Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38314 | ||
Entity Registrant Name | MVB Financial Corp. | ||
Entity Incorporation, State or Country Code | WV | ||
Entity Tax Identification Number | 20-0034461 | ||
Entity Address, Address Line One | 301 Virginia Avenue | ||
Entity Address, City or Town | Fairmont | ||
Entity Address, State or Province | WV | ||
Entity Address, Postal Zip Code | 26554 | ||
City Area Code | 304 | ||
Local Phone Number | 363-4800 | ||
Title of 12(b) Security | Common Stock, $1.00 Par Value Per Share | ||
Trading Symbol | MVBF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 247.1 | ||
Entity Common Stock, Shares Outstanding | 12,837,383 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement relating to the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001277902 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | FORVIS, LLP |
Auditor Firm ID | 686 |
Auditor Location | Tampa, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 6,564 | $ 5,290 |
Interest-bearing balances with banks | 391,665 | 34,990 |
Total cash and cash equivalents | 398,229 | 40,280 |
Investment securities available-for-sale | 345,275 | 379,814 |
Equity securities | 41,086 | 38,744 |
Loans held-for-sale | 629 | 23,126 |
Loans receivable | 2,317,594 | 2,372,645 |
Allowance for credit losses | (22,124) | (23,837) |
Loans receivable, net | 2,295,470 | 2,348,808 |
Premises and equipment, net | 20,928 | 23,630 |
Bank-owned life insurance | 44,287 | 43,239 |
Equity method investments | 75,754 | 76,223 |
Accrued interest receivable and other assets | 89,386 | 87,833 |
Assets from discontinued operations | 0 | 4,315 |
Goodwill | 2,838 | 2,838 |
TOTAL ASSETS | 3,313,882 | 3,068,850 |
Deposits: | ||
Noninterest-bearing | 1,197,272 | 1,231,544 |
Interest-bearing | 1,704,204 | 1,338,938 |
Total deposits | 2,901,476 | 2,570,482 |
Accrued interest payable and other liabilities | 37,917 | 36,112 |
Repurchase agreements | 4,821 | 10,037 |
FHLB and other borrowings | 0 | 102,333 |
Subordinated debt | 73,540 | 73,286 |
Senior term loan | 6,786 | 9,765 |
Liabilities from discontinued operations | 0 | 5,444 |
Total liabilities | 3,024,540 | 2,807,459 |
STOCKHOLDERS’ EQUITY | ||
Common stock - par value $1; 40,000,000 shares authorized; 13,606,399 and 12,758,383 shares issued and outstanding, respectively, as of December 31, 2023 and 13,466,281 and 12,618,265 shares issued and outstanding, respectively, as of December 31, 2022 | 13,606 | 13,466 |
Additional paid-in capital | 160,488 | 157,152 |
Retained earnings | 160,862 | 144,911 |
Accumulated other comprehensive loss | (28,831) | (37,704) |
Treasury stock - 848,016 shares as of December 31, 2023 and December 31, 2022, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 289,384 | 261,084 |
Noncontrolling interest | (42) | 307 |
Total stockholders' equity | 289,342 | 261,391 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,313,882 | $ 3,068,850 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 40,000,000 |
Common stock, shares issued (in shares) | 13,606,399 | 13,466,281 |
Common stock, shares outstanding (in shares) | 12,758,383 | 12,618,265 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 159,635 | $ 116,583 | $ 75,282 |
Interest on deposits with banks | 21,043 | 1,637 | 506 |
Interest on investment securities | 5,576 | 3,496 | 2,405 |
Interest on tax-exempt loans and securities | 3,564 | 4,241 | 5,236 |
Total interest income | 189,818 | 125,957 | 83,429 |
INTEREST EXPENSE | |||
Interest on deposits | 61,660 | 10,476 | 3,977 |
Interest on short-term borrowings | 890 | 443 | 105 |
Interest on subordinated debt | 3,219 | 3,072 | 2,188 |
Interest on senior term loan | 766 | 163 | 0 |
Total interest expense | 66,535 | 14,154 | 6,270 |
NET INTEREST INCOME | 123,283 | 111,803 | 77,159 |
Provision (release of allowance) for credit losses | (1,921) | 14,194 | (6,275) |
Net interest income after provision (release of allowance) for credit losses | 125,204 | 97,609 | 83,434 |
NONINTEREST INCOME | |||
Payment card and service charge income | 13,776 | 11,648 | 7,524 |
Insurance and investment services income | 335 | 849 | 1,003 |
Gain (loss) on sale of available-for-sale securities, net | (1,536) | 650 | 3,875 |
Gain (loss) on sale of equity securities, net | (269) | (56) | 5 |
Loss on derivatives, net | (659) | 0 | 0 |
Gain (loss) on sale of loans, net | (744) | 1,655 | 4,178 |
Holding gain (loss) on equity securities | 146 | (1,543) | 3,776 |
Compliance and consulting income | 4,312 | 4,598 | 2,557 |
Equity method investments income (loss) | (2,499) | (713) | 17,428 |
Equity method investment gain | 0 | 1,874 | 0 |
Gain (loss) on acquisition and divestiture activity | (986) | 0 | 10,783 |
Gain on sale of assets | 0 | 4,978 | 0 |
Other operating income | 7,839 | 3,625 | 4,724 |
Total noninterest income | 19,715 | 27,565 | 55,853 |
NONINTEREST EXPENSES | |||
Salaries and employee benefits | 63,371 | 62,534 | 52,965 |
Occupancy expense | 3,701 | 4,051 | 4,347 |
Equipment depreciation and maintenance | 5,558 | 5,496 | 4,598 |
Data processing and communications | 4,878 | 4,198 | 4,431 |
Professional fees | 18,344 | 15,661 | 13,726 |
Insurance, tax and assessment expense | 4,436 | 2,605 | 2,032 |
Travel, entertainment, dues and subscriptions | 6,825 | 6,836 | 4,617 |
Other operating expenses | 10,512 | 8,765 | 5,092 |
Total noninterest expense | 117,625 | 110,146 | 91,808 |
Income from continuing operations, before income taxes | 27,294 | 15,028 | 47,479 |
Income taxes | 5,070 | 3,294 | 9,641 |
Net income from continuing operations | 22,224 | 11,734 | 37,838 |
Income from discontinued operations, before income taxes | 11,831 | 3,487 | 1,099 |
Income taxes | 3,049 | 834 | 241 |
Net income from discontinued operations | 8,782 | 2,653 | 858 |
Net income | 31,006 | 14,387 | 38,696 |
Net loss attributable to noncontrolling interest | 226 | 660 | 425 |
Net income attributable to parent | 31,232 | 15,047 | 39,121 |
Preferred dividends | 0 | 0 | 35 |
Net income available to common shareholders | $ 31,232 | $ 15,047 | $ 39,086 |
Earnings per share from continuing operations - basic (in dollars per share) | $ 1.77 | $ 1.01 | $ 3.25 |
Earnings per share from discontinued operations - basic (in dollars per share) | 0.69 | 0.22 | 0.07 |
Earnings per common share - basic (in dollars per share) | 2.46 | 1.23 | 3.32 |
Earnings per share from continuing operations - diluted (in dollars per share) | 1.72 | 0.96 | 3.03 |
Earnings per share from discontinued operations - diluted (in dollars per share) | 0.68 | 0.21 | 0.07 |
Earnings per common share - diluted (in dollars per share) | $ 2.40 | $ 1.17 | $ 3.10 |
Weighted average shares outstanding - basic (in shares) | 12,694,206 | 12,279,462 | 11,778,557 |
Weighted average shares outstanding - diluted (in shares) | 12,997,332 | 12,870,734 | 12,613,620 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income before noncontrolling interest | $ 31,006 | $ 14,387 | $ 38,696 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on securities available-for-sale | 10,257 | (45,730) | (5,839) |
Reclassification adjustment for (gain) loss recognized in income | 1,536 | (650) | (3,875) |
Change in defined benefit pension plan | 61 | 815 | 770 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 117 | 429 | 507 |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | (289) | (83) | 862 |
Other comprehensive income (loss), before tax | 11,682 | (45,219) | (7,575) |
Income taxes related to items of other comprehensive income (loss): | |||
Unrealized holding gains (losses) on securities available-for-sale | (2,466) | 11,252 | 1,367 |
Reclassification adjustment for (gain) loss recognized in income | (369) | 152 | 908 |
Change in defined benefit pension plan | (15) | (201) | (180) |
Reclassification adjustment for amortization of net actuarial loss recognized in income | (28) | (103) | (119) |
Reclassification adjustment for carrying value adjustment - investment hedge recognized in income | 69 | 21 | (233) |
Income taxes related to items of other comprehensive income (loss): | (2,809) | 11,121 | 1,743 |
Total other comprehensive income (loss), net of tax | 8,873 | (34,098) | (5,832) |
Comprehensive loss attributable to noncontrolling interest | 226 | 660 | 425 |
Comprehensive income (loss) | $ 40,105 | $ (19,051) | $ 33,289 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total stockholders' equity attributable to parent | Total stockholders' equity attributable to parent Cumulative Effect, Period of Adoption, Adjustment | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2020 | 733 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 12,374,322 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 848,016 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 239,483 | $ 239,483 | $ 7,334 | $ 12,374 | $ 129,119 | $ 105,171 | $ 2,226 | $ (16,741) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 38,696 | 39,121 | 39,121 | (425) | ||||||||
Other comprehensive (loss) income | (5,832) | (5,832) | (5,832) | |||||||||
Cash dividends paid | (6,038) | (6,038) | (6,038) | |||||||||
Dividends on preferred stock | (35) | (35) | (35) | |||||||||
Stock-based compensation | 2,634 | 2,634 | 2,634 | |||||||||
Stock-based compensation related to equity method investment | 574 | 574 | 574 | |||||||||
Common stock options exercised (in shares) | 316,682 | |||||||||||
Common stock options exercised | 4,930 | 4,930 | $ 317 | 4,613 | ||||||||
Restricted stock units issued (in shares) | 77,050 | |||||||||||
Restricted stock units issued | 0 | 0 | $ 77 | (77) | ||||||||
Minimum tax withholding on restricted stock units issued and stock options (in shares) | (6,579) | |||||||||||
Minimum tax withholding on restricted stock units issued and stock options | (249) | (249) | $ (7) | (242) | ||||||||
Noncontrolling interests due to acquisition | 900 | 900 | ||||||||||
Common stock issued related to contingent consideration (in shares) | 47,966 | |||||||||||
Common stock issued related to contingent consideration | 2,000 | 2,000 | $ 48 | 1,952 | ||||||||
Common stock issued related to acquisitions (in shares) | 17,597 | |||||||||||
Common stock issued related to acquisitions | 600 | 600 | $ 18 | 582 | ||||||||
Common stock issued related to investment (in shares) | 107,928 | |||||||||||
Common stock issued related to investment | 4,474 | 4,474 | $ 108 | 4,366 | ||||||||
MVB Technology membership units issued | 500 | 500 | ||||||||||
Redemption of preferred stock (in shares) | (733) | |||||||||||
Redemption of preferred stock | (7,334) | (7,334) | $ (7,334) | |||||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 12,934,966 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 848,016 | |||||||||||
Ending balance at Dec. 31, 2021 | 275,303 | 274,328 | $ 0 | $ 12,935 | 143,521 | 138,219 | (3,606) | $ (16,741) | 975 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 14,387 | 15,047 | 15,047 | (660) | ||||||||
Other comprehensive (loss) income | (34,098) | (34,098) | (34,098) | |||||||||
Cash dividends paid | (8,355) | (8,355) | (8,355) | |||||||||
Stock-based compensation | 2,800 | 2,800 | 2,800 | |||||||||
Stock-based compensation related to equity method investment | 417 | 417 | 417 | |||||||||
Common stock options exercised (in shares) | 160,527 | |||||||||||
Common stock options exercised | 2,069 | 2,069 | $ 161 | 1,908 | ||||||||
Restricted stock units issued (in shares) | 75,354 | |||||||||||
Restricted stock units issued | 0 | 0 | $ 75 | (75) | ||||||||
Minimum tax withholding on restricted stock units issued and stock options (in shares) | (17,596) | |||||||||||
Minimum tax withholding on restricted stock units issued and stock options | (670) | (670) | $ (18) | (652) | ||||||||
Common stock issued related to acquisitions (in shares) | 313,030 | |||||||||||
Common stock issued related to acquisitions | 9,579 | 9,579 | $ 313 | 9,266 | ||||||||
Redemption of noncontrolling interest | $ (41) | (33) | (33) | (8) | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 12,618,265 | 13,466,281 | ||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 848,016 | 848,016 | ||||||||||
Ending balance at Dec. 31, 2022 | $ 261,391 | $ (6,642) | 261,084 | $ (6,642) | $ 0 | $ 13,466 | 157,152 | 144,911 | $ (6,642) | (37,704) | $ (16,741) | 307 |
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | |||||||||||
Net income | $ 31,006 | 31,232 | 31,232 | (226) | ||||||||
Other comprehensive (loss) income | 8,873 | 8,873 | 8,873 | |||||||||
Cash dividends paid | (8,639) | (8,639) | (8,639) | |||||||||
Stock-based compensation | 2,658 | 2,658 | 2,658 | |||||||||
Stock-based compensation related to equity method investment | $ 734 | 734 | 734 | |||||||||
Common stock options exercised (in shares) | 107,500 | 107,500 | ||||||||||
Common stock options exercised | $ 637 | 637 | $ 108 | 529 | ||||||||
Restricted stock units issued (in shares) | 130,402 | |||||||||||
Restricted stock units issued | 0 | 0 | $ 130 | (130) | ||||||||
Minimum tax withholding on restricted stock units issued and stock options (in shares) | (97,784) | |||||||||||
Minimum tax withholding on restricted stock units issued and stock options | (847) | (847) | $ (98) | (749) | ||||||||
Redemption of noncontrolling interest | $ 171 | 294 | 294 | (123) | ||||||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 12,758,383 | 13,606,399 | ||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 848,016 | 848,016 | ||||||||||
Ending balance at Dec. 31, 2023 | $ 289,342 | $ 289,384 | $ 0 | $ 13,606 | $ 160,488 | $ 160,862 | $ (28,831) | $ (16,741) | $ (42) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid (in dollars per share) | $ 0.68 | $ 0.68 | $ 0.51 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net income before noncontrolling interest | $ 31,006 | $ 14,387 | $ 38,696 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Net amortization and accretion of investments | 2,072 | 2,596 | 4,054 |
Net amortization of deferred loan costs | 1,347 | 2,526 | 2,969 |
Provision (release of allowance) for credit losses | (1,921) | 14,194 | (6,275) |
Depreciation and amortization | 5,003 | 5,322 | 4,198 |
Stock-based compensation | 2,658 | 2,800 | 2,634 |
Stock-based compensation related to equity method investments | 734 | 417 | 574 |
Loans originated for sale | (1,804) | (101,382) | (30,033) |
Proceeds of loans held-for-sale sold | 30,725 | 79,602 | 22,024 |
Holding (gain) loss on equity securities | (146) | 1,543 | (3,776) |
(Gain) loss on sale of available-for-sale securities, net | 1,536 | (650) | (3,875) |
(Gain) loss on sale of equity securities, net | 269 | 56 | (5) |
Gain on sale of loans held-for-sale | (1,065) | (5,487) | (4,178) |
Loss on sale of loans held for investment | 1,809 | 3,832 | 0 |
Gain on sale of discontinued operations | (11,800) | 0 | 0 |
(Gain) loss on acquisition and divestiture activity | 986 | 0 | (10,783) |
Gain on sale of other real estate owned | (170) | (47) | (1,396) |
Income on bank-owned life insurance | (1,048) | (975) | (995) |
Deferred income taxes | 97 | (3,631) | 6,129 |
Equity method investments (income) loss | 2,499 | 713 | (17,428) |
Equity method investment gain | 0 | (1,874) | 0 |
Return on equity method investments | 714 | 8,275 | 31,032 |
Other assets | (6,925) | (2,438) | (1,440) |
Other liabilities | 1,657 | (12,426) | 2,689 |
Net cash from operating activities | 58,233 | 7,353 | 34,815 |
INVESTING ACTIVITIES | |||
Purchases of available-for-sale investment securities | (89,522) | (89,600) | (216,621) |
Maturities/paydowns of available-for-sale investment securities | 76,631 | 20,973 | 49,248 |
Sales of available-for-sale investment securities | 54,531 | 60,635 | 146,011 |
Purchases of premises and equipment | (1,915) | (3,041) | (4,865) |
Disposals of premises and equipment | 425 | 49 | 300 |
Net change in loans | 39,092 | (576,303) | (460,672) |
Proceeds of loans held for investment sold | 14,934 | 61,659 | 0 |
Purchases of restricted bank stock | 0 | (61,245) | (1,410) |
Redemptions of restricted bank stock | 0 | 53,048 | 2,364 |
Proceeds from maturities of certificates of deposit with banks | 0 | 2,719 | 9,084 |
Proceeds from sale of other real estate owned | 539 | 1,482 | 3,818 |
Purchase of bank-owned life insurance | 0 | (7) | 0 |
Purchase of equity method investments | (2,744) | (38,400) | (500) |
Purchase of equity securities | (345) | (4,452) | (2,982) |
Proceeds from sale of equity securities | 566 | 1,356 | 543 |
Net cash transferred for sale of discontinued operations | (3,935) | 0 | 0 |
Net cash transferred in divestiture activity | (8) | 0 | 0 |
Net cash transferred for banking center sale | 0 | 0 | (95,500) |
Cash paid for acquisitions, net of cash acquired | 0 | 0 | (772) |
Net cash from investing activities | 88,249 | (571,127) | (571,954) |
FINANCING ACTIVITIES | |||
Net increase in deposits | 330,994 | 192,877 | 558,342 |
Net change in repurchase agreements | (5,216) | (1,348) | 1,119 |
Net change in FHLB and other borrowings | (102,333) | 102,333 | 0 |
Issuance of subordinated debt | 0 | 0 | 30,000 |
Issuance of senior term loan | 0 | 10,000 | 0 |
Principal payments on senior term loan | (3,030) | (125) | 0 |
Preferred stock redemption | 0 | 0 | (7,334) |
Common stock options exercised | 637 | 2,069 | 4,930 |
Withholding cash issued in lieu of restricted stock | (846) | (670) | (249) |
Cash dividends paid on common stock | (8,639) | (8,355) | (6,038) |
Cash dividends paid on preferred stock | 0 | 0 | (35) |
Redemption of noncontrolling interest | (100) | 0 | 0 |
Issuance of subsidiary membership units | 0 | 0 | 500 |
Stock purchase from noncontrolling interest | 0 | (41) | 0 |
Net cash from financing activities | 211,467 | 296,617 | 580,683 |
Net change in cash and cash equivalents | 357,949 | (267,157) | 43,544 |
Cash and cash equivalents, beginning of period | 40,280 | 307,437 | 263,893 |
Cash and cash equivalents, end of period | 398,229 | 40,280 | 307,437 |
Cash payments for: | |||
Interest on deposits, repurchase agreements and borrowings | 66,708 | 12,285 | 6,152 |
Income taxes | 13,082 | 2,285 | 11,960 |
Business combination non-cash disclosures: | |||
Assets acquired in business combination, net of cash acquired | 0 | 0 | 739 |
Liabilities assumed in business combination | 0 | 0 | 605 |
Supplemental disclosure of cash flow information: | |||
Fair value of noncontrolling interests at acquisition date | 0 | 0 | 1,400 |
Loans transferred to other real estate owned | 0 | 299 | 357 |
Change in unrealized holding gains (losses) on securities available-for-sale | (11,828) | 47,508 | (9,595) |
Restricted stock units vested | 130 | 75 | 77 |
Tax withholding obligations on restricted stock units issued | 98 | 18 | 7 |
Creation of servicing assets from loan sales | 501 | 1,296 | 0 |
Loans transferred to loans held-for-sale | 6,621 | 914 | 0 |
Common stock issued related to acquisitions | 0 | 9,579 | 5,074 |
Impact of adopting ASC 326, net of tax | 6,642 | 0 | 0 |
Subordinated Debt | |||
FINANCING ACTIVITIES | |||
Payment of debt issuance costs | 0 | 0 | 552 |
Senior Loans | |||
FINANCING ACTIVITIES | |||
Payment of debt issuance costs | $ 0 | $ 123 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Business and Organization MVB Financial Corp. is a financial holding company organized 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”). MVB Financial's consolidated subsidiaries also includes SPE PR, LLC ("MVB-PR"). 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, we entered into an agreement with Flexia Payments, LLC ("Flexia," in which Edge Ventures owned a controlling interest), to facilitate the divestiture of our interests in the ongoing business of Flexia. Refer to Note 25 – Acquisitions and Divestitures . 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; l Non-deposit investment services offered through an association with a broker-dealer; and l Insurance and investment services. 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. Edge Ventures Edge Ventures, a wholly-owned subsidiary of the Bank, was created as a management company to provide oversight, alignment and structure for our Fintech companies and allocate resources to help incubate venture businesses and technologies acquired and developed by us. Victor Victor is a wholly-owned subsidiary of Edge Ventures. Victor was formed to develop technology to make it faster and easier to launch and scale a broad spectrum of Fintech solutions for the gaming, payments, banking-as-a-service and digital asset sectors. Within a matter of weeks, Fintech developers can build solutions to manage and move money with developer-friendly application programming interfaces. Banks can onboard and manage more programs with Victor’s tailored due diligence, risk assessment and oversight workflow tools. Recognizing the complexity of the Fintech ecosystem, Victor also supports seamless integration with a proven network of value-added technology and service providers. Professional Services Paladin Fraud Paladin Fraud is a wholly-owned subsidiary of the Bank. Paladin Fraud provides an extensive and customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies and other vendors to help clients and partners defend against threats. Trabian The Bank owns an 80.8% interest in Trabian. Trabian builds digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks and Fintech companies. Consistent with the Bank's mission to pursue technology to accelerate community finance, Trabian has created technology platforms that have been instrumental to the success of many of today’s leading Fintech companies. Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as presented through the Financial Accounting Statement Board's ("FASB") Accounting Standards Codification ("ASC") and with rules and interpretive guidance of the Security and Exchange Commission ("SEC"). All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. 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 December 31, 2023, we hold three equity method investments. See Note 5 – Equity Method Investments for further information. 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”). In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Cash and Cash Equivalents Cash equivalents include cash on hand, non-interest and interest-bearing deposits with banks. Interest-bearing deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported in the consolidated statement of cash flows for loans, deposits and short-term borrowing transactions. As of December 31, 2023 and December 31, 2022 there was no restricted cash. Investment Securities Investment securities at the time of purchase are classified as one of the following: Available-for-Sale Securities - Includes debt that will be held for indefinite periods of time. These securities may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and yield of alternative investments. Such securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated income tax effect. The income tax effect is released when the securities are sold. Equity Securities - Includes equity securities that are adjusted to fair value on a monthly basis, with the change in value recorded directly on the income statement. We have elected to measure the equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for underlying transactions for identical or similar investments of new issues. The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Our investment portfolio includes securities that are in an unrealized loss position as of December 31, 2023. 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 ACL 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. When debt securities are in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. Debt securities that do not meet the aforementioned criteria are evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that an ACL exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the allowance are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Securities are charged-off against the ACL or, in the absence of any ACL, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of December 31, 2023 and 2022, the Bank holds $2.1 million and $10.0 million of stock, respectively, which is included in accrued interest receivable and other assets. The stock is bought from and sold to the FHLB based upon its $100 per share par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated by management for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (i) a significant decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (iii) the impact of legislative and regulatory changes on the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB’s regulatory capital ratios have improved in the most recent quarters, no issues of liquidity are evident, new shares of FHLB stock continue to trade at the $100 per share par value and the FHLB has repurchased shares of excess capital stock from its members during 2023 and 2022. Loans and Allowance for Credit Losses Beginning January 2023, our methodology for determining the ACL is based on the requirements of ASC 326. Loans are stated at amortized cost basis reduced by an ACL. Loans are considered non-accrual when scheduled principal or interest payments are 90 days past due. Interest income on loans is recognized on an accrual basis. The ACL is maintained at a level deemed adequate to absorb forecasted losses over the remaining life of each loan within the portfolio. We consistently apply a quarterly loan review process to continually evaluate loans for changes in credit risk. This process serves as the primary means by which we evaluate the adequacy of the ACL, and is based upon periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually analyzed using either collateral based or cash flow based valuation methodology. The general component covers all loans that are not individually analyzed. These loans are measured on a collective basis and are pooled with other loans that share similar characteristics. Management has determined there to be several different portfolio segments sharing similar risk characteristics within the loan portfolio. Factors considered in this process include general loan terms, collateral and availability of historical data to support the analysis, with the initial segmentation based on Call Codes. The ACL is calculated for each segment using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type. The sub-prime automobile loan segment uses a remaining life methodology using straight-line amortization over the remaining life of the portfolio, due to unique characteristics of this pool. Through a loss driver analysis performed by a third-party vendor, a forecasting model that correlates specific economic factors with credit quality of each loan segment was developed. Peer bank data was identified and used in this process, as we did not have adequate quarterly loan data to analyze over the look-back period to 2007. After the third-party analyzed both historical peer loan data and various economic factors over the same look-back period, two economic variables, national GDP and national unemployment rate, were identified as showing the most correlation to the performance of the loans within each of the pooled segments. Within each loan segment forecast, these two economic variables are forecasted based on expected trends over a 12-month period, before reverting to the long-term average quarterly rate of each variable over the next 12-month period, then maintains this quarterly average for the life of the loan segment. The third-party vendor uses these variables to produce an estimated probability of default for each quarter period and, through a proprietary model, also calculates a loss given default factor to estimate overall losses. The vendor also prepares benchmark studies for prepayment and curtailment rate estimates for each loan segment, as well as recovery lag estimates. With all these factors combined, a forecasted allocation rate is produced for each loan segment. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the loss forecasting models. These factors are then added to the forecasted allocation percentages to get the adjusted factor to be applied to the pooled loans on a weighted basis. The following qualitative factors are analyzed: l Lending policies and procedures l Nature and volume of the portfolio l Experience and ability of lending management and staff l Volume and severity of problem credits l Conclusions of loan reviews, audits and exams l Value of the underlying collateral l Concentrations of credit and changes in the levels of such concentrations l Economic and business conditions & consumer sentiment l Other external factors We analyze our loan portfolio each quarter to determine the appropriateness of our ACL. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Special Assets Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is reversed against interest income when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or SARC. Loans are moved to individual analysis when, based on current information and events, the loan no longer exhibits similar risk characteristics as its pool, and we analyze the loan individually on a collateral or cash flow basis. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. We also separately evaluate consumer loans for individual analysis. Loans are identified individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow evaluation of the significance of the payment delays and the circumstances surrounding the loan and the borrower. 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. To estimate the liability for off-balance sheet credit exposures, management analyzes the portfolios of unfunded commitments based on the same segmentation used for the ACL 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 ACL 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. Once the determination has been made that a loan is to be individually analyzed, the amount of potential credit loss is measured using one of two valuation methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; or (ii) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from individual analysis status is made on a quarterly basis. We defer loan origination and commitment fees and direct loan origination costs and the net amount is amortized as an adjustment of the related loan’s yield. Loans Held-for-Sale Loans originated or purchased with the intent to sell are designated as held-for-sale. Loans held-for-sale are carried at fair value, which is determined using quoted secondary market prices or investor commitments when possible. 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. Loans are occasionally transferred between the held-for-sale and held-for-investment classifications based on management’s intent and ability to hold or sell loan, which may be impacted by secondary market conditions, loan credit quality or other factors. Premises and Equipment Premises and equipment are carried at cost, less accumulated depreciation, while land is carried at cost. Depreciation expense is computed by the straight-line-method based on the estimated useful lives of assets, which range from seven three Software Development Software that we develop for internal use may be capitalized when costs are incurred after the preliminary project stage has ended and the application development stage begins. The application development stage includes designing, coding, installing and testing the software. Once the software has been implemented, costs for training and maintenance are expensed as incurred. Capitalized internal use software development costs are included in premises and equipment in the accompanying consolidated balance sheets. Bank-Owned Life Insurance Bank-owned life insurance represents life insurance on the lives of certain of our employees who have provided positive consent allowing us to be the beneficiary of such policies. These policies are recorded at their cash surrender value or the amount that can be realized upon surrender of the policy. Income from these policies is not subject to income taxes and is recorded as noninterest income. Equity Method Investments Investments in companies in which we have significant influence over the operating and financing decisions are accounted for using the equity method of accounting. Determining if we have significant influence requires judgement based on the facts and circumstances of each investment including level of ownership, legal structure and other qualitative factors which impact our ability to influence the investee's operations, and we review the facts and circumstances each reporting period to determine if we still have significant influence. Equity method investments are recorded initially at cost including costs to acquire the investment. These investments are included in the equity method investments line item on the consolidated balance sheets. We recognize our proportionate share of the investee's profits and losses in the equity method investments income line item. At the time of investment, we may make a one-time election to record our proportionate share of earnings of the investee on a lag of no more than three months. This election may be made on an investment by investment basis. We review equity method investments for impairment if there are events or changes in circumstances which indicate the carrying amount of the investment might not be recoverable. Intangible Assets and Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the related reporting unit level. The goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired; however, if the carrying value of the reporting unit exceeds its fair value, an impairment charge must be recorded. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit. An impairment loss establishes a new basis in the goodwill and subsequent reversals of goodwill impairment losses are not permitted under applicable accounting guidance. For intangible assets subject to amortization, the recoverability test is performed when a triggering event occurs and an impairment loss is recognized if the carrying value of the intangible asset exceeds fair value and is not recoverable. The carrying value of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets deemed to have indefinite useful lives are not subject to amortization. An impairment loss is recognized if the carrying value of the intangible asset with an indefinite life exceeds its fair value. Derivative Instruments Interest Rate Swaps We entered into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking clients. We mitigate this risk by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value on our consolidated balance sheet. Fair value changes are recorded in noninterest income in our consolidated net income statement. Fair Value Hedges We entered into portfolio layer method fair value swaps, designated as hedging instruments, to mitigate the effect of changing interest rates on the fair values of certain designated fixed-rate loans and available-for-sale securities. This involves the receipt of variable amounts from a counterparty in exchange for us making fixed payments over the life of the agreements without the exchange of the underlying notional amount. Under the portfolio layer method, the hedged items are designated as a hedged layer of closed portfolios of financial loans and municipal bonds that are anticipated to remain outstanding for the designated hedged periods. Adjustments are made to record the swaps 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 are also adjusted through interest income and other comprehensive income, based on changes in fair value attributable to changes in the hedged risk. Embedded Derivatives We enter into various contracts through the normal course of business and occasionally a contract may include terms and conditions that create an embedded derivative. An embedded derivative may occur even though the purpose of the contract is not intended to be a derivative contract. Components of a contract should be assessed to determine if they meet the definition of a derivative. If it does, we must then assess whether the embedded derivative is clearly and closely related to its host instrument. If the derivative is not clearly and closely related to the host contract, the embedded derivative must be separated from the host instrument and accounted for as a separate derivative. Servicing Assets Servicing assets are recorded when the Bank sells loans and retains the servicing on those loans. On a monthly basis, we track the amount of loans that are sold with servicing retained. We determine the servicing rights value, which is then recorded as an asset and amortized over the period of estimated net servicing revenues. The servicing assets are evaluated for impairment quarterly. Servicing loans for others generally consists of collecting payments from borrowers, maintaining escrow accounts, remitting payments to third party investors and, when necessary, foreclosure processing. Serviced loans are not included in the consolidated balance sheets. At December 31, 2023 and 2022, the value of servicing assets was $1.8 million and $1.6 million, respectively, and is included in accrued interest receivable and other assets in the consolidated balance sheets. We have the ability to sell the guaranteed portion of loans originated through the SBA's 7(a) program. All SBA loan sales are executed on a servicing retained basis. We are required to retain a minimum of 10% of the principal balance in accordance with SBA regulations. Any gain on sale recognized as income is the sum of the premium on the guaranteed portion of the loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan that is retained. The remaining unguaranteed portion of the loan is presented net of the discount, which is recognized as interest income over the underlying loan's remaining term, using the effective interest method. Foreclosed Assets Held for Resale Foreclosed assets held for resale acquired in satisfaction of mortgage obligations and in foreclosure proceedings are recorded at fair value less estimated selling costs at the time of foreclosure, establishing a new cost basis, with any valuation adjustments charged to the ACL. In subsequent periods, foreclosed assets are recorded at the lower of cost or fair value less any costs to sell. Costs relating to improvement of the property are capitalized, while holding costs of the property are charged to other loan origination and maintenance expense in the period in |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2 – Investment Securities Amortized cost and fair values of investment securities available-for-sale at December 31, 2023 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 44,003 $ 8 $ (5,603) $ 38,408 United States sponsored mortgage-backed securities 91,939 992 (10,549) 82,382 United States treasury securities 106,401 — (6,045) 100,356 Municipal securities 118,065 — (11,158) 106,907 Corporate debt securities 9,076 — (134) 8,942 Other debt securities 7,500 — — 7,500 Total debt securities 376,984 1,000 (33,489) 344,495 Other securities 780 — — 780 Total investment securities available-for-sale $ 377,764 $ 1,000 $ (33,489) $ 345,275 Amortized cost and fair values of investment securities available-for-sale at December 31, 2022 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 51,436 $ 15 $ (6,637) $ 44,814 United States sponsored mortgage-backed securities 68,267 — (11,696) 56,571 United States treasury securities 130,689 48 (9,828) 120,909 Municipal securities 157,842 2,412 (21,618) 138,636 Corporate debt securities 10,570 10 (20) 10,560 Other debt securities 7,500 — — 7,500 Total debt securities 426,304 2,485 (49,799) 378,990 Other securities 824 — — 824 Total investment securities available-for-sale $ 427,128 $ 2,485 $ (49,799) $ 379,814 The following table summarizes amortized cost and fair values of debt securities by maturity: December 31, 2023 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 4,785 $ 4,783 After one year, but within five years 112,009 105,897 After five years, but within ten years 41,860 37,866 After ten years 218,330 195,949 Total $ 376,984 $ 344,495 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may repay sooner than scheduled. Investment securities with a carrying value of $223.4 million and $91.3 million at December 31, 2023 and 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 December 31, 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 ACL 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, 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, if sold at December 31, 2023 would result in a pretax loss of $33.5 million, we have no intent to sell the applicable securities at such fair values, and maintain that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole, rather than credit-related conditions. Therefore, we have no ACL as of December 31, 2023. The following tables show available-for-sale debt securities in an unrealized loss position for which an ACL has not been recorded as of December 31, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: (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) $ 316 $ — $ 34,619 $ (5,603) United States sponsored mortgage-backed securities (47) — — 50,345 (10,549) United States treasury securities (23) — — 100,354 (6,045) Municipal securities (216) 847 (10) 106,060 (11,148) Corporate debt securities (7) 2,009 (67) 1,933 (67) $ 3,172 $ (77) $ 293,311 $ (33,412) (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 securities (3) 2,380 (20) — — $ 108,486 $ (10,446) $ 212,317 $ (39,353) The following table summarizes the investment sales and related gains and losses in 2023, 2022 and 2021: (Dollars in thousands) 2023 2022 2021 Proceeds from sales of available-for-sale securities $ 54,531 $ 60,635 $ 146,011 Gains, gross — 717 3,944 Losses, gross (1,536) (67) (69) Proceeds from sales of equity securities $ 566 $ 1,356 $ 543 Gains, gross 25 158 5 Losses, gross (294) (214) — Unrealized holding gains (losses) on equity securities $ 146 $ (1,543) $ 3,776 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 3 – Loans and Allowance for Credit Losses The components of loans in the Consolidated Balance Sheet at December 31, were as follows: (Dollars in thousands) 2023 2022 Commercial: Business $ 797,100 $ 851,072 Real estate 670,584 632,839 Acquisition, development and construction 134,004 126,999 Total commercial $ 1,601,688 $ 1,610,910 Residential real estate 672,547 606,970 Home equity lines of credit 14,531 18,734 Consumer 27,408 131,566 Total loans, excluding PCI 2,316,174 2,368,180 Purchased credit impaired loans: Residential real estate — 2,482 Total purchased credit impaired loans $ — $ 2,482 Total loans 2,316,174 2,370,662 Deferred loan origination costs, net of fees 1,420 1,983 Loans receivable $ 2,317,594 $ 2,372,645 Loans serviced for others are not included in the accompanying consolidated balance sheet. The amortized cost basis of loans serviced for others requiring recognition of a servicing asset were $184.3 million and $164.1 million at December 31, 2023 and 2022, respectively. 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 ASC 326 in January 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 ACL 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 subsegments 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 January 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 $ 8,486 $ 11,922 $ 16,795 Real estate 1,240 222 546 1,786 1,891 Acquisition, development and construction — — — — 1,415 Total commercial 4,676 1,475 9,032 13,708 20,101 Residential — — 3,098 3,098 3,166 Home equity lines of credit — — 90 90 94 Consumer 1,347 268 4 1,351 1,351 Total impaired loans $ 6,023 $ 1,743 $ 12,224 $ 18,247 $ 24,712 The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended: December 31, 2022 December 31, 2021 (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 $ 12,781 $ 8 $ 6 $ 7,701 $ — $ — Real estate 1,479 57 59 2,051 60 43 Acquisition, development and construction 273 — — 344 — — Total commercial 14,533 65 65 10,096 60 43 Residential 6,952 15 15 5,992 15 14 Home equity lines of credit 149 — — 81 — — Consumer 915 — — 41 — — Total $ 22,549 $ 80 $ 80 $ 16,210 $ 75 $ 57 As of December 31, 2023, the Bank’s other real estate owned balance totaled $0.8 million, all of which was related to two unrelated commercial loans from our acquisition of The First State Bank (“First State”) in 2020. As of December 31, 2023, there were no residential mortgages in the process of foreclosure. As of December 31, 2022, there are ten loans collateralized by residential real estate property in the process of foreclosure. The total recorded investment in these loans was $2.1 million as of December 31, 2022. These loans are included in the table above and have no specific allowance allocated to them. As of December 31, 2022, the Bank's other real estate owned balance totaled $1.2 million. The Bank held five foreclosed residential real estate properties, representing $0.2 million, or 16.7%, of the total balance of other real estate owned. The Bank held three commercial real estate properties representing $1.0 million or 83.3% of the total of other real estate owned. 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. 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 with the intent of reviewing 40% to 45% of the Bank's commercial outstanding loan balances on an annual basis. The Bank's credit department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. 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 December 31, 2023 Commercial business: Risk rating: Pass $ 176,309 $ 251,265 $ 92,307 $ 64,964 $ 50,765 $ 90,355 $ 20,315 $ — $ 746,280 Special Mention 990 32,342 72 830 339 3,767 — — 38,340 Substandard 368 988 521 — 4,640 1,436 — — 7,953 Doubtful — 2,022 839 264 — 1,402 — — 4,527 Total commercial business loans $ 177,667 $ 286,617 $ 93,739 $ 66,058 $ 55,744 $ 96,960 $ 20,315 $ — $ 797,100 Gross charge-offs $ — $ 228 $ 1,250 $ 141 $ — $ 2,953 $ — $ — $ 4,572 Commercial real estate: Risk rating: Pass $ 80,553 $ 149,189 $ 205,651 $ 11,952 $ 26,438 $ 101,322 $ 51,239 $ — $ 626,344 Special Mention — — 7,961 — 6,079 11,201 — — 25,241 Substandard — — — — — 18,999 — — 18,999 Doubtful — — — — — — — — — Total commercial real estate loans $ 80,553 $ 149,189 $ 213,612 $ 11,952 $ 32,517 $ 131,522 $ 51,239 $ — $ 670,584 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 6,546 $ 54,170 $ 29,535 $ 22,041 $ — $ 1,483 $ 4,823 $ — $ 118,598 Special Mention — — 14,652 — — — — — 14,652 Substandard — — — — — 754 — — 754 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 6,546 $ 54,170 $ 44,187 $ 22,041 $ — $ 2,237 $ 4,823 $ — $ 134,004 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 December 31, 2023 Residential Real Estate: Risk rating: Pass $ 33,867 $ 413,466 $ 96,413 $ 38,169 $ 7,306 $ 21,313 $ 50,815 $ — $ 661,349 Special Mention — — — 4,224 414 708 — — 5,346 Substandard — 988 3,764 82 146 777 — — 5,757 Doubtful — — — — — 95 — — 95 Total residential real estate loans $ 33,867 $ 414,454 $ 100,177 $ 42,475 $ 7,866 $ 22,893 $ 50,815 $ — $ 672,547 Gross charge-offs $ — $ — $ — $ — $ 19 $ 381 $ — $ — $ 400 Home equity lines of credit: Risk rating: Pass $ 638 $ 3,798 $ 1,779 $ 1,192 $ 501 $ 3,084 $ 3,154 $ — $ 14,146 Special Mention — 61 — 36 — 41 86 — 224 Substandard — 83 — 78 — — — — 161 Doubtful — — — — — — — — — Total home equity lines of credit loans $ 638 $ 3,942 $ 1,779 $ 1,306 $ 501 $ 3,125 $ 3,240 $ — $ 14,531 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ 2,275 $ 18,926 $ 5,753 $ 9 $ 28 $ 53 $ 20 $ — $ 27,064 Special Mention — — — — — — — — — Substandard 20 266 58 — — — — — 344 Doubtful — — — — — — — — — Total consumer loans $ 2,295 $ 19,192 $ 5,811 $ 9 $ 28 $ 53 $ 20 $ — $ 27,408 Gross charge-offs $ 1,144 $ 10,608 $ 1,753 $ — $ — $ 2 $ — $ — $ 13,507 Total: Risk rating: Pass $ 300,188 $ 890,814 $ 431,438 $ 138,327 $ 85,038 $ 217,610 $ 130,366 $ — $ 2,193,781 Special Mention 990 32,403 22,685 5,090 6,832 15,717 86 — 83,803 Substandard 388 2,325 4,343 160 4,786 21,966 — — 33,968 Doubtful — 2,022 839 264 — 1,497 — — 4,622 Total loans $ 301,566 $ 927,564 $ 459,305 $ 143,841 $ 96,656 $ 256,790 $ 130,452 $ — $ 2,316,174 Gross charge-offs $ 1,144 $ 10,836 $ 3,003 $ 141 $ 19 $ 3,336 $ — $ — $ 18,479 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 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. 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 December 31, 2023 Commercial: Business $ 788,430 $ 4,728 $ 448 $ 3,494 $ 8,670 $ 797,100 $ 6,926 $ — $ 1,825 $ — Real estate 670,170 — 414 — 414 670,584 — — — — Acquisition, development and construction 134,004 — — — — 134,004 754 — 754 — Total commercial 1,592,604 4,728 862 3,494 9,084 1,601,688 7,680 — 2,579 — Residential 670,539 1,671 337 — 2,008 672,547 82 — — — Home equity lines of credit 14,522 9 — — 9 14,531 161 — — — Consumer 24,494 1,792 778 344 2,914 27,408 344 — — — Total loans $ 2,302,159 $ 8,200 $ 1,977 $ 3,838 $ 14,015 $ 2,316,174 $ 8,267 $ — $ 2,579 $ — 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 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. At December 31, 2023 and 2022, individually analyzed loans totaled $11.8 million and $18.2 million, respectively. A portion of the ACL of $1.9 million and $1.7 million was allocated to cover any loss in these loans at December 31, 2023 and 2022, respectively. 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 December 31, 2023 Commercial Business $ 424 $ 2,277 $ — $ 452 $ 1,037 $ 4,190 $ 1,583 Real estate — — — — — — — Acquisition, development and construction — — — — — — — Total commercial $ 424 $ 2,277 $ — $ 452 $ 1,037 $ 4,190 $ 1,583 Residential — — — — — — — Home equity lines of credit — — — — — — — Consumer — 344 — — — 344 60 Total $ 424 $ 2,621 $ — $ 452 $ 1,037 $ 4,534 $ 1,643 Collateral value $ 301 $ 2,040 $ — $ 906 $ 320 $ 3,567 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 December 31, 2023 and 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. 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 release of allowance related to unfunded commitments was $0.6 million for the year ended December 31, 2023 and immaterial for the years ended December 31, 2022 and 2021, respectively. The following table presents the balance and activity for the primary segments of the ACL as of the periods shown: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total 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 2,954 71 322 3,347 (541) (33) (4,091) (1,318) Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Charge-offs (4,572) — — (4,572) (400) — (13,507) (18,479) Recoveries 194 2 — 196 77 4 8,908 9,185 ACL balance at December 31, 2023 $ 7,931 $ 2,931 $ 1,674 $ 12,536 $ 6,412 $ 97 $ 3,079 $ 22,124 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL, prior to adoption of ASC 326, at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Provision (release of allowance) for credit losses 3,546 486 82 4,114 1,472 (4) 8,612 14,194 Charge-offs (2,858) — — (2,858) (84) — (12,241) (15,183) Recoveries 56 127 — 183 — 7 6,370 6,560 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 Individually evaluated for impairment $ 1,253 $ 222 $ — $ 1,475 $ — $ — $ 268 $ 1,743 Collectively evaluated for impairment $ 7,518 $ 5,482 $ 1,064 $ 14,064 $ 2,880 $ 131 $ 5,019 $ 22,094 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL, prior to adoption of ASC 326, at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Provision (release of allowance) for credit losses (3,113) (3,905) (1,779) (8,797) 35 (194) 2,681 (6,275) Charge-offs (1,284) (83) — (1,367) (5) — (247) (1,619) Recoveries 231 — — 231 — 24 61 316 ALL, prior to adoption of ASC 326, at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Individually evaluated for impairment $ 232 $ 243 $ — $ 475 $ — $ — $ — $ 475 Collectively evaluated for impairment $ 7,795 $ 4,848 $ 982 $ 13,625 $ 1,492 $ 128 $ 2,546 $ 17,791 The following table summarizes the primary segments of the loan portfolio as of the period shown: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total December 31, 2022 Individually evaluated for impairment $ 10,451 $ 1,365 $ — $ 11,816 $ 2,603 $ 90 $ 1,351 $ 15,860 Collectively evaluated for impairment 840,621 631,474 126,999 1,599,094 606,849 18,644 130,215 2,354,802 Total loans $ 851,072 $ 632,839 $ 126,999 $ 1,610,910 $ 609,452 $ 18,734 $ 131,566 $ 2,370,662 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. 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 the twelve months ended December 31, 2023: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable December 31, 2023 Commercial Business $ — $ 8,535 $ — $ — $ 8,535 1 % Real estate — 11,201 1,702 — 12,903 2 % Acquisition, development and construction — — 754 — 754 1 % Total commercial — 19,736 2,456 — 22,192 1 % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 19,736 $ 2,456 $ — $ 22,192 1 % The above table presents the amortized cost basis of loans at December 31, 2023 that were experiencing financial difficulty and modified during the twelve months ended December 31, 2023, by class and by type of modification. Also presented above is the percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable. 18 loans to 17 borrowers received payment delay modifications in the twelve months ended December 31, 2023, including one secured by commercial office real estate totaling $11.2 million, one commercial loan secured by accounts receivable totaling $0.2 million, and 16 commercial loans with government guarantees totaling $8.3 million. The Bank closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified as of the period shown: (Dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Past Due December 31, 2023 Commercial Business $ 1,702 $ 418 $ 3,370 $ 5,490 Real estate — — — — Acquisition, development and construction — — — — Total commercial 1,702 418 3,370 5,490 Residential — — — — Home equity lines of credit — — — — Consumer — — — — Total $ 1,702 $ 418 $ 3,370 $ 5,490 As of December 31, 2023, there are eight modified loans past due, with an amortized costs basis of $5.5 million. Of the eight modified loans past due, three are commercial notes to a single borrower totaling $1.7 million secured by equipment and five commercial notes with government guarantees totaling $3.8 million. All eight of these notes are considered non-accrual as of December 31, 2023. 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 December 31, 2023 Commercial Business $ — $ 2,634 $ — $ — $ 2,634 Real estate — — — — — Total commercial — 2,634 — — 2,634 Residential — — — — — Home equity lines of credit — — — — — Consumer — — — — — Total $ — $ 2,634 $ — $ — $ 2,634 As of December 31, 2023, there are two modified loans that has defaulted, with an amortized costs basis of $2.6 million. These loans are commercial notes with government guarantees and both are considered non-accrual as of December 31, 2023. Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. Troubled Debt Restructurings Results for reporting periods beginning January 2023 are presented under ASC 326, which eliminated the accounting guidance for TDRs, while prior period amounts continue to be reported in accordance with the TDR model. At December 31, 2022, the Bank had specific reserve allocations for TDRs of $0.4 million. Loans considered to be troubled debt restructured loans totaled $10.4 million as of December 31, 2022. Of the total, $4.7 million, represent accruing troubled debt restructured loans and represent 45% of total impaired loans. As of December 31, 2022, $5.7 million represents nine loans to seven borrowers that have defaulted under the restructured terms. The largest of these loans is a $1.9 million restructured commercial loan to a company previously dependent on the coal industry, which is now structured as an unsecured loan. Three of these loans to an unrelated borrower, totaling $3.1 million, are restructured equipment loans to a borrower in the coal industry, which was provided extended interest-only terms to allow time for the collateral equipment to be sold. There is a commercial loan totaling $0.5 million secured by government lease payments that previously defaulted and is now making restructured payments. The four remaining unrelated borrowers have a single loan each, totaling $0.2 million. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of December 31, 2022. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment at December 31,: (Dollars in thousands) 2023 2022 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 18,300 17,549 Software 7,140 6,019 Construction in progress 45 508 Leasehold improvements 2,836 2,836 45,179 43,770 Accumulated depreciation (24,251) (20,140) Premises and equipment, net $ 20,928 $ 23,630 Depreciation expense totaled $4.6 million, $4.4 million and $3.3 million for 2023, 2022 and 2021, respectively. We lease certain premises and equipment under operating and finance leases. At December 31, 2023, we had lease liabilities totaling $14.0 million and right-of-use assets totaling $12.9 million, substantially all of which was related to operating leases. At December 31, 2023, the weighted-average remaining lease term for operating leases was 10.5 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.1%. 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 accrued interest payable and other liabilities accrued interest receivable and other assets The following shows lease costs for the years ended: (Dollars in thousands) December 31, 2023 December 31, 2022 Amortization of right-of-use assets, finance leases $ 10 $ 57 Operating lease cost 1,795 1,781 Short-term lease cost 8 32 Variable lease cost 38 38 Total lease cost $ 1,851 $ 1,908 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2023. For operating leases with initial or remaining terms of one year or more as of December 31, 2023, the following table presents future minimum payments for the twelve month periods ended December 31: (Dollars in thousands) Operating Leases 2024 $ 1,793 2025 1,738 2026 1,611 2027 1,641 2028 1,629 2029 and thereafter 8,320 Total future minimum lease payments $ 16,732 Less: Amounts representing interest (2,698) Present value of net future minimum lease payments $ 14,034 There are no material future minimum payments on finance leases as of December 31, 2023. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 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 3-09 of Regulation S-X requires separate audited financial statements of an equity method investee in an annual report if either the income or investment test exceeds 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in an annual report if any of the equity method investees, individually or in the aggregate, result in any of the tests exceeding 10%. Under the income test, our proportionate share of the revenue from equity method investments in the aggregate exceeded the applicable threshold under Rule 4-08(g) of 10% for the year ended December 31, 2023, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. There were no equity method investments which met any of the applicable thresholds for reporting Rule 3-09 for reporting separate financial statements as of the year ended December 31, 2023. Our equity method investments are initially recorded at cost, including transaction costs to obtain the equity method investment, and are subsequently adjusted for changes due to our share of the entities' earnings. ICM The following table provides summarized income statement information for ICM for the years ended December 31, 2023 and 2022: December 31, (Dollars in thousands) 2023 2022 2021 Total revenues $ 39,283 $ 67,207 $ 153,549 Net income (loss) (9,418) 343 41,381 Gain on loans sold 22,782 44,921 150,896 Gain (loss) on loans held for sale 457 (2,834) (10,223) Volume of loans sold 1,353,410 2,325,709 5,326,757 Our ownership percentage of 40% of ICM allows us to have significant influence over the operations and decision making at ICM. Accordingly, the investment, which had a carrying value of $21.6 million at December 31, 2023 , is accounted for as an equity method investment. Our share of net loss and net income from our investment in ICM was $3.8 million and $16.4 million for the years ended December 31, 2023 and 2021, respectively. Our share of net income for the year ended December 31, 2022 was not material. As of December 31, 2023 and 2022, the locked mortgage pipeline was $439.0 million and $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) 2023 Total revenues $ 143,784 Net income 7,234 Gain on loans sold 37,218 Gain on loans held for sale 8,210 Volume of loans sold 1,370,313 In October 2022, we acquired a 37.5% interest in Warp Speed and accounted for our ownership as an equity method investment, initially recorded at cost including costs incurred to obtain the equity method investment. It was determined that o ur ownership percentage of Warp Speed provides that we have significant influence over its operations and decision making. Accordingly, the investment, which had a carrying value of $52.7 million at December 31, 2023, 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 for the year ended December 31, 2023 totaled $2.7 million. As of December 31, 2023, the mortgage pipeline was $267.8 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, which had a carrying value of $1.5 million at December 31, 2023, is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the twelve months ended December 31, 2023 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rule 10-01(b)(1) of Regulation S-X. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits Deposits at December 31, were as follows: (Dollars in thousands) 2023 2022 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,197,272 $ 1,231,544 NOW 538,444 720,062 Savings and money markets 571,299 284,459 Time deposits, including CDs and IRAs 594,461 334,417 Total deposits $ 2,901,476 $ 2,570,482 Time deposits that meet or exceed the FDIC insurance limit $ 3,150 $ 4,386 Maturities of time deposits at December 31, 2023 were as follows (dollars in thousands): 2024 $ 426,024 2025 72,690 2026 478 2027 17,226 2028 78,019 Thereafter 24 Total $ 594,461 As of December 31, 2023, overdrawn deposit accounts totaling $3.8 million |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the FHLB of Pittsburgh, Pennsylvania. As of December 31, 2023, the Bank's maximum borrowing capacity with the FHLB was $712.9 million and the remaining borrowing capacity was $699.8 million, with the difference being deposit letters of credit of $11.9 million and credit enhancement recourse obligations related to the master commitments through the FHLB's Mortgage Partnership Finance program of $1.2 million. Short-term borrowings As of December 31, 2023, the Bank had no short-term borrowings with the FHLB or Federal Reserve Bank and no Fed Funds purchased outstanding. As of December 31, 2022, the Bank had $102.3 million short-term borrowings with the FHLB and no borrowings with the Federal Reserve Bank or Fed Funds purchased outstanding. Information related to short-term borrowings is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ — $ 102,333 Average balance during the year 17,542 15,494 Maximum month-end balance — 102,333 Weighted-average rate during the year 5.07 % 2.82 % Weighted-average rate at December 31 — % 4.45 % Long-term borrowings As of December 31, 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. All of our repurchase agreements were overnight agreements at December 31, 2023 and December 31, 2022. These borrowings were collateralized with investment securities with a carrying value of $4.9 million and $10.4 million at December 31, 2023 and December 31, 2022, respectively, and were comprised of Mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. Information related to repurchase agreements is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 4,821 $ 10,037 Average balance during the year 5,662 10,987 Maximum month-end balance 10,041 12,680 Weighted-average rate during the year 0.02 % 0.05 % Weighted-average rate at December 31 0.01 % 0.06 % Subordinated Debt Information related to subordinated debt is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 73,540 $ 73,286 Average balance during the year 73,415 73,159 Maximum month-end balance 73,540 73,286 Weighted-average rate during the year 4.38 % 4.20 % Weighted-average rate at December 31 4.02 % 3.97 % In September 2021, we completed the private placement of $30 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR, plus 254 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In November 2020, we completed the private placement of $40 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is 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. We recognized interest expense on our subordinated debt of $3.2 million, $3.1 million and $2.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Senior term loan Information related to senior term loan is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 6,786 $ 9,765 Average balance during the year 9,007 2,328 Maximum month-end balance 9,768 9,886 Weighted-average rate during the year 8.50 % 7.00 % Rate at December 31 8.76 % 7.44 % In October 2022, we entered into a credit agreement with Raymond James Bank ("Raymond James"). Pursuant to the credit agreement, Raymond James has extended to us a senior term loan in the aggregate principal amount of up to $10 million. In connection with the closing of the Warp Speed transaction, we borrowed $10 million and paid Raymond James an upfront fee of 1% of the loan amount. The loan will bear interest per annum at a rate equal to 2.75%, plus term SOFR, which will reset monthly. Accrued interest is payable on the last business day of each month, beginning with October 31, 2022, with the then outstanding principal balance of the loan payable on the last business day of each quarter in the amount of $125,000 during the first year and $250,000 thereafter. The loan will mature in April 2025, unless accelerated earlier upon an event of default. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 8 – Commitments and Contingent Liabilities Commitments We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. Our exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount and type of collateral obtained, if deemed necessary by us upon extension of credit, varies and is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third-party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Our policy for obtaining collateral, and the nature of such collateral, is substantially the same as that involved in making commitments to extend credit. Specifically, the Bank has entered into agreements to extend credit or provide conditional payments pursuant to standby and commercial letters of credit. In addition, the Bank utilizes letters of credit issued by the FHLB to collateralize certain public funds deposits. 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 ACL 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 ACL 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 December 31, 2023 and December 31, 2022, the liability for unfunded commitments related to loans held for investment was $1.0 million and $0.5 million, respectively. Total contractual amounts of the commitments as of December 31, were as follows: (Dollars in thousands) 2023 2022 Available on lines of credit $ 363,452 $ 495,618 Stand-by letters of credit 36,826 17,153 Other loan commitments 16,788 14,901 $ 417,066 $ 527,672 Concentration of Credit Risk We grant a majority of our commercial, financial, agricultural, real estate and installment loans to customers throughout the North Central West Virginia and Northern Virginia markets. Collateral for loans is primarily residential and commercial real estate, personal property and business equipment. We evaluate the credit worthiness of each of our customers on a case-by-case basis and the amount of collateral we obtain is based upon management’s credit evaluation. Contingent Liabilities The Bank is involved in various legal actions arising in the ordinary course of business. In the opinion of management and counsel, the outcome of these matters will not have a significant adverse effect on the consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The provisions for income taxes for the years ended December 31, were as follows: (Dollars in thousands) 2023 2022 2021 Current: Federal $ 6,707 $ 6,607 $ 3,332 State 1,315 1,152 421 $ 8,022 $ 7,759 $ 3,753 Deferred: Federal $ 8 $ (3,056) $ 5,159 State 89 (575) 970 97 (3,631) 6,129 Income tax expense $ 8,119 $ 4,128 $ 9,882 Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31: 2023 2022 2021 (Dollars in thousands) Amount % Amount % Amount % Income tax at federal statutory rate $ 8,217 21.0 % $ 3,889 21.0 % $ 10,201 21.0 % Tax effect of: State income taxes, net of federal income taxes 1,109 2.8 % 456 2.5 % 1,099 2.2 % Tax exempt earnings (941) (2.4) % (1,596) (8.6) % (1,460) (3.0) % Other (266) (0.6) % 1,379 7.4 % 42 0.1 % $ 8,119 20.8 % $ 4,128 22.3 % $ 9,882 20.3 % Deferred income tax assets and liabilities were comprised of the following at December 31: (Dollars in thousands) 2023 2022 Gross deferred tax assets: Allowance for credit losses $ 5,589 $ 5,849 Minimum pension liability 955 991 Research and development 2,035 — Stock-based compensation 976 1,097 SERP 327 317 Unrealized loss on securities available-for-sale 7,892 11,024 Lease liabilities 3,402 3,611 Other 828 364 Total gross deferred tax assets 22,004 23,253 Gross deferred tax liabilities: Depreciation (1,197) (1,726) Pension (1,091) (1,062) Unrealized gain on securities available-for-sale — (80) Holding gain on equity securities (3,976) (3,969) Equity method investment (2,136) (2,220) Goodwill (107) (110) Right-of-use assets (3,163) (3,383) Other (597) (264) Total gross deferred tax liabilities (12,267) (12,814) Net deferred tax assets $ 9,737 $ 10,439 Net deferred income tax assets and net deferred income tax liabilities were included in other assets and other liabilities, respectively, based on the ending balance. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions We have granted loans to our officers and directors and to their immediate family members, as well as loans to related companies. These related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk of collectability. Set forth below is a summary of the related loan activity. (Dollars in thousands) Balance at Beginning of Year Borrowings, net of participations Executive Officer and Director Retirements Repayments Balance at End of Year December 31, 2023 $ 33,433 $ 866,011 $ — $ (877,072) $ 22,372 December 31, 2022 $ 27,606 $ 221,825 $ (998) $ (215,000) $ 33,433 We held related party deposits of $256.0 million and $112.5 million at December 31, 2023 and December 31, 2022, respectively. In January 2022, the MVB Bank Inc. Board of Directors approved a $35.0 million line of credit to BillGO, Inc. a related party of the Bank. As of December 31, 2023 the line of credit to BillGO, Inc. has been closed. Interest income on the line of credit totaled $0.3 million and $0.2 million for December 31, 2023 and December 31, 2022, respectively. Issuing sponsorship income generated during the year from contracts with BillGO, Inc. totaled $0.3 million for both December 31, 2023 and December 31, 2022. In October 2022, we acquired an interest in Warp Speed and account for our ownership as an equity method investment, initially recorded at cost including costs incurred to obtain the equity method investment. As part of the purchase, we are able to designate two out of seven directors to the board of directors of Warp Speed. We purchase loan participations from CalCon Mutual Mortgage LLC, a subsidiary of Warp Speed. As of December 31, 2023 and December 31, 2022, loans purchased from CalCon had an outstanding balance of $46.0 million and $39.1 million. Interest income recognized on these participations was $2.2 million and $0.9 million for the years ended December 31, 2023 and December 31, 2022. We account for our ownership interests in ICM as an equity method investment and purchase loan participations from ICM. As of December 31, 2023 and December 31, 2022, loans purchased from ICM had an outstanding balance of $564.8 million and $572.7 million . |
Pension Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension Plan | Note 11 – Pension Plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan. Benefits are based on years of service and the employee’s compensation. Accruals under the plan were frozen as of May 31, 2014. Freezing the plan resulted in a remeasurement of the pension obligations and plan assets as of the freeze date. The pension obligation was remeasured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.5%. In June 2017, we approved a Supplemental Executive Retirement Plan (the “SERP”), pursuant to which the Chief Executive Officer of Potomac Mortgage Group ("PMG") is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. As the executive completed three years of continuous employment with PMG prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive monthly installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.4 million and $1.3 million at December 31, 2023 and 2022, respectively. Service costs were not material for any periods covered by this report. In February 2024, the SERP was terminated. Within the agreement, there is a one year provision for payment delay, as such the $1.8 million obligation is scheduled to be paid in February 2025. Net periodic pension income was $0.1 million in 2023. Net periodic pension expense was $0.3 million and $0.3 million in 2022 and 2021 respectively. Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2023 and 2022 is as follows: (Dollars in thousands) 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 8,829 $ 12,230 Interest cost 450 341 Actuarial loss 97 160 Assumption changes 251 (3,584) Benefits paid (341) (318) Benefit obligation at end of year $ 9,286 $ 8,829 Change in plan assets: Fair value of plan assets at beginning of year $ 9,283 $ 11,591 Actual return gain (loss) on plan assets 1,064 (1,990) Benefits paid (341) (318) Fair value of plan assets at end of year $ 10,006 $ 9,283 Funded status $ 720 $ 454 Unrecognized net actuarial loss 3,943 4,120 Prepaid pension cost recognized $ 4,663 $ 4,574 Accumulated benefit obligation $ 9,286 $ 8,829 At December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine the benefit obligation are as follows: 2023 2022 2021 Discount rate 5.01 % 5.23 % 2.83 % Rate of compensation increase n/a n/a n/a The components of net periodic pension cost (income) are as follows: (Dollars in thousands) 2023 2022 2021 Interest cost $ 450 $ 341 $ 313 Expected return on plan assets (655) (669) (689) Amortization of net actuarial loss 117 429 507 Net periodic pension cost (income) $ (88) $ 101 $ 131 For the years December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine net periodic pension cost (income) are as follows: 2023 2022 2021 Discount rate 5.01 % 5.23 % 2.83 % Expected long-term rate of return on plan assets 5.75 % 6.00 % 6.75 % Rate of compensation increase n/a n/a n/a Our pension plan asset allocations at December 31, 2023 and 2022 are as follows: 2023 2022 Plan Assets Cash 5 % 7 % Fixed income 30 % 28 % Alternative investments 12 % 13 % Domestic equities 31 % 26 % Foreign equities 21 % 22 % Real estate investment trusts 1 % 4 % Total 100 % 100 % The following table sets forth by level within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements , the Pension Plan’s assets at fair value as of December 31, 2023: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 500 $ — $ — $ 500 Fixed income 3,002 — — 3,002 Alternative investments — — 1,201 1,201 Domestic equities 3,102 — — 3,102 Foreign equities 2,101 — — 2,101 Total $ 8,705 $ — $ 1,201 $ 9,906 Investments reported at net asset value 1 100 Total assets at fair value $ 10,006 1 Investments reported at net asset value include real estate investment trusts. The following table sets forth by level, within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2022: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 650 $ — $ — $ 650 Fixed income 2,599 — — 2,599 Alternative investments — — 1,207 1,207 Domestic equities 2,414 — — 2,414 Foreign equities 2,042 — — 2,042 Total $ 7,705 $ — $ 1,207 $ 8,912 Investments reported at net asset value 1 371 Total assets at fair value $ 9,283 1 Investments reported at net asset value include real estate investment trusts. Investment in government securities, short-term investments, domestic equities and foreign equities are valued at the closing price reported on the active market on which the individual securities are traded. Alternative investments are valued at quoted prices, which are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Real estate investment trusts are valued at the net asset value of the trust at the reporting date. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while this plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table includes our best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: (Dollars in thousands) Cash Flow Contributions for the period of January 1, 2024 through December 31, 2024 $ — Estimated future benefit payments reflecting expected future service 2024 $ 433 2025 $ 466 2026 $ 554 2027 $ 560 2028 $ 575 2029 through 2033 $ 2,884 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 12 – Goodwill and Other Intangible Assets The table below summarizes the changes in carrying amounts of goodwill and other intangibles, including core deposit intangibles, for the periods presented: Intangibles (Dollars in thousands) Goodwill Gross Accumulated Amortization Net Balance at January 1, 2023 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Reduction of goodwill and intangibles resulting from sale of Chartwell (1,150) (3,220) 2,133 (1,087) Amortization expense — — (192) (192) Balance at December 31, 2023 $ 2,838 $ 600 $ (248) $ 352 Balance at January 1, 2022 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Amortization expense — — (685) (685) Balance at December 31, 2022 1 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Balance at January 1, 2021 $ 2,350 $ 3,941 $ (1,541) $ 2,400 Goodwill and intangibles resulting from Trabian acquisition 1,638 600 — 600 Reduction of intangibles from sale of branches to Summit — (721) 721 — Amortization expense — — (684) (684) Balance at December 31, 2021 $ 3,988 $ 3,820 $ (1,504) $ 2,316 1 Includes $1.2 million of goodwill and $1.1 million of intangibles included under assets from discontinued operations on the balance sheet as of December 31, 2022. Goodwill represents the excess of the purchase price over the fair value of acquired net assets under the acquisition method of accounting. The intangibles resulting from the Trabian acquisition are related to their customer relationships and trade name. These items are amortized over four years and 10 years, respectively. The table below presents estimated amortization expense for our other intangible assets (dollars in thousands): 2024 $ 90 2025 53 2026 40 2027 40 2028 40 Thereafter 89 $ 352 Our assessment of qualitative factors determined that it is not more likely than not that the fair value of each reporting unit is less than its carrying amount and therefore, goodwill is not impaired as of December 31, 2023 and 2022. We have not identified any triggering events since the impairment evaluation that would indicate potential impairment. Intangibles, including core deposit intangibles are evaluated for impairment if events and circumstances indicate a potential for impairment. Such an evaluation of other intangible assets is based on undiscounted cash flow projections. No impairment charges were recorded for other intangible assets in any of the periods presented. |
Stock Offerings
Stock Offerings | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stock Offerings | Note 13 – Stock Offerings In April 2021, the Bank entered into a Stock Purchase Agreement with Trabian, a leading software development firm servicing financial institutions. Pursuant to the agreement, a portion of the Bank's purchase consideration for Trabian included 17,597 unregistered shares of our common stock. In August 2021, the Bank entered into a Stock Purchase Agreement with Interchecks, a leading payment disbursement platform. Pursuant to the agreement, a portion of the Bank's purchase consideration for Interchecks included 107,928 unregistered shares of our common stock. In September 2021, the Bank issued 24,408 shares of unregistered common stock valued at $40.97 per share, totaling $1.0 million, pursuant to the Stock Purchase Agreement dated September 13, 2019 between the Bank and Chartwell. In December 2021, the Bank issued 23,558 shares of unregistered common stock valued at $42.45 per share, totaling $1.0 million, pursuant to the Stock Purchase Agreement dated September 13, 2019 between the Bank and Chartwell. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 14 – Stock-Based Compensation The MVB Financial Corp. Incentive Stock Plan (the “Plan”) provides for the issuance of stock options, restricted stock awards and RSUs to selected employees and directors. On April 4, 2022, the Board of Directors adopted the MVB Financial Corp 2022 Incentive Plan (the “2022 Plan”), which was approved by the shareholders at the annual meeting dated, May 17, 2022. The 2022 Plan replaces the MVB Financial Corp. 2013 Stock Incentive Plan (the “2013 Plan”) and provides for 975,000 shares authorized for grant which includes the number of shares reserved for issuance under the 2013 Plan that remained available for grant thereunder as of the date of Board approval of the 2022 Plan. As of December 31, 2023, 637,526 shares remain available for issuance. Stock-Based Compensation Expense Stock-based compensation expense is recognized as salary and employee benefit cost based upon the fair value of the instruments on the date of the grant. The amount that we recognized in stock-based compensation expense related to the issuance of stock options and RSUs is presented in the following table: (Dollars in thousands) 2023 2022 2021 Stock Options $ 435 $ 501 $ 832 RSUs 2,223 2,299 1,802 Total stock-based compensation expense $ 2,658 $ 2,800 $ 2,634 Proceeds from stock options exercised were $0.6 million, $2.1 million and $4.9 million during 2023, 2022 and 2021, respectively. During 2023, 2022 and 2021, certain options were exercised in broker-assisted cashless transactions. Shares were forfeited related to exercise price and related tax obligations and we paid tax authorities amounts due resulting in a net cash outflow. Stock Options Under the provisions of the Plan, the option price per share shall not be less than the fair market value of the common stock on the grant date. Generally, options granted vest in three The following summarizes stock options as of and for the year ended December 31, 2023: 2023 Number of Shares Weighted-Average Exercise Price Outstanding at beginning of year 942,543 $ 16.53 Granted 73,532 20.94 Exercised 107,500 15.96 Forfeited 12,850 25.25 Expired 4,980 22.43 Outstanding at end of year 890,745 $ 16.80 Exercisable at end of year 757,219 $ 15.79 Weighted-average fair value of options granted during 2023 $ 7.17 Weighted-average fair value of options granted during 2022 $ 14.94 Weighted-average fair value of options granted during 2021 $ 10.61 The intrinsic value of options exercised during 2023, 2022 and 2021 was $0.6 million, $3.5 million and $8.0 million, respectively. The fair value for the options was estimated at the grant date using a Black-Scholes option-pricing model with the following inputs: 2023 2022 2021 Average risk-free interest rates 4.06 % 2.23 % 1.27 % Weighted-average life (years) 7 7 7 Expected volatility 42.4 % 41.2 % 41.2 % Expected dividend yield 3.07 % 1.58 % 1.08 % The following summarizes information related to the total outstanding and exercisable stock options at December 31, 2023: Options Outstanding Options Exercisable Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life 890,745 $16.80 $5.6 4.07 757,219 $15.79 $5.3 3.36 At December 31, 2023, total unrecognized pre-tax compensation expense related to unvested stock options outstanding was $0.8 million. This cost is expected to be recognized over a weighted-average period of 2.5 years. For the year ended December 31, 2023, the fair value of stock options vested was $0.5 million. Restricted Stock Units Under the provisions of the Plan, RSUs are similar to restricted stock awards, except the recipient does not receive the stock immediately, but instead receives the stock according to a vesting plan and distribution schedule, after achieving required performance milestones or upon remaining with us for a particular length of time. Each RSU that vests entitles the recipient to receive one share of our common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded RSUs until the recipient becomes the record holder of those shares. We granted 224,364 RSUs in 2023, 137,274 of which were time-based awards and 87,090 of which were performance-based awards. Time-based RSUs granted in 2023 generally vest in three equal installments over a three-year period, with the exception of time-based grants to members of the Board of Directors, which vest over a one-year period. Performance-based RSUs vest in one installment at the end of three years, based on set criteria. A summary of the activity for our RSUs for the period indicated is presented in the following table: 2023 Shares Weighted-Average Grant Date Fair Value Balance at beginning of year 247,557 $ 26.39 Granted 224,364 17.42 Vested (130,402) 20.28 Forfeited (57,864) 18.58 Balance at end of year 283,655 $ 23.44 Weighted-average fair value of RSUs granted during 2023 $ 17.42 Weighted-average fair value of RSUs granted during 2022 $ 38.04 Weighted-average fair value of RSUs granted during 2021 $ 40.95 At December 31, 2023, based on RSU awards outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSU awards was $3.5 million . This cost is expected to be recognized over a weighted-average period of 1.8 years. At December 31, 2023, the fair value of RSU awards vested during the year was $2.5 million. Subsidiary Equity Plan In December 2021, Victor's Board of Directors approved the Victor Technologies, Inc. 2021 Incentive Plan (the “2021 Victor LTI Plan”) which is an incentive plan denominated in Victor’s common shares. The 2021 Victor LTI Plan provides for the issuance of stock options, stock appreciation rights, restricted stock awards and restricted stock units to selected employees and directors. Effective October 2023, the maximum number of shares that may be issued under the plan was amended to 3.0 million shares from 5.0 million. As of December 31, 2023, 1.7 million shares remain available for issuance. During 2023, Victor issued a total of 201,999 options to employees and non-employees at an average exercise price of $0.29 per share. The options have a ten-year term and will vest over a three-year period, so long as the optionees remain employed by Victor. During 2023 , 372,331 shares vested and 9,999 shares were forfeited at an average exercise price of $0.29. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 – Earnings Per Share We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. For the years ended December 31, (Dollars in thousands except shares and per share data) 2023 2022 2021 Numerator for earnings per share: Net income from continuing operations $ 22,224 $ 11,734 $ 37,838 Net loss attributable to noncontrolling interest 226 660 425 Dividends on preferred stock — — (35) Net income available to common shareholders from continuing operations 22,450 12,394 38,228 Net income from discontinued operations available to common shareholders - basic and diluted 8,782 2,653 858 Net income available to common shareholders $ 31,232 $ 15,047 $ 39,086 Denominator: Weighted-average shares outstanding - basic 12,694,206 12,279,462 11,778,557 Effect of dilutive stock options and restricted stock units 303,126 591,272 835,063 Weighted-average shares outstanding - diluted 12,997,332 12,870,734 12,613,620 Earnings per share from continuing operations - basic $ 1.77 $ 1.01 $ 3.25 Earnings per share from discontinued operations - basic $ 0.69 $ 0.22 $ 0.07 Earnings per common share - basic $ 2.46 $ 1.23 $ 3.32 Earnings per share from continuing operations - diluted $ 1.72 $ 0.96 $ 3.03 Earnings per share from discontinued operations - diluted $ 0.68 $ 0.21 $ 0.07 Earnings per common share - diluted $ 2.40 $ 1.17 $ 3.10 Instruments not included in the computation of diluted EPS because the effect would be antidilutive 364,105 113,427 93,895 |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Regulatory Capital Requirements | Note 16 – Regulatory Capital Requirements We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the federal banking agencies. West Virginia state chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of capital. The optional community bank leverage ratio ("CBLR") framework, which is issued through interagency guidance, intends to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions as directed under the EGRRCPA. Under the CBLR, if a qualifying depository institution elects to use such measure, such institutions will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. As of December 31, 2023 and 2022, we and the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain the minimum CBLR as set forth in the table below. Our actual capital amounts and ratio is presented in the table below. The Bank elected to begin using the CBLR for the first quarter of 2021 and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following: ● Total assets of less than $10 billion; ● Total trading assets plus liabilities of 5% or less of consolidated assets; ● Total off-balance sheet exposures of 25% or less of consolidated assets; ● Cannot be an advanced approaches banking organization; and ● Leverage ratio greater than 9% or temporarily prescribed threshold established in response to COVID-19 . Actual Minimum Capital Requirement Minimum to be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Community Bank leverage ratio Subsidiary bank $ 348,760 10.5% $ 264,484 8.0% $ 297,544 9.0% As of December 31, 2022 Community Bank leverage ratio Subsidiary bank $ 307,936 9.8% $ 250,675 8.0% $ 282,010 9.0% |
Regulatory Restriction on Divid
Regulatory Restriction on Dividends | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Regulatory Restriction on Dividends | Note 17 – Regulatory Restriction on Dividends The approval of the regulatory agencies is required if the total of all dividends declared by the Bank in any calendar year exceeds the Bank’s net profits, as defined, for that year combined with its retained net profits for the preceding two |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 18 – Fair Value of Financial Instruments The carrying values and estimated fair values of financial instruments are summarized as follows: Fair Value Measurements at: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) December 31, 2023 Financial Assets: Cash and cash equivalents $ 398,229 $ 398,229 $ 398,229 $ — $ — Securities available-for-sale 345,275 345,275 — 319,530 25,745 Equity securities 41,086 41,086 3,590 — 37,496 Loans held-for-sale 629 629 — 629 — Loans receivable, net 2,295,470 2,230,279 — — 2,230,279 Servicing assets 0 1,768 1,799 — — 1,799 Interest rate swaps 6,249 6,249 — 6,249 — Accrued interest receivable 15,267 15,267 — 2,836 12,431 FHLB Stock 2,094 2,094 — 2,094 — Bank-owned life insurance 44,287 44,287 — 44,287 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 2,901,476 $ 2,587,246 $ — $ 2,587,246 $ — Repurchase Agreements 4,821 4,821 — 4,821 — Interest rate swaps 6,249 6,249 — 6,249 — Fair value hedge 6,111 6,111 — 6,111 — Accrued interest payable 2,385 2,385 — 2,385 — Senior term loan 6,786 6,786 — 6,786 — Subordinated debt 73,540 57,234 — 57,234 — 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 swaps 8,427 8,427 — 8,427 — Accrued interest receivable 12,617 12,617 — 2,778 9,839 Bank-owned life insurance 43,239 43,239 — 43,239 — Embedded derivative 787 787 — — 787 Financial liabilities: Deposits $ 2,570,482 $ 2,226,037 $ — $ 2,226,037 $ — Repurchase agreements 10,037 10,037 — 10,037 — FHLB and other borrowings 102,333 102,006 — 102,006 — Fair value hedges 572 572 — 572 Interest rate swaps 8,427 8,427 — 8,427 — Accrued interest payable 2,558 2,558 — 2,558 — Senior term loan 9,765 9,765 — 9,765 — Subordinated debt 73,286 64,330 — 64,330 — |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 19 – Fair Value Measurements Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time 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. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following measurements are made on a recurring basis. Available-for-sale investment securities — Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level I securities include those traded on an active exchange, such as the New York Stock Exchange and money market funds. Level II securities include mortgage-backed securities issued by government sponsored entities and private label entities, municipal bonds, United States Treasury securities that are traded by dealers or brokers in inactive over-the-counter markets and corporate debt securities. There have been no changes in valuation techniques for the year ended December 31, 2023. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. We classified investments in government securities as Level II instruments and valued them using the market approach. Equity securities — Certain equity securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. The valuation methodologies utilized may include significant unobservable inputs. There have been no changes in valuation techniques for the year ended December 31, 2023. Valuation techniques are consistent with techniques used in prior periods. 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. Interest rate swaps – Interest rate swaps are recorded at fair value based on third-party vendors who compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data. Fair value hedges – Treated like an interest rate swap, fair value hedges are recorded at fair value based on third-party vendors who compile prices from various sources and may determine fair value of identical or similar instruments by using pricing models that consider observable market data. Bank-owned life insurance - Life insurance where the bank is both the policy beneficiary and owner. Bank-owned life insurance is recorded at fair value on a recurring basis, and increases in cash surrender, contract value and net insurance proceeds at maturity are recorded as other income. Embedded derivatives — Accounted for and recorded separately from the underlying contract as a derivative at fair value on a recurring basis. Fair values are determined using the Monte Carlo model valuation technique. The valuation methodology utilized includes significant unobservable inputs. The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 38,408 $ — $ 38,408 United States sponsored mortgage-backed securities — 82,382 — 82,382 United States treasury securities — 100,356 — 100,356 Municipal securities — 88,662 18,245 106,907 Corporate debt securities — 8,942 — 8,942 Other securities — 780 — 780 Equity securities 3,590 — — 3,590 Loans held-for-sale — 629 — 629 Interest rate swaps — 6,249 — 6,249 Bank-owned life insurance — 44,287 — 44,287 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 6,249 — 6,249 Fair value hedge — 6,111 — 6,111 December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 44,814 $ — $ 44,814 United States sponsored mortgage-backed securities — 56,571 — 56,571 United States treasury securities — 120,909 — 120,909 Municipal securities — 103,293 35,343 138,636 Corporate debt securities — 10,560 — 10,560 Other securities — 824 — 824 Equity securities 5,382 — — 5,382 Loans held-for-sale 24,898 — 24,898 Interest rate swaps — 8,427 — 8,427 Bank-owned life insurance — 43,239 — 43,239 Embedded derivative — — 787 787 Liabilities: Interest rate swaps — 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 December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized and unrealized income (loss) included in earnings 47 (139) (92) Purchase of securities 246 — 246 Maturities/calls (18,294) — (18,294) Unrealized gain included in other comprehensive loss 903 — 903 Balance at December 31, 2023 $ 18,245 $ 648 $ 18,893 Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized and unrealized gains included in earnings 9 — 9 Purchase of securities 1,048 — 1,048 Maturities/calls (3,207) — (3,207) Unrealized loss included in other comprehensive loss (4,270) — (4,270) Host contract executed — 787 787 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 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) 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 credit 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. 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. Equity securities – Certain equity securities are recorded at fair value on a nonrecurring basis. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. Assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 are included in the table below: December 31, 2023 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans — — 2,891 2,891 Other real estate owned — — 825 825 Other debt securities — — 7,500 7,500 Equity securities — — 37,496 37,496 December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent 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 carrying amount of equity securities without a readily determinable fair value and amounts of unrealized gains and losses recognized in earnings as of December 31, 2023 and 2022 are included in the table below: (Dollars in thousands) Cumulative Adjustments Annual Adjustments December 31, 2023 Carrying value $ 37,496 $ 37,496 Carrying value adjustments: Upward changes for observable prices 18,038 671 Downward changes for observable prices (2,014) (250) Net gain $ 16,024 $ 421 December 31, 2022 Carrying value $ 33,362 $ 33,362 Carrying value adjustments: Upward changes for observable prices 17,367 203 Downward changes for observable prices (1,764) (1,652) Net gain (loss) $ 15,603 $ (1,449) At December 31, 2023 equity securities consist of our Fintech investment portfolio, which is comprised of investments in 10 companies with a carrying value of $36.4 million, and other equity security investments with a carrying value of $1.1 million. The equity securities included in the table above do not have readily determinable fair values and are recorded at cost and adjusted for observable price changes for underlying transactions for identical or similar investments. The net gain (loss) in values of the equity securities is included in holding gain (loss) on equity securities in our consolidated statements of income. The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2023 and 2022: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2023 Nonrecurring measurements: Collateral-dependent loans $ 2,891 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 825 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 $ 37,496 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 18,245 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% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 Nonrecurring measurements: Impaired loans $ 14,117 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 1,194 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost, 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 which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted-average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 20 – Derivatives We use certain derivative instruments to meet the needs of customers, as well as to manage the interest rate risk associated with certain transactions. All derivative financial instruments are recognized as either assets or liabilities and measured at fair value. Fair Value Hedges of Interest Rate Risk We are exposed to changes in the fair value of fixed rate mortgages and certain fixed rate available for sale securities included in a closed portfolio due to changes in benchmark interest rates. We entered into a pay-fixed/receive-variable interest rate swap in 2019 with a notional amount of $10.9 million and a fair value of $0.6 million at December 31, 2022, which was designated as a fair value hedge associated with certain available for sale securities. This hedging relationship was discontinued during the first quarter of 2023. In 2023, we entered into five fixed portfolio layer method fair value swaps, designated as hedging instruments, to manage exposure to changes in fair value on fixed rate mortgages and certain fixed rate available for sale securities attributable to the designated interest rate. Four of the interest rate swaps are designated to hedge a closed portfolio of fixed rate mortgages, and one of the interest rate swaps is designated to hedge a closed portfolio of fixed rate municipal bonds. 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 five swaps was $440.3 million as of December 31, 2023, one of which is amortizing and included a $9.7 million amortization adjustment to the notional amount at December 31, 2023. Under this method, the hedged items are designated as a hedged layer of closed portfolios of financial loans and municipal bonds that are anticipated to remain outstanding for the designated hedged periods. Adjustments are made to record the swaps 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 are also 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 December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet Location Amortized Cost Basis Hedged Asset Basis Adjustment Amortized Cost Basis Hedged Asset Basis Adjustment Fixed rate mortgages Loans receivable $ 491,018 $ 390,297 $ 4,055 $ — $ — $ — Fixed rate bonds Investment securities available-for-sale 59,270 50,000 1,570 11,059 10,885 (244) Total hedged assets $ 550,288 $ 440,297 $ 5,625 $ 11,059 $ 10,885 $ (244) Derivatives Not Designated as Hedging Instruments Matched Interest Rate Swaps. We enter into interest rate swap contracts to help commercial loan borrowers manage their interest rate risk. The interest rate swap contracts with commercial loan borrowers allow them to convert floating-rate loan payments to fixed rate loan payments. When we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter into a "mirror" swap contract with a third-party. The third-party exchanges the borrower's fixed-rate loan payments for floating-rate loan payments. These derivatives are not designated as hedges and changes in fair value are recognized in earnings. Because these derivatives have mirror-image contractual terms, the changes in fair value substantially offset each other through earnings. Fees earned in connection with the execution of derivatives related to this program are recognized in earnings through loan-related derivative income. The following tables summarize outstanding financial derivative instruments as of December 31, 2023 and December 31, 2022: December 31, 2023 (Dollars in thousands) Balance Sheet Location Notional Amount Fair Value of Asset (Liability) Gain (Loss) Fair value hedge of interest rate risk: Pay fixed rate swaps with counterparty Accrued interest receivable and other assets $ 440,297 $ (6,111) $ (6,111) Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 126,494 6,249 6,249 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 126,494 (6,249) (6,249) Total derivatives $ 693,285 $ (6,111) $ (6,111) December 31, 2022 (Dollars in thousands) Balance Sheet Location Notional Amount Fair Value of Asset (Liability) Gain (Loss) Fair value hedge of interest rate risk: Pay fixed rate swaps with counterparty Accrued interest receivable and other assets $ 10,885 $ 578 $ 578 Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 137,739 8,427 8,427 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 137,739 (8,427) (8,427) Total derivatives $ 286,363 $ 578 $ 578 Embedded Derivative In December 2022, we entered into an agreement to sell a portion of our shares of Interchecks Technologies, Inc., a former equity method investment that was subsequently reclassified to equity securities due to the decrease in the remaining ownership percentage. Based on the terms of the sale, we recognized the cash received at closing, as well as a receivable for the remaining installment payment, which is based on a future economic event and is accounted for and separately recorded as a derivative. The derivative instrument is included in accrued interest receivable and other assets on the consolidated balance sheet, while the gains and losses are included in noninterest income |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 21 – Comprehensive Income The following tables present the components of accumulated other comprehensive income (“AOCI”) for the years ended December 31: (Dollars in thousands) 2023 2022 2021 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Consolidated Statement of Income Line Item Available-for-sale securities Unrealized holding gain (loss) $ (1,536) $ 650 $ 3,875 Gain (loss) on sale of available-for-sale securities (1,536) 650 3,875 Total before tax 369 (152) (908) Income tax expense (1,167) 498 2,967 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (117) (429) (507) Salaries and employee benefits (117) (429) (507) Total before tax 28 103 119 Income tax benefit (89) (326) (388) Net of tax Investment hedge Carrying value adjustment 289 83 (862) Interest on investment securities 289 83 (862) Total before tax (69) (21) 233 Income tax benefit (expense) 220 62 (629) Net of tax Total reclassifications $ (1,036) $ 234 $ 1,950 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment Hedge Total Balance at January 1, 2023 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 7,791 46 — 7,837 Amounts reclassified from AOCI 1,167 89 (220) 1,036 Net current period OCI 8,958 135 (220) 8,873 Balance at December 31, 2023 $ (25,871) $ (2,994) $ 34 $ (28,831) Balance at January 1, 2022 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (34,478) 614 — (33,864) Amounts reclassified from AOCI (498) 326 (62) (234) Net current period OCI (34,976) 940 (62) (34,098) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 22 – Condensed Financial Statements of Parent Company Information relative to the parent company’s condensed balance sheets at December 31, 2023 and 2022 and the related condensed statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021 are presented below: Condensed Balance Sheets December 31, (Dollars in thousands) 2023 2022 Assets Cash $ 8,590 $ 31,085 Investment in subsidiaries 319,504 277,173 Debt and equity securities 2,400 4,904 Equity method investments 54,199 50,976 Other assets 14,835 11,033 Total assets $ 399,528 $ 375,171 Liabilities and stockholders’ equity Other liabilities $ 29,818 $ 31,036 Senior term loan 6,786 9,765 Subordinated debt 73,540 73,286 Total liabilities 110,144 114,087 Total stockholders’ equity 289,384 261,084 Total liabilities and stockholders’ equity $ 399,528 $ 375,171 Condensed Statements of Income Year ended December 31, (Dollars in thousands) 2023 2022 2021 Income, dividends from the Bank $ 23,014 $ 50,985 $ 19,165 Operating expenses 27,002 27,774 22,458 Income (loss), before income taxes (3,988) 23,211 (3,293) Income taxes (4,050) (3,450) (2,090) Net income (loss) 62 26,661 (1,203) Equity in undistributed income earnings of subsidiaries 31,170 (11,614) 40,324 Net income $ 31,232 $ 15,047 $ 39,121 Preferred dividends $ — $ — $ 35 Net income available to common shareholders $ 31,232 $ 15,047 $ 39,086 Condensed Statements of Cash Flows (Dollars in thousands) 2023 2022 2021 OPERATING ACTIVITIES Net income $ 31,232 $ 15,047 $ 39,121 Equity in undistributed earnings of subsidiaries (31,170) 11,614 (40,324) Stock-based compensation 3,392 3,217 3,208 Depreciation and amortization 305 269 175 Other assets (11,638) (45,406) (6,849) Other liabilities (2,887) 16,358 11,215 Net cash from operating activities (10,766) 1,099 6,546 INVESTING ACTIVITIES Investment in subsidiaries 150 (240) (15,871) Net cash from investing activities 150 (240) (15,871) FINANCING ACTIVITIES Issuance of senior term loan, net of issuance costs — 9,877 — Issuance of subordinated debt, net of issuance costs — — 29,448 Preferred stock redemption — — (7,334) Stock option exercise proceeds 637 2,069 4,930 Withholding cash issued in lieu of restricted stock (847) (670) (249) Issuance of subsidiary membership units — — 500 Principal payments on senior term loan (3,030) (125) — Stock purchase from noncontrolling interest — (33) — Cash dividends paid on common stock (8,639) (8,355) (6,038) Cash dividends paid on preferred stock — — (35) Net cash from financing activities (11,879) 2,763 21,222 Net change in cash (22,495) 3,622 11,897 Cash at beginning of period 31,085 27,463 15,566 Cash at end of period $ 8,590 $ 31,085 $ 27,463 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 23 – 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. Our CoRe Banking segment, which includes our Fintech division, represents banking products and services offered to customers by the Bank, primarily loans and deposits accounts. Revenue from banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. 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. Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2023, 2022 and 2021 are as follows: 2023 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 189,498 $ 416 $ 41 $ — $ (137) $ 189,818 Interest expense $ 62,507 $ — $ 3,985 $ 180 $ (137) $ 66,535 Net interest income (expense) $ 126,991 $ 416 $ (3,944) $ (180) $ — $ 123,283 Release of allowance for credit losses $ (1,921) $ — $ — $ — $ — $ (1,921) Net interest income (expense) after release of allowance for credit losses $ 128,912 $ 416 $ (3,944) $ (180) $ — $ 125,204 Noninterest income $ 17,286 $ (2,486) $ 10,453 $ 9,138 $ (14,676) $ 19,715 Noninterest Expenses: Salaries and employee benefits $ 37,265 $ 7 $ 17,041 $ 9,058 $ — $ 63,371 Other expenses $ 53,221 $ 65 $ 8,233 $ 7,411 $ (14,676) $ 54,254 Total noninterest expenses $ 90,486 $ 72 $ 25,274 $ 16,469 $ (14,676) $ 117,625 Income (loss) before income taxes 55,712 (2,142) (18,765) (7,511) — 27,294 Income taxes 12,342 (557) (4,923) (1,792) — 5,070 Net income (loss) from continuing operations 43,370 (1,585) (13,842) (5,719) — 22,224 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income tax expense - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss) 43,370 (1,585) (13,842) 3,063 — 31,006 Net loss attributable to noncontrolling interest — — — 226 — 226 Net income (loss) available to common shareholders $ 43,370 $ (1,585) $ (13,842) $ 3,289 $ — $ 31,232 Capital expenditures for the year ended December 31, 2023 $ 914 $ — $ 58 $ 943 $ — $ 1,915 Total assets as of December 31, 2023 $ 3,255,369 $ 83,909 $ 345,314 $ 17,728 $ (388,438) $ 3,313,882 Goodwill as of December 31, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 2022 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 125,426 $ 429 $ 146 $ — $ (44) $ 125,957 Interest expense 10,920 — 3,234 44 (44) 14,154 Net interest income (expense) 114,506 429 (3,088) (44) — 111,803 Provision for loan losses 14,194 — — — — 14,194 Net interest income (expense) after provision for loan losses 100,312 429 (3,088) (44) — 97,609 Noninterest income 22,673 37 10,576 6,120 (11,841) 27,565 Noninterest expenses: Salaries and employee benefits 36,960 8 16,582 8,984 — 62,534 Other expenses 44,873 142 8,049 6,389 (11,841) 47,612 Total noninterest expenses 81,833 150 24,631 15,373 (11,841) 110,146 Income (loss) before income taxes 41,152 316 (17,143) (9,297) — 15,028 Income taxes 8,882 77 (3,472) (2,193) — 3,294 Net income (loss) from continuing operations 32,270 239 (13,671) (7,104) — 11,734 Income from discontinued operations before income taxes — — — 3,487 — 3,487 Income tax expense - discontinued operations — — — 834 — 834 Net income from discontinued operations — — — 2,653 — 2,653 Net income (loss) 32,270 239 (13,671) (4,451) — 14,387 Net loss attributable to noncontrolling interest — — — 660 — 660 Net income (loss) available to common shareholders $ 32,270 $ 239 $ (13,671) $ (3,791) $ — $ 15,047 Capital expenditures for the year ended December 31, 2022 $ 400 $ — $ 413 $ 2,228 $ — $ 3,041 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 $ 375,171 $ 27,075 $ (382,119) $ 3,068,850 Goodwill as of December 31, 2022 $ — $ — $ — $ 2,838 $ — $ 2,838 2021 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 83,023 $ 411 $ 15 $ (8) $ (12) $ 83,429 Interest expense 4,078 — 2,188 16 (12) 6,270 Net interest income (expense) 78,945 411 (2,173) (24) — 77,159 Provision for loan losses (6,274) (1) — — — (6,275) Net interest income (expense) after provision for loan losses 85,219 412 (2,173) (24) — 83,434 Noninterest income 33,179 16,342 11,103 3,575 (8,346) 55,853 Noninterest Expenses: Salaries and employee benefits 33,595 — 13,704 5,666 — 52,965 Other expenses 37,033 16 6,573 3,567 (8,346) 38,843 Total noninterest expenses 70,628 16 20,277 9,233 (8,346) 91,808 Income (loss) before income taxes 47,770 16,738 (11,347) (5,682) — 47,479 Income taxes 9,154 4,068 (2,091) (1,490) — 9,641 Net income (loss) from continuing operations 38,616 12,670 (9,256) (4,192) — 37,838 Income from discontinued operations before income taxes — — — 1,099 — 1,099 Income tax expense - discontinued operations — — — 241 — 241 Net income from discontinued operations — — — 858 — 858 Net income (loss) 38,616 12,670 (9,256) (3,334) — 38,696 Net loss attributable to noncontrolling interest — — — 425 — 425 Net income (loss) attributable to parent $ 38,616 $ 12,670 $ (9,256) $ (2,909) $ — $ 39,121 Preferred stock dividends — — 35 — — 35 Net income (loss) available to common shareholders $ 38,616 $ 12,670 $ (9,291) $ (2,909) $ — $ 39,086 Capital expenditures for the year ended December 31, 2021 $ 2,590 $ — $ 43 $ 2,731 $ — $ 5,364 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 24 – Quarterly Financial Data (Unaudited) Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2023 First quarter $ 44,763 $ 32,729 $ 14,734 $ 11,342 $ 0.90 $ 0.87 Second quarter 47,031 29,582 9,954 8,112 0.64 0.63 Third quarter 48,325 29,865 5,090 3,867 0.30 0.29 Fourth quarter 49,699 31,107 9,347 7,911 0.62 0.61 Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2022 First quarter $ 23,262 $ 21,848 $ 3,576 $ 2,864 $ 0.24 $ 0.22 Second quarter 28,090 26,660 3,650 2,956 0.24 0.23 Third quarter 33,903 29,846 2,952 2,718 0.22 0.21 Fourth quarter 40,702 33,449 8,337 6,509 0.52 0.50 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 25 – Acquisitions and Divestitures Flexia Payments, LLC In May 2023, MVB Technology entered into an Assignment and Assumption Agreement with 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, which is included in loss on acquisition and divestiture activity in the accompanying consolidated statements of income, 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 receive services and support from Chartwell for three years following the sale. We have paid $2.5 million in fees related to this contract during the year ended December 31, 2023. Balances attributable to Chartwell are included in assets from discontinued operations and liabilities from discontinued operations on our December 31, 2022 consolidated balance sheet. There were no assets from discontinued operations or liabilities from discontinued operations as of December 31, 2023. Chartwell's net income, including the $11.8 million gain, is presented in income from discontinued operations for all periods shown. Prior period balances have been reclassified to conform with this presentation. Chartwell's depreciation and amortization expense was $0.1 million and $0.6 million for the year ended December 31, 2023 and December 31, 2022, respectively. 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: Twelve Months Ended December 31, (Dollars in thousands) 2023 2022 2021 Compliance consulting income $ 2,369 $ 17,151 $ 11,427 Gain on sale of discontinued operations 11,800 — — Total income $ 14,169 $ 17,151 $ 11,427 Salaries and employee benefits $ 2,082 $ 9,628 $ 7,245 Other expenses 256 4,036 3,083 Total expenses $ 2,338 $ 13,664 $ 10,328 Income before income taxes $ 11,831 $ 3,487 $ 1,099 Income taxes 3,049 834 241 Net income from discontinued operations $ 8,782 $ 2,653 $ 858 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 31,232 | $ 15,047 | $ 39,121 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as presented through the Financial Accounting Statement Board's ("FASB") Accounting Standards Codification ("ASC") and with rules and interpretive guidance of the Security and Exchange Commission ("SEC"). All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. 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 December 31, 2023, we hold three equity method investments. See Note 5 – Equity Method Investments for further information. 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”). |
Reclassifications | In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
Subsequent Events | We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investment Securities | Investment Securities Investment securities at the time of purchase are classified as one of the following: Available-for-Sale Securities - Includes debt that will be held for indefinite periods of time. These securities may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and yield of alternative investments. Such securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated income tax effect. The income tax effect is released when the securities are sold. Equity Securities - Includes equity securities that are adjusted to fair value on a monthly basis, with the change in value recorded directly on the income statement. We have elected to measure the equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for underlying transactions for identical or similar investments of new issues. The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Our investment portfolio includes securities that are in an unrealized loss position as of December 31, 2023. 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 ACL 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. When debt securities are in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. Debt securities that do not meet the aforementioned criteria are evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that an ACL exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the allowance are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Securities are charged-off against the ACL or, in the absence of any ACL, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of December 31, 2023 and 2022, the Bank holds $2.1 million and $10.0 million of stock, respectively, which is included in accrued interest receivable and other assets. The stock is bought from and sold to the FHLB based upon its $100 per share par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated by management for impairment. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (i) a significant decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (iii) the impact of legislative and regulatory changes on the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB’s regulatory capital ratios have improved in the most recent quarters, no issues of liquidity are evident, new shares of FHLB stock continue to trade at the $100 per share par value and the FHLB has repurchased shares of excess capital stock from its members during 2023 and 2022. |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Beginning January 2023, our methodology for determining the ACL is based on the requirements of ASC 326. Loans are stated at amortized cost basis reduced by an ACL. Loans are considered non-accrual when scheduled principal or interest payments are 90 days past due. Interest income on loans is recognized on an accrual basis. The ACL is maintained at a level deemed adequate to absorb forecasted losses over the remaining life of each loan within the portfolio. We consistently apply a quarterly loan review process to continually evaluate loans for changes in credit risk. This process serves as the primary means by which we evaluate the adequacy of the ACL, and is based upon periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually analyzed using either collateral based or cash flow based valuation methodology. The general component covers all loans that are not individually analyzed. These loans are measured on a collective basis and are pooled with other loans that share similar characteristics. Management has determined there to be several different portfolio segments sharing similar risk characteristics within the loan portfolio. Factors considered in this process include general loan terms, collateral and availability of historical data to support the analysis, with the initial segmentation based on Call Codes. The ACL is calculated for each segment using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type. The sub-prime automobile loan segment uses a remaining life methodology using straight-line amortization over the remaining life of the portfolio, due to unique characteristics of this pool. Through a loss driver analysis performed by a third-party vendor, a forecasting model that correlates specific economic factors with credit quality of each loan segment was developed. Peer bank data was identified and used in this process, as we did not have adequate quarterly loan data to analyze over the look-back period to 2007. After the third-party analyzed both historical peer loan data and various economic factors over the same look-back period, two economic variables, national GDP and national unemployment rate, were identified as showing the most correlation to the performance of the loans within each of the pooled segments. Within each loan segment forecast, these two economic variables are forecasted based on expected trends over a 12-month period, before reverting to the long-term average quarterly rate of each variable over the next 12-month period, then maintains this quarterly average for the life of the loan segment. The third-party vendor uses these variables to produce an estimated probability of default for each quarter period and, through a proprietary model, also calculates a loss given default factor to estimate overall losses. The vendor also prepares benchmark studies for prepayment and curtailment rate estimates for each loan segment, as well as recovery lag estimates. With all these factors combined, a forecasted allocation rate is produced for each loan segment. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the loss forecasting models. These factors are then added to the forecasted allocation percentages to get the adjusted factor to be applied to the pooled loans on a weighted basis. The following qualitative factors are analyzed: l Lending policies and procedures l Nature and volume of the portfolio l Experience and ability of lending management and staff l Volume and severity of problem credits l Conclusions of loan reviews, audits and exams l Value of the underlying collateral l Concentrations of credit and changes in the levels of such concentrations l Economic and business conditions & consumer sentiment l Other external factors We analyze our loan portfolio each quarter to determine the appropriateness of our ACL. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Special Assets Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is reversed against interest income when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or SARC. Loans are moved to individual analysis when, based on current information and events, the loan no longer exhibits similar risk characteristics as its pool, and we analyze the loan individually on a collateral or cash flow basis. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. We also separately evaluate consumer loans for individual analysis. Loans are identified individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow evaluation of the significance of the payment delays and the circumstances surrounding the loan and the borrower. 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. To estimate the liability for off-balance sheet credit exposures, management analyzes the portfolios of unfunded commitments based on the same segmentation used for the ACL 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 ACL 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. Once the determination has been made that a loan is to be individually analyzed, the amount of potential credit loss is measured using one of two valuation methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; or (ii) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from individual analysis status is made on a quarterly basis. We defer loan origination and commitment fees and direct loan origination costs and the net amount is amortized as an adjustment of the related loan’s yield. |
Loans Held-for-Sale | Loans Held-for-Sale Loans originated or purchased with the intent to sell are designated as held-for-sale. Loans held-for-sale are carried at fair value, which is determined using quoted secondary market prices or investor commitments when possible. 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. Loans are occasionally transferred between the held-for-sale and held-for-investment classifications based on management’s intent and ability to hold or sell loan, which may be impacted by secondary market conditions, loan credit quality or other factors. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost, less accumulated depreciation, while land is carried at cost. Depreciation expense is computed by the straight-line-method based on the estimated useful lives of assets, which range from seven three |
Software Development | Software Development Software that we develop for internal use may be capitalized when costs are incurred after the preliminary project stage has ended and the application development stage begins. The application development stage includes designing, coding, installing and testing the software. Once the software has been implemented, costs for training and maintenance are expensed as incurred. Capitalized internal use software development costs are included in premises and equipment in the accompanying consolidated balance sheets. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance represents life insurance on the lives of certain of our employees who have provided positive consent allowing us to be the beneficiary of such policies. These policies are recorded at their cash surrender value or the amount that can be realized upon surrender of the policy. Income from these policies is not subject to income taxes and is recorded as noninterest income. |
Equity Method Investments | Equity Method Investments Investments in companies in which we have significant influence over the operating and financing decisions are accounted for using the equity method of accounting. Determining if we have significant influence requires judgement based on the facts and circumstances of each investment including level of ownership, legal structure and other qualitative factors which impact our ability to influence the investee's operations, and we review the facts and circumstances each reporting period to determine if we still have significant influence. Equity method investments are recorded initially at cost including costs to acquire the investment. These investments are included in the equity method investments line item on the consolidated balance sheets. We recognize our proportionate share of the investee's profits and losses in the equity method investments income line item. At the time of investment, we may make a one-time election to record our proportionate share of earnings of the investee on a lag of no more than three months. This election may be made on an investment by investment basis. We review equity method investments for impairment if there are events or changes in circumstances which indicate the carrying amount of the investment might not be recoverable. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the related reporting unit level. The goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired; however, if the carrying value of the reporting unit exceeds its fair value, an impairment charge must be recorded. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit. An impairment loss establishes a new basis in the goodwill and subsequent reversals of goodwill impairment losses are not permitted under applicable accounting guidance. For intangible assets subject to amortization, the recoverability test is performed when a triggering event occurs and an impairment loss is recognized if the carrying value of the intangible asset exceeds fair value and is not recoverable. The carrying value of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets deemed to have indefinite useful lives are not subject to amortization. An impairment loss is recognized if the carrying value of the intangible asset with an indefinite life exceeds its fair value. |
Interest Rate Swaps | Interest Rate Swaps |
Fair Value Hedges | Fair Value Hedges |
Embedded Derivatives | Embedded Derivatives |
Servicing Assets | Servicing Assets Servicing assets are recorded when the Bank sells loans and retains the servicing on those loans. On a monthly basis, we track the amount of loans that are sold with servicing retained. We determine the servicing rights value, which is then recorded as an asset and amortized over the period of estimated net servicing revenues. The servicing assets are evaluated for impairment quarterly. Servicing loans for others generally consists of collecting payments from borrowers, maintaining escrow accounts, remitting payments to third party investors and, when necessary, foreclosure processing. Serviced loans are not included in the consolidated balance sheets. At December 31, 2023 and 2022, the value of servicing assets was $1.8 million and $1.6 million, respectively, and is included in accrued interest receivable and other assets in the consolidated balance sheets. We have the ability to sell the guaranteed portion of loans originated through the SBA's 7(a) program. All SBA loan sales are executed on a servicing retained basis. We are required to retain a minimum of 10% of the principal balance in accordance with SBA regulations. Any gain on sale recognized as income is the sum of the premium on the guaranteed portion of the loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan that is retained. The remaining unguaranteed portion of the loan is presented net of the discount, which is recognized as interest income over the underlying loan's remaining term, using the effective interest method. |
Foreclosed Assets Held for Resale | Foreclosed Assets Held for Resale Foreclosed assets held for resale acquired in satisfaction of mortgage obligations and in foreclosure proceedings are recorded at fair value less estimated selling costs at the time of foreclosure, establishing a new cost basis, with any valuation adjustments charged to the ACL. In subsequent periods, foreclosed assets are recorded at the lower of cost or fair value less any costs to sell. Costs relating to improvement of the property are capitalized, while holding costs of the property are charged to other loan origination and maintenance expense in the period incurred. Subsequent declines in fair value and gains or losses on sale are |
Fair Value Measurements | Fair Value Measurements Accounting standards require that we adopt fair value measurement for financial assets and financial liabilities. This enhanced guidance for using fair value to measure assets and liabilities applies whenever other standards require or permit assets or liabilities to be measured at fair value. This guidance does not expand the use of fair value in any new circumstances. The following summarizes the methods and significant assumptions we use in estimating our fair value disclosures for financial instruments. Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available, but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Transfers of assets and liabilities between levels within the fair value hierarchy are recognized when an event or change in circumstances occurs. |
Revenue Recognition | Revenue Recognition We record revenue from contracts with customers in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. Our primary sources of revenue are derived from interest and fees earned on loans, investment securities and other financial instruments that are not within the scope of ASC 606. We have evaluated the nature of our contracts with customers and determined that our revenue from contracts with customers is appropriately disaggregated in our consolidated statement of income is not currently necessary. We generally fully satisfy our performance obligations on our contracts with customers as services are rendered and the transaction prices are typically fixed within each contract, charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying ASC 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Payment Card and Service Charge Income Payment card and service charge income are comprised of service charges on accounts and interchange and debit card transaction fees. Service charges on accounts consist of account analysis fees, monthly service fees, check orders and other account related fees. Our performance obligation for account analysis fees and monthly service fees is generally satisfied and the related revenue recognized, over the period in which the service is provided. Check orders and other account related fees are largely transactional based and therefore, our performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange and debit card transaction fees are primarily comprised of interchange fees earned whenever the Bank’s debit and credit cards are processed through card payment networks. The Bank’s performance obligation for debit card and interchange income is generally satisfied, and the related revenue recognized, on a transactional basis. Payment is typically received immediately or in the following month. We also enter into interchange arrangements with minimum commitment fees. Minimum commitment fees are recognized ratably, until such time that minimum commitment fees are exceeded or expected to be exceeded. Compliance and Consulting Income Compliance and consulting income is comprised revenue generated by Paladin Fraud and Trabian. Paladin Fraud provides an extensive and customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies and other vendors to help clients and partners defend against threats. Trabian provides consulting for the development of online and mobile banking platforms and digital products for Fintech companies. Paladin Fraud and Trabian account for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The services promised are then evaluated in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. Paladin Fraud and Trabian's services included in our contracts are distinct from one another. The transaction price for each contract is determined based upon the consideration expected to be received for the distinct services being provided under the contract. Revenue is recognized as performance obligations are satisfied and the customer obtains control of the goods or services provided. In determining when performance obligations are satisfied, factors considered include contract terms, payment terms and whether there is an alternative future use of the product or service. Consulting engagements may vary in length and scope, but will generally include the review and/or preparation of regulatory filings, business plans, financial models and other risk management services to customers within financial industries. Revenue from consulting services is recognized on a pro rata basis based upon actual labor hours completed as compared to budgeted labor hours for the deliverable. Other Operating Income Other operating income is primarily comprised of ATM fees, wire transfer fees, travelers check fees, revenue streams such as safe deposit box rental fees and other miscellaneous service charges. ATM fees, wire transfer fees and travelers check fees are primarily generated when a Bank’s cardholder uses a non-Bank ATM or a non-Bank cardholder uses a Bank ATM. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Bank determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks and other services. The Bank’s performance obligations for fees and other service charges are largely satisfied, and related revenue recognized, when the services are rendered. Payment is typically received immediately or in the following month. The Bank’s performance obligation for the gains and losses on sales of other real estate owned is satisfied, and the related revenue recognized, after each sale of other real estate owned is closed. |
Stock-Based Compensation | Stock-Based Compensation |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, minimum pension liability and investment hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Income Taxes | Income Taxes The amount reflected as income taxes represents federal and state income taxes on financial statement income. Certain items of income and expense, primarily the provision for credit losses, allowance for losses on foreclosed assets held for resale, depreciation and accretion of discounts on investment securities are reported in different accounting periods for income tax purposes. We and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax bases of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period. Deferred tax assets and liabilities are the result of timing differences in recognition of revenue and expense for income tax and financial statement purposes. No deferred income tax valuation allowance is provided since it is more likely than not that realization of the deferred income tax asset will occur in future years. We prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not recognition threshold should be reversed in the first subsequent financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. With limited exception, our federal and state income tax returns for taxable years through 2019 have been closed for purposes of examination by the federal and state taxing jurisdictions. |
Operating Segments | Operating Segments An operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. We have identified three reportable segments: CoRe Banking, Mortgage Banking and Financial Holding Company. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from us, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (iii) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Recently Issued & Adopted Accounting Pronouncements | Recently Issued 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 December 31, 2023, all loans and other relevant financial instruments that referenced LIBOR have been transitioned to the 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. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss and provide new segment disclosure requirements for entities with a single reportable segment. The amendments are effective for fiscal years beginning after December 15, 2023. We are currently evaluating the impact these changes may have on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments require disaggregated information about a reporting entity's effect tax rate reconciliation as well as information on income taxes paid. Public business entities will be required to disclose additional information in specified categories with respect to the reconciliation of the effective tax rat to the statutory rate for federal, state, and foreign income taxes. The amendments also require greater detail about individual reconciling items in the rate reconciliation to the extent that the impact of those items exceeds a specified threshold. The amendments are effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact these changes may have on our consolidated financial statements. Recently Adopted 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 ACL. 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 ACL, 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. In January 2023, we adopted ASC 326 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 January 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with the incurred loss model. See Note 3 – Loans and Allowance for Credit Losses for further information . The ACL for the majority of the Bank's loans 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 in January 2023. With regard to PCD assets, because we elected to disaggregate the former PCI pools and no longer consider 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); and 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 daily secured overnight financing rate ("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, an 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 2023 as further described in Note 20 – Derivatives |
Earnings Per Share | We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Investment Securities Available-for-sale | Amortized cost and fair values of investment securities available-for-sale at December 31, 2023 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 44,003 $ 8 $ (5,603) $ 38,408 United States sponsored mortgage-backed securities 91,939 992 (10,549) 82,382 United States treasury securities 106,401 — (6,045) 100,356 Municipal securities 118,065 — (11,158) 106,907 Corporate debt securities 9,076 — (134) 8,942 Other debt securities 7,500 — — 7,500 Total debt securities 376,984 1,000 (33,489) 344,495 Other securities 780 — — 780 Total investment securities available-for-sale $ 377,764 $ 1,000 $ (33,489) $ 345,275 Amortized cost and fair values of investment securities available-for-sale at December 31, 2022 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 51,436 $ 15 $ (6,637) $ 44,814 United States sponsored mortgage-backed securities 68,267 — (11,696) 56,571 United States treasury securities 130,689 48 (9,828) 120,909 Municipal securities 157,842 2,412 (21,618) 138,636 Corporate debt securities 10,570 10 (20) 10,560 Other debt securities 7,500 — — 7,500 Total debt securities 426,304 2,485 (49,799) 378,990 Other securities 824 — — 824 Total investment securities available-for-sale $ 427,128 $ 2,485 $ (49,799) $ 379,814 The following table summarizes amortized cost and fair values of debt securities by maturity: December 31, 2023 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 4,785 $ 4,783 After one year, but within five years 112,009 105,897 After five years, but within ten years 41,860 37,866 After ten years 218,330 195,949 Total $ 376,984 $ 344,495 |
Schedule of Investments in an Unrealized Loss Position | The following tables show available-for-sale debt securities in an unrealized loss position for which an ACL has not been recorded as of December 31, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: (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) $ 316 $ — $ 34,619 $ (5,603) United States sponsored mortgage-backed securities (47) — — 50,345 (10,549) United States treasury securities (23) — — 100,354 (6,045) Municipal securities (216) 847 (10) 106,060 (11,148) Corporate debt securities (7) 2,009 (67) 1,933 (67) $ 3,172 $ (77) $ 293,311 $ (33,412) (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 securities (3) 2,380 (20) — — $ 108,486 $ (10,446) $ 212,317 $ (39,353) |
Schedule of Realized Gain (Loss) on Investments | The following table summarizes the investment sales and related gains and losses in 2023, 2022 and 2021: (Dollars in thousands) 2023 2022 2021 Proceeds from sales of available-for-sale securities $ 54,531 $ 60,635 $ 146,011 Gains, gross — 717 3,944 Losses, gross (1,536) (67) (69) Proceeds from sales of equity securities $ 566 $ 1,356 $ 543 Gains, gross 25 158 5 Losses, gross (294) (214) — Unrealized holding gains (losses) on equity securities $ 146 $ (1,543) $ 3,776 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Components of Loans in Consolidated Balance Sheet | The components of loans in the Consolidated Balance Sheet at December 31, were as follows: (Dollars in thousands) 2023 2022 Commercial: Business $ 797,100 $ 851,072 Real estate 670,584 632,839 Acquisition, development and construction 134,004 126,999 Total commercial $ 1,601,688 $ 1,610,910 Residential real estate 672,547 606,970 Home equity lines of credit 14,531 18,734 Consumer 27,408 131,566 Total loans, excluding PCI 2,316,174 2,368,180 Purchased credit impaired loans: Residential real estate — 2,482 Total purchased credit impaired loans $ — $ 2,482 Total loans 2,316,174 2,370,662 Deferred loan origination costs, net of fees 1,420 1,983 Loans receivable $ 2,317,594 $ 2,372,645 |
Schedule of 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 $ 8,486 $ 11,922 $ 16,795 Real estate 1,240 222 546 1,786 1,891 Acquisition, development and construction — — — — 1,415 Total commercial 4,676 1,475 9,032 13,708 20,101 Residential — — 3,098 3,098 3,166 Home equity lines of credit — — 90 90 94 Consumer 1,347 268 4 1,351 1,351 Total impaired loans $ 6,023 $ 1,743 $ 12,224 $ 18,247 $ 24,712 |
Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized | The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended: December 31, 2022 December 31, 2021 (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 $ 12,781 $ 8 $ 6 $ 7,701 $ — $ — Real estate 1,479 57 59 2,051 60 43 Acquisition, development and construction 273 — — 344 — — Total commercial 14,533 65 65 10,096 60 43 Residential 6,952 15 15 5,992 15 14 Home equity lines of credit 149 — — 81 — — Consumer 915 — — 41 — — Total $ 22,549 $ 80 $ 80 $ 16,210 $ 75 $ 57 |
Schedule of Classes of the Loan Portfolio Summarized by 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 December 31, 2023 Commercial business: Risk rating: Pass $ 176,309 $ 251,265 $ 92,307 $ 64,964 $ 50,765 $ 90,355 $ 20,315 $ — $ 746,280 Special Mention 990 32,342 72 830 339 3,767 — — 38,340 Substandard 368 988 521 — 4,640 1,436 — — 7,953 Doubtful — 2,022 839 264 — 1,402 — — 4,527 Total commercial business loans $ 177,667 $ 286,617 $ 93,739 $ 66,058 $ 55,744 $ 96,960 $ 20,315 $ — $ 797,100 Gross charge-offs $ — $ 228 $ 1,250 $ 141 $ — $ 2,953 $ — $ — $ 4,572 Commercial real estate: Risk rating: Pass $ 80,553 $ 149,189 $ 205,651 $ 11,952 $ 26,438 $ 101,322 $ 51,239 $ — $ 626,344 Special Mention — — 7,961 — 6,079 11,201 — — 25,241 Substandard — — — — — 18,999 — — 18,999 Doubtful — — — — — — — — — Total commercial real estate loans $ 80,553 $ 149,189 $ 213,612 $ 11,952 $ 32,517 $ 131,522 $ 51,239 $ — $ 670,584 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 6,546 $ 54,170 $ 29,535 $ 22,041 $ — $ 1,483 $ 4,823 $ — $ 118,598 Special Mention — — 14,652 — — — — — 14,652 Substandard — — — — — 754 — — 754 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 6,546 $ 54,170 $ 44,187 $ 22,041 $ — $ 2,237 $ 4,823 $ — $ 134,004 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 December 31, 2023 Residential Real Estate: Risk rating: Pass $ 33,867 $ 413,466 $ 96,413 $ 38,169 $ 7,306 $ 21,313 $ 50,815 $ — $ 661,349 Special Mention — — — 4,224 414 708 — — 5,346 Substandard — 988 3,764 82 146 777 — — 5,757 Doubtful — — — — — 95 — — 95 Total residential real estate loans $ 33,867 $ 414,454 $ 100,177 $ 42,475 $ 7,866 $ 22,893 $ 50,815 $ — $ 672,547 Gross charge-offs $ — $ — $ — $ — $ 19 $ 381 $ — $ — $ 400 Home equity lines of credit: Risk rating: Pass $ 638 $ 3,798 $ 1,779 $ 1,192 $ 501 $ 3,084 $ 3,154 $ — $ 14,146 Special Mention — 61 — 36 — 41 86 — 224 Substandard — 83 — 78 — — — — 161 Doubtful — — — — — — — — — Total home equity lines of credit loans $ 638 $ 3,942 $ 1,779 $ 1,306 $ 501 $ 3,125 $ 3,240 $ — $ 14,531 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ 2,275 $ 18,926 $ 5,753 $ 9 $ 28 $ 53 $ 20 $ — $ 27,064 Special Mention — — — — — — — — — Substandard 20 266 58 — — — — — 344 Doubtful — — — — — — — — — Total consumer loans $ 2,295 $ 19,192 $ 5,811 $ 9 $ 28 $ 53 $ 20 $ — $ 27,408 Gross charge-offs $ 1,144 $ 10,608 $ 1,753 $ — $ — $ 2 $ — $ — $ 13,507 Total: Risk rating: Pass $ 300,188 $ 890,814 $ 431,438 $ 138,327 $ 85,038 $ 217,610 $ 130,366 $ — $ 2,193,781 Special Mention 990 32,403 22,685 5,090 6,832 15,717 86 — 83,803 Substandard 388 2,325 4,343 160 4,786 21,966 — — 33,968 Doubtful — 2,022 839 264 — 1,497 — — 4,622 Total loans $ 301,566 $ 927,564 $ 459,305 $ 143,841 $ 96,656 $ 256,790 $ 130,452 $ — $ 2,316,174 Gross charge-offs $ 1,144 $ 10,836 $ 3,003 $ 141 $ 19 $ 3,336 $ — $ — $ 18,479 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 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 |
Schedule of 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 December 31, 2023 Commercial: Business $ 788,430 $ 4,728 $ 448 $ 3,494 $ 8,670 $ 797,100 $ 6,926 $ — $ 1,825 $ — Real estate 670,170 — 414 — 414 670,584 — — — — Acquisition, development and construction 134,004 — — — — 134,004 754 — 754 — Total commercial 1,592,604 4,728 862 3,494 9,084 1,601,688 7,680 — 2,579 — Residential 670,539 1,671 337 — 2,008 672,547 82 — — — Home equity lines of credit 14,522 9 — — 9 14,531 161 — — — Consumer 24,494 1,792 778 344 2,914 27,408 344 — — — Total loans $ 2,302,159 $ 8,200 $ 1,977 $ 3,838 $ 14,015 $ 2,316,174 $ 8,267 $ — $ 2,579 $ — 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 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 $ — |
Schedule Of Collateral Dependent Loans At Amortized Cost | 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 December 31, 2023 Commercial Business $ 424 $ 2,277 $ — $ 452 $ 1,037 $ 4,190 $ 1,583 Real estate — — — — — — — Acquisition, development and construction — — — — — — — Total commercial $ 424 $ 2,277 $ — $ 452 $ 1,037 $ 4,190 $ 1,583 Residential — — — — — — — Home equity lines of credit — — — — — — — Consumer — 344 — — — 344 60 Total $ 424 $ 2,621 $ — $ 452 $ 1,037 $ 4,534 $ 1,643 Collateral value $ 301 $ 2,040 $ — $ 906 $ 320 $ 3,567 |
Schedule of Allowance Activity | The following table presents the balance and activity for the primary segments of the ACL as of the periods shown: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total 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 2,954 71 322 3,347 (541) (33) (4,091) (1,318) Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Charge-offs (4,572) — — (4,572) (400) — (13,507) (18,479) Recoveries 194 2 — 196 77 4 8,908 9,185 ACL balance at December 31, 2023 $ 7,931 $ 2,931 $ 1,674 $ 12,536 $ 6,412 $ 97 $ 3,079 $ 22,124 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL, prior to adoption of ASC 326, at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Provision (release of allowance) for credit losses 3,546 486 82 4,114 1,472 (4) 8,612 14,194 Charge-offs (2,858) — — (2,858) (84) — (12,241) (15,183) Recoveries 56 127 — 183 — 7 6,370 6,560 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 Individually evaluated for impairment $ 1,253 $ 222 $ — $ 1,475 $ — $ — $ 268 $ 1,743 Collectively evaluated for impairment $ 7,518 $ 5,482 $ 1,064 $ 14,064 $ 2,880 $ 131 $ 5,019 $ 22,094 Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total ALL, prior to adoption of ASC 326, at December 31, 2020 $ 12,193 $ 9,079 $ 2,761 $ 24,033 $ 1,462 $ 298 $ 51 $ 25,844 Provision (release of allowance) for credit losses (3,113) (3,905) (1,779) (8,797) 35 (194) 2,681 (6,275) Charge-offs (1,284) (83) — (1,367) (5) — (247) (1,619) Recoveries 231 — — 231 — 24 61 316 ALL, prior to adoption of ASC 326, at December 31, 2021 $ 8,027 $ 5,091 $ 982 $ 14,100 $ 1,492 $ 128 $ 2,546 $ 18,266 Individually evaluated for impairment $ 232 $ 243 $ — $ 475 $ — $ — $ — $ 475 Collectively evaluated for impairment $ 7,795 $ 4,848 $ 982 $ 13,625 $ 1,492 $ 128 $ 2,546 $ 17,791 The following table summarizes the primary segments of the loan portfolio as of the period shown: Commercial (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial Residential Home Equity Lines of Credit Consumer Total December 31, 2022 Individually evaluated for impairment $ 10,451 $ 1,365 $ — $ 11,816 $ 2,603 $ 90 $ 1,351 $ 15,860 Collectively evaluated for impairment 840,621 631,474 126,999 1,599,094 606,849 18,644 130,215 2,354,802 Total loans $ 851,072 $ 632,839 $ 126,999 $ 1,610,910 $ 609,452 $ 18,734 $ 131,566 $ 2,370,662 |
Schedule of Loans Modified | The following tables summarize the amortized cost basis of loans that were modified during the twelve months ended December 31, 2023: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable December 31, 2023 Commercial Business $ — $ 8,535 $ — $ — $ 8,535 1 % Real estate — 11,201 1,702 — 12,903 2 % Acquisition, development and construction — — 754 — 754 1 % Total commercial — 19,736 2,456 — 22,192 1 % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 19,736 $ 2,456 $ — $ 22,192 1 % (Dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Past Due December 31, 2023 Commercial Business $ 1,702 $ 418 $ 3,370 $ 5,490 Real estate — — — — Acquisition, development and construction — — — — Total commercial 1,702 418 3,370 5,490 Residential — — — — Home equity lines of credit — — — — Consumer — — — — Total $ 1,702 $ 418 $ 3,370 $ 5,490 |
Schedule 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 December 31, 2023 Commercial Business $ — $ 2,634 $ — $ — $ 2,634 Real estate — — — — — Total commercial — 2,634 — — 2,634 Residential — — — — — Home equity lines of credit — — — — — Consumer — — — — — Total $ — $ 2,634 $ — $ — $ 2,634 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table presents the components of premises and equipment at December 31,: (Dollars in thousands) 2023 2022 Land $ 3,465 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 18,300 17,549 Software 7,140 6,019 Construction in progress 45 508 Leasehold improvements 2,836 2,836 45,179 43,770 Accumulated depreciation (24,251) (20,140) Premises and equipment, net $ 20,928 $ 23,630 |
Schedule of Lease Cost | The following shows lease costs for the years ended: (Dollars in thousands) December 31, 2023 December 31, 2022 Amortization of right-of-use assets, finance leases $ 10 $ 57 Operating lease cost 1,795 1,781 Short-term lease cost 8 32 Variable lease cost 38 38 Total lease cost $ 1,851 $ 1,908 |
Schedule of Operating Lease Liability | For operating leases with initial or remaining terms of one year or more as of December 31, 2023, the following table presents future minimum payments for the twelve month periods ended December 31: (Dollars in thousands) Operating Leases 2024 $ 1,793 2025 1,738 2026 1,611 2027 1,641 2028 1,629 2029 and thereafter 8,320 Total future minimum lease payments $ 16,732 Less: Amounts representing interest (2,698) Present value of net future minimum lease payments $ 14,034 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table provides summarized income statement information for ICM for the years ended December 31, 2023 and 2022: December 31, (Dollars in thousands) 2023 2022 2021 Total revenues $ 39,283 $ 67,207 $ 153,549 Net income (loss) (9,418) 343 41,381 Gain on loans sold 22,782 44,921 150,896 Gain (loss) on loans held for sale 457 (2,834) (10,223) Volume of loans sold 1,353,410 2,325,709 5,326,757 The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown: (Dollars in thousands) 2023 Total revenues $ 143,784 Net income 7,234 Gain on loans sold 37,218 Gain on loans held for sale 8,210 Volume of loans sold 1,370,313 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits at December 31, were as follows: (Dollars in thousands) 2023 2022 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,197,272 $ 1,231,544 NOW 538,444 720,062 Savings and money markets 571,299 284,459 Time deposits, including CDs and IRAs 594,461 334,417 Total deposits $ 2,901,476 $ 2,570,482 Time deposits that meet or exceed the FDIC insurance limit $ 3,150 $ 4,386 |
Schedule of Maturities of Time Deposits | Maturities of time deposits at December 31, 2023 were as follows (dollars in thousands): 2024 $ 426,024 2025 72,690 2026 478 2027 17,226 2028 78,019 Thereafter 24 Total $ 594,461 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Information Related to Short-term Borrowings | Information related to short-term borrowings is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ — $ 102,333 Average balance during the year 17,542 15,494 Maximum month-end balance — 102,333 Weighted-average rate during the year 5.07 % 2.82 % Weighted-average rate at December 31 — % 4.45 % |
Schedule of Information Related to Repurchase Agreements | Information related to repurchase agreements is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 4,821 $ 10,037 Average balance during the year 5,662 10,987 Maximum month-end balance 10,041 12,680 Weighted-average rate during the year 0.02 % 0.05 % Weighted-average rate at December 31 0.01 % 0.06 % |
Schedule of Information Related to Subordinated Debt | Information related to subordinated debt is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 73,540 $ 73,286 Average balance during the year 73,415 73,159 Maximum month-end balance 73,540 73,286 Weighted-average rate during the year 4.38 % 4.20 % Weighted-average rate at December 31 4.02 % 3.97 % |
Schedule of Information Related to Secured Borrowings | Information related to senior term loan is summarized as follows: (Dollars in thousands) 2023 2022 Balance at end of year $ 6,786 $ 9,765 Average balance during the year 9,007 2,328 Maximum month-end balance 9,768 9,886 Weighted-average rate during the year 8.50 % 7.00 % Rate at December 31 8.76 % 7.44 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Amounts of Commitments | Total contractual amounts of the commitments as of December 31, were as follows: (Dollars in thousands) 2023 2022 Available on lines of credit $ 363,452 $ 495,618 Stand-by letters of credit 36,826 17,153 Other loan commitments 16,788 14,901 $ 417,066 $ 527,672 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provisions for income taxes for the years ended December 31, were as follows: (Dollars in thousands) 2023 2022 2021 Current: Federal $ 6,707 $ 6,607 $ 3,332 State 1,315 1,152 421 $ 8,022 $ 7,759 $ 3,753 Deferred: Federal $ 8 $ (3,056) $ 5,159 State 89 (575) 970 97 (3,631) 6,129 Income tax expense $ 8,119 $ 4,128 $ 9,882 |
Schedule of Reconciliation of Income Taxes at Federal Statutory Rates to Recorded Income Taxes | Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31: 2023 2022 2021 (Dollars in thousands) Amount % Amount % Amount % Income tax at federal statutory rate $ 8,217 21.0 % $ 3,889 21.0 % $ 10,201 21.0 % Tax effect of: State income taxes, net of federal income taxes 1,109 2.8 % 456 2.5 % 1,099 2.2 % Tax exempt earnings (941) (2.4) % (1,596) (8.6) % (1,460) (3.0) % Other (266) (0.6) % 1,379 7.4 % 42 0.1 % $ 8,119 20.8 % $ 4,128 22.3 % $ 9,882 20.3 % |
Schedule of Deferred Income Tax Assets and (Liabilities) | Deferred income tax assets and liabilities were comprised of the following at December 31: (Dollars in thousands) 2023 2022 Gross deferred tax assets: Allowance for credit losses $ 5,589 $ 5,849 Minimum pension liability 955 991 Research and development 2,035 — Stock-based compensation 976 1,097 SERP 327 317 Unrealized loss on securities available-for-sale 7,892 11,024 Lease liabilities 3,402 3,611 Other 828 364 Total gross deferred tax assets 22,004 23,253 Gross deferred tax liabilities: Depreciation (1,197) (1,726) Pension (1,091) (1,062) Unrealized gain on securities available-for-sale — (80) Holding gain on equity securities (3,976) (3,969) Equity method investment (2,136) (2,220) Goodwill (107) (110) Right-of-use assets (3,163) (3,383) Other (597) (264) Total gross deferred tax liabilities (12,267) (12,814) Net deferred tax assets $ 9,737 $ 10,439 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Loan Activity | Set forth below is a summary of the related loan activity. (Dollars in thousands) Balance at Beginning of Year Borrowings, net of participations Executive Officer and Director Retirements Repayments Balance at End of Year December 31, 2023 $ 33,433 $ 866,011 $ — $ (877,072) $ 22,372 December 31, 2022 $ 27,606 $ 221,825 $ (998) $ (215,000) $ 33,433 |
Pension Plan (Tables)
Pension Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plan Activity | Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2023 and 2022 is as follows: (Dollars in thousands) 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 8,829 $ 12,230 Interest cost 450 341 Actuarial loss 97 160 Assumption changes 251 (3,584) Benefits paid (341) (318) Benefit obligation at end of year $ 9,286 $ 8,829 Change in plan assets: Fair value of plan assets at beginning of year $ 9,283 $ 11,591 Actual return gain (loss) on plan assets 1,064 (1,990) Benefits paid (341) (318) Fair value of plan assets at end of year $ 10,006 $ 9,283 Funded status $ 720 $ 454 Unrecognized net actuarial loss 3,943 4,120 Prepaid pension cost recognized $ 4,663 $ 4,574 Accumulated benefit obligation $ 9,286 $ 8,829 |
Schedule of Weighted Average Assumptions Used | At December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine the benefit obligation are as follows: 2023 2022 2021 Discount rate 5.01 % 5.23 % 2.83 % Rate of compensation increase n/a n/a n/a For the years December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine net periodic pension cost (income) are as follows: 2023 2022 2021 Discount rate 5.01 % 5.23 % 2.83 % Expected long-term rate of return on plan assets 5.75 % 6.00 % 6.75 % Rate of compensation increase n/a n/a n/a |
Schedule of Components of Net Periodic Pension Cost | The components of net periodic pension cost (income) are as follows: (Dollars in thousands) 2023 2022 2021 Interest cost $ 450 $ 341 $ 313 Expected return on plan assets (655) (669) (689) Amortization of net actuarial loss 117 429 507 Net periodic pension cost (income) $ (88) $ 101 $ 131 |
Schedule of Pension Plan Asset Allocations | Our pension plan asset allocations at December 31, 2023 and 2022 are as follows: 2023 2022 Plan Assets Cash 5 % 7 % Fixed income 30 % 28 % Alternative investments 12 % 13 % Domestic equities 31 % 26 % Foreign equities 21 % 22 % Real estate investment trusts 1 % 4 % Total 100 % 100 % |
Schedule of Plan Assets at Fair Value by Level | The following table sets forth by level within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements , the Pension Plan’s assets at fair value as of December 31, 2023: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 500 $ — $ — $ 500 Fixed income 3,002 — — 3,002 Alternative investments — — 1,201 1,201 Domestic equities 3,102 — — 3,102 Foreign equities 2,101 — — 2,101 Total $ 8,705 $ — $ 1,201 $ 9,906 Investments reported at net asset value 1 100 Total assets at fair value $ 10,006 1 Investments reported at net asset value include real estate investment trusts. The following table sets forth by level, within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2022: (Dollars in thousands) Level I Level II Level III Total Assets: Cash $ 650 $ — $ — $ 650 Fixed income 2,599 — — 2,599 Alternative investments — — 1,207 1,207 Domestic equities 2,414 — — 2,414 Foreign equities 2,042 — — 2,042 Total $ 7,705 $ — $ 1,207 $ 8,912 Investments reported at net asset value 1 371 Total assets at fair value $ 9,283 1 Investments reported at net asset value include real estate investment trusts. |
Schedule of Estimate of Plan Contributions in Future Years | The following table includes our best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: (Dollars in thousands) Cash Flow Contributions for the period of January 1, 2024 through December 31, 2024 $ — Estimated future benefit payments reflecting expected future service 2024 $ 433 2025 $ 466 2026 $ 554 2027 $ 560 2028 $ 575 2029 through 2033 $ 2,884 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amounts of Goodwill and Other Intangibles | The table below summarizes the changes in carrying amounts of goodwill and other intangibles, including core deposit intangibles, for the periods presented: Intangibles (Dollars in thousands) Goodwill Gross Accumulated Amortization Net Balance at January 1, 2023 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Reduction of goodwill and intangibles resulting from sale of Chartwell (1,150) (3,220) 2,133 (1,087) Amortization expense — — (192) (192) Balance at December 31, 2023 $ 2,838 $ 600 $ (248) $ 352 Balance at January 1, 2022 $ 3,988 $ 3,820 $ (1,504) $ 2,316 Amortization expense — — (685) (685) Balance at December 31, 2022 1 $ 3,988 $ 3,820 $ (2,189) $ 1,631 Balance at January 1, 2021 $ 2,350 $ 3,941 $ (1,541) $ 2,400 Goodwill and intangibles resulting from Trabian acquisition 1,638 600 — 600 Reduction of intangibles from sale of branches to Summit — (721) 721 — Amortization expense — — (684) (684) Balance at December 31, 2021 $ 3,988 $ 3,820 $ (1,504) $ 2,316 1 Includes $1.2 million of goodwill and $1.1 million of intangibles included under assets from discontinued operations on the balance sheet as of December 31, 2022. |
Schedule of Estimated Amortization Expense for Other Intangible Assets | The table below presents estimated amortization expense for our other intangible assets (dollars in thousands): 2024 $ 90 2025 53 2026 40 2027 40 2028 40 Thereafter 89 $ 352 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The amount that we recognized in stock-based compensation expense related to the issuance of stock options and RSUs is presented in the following table: (Dollars in thousands) 2023 2022 2021 Stock Options $ 435 $ 501 $ 832 RSUs 2,223 2,299 1,802 Total stock-based compensation expense $ 2,658 $ 2,800 $ 2,634 |
Schedule of Stock Option Activity | The following summarizes stock options as of and for the year ended December 31, 2023: 2023 Number of Shares Weighted-Average Exercise Price Outstanding at beginning of year 942,543 $ 16.53 Granted 73,532 20.94 Exercised 107,500 15.96 Forfeited 12,850 25.25 Expired 4,980 22.43 Outstanding at end of year 890,745 $ 16.80 Exercisable at end of year 757,219 $ 15.79 Weighted-average fair value of options granted during 2023 $ 7.17 Weighted-average fair value of options granted during 2022 $ 14.94 Weighted-average fair value of options granted during 2021 $ 10.61 |
Schedule of Stock Option Valuation Assumptions | The fair value for the options was estimated at the grant date using a Black-Scholes option-pricing model with the following inputs: 2023 2022 2021 Average risk-free interest rates 4.06 % 2.23 % 1.27 % Weighted-average life (years) 7 7 7 Expected volatility 42.4 % 41.2 % 41.2 % Expected dividend yield 3.07 % 1.58 % 1.08 % |
Schedule of Outstanding and Exercisable Options Information | The following summarizes information related to the total outstanding and exercisable stock options at December 31, 2023: Options Outstanding Options Exercisable Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life Total Options Weighted-Average Exercise Price Intrinsic Value (in millions) Weighted-Average Remaining Life 890,745 $16.80 $5.6 4.07 757,219 $15.79 $5.3 3.36 |
Schedule of RSUs | A summary of the activity for our RSUs for the period indicated is presented in the following table: 2023 Shares Weighted-Average Grant Date Fair Value Balance at beginning of year 247,557 $ 26.39 Granted 224,364 17.42 Vested (130,402) 20.28 Forfeited (57,864) 18.58 Balance at end of year 283,655 $ 23.44 Weighted-average fair value of RSUs granted during 2023 $ 17.42 Weighted-average fair value of RSUs granted during 2022 $ 38.04 Weighted-average fair value of RSUs granted during 2021 $ 40.95 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | For the years ended December 31, (Dollars in thousands except shares and per share data) 2023 2022 2021 Numerator for earnings per share: Net income from continuing operations $ 22,224 $ 11,734 $ 37,838 Net loss attributable to noncontrolling interest 226 660 425 Dividends on preferred stock — — (35) Net income available to common shareholders from continuing operations 22,450 12,394 38,228 Net income from discontinued operations available to common shareholders - basic and diluted 8,782 2,653 858 Net income available to common shareholders $ 31,232 $ 15,047 $ 39,086 Denominator: Weighted-average shares outstanding - basic 12,694,206 12,279,462 11,778,557 Effect of dilutive stock options and restricted stock units 303,126 591,272 835,063 Weighted-average shares outstanding - diluted 12,997,332 12,870,734 12,613,620 Earnings per share from continuing operations - basic $ 1.77 $ 1.01 $ 3.25 Earnings per share from discontinued operations - basic $ 0.69 $ 0.22 $ 0.07 Earnings per common share - basic $ 2.46 $ 1.23 $ 3.32 Earnings per share from continuing operations - diluted $ 1.72 $ 0.96 $ 3.03 Earnings per share from discontinued operations - diluted $ 0.68 $ 0.21 $ 0.07 Earnings per common share - diluted $ 2.40 $ 1.17 $ 3.10 Instruments not included in the computation of diluted EPS because the effect would be antidilutive 364,105 113,427 93,895 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Actual Capital Amounts and Ratios | Our actual capital amounts and ratio is presented in the table below. The Bank elected to begin using the CBLR for the first quarter of 2021 and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following: ● Total assets of less than $10 billion; ● Total trading assets plus liabilities of 5% or less of consolidated assets; ● Total off-balance sheet exposures of 25% or less of consolidated assets; ● Cannot be an advanced approaches banking organization; and ● Leverage ratio greater than 9% or temporarily prescribed threshold established in response to COVID-19 . Actual Minimum Capital Requirement Minimum to be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Community Bank leverage ratio Subsidiary bank $ 348,760 10.5% $ 264,484 8.0% $ 297,544 9.0% As of December 31, 2022 Community Bank leverage ratio Subsidiary bank $ 307,936 9.8% $ 250,675 8.0% $ 282,010 9.0% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of financial instruments are summarized as follows: Fair Value Measurements at: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) December 31, 2023 Financial Assets: Cash and cash equivalents $ 398,229 $ 398,229 $ 398,229 $ — $ — Securities available-for-sale 345,275 345,275 — 319,530 25,745 Equity securities 41,086 41,086 3,590 — 37,496 Loans held-for-sale 629 629 — 629 — Loans receivable, net 2,295,470 2,230,279 — — 2,230,279 Servicing assets 0 1,768 1,799 — — 1,799 Interest rate swaps 6,249 6,249 — 6,249 — Accrued interest receivable 15,267 15,267 — 2,836 12,431 FHLB Stock 2,094 2,094 — 2,094 — Bank-owned life insurance 44,287 44,287 — 44,287 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 2,901,476 $ 2,587,246 $ — $ 2,587,246 $ — Repurchase Agreements 4,821 4,821 — 4,821 — Interest rate swaps 6,249 6,249 — 6,249 — Fair value hedge 6,111 6,111 — 6,111 — Accrued interest payable 2,385 2,385 — 2,385 — Senior term loan 6,786 6,786 — 6,786 — Subordinated debt 73,540 57,234 — 57,234 — 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 swaps 8,427 8,427 — 8,427 — Accrued interest receivable 12,617 12,617 — 2,778 9,839 Bank-owned life insurance 43,239 43,239 — 43,239 — Embedded derivative 787 787 — — 787 Financial liabilities: Deposits $ 2,570,482 $ 2,226,037 $ — $ 2,226,037 $ — Repurchase agreements 10,037 10,037 — 10,037 — FHLB and other borrowings 102,333 102,006 — 102,006 — Fair value hedges 572 572 — 572 Interest rate swaps 8,427 8,427 — 8,427 — Accrued interest payable 2,558 2,558 — 2,558 — 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized and unrealized income (loss) included in earnings 47 (139) (92) Purchase of securities 246 — 246 Maturities/calls (18,294) — (18,294) Unrealized gain included in other comprehensive loss 903 — 903 Balance at December 31, 2023 $ 18,245 $ 648 $ 18,893 Balance at December 31, 2021 $ 41,763 $ — $ 41,763 Realized and unrealized gains included in earnings 9 — 9 Purchase of securities 1,048 — 1,048 Maturities/calls (3,207) — (3,207) Unrealized loss included in other comprehensive loss (4,270) — (4,270) Host contract executed — 787 787 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 |
Schedule of Equity Securities without Readily Determinable Fair Value | The carrying amount of equity securities without a readily determinable fair value and amounts of unrealized gains and losses recognized in earnings as of December 31, 2023 and 2022 are included in the table below: (Dollars in thousands) Cumulative Adjustments Annual Adjustments December 31, 2023 Carrying value $ 37,496 $ 37,496 Carrying value adjustments: Upward changes for observable prices 18,038 671 Downward changes for observable prices (2,014) (250) Net gain $ 16,024 $ 421 December 31, 2022 Carrying value $ 33,362 $ 33,362 Carrying value adjustments: Upward changes for observable prices 17,367 203 Downward changes for observable prices (1,764) (1,652) Net gain (loss) $ 15,603 $ (1,449) |
Schedule of Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value | The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2023 and 2022: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2023 Nonrecurring measurements: Collateral-dependent loans $ 2,891 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 825 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 $ 37,496 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 18,245 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% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 Nonrecurring measurements: Impaired loans $ 14,117 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other real estate owned $ 1,194 Appraisal of collateral 1 Appraisal adjustments 2 0% - 20% Liquidation expense 2 6% Other debt securities $ 7,500 Net asset value Cost, 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 which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted-average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Recurring | |
Fair value of assets and liabilities | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 38,408 $ — $ 38,408 United States sponsored mortgage-backed securities — 82,382 — 82,382 United States treasury securities — 100,356 — 100,356 Municipal securities — 88,662 18,245 106,907 Corporate debt securities — 8,942 — 8,942 Other securities — 780 — 780 Equity securities 3,590 — — 3,590 Loans held-for-sale — 629 — 629 Interest rate swaps — 6,249 — 6,249 Bank-owned life insurance — 44,287 — 44,287 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 6,249 — 6,249 Fair value hedge — 6,111 — 6,111 December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 44,814 $ — $ 44,814 United States sponsored mortgage-backed securities — 56,571 — 56,571 United States treasury securities — 120,909 — 120,909 Municipal securities — 103,293 35,343 138,636 Corporate debt securities — 10,560 — 10,560 Other securities — 824 — 824 Equity securities 5,382 — — 5,382 Loans held-for-sale 24,898 — 24,898 Interest rate swaps — 8,427 — 8,427 Bank-owned life insurance — 43,239 — 43,239 Embedded derivative — — 787 787 Liabilities: Interest rate swaps — 8,427 — 8,427 Fair value hedge — 572 — 572 |
Non-recurring | |
Fair value of assets and liabilities | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | Assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 are included in the table below: December 31, 2023 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans — — 2,891 2,891 Other real estate owned — — 825 825 Other debt securities — — 7,500 7,500 Equity securities — — 37,496 37,496 December 31, 2022 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent 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 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet Location Amortized Cost Basis Hedged Asset Basis Adjustment Amortized Cost Basis Hedged Asset Basis Adjustment Fixed rate mortgages Loans receivable $ 491,018 $ 390,297 $ 4,055 $ — $ — $ — Fixed rate bonds Investment securities available-for-sale 59,270 50,000 1,570 11,059 10,885 (244) Total hedged assets $ 550,288 $ 440,297 $ 5,625 $ 11,059 $ 10,885 $ (244) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables summarize outstanding financial derivative instruments as of December 31, 2023 and December 31, 2022: December 31, 2023 (Dollars in thousands) Balance Sheet Location Notional Amount Fair Value of Asset (Liability) Gain (Loss) Fair value hedge of interest rate risk: Pay fixed rate swaps with counterparty Accrued interest receivable and other assets $ 440,297 $ (6,111) $ (6,111) Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 126,494 6,249 6,249 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 126,494 (6,249) (6,249) Total derivatives $ 693,285 $ (6,111) $ (6,111) December 31, 2022 (Dollars in thousands) Balance Sheet Location Notional Amount Fair Value of Asset (Liability) Gain (Loss) Fair value hedge of interest rate risk: Pay fixed rate swaps with counterparty Accrued interest receivable and other assets $ 10,885 $ 578 $ 578 Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 137,739 8,427 8,427 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 137,739 (8,427) (8,427) Total derivatives $ 286,363 $ 578 $ 578 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Reclassification Out of Accumulated Other Comprehensive Income | The following tables present the components of accumulated other comprehensive income (“AOCI”) for the years ended December 31: (Dollars in thousands) 2023 2022 2021 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Consolidated Statement of Income Line Item Available-for-sale securities Unrealized holding gain (loss) $ (1,536) $ 650 $ 3,875 Gain (loss) on sale of available-for-sale securities (1,536) 650 3,875 Total before tax 369 (152) (908) Income tax expense (1,167) 498 2,967 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (117) (429) (507) Salaries and employee benefits (117) (429) (507) Total before tax 28 103 119 Income tax benefit (89) (326) (388) Net of tax Investment hedge Carrying value adjustment 289 83 (862) Interest on investment securities 289 83 (862) Total before tax (69) (21) 233 Income tax benefit (expense) 220 62 (629) Net of tax Total reclassifications $ (1,036) $ 234 $ 1,950 |
Schedule of Components of Accumulated Other Comprehensive Income | (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment Hedge Total Balance at January 1, 2023 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 7,791 46 — 7,837 Amounts reclassified from AOCI 1,167 89 (220) 1,036 Net current period OCI 8,958 135 (220) 8,873 Balance at December 31, 2023 $ (25,871) $ (2,994) $ 34 $ (28,831) Balance at January 1, 2022 $ 147 $ (4,069) $ 316 $ (3,606) Other comprehensive income (loss) before reclassification (34,478) 614 — (33,864) Amounts reclassified from AOCI (498) 326 (62) (234) Net current period OCI (34,976) 940 (62) (34,098) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets December 31, (Dollars in thousands) 2023 2022 Assets Cash $ 8,590 $ 31,085 Investment in subsidiaries 319,504 277,173 Debt and equity securities 2,400 4,904 Equity method investments 54,199 50,976 Other assets 14,835 11,033 Total assets $ 399,528 $ 375,171 Liabilities and stockholders’ equity Other liabilities $ 29,818 $ 31,036 Senior term loan 6,786 9,765 Subordinated debt 73,540 73,286 Total liabilities 110,144 114,087 Total stockholders’ equity 289,384 261,084 Total liabilities and stockholders’ equity $ 399,528 $ 375,171 |
Schedule of Condensed Statements of Income | Condensed Statements of Income Year ended December 31, (Dollars in thousands) 2023 2022 2021 Income, dividends from the Bank $ 23,014 $ 50,985 $ 19,165 Operating expenses 27,002 27,774 22,458 Income (loss), before income taxes (3,988) 23,211 (3,293) Income taxes (4,050) (3,450) (2,090) Net income (loss) 62 26,661 (1,203) Equity in undistributed income earnings of subsidiaries 31,170 (11,614) 40,324 Net income $ 31,232 $ 15,047 $ 39,121 Preferred dividends $ — $ — $ 35 Net income available to common shareholders $ 31,232 $ 15,047 $ 39,086 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in thousands) 2023 2022 2021 OPERATING ACTIVITIES Net income $ 31,232 $ 15,047 $ 39,121 Equity in undistributed earnings of subsidiaries (31,170) 11,614 (40,324) Stock-based compensation 3,392 3,217 3,208 Depreciation and amortization 305 269 175 Other assets (11,638) (45,406) (6,849) Other liabilities (2,887) 16,358 11,215 Net cash from operating activities (10,766) 1,099 6,546 INVESTING ACTIVITIES Investment in subsidiaries 150 (240) (15,871) Net cash from investing activities 150 (240) (15,871) FINANCING ACTIVITIES Issuance of senior term loan, net of issuance costs — 9,877 — Issuance of subordinated debt, net of issuance costs — — 29,448 Preferred stock redemption — — (7,334) Stock option exercise proceeds 637 2,069 4,930 Withholding cash issued in lieu of restricted stock (847) (670) (249) Issuance of subsidiary membership units — — 500 Principal payments on senior term loan (3,030) (125) — Stock purchase from noncontrolling interest — (33) — Cash dividends paid on common stock (8,639) (8,355) (6,038) Cash dividends paid on preferred stock — — (35) Net cash from financing activities (11,879) 2,763 21,222 Net change in cash (22,495) 3,622 11,897 Cash at beginning of period 31,085 27,463 15,566 Cash at end of period $ 8,590 $ 31,085 $ 27,463 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2023, 2022 and 2021 are as follows: 2023 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 189,498 $ 416 $ 41 $ — $ (137) $ 189,818 Interest expense $ 62,507 $ — $ 3,985 $ 180 $ (137) $ 66,535 Net interest income (expense) $ 126,991 $ 416 $ (3,944) $ (180) $ — $ 123,283 Release of allowance for credit losses $ (1,921) $ — $ — $ — $ — $ (1,921) Net interest income (expense) after release of allowance for credit losses $ 128,912 $ 416 $ (3,944) $ (180) $ — $ 125,204 Noninterest income $ 17,286 $ (2,486) $ 10,453 $ 9,138 $ (14,676) $ 19,715 Noninterest Expenses: Salaries and employee benefits $ 37,265 $ 7 $ 17,041 $ 9,058 $ — $ 63,371 Other expenses $ 53,221 $ 65 $ 8,233 $ 7,411 $ (14,676) $ 54,254 Total noninterest expenses $ 90,486 $ 72 $ 25,274 $ 16,469 $ (14,676) $ 117,625 Income (loss) before income taxes 55,712 (2,142) (18,765) (7,511) — 27,294 Income taxes 12,342 (557) (4,923) (1,792) — 5,070 Net income (loss) from continuing operations 43,370 (1,585) (13,842) (5,719) — 22,224 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income tax expense - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss) 43,370 (1,585) (13,842) 3,063 — 31,006 Net loss attributable to noncontrolling interest — — — 226 — 226 Net income (loss) available to common shareholders $ 43,370 $ (1,585) $ (13,842) $ 3,289 $ — $ 31,232 Capital expenditures for the year ended December 31, 2023 $ 914 $ — $ 58 $ 943 $ — $ 1,915 Total assets as of December 31, 2023 $ 3,255,369 $ 83,909 $ 345,314 $ 17,728 $ (388,438) $ 3,313,882 Goodwill as of December 31, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 2022 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 125,426 $ 429 $ 146 $ — $ (44) $ 125,957 Interest expense 10,920 — 3,234 44 (44) 14,154 Net interest income (expense) 114,506 429 (3,088) (44) — 111,803 Provision for loan losses 14,194 — — — — 14,194 Net interest income (expense) after provision for loan losses 100,312 429 (3,088) (44) — 97,609 Noninterest income 22,673 37 10,576 6,120 (11,841) 27,565 Noninterest expenses: Salaries and employee benefits 36,960 8 16,582 8,984 — 62,534 Other expenses 44,873 142 8,049 6,389 (11,841) 47,612 Total noninterest expenses 81,833 150 24,631 15,373 (11,841) 110,146 Income (loss) before income taxes 41,152 316 (17,143) (9,297) — 15,028 Income taxes 8,882 77 (3,472) (2,193) — 3,294 Net income (loss) from continuing operations 32,270 239 (13,671) (7,104) — 11,734 Income from discontinued operations before income taxes — — — 3,487 — 3,487 Income tax expense - discontinued operations — — — 834 — 834 Net income from discontinued operations — — — 2,653 — 2,653 Net income (loss) 32,270 239 (13,671) (4,451) — 14,387 Net loss attributable to noncontrolling interest — — — 660 — 660 Net income (loss) available to common shareholders $ 32,270 $ 239 $ (13,671) $ (3,791) $ — $ 15,047 Capital expenditures for the year ended December 31, 2022 $ 400 $ — $ 413 $ 2,228 $ — $ 3,041 Total assets as of December 31, 2022 $ 3,014,475 $ 34,248 $ 375,171 $ 27,075 $ (382,119) $ 3,068,850 Goodwill as of December 31, 2022 $ — $ — $ — $ 2,838 $ — $ 2,838 2021 (Dollars in thousands) CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated Interest income $ 83,023 $ 411 $ 15 $ (8) $ (12) $ 83,429 Interest expense 4,078 — 2,188 16 (12) 6,270 Net interest income (expense) 78,945 411 (2,173) (24) — 77,159 Provision for loan losses (6,274) (1) — — — (6,275) Net interest income (expense) after provision for loan losses 85,219 412 (2,173) (24) — 83,434 Noninterest income 33,179 16,342 11,103 3,575 (8,346) 55,853 Noninterest Expenses: Salaries and employee benefits 33,595 — 13,704 5,666 — 52,965 Other expenses 37,033 16 6,573 3,567 (8,346) 38,843 Total noninterest expenses 70,628 16 20,277 9,233 (8,346) 91,808 Income (loss) before income taxes 47,770 16,738 (11,347) (5,682) — 47,479 Income taxes 9,154 4,068 (2,091) (1,490) — 9,641 Net income (loss) from continuing operations 38,616 12,670 (9,256) (4,192) — 37,838 Income from discontinued operations before income taxes — — — 1,099 — 1,099 Income tax expense - discontinued operations — — — 241 — 241 Net income from discontinued operations — — — 858 — 858 Net income (loss) 38,616 12,670 (9,256) (3,334) — 38,696 Net loss attributable to noncontrolling interest — — — 425 — 425 Net income (loss) attributable to parent $ 38,616 $ 12,670 $ (9,256) $ (2,909) $ — $ 39,121 Preferred stock dividends — — 35 — — 35 Net income (loss) available to common shareholders $ 38,616 $ 12,670 $ (9,291) $ (2,909) $ — $ 39,086 Capital expenditures for the year ended December 31, 2021 $ 2,590 $ — $ 43 $ 2,731 $ — $ 5,364 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2023 First quarter $ 44,763 $ 32,729 $ 14,734 $ 11,342 $ 0.90 $ 0.87 Second quarter 47,031 29,582 9,954 8,112 0.64 0.63 Third quarter 48,325 29,865 5,090 3,867 0.30 0.29 Fourth quarter 49,699 31,107 9,347 7,911 0.62 0.61 Earnings Per Share (Dollars in thousands) Interest Income Net Interest Income Income Before Taxes Net Income Basic Diluted 2022 First quarter $ 23,262 $ 21,848 $ 3,576 $ 2,864 $ 0.24 $ 0.22 Second quarter 28,090 26,660 3,650 2,956 0.24 0.23 Third quarter 33,903 29,846 2,952 2,718 0.22 0.21 Fourth quarter 40,702 33,449 8,337 6,509 0.52 0.50 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule 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: Twelve Months Ended December 31, (Dollars in thousands) 2023 2022 2021 Compliance consulting income $ 2,369 $ 17,151 $ 11,427 Gain on sale of discontinued operations 11,800 — — Total income $ 14,169 $ 17,151 $ 11,427 Salaries and employee benefits $ 2,082 $ 9,628 $ 7,245 Other expenses 256 4,036 3,083 Total expenses $ 2,338 $ 13,664 $ 10,328 Income before income taxes $ 11,831 $ 3,487 $ 1,099 Income taxes 3,049 834 241 Net income from discontinued operations $ 8,782 $ 2,653 $ 858 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Jan. 01, 2023 USD ($) | Dec. 31, 2023 USD ($) valuationMethod segment investment $ / shares | Dec. 31, 2022 USD ($) $ / shares | |
Summary of Significant Accounting Policies [Line Items] | |||
Number of equity method investments | investment | 3 | ||
Restricted cash | $ 0 | $ 0 | |
Period past due for loans to be considered as delinquent | 90 days | ||
Total valuation methods used on impaired loans | valuationMethod | 2 | ||
Total loans serviced for others | $ 1,800,000 | 1,600,000 | |
Deferred income tax valuation allowance | 0 | ||
Liability for uncertain tax positions | 0 | ||
Unrecognized tax benefits | $ 0 | ||
Number of reportable segments | segment | 3 | ||
Adjustment to retained earnings | $ (160,862,000) | (144,911,000) | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Summary of Significant Accounting Policies [Line Items] | |||
Increase in allowance for credit losses | $ 10,000,000 | ||
Increase related to PCD financial assets | 1,200,000 | ||
Tax effect | 2,100,000 | ||
Adjustment to retained earnings | 6,600,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Loans | |||
Summary of Significant Accounting Policies [Line Items] | |||
Increase in allowance for credit losses | 8,900,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | |||
Summary of Significant Accounting Policies [Line Items] | |||
Increase in allowance for credit losses | $ 1,100,000 | ||
Software | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum | Building | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 7 years | ||
Minimum | Furniture, fixtures and equipment | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum | Building | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 40 years | ||
Maximum | Furniture, fixtures and equipment | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Subsidiary bank | |||
Summary of Significant Accounting Policies [Line Items] | |||
FHLB stock | $ 2,100,000 | $ 10,000,000 | |
FHLB stock par value (in dollars per share) | $ / shares | $ 100 | $ 100 | |
Trabian | |||
Summary of Significant Accounting Policies [Line Items] | |||
Ownership interest | 80.80% |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Investment Securities Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | $ 377,764 | $ 427,128 |
Unrealized Gain | 1,000 | 2,485 |
Unrealized Loss | (33,489) | (49,799) |
Investment securities available-for-sale | 345,275 | 379,814 |
Total debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 376,984 | 426,304 |
Unrealized Gain | 1,000 | 2,485 |
Unrealized Loss | (33,489) | (49,799) |
Investment securities available-for-sale | 344,495 | 378,990 |
United States government agency securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 44,003 | 51,436 |
Unrealized Gain | 8 | 15 |
Unrealized Loss | (5,603) | (6,637) |
Investment securities available-for-sale | 38,408 | 44,814 |
United States sponsored mortgage-backed securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 91,939 | 68,267 |
Unrealized Gain | 992 | 0 |
Unrealized Loss | (10,549) | (11,696) |
Investment securities available-for-sale | 82,382 | 56,571 |
United States treasury securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 106,401 | 130,689 |
Unrealized Gain | 0 | 48 |
Unrealized Loss | (6,045) | (9,828) |
Investment securities available-for-sale | 100,356 | 120,909 |
Municipal securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 118,065 | 157,842 |
Unrealized Gain | 0 | 2,412 |
Unrealized Loss | (11,158) | (21,618) |
Investment securities available-for-sale | 106,907 | 138,636 |
Corporate debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 9,076 | 10,570 |
Unrealized Gain | 0 | 10 |
Unrealized Loss | (134) | (20) |
Investment securities available-for-sale | 8,942 | 10,560 |
Other debt securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 7,500 | 7,500 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Investment securities available-for-sale | 7,500 | 7,500 |
Other securities | ||
Amortized cost and fair values of investment securities available-for-sale | ||
Amortized Cost | 780 | 824 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Investment securities available-for-sale | $ 780 | $ 824 |
Investment Securities - Schedul
Investment Securities - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized Cost | $ 377,764 | $ 427,128 |
Fair Value | ||
Fair Value | 345,275 | 379,814 |
Total debt securities | ||
Amortized Cost | ||
Within one year | 4,785 | |
After one year, but within five years | 112,009 | |
After five years, but within ten years | 41,860 | |
After ten years | 218,330 | |
Amortized Cost | 376,984 | 426,304 |
Fair Value | ||
Within one year | 4,783 | |
After one year, but within five years | 105,897 | |
After five years, but within ten years | 37,866 | |
After ten years | 195,949 | |
Fair Value | $ 344,495 | $ 378,990 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Amortized cost | $ 377,764,000 | $ 427,128,000 |
Amount of pretax loss if securities in an unrealized loss position are sold | 33,500,000 | |
Allowance for credit losses, continuous unrealized loss position | 0 | |
Asset Pledged as Collateral | Public Funds, Repurchase Agreements, and Potential Borrowings | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost | $ 223,400,000 | $ 91,300,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Unrealized Loss Positions (Details) $ in Thousands | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 3,172 | $ 108,486 |
Less than 12 months, unrealized loss | (77) | (10,446) |
12 months or more, fair value | 293,311 | 212,317 |
12 months or more, unrealized loss | $ (33,412) | $ (39,353) |
United States government agency securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 25 | 32 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 316 | $ 21,287 |
Less than 12 months, unrealized loss | 0 | (1,937) |
12 months or more, fair value | 34,619 | 19,423 |
12 months or more, unrealized loss | $ (5,603) | $ (4,700) |
United States sponsored mortgage-backed securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 47 | 51 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | $ 6,953 |
Less than 12 months, unrealized loss | 0 | (852) |
12 months or more, fair value | 50,345 | 49,618 |
12 months or more, unrealized loss | $ (10,549) | $ (10,844) |
United States treasury securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 23 | 29 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | $ 11,936 |
Less than 12 months, unrealized loss | 0 | (130) |
12 months or more, fair value | 100,354 | 102,092 |
12 months or more, unrealized loss | $ (6,045) | $ (9,698) |
Municipal securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 216 | 173 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 847 | $ 65,930 |
Less than 12 months, unrealized loss | (10) | (7,507) |
12 months or more, fair value | 106,060 | 41,184 |
12 months or more, unrealized loss | $ (11,148) | $ (14,111) |
Corporate debt securities | ||
Description and number of positions | ||
Number of investments in an unrealized loss position, AFS | loan | 7 | 3 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 2,009 | $ 2,380 |
Less than 12 months, unrealized loss | (67) | (20) |
12 months or more, fair value | 1,933 | 0 |
12 months or more, unrealized loss | $ (67) | $ 0 |
Investment Securities - Gains (
Investment Securities - Gains (losses) on sales of investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Sales of available-for-sale investment securities | $ 54,531 | $ 60,635 | $ 146,011 |
Gains, gross | 0 | 717 | 3,944 |
Losses, gross | (1,536) | (67) | (69) |
Proceeds from sales of equity securities | 566 | 1,356 | 543 |
Gains, gross | 25 | 158 | 5 |
Losses, gross | (294) | (214) | 0 |
Unrealized holding gains (losses) on equity securities | $ 146 | $ (1,543) | $ 3,776 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loan Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Components of loans | ||
Total loans, excluding PCI | $ 2,316,174 | $ 2,368,180 |
Total purchased credit impaired loans | 2,354,802 | |
Total loans | 2,316,174 | 2,370,662 |
Deferred loan origination costs, net of fees | 1,420 | 1,983 |
Loans receivable | 2,317,594 | 2,372,645 |
Purchased credit impaired loans | ||
Components of loans | ||
Total purchased credit impaired loans | 0 | 2,482 |
Total commercial | ||
Components of loans | ||
Total loans, excluding PCI | 1,601,688 | 1,610,910 |
Total purchased credit impaired loans | 1,599,094 | |
Total loans | 1,601,688 | 1,610,910 |
Total commercial | Business | ||
Components of loans | ||
Total loans, excluding PCI | 797,100 | 851,072 |
Total purchased credit impaired loans | 840,621 | |
Total loans | 797,100 | 851,072 |
Total commercial | Real estate | ||
Components of loans | ||
Total loans, excluding PCI | 670,584 | 632,839 |
Total purchased credit impaired loans | 631,474 | |
Total loans | 670,584 | 632,839 |
Total commercial | Acquisition, development and construction | ||
Components of loans | ||
Total loans, excluding PCI | 134,004 | 126,999 |
Total purchased credit impaired loans | 126,999 | |
Total loans | 134,004 | 126,999 |
Residential real estate | ||
Components of loans | ||
Total loans, excluding PCI | 672,547 | 606,970 |
Total purchased credit impaired loans | 606,849 | |
Total loans | 672,547 | 609,452 |
Residential real estate | Purchased credit impaired loans | ||
Components of loans | ||
Total purchased credit impaired loans | 0 | 2,482 |
Home equity lines of credit | ||
Components of loans | ||
Total loans, excluding PCI | 14,531 | 18,734 |
Total purchased credit impaired loans | 18,644 | |
Total loans | 14,531 | 18,734 |
Consumer | ||
Components of loans | ||
Total loans, excluding PCI | 27,408 | 131,566 |
Total purchased credit impaired loans | 130,215 | |
Total loans | $ 27,408 | $ 131,566 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loan category Category borrower | Dec. 31, 2022 USD ($) loan property borrower | Dec. 31, 2021 USD ($) | |
Activity in the allowance for loan losses: | |||
Servicing asset | $ 184,300,000 | $ 164,100,000 | |
Foreclosed properties held | $ 800,000 | $ 1,200,000 | |
Number foreclosed properties held | property | 5 | ||
Number of additional collateralized loans in the process of foreclosure | loan | 10 | ||
Investment in loans in the process of foreclosure | $ 2,100,000 | ||
Number of points in internal risk rating system | category | 9 | ||
Number of categories in internal risk rating system considered as not criticized | Category | 6 | ||
Commercial relationship credit review threshold amount | $ 1,000,000 | ||
Total impaired loans, recorded investment | 11,800,000 | 18,247,000 | |
Impaired loans with specific allowance, related allowance | 1,900,000 | 1,743,000 | |
Provision (release of allowance) for credit losses | (1,921,000) | 14,194,000 | $ (6,275,000) |
Total loans modified in period | 22,192,000 | ||
Specific reserve allocations for TDR's | 400,000 | ||
Troubled debt restructuring loans | 10,400,000 | ||
Loans defaulted under the restructured terms | $ 2,634,000 | ||
Payment Delay | |||
Activity in the allowance for loan losses: | |||
Number of loans modified in period | loan | 18 | ||
Number of borrowers with modified loans | borrower | 17 | ||
Total loans modified in period | $ 19,736,000 | ||
Loans defaulted under the restructured terms | $ 2,634,000 | ||
Minimum | |||
Activity in the allowance for loan losses: | |||
Percentage of commercial outstanding loan balances | 40% | ||
Maximum | |||
Activity in the allowance for loan losses: | |||
Percentage of commercial outstanding loan balances | 45% | ||
Accruing | |||
Activity in the allowance for loan losses: | |||
Troubled debt restructuring loans | $ 4,700,000 | ||
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | |||
Activity in the allowance for loan losses: | |||
Percentage of total impaired loans | 45% | ||
Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | $ 5,490,000 | ||
Acquisition, development and construction | |||
Activity in the allowance for loan losses: | |||
Loans defaulted under the restructured terms | $ 5,700,000 | ||
Number of loans to defaulted borrowers | loan | 9 | ||
Number of borrowers defaulted | borrower | 7 | ||
Acquisition, development and construction | Commercial Borrower One | |||
Activity in the allowance for loan losses: | |||
Loans defaulted under the restructured terms | $ 1,900,000 | ||
Acquisition, development and construction | Commercial Borrower Three | |||
Activity in the allowance for loan losses: | |||
Loans defaulted under the restructured terms | 3,100,000 | ||
Acquisition, development and construction | Commercial Borrowers Four through Seven | |||
Activity in the allowance for loan losses: | |||
Loans defaulted under the restructured terms | 200,000 | ||
Restructured Equipment Loan | Commercial Borrower Two | |||
Activity in the allowance for loan losses: | |||
Loans defaulted under the restructured terms | 500,000 | ||
Unfunded Loan Commitment | |||
Activity in the allowance for loan losses: | |||
Provision (release of allowance) for credit losses | $ (600,000) | 0 | $ 0 |
Residential real estate | |||
Activity in the allowance for loan losses: | |||
Foreclosed properties held | $ 200,000 | ||
Number foreclosed properties held | loan | 0 | ||
Increase (decrease) in impaired loans (percentage) | 16.70% | ||
Total impaired loans, recorded investment | $ 3,098,000 | ||
Impaired loans with specific allowance, related allowance | $ 0 | ||
Total loans modified in period | $ 0 | ||
Loans defaulted under the restructured terms | 0 | ||
Residential real estate | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Total loans modified in period | 0 | ||
Loans defaulted under the restructured terms | 0 | ||
Residential real estate | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | $ 0 | ||
Total Commercial | |||
Activity in the allowance for loan losses: | |||
Number foreclosed properties held | loan | 2,000,000 | ||
Increase (decrease) in impaired loans (percentage) | 83.30% | ||
Total impaired loans, recorded investment | $ 13,708,000 | ||
Impaired loans with specific allowance, related allowance | 1,475,000 | ||
Total loans modified in period | $ 22,192,000 | ||
Loans defaulted under the restructured terms | 2,634,000 | ||
Total Commercial | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Total loans modified in period | 19,736,000 | ||
Loans defaulted under the restructured terms | 2,634,000 | ||
Total Commercial | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | 5,490,000 | ||
Total Commercial | Real estate | |||
Activity in the allowance for loan losses: | |||
Total impaired loans, recorded investment | 1,786,000 | ||
Impaired loans with specific allowance, related allowance | 222,000 | ||
Total loans modified in period | 12,903,000 | ||
Loans defaulted under the restructured terms | 0 | ||
Total Commercial | Real estate | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Total loans modified in period | 11,201,000 | ||
Loans defaulted under the restructured terms | 0 | ||
Total Commercial | Real estate | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | 0 | ||
Total Commercial | Business | |||
Activity in the allowance for loan losses: | |||
Total impaired loans, recorded investment | 11,922,000 | ||
Impaired loans with specific allowance, related allowance | 1,253,000 | ||
Total loans modified in period | $ 8,535,000 | ||
Number of modified loans, subsequent default | loan | 2,000,000 | ||
Loans defaulted under the restructured terms | $ 2,634,000 | ||
Total Commercial | Business | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Number of loans modified in period | loan | 1 | ||
Total loans modified in period | $ 8,535,000 | ||
Loans defaulted under the restructured terms | $ 2,634,000 | ||
Total Commercial | Business | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Number of past due modified loans | loan | 8 | ||
Amortized costs basis modified, past due | $ 5,490,000 | ||
Total Commercial | Business | Accounts Receivable | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Number of loans modified in period | loan | 1 | ||
Total loans modified in period | $ 200,000 | ||
Total Commercial | Business | Equipment | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Number of past due modified loans | loan | 3,000,000 | ||
Amortized costs basis modified, past due | $ 1,700,000 | ||
Total Commercial | Business | Government-Guaranteed Collateral | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Number of loans modified in period | loan | 16 | ||
Total loans modified in period | $ 8,300,000 | ||
Total Commercial | Business | Government-Guaranteed Collateral | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Number of past due modified loans | loan | 5,000,000 | ||
Amortized costs basis modified, past due | $ 3,800,000 | ||
Total Commercial | Acquisition, development and construction | |||
Activity in the allowance for loan losses: | |||
Total impaired loans, recorded investment | 0 | ||
Impaired loans with specific allowance, related allowance | $ 0 | ||
Total loans modified in period | 754,000 | ||
Total Commercial | Acquisition, development and construction | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Total loans modified in period | 0 | ||
Total Commercial | Acquisition, development and construction | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | 0 | ||
Consumer | |||
Activity in the allowance for loan losses: | |||
Number of additional collateralized loans in the process of foreclosure | property | 3 | ||
Investment in loans in the process of foreclosure | $ 1,000,000 | ||
Total impaired loans, recorded investment | 1,351,000 | ||
Impaired loans with specific allowance, related allowance | $ 268,000 | ||
Total loans modified in period | 0 | ||
Loans defaulted under the restructured terms | 0 | ||
Consumer | Payment Delay | |||
Activity in the allowance for loan losses: | |||
Total loans modified in period | 0 | ||
Loans defaulted under the restructured terms | 0 | ||
Consumer | Total Past Due | |||
Activity in the allowance for loan losses: | |||
Amortized costs basis modified, past due | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Impaired loans by class | |||
Impaired loans with specific allowance, recorded investment | $ 6,023 | ||
Impaired loans with specific allowance, related allowance | 1,743 | $ 1,900 | |
Impaired loans with no specific allowance, recorded investment | 12,224 | ||
Total impaired loans, recorded investment | 18,247 | 11,800 | |
Total impaired loans, unpaid principal balance | 24,712 | ||
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 22,549 | $ 16,210 | |
Interest Income Recognized on Accrual Basis | 80 | 75 | |
Interest Income Recognized on Cash Basis | 80 | 57 | |
Individually evaluated for impairment | 15,860 | 4,534 | |
Collateral value | 3,567 | ||
Individually evaluated for impairment | 1,743 | 475 | 1,643 |
Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 424 | ||
Collateral value | 301 | ||
Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 2,621 | ||
Collateral value | 2,040 | ||
Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Collateral value | 0 | ||
Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 452 | ||
Collateral value | 906 | ||
Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 1,037 | ||
Collateral value | 320 | ||
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 | 9,032 | ||
Total impaired loans, recorded investment | 13,708 | ||
Total impaired loans, unpaid principal balance | 20,101 | ||
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 14,533 | 10,096 | |
Interest Income Recognized on Accrual Basis | 65 | 60 | |
Interest Income Recognized on Cash Basis | 65 | 43 | |
Individually evaluated for impairment | 11,816 | 4,190 | |
Individually evaluated for impairment | 1,475 | 475 | 1,583 |
Total Commercial | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 424 | ||
Total Commercial | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 2,277 | ||
Total Commercial | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 452 | ||
Total Commercial | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 1,037 | ||
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 | 8,486 | ||
Total impaired loans, recorded investment | 11,922 | ||
Total impaired loans, unpaid principal balance | 16,795 | ||
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 12,781 | 7,701 | |
Interest Income Recognized on Accrual Basis | 8 | 0 | |
Interest Income Recognized on Cash Basis | 6 | 0 | |
Individually evaluated for impairment | 10,451 | 4,190 | |
Individually evaluated for impairment | 1,253 | 232 | 1,583 |
Total Commercial | Business | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 424 | ||
Total Commercial | Business | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 2,277 | ||
Total Commercial | Business | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Business | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 452 | ||
Total Commercial | Business | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 1,037 | ||
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 | 546 | ||
Total impaired loans, recorded investment | 1,786 | ||
Total impaired loans, unpaid principal balance | 1,891 | ||
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 1,479 | 2,051 | |
Interest Income Recognized on Accrual Basis | 57 | 60 | |
Interest Income Recognized on Cash Basis | 59 | 43 | |
Individually evaluated for impairment | 1,365 | 0 | |
Individually evaluated for impairment | 222 | 243 | 0 |
Total Commercial | Real estate | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Real estate | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Real estate | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Real estate | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Real estate | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
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 | 273 | 344 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Individually evaluated for impairment | 0 | 0 | |
Individually evaluated for impairment | 0 | 0 | 0 |
Total Commercial | Acquisition, development and construction | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Acquisition, development and construction | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Acquisition, development and construction | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Acquisition, development and construction | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Total Commercial | Acquisition, development and construction | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Residential | |||
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 | 3,098 | ||
Total impaired loans, recorded investment | 3,098 | ||
Total impaired loans, unpaid principal balance | 3,166 | ||
Average recorded investment in impaired loans and related interest income recognized | |||
Average Investment in Impaired Loans | 6,952 | 5,992 | |
Interest Income Recognized on Accrual Basis | 15 | 15 | |
Interest Income Recognized on Cash Basis | 15 | 14 | |
Individually evaluated for impairment | 2,603 | 0 | |
Individually evaluated for impairment | 0 | 0 | 0 |
Residential | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Residential | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Residential | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Residential | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Residential | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Home equity lines of credit | |||
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 | 149 | 81 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Individually evaluated for impairment | 90 | 0 | |
Individually evaluated for impairment | 0 | 0 | 0 |
Home equity lines of credit | Real Estate | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Home equity lines of credit | Vehicles and Equipment | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Home equity lines of credit | Assignment of Cash Flow | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Home equity lines of credit | Accounts Receivable | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 0 | ||
Home equity lines of credit | Other | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Individually evaluated for impairment | 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 | 915 | 41 | |
Interest Income Recognized on Accrual Basis | 0 | 0 | |
Interest Income Recognized on Cash Basis | 0 | 0 | |
Individually evaluated for impairment | 1,351 | 344 | |
Individually evaluated for impairment | $ 268 | $ 0 | 60 |
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 | 344 | ||
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_6
Loans and Allowance for Credit Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total commercial business loans | |||
2023 | $ 301,566 | ||
2022 | 927,564 | ||
2021 | 459,305 | ||
2020 | 143,841 | ||
2019 | 96,656 | ||
Prior | 256,790 | ||
Revolving Loans Amortized Cost Basis | 130,452 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 2,316,174 | $ 2,370,662 | |
Gross charge-offs | |||
2023 | 1,144 | ||
2022 | 10,836 | ||
2021 | 3,003 | ||
2020 | 141 | ||
2019 | 19 | ||
Prior | 3,336 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 18,479 | 15,183 | $ 1,619 |
Total Commercial | |||
Total commercial business loans | |||
Total loans | 1,601,688 | 1,610,910 | |
Gross charge-offs | |||
Total | 4,572 | 2,858 | 1,367 |
Total Commercial | Business | |||
Total commercial business loans | |||
2023 | 177,667 | ||
2022 | 286,617 | ||
2021 | 93,739 | ||
2020 | 66,058 | ||
2019 | 55,744 | ||
Prior | 96,960 | ||
Revolving Loans Amortized Cost Basis | 20,315 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 797,100 | 851,072 | |
Gross charge-offs | |||
2023 | 0 | ||
2022 | 228 | ||
2021 | 1,250 | ||
2020 | 141 | ||
2019 | 0 | ||
Prior | 2,953 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 4,572 | 2,858 | 1,284 |
Total Commercial | Real estate | |||
Total commercial business loans | |||
2023 | 80,553 | ||
2022 | 149,189 | ||
2021 | 213,612 | ||
2020 | 11,952 | ||
2019 | 32,517 | ||
Prior | 131,522 | ||
Revolving Loans Amortized Cost Basis | 51,239 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 670,584 | 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 | 83 |
Total Commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2023 | 6,546 | ||
2022 | 54,170 | ||
2021 | 44,187 | ||
2020 | 22,041 | ||
2019 | 0 | ||
Prior | 2,237 | ||
Revolving Loans Amortized Cost Basis | 4,823 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 134,004 | 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 |
Residential real estate | |||
Total commercial business loans | |||
2023 | 33,867 | ||
2022 | 414,454 | ||
2021 | 100,177 | ||
2020 | 42,475 | ||
2019 | 7,866 | ||
Prior | 22,893 | ||
Revolving Loans Amortized Cost Basis | 50,815 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 672,547 | 609,452 | |
Gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 19 | ||
Prior | 381 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 400 | 84 | 5 |
Home equity lines of credit | |||
Total commercial business loans | |||
2023 | 638 | ||
2022 | 3,942 | ||
2021 | 1,779 | ||
2020 | 1,306 | ||
2019 | 501 | ||
Prior | 3,125 | ||
Revolving Loans Amortized Cost Basis | 3,240 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 14,531 | 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 |
Consumer | |||
Total commercial business loans | |||
2023 | 2,295 | ||
2022 | 19,192 | ||
2021 | 5,811 | ||
2020 | 9 | ||
2019 | 28 | ||
Prior | 53 | ||
Revolving Loans Amortized Cost Basis | 20 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 27,408 | 131,566 | |
Gross charge-offs | |||
2023 | 1,144 | ||
2022 | 10,608 | ||
2021 | 1,753 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 2 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 13,507 | 12,241 | $ 247 |
Pass | |||
Total commercial business loans | |||
2023 | 300,188 | ||
2022 | 890,814 | ||
2021 | 431,438 | ||
2020 | 138,327 | ||
2019 | 85,038 | ||
Prior | 217,610 | ||
Revolving Loans Amortized Cost Basis | 130,366 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 2,193,781 | 2,299,448 | |
Pass | Total Commercial | |||
Total commercial business loans | |||
Total loans | 1,544,104 | ||
Pass | Total Commercial | Business | |||
Total commercial business loans | |||
2023 | 176,309 | ||
2022 | 251,265 | ||
2021 | 92,307 | ||
2020 | 64,964 | ||
2019 | 50,765 | ||
Prior | 90,355 | ||
Revolving Loans Amortized Cost Basis | 20,315 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 746,280 | 830,319 | |
Pass | Total Commercial | Real estate | |||
Total commercial business loans | |||
2023 | 80,553 | ||
2022 | 149,189 | ||
2021 | 205,651 | ||
2020 | 11,952 | ||
2019 | 26,438 | ||
Prior | 101,322 | ||
Revolving Loans Amortized Cost Basis | 51,239 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 626,344 | 592,997 | |
Pass | Total Commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2023 | 6,546 | ||
2022 | 54,170 | ||
2021 | 29,535 | ||
2020 | 22,041 | ||
2019 | 0 | ||
Prior | 1,483 | ||
Revolving Loans Amortized Cost Basis | 4,823 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 118,598 | 120,788 | |
Pass | Residential real estate | |||
Total commercial business loans | |||
2023 | 33,867 | ||
2022 | 413,466 | ||
2021 | 96,413 | ||
2020 | 38,169 | ||
2019 | 7,306 | ||
Prior | 21,313 | ||
Revolving Loans Amortized Cost Basis | 50,815 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 661,349 | 605,513 | |
Pass | Home equity lines of credit | |||
Total commercial business loans | |||
2023 | 638 | ||
2022 | 3,798 | ||
2021 | 1,779 | ||
2020 | 1,192 | ||
2019 | 501 | ||
Prior | 3,084 | ||
Revolving Loans Amortized Cost Basis | 3,154 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 14,146 | 18,269 | |
Pass | Consumer | |||
Total commercial business loans | |||
2023 | 2,275 | ||
2022 | 18,926 | ||
2021 | 5,753 | ||
2020 | 9 | ||
2019 | 28 | ||
Prior | 53 | ||
Revolving Loans Amortized Cost Basis | 20 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 27,064 | 131,562 | |
Special Mention | |||
Total commercial business loans | |||
2023 | 990 | ||
2022 | 32,403 | ||
2021 | 22,685 | ||
2020 | 5,090 | ||
2019 | 6,832 | ||
Prior | 15,717 | ||
Revolving Loans Amortized Cost Basis | 86 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 83,803 | 31,258 | |
Special Mention | Total Commercial | |||
Total commercial business loans | |||
Total loans | 30,123 | ||
Special Mention | Total Commercial | Business | |||
Total commercial business loans | |||
2023 | 990 | ||
2022 | 32,342 | ||
2021 | 72 | ||
2020 | 830 | ||
2019 | 339 | ||
Prior | 3,767 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 38,340 | 5,963 | |
Special Mention | Total Commercial | Real estate | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 7,961 | ||
2020 | 0 | ||
2019 | 6,079 | ||
Prior | 11,201 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 25,241 | 18,883 | |
Special Mention | Total Commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 14,652 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 14,652 | 5,277 | |
Special Mention | Residential real estate | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 4,224 | ||
2019 | 414 | ||
Prior | 708 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 5,346 | 760 | |
Special Mention | Home equity lines of credit | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 61 | ||
2021 | 0 | ||
2020 | 36 | ||
2019 | 0 | ||
Prior | 41 | ||
Revolving Loans Amortized Cost Basis | 86 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 224 | 375 | |
Special Mention | Consumer | |||
Total commercial business loans | |||
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 loans | 0 | 0 | |
Substandard | |||
Total commercial business loans | |||
2023 | 388 | ||
2022 | 2,325 | ||
2021 | 4,343 | ||
2020 | 160 | ||
2019 | 4,786 | ||
Prior | 21,966 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 33,968 | 35,287 | |
Substandard | Total Commercial | |||
Total commercial business loans | |||
Total loans | 33,637 | ||
Substandard | Total Commercial | Business | |||
Total commercial business loans | |||
2023 | 368 | ||
2022 | 988 | ||
2021 | 521 | ||
2020 | 0 | ||
2019 | 4,640 | ||
Prior | 1,436 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 7,953 | 12,103 | |
Substandard | Total Commercial | Real estate | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 18,999 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 18,999 | 20,600 | |
Substandard | Total Commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 754 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 754 | 934 | |
Substandard | Residential real estate | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 988 | ||
2021 | 3,764 | ||
2020 | 82 | ||
2019 | 146 | ||
Prior | 777 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 5,757 | 1,556 | |
Substandard | Home equity lines of credit | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 83 | ||
2021 | 0 | ||
2020 | 78 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 161 | 90 | |
Substandard | Consumer | |||
Total commercial business loans | |||
2023 | 20 | ||
2022 | 266 | ||
2021 | 58 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 344 | 4 | |
Doubtful | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 2,022 | ||
2021 | 839 | ||
2020 | 264 | ||
2019 | 0 | ||
Prior | 1,497 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 4,622 | 4,669 | |
Doubtful | Total Commercial | |||
Total commercial business loans | |||
Total loans | 3,046 | ||
Doubtful | Total Commercial | Business | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 2,022 | ||
2021 | 839 | ||
2020 | 264 | ||
2019 | 0 | ||
Prior | 1,402 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 4,527 | 2,687 | |
Doubtful | Total Commercial | Real estate | |||
Total commercial business loans | |||
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 loans | 0 | 359 | |
Doubtful | Total Commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
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 loans | 0 | 0 | |
Doubtful | Residential real estate | |||
Total commercial business loans | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 95 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans | 95 | 1,623 | |
Doubtful | Home equity lines of credit | |||
Total commercial business loans | |||
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 loans | 0 | 0 | |
Doubtful | Consumer | |||
Total commercial business loans | |||
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 loans | $ 0 | $ 0 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Aging (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 2,316,174 | $ 2,370,662 |
Non-Accrual | 8,267 | 11,165 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 2,579 | |
Interest Income Recognized | 0 | |
Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,601,688 | 1,610,910 |
Non-Accrual | 7,680 | 7,528 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 2,579 | |
Interest Income Recognized | 0 | |
Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 797,100 | 851,072 |
Non-Accrual | 6,926 | 7,528 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 1,825 | |
Interest Income Recognized | 0 | |
Total Commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 670,584 | 632,839 |
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 | 134,004 | 126,999 |
Non-Accrual | 754 | 0 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 754 | |
Interest Income Recognized | 0 | |
Residential | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 672,547 | 609,452 |
Non-Accrual | 82 | 2,196 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 0 | |
Interest Income Recognized | 0 | |
Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 14,531 | 18,734 |
Non-Accrual | 161 | 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 | 27,408 | 131,566 |
Non-Accrual | 344 | 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 | 2,302,159 | 2,355,139 |
Current | Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,592,604 | 1,609,950 |
Current | Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 788,430 | 850,112 |
Current | Total Commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 670,170 | 632,839 |
Current | Total Commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 134,004 | 126,999 |
Current | Residential | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 670,539 | 606,554 |
Current | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 14,522 | 18,131 |
Current | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 24,494 | 120,504 |
30-59 Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 8,200 | 9,271 |
30-59 Days Past Due | Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 4,728 | 0 |
30-59 Days Past Due | Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 4,728 | 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 | 0 | 0 |
30-59 Days Past Due | Residential | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,671 | 1,820 |
30-59 Days Past Due | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 9 | 603 |
30-59 Days Past Due | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,792 | 6,848 |
60-89 Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,977 | 4,905 |
60-89 Days Past Due | Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 862 | 960 |
60-89 Days Past Due | Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 448 | 960 |
60-89 Days Past Due | Total Commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 414 | 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 | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 337 | 1,078 |
60-89 Days Past Due | Home equity lines of credit | ||
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 | 778 | 2,867 |
90+ Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,838 | 1,347 |
90+ Days Past Due | Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,494 | 0 |
90+ Days Past Due | Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,494 | 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 | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 0 | 0 |
90+ Days Past Due | Home equity lines of credit | ||
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 | 344 | 1,347 |
Total Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 14,015 | 15,523 |
Total Past Due | Total Commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 9,084 | 960 |
Total Past Due | Total Commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 8,670 | 960 |
Total Past Due | Total Commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 414 | 0 |
Total Past Due | Total Commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 0 | 0 |
Total Past Due | Residential | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 2,008 | 2,898 |
Total Past Due | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 9 | 603 |
Total Past Due | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 2,914 | $ 11,062 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in the allowance for loan losses | |||
Balance at beginning of period | $ 23,837 | $ 18,266 | $ 25,844 |
Provision (release of allowance) for credit losses | (1,318) | 14,194 | (6,275) |
Initial allowance on loans purchased with credit deterioration | 1,217 | ||
Charge-offs | (18,479) | (15,183) | (1,619) |
Recoveries | 9,185 | 6,560 | 316 |
Balance at end of period | 22,124 | 23,837 | 18,266 |
Individually evaluated for impairment | 1,643 | 1,743 | 475 |
Collectively evaluated for impairment | 22,094 | 17,791 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 7,682 | ||
Balance at end of period | 7,682 | ||
Total Commercial | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 15,539 | 14,100 | 24,033 |
Provision (release of allowance) for credit losses | 3,347 | 4,114 | (8,797) |
Initial allowance on loans purchased with credit deterioration | 710 | ||
Charge-offs | (4,572) | (2,858) | (1,367) |
Recoveries | 196 | 183 | 231 |
Balance at end of period | 12,536 | 15,539 | 14,100 |
Individually evaluated for impairment | 1,583 | 1,475 | 475 |
Collectively evaluated for impairment | 14,064 | 13,625 | |
Total Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | (2,684) | ||
Balance at end of period | (2,684) | ||
Total Commercial | Business | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 8,771 | 8,027 | 12,193 |
Provision (release of allowance) for credit losses | 2,954 | 3,546 | (3,113) |
Initial allowance on loans purchased with credit deterioration | 710 | ||
Charge-offs | (4,572) | (2,858) | (1,284) |
Recoveries | 194 | 56 | 231 |
Balance at end of period | 7,931 | 8,771 | 8,027 |
Individually evaluated for impairment | 1,583 | 1,253 | 232 |
Collectively evaluated for impairment | 7,518 | 7,795 | |
Total Commercial | Business | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | (126) | ||
Balance at end of period | (126) | ||
Total Commercial | Real estate | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 5,704 | 5,091 | 9,079 |
Provision (release of allowance) for credit losses | 71 | 486 | (3,905) |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | (83) |
Recoveries | 2 | 127 | 0 |
Balance at end of period | 2,931 | 5,704 | 5,091 |
Individually evaluated for impairment | 0 | 222 | 243 |
Collectively evaluated for impairment | 5,482 | 4,848 | |
Total Commercial | Real estate | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | (2,846) | ||
Balance at end of period | (2,846) | ||
Total Commercial | Acquisition, development and construction | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 1,064 | 982 | 2,761 |
Provision (release of allowance) for credit losses | 322 | 82 | (1,779) |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance at end of period | 1,674 | 1,064 | 982 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,064 | 982 | |
Total Commercial | Acquisition, development and construction | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 288 | ||
Balance at end of period | 288 | ||
Residential | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 2,880 | 1,492 | 1,462 |
Provision (release of allowance) for credit losses | (541) | 1,472 | 35 |
Initial allowance on loans purchased with credit deterioration | 507 | ||
Charge-offs | (400) | (84) | (5) |
Recoveries | 77 | 0 | 0 |
Balance at end of period | 6,412 | 2,880 | 1,492 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 2,880 | 1,492 | |
Residential | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 3,889 | ||
Balance at end of period | 3,889 | ||
Home equity lines of credit | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 131 | 128 | 298 |
Provision (release of allowance) for credit losses | (33) | (4) | (194) |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | 0 |
Recoveries | 4 | 7 | 24 |
Balance at end of period | 97 | 131 | 128 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 131 | 128 | |
Home equity lines of credit | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | (5) | ||
Balance at end of period | (5) | ||
Consumer | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | 5,287 | 2,546 | 51 |
Provision (release of allowance) for credit losses | (4,091) | 8,612 | 2,681 |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | (13,507) | (12,241) | (247) |
Recoveries | 8,908 | 6,370 | 61 |
Balance at end of period | 3,079 | 5,287 | 2,546 |
Individually evaluated for impairment | 60 | 268 | 0 |
Collectively evaluated for impairment | 5,019 | $ 2,546 | |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||
Changes in the allowance for loan losses | |||
Balance at beginning of period | $ 6,482 | ||
Balance at end of period | $ 6,482 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Primary Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | $ 4,534 | $ 15,860 |
Collectively evaluated for impairment | 2,354,802 | |
Total loans | 2,316,174 | 2,370,662 |
Total Commercial | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 4,190 | 11,816 |
Collectively evaluated for impairment | 1,599,094 | |
Total loans | 1,601,688 | 1,610,910 |
Total Commercial | Business | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 4,190 | 10,451 |
Collectively evaluated for impairment | 840,621 | |
Total loans | 797,100 | 851,072 |
Total Commercial | Real estate | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 0 | 1,365 |
Collectively evaluated for impairment | 631,474 | |
Total loans | 670,584 | 632,839 |
Total Commercial | Acquisition, development and construction | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 126,999 | |
Total loans | 134,004 | 126,999 |
Residential | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 0 | 2,603 |
Collectively evaluated for impairment | 606,849 | |
Total loans | 672,547 | 609,452 |
Home equity lines of credit | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 0 | 90 |
Collectively evaluated for impairment | 18,644 | |
Total loans | 14,531 | 18,734 |
Consumer | ||
Primary segments of the loan portfolio: | ||
Individually evaluated for impairment | 344 | 1,351 |
Collectively evaluated for impairment | 130,215 | |
Total loans | $ 27,408 | $ 131,566 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Amortized Cost Basis of Modified Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 22,192 |
Total Class of Financing Receivable | 1% |
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 | 19,736 |
Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,456 |
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 | $ 22,192 |
Total Class of Financing Receivable | 1% |
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 | 19,736 |
Total Commercial | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 2,456 |
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 | $ 8,535 |
Total Class of Financing Receivable | 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 | 8,535 |
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 | $ 12,903 |
Total Class of Financing Receivable | 2% |
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 | 11,201 |
Total Commercial | Real estate | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 1,702 |
Total Commercial | Real estate | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total Commercial | Acquisition, development and construction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 754 |
Total Class of Financing Receivable | 1% |
Total Commercial | Acquisition, development and construction | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total Commercial | Acquisition, development and construction | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total Commercial | Acquisition, development and construction | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 754 |
Total Commercial | Acquisition, development and construction | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total Class of Financing Receivable | 0% |
Residential | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Residential | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total Class of Financing Receivable | 0% |
Home equity lines of credit | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Home equity lines of credit | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | 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 |
Total Class of Financing Receivable | 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_11
Loans and Allowance for Credit Losses - Performance of Modified Loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | $ 1,702 |
60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 418 |
90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 3,370 |
Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 5,490 |
Total Commercial | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 1,702 |
Total Commercial | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 418 |
Total Commercial | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 3,370 |
Total Commercial | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 5,490 |
Total Commercial | Business | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 1,702 |
Total Commercial | Business | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 418 |
Total Commercial | Business | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 3,370 |
Total Commercial | Business | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 5,490 |
Total Commercial | Real estate | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Real estate | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Real estate | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Real estate | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Acquisition, development and construction | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Acquisition, development and construction | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Acquisition, development and construction | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Total Commercial | Acquisition, development and construction | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Residential | Total Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home equity lines of credit | 30-59 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home equity lines of credit | 60-89 Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home equity lines of credit | 90+ Days Past Due | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total Past Due | 0 |
Home equity lines of credit | 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_12
Loans and Allowance for Credit Losses - Modified Loans with Subsequent Default (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 2,634 |
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 | 2,634 |
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 | 2,634 |
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 | 2,634 |
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 | 2,634 |
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 | 2,634 |
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 | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity lines of credit | 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 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Premises and equipment | ||
Gross premises and equipment | $ 45,179 | $ 43,770 |
Accumulated depreciation | (24,251) | (20,140) |
Premises and equipment, net | 20,928 | 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 | 18,300 | 17,549 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 7,140 | 6,019 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 45 | 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4.6 | $ 4.4 | $ 3.3 |
Lease liabilities | 14 | 15 | |
Operating lease right-of-use asset | $ 12.9 | $ 13.9 | |
Operating lease, weighted average remaining lease term (in years) | 10 years 6 months | 11 years 7 months 6 days | |
Operating lease, weighted average discount rate, (as a percentage) | 3.10% | 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 Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Amortization of right-of-use assets, finance leases | $ 10 | $ 57 |
Operating lease cost | 1,795 | 1,781 |
Short-term lease cost | 8 | 32 |
Variable lease cost | 38 | 38 |
Total lease cost | $ 1,851 | $ 1,908 |
Premises and Equipment - Leas_2
Premises and Equipment - Lease Liability (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 1,793 |
2025 | 1,738 |
2026 | 1,611 |
2027 | 1,641 |
2028 | 1,629 |
2029 and thereafter | 8,320 |
Total future minimum lease payments | 16,732 |
Less: Amounts representing interest | (2,698) |
Present value of net future minimum lease payments | $ 14,034 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net income (loss) | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 31,232 | $ 15,047 | $ 39,121 |
Gain (loss) on loans held for sale | 1,065 | 5,487 | 4,178 | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total revenues | 39,283 | 67,207 | 153,549 | ||||||||
Net income (loss) | (9,418) | 343 | 41,381 | ||||||||
Gain on loans sold | 22,782 | 44,921 | 150,896 | ||||||||
Gain (loss) on loans held for sale | $ 457 | $ (2,834) | $ (10,223) | ||||||||
Volume of loans sold | loan | 1,353,410,000 | 2,325,709,000 | 5,326,757,000 | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Warp Speed Holdings LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total revenues | $ 143,784 | ||||||||||
Net income (loss) | 7,234 | ||||||||||
Gain on loans sold | 37,218 | ||||||||||
Gain (loss) on loans held for sale | $ 8,210 | ||||||||||
Volume of loans sold | loan | 1,370,313,000 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 75,754 | $ 76,223 | ||
Equity method investments income (loss) | $ (2,499) | (713) | $ 17,428 | |
Intercoastal | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40% | |||
Equity method investments | $ 21,600 | |||
Equity method investments income (loss) | (3,800) | 0 | $ 16,400 | |
Locked mortgage pipeline | 439,000 | $ 678,300 | ||
Warp Speed Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 37.50% | |||
Equity method investments | 52,700 | |||
Equity method investments income (loss) | 2,700 | |||
Locked mortgage pipeline | $ 267,800 | |||
Ayers Socure II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 10% | |||
Equity method investments | $ 1,500 | |||
Socure Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage in equity security investment | 1% |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Demand deposits of individuals, partnerships and corporations | ||
Noninterest-bearing demand | $ 1,197,272 | $ 1,231,544 |
NOW | 538,444 | 720,062 |
Savings and money markets | 571,299 | 284,459 |
Time deposits, including CDs and IRAs | 594,461 | 334,417 |
Total deposits | 2,901,476 | 2,570,482 |
Time deposits that meet or exceed the FDIC insurance limit | $ 3,150 | $ 4,386 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturities of Time Deposits | |
2024 | $ 426,024 |
2025 | 72,690 |
2026 | 478 |
2027 | 17,226 |
2028 | 78,019 |
Thereafter | 24 |
Total | 594,461 |
Overdrawn deposits | $ 3,800 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Borrowed funds | ||
Maximum borrowing capacity with the FHLB | $ 712,900,000 | |
Remaining maximum borrowing capacity with the FHLB | 699,800,000 | |
FHLB, deposit letters of credit | 11,900,000 | |
FHLB, credit enhancement recourse obligations | 1,200,000 | |
Short-term Borrowings from FHLB | ||
Short-term Borrowings | ||
Balance at end of year | 0 | $ 102,333,000 |
Average balance during the year | 17,542,000 | 15,494,000 |
Maximum month-end balance | $ 0 | $ 102,333,000 |
Weighted-average rate during the year | 5.07% | 2.82% |
Weighted-average rate at December 31 | 0% | 4.45% |
Federal Funds Purchased | ||
Short-term Borrowings | ||
Balance at end of year | $ 0 | $ 0 |
Borrowed Funds - Long-term Borr
Borrowed Funds - Long-term Borrowings (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Borrowings from the FHLB | $ 0 | $ 0 |
Borrowed Funds - Repurchase Agr
Borrowed Funds - Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Securities | ||
Borrowed funds | ||
Investment securities held as collateral | $ 4,900 | $ 10,400 |
Repurchase Agreements | ||
Borrowed funds | ||
Balance at end of year | 4,821 | 10,037 |
Average balance during the year | 5,662 | 10,987 |
Maximum month-end balance | $ 10,041 | $ 12,680 |
Weighted-average rate during the year | 0.02% | 0.05% |
Weighted-average rate at December 31 | 0.01% | 0.06% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Nov. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2007 | |
Subordinated Debt | ||||||
Balance at end of year | $ 73,540 | $ 73,286 | ||||
Interest expense on borrowed funds | 3,219 | 3,072 | $ 2,188 | |||
Subordinated Debt | ||||||
Subordinated Debt | ||||||
Balance at end of year | 73,540 | 73,286 | ||||
Average balance during the year | 73,415 | 73,159 | ||||
Maximum month-end balance | $ 73,540 | $ 73,286 | ||||
Weighted-average rate during the year | 4.38% | 4.20% | ||||
Weighted-average rate at December 31 | 4.02% | 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% | ||||
Interest expense on borrowed funds | $ 3,200 | $ 3,100 | $ 2,200 | |||
Subordinated Debt | Subordinated Debentures | ||||||
Subordinated Debt | ||||||
Face amount of debt issued | $ 4,000 | |||||
Subordinated Debt | SOFR | ||||||
Subordinated Debt | ||||||
Variable rate basis spread | 2.54% | 4.01% | ||||
Subordinated Debt | SOFR | Subordinated Debentures | ||||||
Subordinated Debt | ||||||
Variable rate basis spread | 0.26% |
Borrowed Funds - Senior term lo
Borrowed Funds - Senior term loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Secured Borrowings | ||||
Senior term loan | $ 6,786 | $ 9,765 | ||
Interest on senior term loan | 766 | 163 | $ 0 | |
Senior Loans | ||||
Secured Borrowings | ||||
Senior term loan | 6,786 | 9,765 | ||
Average balance during the year | 9,007 | 2,328 | ||
Maximum month-end balance | $ 9,768 | $ 9,886 | ||
Weighted-average rate during the year | 8.50% | 7% | ||
Weighted-average rate at December 31 | 8.76% | 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 | Debt Instrument, Redemption, Period One | ||||
Secured Borrowings | ||||
Periodic principal payment | $ 125 | |||
Senior Loans | Raymond James Senior Term Loan | Debt Instrument, Redemption, Period Two | ||||
Secured Borrowings | ||||
Periodic principal payment | $ 250 | |||
Senior Loans | Raymond James Senior Term Loan | SOFR | ||||
Secured Borrowings | ||||
Base rate | 2.75% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for unfunded commitments | $ 1 | $ 0.5 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Schedule of Contractual Amounts of Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | $ 417,066 | $ 527,672 |
Available on lines of credit | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | 363,452 | 495,618 |
Stand-by letters of credit | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | 36,826 | 17,153 |
Other loan commitments | ||
Financial Instruments with Off-Balance-Sheet Risk | ||
Total contractual amounts of the commitments | $ 16,788 | $ 14,901 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 6,707 | $ 6,607 | $ 3,332 |
State | 1,315 | 1,152 | 421 |
Total current | 8,022 | 7,759 | 3,753 |
Deferred: | |||
Federal | 8 | (3,056) | 5,159 |
State | 89 | (575) | 970 |
Total deferred expense (benefit) | 97 | (3,631) | 6,129 |
Income tax expense | $ 8,119 | $ 4,128 | $ 9,882 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Income tax at federal statutory rate | $ 8,217 | $ 3,889 | $ 10,201 |
Tax effect of: | |||
State income taxes, net of federal income taxes | 1,109 | 456 | 1,099 |
Tax exempt earnings | (941) | (1,596) | (1,460) |
Other | (266) | 1,379 | 42 |
Income tax expense | $ 8,119 | $ 4,128 | $ 9,882 |
Effective Income Tax Rate Reconciliation, Percent | |||
Income tax at federal statutory rate (percentage) | 21% | 21% | 21% |
Tax effect of: | |||
State income taxes, net of federal income taxes (percentage) | 2.80% | 2.50% | 2.20% |
Tax exempt earnings (percentage) | (2.40%) | (8.60%) | (3.00%) |
Other (percentage) | (0.60%) | 7.40% | 0.10% |
Income tax expense (as a percentage) | 20.80% | 22.30% | 20.30% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Gross deferred tax assets: | ||
Allowance for credit losses | $ 5,589 | $ 5,849 |
Minimum pension liability | 955 | 991 |
Research and development | 2,035 | 0 |
Stock-based compensation | 976 | 1,097 |
SERP | 327 | 317 |
Unrealized loss on securities available-for-sale | 7,892 | 11,024 |
Lease liabilities | 3,402 | 3,611 |
Other | 828 | 364 |
Total gross deferred tax assets | 22,004 | 23,253 |
Gross deferred tax liabilities: | ||
Depreciation | (1,197) | (1,726) |
Pension | (1,091) | (1,062) |
Unrealized gain on securities available-for-sale | 0 | (80) |
Holding gain on equity securities | (3,976) | (3,969) |
Equity method investment | (2,136) | (2,220) |
Goodwill | (107) | (110) |
Right-of-use assets | (3,163) | (3,383) |
Other | (597) | (264) |
Total gross deferred tax liabilities | (12,267) | (12,814) |
Net deferred tax assets | $ 9,737 | $ 10,439 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at Beginning of Year | $ 33,433 | $ 27,606 |
Borrowings, net of participations | 866,011 | 221,825 |
Executive Officer and Director Retirements | 0 | (998) |
Repayments | (877,072) | (215,000) |
Balance at End of Year | $ 22,372 | $ 33,433 |
Related Party Disclosures - Nar
Related Party Disclosures - Narratives (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2022 director | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 17, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||
Related party deposits | $ 256,000 | $ 112,500 | |||
Line of credit, related party | 22,372 | 33,433 | $ 27,606 | ||
Interest income on line of credit | 877,072 | 215,000 | |||
BillGO, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Line of credit, related party | $ 35,000 | ||||
Interest income on line of credit | 300 | 200 | |||
Revenue from related party | 300 | 300 | |||
Warp Speed Holdings LLC | |||||
Related Party Transaction [Line Items] | |||||
Number of directors designated by the Company | director | 2 | ||||
Total number of directors | director | 7 | ||||
CalCon Mutual Mortgage LLC | |||||
Related Party Transaction [Line Items] | |||||
Loans purchased from related party | 46,000 | 39,100 | |||
Interest income from loans purchased from related party | 2,200 | 900 | |||
Intercoastal | |||||
Related Party Transaction [Line Items] | |||||
Loans purchased from related party | $ 564,800 | $ 572,700 |
Pension Plan - Narrative (Detai
Pension Plan - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) installment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service period | 3 years | |||
Net periodic pension expense (income) | $ (100) | $ 300 | $ 300 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 5.01% | 5.23% | 2.83% | 4.50% |
Benefit obligation | $ 9,286 | $ 8,829 | $ 12,230 | |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4% | |||
Benefit obligation | $ 1,800 | |||
Number of equal consecutive installments | installment | 180 | |||
Consecutive installments, amount | $ 10 | |||
Accrued liability | $ 1,400 | $ 1,300 | ||
Term of provision for delayed payment | 1 year |
Pension Plan - Defined Benefit
Pension Plan - Defined Benefit Plan Activity (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 8,829 | $ 12,230 | |
Interest cost | 450 | 341 | $ 313 |
Actuarial loss | 97 | 160 | |
Assumption changes | 251 | (3,584) | |
Benefits paid | (341) | (318) | |
Benefit obligation at end of year | 9,286 | 8,829 | 12,230 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 9,283 | 11,591 | |
Actual return gain (loss) on plan assets | 1,064 | (1,990) | |
Benefits paid | (341) | (318) | |
Fair value of plan assets at end of year | 10,006 | 9,283 | $ 11,591 |
Funded status | 720 | 454 | |
Unrecognized net actuarial loss | 3,943 | 4,120 | |
Prepaid pension cost recognized | 4,663 | 4,574 | |
Accumulated benefit obligation | $ 9,286 | $ 8,829 |
Pension Plan - Weighted Average
Pension Plan - Weighted Average Assumptions and Net Periodic Pension Cost (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2014 | |
Weighted average assumptions used to determine the benefit obligation | ||||
Discount rate | 5.01% | 5.23% | 2.83% | 4.50% |
Components of net periodic pension cost | ||||
Interest cost | $ 450 | $ 341 | $ 313 | |
Expected return on plan assets | (655) | (669) | (689) | |
Amortization of net actuarial loss | 117 | 429 | 507 | |
Net periodic pension cost (income) | $ (88) | $ 101 | $ 131 | |
Weighted average assumptions used to determine net periodic pension cost | ||||
Discount rate | 5.01% | 5.23% | 2.83% | |
Expected long-term rate of return on plan assets | 5.75% | 6% | 6.75% |
Pension Plan - Plan Asset Alloc
Pension Plan - Plan Asset Allocations (Details) - Pension Plan | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 100% | 100% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 5% | 7% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 30% | 28% |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 12% | 13% |
Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 31% | 26% |
Foreign equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 21% | 22% |
Real estate investment trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 1% | 4% |
Pension Plan - Plan Assets at F
Pension Plan - Plan Assets at Fair Value (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | $ 10,006 | $ 9,283 | $ 11,591 |
Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 9,906 | 8,912 | |
Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 8,705 | 7,705 | |
Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 1,201 | 1,207 | |
Net Asset Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 100 | 371 | |
Cash | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 500 | 650 | |
Cash | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 500 | 650 | |
Cash | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Cash | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Fixed income | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 3,002 | 2,599 | |
Fixed income | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 3,002 | 2,599 | |
Fixed income | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Fixed income | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Alternative investments | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 1,201 | 1,207 | |
Alternative investments | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Alternative investments | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Alternative investments | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 1,201 | 1,207 | |
Domestic equities | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 3,102 | 2,414 | |
Domestic equities | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 3,102 | 2,414 | |
Domestic equities | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Domestic equities | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Foreign equities | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 2,101 | 2,042 | |
Foreign equities | Level I | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 2,101 | 2,042 | |
Foreign equities | Level II | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | 0 | 0 | |
Foreign equities | Level III | Estimated Fair Value | |||
Plan's assets at fair value by level, within the fair value hierarchy | |||
Total | $ 0 | $ 0 |
Pension Plan - Estimated Plan C
Pension Plan - Estimated Plan Contributions in Future Years (Details) - Pension Plan $ in Thousands | Dec. 31, 2023 USD ($) |
Estimated Future Employer Contributions | |
Contributions for the period of January 1, 2024 through December 31, 2024 | $ 0 |
Estimated future benefit payments reflecting expected future service | |
2024 | 433 |
2025 | 466 |
2026 | 554 |
2027 | 560 |
2028 | 575 |
2029 through 2033 | $ 2,884 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | |||
Goodwill, beginning balance | $ 3,988 | $ 3,988 | $ 2,350 |
Reduction of goodwill and intangibles resulting from sale | (1,200) | ||
Goodwill, ending balance | 2,838 | 3,988 | 3,988 |
Intangibles | |||
Gross, beginning balance | 3,820 | 3,820 | 3,941 |
Accumulated depreciation, beginning balance | (2,189) | (1,504) | (1,541) |
Net, beginning balance | 1,631 | 2,316 | 2,400 |
Accumulated amortization expense, write off (expense) | 192 | 685 | 684 |
Intangible assets related to sale, net | (1,100) | ||
Gross, ending balance | 600 | 3,820 | 3,820 |
Accumulated depreciation, ending balance | (248) | (2,189) | (1,504) |
Net, ending balance | 352 | $ 1,631 | 2,316 |
Chartwell | |||
Goodwill | |||
Reduction of goodwill and intangibles resulting from sale | (1,150) | ||
Intangibles | |||
Intangible assets related to sale, gross | (3,220) | ||
Accumulated amortization expense, write off (expense) | 2,133 | ||
Intangible assets related to sale, net | $ (1,087) | ||
Trabian | |||
Goodwill | |||
Goodwill and intangibles resulting from acquisition | 1,638 | ||
Intangibles | |||
Intangibles resulting from acquisition | 600 | ||
Branches Sold to Summit | |||
Intangibles | |||
Intangible assets related to sale, gross | (721) | ||
Accumulated amortization expense, write off (expense) | $ 721 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Impairment charges | $ 0 | $ 0 | $ 0 |
Trabian | Customer Relationships | |||
Goodwill [Line Items] | |||
Amortization period | 4 years | ||
Trabian | Trade Names | |||
Goodwill [Line Items] | |||
Amortization period | 10 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Estimated Amortization Expense | ||||
2024 | $ 90 | |||
2025 | 53 | |||
2026 | 40 | |||
2027 | 40 | |||
2028 | 40 | |||
Thereafter | 89 | |||
Total | $ 352 | $ 1,631 | $ 2,316 | $ 2,400 |
Stock Offerings (Details)
Stock Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to contingent consideration | $ 2,000 | ||||||
Common stock issued related to acquisitions | $ 9,579 | $ 600 | |||||
Interchecks | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to investment (in shares) | 107,928 | ||||||
Trabian | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to acquisitions (in shares) | 17,597 | ||||||
Chartwell | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to contingent consideration (in shares) | 23,558 | 24,408 | |||||
Sale of stock, price per share (in dollars per share) | $ 42.45 | $ 40.97 | $ 42.45 | ||||
Common stock issued related to contingent consideration | $ 1,000 | $ 1,000 | |||||
Warp Speed Holdings LLC | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock issued related to acquisitions (in shares) | 313,030 | ||||||
Sale of stock, price per share (in dollars per share) | $ 30.60 | ||||||
Common stock issued related to acquisitions | $ 9,580 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) installment $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Oct. 31, 2023 shares | |
Stock options | ||||
Shares authorized for issuance (in shares) | 975,000 | |||
Shares available for issuance (in shares) | 637,526 | |||
Common stock options exercised | $ | $ 637 | $ 2,069 | $ 4,930 | |
Fair value of stock options vested | $ | $ 500 | |||
Granted (in shares) | 73,532 | |||
Granted (in dollars per share) | $ / shares | $ 20.94 | |||
Forfeited (in shares) | 12,850 | |||
2021 Victor LTI Plan | ||||
Stock options | ||||
Shares authorized for issuance (in shares) | 5,000,000 | 3,000,000 | ||
Shares available for issuance (in shares) | 1,700,000 | |||
Granted (in shares) | 201,999 | |||
Granted (in dollars per share) | $ / shares | $ 0.29 | |||
Shares vested (in shares) | 372,331 | |||
Forfeited (in shares) | 9,999 | |||
Average exercise price of shares vested (in dollars per share) | $ / shares | $ 0.29 | |||
Nonvested stock options (in shares) | 636,698 | |||
Stock Options | ||||
Stock options | ||||
Expiration term | 10 years | |||
Intrinsic value of options exercised | $ | $ 600 | $ 3,500 | $ 8,000 | |
Unrecognized pre-tax compensation expense | $ | $ 800 | |||
Unrecognized pre-tax compensation expense, recognition period | 2 years 6 months | |||
Stock Options | 2021 Victor LTI Plan | ||||
Stock options | ||||
Vesting period | 3 years | |||
Expiration term | 10 years | |||
Stock Options | Minimum | ||||
Stock options | ||||
Vesting period | 3 years | |||
Stock Options | Maximum | ||||
Stock options | ||||
Vesting period | 5 years | |||
RSUs | ||||
Stock options | ||||
Unrecognized pre-tax compensation expense | $ | $ 3,500 | |||
Unrecognized pre-tax compensation expense, recognition period | 1 year 9 months 18 days | |||
Granted (in shares) | 224,364 | |||
Fair value of RSUs vested | $ | $ 2,500 | |||
Time Based, Restricted Stock Units | ||||
Stock options | ||||
Vesting period | 3 years | |||
Granted (in shares) | 137,274 | |||
Number of vesting installments | installment | 3 | |||
Time Based, Restricted Stock Units | Director | ||||
Stock options | ||||
Vesting period | 1 year | |||
Performance Based, Restricted Stock Units | ||||
Stock options | ||||
Vesting period | 3 years | |||
Granted (in shares) | 87,090 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,658 | $ 2,800 | $ 2,634 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 435 | 501 | 832 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,223 | $ 2,299 | $ 1,802 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 942,543 | ||
Granted (in shares) | 73,532 | ||
Exercised (in shares) | 107,500 | ||
Forfeited (in shares) | 12,850 | ||
Expired (in shares) | 4,980 | ||
Outstanding at end of year (in shares) | 890,745 | 942,543 | |
Exercisable at end of year (in shares) | 757,219 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 16.53 | ||
Granted (in dollars per share) | 20.94 | ||
Exercised (in dollars per share) | 15.96 | ||
Forfeited (in dollars per share) | 25.25 | ||
Expired (in dollars per share) | 22.43 | ||
Outstanding at end of year (in dollars per share) | 16.80 | $ 16.53 | |
Exercisable at end of year (in dollars per share) | 15.79 | ||
Additional disclosure | |||
Weighted-average fair value of options granted during the year (in dollars per share) | $ 7.17 | $ 14.94 | $ 10.61 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | |||
Average risk-free interest rates | 4.06% | 2.23% | 1.27% |
Weighted-average life (years) | 7 years | 7 years | 7 years |
Expected volatility | 42.40% | 41.20% | 41.20% |
Expected dividend yield | 3.07% | 1.58% | 1.08% |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options Outstanding | ||
Total Options (in shares) | 890,745 | 942,543 |
Weighted-Average Exercise Price (in dollars per share) | $ 16.80 | $ 16.53 |
Options Exercisable | ||
Total Options (in shares) | 757,219 | |
Weighted-Average Exercise Price (in dollars per share) | $ 15.79 | |
Stock Options | ||
Options Outstanding | ||
Intrinsic Value (in millions) | $ 5.6 | |
Weighted-Average Remaining Life | 4 years 25 days | |
Options Exercisable | ||
Intrinsic Value (in millions) | $ 5.3 | |
Weighted-Average Remaining Life | 3 years 4 months 9 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of RSUs (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Balance at beginning of year (in shares) | 247,557 | ||
Granted (in shares) | 224,364 | ||
Vested (in shares) | (130,402) | ||
Forfeited (in shares) | (57,864) | ||
Balance at end of year (in shares) | 283,655 | 247,557 | |
Weighted-Average Grant Date Fair Value | |||
Balance at beginning of year (in dollars per share) | $ 26.39 | ||
Granted (in dollars per share) | 17.42 | $ 38.04 | $ 40.95 |
Vested (in dollars per share) | 20.28 | ||
Forfeited (in dollars per share) | 18.58 | ||
Balance at end of year (in dollars per share) | $ 23.44 | $ 26.39 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator for earnings per share: | |||||||||||
Net income from continuing operations | $ 22,224 | $ 11,734 | $ 37,838 | ||||||||
Net loss attributable to noncontrolling interest | 226 | 660 | 425 | ||||||||
Dividends on preferred stock | 0 | 0 | (35) | ||||||||
Net income available to common shareholders from continuing operations | 22,450 | 12,394 | 38,228 | ||||||||
Net income from discontinued operations available to common shareholders - basic and diluted | 8,782 | 2,653 | 858 | ||||||||
Net income available to common shareholders | $ 31,232 | $ 15,047 | $ 39,086 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding - basic (in shares) | 12,694,206 | 12,279,462 | 11,778,557 | ||||||||
Effect of dilutive stock options and restricted stock units (in shares) | 303,126 | 591,272 | 835,063 | ||||||||
Total diluted average shares outstanding (in shares) | 12,997,332 | 12,870,734 | 12,613,620 | ||||||||
Earnings per share from continuing operations - basic (in dollars per share) | $ 1.77 | $ 1.01 | $ 3.25 | ||||||||
Earnings per share from discontinued operations - basic (in dollars per share) | 0.69 | 0.22 | 0.07 | ||||||||
Earnings per common share - basic (in dollars per share) | $ 0.62 | $ 0.30 | $ 0.64 | $ 0.90 | $ 0.52 | $ 0.22 | $ 0.24 | $ 0.24 | 2.46 | 1.23 | 3.32 |
Earnings per share from continuing operations - diluted (in dollars per share) | 1.72 | 0.96 | 3.03 | ||||||||
Earnings per share from discontinued operations - diluted (in dollars per share) | 0.68 | 0.21 | 0.07 | ||||||||
Earnings per common share - diluted (in dollars per share) | $ 0.61 | $ 0.29 | $ 0.63 | $ 0.87 | $ 0.50 | $ 0.21 | $ 0.23 | $ 0.22 | $ 2.40 | $ 1.17 | $ 3.10 |
Stock Options | |||||||||||
Denominator: | |||||||||||
Instruments not included in the computation of diluted EPS because the effect would be antidilutive (in shares) | 364,105 | 113,427 | 93,895 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - Subsidiary bank $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Community Bank leverage ratio | ||
Actual, amount | $ 348,760 | $ 307,936 |
Actual, ratio | 0.105 | 0.098 |
Minimum Capital Requirement, amount | $ 264,484 | $ 250,675 |
Minimum Capital Requirement, ratio | 0.080 | 0.080 |
Minimum to be Well Capitalized, amount | $ 297,544 | $ 282,010 |
Minimum to be Well Capitalized, ratio | 0.090 | 0.090 |
Regulatory Restriction on Div_2
Regulatory Restriction on Dividends (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Number of preceding years, the retained net profits of which is considered for dividend payment | 2 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents | $ 398,229 | $ 40,280 |
Securities available-for-sale | 345,275 | 379,814 |
Equity securities | 41,086 | 38,744 |
Servicing assets | 1,800 | 1,600 |
Bank-owned life insurance | 44,287 | 43,239 |
Financial Liabilities: | ||
FHLB and other borrowings | 0 | 102,333 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 398,229 | 40,280 |
Securities available-for-sale | 345,275 | 379,814 |
Equity securities | 41,086 | 38,744 |
Loans held-for-sale | 629 | 23,126 |
Loans receivable, net | 2,295,470 | 2,348,808 |
Servicing assets | 1,768 | 1,616 |
Accrued interest receivable | 15,267 | 12,617 |
FHLB Stock | 2,094 | |
Bank-owned life insurance | 44,287 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,901,476 | 2,570,482 |
Repurchase Agreements | 4,821 | 10,037 |
FHLB and other borrowings | 102,333 | |
Accrued interest payable | 2,385 | 2,558 |
Senior term loan | 6,786 | 9,765 |
Subordinated debt | 73,540 | 73,286 |
Carrying Value | Interest rate swaps | ||
Financial assets: | ||
Derivative asset | 6,249 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 6,249 | 8,427 |
Carrying Value | Fair value hedge | ||
Financial Liabilities: | ||
Derivative liability | 6,111 | 572 |
Carrying Value | Embedded derivative | ||
Financial assets: | ||
Derivative asset | 648 | 787 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 398,229 | 40,280 |
Securities available-for-sale | 345,275 | 379,814 |
Equity securities | 41,086 | 38,744 |
Loans held-for-sale | 629 | 24,898 |
Loans receivable, net | 2,230,279 | 2,285,427 |
Servicing assets | 1,799 | 1,634 |
Accrued interest receivable | 15,267 | 12,617 |
FHLB Stock | 2,094 | |
Bank-owned life insurance | 44,287 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,587,246 | 2,226,037 |
Repurchase Agreements | 4,821 | 10,037 |
FHLB and other borrowings | 102,006 | |
Accrued interest payable | 2,385 | 2,558 |
Senior term loan | 6,786 | 9,765 |
Subordinated debt | 57,234 | 64,330 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Cash and cash equivalents | 398,229 | 40,280 |
Securities available-for-sale | 0 | 0 |
Equity securities | 3,590 | 5,382 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Servicing assets | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FHLB Stock | 0 | |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase Agreements | 0 | 0 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Senior term loan | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 319,530 | 344,471 |
Equity securities | 0 | 0 |
Loans held-for-sale | 629 | 24,898 |
Loans receivable, net | 0 | 0 |
Servicing assets | 0 | 0 |
Accrued interest receivable | 2,836 | 2,778 |
FHLB Stock | 2,094 | |
Bank-owned life insurance | 44,287 | 43,239 |
Financial Liabilities: | ||
Deposits | 2,587,246 | 2,226,037 |
Repurchase Agreements | 4,821 | 10,037 |
FHLB and other borrowings | 102,006 | |
Accrued interest payable | 2,385 | 2,558 |
Senior term loan | 6,786 | 9,765 |
Subordinated debt | 57,234 | 64,330 |
Estimated Fair Value | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 25,745 | 35,343 |
Equity securities | 37,496 | 33,362 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net | 2,230,279 | 2,285,427 |
Servicing assets | 1,799 | 1,634 |
Accrued interest receivable | 12,431 | 9,839 |
FHLB Stock | 0 | |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase Agreements | 0 | 0 |
FHLB and other borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Senior term loan | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Interest rate swaps | ||
Financial assets: | ||
Derivative asset | 6,249 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 6,249 | 8,427 |
Estimated Fair Value | Interest rate swaps | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Interest rate swaps | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Derivative asset | 6,249 | 8,427 |
Financial Liabilities: | ||
Derivative liability | 6,249 | 8,427 |
Estimated Fair Value | Interest rate swaps | Significant Unobservable Inputs (Level III) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Fair value hedge | ||
Financial Liabilities: | ||
Derivative liability | 6,111 | 572 |
Estimated Fair Value | Fair value hedge | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Estimated Fair Value | Fair value hedge | Significant Other Observable Inputs (Level II) | ||
Financial Liabilities: | ||
Derivative liability | 6,111 | 572 |
Estimated Fair Value | Fair value hedge | Significant Unobservable Inputs (Level III) | ||
Financial Liabilities: | ||
Derivative liability | 0 | |
Estimated Fair Value | Embedded derivative | ||
Financial assets: | ||
Derivative asset | 648 | 787 |
Estimated Fair Value | Embedded derivative | Quoted Prices in Active Markets for Identical Assets (Level I) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Estimated Fair Value | Embedded derivative | Significant Other Observable Inputs (Level II) | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Estimated Fair Value | Embedded derivative | Significant Unobservable Inputs (Level III) | ||
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 345,275 | $ 379,814 |
Equity securities | 41,086 | 38,744 |
Bank-owned life insurance | 44,287 | 43,239 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 3,590 | 5,382 |
Loans held-for-sale | 629 | 24,898 |
Bank-owned life insurance | 44,287 | 43,239 |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 3,590 | 5,382 |
Loans held-for-sale | 0 | |
Bank-owned life insurance | 0 | 0 |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 629 | 24,898 |
Bank-owned life insurance | 44,287 | 43,239 |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 38,408 | 44,814 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 38,408 | 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 | 38,408 | 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 | 82,382 | 56,571 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 82,382 | 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 | 82,382 | 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 | 100,356 | 120,909 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 100,356 | 120,909 |
United States treasury securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
United States treasury securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 100,356 | 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 | 106,907 | 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 | 88,662 | 103,293 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 18,245 | 35,343 |
Corporate debt securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,942 | 10,560 |
Corporate debt securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,942 | 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 | 8,942 | 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 | 780 | 824 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 780 | 824 |
Other securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Other securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 780 | 824 |
Other securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Interest rate swaps | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 6,249 | 8,427 |
Derivative liability | 6,249 | 8,427 |
Interest rate swaps | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swaps | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative asset | 6,249 | 8,427 |
Derivative liability | 6,249 | 8,427 |
Interest rate swaps | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Embedded derivative | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 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 hedge | Recurring | ||
Fair value of assets and liabilities | ||
Derivative liability | 6,111 | 572 |
Fair value hedge | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Derivative liability | 6,111 | 572 |
Fair value hedge | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Level III Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Realized and unrealized income (loss) included in earnings | $ (100) | |
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 Income Extensible List Not Disclosed Flag | Realized and unrealized income (loss) included in earnings | |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Unrealized gain included in other comprehensive loss | Unrealized loss included in other comprehensive loss |
Level III | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 35,343 | $ 41,763 |
Realized and unrealized income (loss) included in earnings | 47 | 9 |
Purchase of securities | 246 | 1,048 |
Maturities/calls | (18,294) | (3,207) |
Unrealized gain included in other comprehensive loss | 903 | (4,270) |
Host contract executed | 0 | |
Ending balance | 18,245 | 35,343 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 787 | 0 |
Realized and unrealized income (loss) included in earnings | (139) | 0 |
Purchase of securities | 0 | 0 |
Maturities/calls | 0 | 0 |
Unrealized gain included in other comprehensive loss | 0 | 0 |
Host contract executed | 787 | |
Ending balance | 648 | 787 |
Fair Value, Assets Including Derivatives Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 36,130 | 41,763 |
Realized and unrealized income (loss) included in earnings | (92) | 9 |
Purchase of securities | 246 | 1,048 |
Maturities/calls | (18,294) | (3,207) |
Unrealized gain included in other comprehensive loss | 903 | (4,270) |
Host contract executed | 787 | |
Ending balance | $ 18,893 | $ 36,130 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral-dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,891 | $ 14,117 |
Collateral-dependent loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Collateral-dependent loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Collateral-dependent loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,891 | 14,117 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 825 | 1,194 |
Other real estate owned | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 825 | 1,194 |
Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,500 | 7,500 |
Other debt securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other debt securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other debt securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,500 | 7,500 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 37,496 | 33,362 |
Equity securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 37,496 | $ 33,362 |
Fair Value Measurements - Equit
Fair Value Measurements - Equity Securities without Readily Determinable Fair Value (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) company | Dec. 31, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | ||
Carrying value | $ 37,496 | $ 33,362 |
Upward changes for observable prices, cumulative amount | 18,038 | 17,367 |
Downward changes for observable prices, cumulative amount | (2,014) | (1,764) |
Net gain (loss), cumulative amount | 16,024 | 15,603 |
Annual Adjustments | ||
Upward changes for observable prices | 671 | 203 |
Downward changes for observable prices | (250) | (1,652) |
Net gain (loss) | 421 | (1,449) |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Carrying value | 37,496 | $ 33,362 |
Fintech Investment Portfolio | ||
Fair Value Disclosures [Abstract] | ||
Carrying value | $ 36,400 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Number of companies | company | 10 | |
Carrying value | $ 36,400 | |
Other Security Investments | ||
Fair Value Disclosures [Abstract] | ||
Carrying value | 1,100 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Carrying value | $ 1,100 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Dec. 31, 2023 USD ($) yr | Dec. 31, 2022 USD ($) yr |
Non-recurring | Other debt securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | $ 7,500 | $ 7,500 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 37,496 | 33,362 |
Non-recurring | Collateral-dependent loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 2,891 | 14,117 |
Non-recurring | Collateral-dependent loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 2,891 | 14,117 |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 825 | 1,194 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 825 | 1,194 |
Non-recurring | Equity securities | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 37,496 | 33,362 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 37,496 | 33,362 |
Recurring | Municipal securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | 18,245 | 35,343 |
Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Fair Value | $ 648 | $ 787 |
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 | |
Impaired loans, measurement input | 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 | |
Impaired loans, measurement input | 0.20 | |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned, measurement input | 0 | 0 |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned, measurement input | 0.20 | 0.20 |
Appraisal adjustments | Recurring | Municipal securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities, measurement input | 0.05 | 0.05 |
Appraisal adjustments | Recurring | Municipal securities | Appraisal of bond | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities, measurement input | 0.15 | 0.15 |
Liquidation expense | Non-recurring | Collateral-dependent loans | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Collateral-dependent loans | 0.06 | |
Impaired loans, measurement input | 0.06 | |
Liquidation expense | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned, measurement input | 0.06 | 0.06 |
Cost, less impairment | Non-recurring | Other debt securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities, measurement input | 0 | 0 |
Cost, less impairment | Non-recurring | Equity securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities, measurement input | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 49,100 | 51,900 |
Volatility | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 0.59 | 58 |
Term | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | yr | 4.75 | 5 |
Risk free rate | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Embedded derivatives, measurement input | 3.59 | 3.95 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) derivative | Dec. 31, 2022 USD ($) | |
Derivatives, Fair Value [Line Items] | ||
Number of fixed portfolio layer method fair value swaps | derivative | 5 | |
Hedged Asset | $ 440,297 | $ 10,885 |
Amortization adjustment | 9,700 | |
Realized and unrealized income (loss) included in earnings | $ (100) | |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total noninterest income | |
Fixed rate mortgages | ||
Derivatives, Fair Value [Line Items] | ||
Number of fixed portfolio layer method fair value swaps | derivative | 4 | |
Hedged Asset | $ 390,297 | 0 |
Fixed rate bonds | ||
Derivatives, Fair Value [Line Items] | ||
Number of fixed portfolio layer method fair value swaps | derivative | 1 | |
Hedged Asset | $ 50,000 | 10,885 |
Embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of embedded derivative | 600 | 800 |
Fair value hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 440,300 | |
Carrying Value | Fair value hedge | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap hedge | 10,900 | 600 |
Accrued interest receivable and other assets | Designated as Hedging Instrument | Pay fixed rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 440,297 | $ 10,885 |
Derivatives - Carrying Value of
Derivatives - Carrying Value of Hedging Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Amortized Cost Basis | $ 550,288 | $ 11,059 |
Hedged Asset | 440,297 | 10,885 |
Basis Adjustment | 5,625 | (244) |
Fixed rate mortgages | ||
Derivative [Line Items] | ||
Amortized Cost Basis | 491,018 | 0 |
Hedged Asset | 390,297 | 0 |
Basis Adjustment | 4,055 | 0 |
Fixed rate bonds | ||
Derivative [Line Items] | ||
Amortized Cost Basis | 59,270 | 11,059 |
Hedged Asset | 50,000 | 10,885 |
Basis Adjustment | $ 1,570 | $ (244) |
Derivatives - Outstanding Finan
Derivatives - Outstanding Financial Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 693,285 | $ 286,363 |
Fair Value of Asset (Liability) | 578 | |
Fair Value of Asset (Liability) | (6,111) | |
Gain (Loss) | $ (6,111) | 578 |
Derivative Gain Loss Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | Total derivatives | |
Accrued interest receivable and other assets | Pay fixed rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 440,297 | 10,885 |
Fair Value of Asset (Liability) | 578 | |
Fair Value of Asset (Liability) | (6,111) | |
Gain (Loss) | (6,111) | 578 |
Accrued interest receivable and other assets | Matched interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 126,494 | 137,739 |
Fair Value of Asset (Liability) | 6,249 | 8,427 |
Gain (Loss) | 6,249 | 8,427 |
Accrued interest payable and other liabilities | Matched interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 126,494 | 137,739 |
Fair Value of Asset (Liability) | (6,249) | (8,427) |
Gain (Loss) | $ (6,249) | $ (8,427) |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive Income | |||||||||||
Gain (loss) on sale of available-for-sale securities, net | $ (1,536) | $ 650 | $ 3,875 | ||||||||
Salaries and employee benefits | (63,371) | (62,534) | (52,965) | ||||||||
Interest on investment securities | 5,576 | 3,496 | 2,405 | ||||||||
Income from continuing operations, before income taxes | 27,294 | 15,028 | 47,479 | ||||||||
Income tax expense | (5,070) | (3,294) | (9,641) | ||||||||
Net income attributable to parent | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | 31,232 | 15,047 | 39,121 |
Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Net income attributable to parent | (1,036) | 234 | 1,950 | ||||||||
Available-for-sale securities | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Gain (loss) on sale of available-for-sale securities, net | (1,536) | 650 | 3,875 | ||||||||
Income from continuing operations, before income taxes | (1,536) | 650 | 3,875 | ||||||||
Income tax expense | 369 | (152) | (908) | ||||||||
Net income attributable to parent | (1,167) | 498 | 2,967 | ||||||||
Defined benefit pension plan items | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Salaries and employee benefits | (117) | (429) | (507) | ||||||||
Income from continuing operations, before income taxes | (117) | (429) | (507) | ||||||||
Income tax expense | 28 | 103 | 119 | ||||||||
Net income attributable to parent | (89) | (326) | (388) | ||||||||
Investment hedge | Amount Reclassified from AOCI | |||||||||||
Comprehensive Income | |||||||||||
Interest on investment securities | 289 | 83 | (862) | ||||||||
Income from continuing operations, before income taxes | 289 | 83 | (862) | ||||||||
Income tax expense | (69) | (21) | 233 | ||||||||
Net income attributable to parent | $ 220 | $ 62 | $ (629) |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (AOCI) | |||
Beginning balance | $ 261,391 | $ 275,303 | $ 239,483 |
Other comprehensive income (loss) before reclassification | 7,837 | (33,864) | |
Amounts reclassified from AOCI | 1,036 | (234) | |
Total other comprehensive income (loss), net of tax | 8,873 | (34,098) | (5,832) |
Ending balance | 289,342 | 261,391 | 275,303 |
AOCI attributable to parent | |||
Accumulated Other Comprehensive Income (AOCI) | |||
Beginning balance | (37,704) | (3,606) | 2,226 |
Total other comprehensive income (loss), net of tax | 8,873 | (34,098) | (5,832) |
Ending balance | (28,831) | (37,704) | (3,606) |
Unrealized gains (losses) on available for-sale securities | |||
Accumulated Other Comprehensive Income (AOCI) | |||
Beginning balance | (34,829) | 147 | |
Other comprehensive income (loss) before reclassification | 7,791 | (34,478) | |
Amounts reclassified from AOCI | 1,167 | (498) | |
Total other comprehensive income (loss), net of tax | 8,958 | (34,976) | |
Ending balance | (25,871) | (34,829) | 147 |
Defined benefit pension plan items | |||
Accumulated Other Comprehensive Income (AOCI) | |||
Beginning balance | (3,129) | (4,069) | |
Other comprehensive income (loss) before reclassification | 46 | 614 | |
Amounts reclassified from AOCI | 89 | 326 | |
Total other comprehensive income (loss), net of tax | 135 | 940 | |
Ending balance | (2,994) | (3,129) | (4,069) |
Investment hedge | |||
Accumulated Other Comprehensive Income (AOCI) | |||
Beginning balance | 254 | 316 | |
Other comprehensive income (loss) before reclassification | 0 | 0 | |
Amounts reclassified from AOCI | (220) | (62) | |
Total other comprehensive income (loss), net of tax | (220) | (62) | |
Ending balance | $ 34 | $ 254 | $ 316 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Equity method investments | $ 75,754 | $ 76,223 |
TOTAL ASSETS | 3,313,882 | 3,068,850 |
Liabilities and stockholders’ equity | ||
Senior term loan | 6,786 | 9,765 |
Total liabilities | 3,024,540 | 2,807,459 |
Total stockholders’ equity | 289,384 | 261,084 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 3,313,882 | 3,068,850 |
Parent Company | ||
Assets | ||
Cash | 8,590 | 31,085 |
Investment in subsidiaries | 319,504 | 277,173 |
Debt and equity securities | 2,400 | 4,904 |
Equity method investments | 54,199 | 50,976 |
Other assets | 14,835 | 11,033 |
TOTAL ASSETS | 399,528 | 375,171 |
Liabilities and stockholders’ equity | ||
Other liabilities | 29,818 | 31,036 |
Senior term loan | 6,786 | 9,765 |
Subordinated debt | 73,540 | 73,286 |
Total liabilities | 110,144 | 114,087 |
Total stockholders’ equity | 289,384 | 261,084 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 399,528 | $ 375,171 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Statements of income | |||||||||||
Income taxes | $ 5,070 | $ 3,294 | $ 9,641 | ||||||||
Equity in undistributed income earnings of subsidiaries | (2,499) | (713) | 17,428 | ||||||||
Net income attributable to parent | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | 31,232 | 15,047 | 39,121 |
Preferred dividends | 0 | 0 | 35 | ||||||||
Net income available to common shareholders | 31,232 | 15,047 | 39,086 | ||||||||
Parent Company | |||||||||||
Condensed Statements of income | |||||||||||
Income, dividends from the Bank | 23,014 | 50,985 | 19,165 | ||||||||
Operating expenses | 27,002 | 27,774 | 22,458 | ||||||||
Income (loss), before income taxes | (3,988) | 23,211 | (3,293) | ||||||||
Income taxes | (4,050) | (3,450) | (2,090) | ||||||||
Net income (loss) | 62 | 26,661 | (1,203) | ||||||||
Equity in undistributed income earnings of subsidiaries | 31,170 | (11,614) | 40,324 | ||||||||
Net income attributable to parent | 31,232 | 15,047 | 39,121 | ||||||||
Preferred dividends | 0 | 0 | 35 | ||||||||
Net income available to common shareholders | $ 31,232 | $ 15,047 | $ 39,086 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 31,232 | $ 15,047 | $ 39,121 |
Equity in undistributed earnings of subsidiaries | 2,499 | 713 | (17,428) | ||||||||
Stock-based compensation | 2,658 | 2,800 | 2,634 | ||||||||
Depreciation and amortization | 5,003 | 5,322 | 4,198 | ||||||||
Other assets | (6,925) | (2,438) | (1,440) | ||||||||
Other liabilities | 1,657 | (12,426) | 2,689 | ||||||||
Net cash from operating activities | 58,233 | 7,353 | 34,815 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Net cash from investing activities | 88,249 | (571,127) | (571,954) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Preferred stock redemption | 0 | 0 | (7,334) | ||||||||
Common stock options exercised | 637 | 2,069 | 4,930 | ||||||||
Withholding cash issued in lieu of restricted stock | (846) | (670) | (249) | ||||||||
Issuance of subsidiary membership units | 0 | 0 | 500 | ||||||||
Principal payments on senior term loan | (3,030) | (125) | 0 | ||||||||
Stock purchase from noncontrolling interest | 0 | (41) | 0 | ||||||||
Cash dividends paid on common stock | (8,639) | (8,355) | (6,038) | ||||||||
Cash dividends paid on preferred stock | 0 | 0 | (35) | ||||||||
Net cash from financing activities | 211,467 | 296,617 | 580,683 | ||||||||
Net change in cash and cash equivalents | 357,949 | (267,157) | 43,544 | ||||||||
Cash and cash equivalents, beginning of period | 40,280 | 307,437 | 40,280 | 307,437 | 263,893 | ||||||
Cash and cash equivalents, end of period | 398,229 | 40,280 | 398,229 | 40,280 | 307,437 | ||||||
Parent Company | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income (loss) | 31,232 | 15,047 | 39,121 | ||||||||
Equity in undistributed earnings of subsidiaries | (31,170) | 11,614 | (40,324) | ||||||||
Stock-based compensation | 3,392 | 3,217 | 3,208 | ||||||||
Depreciation and amortization | 305 | 269 | 175 | ||||||||
Other assets | (11,638) | (45,406) | (6,849) | ||||||||
Other liabilities | (2,887) | 16,358 | 11,215 | ||||||||
Net cash from operating activities | (10,766) | 1,099 | 6,546 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Investment in subsidiaries | 150 | (240) | (15,871) | ||||||||
Net cash from investing activities | 150 | (240) | (15,871) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Preferred stock redemption | 0 | 0 | (7,334) | ||||||||
Common stock options exercised | 637 | 2,069 | 4,930 | ||||||||
Withholding cash issued in lieu of restricted stock | (847) | (670) | (249) | ||||||||
Issuance of subsidiary membership units | 0 | 0 | 500 | ||||||||
Principal payments on senior term loan | (3,030) | (125) | 0 | ||||||||
Stock purchase from noncontrolling interest | 0 | (33) | 0 | ||||||||
Cash dividends paid on common stock | (8,639) | (8,355) | (6,038) | ||||||||
Cash dividends paid on preferred stock | 0 | 0 | (35) | ||||||||
Net cash from financing activities | (11,879) | 2,763 | 21,222 | ||||||||
Net change in cash and cash equivalents | (22,495) | 3,622 | 11,897 | ||||||||
Cash and cash equivalents, beginning of period | $ 31,085 | $ 27,463 | 31,085 | 27,463 | 15,566 | ||||||
Cash and cash equivalents, end of period | $ 8,590 | $ 31,085 | 8,590 | 31,085 | 27,463 | ||||||
Parent Company | Secured Debt | |||||||||||
FINANCING ACTIVITIES | |||||||||||
Issuance of debt, net of issuance costs | 0 | 9,877 | 0 | ||||||||
Parent Company | Subordinated Debt | |||||||||||
FINANCING ACTIVITIES | |||||||||||
Issuance of debt, net of issuance costs | $ 0 | $ 0 | $ 29,448 |
Segment Reporting - Reportable
Segment Reporting - Reportable Segments and Reconciliation (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Information About the Reportable Segments | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Interest income | $ 49,699 | $ 48,325 | $ 47,031 | $ 44,763 | $ 40,702 | $ 33,903 | $ 28,090 | $ 23,262 | $ 189,818 | $ 125,957 | $ 83,429 |
Interest expense | 66,535 | 14,154 | 6,270 | ||||||||
NET INTEREST INCOME | 31,107 | 29,865 | 29,582 | 32,729 | 33,449 | 29,846 | 26,660 | 21,848 | 123,283 | 111,803 | 77,159 |
Provision (Release of) for (loan) credit losses | (1,921) | 14,194 | (6,275) | ||||||||
Net interest income after provision (release of allowance) for credit losses | 125,204 | 97,609 | 83,434 | ||||||||
Revenues | |||||||||||
Total noninterest income | 19,715 | 27,565 | 55,853 | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 63,371 | 62,534 | 52,965 | ||||||||
Other expenses | 54,254 | 47,612 | 38,843 | ||||||||
Total noninterest expense | 117,625 | 110,146 | 91,808 | ||||||||
Income from continuing operations, before income taxes | 27,294 | 15,028 | 47,479 | ||||||||
Income taxes | 5,070 | 3,294 | 9,641 | ||||||||
Net income from continuing operations | 22,224 | 11,734 | 37,838 | ||||||||
Income from discontinued operations, before income taxes | 11,831 | 3,487 | 1,099 | ||||||||
Income taxes | 3,049 | 834 | 241 | ||||||||
Net income from discontinued operations | 8,782 | 2,653 | 858 | ||||||||
Net income | 31,006 | 14,387 | 38,696 | ||||||||
Net loss attributable to noncontrolling interest | 226 | 660 | 425 | ||||||||
Net income attributable to parent | 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | 31,232 | 15,047 | 39,121 |
Preferred dividends | 0 | 0 | 35 | ||||||||
Net income available to common shareholders | 31,232 | 15,047 | 39,086 | ||||||||
Capital expenditures | 1,915 | 3,041 | 5,364 | ||||||||
Total assets | 3,313,882 | 3,068,850 | 3,313,882 | 3,068,850 | |||||||
Goodwill | 2,838 | 2,838 | 2,838 | 2,838 | |||||||
Operating Segments | CoRe Banking | |||||||||||
Information About the Reportable Segments | |||||||||||
Interest income | 189,498 | 125,426 | 83,023 | ||||||||
Interest expense | 62,507 | 10,920 | 4,078 | ||||||||
NET INTEREST INCOME | 126,991 | 114,506 | 78,945 | ||||||||
Provision (Release of) for (loan) credit losses | (1,921) | 14,194 | (6,274) | ||||||||
Net interest income after provision (release of allowance) for credit losses | 128,912 | 100,312 | 85,219 | ||||||||
Revenues | |||||||||||
Total noninterest income | 17,286 | 22,673 | 33,179 | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 37,265 | 36,960 | 33,595 | ||||||||
Other expenses | 53,221 | 44,873 | 37,033 | ||||||||
Total noninterest expense | 90,486 | 81,833 | 70,628 | ||||||||
Income from continuing operations, before income taxes | 55,712 | 41,152 | 47,770 | ||||||||
Income taxes | 12,342 | 8,882 | 9,154 | ||||||||
Net income from continuing operations | 43,370 | 32,270 | 38,616 | ||||||||
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 | 43,370 | 32,270 | 38,616 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to parent | 38,616 | ||||||||||
Preferred dividends | 0 | ||||||||||
Net income available to common shareholders | 43,370 | 32,270 | 38,616 | ||||||||
Capital expenditures | 914 | 400 | 2,590 | ||||||||
Total assets | 3,255,369 | 3,014,475 | 3,255,369 | 3,014,475 | |||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||
Operating Segments | Mortgage Banking | |||||||||||
Information About the Reportable Segments | |||||||||||
Interest income | 416 | 429 | 411 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
NET INTEREST INCOME | 416 | 429 | 411 | ||||||||
Provision (Release of) for (loan) credit losses | 0 | 0 | (1) | ||||||||
Net interest income after provision (release of allowance) for credit losses | 416 | 429 | 412 | ||||||||
Revenues | |||||||||||
Total noninterest income | (2,486) | 37 | 16,342 | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 7 | 8 | 0 | ||||||||
Other expenses | 65 | 142 | 16 | ||||||||
Total noninterest expense | 72 | 150 | 16 | ||||||||
Income from continuing operations, before income taxes | (2,142) | 316 | 16,738 | ||||||||
Income taxes | (557) | 77 | 4,068 | ||||||||
Net income from continuing operations | (1,585) | 239 | 12,670 | ||||||||
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 | (1,585) | 239 | 12,670 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to parent | 12,670 | ||||||||||
Preferred dividends | 0 | ||||||||||
Net income available to common shareholders | (1,585) | 239 | 12,670 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Total assets | 83,909 | 34,248 | 83,909 | 34,248 | |||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||
Operating Segments | Financial Holding Company | |||||||||||
Information About the Reportable Segments | |||||||||||
Interest income | 41 | 146 | 15 | ||||||||
Interest expense | 3,985 | 3,234 | 2,188 | ||||||||
NET INTEREST INCOME | (3,944) | (3,088) | (2,173) | ||||||||
Provision (Release of) for (loan) credit losses | 0 | 0 | 0 | ||||||||
Net interest income after provision (release of allowance) for credit losses | (3,944) | (3,088) | (2,173) | ||||||||
Revenues | |||||||||||
Total noninterest income | 10,453 | 10,576 | 11,103 | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 17,041 | 16,582 | 13,704 | ||||||||
Other expenses | 8,233 | 8,049 | 6,573 | ||||||||
Total noninterest expense | 25,274 | 24,631 | 20,277 | ||||||||
Income from continuing operations, before income taxes | (18,765) | (17,143) | (11,347) | ||||||||
Income taxes | (4,923) | (3,472) | (2,091) | ||||||||
Net income from continuing operations | (13,842) | (13,671) | (9,256) | ||||||||
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 | (13,842) | (13,671) | (9,256) | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to parent | (9,256) | ||||||||||
Preferred dividends | 35 | ||||||||||
Net income available to common shareholders | (13,842) | (13,671) | (9,291) | ||||||||
Capital expenditures | 58 | 413 | 43 | ||||||||
Total assets | 345,314 | 375,171 | 345,314 | 375,171 | |||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||
Operating Segments | Other | |||||||||||
Information About the Reportable Segments | |||||||||||
Interest income | 0 | 0 | (8) | ||||||||
Interest expense | 180 | 44 | 16 | ||||||||
NET INTEREST INCOME | (180) | (44) | (24) | ||||||||
Provision (Release of) for (loan) credit losses | 0 | 0 | 0 | ||||||||
Net interest income after provision (release of allowance) for credit losses | (180) | (44) | (24) | ||||||||
Revenues | |||||||||||
Total noninterest income | 9,138 | 6,120 | 3,575 | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 9,058 | 8,984 | 5,666 | ||||||||
Other expenses | 7,411 | 6,389 | 3,567 | ||||||||
Total noninterest expense | 16,469 | 15,373 | 9,233 | ||||||||
Income from continuing operations, before income taxes | (7,511) | (9,297) | (5,682) | ||||||||
Income taxes | (1,792) | (2,193) | (1,490) | ||||||||
Net income from continuing operations | (5,719) | (7,104) | (4,192) | ||||||||
Income from discontinued operations, before income taxes | 11,831 | 3,487 | 1,099 | ||||||||
Income taxes | 3,049 | 834 | 241 | ||||||||
Net income from discontinued operations | 8,782 | 2,653 | 858 | ||||||||
Net income | 3,063 | (4,451) | (3,334) | ||||||||
Net loss attributable to noncontrolling interest | 226 | 660 | 425 | ||||||||
Net income attributable to parent | (2,909) | ||||||||||
Preferred dividends | 0 | ||||||||||
Net income available to common shareholders | 3,289 | (3,791) | (2,909) | ||||||||
Capital expenditures | 943 | 2,228 | 2,731 | ||||||||
Total assets | 17,728 | 27,075 | 17,728 | 27,075 | |||||||
Goodwill | 2,838 | 2,838 | 2,838 | 2,838 | |||||||
Intercompany Eliminations | |||||||||||
Information About the Reportable Segments | |||||||||||
Interest income | (137) | (44) | (12) | ||||||||
Interest expense | (137) | (44) | (12) | ||||||||
NET INTEREST INCOME | 0 | 0 | 0 | ||||||||
Provision (Release of) for (loan) credit losses | 0 | 0 | 0 | ||||||||
Net interest income after provision (release of allowance) for credit losses | 0 | 0 | 0 | ||||||||
Revenues | |||||||||||
Total noninterest income | (14,676) | (11,841) | (8,346) | ||||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 0 | 0 | 0 | ||||||||
Other expenses | (14,676) | (11,841) | (8,346) | ||||||||
Total noninterest expense | (14,676) | (11,841) | (8,346) | ||||||||
Income from continuing operations, before income taxes | 0 | 0 | 0 | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net income 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 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to parent | 0 | ||||||||||
Preferred dividends | 0 | ||||||||||
Net income available to common shareholders | 0 | 0 | 0 | ||||||||
Capital expenditures | 0 | 0 | $ 0 | ||||||||
Total assets | (388,438) | (382,119) | (388,438) | (382,119) | |||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 49,699 | $ 48,325 | $ 47,031 | $ 44,763 | $ 40,702 | $ 33,903 | $ 28,090 | $ 23,262 | $ 189,818 | $ 125,957 | $ 83,429 |
Net Interest Income | 31,107 | 29,865 | 29,582 | 32,729 | 33,449 | 29,846 | 26,660 | 21,848 | 123,283 | 111,803 | 77,159 |
Income Before Taxes | 9,347 | 5,090 | 9,954 | 14,734 | 8,337 | 2,952 | 3,650 | 3,576 | |||
Net income (loss) | $ 7,911 | $ 3,867 | $ 8,112 | $ 11,342 | $ 6,509 | $ 2,718 | $ 2,956 | $ 2,864 | $ 31,232 | $ 15,047 | $ 39,121 |
Earnings per common share - basic (in dollars per share) | $ 0.62 | $ 0.30 | $ 0.64 | $ 0.90 | $ 0.52 | $ 0.22 | $ 0.24 | $ 0.24 | $ 2.46 | $ 1.23 | $ 3.32 |
Earnings per common share - diluted (in dollars per share) | $ 0.61 | $ 0.29 | $ 0.63 | $ 0.87 | $ 0.50 | $ 0.21 | $ 0.23 | $ 0.22 | $ 2.40 | $ 1.17 | $ 3.10 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
May 31, 2023 USD ($) shares | Feb. 28, 2023 USD ($) payment | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Loss on divestiture activity | $ 1,100,000 | |||||
Assets from discontinued operations | $ 0 | $ 0 | $ 4,315,000 | |||
Liabilities from discontinued operations | 0 | 0 | 5,444,000 | |||
Depreciation and amortization | 5,003,000 | 5,322,000 | $ 4,198,000 | |||
Discontinued operations disposed of by sale | Chartwell | ||||||
Business Acquisition [Line Items] | ||||||
Net cash transferred for sale of discontinued operations | $ 14,400,000 | |||||
Gain (loss) on acquisition and divestiture activity | $ 11,800,000 | |||||
Interest rate on note | 7% | |||||
Annual installments on note | payment | 4 | |||||
Term of transition agreement | 60 days | |||||
Term of services and support contract | 3 years | |||||
Fees related to contract | 2,500,000 | |||||
Assets from discontinued operations | 0 | 0 | 4,315,000 | |||
Liabilities from discontinued operations | $ 0 | 0 | 5,444,000 | |||
Depreciation and amortization | $ 100,000 | $ 600,000 | ||||
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 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Assets and Liabilities, Discontinued Operations (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets from discontinued operations | $ 0 | $ 4,315,000 |
Liabilities from discontinued operations | 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 | |
Assets from discontinued operations | 0 | 4,315,000 |
Accrued interest payable and other liabilities | 5,444,000 | |
Liabilities from discontinued operations | $ 0 | $ 5,444,000 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Net Income, Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Compliance and consulting income | $ 4,312 | $ 4,598 | $ 2,557 |
Salaries and employee benefits | 63,371 | 62,534 | 52,965 |
Other expenses | 10,512 | 8,765 | 5,092 |
Total noninterest expense | 117,625 | 110,146 | 91,808 |
Income before income taxes | 11,831 | 3,487 | 1,099 |
Income taxes | 3,049 | 834 | 241 |
Net income from discontinued operations | 8,782 | 2,653 | 858 |
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 | 2,369 | 17,151 | 11,427 |
Gain on sale of discontinued operations | 11,800 | 0 | 0 |
Total income | 14,169 | 17,151 | 11,427 |
Salaries and employee benefits | 2,082 | 9,628 | 7,245 |
Other expenses | 256 | 4,036 | 3,083 |
Total noninterest expense | 2,338 | 13,664 | 10,328 |
Income before income taxes | 11,831 | 3,487 | 1,099 |
Income taxes | 3,049 | 834 | 241 |
Net income from discontinued operations | $ 8,782 | $ 2,653 | $ 858 |