | 140 | 220 | 148 |
Interest on investment securities | $ (45) | $ 187 | $ 289 | $ 197 |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | $ 261,084 | |||
Other comprehensive income (loss) before reclassification | $ (3,805) | $ (12,198) | 2,026 | $ (25,330) |
Amounts reclassified from accumulated other comprehensive income (loss) | 279 | (60) | 1,214 | (484) |
Net current period other comprehensive income (loss) | (3,526) | (12,258) | 3,240 | (25,814) |
Ending balance | 274,349 | 274,349 | ||
Unrealized gains (losses) on available for-sale securities | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | (27,810) | (13,766) | (34,829) | 147 |
Other comprehensive income (loss) before reclassification | (4,087) | (12,437) | 1,765 | (25,852) |
Amounts reclassified from accumulated other comprehensive income (loss) | 223 | 0 | 1,390 | (498) |
Net current period other comprehensive income (loss) | (3,864) | (12,437) | 3,155 | (26,350) |
Ending balance | (31,674) | (26,203) | (31,674) | (26,203) |
Defined benefit pension plan items | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | (3,128) | (3,704) | (3,129) | (4,069) |
Other comprehensive income (loss) before reclassification | 282 | 239 | 261 | 522 |
Amounts reclassified from accumulated other comprehensive income (loss) | 22 | 80 | 44 | 162 |
Net current period other comprehensive income (loss) | 304 | 319 | 305 | 684 |
Ending balance | (2,824) | (3,385) | (2,824) | (3,385) |
Investment hedge | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | 0 | 308 | 254 | 316 |
Other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 34 | (140) | (220) | (148) |
Net current period other comprehensive income (loss) | 34 | (140) | (220) | (148) |
Ending balance | 34 | 168 | 34 | 168 |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (AOCI) | ||||
Beginning balance | (30,938) | (17,162) | (37,704) | (3,606) |
Ending balance | $ (34,464) | $ (29,420) | $ (34,464) | $ (29,420) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 3 | ||||||
Interest income | $ 47,031 | $ 28,090 | $ 91,794 | $ 51,352 | |||
Interest expense | 17,449 | 1,430 | 29,483 | 2,844 | |||
NET INTEREST INCOME | 29,582 | 26,660 | 62,311 | 48,508 | |||
Provision (release of allowance) for credit losses | (4,235) | 5,100 | 341 | 6,380 | |||
Net interest income after provision (release of allowance) for credit losses | 33,817 | 21,560 | 61,970 | 42,128 | |||
Noninterest income | 6,419 | 9,384 | 9,486 | 18,663 | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 15,746 | 16,585 | 32,492 | 32,312 | |||
Other expenses | 14,536 | 11,387 | 26,107 | 22,917 | |||
Total noninterest expense | 30,282 | 27,972 | 58,599 | 55,229 | |||
Income before income taxes | 9,954 | 2,972 | 12,857 | 5,562 | |||
Income taxes | 1,956 | 699 | 2,421 | 1,379 | |||
Net income (loss) from continuing operations | 7,998 | 2,273 | 10,436 | 4,183 | |||
Income from discontinued operations before income taxes | 0 | 678 | 11,831 | 1,664 | |||
Income taxes | 0 | 160 | 3,049 | 385 | |||
Net income from discontinued operations | 0 | 518 | 8,782 | 1,279 | |||
Net income | 7,998 | $ 11,220 | 2,791 | $ 2,671 | 19,218 | 5,462 | |
Net loss attributable to noncontrolling interest | 114 | 165 | 236 | 358 | |||
Net income attributable to parent | 8,112 | 2,956 | 19,454 | 5,820 | |||
Capital expenditures | 1,716 | 2,647 | |||||
Capital expenditures | 881 | 1,213 | 2,109 | ||||
Assets | 3,351,847 | 3,351,847 | $ 3,068,850 | ||||
Goodwill | 2,838 | 2,838 | 2,838 | ||||
Operating Segments | CoRe Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 46,929 | 27,910 | 91,591 | 51,081 | |||
Interest expense | 16,439 | 672 | 27,480 | 1,331 | |||
NET INTEREST INCOME | 30,490 | 27,238 | 64,111 | 49,750 | |||
Provision (release of allowance) for credit losses | (4,235) | 5,100 | 341 | 6,380 | |||
Net interest income after provision (release of allowance) for credit losses | 34,725 | 22,138 | 63,770 | 43,370 | |||
Noninterest income | 4,113 | 7,093 | 7,131 | 13,991 | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 9,053 | 9,948 | 18,104 | 19,456 | |||
Other expenses | 14,148 | 10,913 | 25,202 | 21,961 | |||
Total noninterest expense | 23,201 | 20,861 | 43,306 | 41,417 | |||
Income before income taxes | 15,637 | 8,370 | 27,595 | 15,944 | |||
Income taxes | 3,237 | 1,771 | 5,752 | 3,402 | |||
Net income (loss) from continuing operations | 6,599 | 21,843 | 12,542 | ||||
Income from discontinued operations before income taxes | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | ||||
Net income from discontinued operations | 0 | 0 | 0 | ||||
Net income | 12,400 | 6,599 | 21,843 | 12,542 | |||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |||
Net income attributable to parent | 12,400 | 6,599 | 21,843 | 12,542 | |||
Capital expenditures | 155 | 492 | |||||
Capital expenditures | 0 | 250 | |||||
Assets | 3,295,564 | 3,295,564 | 3,014,475 | ||||
Goodwill | 0 | 0 | 0 | ||||
Operating Segments | Mortgage Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 105 | 103 | 210 | 206 | |||
Interest expense | 0 | 0 | 0 | 0 | |||
NET INTEREST INCOME | 105 | 103 | 210 | 206 | |||
Provision (release of allowance) for credit losses | 0 | 0 | 0 | 0 | |||
Net interest income after provision (release of allowance) for credit losses | 105 | 103 | 210 | 206 | |||
Noninterest income | 1,872 | 787 | 686 | 2,010 | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 7 | 0 | 7 | 0 | |||
Other expenses | 18 | 94 | 52 | 94 | |||
Total noninterest expense | 25 | 94 | 59 | 94 | |||
Income before income taxes | 1,952 | 796 | 837 | 2,122 | |||
Income taxes | 643 | 207 | 139 | 548 | |||
Net income (loss) from continuing operations | 589 | 698 | 1,574 | ||||
Income from discontinued operations before income taxes | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | ||||
Net income from discontinued operations | 0 | 0 | 0 | ||||
Net income | 1,309 | 589 | 698 | 1,574 | |||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |||
Net income attributable to parent | 1,309 | 589 | 698 | 1,574 | |||
Capital expenditures | 0 | 0 | |||||
Capital expenditures | 0 | 0 | |||||
Assets | 85,563 | 85,563 | 34,248 | ||||
Goodwill | 0 | 0 | 0 | ||||
Operating Segments | Financial Holding Company | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 3 | 87 | 36 | 80 | |||
Interest expense | 999 | 760 | 1,992 | 1,513 | |||
NET INTEREST INCOME | (996) | (673) | (1,956) | (1,433) | |||
Provision (release of allowance) for credit losses | 0 | 0 | 0 | 0 | |||
Net interest income after provision (release of allowance) for credit losses | (996) | (673) | (1,956) | (1,433) | |||
Noninterest income | 3,116 | 3,228 | 5,526 | 5,899 | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 4,623 | 4,439 | 9,573 | 8,495 | |||
Other expenses | 2,163 | 2,247 | 4,080 | 4,452 | |||
Total noninterest expense | 6,786 | 6,686 | 13,653 | 12,947 | |||
Income before income taxes | (4,666) | (4,131) | (10,083) | (8,481) | |||
Income taxes | (1,207) | (815) | (2,149) | (1,684) | |||
Net income (loss) from continuing operations | (3,316) | (7,934) | (6,797) | ||||
Income from discontinued operations before income taxes | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | ||||
Net income from discontinued operations | 0 | 0 | 0 | ||||
Net income | (3,459) | (3,316) | (7,934) | (6,797) | |||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |||
Net income attributable to parent | (3,459) | (3,316) | (7,934) | (6,797) | |||
Capital expenditures | 0 | 0 | |||||
Capital expenditures | 47 | 385 | |||||
Assets | 335,193 | 335,193 | 375,171 | ||||
Goodwill | 0 | 0 | 0 | ||||
Operating Segments | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 6 | 0 | 0 | 0 | |||
Interest expense | 23 | 8 | 54 | 15 | |||
NET INTEREST INCOME | (17) | (8) | (54) | (15) | |||
Provision (release of allowance) for credit losses | 0 | 0 | 0 | ||||
Net interest income after provision (release of allowance) for credit losses | (17) | (8) | (54) | (15) | |||
Noninterest income | 1,051 | 1,584 | 2,835 | 3,120 | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 2,063 | 2,198 | 4,808 | 4,361 | |||
Other expenses | 1,940 | 1,441 | 3,465 | 2,767 | |||
Total noninterest expense | 4,003 | 3,639 | 8,273 | 7,128 | |||
Income before income taxes | (2,969) | (2,063) | (5,492) | (4,023) | |||
Income taxes | (717) | (464) | (1,321) | (887) | |||
Net income (loss) from continuing operations | (1,599) | (4,171) | (3,136) | ||||
Income from discontinued operations before income taxes | 678 | 11,831 | 1,664 | ||||
Income taxes | 160 | 3,049 | 385 | ||||
Net income from discontinued operations | 518 | 8,782 | 1,279 | ||||
Net income | (2,252) | (1,081) | 4,611 | (1,857) | |||
Net loss attributable to noncontrolling interest | 114 | 165 | 236 | 358 | |||
Net income attributable to parent | (2,138) | (916) | 4,847 | (1,499) | |||
Capital expenditures | 1,561 | 2,155 | |||||
Capital expenditures | 834 | 1,474 | |||||
Assets | 20,871 | 20,871 | 27,075 | ||||
Goodwill | 2,838 | 2,838 | 2,838 | ||||
Intercompany Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | (12) | (10) | (43) | (15) | |||
Interest expense | (12) | (10) | (43) | (15) | |||
NET INTEREST INCOME | 0 | 0 | 0 | 0 | |||
Provision (release of allowance) for credit losses | 0 | 0 | 0 | 0 | |||
Net interest income after provision (release of allowance) for credit losses | 0 | 0 | 0 | 0 | |||
Noninterest income | (3,733) | (3,308) | (6,692) | (6,357) | |||
Noninterest Expenses: | |||||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||
Other expenses | (3,733) | (3,308) | (6,692) | (6,357) | |||
Total noninterest expense | (3,733) | (3,308) | (6,692) | (6,357) | |||
Income before income taxes | 0 | 0 | 0 | 0 | |||
Income taxes | 0 | 0 | 0 | 0 | |||
Net income (loss) from continuing operations | 0 | 0 | 0 | ||||
Income from discontinued operations before income taxes | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | ||||
Net income from discontinued operations | 0 | 0 | 0 | ||||
Net income | 0 | 0 | 0 | 0 | |||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |||
Net income attributable to parent | 0 | 0 | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||||
Capital expenditures | $ 0 | $ 0 | |||||
Assets | (385,344) | (385,344) | (382,119) | ||||
Goodwill | $ 0 | $ 0 | $ 0 |
Acquisition & Divestiture Act_3
Acquisition & Divestiture Activity - Narrative (Details) | 1 Months Ended | 6 Months Ended | |||
May 31, 2023 USD ($) shares | Feb. 28, 2023 USD ($) payment | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Loss on divestiture activity | $ 1,100,000 | $ 986,000 | $ 0 | ||
Assets from discontinued operations | 0 | $ 4,315,000 | |||
Liabilities from discontinued operations | 0 | 5,444,000 | |||
Common Class A | Flexia | |||||
Business Acquisition [Line Items] | |||||
Shares transferred for cancellation | shares | 800 | ||||
Preferred Units | Flexia | |||||
Business Acquisition [Line Items] | |||||
Shares transferred for cancellation | shares | 1,500 | ||||
Chartwell | Discontinued operations disposed of by sale | |||||
Business Acquisition [Line Items] | |||||
Net cash transferred for sale of discontinued operations | $ 14,400,000 | ||||
Gain on sale of subsidiary | $ 11,800,000 | ||||
Interest rate on note | 7% | ||||
Annual installments on note | payment | 4 | ||||
Term of transition agreement | 60 days | ||||
Assets from discontinued operations | 0 | 4,315,000 | |||
Liabilities from discontinued operations | $ 0 | $ 5,444,000 |
Acquisition & Divestiture Act_4
Acquisition & Divestiture Activity - Assets and Liabilities, Discontinued Operations (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets from discontinued operations | $ 0 | $ 4,315,000 |
Deposits of branches held-for-sale | 0 | 5,444,000 |
Discontinued operations disposed of by sale | Chartwell | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Premises and equipment | 23,000 | |
Accrued interest receivable and other assets | 3,142,000 | |
Goodwill | 1,150,000 | |
Total assets from discontinued operations | 0 | 4,315,000 |
Accrued interest payable and other liabilities | 5,444,000 | |
Deposits of branches held-for-sale | $ 0 | $ 5,444,000 |
Acquisition & Divestiture Act_5
Acquisition & Divestiture Activity - Net Income, Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Compliance and consulting income | $ 996 | $ 1,180 | $ 2,012 | $ 2,414 |
Salaries and employee benefits | 15,746 | 16,585 | 32,492 | 32,312 |
Other expenses | 3,661 | 1,788 | 6,058 | 3,897 |
Total noninterest expense | 30,282 | 27,972 | 58,599 | 55,229 |
Income before income taxes | 0 | 678 | 11,831 | 1,664 |
Income taxes | 0 | 160 | 3,049 | 385 |
Net income from discontinued operations | 0 | 518 | 8,782 | 1,279 |
Discontinued operations disposed of by sale | Chartwell | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Compliance and consulting income | 0 | 4,213 | 2,369 | 8,308 |
Gain on sale of discontinued operations | 0 | 0 | 11,800 | 0 |
Total income | 0 | 4,213 | 14,169 | 8,308 |
Salaries and employee benefits | 0 | 2,398 | 2,082 | 4,632 |
Other expenses | 0 | 1,137 | 256 | 2,012 |
Total noninterest expense | 0 | 3,535 | 2,338 | 6,644 |
Income before income taxes | 0 | 678 | 11,831 | 1,664 |
Income taxes | 0 | 160 | 3,049 | 385 |
Net income from discontinued operations | $ 0 | $ 518 | $ 8,782 | $ 1,279 |