Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38314 | |
Entity Registrant Name | MVB Financial Corp | |
Entity Incorporation, State or Country Code | WV | |
Entity Tax Identification Number | 20-0034461 | |
Entity Address, Address Line One | 301 Virginia Avenue | |
Entity Address, City or Town | Fairmont | |
Entity Address, State or Province | WV | |
Entity Address, Postal Zip Code | 26554 | |
City Area Code | 304 | |
Local Phone Number | 363-4800 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | MVBF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,885,752 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001277902 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 4,870 | $ 6,564 |
Interest-bearing balances with banks | 635,556 | 391,665 |
Total cash and cash equivalents | 640,426 | 398,229 |
Investment securities available-for-sale | 349,678 | 345,275 |
Equity securities | 41,037 | 41,086 |
Loans held-for-sale | 0 | 629 |
Loans receivable | 2,267,310 | 2,317,594 |
Allowance for credit losses | (22,804) | (22,124) |
Loans receivable, net | 2,244,506 | 2,295,470 |
Premises and equipment, net | 19,968 | 20,928 |
Bank-owned life insurance | 44,569 | 44,287 |
Equity method investments | 76,190 | 75,754 |
Accrued interest receivable and other assets | 131,016 | 92,224 |
TOTAL ASSETS | 3,547,390 | 3,313,882 |
Deposits: | ||
Noninterest-bearing | 1,391,070 | 1,197,272 |
Interest-bearing | 1,754,259 | 1,704,204 |
Total deposits | 3,145,329 | 2,901,476 |
Accrued interest payable and other liabilities | 26,272 | 37,917 |
Repurchase agreements | 3,810 | 4,821 |
Subordinated debt | 73,602 | 73,540 |
Senior term loan | 6,549 | 6,786 |
Total liabilities | 3,255,562 | 3,024,540 |
STOCKHOLDERS’ EQUITY | ||
Common stock - par value $1; 40,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 13,688,899 and 12,840,883 shares issued and outstanding, respectively, as of March 31, 2024 and 13,606,399 and 12,758,383 shares issued and outstanding, respectively, as of December 31, 2023 | 13,689 | 13,606 |
Additional paid-in capital | 162,502 | 160,488 |
Retained earnings | 163,199 | 160,862 |
Accumulated other comprehensive loss | (30,799) | (28,831) |
Treasury stock - 848,016 shares as of March 31, 2024 and December 31, 2023, at cost | (16,741) | (16,741) |
Total equity attributable to parent | 291,850 | 289,384 |
Noncontrolling interest | (22) | (42) |
Total stockholders' equity | 291,828 | 289,342 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,547,390 | $ 3,313,882 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 13,688,899 | 13,606,399 |
Common stock, shares outstanding (in shares) | 12,840,883 | 12,758,383 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 40,216 | $ 38,695 |
Interest on deposits with banks | 7,341 | 3,153 |
Interest on investment securities | 1,743 | 1,848 |
Interest on tax-exempt loans and securities | 730 | 1,067 |
Total interest income | 50,030 | 44,763 |
INTEREST EXPENSE | ||
Interest on deposits | 18,931 | 10,153 |
Interest on short-term borrowings | 1 | 888 |
Interest on subordinated debt | 809 | 799 |
Interest on senior term loan | 150 | 194 |
Total interest expense | 19,891 | 12,034 |
NET INTEREST INCOME | 30,139 | 32,729 |
Provision for credit losses | 1,997 | 4,576 |
Net interest income after provision for credit losses | 28,142 | 28,153 |
NONINTEREST INCOME | ||
Payment card and service charge income | 4,813 | 3,610 |
Insurance and investment services income | 66 | 92 |
Gain (loss) on sale of available-for-sale securities, net | 658 | (1,536) |
Loss on derivatives, net | 0 | (100) |
Loss on sale of loans, net | 0 | (356) |
Holding loss on equity securities | (49) | (308) |
Compliance and consulting income | 1,000 | 1,016 |
Equity method investments loss | (1,128) | (1,193) |
Other operating income | 2,474 | 1,842 |
Total noninterest income | 7,834 | 3,067 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 16,489 | 16,746 |
Occupancy expense | 864 | 792 |
Equipment depreciation and maintenance | 1,216 | 1,457 |
Data processing and communications | 1,459 | 1,148 |
Professional fees | 5,737 | 2,951 |
Insurance, tax and assessment expense | 892 | 904 |
Travel, entertainment, dues and subscriptions | 1,551 | 1,922 |
Other operating expenses | 1,983 | 2,397 |
Total noninterest expense | 30,191 | 28,317 |
Income from continuing operations, before income taxes | 5,785 | 2,903 |
Income taxes | 1,283 | 465 |
Net income from continuing operations | 4,502 | 2,438 |
Income from discontinued operations, before income taxes | 0 | 11,831 |
Income taxes from discontinued operations | 0 | 3,049 |
Net income from discontinued operations | 0 | 8,782 |
Net income, before noncontrolling interest | 4,502 | 11,220 |
Net (income) loss attributable to noncontrolling interest | (20) | 122 |
Net income attributable to parent | $ 4,482 | $ 11,342 |
Earnings per share from continuing operations - basic (in dollars per share) | $ 0.35 | $ 0.20 |
Earnings per share from discontinued operations - basic (in dollars per share) | 0 | 0.70 |
Earnings per common shareholder - basic (in dollars per share) | 0.35 | 0.90 |
Earnings per share from continuing operations - diluted (in dollars per share) | 0.34 | 0.20 |
Earnings per share from discontinued operations - diluted (in dollars per share) | 0 | 0.67 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.34 | $ 0.87 |
Weighted-average shares outstanding - basic (in shares) | 12,810,956 | 12,623,361 |
Weighted-average shares outstanding - diluted (in shares) | 13,119,292 | 13,016,082 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income, before noncontrolling interest | $ 4,502 | $ 11,220 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) on securities available-for-sale | (2,576) | 7,704 |
Reclassification adjustment for (gain) loss recognized in income | (658) | 1,536 |
Change in defined benefit pension plan | 601 | (28) |
Reclassification adjustment for amortization of net actuarial loss recognized in income | 43 | 29 |
Reclassification adjustment for investment hedge carrying value adjustment recognized in income | 0 | (334) |
Other comprehensive income (loss), before tax | (2,590) | 8,907 |
Income taxes related to items of other comprehensive loss: | ||
Unrealized holding gains (losses) on securities available-for-sale | 619 | (1,852) |
Reclassification adjustment for (gain) loss recognized in income | 158 | (369) |
Change in defined benefit pension plan | (145) | 7 |
Reclassification adjustment for amortization of net actuarial loss recognized in income | (10) | (7) |
Reclassification adjustment for investment hedge carrying value adjustment recognized in income | 0 | 80 |
Income taxes related to items of other comprehensive loss: | 622 | (2,141) |
Total other comprehensive income (loss), net of tax | (1,968) | 6,766 |
Comprehensive (income) loss attributable to noncontrolling interest | (20) | 122 |
Comprehensive income | $ 2,514 | $ 18,108 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Impact of adopting ASC 326, net of tax | Total stockholders' equity attributable to parent | Total stockholders' equity attributable to parent Impact of adopting ASC 326, net of tax | Common stock | Additional paid-in capital | Retained earnings | Retained earnings Impact of adopting ASC 326, net of tax | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2022 | 13,466,281 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 848,016 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 261,391 | $ (6,642) | $ 261,084 | $ (6,642) | $ 13,466 | $ 157,152 | $ 144,911 | $ (6,642) | $ (37,704) | $ (16,741) | $ 307 |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income (loss) | 11,220 | 11,342 | 11,342 | (122) | |||||||
Other comprehensive (loss) income | 6,766 | 6,766 | 6,766 | ||||||||
Dividends on common stock | (2,146) | (2,146) | (2,146) | ||||||||
Stock-based compensation | 831 | 831 | 831 | ||||||||
Stock-based compensation related to equity method investment | 69 | 69 | 69 | ||||||||
Common stock options exercised (in shares) | 4,450 | ||||||||||
Common stock options exercised | 70 | 70 | $ 4 | 66 | |||||||
Restricted stock units issued (in shares) | 43,882 | ||||||||||
Restricted stock units issued | 0 | 0 | $ 44 | (44) | |||||||
Minimum tax withholding on restricted stock units issued (in shares) | (13,416) | ||||||||||
Minimum tax withholding on restricted stock units issued | (243) | (243) | $ (13) | (230) | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 13,501,197 | ||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 848,016 | ||||||||||
Ending balance at Mar. 31, 2023 | $ 271,316 | 271,131 | $ 13,501 | 157,844 | 147,465 | (30,938) | $ (16,741) | 185 | |||
Beginning balance (in shares) at Dec. 31, 2023 | 12,758,383 | 13,606,399 | |||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 848,016 | 848,016 | |||||||||
Beginning balance at Dec. 31, 2023 | $ 289,342 | 289,384 | $ 13,606 | 160,488 | 160,862 | (28,831) | $ (16,741) | (42) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income (loss) | 4,502 | 4,482 | 4,482 | 20 | |||||||
Other comprehensive (loss) income | (1,968) | (1,968) | (1,968) | ||||||||
Dividends on common stock | (2,145) | (2,145) | (2,145) | ||||||||
Stock-based compensation | 780 | 780 | 780 | ||||||||
Stock-based compensation related to equity method investment | 104 | 104 | 104 | ||||||||
Common stock options exercised (in shares) | 82,500 | ||||||||||
Common stock options exercised | $ 1,213 | 1,213 | $ 83 | 1,130 | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 12,840,883 | 13,688,899 | |||||||||
Ending balance (in shares) at Mar. 31, 2024 | 848,016 | 848,016 | |||||||||
Ending balance at Mar. 31, 2024 | $ 291,828 | $ 291,850 | $ 13,689 | $ 162,502 | $ 163,199 | $ (30,799) | $ (16,741) | $ (22) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 0.17 | $ 0.17 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES | ||
Net income, before noncontrolling interest | $ 4,502 | $ 11,220 |
Adjustments to reconcile net income, before noncontrolling interest, to net cash from operating activities: | ||
Net amortization and accretion of investments | 525 | 569 |
Net amortization of deferred loan costs | 320 | 541 |
Provision for credit losses | 1,997 | 4,576 |
Depreciation and amortization | 1,102 | 1,424 |
Stock-based compensation | 780 | 831 |
Stock-based compensation related to equity method investments | 104 | 69 |
Loans originated for sale | 0 | (402) |
Proceeds of loans held-for-sale sold | 0 | 3,551 |
Holding loss on equity securities | 49 | 308 |
(Gain) loss on sale of available-for-sale securities, net | (658) | 1,536 |
Gain on sale of loans held-for-sale | 0 | (205) |
Loss on sale of loans held-for-investment | 0 | 561 |
Gain on sale of discontinued operations | 0 | (11,800) |
Gain on sale of other real estate owned | 0 | (137) |
Income on bank-owned life insurance | (282) | (260) |
Deferred income taxes | 20 | 22 |
Equity method investments loss | 1,128 | 1,193 |
Other assets | (23,847) | (24,180) |
Other liabilities | (11,001) | 5,812 |
Net cash from operating activities | (25,261) | (4,771) |
INVESTING ACTIVITIES | ||
Purchases of available-for-sale investment securities | (34,833) | (10,417) |
Net maturities/paydowns of available-for-sale investment securities | 2,075 | 3,503 |
Sales of available-for-sale investment securities | 11,711 | 54,531 |
Purchases of premises and equipment | (921) | (908) |
Disposals of premises and equipment | 54 | 427 |
Net change in loans | 49,276 | 25,378 |
Proceeds of loans held-for-investment sold | 0 | 130 |
Proceeds from sale of other real estate owned | 0 | 374 |
Investment in equity method investments | (1,564) | (119) |
Purchase of equity securities | 0 | (140) |
Net cash transferred for sale of discontinued operations | 0 | (3,935) |
Net cash from investing activities | 25,798 | 68,824 |
FINANCING ACTIVITIES | ||
Net change in deposits | 243,853 | 580,333 |
Net change in repurchase agreements | (1,011) | (4,618) |
Net change in FHLB and other borrowings | 0 | (102,333) |
Principal payments on senior term loan | (250) | (131) |
Common stock options exercised | 1,213 | 70 |
Withholding cash issued in lieu of restricted stock | 0 | (243) |
Cash dividends paid on common stock | (2,145) | (2,146) |
Net cash from financing activities | 241,660 | 470,932 |
Net change in cash and cash equivalents | 242,197 | 534,985 |
Cash and cash equivalents, beginning of period | 398,229 | 40,280 |
Cash and cash equivalents, end of period | 640,426 | 575,265 |
Cash payments for: | ||
Interest on deposits, repurchase agreements and borrowings | 19,212 | 12,152 |
Income taxes | 117 | 25 |
Supplemental disclosure of cash flow information: | ||
Change in unrealized holding losses on securities available-for-sale | (4,144) | 9,241 |
Employee stock-based compensation tax withholding obligations | 0 | (13) |
Impact of adopting ASC 326, net of tax | 0 | 6,642 |
Loans transferred to (out of) loans held-for-sale | (629) | |
Loans transferred to (out of) loans held-for-sale | 232 | |
Due from broker for available-for-sale investment securities sold | $ 12,633 | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Note 1 – Nature of Operations and Basis of Presentation Business and Organization MVB Financial Corp. is a financial holding company organized in 2003 as a West Virginia corporation that operates principally through its wholly-owned subsidiary, MVB Bank, Inc. (the “Bank”). The Bank’s consolidated subsidiaries include MVB Edge Ventures, LLC (“Edge Ventures”), Paladin Fraud, LLC (“Paladin Fraud”) and MVB Insurance, LLC, (“MVB Insurance”). The Bank owns a controlling interest in Trabian Technology, Inc. (“Trabian”). Edge Ventures wholly-owns Victor Technologies, Inc. (“Victor”) and MVB Technology, LLC ("MVB Technology"). The Bank also owns an equity method investment in Intercoastal Mortgage Company, LLC (“ICM”) and MVB Financial Corp. owns equity method investments in Warp Speed Holdings, LLC (“Warp Speed”) and Ayers Socure II, LLC (“Ayers Socure II”). MVB Financial Corp.'s consolidated subsidiaries also includes SPE PR, LLC. 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, to facilitate the divestiture of our interests in the ongoing business of Flexia. Refer to Note 15 – Acquisition & Divestiture Activity . We conduct a wide range of business activities through the Bank, primarily commercial and retail (“CoRe”) banking services, as well as Fintech banking. CoRe Banking We offer our customers a full range of products and services including: l Various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; l Commercial, consumer and real estate mortgage loans and lines of credit; l Debit cards; l Cashier’s checks; and l Safe deposit rental facilities. 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, primarily focusing on operational risk management and compliance. Managing banking relationships with clients in the payments, digital assets, banking-as-a-service and gaming industries is complex, from both an operational and regulatory perspective. Due to this complexity, there are a limited number of banking institutions serving these industries, which can result in a lack of quality focus on these entities, providing us with an expanded pool of potential customers. When serviced in a safe and efficient manner, we believe these industries provide a source of stable, lower cost deposits and noninterest, fee-based income. We thoroughly analyze each industry in which our customers operate, as well as any new products or services provided, from both an operational and regulatory perspective. Principles of Consolidation and Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2023 has been derived from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2023 Form 10-K. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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 interests within our consolidated financial statements. Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of these entities. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting. Those investments that are not consolidated or accounted for using the equity method of accounting are accounted for under cost or fair value accounting. For investments accounted for under the equity method, we record our investment in non-consolidated affiliates and the portion of income or loss in equity in earnings of non-consolidated affiliates. We periodically evaluate these investments for impairment. As of March 31, 2024, we held 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. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 March 31, 2024, all loans and other relevant financial instruments that referenced LIBOR have been transitioned to the SOFR. 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 and interim periods within fiscal years beginning after December 14, 2024. 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 rate 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. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. The amendments clarify how an entity determines whether a profits interest or similar award is within the scope of Compensation - Stock Compensation (Topic 718 ) or not a share-based payment arrangements, and therefore within the scope of other guidance. The amendments are effective for fiscal years beginning after December 15, 2024. We do not currently expect these amendments to have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements 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, which collectively comprise Accounting Standards Codification Topic 326 Financial Instruments - Credit Losses ("ASC 326"). ASC 326 replaced the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and required consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an ACL. Purchased credit deteriorated (“PCD”) loans received 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 are recorded through an ACL, with such allowance limited to the amount by which fair value is below amortized cost. 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. For additional information on the new standard, see Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements included in Item 8, Financial Statements and Supplementary Data , of the 2023 Form 10-K. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2 – Investment Securities The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown: March 31, 2024 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 45,412 $ 8 $ (6,032) $ 39,388 United States sponsored mortgage-backed securities 99,792 145 (11,920) 88,017 United States treasury securities 106,324 — (5,761) 100,563 Municipal securities 117,434 — (12,943) 104,491 Corporate debt securities 9,078 — (130) 8,948 Other debt securities 7,500 — — 7,500 Total available-for-sale debt securities 385,540 153 (36,786) 348,907 Other securities 771 — — 771 Investment securities available-for-sale $ 386,311 $ 153 $ (36,786) $ 349,678 December 31, 2023 (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 available-for-sale debt securities 376,984 1,000 (33,489) 344,495 Other securities 780 — — 780 Investment securities available-for-sale $ 377,764 $ 1,000 $ (33,489) $ 345,275 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown: March 31, 2024 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 96,995 $ 86,803 After one year, but within five years 102,365 96,832 After five years, but within ten years 41,990 37,664 After ten years 144,190 127,608 Total available-for-sale debt securities $ 385,540 $ 348,907 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled. Investment securities with a carrying value of $236.3 million and $223.4 million at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window. Our investment portfolio includes securities that are in an unrealized loss position as of March 31, 2024. 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 would result in a pre-tax loss of $36.8 million if sold at March 31, 2024, 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 losses as of March 31, 2024. The following tables show available-for-sale debt securities in an unrealized loss position for which an ACL has not been recorded as of March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: March 31, 2024 (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 (26) $ 4,363 $ (21) $ 33,669 $ (6,011) United States sponsored mortgage-backed securities (54) 19,467 (146) 48,156 (11,774) United States treasury securities (23) — — 100,563 (5,761) Municipal securities (215) 555 (11) 86,573 (12,932) Corporate debt securities (7) 498 (2) 3,451 (128) Total $ 24,883 $ (180) $ 272,412 $ (36,606) December 31, 2023 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (25) $ 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) Total $ 3,172 $ (77) $ 293,311 $ (33,412) The following table summarizes investment sales, related gains and losses and unrealized holding losses for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Proceeds from sales of available-for-sale securities $ 24,344 $ 54,531 Gains, gross 658 — Losses, gross — 1,536 Unrealized holding losses on equity securities (49) (308) |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 3 – Loans and Allowance for Credit Losses The following table presents the components of loans as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Commercial: Business $ 742,369 $ 797,100 Real estate 681,067 670,584 Acquisition, development and construction 144,261 134,004 Total commercial 1,567,697 1,601,688 Residential real estate 660,444 672,547 Home equity lines of credit 13,369 14,531 Consumer 24,681 27,408 Total loans 2,266,191 2,316,174 Deferred loan origination costs, net 1,119 1,420 Loans receivable $ 2,267,310 $ 2,317,594 We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments. Our loan portfolio segmentation is 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. As of March 31, 2024, the Bank’s other real estate owned balance totaled $0.8 million, all of which was related to our acquisition of The First State Bank (“First State”) in 2020. The other real estate owned balance consisted of two unrelated commercial properties. As of March 31, 2024, there was one residential mortgage in the process of foreclosure with loan balances totaling $0.2 million. Bank management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. Loans categorized as “Pass” rated have adequate sources of repayment, with little identifiable risk of collection and general conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. Loans categorized as “Special Mention” rated have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. Loans categorized as “Substandard” rated are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans categorized as “Doubtful” rated have all the weakness inherent in those classified Substandard with the added characteristic that the weakness makes collections or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. 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) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total March 31, 2024 Commercial business: Risk rating: Pass $ 11,058 $ 148,499 $ 230,313 $ 71,110 $ 30,347 $ 119,528 $ 85,322 $ — $ 696,177 Special Mention — — 29,776 185 817 4,094 — — 34,872 Substandard — 1,250 1,227 691 — 4,349 808 — 8,325 Doubtful — — 924 779 264 1,028 — — 2,995 Total commercial business loans $ 11,058 $ 149,749 $ 262,240 $ 72,765 $ 31,428 $ 128,999 $ 86,130 $ — $ 742,369 Gross charge-offs $ — $ — $ 614 $ — $ — $ 367 $ — $ — $ 981 Commercial real estate: Risk rating: Pass $ 37,733 $ 112,029 $ 134,778 $ 191,268 $ 11,813 $ 131,047 $ 518 $ — $ 619,186 Special Mention — — — 25,919 — 17,150 — — 43,069 Substandard — — — — — 18,812 — — 18,812 Doubtful — — — — — — — — — Total commercial real estate loans $ 37,733 $ 112,029 $ 134,778 $ 217,187 $ 11,813 $ 167,009 $ 518 $ — $ 681,067 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 5,146 $ 6,592 $ 56,763 $ 30,552 $ 23,656 $ 3,692 $ 2,500 $ — $ 128,901 Special Mention — — — — — — — — — Substandard — — — 14,652 — 708 — — 15,360 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 5,146 $ 6,592 $ 56,763 $ 45,204 $ 23,656 $ 4,400 $ 2,500 $ — $ 144,261 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential Real Estate: Risk rating: Pass $ 8,946 $ 56,959 $ 417,220 $ 104,709 $ 34,748 $ 28,585 $ 2,705 $ — $ 653,872 Special Mention — — — — 4,118 1,161 — — 5,279 Substandard — — — — 81 787 120 — 988 Doubtful — — — 211 — 94 — — 305 Total residential real estate loans $ 8,946 $ 56,959 $ 417,220 $ 104,920 $ 38,947 $ 30,627 $ 2,825 $ — $ 660,444 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total March 31, 2024 Home equity lines of credit: Risk rating: Pass $ — $ 58 $ 36 $ — $ — $ 11 $ 12,828 $ — $ 12,933 Special Mention — — — — — — 271 — 271 Substandard — — — — — — 165 — 165 Doubtful — — — — — — — — — Total home equity lines of credit loans $ — $ 58 $ 36 $ — $ — $ 11 $ 13,264 $ — $ 13,369 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ — $ 2,040 $ 17,093 $ 5,243 $ — $ 55 $ 30 $ — $ 24,461 Special Mention — — — — — — — — — Substandard — 21 189 10 — — — — 220 Doubtful — — — — — — — — — Total consumer loans $ — $ 2,061 $ 17,282 $ 5,253 $ — $ 55 $ 30 $ — $ 24,681 Gross charge-offs $ — $ 189 $ 833 $ 147 $ — $ — $ — $ — $ 1,169 Total: Risk rating: Pass $ 62,883 $ 326,177 $ 856,203 $ 402,882 $ 100,564 $ 282,918 $ 103,903 $ — $ 2,135,530 Special Mention — — 29,776 26,104 4,935 22,405 271 — 83,491 Substandard — 1,271 1,416 15,353 81 24,656 1,093 — 43,870 Doubtful — — 924 990 264 1,122 — — 3,300 Total loans $ 62,883 $ 327,448 $ 888,319 $ 445,329 $ 105,844 $ 331,101 $ 105,267 $ — $ 2,266,191 Gross charge-offs $ — $ 189 $ 1,447 $ 147 $ — $ 367 $ — $ — $ 2,150 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 $ — $ — $ — $ — $ — $ — $ — $ — $ — 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 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 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 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 March 31, 2024 Commercial Business $ 735,578 $ 3,088 $ 549 $ 3,154 $ 6,791 $ 742,369 $ 4,859 $ — $ 1,983 $ — Real estate 678,997 2,070 — — 2,070 681,067 — — — — Acquisition, development and construction 129,609 — 14,652 — 14,652 144,261 708 — 708 — Total commercial 1,544,184 5,158 15,201 3,154 23,513 1,567,697 5,567 — 2,691 — Residential real estate 658,397 125 324 1,598 2,047 660,444 1,678 — 404 — Home equity lines of credit 13,264 105 — — 105 13,369 81 — — — Consumer 22,538 1,513 410 220 2,143 24,681 220 — — — Total loans $ 2,238,383 $ 6,901 $ 15,935 $ 4,972 $ 27,808 $ 2,266,191 $ 7,546 $ — $ 3,095 $ — 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 real estate 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 ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the ACL when management believes the loan balance is uncollectible. Accrued interest receivable is excluded from the estimate of credit losses. Management determines the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit behaviors along with model judgments provide the basis for the estimation of expected credit losses. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term, as well as for changes in environmental conditions, such as changes in economic conditions, property values or other relevant factors. The Bank’s methodology for determining the ACL is based on the requirements of ASC 326. The ACL is calculated on a collective basis when similar risk characteristics exist. The ACL for the majority of loans and leases was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a one-year straight-line reversion period with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type. Expected credit loss rates were estimated using a regression model based on historical data from peer banks which incorporates a third-party vendor’s economic forecast to predict the change in credit losses. As of March 31, 2024, the Bank expects the markets in which it operates will experience economic improvements over the next one to two years. The ACL for only one portfolio segment consisting entirely of automotive loans to consumers was calculated under the remaining life methodology using straight-line amortization over the remaining life of the portfolio. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When Bank management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of the periods shown: (Dollars in thousands) Real Estate Vehicles and Equipment Assignment of Cash Flow Accounts Receivable Other Totals Allowance for Credit Losses March 31, 2024 Commercial Business $ 16,209 $ 2,732 $ — $ 442 $ 695 $ 20,078 $ 2,958 Real estate — — — — — — — Acquisition, development and construction — — — — — — — Total commercial $ 16,209 $ 2,732 $ — $ 442 $ 695 $ 20,078 $ 2,958 Residential 1,387 — — — — 1,387 35 Home equity lines of credit — — — — — — — Consumer — 220 — — — 220 146 Total $ 17,596 $ 2,952 $ — $ 442 $ 695 $ 21,685 $ 3,139 Collateral value $ 34,924 $ 2,393 $ — $ 38 $ — $ 37,355 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 March 31, 2024 and December 31, 2023. 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 Current Expected Credit Losses 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. 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 March 31, 2024 and December 31, 2023, the liability for unfunded commitments related to loans held-for-investment was $1.0 million. Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL. The following table presents the balance and activity for the primary segments of the ACL as of the periods shown: Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ACL at December 31, 2023 $ 7,931 $ 2,931 $ 1,674 $ 12,536 $ 6,412 $ 97 $ 3,079 $ 22,124 Provision (release of allowance) for credit losses 1,297 365 447 2,109 (145) (8) 39 1,995 Charge-offs (981) — — (981) — — (1,169) (2,150) Recoveries 42 8 — 50 35 1 749 835 ACL at March 31, 2024 $ 8,289 $ 3,304 $ 2,121 $ 13,714 $ 6,302 $ 90 $ 2,698 $ 22,804 Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL, prior to adoption of ASC 326, at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Impact of adopting ASC 326 (126) (2,846) 288 (2,684) 3,889 (5) 6,482 7,682 Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Provision (release of allowance) for credit losses 681 313 288 1,282 364 (8) 2,817 4,455 Charge-offs (141) — — (141) (22) — (4,684) (4,847) Recoveries 23 6 — 29 — 1 3,139 3,169 ACL balance at March 31, 2023 $ 9,918 $ 3,177 $ 1,640 $ 14,735 $ 7,618 $ 119 $ 13,041 $ 35,513 During the three months ended March 31, 2024, there were charge offs totaling $2.2 million. For the three months ended March 31, 2024, $1.2 million, or 55%, of charge offs were related to the subprime consumer automotive segment, $0.6 million, or 27%, was related to a commercial note secured by business assets and $0.4 million, or 18%, was related to a commercial note secured by heavy equipment. During the three months ended March 31, 2024, the provision related to unfunded commitments was not significant. 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 table summarize the amortized cost basis of loans that were modified as of the period shown: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable March 31, 2024 Commercial Business $ — $ 1,377 $ — $ — $ 1,377 — % Real estate — — — — — — % Total commercial — 1,377 — — 1,377 — % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 1,377 $ — $ — $ 1,377 — % The above table presents the amortized cost basis of loans at March 31, 2024 that were experiencing financial difficulty and modified during the three months ended March 31, 2024, 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. Six loans to six borrowers received payment delay modifications in the three months ended March 31, 2024, including six commercial loans with government guarantees totaling $1.4 million. There were no loans that were experiencing financial difficulty and modified during the three months ended March 31, 2023. The Bank closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. 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. There were no loans that had a payment default and were modified prior to that default to borrowers experiencing financial difficulty in the three months ended March 31, 2024 and March 31, 2023. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Land $ 4,062 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 15,762 18,300 Software 6,592 7,140 Construction in progress 3 45 Leasehold improvements 2,836 2,836 42,648 45,179 Accumulated depreciation (22,680) (24,251) Premises and equipment, net $ 19,968 $ 20,928 We lease certain premises and equipment under operating and finance leases. At March 31, 2024, we had lease liabilities totaling $13.7 million and right-of-use assets totaling $12.5 million , substantially all of which was related to operating leases. At March 31, 2024, the weighted-average remaining lease term for operating leases was 10.4 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.1%. 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%. Lease liabilities and right-of-use assets are reflected in accrued interest payable and other liabilities accrued interest receivable and other assets . The following table presents lease costs for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amortization of right-of-use assets, finance leases $ 1 $ 6 Operating lease cost 450 450 Short-term lease cost — 5 Variable lease cost — 10 Sublease income (97) (87) Total lease cost $ 354 $ 384 For operating leases with initial or remaining terms of one year or more as of March 31, 2024, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases 2025 $ 1,326 2026 1,738 2027 1,611 2028 1,641 2029 1,629 2030 and thereafter 8,320 Total future minimum lease payments $ 16,265 Less: Amounts representing interest (2,593) Present value of net future minimum lease payments $ 13,672 Future minimum payments on finance leases were not material as of March 31, 2024. |
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Land $ 4,062 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 15,762 18,300 Software 6,592 7,140 Construction in progress 3 45 Leasehold improvements 2,836 2,836 42,648 45,179 Accumulated depreciation (22,680) (24,251) Premises and equipment, net $ 19,968 $ 20,928 We lease certain premises and equipment under operating and finance leases. At March 31, 2024, we had lease liabilities totaling $13.7 million and right-of-use assets totaling $12.5 million , substantially all of which was related to operating leases. At March 31, 2024, the weighted-average remaining lease term for operating leases was 10.4 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.1%. 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%. Lease liabilities and right-of-use assets are reflected in accrued interest payable and other liabilities accrued interest receivable and other assets . The following table presents lease costs for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amortization of right-of-use assets, finance leases $ 1 $ 6 Operating lease cost 450 450 Short-term lease cost — 5 Variable lease cost — 10 Sublease income (97) (87) Total lease cost $ 354 $ 384 For operating leases with initial or remaining terms of one year or more as of March 31, 2024, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases 2025 $ 1,326 2026 1,738 2027 1,611 2028 1,641 2029 1,629 2030 and thereafter 8,320 Total future minimum lease payments $ 16,265 Less: Amounts representing interest (2,593) Present value of net future minimum lease payments $ 13,672 Future minimum payments on finance leases were not material as of March 31, 2024. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 5 – Equity Method Investments In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, we must assess whether our equity method investments are significant. In evaluating the significance of these investments, we performed the income, investment and asset tests described in S-X 1-02(w) for each equity method investment. Rule 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in a quarterly report if any of the equity method investees, individually or in the aggregate, result in any of the tests exceeding 10%. Under the income test, our proportionate share of the revenue from equity method investments in the aggregate exceeded the applicable threshold under Rule 4-08(g) of 10%, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. There were no equity method investments which met any of the applicable thresholds for reporting Rule 3-09 for reporting separate financial statements. Our equity method investments are initially recorded at cost, including transaction costs to obtain the equity method investment, and are subsequently adjusted for changes due to our share of the entities' earnings. ICM The following table presents summarized income statement information for ICM for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Total revenues $ 9,857 $ 9,406 Net loss (422) (3,082) Gain on loans sold $ 5,823 $ 5,448 Gain on loans held-for-sale 495 1,356 Volume of loans sold 266,598 302,782 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 $22.9 million at March 31, 2024 , is accounted for as an equity method investment. Our share of ICM's net loss totaled $0.2 million and $1.2 million for the three months ended March 31, 2024 and March 31, 2023, respectively . As of March 31, 2024 and December 31, 2023 , the mortgage pipeline was $537.6 million an d $439.0 million, respectively. Warp Speed The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Total revenues $ 37,497 $ 35,517 Net income (loss) (2,448) 2,682 Gain on loans sold $ 11,208 $ 2,975 Gain on loans held-for-sale 587 9,707 Volume of loans sold 304,458 290,207 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 $51.7 million at March 31, 2024, 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 loss and income totaled $0.9 million and $1.0 million for the three months ended March 31, 2024 and March 31, 2023, respectively. As of March 31, 2024 and December 31, 2023 , the mortgage pipeline was $253.2 million and $267.8 million, respectively. Ayers Socure II Our ownership percentage of Ayers Socure II is 10% and it was determined that we have significant influence over the company. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the three months ended March 31, 2024 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rules 3-09 and 4-08(g) of Regulation S-X. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Deposits | Note 6 – Deposits The following table presents the components of deposits as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,391,070 $ 1,197,272 NOW 530,745 538,444 Savings and money markets 519,209 571,299 Time deposits, including CDs and IRAs 704,305 594,461 Total deposits $ 3,145,329 $ 2,901,476 Time deposits that meet or exceed the FDIC insurance limit $ 2,911 $ 3,150 The following table presents the maturities of time deposits for the twelve month periods ended March 31: (Dollars in thousands) 2025 $ 324,373 2026 116,157 2027 130,763 2028 51,732 2029 81,257 Thereafter 23 Total $ 704,305 As of March 31, 2024 and December 31, 2023, overdrawn deposit accounts totaling $5.0 million and $3.8 million were reclassified as loan balances. |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, Pennsylvania. As of March 31, 2024, the Bank's maximum borrowing capacity with the FHLB was $697.0 million and the remaining borrowing capacity was $683.9 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 March 31, 2024 and December 31, 2023, the Bank had no short-term borrowings with the FHLB or Federal Reserve Bank and no federal funds purchased outstanding. The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ — $ — Average balance during the period 44 17,542 Maximum month-end balance — — Weighted-average rate during the period 9.14 % 5.07 % Weighted-average rate at end of period — % — % Long-term borrowings As of March 31, 2024 and December 31, 2023, the Bank had no long-term borrowings with the FHLB or the Federal Reserve Bank. Repurchase agreements Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase (“repurchase agreements”) with clients representing funds deposited by clients, on an overnight basis, that are collateralized by investment securities owned by us. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between us and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in liabilities consist of client accounts and securities which are pledged on an individual security basis. We monitor the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected in the amount of cash received in connection with the transaction. The primary risk with our repurchase agreements is the market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. As of March 31, 2024 and December 31, 2023, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $3.9 million and $4.9 million at March 31, 2024 and December 31, 2023, respectively, and were comprised of United States sponsored mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 3,810 $ 4,821 Average balance during the period 2,951 5,662 Maximum month-end balance 3,810 10,041 Weighted-average rate during the period 0.01 % 0.02 % Weighted-average rate at end of period 0.01 % 0.01 % Subordinated debt The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 73,602 $ 73,540 Average balance during the period 73,571 73,415 Maximum month-end balance 73,602 73,540 Weighted-average rate during the period 4.07 % 4.38 % Weighted-average rate at end of period 4.02 % 4.02 % In September 2021, we completed the private placement of $30.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR, plus 254 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In November 2020, we completed the private placement of $40.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR, plus 401 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In March 2007, we completed the private placement of $4.0 million Floating Rate, Trust Preferred Securities through our MVB Financial Statutory Trust I subsidiary (the “Trust”). We established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by us since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 0.26% plus Three-Month Term SOFR. The obligations we provide with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by us of the Trust’s obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. The securities issued by the Trust are includable for regulatory purposes as a component of our Tier 1 capital. Senior term loan The following table presents information related to senior term loan as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 6,549 $ 6,786 Average balance during the period 6,736 9,007 Maximum month-end balance 6,794 9,768 Weighted-average rate during the period 8.18 % 8.50 % Weighted-average rate at end of period 7.63 % 8.76 % 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 $10.0 million. In connection with the closing of the Warp Speed transaction, we borrowed $10.0 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. |
Pension and Supplemental Execut
Pension and Supplemental Executive Retirement Plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Supplemental Executive Retirement Plans | Note 8 – Pension and Supplemental Executive Retirement Plans We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan. Benefits are based on years of service and the employee’s compensation. Accruals under the plan were frozen as of May 31, 2014. Freezing the plan resulted in a remeasurement of the pension obligations and plan assets as of the freeze date. The pension obligation was remeasured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.5%. The following table presents information pertaining to the activity in our defined benefit pension plan, using the latest available actuarial valuations with a measurement date of March 31, 2024 and 2023 for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Interest cost $ 113 $ 113 Expected return on plan assets (157) (164) Amortization of net actuarial loss 43 29 Net periodic benefit (income) cost $ (1) $ (22) Contributions paid $ — $ — There was no service cost or amortization of prior service cost for the three months ended March 31, 2024 and 2023. 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. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.4 million as of March 31, 2024 and December 31, 2023, respectively. Service cost was 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 9 – Fair Value of Financial Instruments The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) March 31, 2024 Financial Assets: Cash and cash equivalents $ 640,426 $ 640,426 $ 640,426 $ — $ — Securities available-for-sale 349,678 349,678 — 324,815 24,863 Equity securities 41,037 41,037 3,800 — 37,237 Loans receivable, net 2,244,506 2,326,879 — — 2,326,879 Servicing rights 1,710 1,756 — — 1,756 Interest rate swaps 7,784 7,784 — 7,784 — Accrued interest receivable 17,885 17,885 — 2,809 15,076 FHLB Stock 2,088 2,088 — 2,088 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 3,145,329 $ 3,102,867 $ — $ 3,102,867 $ — Repurchase agreements 3,810 3,810 — 3,810 — Interest rate swaps 7,784 7,784 — 7,784 — Fair value hedge 729 729 — 729 — Accrued interest payable 3,064 3,064 — 3,064 — Senior term loan 6,549 6,503 — 6,503 — Subordinated debt 73,602 60,133 — 60,133 — 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 rights 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 — 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 — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time of our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. The methods of determining the fair value of assets and liabilities presented in this footnote are consistent with our methodologies disclosed in Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements included in Item 8, Financial Statements and Supplementary Data , of the 2023 Form 10-K. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following measurements are made on a recurring basis. Available-for-sale investment securities – Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level I securities include those traded on an active exchange, such as the New York Stock Exchange and money market funds. Level II securities include mortgage-backed securities issued by government sponsored entities and private label entities, municipal bonds, United States Treasury securities that are traded by dealers or brokers in inactive over-the-counter markets and corporate debt securities. There have been no changes in valuation techniques for the three months ended March 31, 2024. Valuation techniques are consistent with techniques used in prior periods. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. We classified investments in government securities as Level II instruments and valued them using the market approach. Equity securities – Certain equity securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. The valuation methodologies utilized may include significant unobservable inputs. There have been no changes in valuation techniques for the three months ended March 31, 2024. 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. 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 assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy: March 31, 2024 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 39,388 $ — $ 39,388 United States sponsored mortgage-backed securities — 88,017 — 88,017 United States treasury securities — 100,563 — 100,563 Municipal securities — 87,128 17,363 104,491 Corporate debt securities — 8,948 — 8,948 Other securities — 771 — 771 Equity securities 3,800 — — 3,800 Loans held-for-sale — — — — Interest rate swaps — 7,784 — 7,784 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 7,784 — 7,784 Fair value hedge — 729 — 729 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 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 6,249 — 6,249 Fair value hedge — 6,111 — 6,111 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, 2023 $ 18,245 $ 648 $ 18,893 Realized and unrealized income included in earnings 1 — 1 Purchase of securities — — — Maturities/calls (70) — (70) Unrealized loss included in other comprehensive income (loss) (813) — (813) Balance at March 31, 2024 $ 17,363 $ 648 $ 18,011 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized loss included in earnings — (139) (139) Maturities/calls (67) — (67) Unrealized gain included in other comprehensive income (loss) 1,182 — 1,182 Balance at March 31, 2023 $ 36,458 $ 648 $ 37,106 Assets Measured on a Nonrecurring Basis We may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 2024 and 2023 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. Loans held-for-sale - The fair value of loans held-for-sale is determined, when possible, using quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. If the fair value at the reporting date exceeds the amortized cost of a loan, the loan is reported at amortized cost. Other real estate owned – Other real estate owned, which is obtained through the Bank’s foreclosure process, is valued utilizing the appraised collateral value. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. At the time the foreclosure is completed, we obtain a current external appraisal. Other debt securities – Certain debt securities are recorded at fair value on a nonrecurring basis. These other debt securities are securities without a readily determinable fair value and are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. Equity securities – Certain equity securities are recorded at fair value on a nonrecurring basis. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. The following table presents the fair value of these assets as of the periods shown: March 31, 2024 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans $ — $ — $ 18,546 $ 18,546 Other real estate owned — — 825 825 Other debt securities — — 7,500 7,500 Equity securities — — 37,237 37,237 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 The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range March 31, 2024 Nonrecurring measurements: Collateral-dependent loans $ 18,546 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 $ 37,237 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 17,363 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded derivatives $ 648 Monte Carlo pricing model Deferred payment $0 - $49.1 million Volatility 59% Term 4.75 years Risk free rate 3.59% December 31, 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% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 11 – 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 included in a closed portfolio due to changes in benchmark interest rates. 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 $436.5 million as of March 31, 2024, one of which is amortizing and included a $13.5 million amortization adjustment to the notional amount at March 31, 2024. 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 March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (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 $ 478,727 $ 386,459 $ (347) $ 491,018 $ 390,297 $ 4,055 Fixed rate bonds Investment securities available-for-sale $ 58,316 $ 50,000 $ 616 $ 59,270 $ 50,000 $ 1,570 Total hedged assets $ 537,043 $ 436,459 $ 269 $ 550,288 $ 440,297 $ 5,625 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 March 31, 2024 and December 31, 2023: March 31, 2024 (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 $ 436,459 $ (729) $ 5,382 Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 143,048 7,784 7,784 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 143,048 (7,784) (7,784) Total derivatives $ 722,555 $ (729) $ 5,382 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) 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 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12 – Earnings per Share We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. The following table presents our calculation of EPS for the periods shown: Three Months Ended March 31, (Dollars in thousands except shares and per share data) 2024 2023 Numerator for earnings per share: Net income from continuing operations $ 4,502 $ 2,438 Net (income) loss attributable to noncontrolling interest (20) 122 Net income available to common shareholders from continuing operations 4,482 2,560 Net income from discontinued operations available to common shareholders — 8,782 Net income available to common shareholders $ 4,482 $ 11,342 Denominator: Weighted-average shares outstanding - basic 12,810,956 12,623,361 Effect of dilutive instruments 308,336 392,721 Weighted-average shares outstanding - diluted 13,119,292 13,016,082 Earnings per share from continuing operations - basic $ 0.35 $ 0.20 Earnings per share from discontinued operations - basic $ — $ 0.70 Earnings per common share - basic $ 0.35 $ 0.90 Earnings per share from continuing operations - diluted $ 0.34 $ 0.20 Earnings per share from discontinued operations - diluted $ — $ 0.67 Earnings per share common share - diluted $ 0.34 $ 0.87 Instruments not included in the computation of diluted EPS because the effect would be antidilutive 171,960 140,666 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Note 13 – Comprehensive Income The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Realized gain (loss) recognized in income $ 658 $ (1,536) Gain (loss) on sale of available-for-sale securities Income tax effect (158) 369 Income taxes Realized gain (loss) recognized in income, net of tax 500 (1,167) Defined benefit pension plan items Amortization of net actuarial loss (43) $ (29) Salaries and employee benefits Income tax effect 10 7 Income taxes Defined benefit pension plan items, net of tax (33) (22) Investment hedge Carrying value adjustment — 334 Interest on investment securities Income tax effect — (80) Income taxes Investment hedge, net of tax — 254 Total reclassifications $ 467 $ (935) (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at December 31, 2023 $ (25,871) $ (2,994) $ 34 $ (28,831) Other comprehensive income (loss) before reclassification (1,957) 456 — (1,501) Amounts reclassified from accumulated other comprehensive income (loss) (500) 33 — (467) Net current period other comprehensive income (loss) (2,457) 489 — (1,968) Balance at March 31, 2024 $ (28,328) $ (2,505) $ 34 $ (30,799) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 5,852 (21) — 5,831 Amounts reclassified from accumulated other comprehensive income (loss) 1,167 22 (254) 935 Net current period other comprehensive income (loss) 7,019 1 (254) 6,766 Balance at March 31, 2023 $ (27,810) $ (3,128) $ — $ (30,938) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14 – 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. The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown: Three Months Ended March 31, 2024 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 49,942 $ 103 $ 2 $ — $ (17) $ 50,030 Interest expense 18,927 — 959 22 (17) 19,891 Net interest income (expense) 31,015 103 (957) (22) — 30,139 Provision for credit losses 1,997 — — — — 1,997 Net interest income (expense) after provision for credit losses 29,018 103 (957) (22) — 28,142 Noninterest income 7,521 (1,129) 2,265 3,264 (4,087) 7,834 Noninterest Expenses: Salaries and employee benefits 9,823 — 4,678 1,988 — 16,489 Other expenses 13,821 — 1,841 2,127 (4,087) 13,702 Total noninterest expenses 23,644 — 6,519 4,115 (4,087) 30,191 Income (loss), before income taxes 12,895 (1,026) (5,211) (873) — 5,785 Income taxes 2,878 (229) (1,157) (209) — 1,283 Net income (loss), before noncontrolling interest 10,017 (797) (4,054) (664) — 4,502 Net income attributable to noncontrolling interest — — — (20) — (20) Net income (loss) available to common shareholders $ 10,017 $ (797) $ (4,054) $ (684) $ — $ 4,482 Capital expenditures for the three months ended March 31, 2024 $ 652 $ — $ 11 $ 258 $ — $ 921 Total assets as of March 31, 2024 $ 3,489,684 $ 84,448 $ 347,031 $ 16,633 $ (390,406) $ 3,547,390 Total assets as of December 31, 2023 $ 3,255,369 $ 83,909 $ 345,314 $ 17,728 $ (388,438) $ 3,313,882 Goodwill as of March 31, 2024 $ — $ — $ — $ 2,838 $ — $ 2,838 Goodwill as of December 31, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 Three Months Ended March 31, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 44,662 $ 105 $ 33 $ (6) $ (31) $ 44,763 Interest expense 11,041 — 993 31 (31) 12,034 Net interest income (expense) 33,621 105 (960) (37) — 32,729 Provision for loan losses 4,576 — — — 4,576 Net interest income (expense) after provision for loan losses 29,045 105 (960) (37) — 28,153 Noninterest income 3,018 (1,186) 2,410 1,784 (2,959) 3,067 Noninterest Expenses: Salaries and employee benefits 9,051 — 4,950 2,745 — 16,746 Other expenses 11,054 34 1,917 1,525 (2,959) 11,571 Total noninterest expenses 20,105 34 6,867 4,270 (2,959) 28,317 Income (loss), before income taxes 11,958 (1,115) (5,417) (2,523) — 2,903 Income taxes 2,515 (504) (942) (604) — 465 Net income (loss) from continuing operations 9,443 (611) (4,475) (1,919) — 2,438 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income taxes - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss), before noncontrolling interest 9,443 (611) (4,475) 6,863 — 11,220 Net loss attributable to noncontrolling interest — — — 122 — 122 Net income (loss) available to common shareholders $ 9,443 $ (611) $ (4,475) $ 6,985 $ — $ 11,342 Capital expenditures for the three months ended March 31, 2023 $ 337 $ — $ — $ 571 $ — $ 908 |
Acquisition & Divestiture Activ
Acquisition & Divestiture Activity | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition & Divestiture Activity | Note 15 – Acquisition & Divestiture Activity Flexia Payments, LLC In May 2023, MVB Technology entered into an Assignment and Assumption Agreement with Flexia Payments, LLC ("Flexia"), wherein Flexia assigned loans outstanding between Flexia and MVB to MVB Technology. In consideration for the assignment, Flexia granted a license to MVB Technology for the Flexia software. Additionally, through a Mutual Release Agreement between Edge Ventures and Flexia, Edge Ventures transferred its 800 Class A Common Units and 1,500 Preferred Units of Flexia back to Flexia for cancellation. As a result of the transactions, we incurred a loss of $1.1 million and no longer consolidate Flexia in our financial statements. Chartwell Compliance In February 2023, we completed the sale of the Bank’s wholly-owned subsidiary, Chartwell, for total consideration of $14.4 million in the form of a note issued to the buyer, resulting in a gain on sale of $11.8 million. The note matures June 20, 2027 and bears interest at a fixed rate of 7%, payable in four equal annual installments commencing June 20, 2024. To facilitate a transition of the Chartwell services and support the onboarding and conversion of systems, we entered into a 60 day Employee Lease and Service Agreement, whereby we provided the purchaser with finance and accounting, human capital, information technology, marketing and record/data retention services. In addition, we entered into a contract with the purchaser to continue to provide services and support from Chartwell for three years following the sale. During the three months ended March 31, 2024, we have paid $1.2 million in fees related to this contract. Chartwell's net income is presented in income from discontinued operations for all periods shown. Prior period balances have been reclassified to conform with this presentation. The following table presents the major classes of net income from discontinued operations for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2023 Compliance consulting income $ 2,369 Gain on sale of discontinued operations 11,800 Total income $ 14,169 Salaries and employee benefits $ 2,082 Other expenses 256 Total expenses $ 2,338 Income, before income taxes $ 11,831 Income taxes 3,049 Net income from discontinued operations $ 8,782 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. |
Basis of Presentation | In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2023 has been derived from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2023 Form 10-K. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. |
Reclassification | In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
Subsequent Events | We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 March 31, 2024, all loans and other relevant financial instruments that referenced LIBOR have been transitioned to the SOFR. 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 and interim periods within fiscal years beginning after December 14, 2024. 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 rate 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. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. The amendments clarify how an entity determines whether a profits interest or similar award is within the scope of Compensation - Stock Compensation (Topic 718 ) or not a share-based payment arrangements, and therefore within the scope of other guidance. The amendments are effective for fiscal years beginning after December 15, 2024. We do not currently expect these amendments to have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements 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, which collectively comprise Accounting Standards Codification Topic 326 Financial Instruments - Credit Losses ("ASC 326"). ASC 326 replaced the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and required consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an ACL. Purchased credit deteriorated (“PCD”) loans received 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 are recorded through an ACL, with such allowance limited to the amount by which fair value is below amortized cost. 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. For additional information on the new standard, see Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements included in Item 8, Financial Statements and Supplementary Data , of the 2023 Form 10-K. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Investment Securities Available-for-sale | The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown: March 31, 2024 (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value United States government agency securities $ 45,412 $ 8 $ (6,032) $ 39,388 United States sponsored mortgage-backed securities 99,792 145 (11,920) 88,017 United States treasury securities 106,324 — (5,761) 100,563 Municipal securities 117,434 — (12,943) 104,491 Corporate debt securities 9,078 — (130) 8,948 Other debt securities 7,500 — — 7,500 Total available-for-sale debt securities 385,540 153 (36,786) 348,907 Other securities 771 — — 771 Investment securities available-for-sale $ 386,311 $ 153 $ (36,786) $ 349,678 December 31, 2023 (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 available-for-sale debt securities 376,984 1,000 (33,489) 344,495 Other securities 780 — — 780 Investment securities available-for-sale $ 377,764 $ 1,000 $ (33,489) $ 345,275 The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown: March 31, 2024 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 96,995 $ 86,803 After one year, but within five years 102,365 96,832 After five years, but within ten years 41,990 37,664 After ten years 144,190 127,608 Total available-for-sale debt securities $ 385,540 $ 348,907 |
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 March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that the individual securities have been in a continuous loss position: March 31, 2024 (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 (26) $ 4,363 $ (21) $ 33,669 $ (6,011) United States sponsored mortgage-backed securities (54) 19,467 (146) 48,156 (11,774) United States treasury securities (23) — — 100,563 (5,761) Municipal securities (215) 555 (11) 86,573 (12,932) Corporate debt securities (7) 498 (2) 3,451 (128) Total $ 24,883 $ (180) $ 272,412 $ (36,606) December 31, 2023 (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss United States government agency securities (25) $ 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) Total $ 3,172 $ (77) $ 293,311 $ (33,412) |
Schedule of Realized Gain (Loss) on Investments | The following table summarizes investment sales, related gains and losses and unrealized holding losses for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Proceeds from sales of available-for-sale securities $ 24,344 $ 54,531 Gains, gross 658 — Losses, gross — 1,536 Unrealized holding losses on equity securities (49) (308) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Components of Loans in the Consolidated Balance Sheet | The following table presents the components of loans as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Commercial: Business $ 742,369 $ 797,100 Real estate 681,067 670,584 Acquisition, development and construction 144,261 134,004 Total commercial 1,567,697 1,601,688 Residential real estate 660,444 672,547 Home equity lines of credit 13,369 14,531 Consumer 24,681 27,408 Total loans 2,266,191 2,316,174 Deferred loan origination costs, net 1,119 1,420 Loans receivable $ 2,267,310 $ 2,317,594 |
Schedule of Classes of the Loan Portfolio Summarized by Vintage Year and the Aggregate Pass and the Criticized Categories | The following table presents the amortized cost of loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system by vintage year as of the period shown: Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total March 31, 2024 Commercial business: Risk rating: Pass $ 11,058 $ 148,499 $ 230,313 $ 71,110 $ 30,347 $ 119,528 $ 85,322 $ — $ 696,177 Special Mention — — 29,776 185 817 4,094 — — 34,872 Substandard — 1,250 1,227 691 — 4,349 808 — 8,325 Doubtful — — 924 779 264 1,028 — — 2,995 Total commercial business loans $ 11,058 $ 149,749 $ 262,240 $ 72,765 $ 31,428 $ 128,999 $ 86,130 $ — $ 742,369 Gross charge-offs $ — $ — $ 614 $ — $ — $ 367 $ — $ — $ 981 Commercial real estate: Risk rating: Pass $ 37,733 $ 112,029 $ 134,778 $ 191,268 $ 11,813 $ 131,047 $ 518 $ — $ 619,186 Special Mention — — — 25,919 — 17,150 — — 43,069 Substandard — — — — — 18,812 — — 18,812 Doubtful — — — — — — — — — Total commercial real estate loans $ 37,733 $ 112,029 $ 134,778 $ 217,187 $ 11,813 $ 167,009 $ 518 $ — $ 681,067 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial acquisition, development and construction: Risk rating: Pass $ 5,146 $ 6,592 $ 56,763 $ 30,552 $ 23,656 $ 3,692 $ 2,500 $ — $ 128,901 Special Mention — — — — — — — — — Substandard — — — 14,652 — 708 — — 15,360 Doubtful — — — — — — — — — Total commercial acquisition, development and construction loans $ 5,146 $ 6,592 $ 56,763 $ 45,204 $ 23,656 $ 4,400 $ 2,500 $ — $ 144,261 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential Real Estate: Risk rating: Pass $ 8,946 $ 56,959 $ 417,220 $ 104,709 $ 34,748 $ 28,585 $ 2,705 $ — $ 653,872 Special Mention — — — — 4,118 1,161 — — 5,279 Substandard — — — — 81 787 120 — 988 Doubtful — — — 211 — 94 — — 305 Total residential real estate loans $ 8,946 $ 56,959 $ 417,220 $ 104,920 $ 38,947 $ 30,627 $ 2,825 $ — $ 660,444 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total March 31, 2024 Home equity lines of credit: Risk rating: Pass $ — $ 58 $ 36 $ — $ — $ 11 $ 12,828 $ — $ 12,933 Special Mention — — — — — — 271 — 271 Substandard — — — — — — 165 — 165 Doubtful — — — — — — — — — Total home equity lines of credit loans $ — $ 58 $ 36 $ — $ — $ 11 $ 13,264 $ — $ 13,369 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk rating: Pass $ — $ 2,040 $ 17,093 $ 5,243 $ — $ 55 $ 30 $ — $ 24,461 Special Mention — — — — — — — — — Substandard — 21 189 10 — — — — 220 Doubtful — — — — — — — — — Total consumer loans $ — $ 2,061 $ 17,282 $ 5,253 $ — $ 55 $ 30 $ — $ 24,681 Gross charge-offs $ — $ 189 $ 833 $ 147 $ — $ — $ — $ — $ 1,169 Total: Risk rating: Pass $ 62,883 $ 326,177 $ 856,203 $ 402,882 $ 100,564 $ 282,918 $ 103,903 $ — $ 2,135,530 Special Mention — — 29,776 26,104 4,935 22,405 271 — 83,491 Substandard — 1,271 1,416 15,353 81 24,656 1,093 — 43,870 Doubtful — — 924 990 264 1,122 — — 3,300 Total loans $ 62,883 $ 327,448 $ 888,319 $ 445,329 $ 105,844 $ 331,101 $ 105,267 $ — $ 2,266,191 Gross charge-offs $ — $ 189 $ 1,447 $ 147 $ — $ 367 $ — $ — $ 2,150 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 $ — $ — $ — $ — $ — $ — $ — $ — $ — 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 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 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 |
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 March 31, 2024 Commercial Business $ 735,578 $ 3,088 $ 549 $ 3,154 $ 6,791 $ 742,369 $ 4,859 $ — $ 1,983 $ — Real estate 678,997 2,070 — — 2,070 681,067 — — — — Acquisition, development and construction 129,609 — 14,652 — 14,652 144,261 708 — 708 — Total commercial 1,544,184 5,158 15,201 3,154 23,513 1,567,697 5,567 — 2,691 — Residential real estate 658,397 125 324 1,598 2,047 660,444 1,678 — 404 — Home equity lines of credit 13,264 105 — — 105 13,369 81 — — — Consumer 22,538 1,513 410 220 2,143 24,681 220 — — — Total loans $ 2,238,383 $ 6,901 $ 15,935 $ 4,972 $ 27,808 $ 2,266,191 $ 7,546 $ — $ 3,095 $ — 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 real estate 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 $ — |
Schedule of Amortized Cost Basis of Collateral-Dependent Loans | The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of the periods shown: (Dollars in thousands) Real Estate Vehicles and Equipment Assignment of Cash Flow Accounts Receivable Other Totals Allowance for Credit Losses March 31, 2024 Commercial Business $ 16,209 $ 2,732 $ — $ 442 $ 695 $ 20,078 $ 2,958 Real estate — — — — — — — Acquisition, development and construction — — — — — — — Total commercial $ 16,209 $ 2,732 $ — $ 442 $ 695 $ 20,078 $ 2,958 Residential 1,387 — — — — 1,387 35 Home equity lines of credit — — — — — — — Consumer — 220 — — — 220 146 Total $ 17,596 $ 2,952 $ — $ 442 $ 695 $ 21,685 $ 3,139 Collateral value $ 34,924 $ 2,393 $ — $ 38 $ — $ 37,355 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 Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ACL at December 31, 2023 $ 7,931 $ 2,931 $ 1,674 $ 12,536 $ 6,412 $ 97 $ 3,079 $ 22,124 Provision (release of allowance) for credit losses 1,297 365 447 2,109 (145) (8) 39 1,995 Charge-offs (981) — — (981) — — (1,169) (2,150) Recoveries 42 8 — 50 35 1 749 835 ACL at March 31, 2024 $ 8,289 $ 3,304 $ 2,121 $ 13,714 $ 6,302 $ 90 $ 2,698 $ 22,804 Commercial Residential Home Equity Consumer Total (Dollars in thousands) Business Real Estate Acquisition, development and construction Total Commercial ALL, prior to adoption of ASC 326, at December 31, 2022 $ 8,771 $ 5,704 $ 1,064 $ 15,539 $ 2,880 $ 131 $ 5,287 $ 23,837 Impact of adopting ASC 326 (126) (2,846) 288 (2,684) 3,889 (5) 6,482 7,682 Initial allowance on loans purchased with credit deterioration 710 — — 710 507 — — 1,217 Provision (release of allowance) for credit losses 681 313 288 1,282 364 (8) 2,817 4,455 Charge-offs (141) — — (141) (22) — (4,684) (4,847) Recoveries 23 6 — 29 — 1 3,139 3,169 ACL balance at March 31, 2023 $ 9,918 $ 3,177 $ 1,640 $ 14,735 $ 7,618 $ 119 $ 13,041 $ 35,513 |
Schedule of Modified Loans | The following table summarize the amortized cost basis of loans that were modified as of the period shown: (Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Total Total Class of Financing Receivable March 31, 2024 Commercial Business $ — $ 1,377 $ — $ — $ 1,377 — % Real estate — — — — — — % Total commercial — 1,377 — — 1,377 — % Residential — — — — — — % Home equity lines of credit — — — — — — % Consumer — — — — — — % Total $ — $ 1,377 $ — $ — $ 1,377 — % |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Premises and Equipment | The following table presents the components of premises and equipment as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Land $ 4,062 $ 3,465 Buildings and improvements 13,393 13,393 Furniture, fixtures and equipment 15,762 18,300 Software 6,592 7,140 Construction in progress 3 45 Leasehold improvements 2,836 2,836 42,648 45,179 Accumulated depreciation (22,680) (24,251) Premises and equipment, net $ 19,968 $ 20,928 |
Lease Cost | The following table presents lease costs for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amortization of right-of-use assets, finance leases $ 1 $ 6 Operating lease cost 450 450 Short-term lease cost — 5 Variable lease cost — 10 Sublease income (97) (87) Total lease cost $ 354 $ 384 |
Operating Lease Liability | For operating leases with initial or remaining terms of one year or more as of March 31, 2024, the following table presents future minimum payments for the twelve month periods ended March 31: (Dollars in thousands) Operating Leases 2025 $ 1,326 2026 1,738 2027 1,611 2028 1,641 2029 1,629 2030 and thereafter 8,320 Total future minimum lease payments $ 16,265 Less: Amounts representing interest (2,593) Present value of net future minimum lease payments $ 13,672 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents summarized income statement information for ICM for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Total revenues $ 9,857 $ 9,406 Net loss (422) (3,082) Gain on loans sold $ 5,823 $ 5,448 Gain on loans held-for-sale 495 1,356 Volume of loans sold 266,598 302,782 The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Total revenues $ 37,497 $ 35,517 Net income (loss) (2,448) 2,682 Gain on loans sold $ 11,208 $ 2,975 Gain on loans held-for-sale 587 9,707 Volume of loans sold 304,458 290,207 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Components of Deposits | The following table presents the components of deposits as of the periods shown: (Dollars in thousands) March 31, 2024 December 31, 2023 Demand deposits of individuals, partnerships and corporations Noninterest-bearing demand $ 1,391,070 $ 1,197,272 NOW 530,745 538,444 Savings and money markets 519,209 571,299 Time deposits, including CDs and IRAs 704,305 594,461 Total deposits $ 3,145,329 $ 2,901,476 Time deposits that meet or exceed the FDIC insurance limit $ 2,911 $ 3,150 |
Maturities of Time Deposits | The following table presents the maturities of time deposits for the twelve month periods ended March 31: (Dollars in thousands) 2025 $ 324,373 2026 116,157 2027 130,763 2028 51,732 2029 81,257 Thereafter 23 Total $ 704,305 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Information Related to Short-term Borrowings | The following table presents information related to short-term borrowings as of and for the periods indicated: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ — $ — Average balance during the period 44 17,542 Maximum month-end balance — — Weighted-average rate during the period 9.14 % 5.07 % Weighted-average rate at end of period — % — % |
Information Related to Repurchase Agreements | The following table presents information related to repurchase agreements as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 3,810 $ 4,821 Average balance during the period 2,951 5,662 Maximum month-end balance 3,810 10,041 Weighted-average rate during the period 0.01 % 0.02 % Weighted-average rate at end of period 0.01 % 0.01 % |
Information Related to Subordinated Debt | The following table presents information related to subordinated debt as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 73,602 $ 73,540 Average balance during the period 73,571 73,415 Maximum month-end balance 73,602 73,540 Weighted-average rate during the period 4.07 % 4.38 % Weighted-average rate at end of period 4.02 % 4.02 % |
Information Related to Senior Term Loan | The following table presents information related to senior term loan as of and for the periods shown: (Dollars in thousands) Three Months Ended March 31, 2024 Year Ended December 31, 2023 Balance at end of period $ 6,549 $ 6,786 Average balance during the period 6,736 9,007 Maximum month-end balance 6,794 9,768 Weighted-average rate during the period 8.18 % 8.50 % Weighted-average rate at end of period 7.63 % 8.76 % |
Pension and Supplemental Exec_2
Pension and Supplemental Executive Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Activity in the Defined Benefit Plan | The following table presents information pertaining to the activity in our defined benefit pension plan, using the latest available actuarial valuations with a measurement date of March 31, 2024 and 2023 for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Interest cost $ 113 $ 113 Expected return on plan assets (157) (164) Amortization of net actuarial loss 43 29 Net periodic benefit (income) cost $ (1) $ (22) Contributions paid $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Estimated Fair Values of Financial Instruments | The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) March 31, 2024 Financial Assets: Cash and cash equivalents $ 640,426 $ 640,426 $ 640,426 $ — $ — Securities available-for-sale 349,678 349,678 — 324,815 24,863 Equity securities 41,037 41,037 3,800 — 37,237 Loans receivable, net 2,244,506 2,326,879 — — 2,326,879 Servicing rights 1,710 1,756 — — 1,756 Interest rate swaps 7,784 7,784 — 7,784 — Accrued interest receivable 17,885 17,885 — 2,809 15,076 FHLB Stock 2,088 2,088 — 2,088 — Embedded derivative 648 648 — — 648 Financial Liabilities: Deposits $ 3,145,329 $ 3,102,867 $ — $ 3,102,867 $ — Repurchase agreements 3,810 3,810 — 3,810 — Interest rate swaps 7,784 7,784 — 7,784 — Fair value hedge 729 729 — 729 — Accrued interest payable 3,064 3,064 — 3,064 — Senior term loan 6,549 6,503 — 6,503 — Subordinated debt 73,602 60,133 — 60,133 — 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 rights 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 — 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 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair value of assets and liabilities | |
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, 2023 $ 18,245 $ 648 $ 18,893 Realized and unrealized income included in earnings 1 — 1 Purchase of securities — — — Maturities/calls (70) — (70) Unrealized loss included in other comprehensive income (loss) (813) — (813) Balance at March 31, 2024 $ 17,363 $ 648 $ 18,011 Balance at December 31, 2022 $ 35,343 $ 787 $ 36,130 Realized loss included in earnings — (139) (139) Maturities/calls (67) — (67) Unrealized gain included in other comprehensive income (loss) 1,182 — 1,182 Balance at March 31, 2023 $ 36,458 $ 648 $ 37,106 |
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown: Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range March 31, 2024 Nonrecurring measurements: Collateral-dependent loans $ 18,546 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 $ 37,237 Net asset value Cost, less impairment 0% Recurring measurements: Municipal securities 5 $ 17,363 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Embedded derivatives $ 648 Monte Carlo pricing model Deferred payment $0 - $49.1 million Volatility 59% Term 4.75 years Risk free rate 3.59% December 31, 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% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities. |
Recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy: March 31, 2024 (Dollars in thousands) Level I Level II Level III Total Assets: United States government agency securities $ — $ 39,388 $ — $ 39,388 United States sponsored mortgage-backed securities — 88,017 — 88,017 United States treasury securities — 100,563 — 100,563 Municipal securities — 87,128 17,363 104,491 Corporate debt securities — 8,948 — 8,948 Other securities — 771 — 771 Equity securities 3,800 — — 3,800 Loans held-for-sale — — — — Interest rate swaps — 7,784 — 7,784 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 7,784 — 7,784 Fair value hedge — 729 — 729 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 Embedded derivative — — 648 648 Liabilities: Interest rate swaps — 6,249 — 6,249 Fair value hedge — 6,111 — 6,111 |
Non-recurring | |
Fair value of assets and liabilities | |
Financial Assets and Liabilities Measured at Fair Value | The following table presents the fair value of these assets as of the periods shown: March 31, 2024 (Dollars in thousands) Level I Level II Level III Total Collateral-dependent loans $ — $ — $ 18,546 $ 18,546 Other real estate owned — — 825 825 Other debt securities — — 7,500 7,500 Equity securities — — 37,237 37,237 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 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (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 $ 478,727 $ 386,459 $ (347) $ 491,018 $ 390,297 $ 4,055 Fixed rate bonds Investment securities available-for-sale $ 58,316 $ 50,000 $ 616 $ 59,270 $ 50,000 $ 1,570 Total hedged assets $ 537,043 $ 436,459 $ 269 $ 550,288 $ 440,297 $ 5,625 |
Summary of Outstanding Financial Derivative Instruments | The following tables summarize outstanding financial derivative instruments as of March 31, 2024 and December 31, 2023: March 31, 2024 (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 $ 436,459 $ (729) $ 5,382 Not designated hedges of interest rate risk: Matched interest rate swaps with borrowers Accrued interest receivable and other assets 143,048 7,784 7,784 Matched interest rate swaps with counterparty Accrued interest payable and other liabilities 143,048 (7,784) (7,784) Total derivatives $ 722,555 $ (729) $ 5,382 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) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | The following table presents our calculation of EPS for the periods shown: Three Months Ended March 31, (Dollars in thousands except shares and per share data) 2024 2023 Numerator for earnings per share: Net income from continuing operations $ 4,502 $ 2,438 Net (income) loss attributable to noncontrolling interest (20) 122 Net income available to common shareholders from continuing operations 4,482 2,560 Net income from discontinued operations available to common shareholders — 8,782 Net income available to common shareholders $ 4,482 $ 11,342 Denominator: Weighted-average shares outstanding - basic 12,810,956 12,623,361 Effect of dilutive instruments 308,336 392,721 Weighted-average shares outstanding - diluted 13,119,292 13,016,082 Earnings per share from continuing operations - basic $ 0.35 $ 0.20 Earnings per share from discontinued operations - basic $ — $ 0.70 Earnings per common share - basic $ 0.35 $ 0.90 Earnings per share from continuing operations - diluted $ 0.34 $ 0.20 Earnings per share from discontinued operations - diluted $ — $ 0.67 Earnings per share common share - diluted $ 0.34 $ 0.87 Instruments not included in the computation of diluted EPS because the effect would be antidilutive 171,960 140,666 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Details about AOCI components Amount reclassified from AOCI Amount reclassified from AOCI Affected income statement line item Available-for-sale securities Realized gain (loss) recognized in income $ 658 $ (1,536) Gain (loss) on sale of available-for-sale securities Income tax effect (158) 369 Income taxes Realized gain (loss) recognized in income, net of tax 500 (1,167) Defined benefit pension plan items Amortization of net actuarial loss (43) $ (29) Salaries and employee benefits Income tax effect 10 7 Income taxes Defined benefit pension plan items, net of tax (33) (22) Investment hedge Carrying value adjustment — 334 Interest on investment securities Income tax effect — (80) Income taxes Investment hedge, net of tax — 254 Total reclassifications $ 467 $ (935) |
Accumulated Other Comprehensive Income | (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Investment hedge Total Balance at December 31, 2023 $ (25,871) $ (2,994) $ 34 $ (28,831) Other comprehensive income (loss) before reclassification (1,957) 456 — (1,501) Amounts reclassified from accumulated other comprehensive income (loss) (500) 33 — (467) Net current period other comprehensive income (loss) (2,457) 489 — (1,968) Balance at March 31, 2024 $ (28,328) $ (2,505) $ 34 $ (30,799) Balance at December 31, 2022 $ (34,829) $ (3,129) $ 254 $ (37,704) Other comprehensive income (loss) before reclassification 5,852 (21) — 5,831 Amounts reclassified from accumulated other comprehensive income (loss) 1,167 22 (254) 935 Net current period other comprehensive income (loss) 7,019 1 (254) 6,766 Balance at March 31, 2023 $ (27,810) $ (3,128) $ — $ (30,938) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown: Three Months Ended March 31, 2024 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 49,942 $ 103 $ 2 $ — $ (17) $ 50,030 Interest expense 18,927 — 959 22 (17) 19,891 Net interest income (expense) 31,015 103 (957) (22) — 30,139 Provision for credit losses 1,997 — — — — 1,997 Net interest income (expense) after provision for credit losses 29,018 103 (957) (22) — 28,142 Noninterest income 7,521 (1,129) 2,265 3,264 (4,087) 7,834 Noninterest Expenses: Salaries and employee benefits 9,823 — 4,678 1,988 — 16,489 Other expenses 13,821 — 1,841 2,127 (4,087) 13,702 Total noninterest expenses 23,644 — 6,519 4,115 (4,087) 30,191 Income (loss), before income taxes 12,895 (1,026) (5,211) (873) — 5,785 Income taxes 2,878 (229) (1,157) (209) — 1,283 Net income (loss), before noncontrolling interest 10,017 (797) (4,054) (664) — 4,502 Net income attributable to noncontrolling interest — — — (20) — (20) Net income (loss) available to common shareholders $ 10,017 $ (797) $ (4,054) $ (684) $ — $ 4,482 Capital expenditures for the three months ended March 31, 2024 $ 652 $ — $ 11 $ 258 $ — $ 921 Total assets as of March 31, 2024 $ 3,489,684 $ 84,448 $ 347,031 $ 16,633 $ (390,406) $ 3,547,390 Total assets as of December 31, 2023 $ 3,255,369 $ 83,909 $ 345,314 $ 17,728 $ (388,438) $ 3,313,882 Goodwill as of March 31, 2024 $ — $ — $ — $ 2,838 $ — $ 2,838 Goodwill as of December 31, 2023 $ — $ — $ — $ 2,838 $ — $ 2,838 Three Months Ended March 31, 2023 CoRe Banking Mortgage Banking Financial Holding Company Other Intercompany Eliminations Consolidated (Dollars in thousands) Interest income $ 44,662 $ 105 $ 33 $ (6) $ (31) $ 44,763 Interest expense 11,041 — 993 31 (31) 12,034 Net interest income (expense) 33,621 105 (960) (37) — 32,729 Provision for loan losses 4,576 — — — 4,576 Net interest income (expense) after provision for loan losses 29,045 105 (960) (37) — 28,153 Noninterest income 3,018 (1,186) 2,410 1,784 (2,959) 3,067 Noninterest Expenses: Salaries and employee benefits 9,051 — 4,950 2,745 — 16,746 Other expenses 11,054 34 1,917 1,525 (2,959) 11,571 Total noninterest expenses 20,105 34 6,867 4,270 (2,959) 28,317 Income (loss), before income taxes 11,958 (1,115) (5,417) (2,523) — 2,903 Income taxes 2,515 (504) (942) (604) — 465 Net income (loss) from continuing operations 9,443 (611) (4,475) (1,919) — 2,438 Income from discontinued operations, before income taxes — — — 11,831 — 11,831 Income taxes - discontinued operations — — — 3,049 — 3,049 Net income from discontinued operations — — — 8,782 — 8,782 Net income (loss), before noncontrolling interest 9,443 (611) (4,475) 6,863 — 11,220 Net loss attributable to noncontrolling interest — — — 122 — 122 Net income (loss) available to common shareholders $ 9,443 $ (611) $ (4,475) $ 6,985 $ — $ 11,342 Capital expenditures for the three months ended March 31, 2023 $ 337 $ — $ — $ 571 $ — $ 908 |
Acquisition & Divestiture Act_2
Acquisition & Divestiture Activity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 net income from discontinued operations for the periods shown: Three Months Ended March 31, (Dollars in thousands) 2023 Compliance consulting income $ 2,369 Gain on sale of discontinued operations 11,800 Total income $ 14,169 Salaries and employee benefits $ 2,082 Other expenses 256 Total expenses $ 2,338 Income, before income taxes $ 11,831 Income taxes 3,049 Net income from discontinued operations $ 8,782 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Narrative (Details) $ in Thousands | Jan. 01, 2023 USD ($) | Mar. 31, 2024 USD ($) investment | Dec. 31, 2023 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of equity method investments | investment | 3 | ||
Impact of adopting ASC 326, net of tax | $ (163,199) | $ (160,862) | |
Impact of adopting ASC 326, net of tax | Accounting Standards Update 2016-13 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | $ 10,000 | ||
Increase related to PCD financial assets | 1,200 | ||
Tax effect | 2,100 | ||
Impact of adopting ASC 326, net of tax | 6,600 | ||
Impact of adopting ASC 326, net of tax | Accounting Standards Update 2016-13 | Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | 8,900 | ||
Impact of adopting ASC 326, net of tax | Accounting Standards Update 2016-13 | Unfunded Commitments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for credit losses | $ 1,100 | ||
Trabian | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 80.80% |
Investment Securities - Availab
Investment Securities - Available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 386,311 | $ 377,764 |
Unrealized Gain | 153 | 1,000 |
Unrealized Loss | (36,786) | (33,489) |
Fair Value | 349,678 | 345,275 |
United States government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,412 | 44,003 |
Unrealized Gain | 8 | 8 |
Unrealized Loss | (6,032) | (5,603) |
Fair Value | 39,388 | 38,408 |
United States sponsored mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 99,792 | 91,939 |
Unrealized Gain | 145 | 992 |
Unrealized Loss | (11,920) | (10,549) |
Fair Value | 88,017 | 82,382 |
United States treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 106,324 | 106,401 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (5,761) | (6,045) |
Fair Value | 100,563 | 100,356 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 117,434 | 118,065 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (12,943) | (11,158) |
Fair Value | 104,491 | 106,907 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,078 | 9,076 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (130) | (134) |
Fair Value | 8,948 | 8,942 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,500 | 7,500 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 7,500 | 7,500 |
Total available-for-sale debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 385,540 | 376,984 |
Unrealized Gain | 153 | 1,000 |
Unrealized Loss | (36,786) | (33,489) |
Fair Value | 348,907 | 344,495 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 771 | 780 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | $ 771 | $ 780 |
Investment Securities - Schedul
Investment Securities - Schedule of Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Fair Value | $ 349,678 | $ 345,275 |
Total available-for-sale debt securities | ||
Amortized Cost | ||
Within one year | 96,995 | |
After one year, but within five years | 102,365 | |
After five years, but within ten years | 41,990 | |
After ten years | 144,190 | |
Amortized Cost | 385,540 | |
Fair Value | ||
Within one year | 86,803 | |
After one year, but within five years | 96,832 | |
After five years, but within ten years | 37,664 | |
After ten years | 127,608 | |
Fair Value | $ 348,907 | $ 344,495 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Investments in an unrealized loss position | ||
Amount of pretax loss if securities in an unrealized loss position are sold | $ 36,800,000 | |
Allowance for credit losses, continuous unrealized loss position | 0 | |
Asset Pledged as Collateral | Public Funds, Repurchase Agreements, and Potential Borrowings | ||
Investments in an unrealized loss position | ||
Amortized cost | $ 236,300,000 | $ 223,400,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Unrealized Loss Positions (Details) $ in Thousands | Mar. 31, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 24,883 | $ 3,172 |
Less than 12 months, unrealized loss | (180) | (77) |
12 months or more, fair value | 272,412 | 293,311 |
12 months or more, unrealized loss | $ (36,606) | $ (33,412) |
United States government agency securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 26 | 25 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 4,363 | $ 316 |
Less than 12 months, unrealized loss | (21) | 0 |
12 months or more, fair value | 33,669 | 34,619 |
12 months or more, unrealized loss | $ (6,011) | $ (5,603) |
United States sponsored mortgage-backed securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 54 | 47 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 19,467 | $ 0 |
Less than 12 months, unrealized loss | (146) | 0 |
12 months or more, fair value | 48,156 | 50,345 |
12 months or more, unrealized loss | $ (11,774) | $ (10,549) |
United States treasury securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 23 | 23 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 0 | $ 0 |
Less than 12 months, unrealized loss | 0 | 0 |
12 months or more, fair value | 100,563 | 100,354 |
12 months or more, unrealized loss | $ (5,761) | $ (6,045) |
Municipal securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 215 | 216 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 555 | $ 847 |
Less than 12 months, unrealized loss | (11) | (10) |
12 months or more, fair value | 86,573 | 106,060 |
12 months or more, unrealized loss | $ (12,932) | $ (11,148) |
Corporate debt securities | ||
Description and Number of Positions | ||
Number of investments in an unrealized loss position | loan | 7 | 7 |
Investments in an Unrealized Loss Position | ||
Less than 12 months, fair value | $ 498 | $ 2,009 |
Less than 12 months, unrealized loss | (2) | (67) |
12 months or more, fair value | 3,451 | 1,933 |
12 months or more, unrealized loss | $ (128) | $ (67) |
Investment Securities - Gains (
Investment Securities - Gains (Losses) on Sales of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of available-for-sale securities | $ 24,344 | |
Proceeds from sales of available-for-sale securities | 11,711 | $ 54,531 |
Gains, gross | 658 | 0 |
Losses, gross | 0 | 1,536 |
Unrealized holding losses on equity securities | $ (49) | $ (308) |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loan Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Components of loans | ||
Total loans | $ 2,266,191 | $ 2,316,174 |
Deferred loan origination costs, net | 1,119 | 1,420 |
Loans receivable | 2,267,310 | 2,317,594 |
Total commercial | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 1,567,697 | 1,601,688 |
Total commercial | Business | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 742,369 | 797,100 |
Total commercial | Real estate | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 681,067 | 670,584 |
Total commercial | Acquisition, development and construction | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 144,261 | 134,004 |
Residential real estate | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 660,444 | 672,547 |
Home equity lines of credit | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | 13,369 | 14,531 |
Consumer | ||
Components of loans | ||
Total loans, excluding purchased credit impaired loans | $ 24,681 | $ 27,408 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) loan category | Mar. 31, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Foreclosed properties held | $ 800 | ||
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 | ||
Liability for unfunded commitments | 1,000 | $ 1,000 | |
Charge-offs | $ 2,150 | $ 4,847 | 18,479 |
Number of loans modified in period | loan | 6 | 0 | |
Number of borrowers with modified loans | loan | 6 | ||
Total | $ 1,377 | ||
Minimum | |||
Financing Receivable, Impaired [Line Items] | |||
Percentage of commercial outstanding loan balances | 40% | ||
Maximum | |||
Financing Receivable, Impaired [Line Items] | |||
Percentage of commercial outstanding loan balances | 45% | ||
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Number foreclosed properties held | loan | 1,000,000 | ||
Investment in loans in the process of foreclosure | $ 200 | ||
Charge-offs | 0 | $ 22 | 400 |
Total | $ 0 | ||
Total commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Number foreclosed properties held | loan | 2 | ||
Charge-offs | $ 981 | 141 | |
Total | 1,377 | ||
Total commercial | Subprime Consumer Automotive Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Charge-offs | $ 600 | ||
Charge-off percentage | 27% | ||
Total commercial | Funded Loan | |||
Financing Receivable, Impaired [Line Items] | |||
Charge-offs | $ 400 | ||
Charge-off percentage | 18% | ||
Total commercial | Business | |||
Financing Receivable, Impaired [Line Items] | |||
Charge-offs | $ 981 | 141 | 4,572 |
Total | $ 1,377 | ||
Total commercial | Business | Government-Guaranteed Collateral | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified in period | loan | 6 | ||
Total | $ 1,400 | ||
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Charge-offs | 1,169 | $ 4,684 | $ 13,507 |
Total | 0 | ||
Consumer | Subprime Consumer Automotive Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Charge-offs | $ 1,200 | ||
Charge-off percentage | 55% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Total commercial business loans | |||
2024 | $ 62,883 | $ 301,566 | |
2023 | 327,448 | 927,564 | |
2022 | 888,319 | 459,305 | |
2021 | 445,329 | 143,841 | |
2020 | 105,844 | 96,656 | |
Prior | 331,101 | 256,790 | |
Revolving Loans Amortized Cost Basis | 105,267 | 130,452 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,266,191 | 2,316,174 | |
Gross charge-offs | |||
2024 | 0 | 1,144 | |
2023 | 189 | 10,836 | |
2022 | 1,447 | 3,003 | |
2021 | 147 | 141 | |
2020 | 0 | 19 | |
Prior | 367 | 3,336 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,150 | $ 4,847 | 18,479 |
Total commercial | |||
Total commercial business loans | |||
Total | 1,567,697 | 1,601,688 | |
Gross charge-offs | |||
Total | 981 | 141 | |
Total commercial | Business | |||
Total commercial business loans | |||
2024 | 11,058 | 177,667 | |
2023 | 149,749 | 286,617 | |
2022 | 262,240 | 93,739 | |
2021 | 72,765 | 66,058 | |
2020 | 31,428 | 55,744 | |
Prior | 128,999 | 96,960 | |
Revolving Loans Amortized Cost Basis | 86,130 | 20,315 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 742,369 | 797,100 | |
Gross charge-offs | |||
2024 | 0 | 0 | |
2023 | 0 | 228 | |
2022 | 614 | 1,250 | |
2021 | 0 | 141 | |
2020 | 0 | 0 | |
Prior | 367 | 2,953 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 981 | 141 | 4,572 |
Total commercial | Real estate | |||
Total commercial business loans | |||
2024 | 37,733 | 80,553 | |
2023 | 112,029 | 149,189 | |
2022 | 134,778 | 213,612 | |
2021 | 217,187 | 11,952 | |
2020 | 11,813 | 32,517 | |
Prior | 167,009 | 131,522 | |
Revolving Loans Amortized Cost Basis | 518 | 51,239 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 681,067 | 670,584 | |
Gross charge-offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 0 |
Total commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2024 | 5,146 | 6,546 | |
2023 | 6,592 | 54,170 | |
2022 | 56,763 | 44,187 | |
2021 | 45,204 | 22,041 | |
2020 | 23,656 | 0 | |
Prior | 4,400 | 2,237 | |
Revolving Loans Amortized Cost Basis | 2,500 | 4,823 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 144,261 | 134,004 | |
Gross charge-offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 0 |
Residential real estate | |||
Total commercial business loans | |||
2024 | 8,946 | 33,867 | |
2023 | 56,959 | 414,454 | |
2022 | 417,220 | 100,177 | |
2021 | 104,920 | 42,475 | |
2020 | 38,947 | 7,866 | |
Prior | 30,627 | 22,893 | |
Revolving Loans Amortized Cost Basis | 2,825 | 50,815 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 660,444 | 672,547 | |
Gross charge-offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 19 | |
Prior | 0 | 381 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 22 | 400 |
Home equity lines of credit | |||
Total commercial business loans | |||
2024 | 0 | 638 | |
2023 | 58 | 3,942 | |
2022 | 36 | 1,779 | |
2021 | 0 | 1,306 | |
2020 | 0 | 501 | |
Prior | 11 | 3,125 | |
Revolving Loans Amortized Cost Basis | 13,264 | 3,240 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 13,369 | 14,531 | |
Gross charge-offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 0 |
Consumer | |||
Total commercial business loans | |||
2024 | 0 | 2,295 | |
2023 | 2,061 | 19,192 | |
2022 | 17,282 | 5,811 | |
2021 | 5,253 | 9 | |
2020 | 0 | 28 | |
Prior | 55 | 53 | |
Revolving Loans Amortized Cost Basis | 30 | 20 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 24,681 | 27,408 | |
Gross charge-offs | |||
2024 | 0 | 1,144 | |
2023 | 189 | 10,608 | |
2022 | 833 | 1,753 | |
2021 | 147 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 2 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 1,169 | $ 4,684 | 13,507 |
Pass | |||
Total commercial business loans | |||
2024 | 62,883 | 300,188 | |
2023 | 326,177 | 890,814 | |
2022 | 856,203 | 431,438 | |
2021 | 402,882 | 138,327 | |
2020 | 100,564 | 85,038 | |
Prior | 282,918 | 217,610 | |
Revolving Loans Amortized Cost Basis | 103,903 | 130,366 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,135,530 | 2,193,781 | |
Pass | Total commercial | Business | |||
Total commercial business loans | |||
2024 | 11,058 | 176,309 | |
2023 | 148,499 | 251,265 | |
2022 | 230,313 | 92,307 | |
2021 | 71,110 | 64,964 | |
2020 | 30,347 | 50,765 | |
Prior | 119,528 | 90,355 | |
Revolving Loans Amortized Cost Basis | 85,322 | 20,315 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 696,177 | 746,280 | |
Pass | Total commercial | Real estate | |||
Total commercial business loans | |||
2024 | 37,733 | 80,553 | |
2023 | 112,029 | 149,189 | |
2022 | 134,778 | 205,651 | |
2021 | 191,268 | 11,952 | |
2020 | 11,813 | 26,438 | |
Prior | 131,047 | 101,322 | |
Revolving Loans Amortized Cost Basis | 518 | 51,239 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 619,186 | 626,344 | |
Pass | Total commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2024 | 5,146 | 6,546 | |
2023 | 6,592 | 54,170 | |
2022 | 56,763 | 29,535 | |
2021 | 30,552 | 22,041 | |
2020 | 23,656 | 0 | |
Prior | 3,692 | 1,483 | |
Revolving Loans Amortized Cost Basis | 2,500 | 4,823 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 128,901 | 118,598 | |
Pass | Residential real estate | |||
Total commercial business loans | |||
2024 | 8,946 | 33,867 | |
2023 | 56,959 | 413,466 | |
2022 | 417,220 | 96,413 | |
2021 | 104,709 | 38,169 | |
2020 | 34,748 | 7,306 | |
Prior | 28,585 | 21,313 | |
Revolving Loans Amortized Cost Basis | 2,705 | 50,815 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 653,872 | 661,349 | |
Pass | Home equity lines of credit | |||
Total commercial business loans | |||
2024 | 0 | 638 | |
2023 | 58 | 3,798 | |
2022 | 36 | 1,779 | |
2021 | 0 | 1,192 | |
2020 | 0 | 501 | |
Prior | 11 | 3,084 | |
Revolving Loans Amortized Cost Basis | 12,828 | 3,154 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 12,933 | 14,146 | |
Pass | Consumer | |||
Total commercial business loans | |||
2024 | 0 | 2,275 | |
2023 | 2,040 | 18,926 | |
2022 | 17,093 | 5,753 | |
2021 | 5,243 | 9 | |
2020 | 0 | 28 | |
Prior | 55 | 53 | |
Revolving Loans Amortized Cost Basis | 30 | 20 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 24,461 | 27,064 | |
Special Mention | |||
Total commercial business loans | |||
2024 | 0 | 990 | |
2023 | 0 | 32,403 | |
2022 | 29,776 | 22,685 | |
2021 | 26,104 | 5,090 | |
2020 | 4,935 | 6,832 | |
Prior | 22,405 | 15,717 | |
Revolving Loans Amortized Cost Basis | 271 | 86 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 83,491 | 83,803 | |
Special Mention | Total commercial | Business | |||
Total commercial business loans | |||
2024 | 0 | 990 | |
2023 | 0 | 32,342 | |
2022 | 29,776 | 72 | |
2021 | 185 | 830 | |
2020 | 817 | 339 | |
Prior | 4,094 | 3,767 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 34,872 | 38,340 | |
Special Mention | Total commercial | Real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 7,961 | |
2021 | 25,919 | 0 | |
2020 | 0 | 6,079 | |
Prior | 17,150 | 11,201 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 43,069 | 25,241 | |
Special Mention | Total commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 14,652 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 14,652 | |
Special Mention | Residential real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 4,224 | |
2020 | 4,118 | 414 | |
Prior | 1,161 | 708 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 5,279 | 5,346 | |
Special Mention | Home equity lines of credit | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 61 | |
2022 | 0 | 0 | |
2021 | 0 | 36 | |
2020 | 0 | 0 | |
Prior | 0 | 41 | |
Revolving Loans Amortized Cost Basis | 271 | 86 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 271 | 224 | |
Special Mention | Consumer | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Substandard | |||
Total commercial business loans | |||
2024 | 0 | 388 | |
2023 | 1,271 | 2,325 | |
2022 | 1,416 | 4,343 | |
2021 | 15,353 | 160 | |
2020 | 81 | 4,786 | |
Prior | 24,656 | 21,966 | |
Revolving Loans Amortized Cost Basis | 1,093 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 43,870 | 33,968 | |
Substandard | Total commercial | Business | |||
Total commercial business loans | |||
2024 | 0 | 368 | |
2023 | 1,250 | 988 | |
2022 | 1,227 | 521 | |
2021 | 691 | 0 | |
2020 | 0 | 4,640 | |
Prior | 4,349 | 1,436 | |
Revolving Loans Amortized Cost Basis | 808 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 8,325 | 7,953 | |
Substandard | Total commercial | Real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 18,812 | 18,999 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 18,812 | 18,999 | |
Substandard | Total commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 14,652 | 0 | |
2020 | 0 | 0 | |
Prior | 708 | 754 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 15,360 | 754 | |
Substandard | Residential real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 988 | |
2022 | 0 | 3,764 | |
2021 | 0 | 82 | |
2020 | 81 | 146 | |
Prior | 787 | 777 | |
Revolving Loans Amortized Cost Basis | 120 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 988 | 5,757 | |
Substandard | Home equity lines of credit | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 83 | |
2022 | 0 | 0 | |
2021 | 0 | 78 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 165 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 165 | 161 | |
Substandard | Consumer | |||
Total commercial business loans | |||
2024 | 0 | 20 | |
2023 | 21 | 266 | |
2022 | 189 | 58 | |
2021 | 10 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 220 | 344 | |
Doubtful | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 2,022 | |
2022 | 924 | 839 | |
2021 | 990 | 264 | |
2020 | 264 | 0 | |
Prior | 1,122 | 1,497 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 3,300 | 4,622 | |
Doubtful | Total commercial | Business | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 2,022 | |
2022 | 924 | 839 | |
2021 | 779 | 264 | |
2020 | 264 | 0 | |
Prior | 1,028 | 1,402 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,995 | 4,527 | |
Doubtful | Total commercial | Real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Doubtful | Total commercial | Acquisition, development and construction | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Doubtful | Residential real estate | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 211 | 0 | |
2020 | 0 | 0 | |
Prior | 94 | 95 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 305 | 95 | |
Doubtful | Home equity lines of credit | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Doubtful | Consumer | |||
Total commercial business loans | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | $ 0 | $ 0 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Aging (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 2,266,191 | $ 2,316,174 |
Non-Accrual | 7,546 | 8,267 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 3,095 | 2,579 |
Interest Income Recognized | 0 | 0 |
Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,567,697 | 1,601,688 |
Non-Accrual | 5,567 | 7,680 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 2,691 | 2,579 |
Interest Income Recognized | 0 | 0 |
Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 742,369 | 797,100 |
Non-Accrual | 4,859 | 6,926 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 1,983 | 1,825 |
Interest Income Recognized | 0 | 0 |
Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 681,067 | 670,584 |
Non-Accrual | 0 | 0 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 144,261 | 134,004 |
Non-Accrual | 708 | 754 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 708 | 754 |
Interest Income Recognized | 0 | 0 |
Residential real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 660,444 | 672,547 |
Non-Accrual | 1,678 | 82 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 404 | 0 |
Interest Income Recognized | 0 | 0 |
Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 13,369 | 14,531 |
Non-Accrual | 81 | 161 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 24,681 | 27,408 |
Non-Accrual | 220 | 344 |
90+ Days Still Accruing | 0 | 0 |
Non Accrual with No Credit Loss | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Current | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 2,238,383 | 2,302,159 |
Current | Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,544,184 | 1,592,604 |
Current | Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 735,578 | 788,430 |
Current | Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 678,997 | 670,170 |
Current | Total commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 129,609 | 134,004 |
Current | Residential real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 658,397 | 670,539 |
Current | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 13,264 | 14,522 |
Current | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 22,538 | 24,494 |
30-59 Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 6,901 | 8,200 |
30-59 Days Past Due | Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 5,158 | 4,728 |
30-59 Days Past Due | Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,088 | 4,728 |
30-59 Days Past Due | Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 2,070 | 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 real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 125 | 1,671 |
30-59 Days Past Due | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 105 | 9 |
30-59 Days Past Due | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,513 | 1,792 |
60-89 Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 15,935 | 1,977 |
60-89 Days Past Due | Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 15,201 | 862 |
60-89 Days Past Due | Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 549 | 448 |
60-89 Days Past Due | Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 0 | 414 |
60-89 Days Past Due | Total commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 14,652 | 0 |
60-89 Days Past Due | Residential real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 324 | 337 |
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 | 410 | 778 |
90+ Days Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 4,972 | 3,838 |
90+ Days Past Due | Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,154 | 3,494 |
90+ Days Past Due | Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,154 | 3,494 |
90+ Days Past Due | Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 0 | 0 |
90+ Days Past Due | Total commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 0 | 0 |
90+ Days Past Due | Residential real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,598 | 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 | 220 | 344 |
Total Past Due | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 27,808 | 14,015 |
Total Past Due | Total commercial | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 23,513 | 9,084 |
Total Past Due | Total commercial | Business | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 6,791 | 8,670 |
Total Past Due | Total commercial | Real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 2,070 | 414 |
Total Past Due | Total commercial | Acquisition, development and construction | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 14,652 | 0 |
Total Past Due | Residential real estate | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 2,047 | 2,008 |
Total Past Due | Home equity lines of credit | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | 105 | 9 |
Total Past Due | Consumer | ||
Aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 2,143 | $ 2,914 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Amortized Cost Basis of Collateral-Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | $ 21,685 | $ 4,534 |
Allowance for Credit Losses | 3,139 | 1,643 |
Collateral value | 37,355 | 3,567 |
Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 20,078 | 4,190 |
Allowance for Credit Losses | 2,958 | 1,583 |
Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 20,078 | 4,190 |
Allowance for Credit Losses | 2,958 | 1,583 |
Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Allowance for Credit Losses | 0 | 0 |
Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Allowance for Credit Losses | 0 | 0 |
Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 1,387 | 0 |
Allowance for Credit Losses | 35 | 0 |
Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Allowance for Credit Losses | 0 | 0 |
Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 220 | 344 |
Allowance for Credit Losses | 146 | 60 |
Real Estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 17,596 | 424 |
Collateral value | 34,924 | 301 |
Real Estate | Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 16,209 | 424 |
Real Estate | Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 16,209 | 424 |
Real Estate | Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Real Estate | Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Real Estate | Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 1,387 | 0 |
Real Estate | Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Real Estate | Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Vehicles and Equipment | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 2,952 | 2,621 |
Collateral value | 2,393 | 2,040 |
Vehicles and Equipment | Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 2,732 | 2,277 |
Vehicles and Equipment | Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 2,732 | 2,277 |
Vehicles and Equipment | Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Vehicles and Equipment | Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Vehicles and Equipment | Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Vehicles and Equipment | Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Vehicles and Equipment | Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 220 | 344 |
Assignment of Cash Flow | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Collateral value | 0 | 0 |
Assignment of Cash Flow | Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Assignment of Cash Flow | Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Accounts Receivable | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 442 | 452 |
Collateral value | 38 | 906 |
Accounts Receivable | Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 442 | 452 |
Accounts Receivable | Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 442 | 452 |
Accounts Receivable | Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Accounts Receivable | Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Accounts Receivable | Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Accounts Receivable | Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Accounts Receivable | Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Other | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 695 | 1,037 |
Collateral value | 0 | 320 |
Other | Total commercial | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 695 | 1,037 |
Other | Total commercial | Business | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 695 | 1,037 |
Other | Total commercial | Real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Other | Total commercial | Acquisition, development and construction | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Other | Residential real estate | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Other | Home Equity | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | 0 | 0 |
Other | Consumer | ||
Average recorded investment in impaired loans and related interest income recognized | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Changes in the allowance for loan losses | |||
Beginning balance | $ 22,124 | $ 23,837 | $ 23,837 |
Provision (release of allowance) for credit losses | 1,995 | 4,455 | |
Initial allowance on loans purchased with credit deterioration | 1,217 | ||
Charge-offs | (2,150) | (4,847) | (18,479) |
Recoveries | 835 | 3,169 | |
Ending balance | 22,804 | 35,513 | 22,124 |
Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | 7,682 | 7,682 | |
Total commercial | |||
Changes in the allowance for loan losses | |||
Beginning balance | 12,536 | 15,539 | 15,539 |
Provision (release of allowance) for credit losses | 2,109 | 1,282 | |
Initial allowance on loans purchased with credit deterioration | 710 | ||
Charge-offs | (981) | (141) | |
Recoveries | 50 | 29 | |
Ending balance | 13,714 | 14,735 | 12,536 |
Total commercial | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | (2,684) | (2,684) | |
Total commercial | Business | |||
Changes in the allowance for loan losses | |||
Beginning balance | 7,931 | 8,771 | 8,771 |
Provision (release of allowance) for credit losses | 1,297 | 681 | |
Initial allowance on loans purchased with credit deterioration | 710 | ||
Charge-offs | (981) | (141) | (4,572) |
Recoveries | 42 | 23 | |
Ending balance | 8,289 | 9,918 | 7,931 |
Total commercial | Business | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | (126) | (126) | |
Total commercial | Real estate | |||
Changes in the allowance for loan losses | |||
Beginning balance | 2,931 | 5,704 | 5,704 |
Provision (release of allowance) for credit losses | 365 | 313 | |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | 0 |
Recoveries | 8 | 6 | |
Ending balance | 3,304 | 3,177 | 2,931 |
Total commercial | Real estate | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | (2,846) | (2,846) | |
Total commercial | Acquisition, development and construction | |||
Changes in the allowance for loan losses | |||
Beginning balance | 1,674 | 1,064 | 1,064 |
Provision (release of allowance) for credit losses | 447 | 288 | |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | |
Ending balance | 2,121 | 1,640 | 1,674 |
Total commercial | Acquisition, development and construction | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | 288 | 288 | |
Residential real estate | |||
Changes in the allowance for loan losses | |||
Beginning balance | 6,412 | 2,880 | 2,880 |
Provision (release of allowance) for credit losses | (145) | 364 | |
Initial allowance on loans purchased with credit deterioration | 507 | ||
Charge-offs | 0 | (22) | (400) |
Recoveries | 35 | 0 | |
Ending balance | 6,302 | 7,618 | 6,412 |
Residential real estate | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | 3,889 | 3,889 | |
Home Equity | |||
Changes in the allowance for loan losses | |||
Beginning balance | 97 | 131 | 131 |
Provision (release of allowance) for credit losses | (8) | (8) | |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | 0 | 0 | 0 |
Recoveries | 1 | 1 | |
Ending balance | 90 | 119 | 97 |
Home Equity | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | (5) | (5) | |
Consumer | |||
Changes in the allowance for loan losses | |||
Beginning balance | 3,079 | 5,287 | 5,287 |
Provision (release of allowance) for credit losses | 39 | 2,817 | |
Initial allowance on loans purchased with credit deterioration | 0 | ||
Charge-offs | (1,169) | (4,684) | (13,507) |
Recoveries | 749 | 3,139 | |
Ending balance | $ 2,698 | 13,041 | 3,079 |
Consumer | Impact of adopting ASC 326, net of tax | |||
Changes in the allowance for loan losses | |||
Beginning balance | $ 6,482 | $ 6,482 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Amortized Cost Basis of Modified Loans (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 1,377 |
Total Class of Financing Receivable | 0% |
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 | 1,377 |
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 | $ 1,377 |
Total Class of Financing Receivable | 0% |
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 | 1,377 |
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 | $ 1,377 |
Total Class of Financing Receivable | 0% |
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 | 1,377 |
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 Class of Financing Receivable | 0% |
Total commercial | Real estate | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total commercial | Real estate | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Total commercial | Real estate | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Total Class of Financing Receivable | 0% |
Residential real estate | Principal Forgiveness | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | $ 0 |
Residential real estate | Payment Delay | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Term Extension | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Residential real estate | Interest Rate Reduction | |
Details related to loans identified as Troubled Debt Restructurings (TDRs): | |
Total | 0 |
Home equity 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 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Premises and equipment | ||
Gross premises and equipment | $ 42,648 | $ 45,179 |
Accumulated depreciation | (22,680) | (24,251) |
Premises and equipment, net | 19,968 | 20,928 |
Land | ||
Premises and equipment | ||
Gross premises and equipment | 4,062 | 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 | 15,762 | 18,300 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 6,592 | 7,140 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 3 | 45 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Lease liability | $ 13.7 | $ 14 |
Operating lease, right of use asset | $ 12.5 | $ 12.9 |
Operating lease, weighted average remaining lease term (in years) | 10 years 4 months 24 days | 10 years 6 months |
Operating lease, weighted average discount rate, (as a percentage) | 3.10% | 3.10% |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable and other assets | Accrued interest receivable and other assets |
Premises and Equipment - Lease
Premises and Equipment - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Amortization of right-of-use assets, finance leases | $ 1 | $ 6 |
Operating lease cost | 450 | 450 |
Short-term lease cost | 0 | 5 |
Variable lease cost | 0 | 10 |
Sublease income | (97) | (87) |
Total lease cost | $ 354 | $ 384 |
Premises and Equipment - Leas_2
Premises and Equipment - Lease Liability (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Leases | |
2025 | $ 1,326 |
2026 | 1,738 |
2027 | 1,611 |
2028 | 1,641 |
2029 | 1,629 |
2030 and thereafter | 8,320 |
Total future minimum lease payments | 16,265 |
Less: Amounts representing interest | (2,593) |
Present value of net future minimum lease payments | $ 13,672 |
Equity Method Investments (Deta
Equity Method Investments (Details) loan in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | Oct. 31, 2022 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on loans held-for-sale | $ 0 | $ 205 | |||
Equity method investments | 76,190 | $ 75,754 | |||
Equity method investment income (loss) | (1,128) | (1,193) | |||
Intercoastal | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 40% | ||||
Equity method investments | 22,900 | ||||
Equity method investment income (loss) | (200) | (1,200) | |||
Locked mortgage pipeline | 537,600 | 439,000 | |||
Warp Speed Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 37.50% | ||||
Equity method investments | 51,700 | ||||
Equity method investment income (loss) | (900) | 1,000 | |||
Locked mortgage pipeline | $ 253,200 | $ 267,800 | |||
Socure Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 10% | ||||
Ownership percentage in equity security investment | 1% | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Intercoastal | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | $ 9,857 | 9,406 | |||
Net income (loss) | (422) | (3,082) | |||
Gain on loans sold | 5,823 | 5,448 | |||
Gain on loans held-for-sale | $ 495 | $ 1,356 | |||
Volume of loans sold | loan | 266,598 | 302,782 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Warp Speed Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | $ 37,497 | $ 35,517 | |||
Net income (loss) | (2,448) | 2,682 | |||
Gain on loans sold | 11,208 | 2,975 | |||
Gain on loans held-for-sale | $ 587 | $ 9,707 | |||
Volume of loans sold | loan | 304,458 | 290,207 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 1,391,070 | $ 1,197,272 |
NOW | 530,745 | 538,444 |
Savings and money markets | 519,209 | 571,299 |
Time deposits, including CDs and IRAs | 704,305 | 594,461 |
Total deposits | 3,145,329 | 2,901,476 |
Time deposits that meet or exceed the FDIC insurance limit | $ 2,911 | $ 3,150 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deposits [Abstract] | ||
2025 | $ 324,373 | |
2026 | 116,157 | |
2027 | 130,763 | |
2028 | 51,732 | |
2029 | 81,257 | |
Thereafter | 23 | |
Total | 704,305 | |
Overdrawn deposits | $ 5,000 | $ 3,800 |
Borrowed Funds - Short-term Bor
Borrowed Funds - Short-term Borrowings, Long-term borrowings and Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Borrowed funds | ||
FHLB maximum borrowing capacity | $ 697,000,000 | |
FHLB, remaining borrowing capacity | 683,900,000 | |
FHLB, deposit letters of credit | 11,900,000 | |
FHLB, credit enhancement recourse obligations | 1,200,000 | |
Short-term Borrowings and Repurchase Agreements | ||
Long-term notes from the FHLB | 0 | $ 0 |
Short-term Borrowings from FHLB | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 0 | 0 |
Average balance during the period | 44,000 | 17,542,000 |
Maximum month-end balance | $ 0 | $ 0 |
Weighted-average rate during the period | 9.14% | 5.07% |
Weighted-average rate at end of period | 0% | 0% |
Federal Funds Purchased | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | $ 0 | $ 0 |
Investment Securities | ||
Short-term Borrowings and Repurchase Agreements | ||
Investment securities held as collateral | 3,900,000 | 4,900,000 |
Repurchase Agreements | ||
Short-term Borrowings and Repurchase Agreements | ||
Balance at end of period | 3,810,000 | 4,821,000 |
Average balance during the period | 2,951,000 | 5,662,000 |
Maximum month-end balance | $ 3,810,000 | $ 10,041,000 |
Weighted-average rate during the period | 0.01% | 0.02% |
Weighted-average rate at end of period | 0.01% | 0.01% |
Borrowed Funds - Subordinated D
Borrowed Funds - Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 30, 2020 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2007 | |
Subordinated Debt | |||||
Balance at end of period | $ 73,602 | $ 73,540 | |||
Subordinated Debt | |||||
Subordinated Debt | |||||
Balance at end of period | 73,602 | 73,540 | |||
Average balance during the period | 73,571 | 73,415 | |||
Maximum month-end balance | $ 73,602 | $ 73,540 | |||
Weighted-average rate during the period | 4.07% | 4.38% | |||
Weighted-average rate at end of period | 4.02% | 4.02% | |||
Face amount of debt issued | $ 30,000 | $ 40,000 | |||
Term of debt instrument | 10 years | 10 years | |||
Interest rate on debt security | 3.25% | 4.25% | |||
Subordinated Debt | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 2.54% | 4.01% | |||
Subordinated Debt | Subordinated Debentures | |||||
Subordinated Debt | |||||
Face amount of debt issued | $ 4,000 | ||||
Subordinated Debt | Subordinated Debentures | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 0.26% |
Borrowed Funds - Senior term lo
Borrowed Funds - Senior term loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Secured Borrowings | ||||
Balance at end of period | $ 6,549 | $ 6,786 | ||
Senior Loans | ||||
Secured Borrowings | ||||
Balance at end of period | 6,549 | 6,786 | ||
Average balance during the period | 6,736 | 9,007 | ||
Maximum month-end balance | $ 6,794 | $ 9,768 | ||
Weighted-average rate during the period | 8.18% | 8.50% | ||
Weighted-average rate at end of period | 7.63% | 8.76% | ||
Senior Loans | Raymond James Senior Term Loan | ||||
Secured Borrowings | ||||
Face amount of debt issued | $ 10,000 | $ 10,000 | ||
Upfront fee (as a percent) | 1% | |||
Senior Loans | Raymond James Senior Term Loan | First year | ||||
Secured Borrowings | ||||
Periodic principal payment | 125 | |||
Senior Loans | Raymond James Senior Term Loan | Thereafter | ||||
Secured Borrowings | ||||
Periodic principal payment | $ 250 | |||
Senior Loans | Raymond James Senior Term Loan | SOFR | ||||
Secured Borrowings | ||||
Base rate | 2.75% |
Pension and Supplemental Exec_3
Pension and Supplemental Executive Retirement Plans - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) installment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate used to re-measure pension obligation | 4.50% | |||
Service cost | $ 0 | $ 0 | ||
Amortization of prior service cost | $ 0 | $ 0 | ||
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate used to re-measure pension obligation | 4% | |||
Employment period | 3 years | |||
Benefit obligation | $ 1,800 | |||
Number of equal consecutive installments | installment | 180 | |||
Accrued liability | $ 1,400 | $ 1,400 | ||
Term of provision for delayed payment | 1 year |
Pension and Supplemental Exec_4
Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of net periodic pension cost | ||
Interest cost | $ 113 | $ 113 |
Expected return on plan assets | (157) | (164) |
Amortization of net actuarial loss | 43 | 29 |
Net periodic benefit (income) cost | (1) | (22) |
Contributions paid | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Cash and cash equivalents | $ 640,426 | $ 398,229 |
Securities available-for-sale | 349,678 | 345,275 |
Equity securities | 41,037 | 41,086 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 640,426 | 398,229 |
Securities available-for-sale | 349,678 | 345,275 |
Equity securities | 41,037 | 41,086 |
Loans held-for-sale | 629 | |
Loans receivable, net | 2,244,506 | 2,295,470 |
Servicing rights | 1,710 | 1,768 |
Accrued interest receivable | 17,885 | 15,267 |
FHLB Stock | 2,088 | 2,094 |
Financial Liabilities: | ||
Deposits | 3,145,329 | 2,901,476 |
Repurchase agreements | 3,810 | 4,821 |
Accrued interest payable | 3,064 | 2,385 |
Senior term loan | 6,549 | 6,786 |
Subordinated debt | 73,602 | 73,540 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 640,426 | 398,229 |
Securities available-for-sale | 349,678 | 345,275 |
Equity securities | 41,037 | 41,086 |
Loans held-for-sale | 629 | |
Loans receivable, net | 2,326,879 | 2,230,279 |
Servicing rights | 1,756 | 1,799 |
Accrued interest receivable | 17,885 | 15,267 |
FHLB Stock | 2,088 | 2,094 |
Financial Liabilities: | ||
Deposits | 3,102,867 | 2,587,246 |
Repurchase agreements | 3,810 | 4,821 |
Accrued interest payable | 3,064 | 2,385 |
Senior term loan | 6,503 | 6,786 |
Subordinated debt | 60,133 | 57,234 |
Interest rate swaps | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 7,784 | 6,249 |
Financial Liabilities: | ||
Derivative liability | 7,784 | 6,249 |
Interest rate swaps | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 7,784 | 6,249 |
Financial Liabilities: | ||
Derivative liability | 7,784 | 6,249 |
Fair value hedge | Carrying Value | ||
Financial Liabilities: | ||
Derivative liability | 729 | 6,111 |
Fair value hedge | Estimated Fair Value | ||
Financial Liabilities: | ||
Derivative liability | 729 | 6,111 |
Embedded derivative | Carrying Value | ||
Financial Assets: | ||
Derivative asset | 648 | 648 |
Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 648 | 648 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 640,426 | 398,229 |
Securities available-for-sale | 0 | 0 |
Equity securities | 3,800 | 3,590 |
Loans held-for-sale | 0 | |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FHLB Stock | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Senior term loan | 0 | 0 |
Subordinated debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Interest rate swaps | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Fair value hedge | Estimated Fair Value | ||
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level I) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Significant Other Observable Inputs (Level II) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 324,815 | 319,530 |
Equity securities | 0 | 0 |
Loans held-for-sale | 629 | |
Loans receivable, net | 0 | 0 |
Servicing rights | 0 | 0 |
Accrued interest receivable | 2,809 | 2,836 |
FHLB Stock | 2,088 | 2,094 |
Financial Liabilities: | ||
Deposits | 3,102,867 | 2,587,246 |
Repurchase agreements | 3,810 | 4,821 |
Accrued interest payable | 3,064 | 2,385 |
Senior term loan | 6,503 | 6,786 |
Subordinated debt | 60,133 | 57,234 |
Significant Other Observable Inputs (Level II) | Interest rate swaps | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 7,784 | 6,249 |
Financial Liabilities: | ||
Derivative liability | 7,784 | 6,249 |
Significant Other Observable Inputs (Level II) | Fair value hedge | Estimated Fair Value | ||
Financial Liabilities: | ||
Derivative liability | 729 | 6,111 |
Significant Other Observable Inputs (Level II) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Significant Unobservable Inputs (Level III) | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 24,863 | 25,745 |
Equity securities | 37,237 | 37,496 |
Loans held-for-sale | 0 | |
Loans receivable, net | 2,326,879 | 2,230,279 |
Servicing rights | 1,756 | 1,799 |
Accrued interest receivable | 15,076 | 12,431 |
FHLB Stock | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Senior term loan | 0 | 0 |
Subordinated debt | 0 | 0 |
Significant Unobservable Inputs (Level III) | Interest rate swaps | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Unobservable Inputs (Level III) | Fair value hedge | Estimated Fair Value | ||
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Unobservable Inputs (Level III) | Embedded derivative | Estimated Fair Value | ||
Financial Assets: | ||
Derivative asset | $ 648 | $ 648 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value of assets and liabilities | ||
Investment securities available-for-sale | $ 349,678 | $ 345,275 |
Equity securities | 41,037 | 41,086 |
Recurring | ||
Fair value of assets and liabilities | ||
Equity securities | 3,800 | 3,590 |
Loans held-for-sale | 0 | 629 |
Recurring | Level I | ||
Fair value of assets and liabilities | ||
Equity securities | 3,800 | 3,590 |
Loans held-for-sale | 0 | 0 |
Recurring | Level II | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 0 | 629 |
Recurring | Level III | ||
Fair value of assets and liabilities | ||
Equity securities | 0 | 0 |
Loans held-for-sale | 0 | 0 |
United States government agency securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 39,388 | 38,408 |
United States government agency securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 39,388 | 38,408 |
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 | 39,388 | 38,408 |
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 | 88,017 | 82,382 |
United States sponsored mortgage-backed securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 88,017 | 82,382 |
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 | 88,017 | 82,382 |
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 | 100,563 | 100,356 |
United States treasury securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 100,563 | 100,356 |
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 | 100,563 | 100,356 |
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 | 104,491 | 106,907 |
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 | 87,128 | 88,662 |
Municipal securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 17,363 | 18,245 |
Corporate debt securities | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,948 | 8,942 |
Corporate debt securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 8,948 | 8,942 |
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 | 8,948 | 8,942 |
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 | 771 | 780 |
Other securities | Recurring | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 771 | 780 |
Other securities | Recurring | Level I | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Other securities | Recurring | Level II | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 771 | 780 |
Other securities | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Investment securities available-for-sale | 0 | 0 |
Interest rate swaps | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 7,784 | 6,249 |
Derivative liability | 7,784 | 6,249 |
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 | 7,784 | 6,249 |
Derivative liability | 7,784 | 6,249 |
Interest rate swaps | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair value hedge | Recurring | ||
Fair value of assets and liabilities | ||
Derivative liability | 729 | 6,111 |
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 | 729 | 6,111 |
Fair value hedge | Recurring | Level III | ||
Fair value of assets and liabilities | ||
Derivative liability | 0 | 0 |
Embedded derivative | Recurring | ||
Fair value of assets and liabilities | ||
Derivative asset | 648 | 648 |
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 | $ 648 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Level III Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Embedded Derivatives | ||
Realized and unrealized gain (loss) included in earnings | $ 0 | $ (100) |
Total | ||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Realized and unrealized income included in earnings | |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Unrealized loss included in other comprehensive income (loss) | Unrealized gain included in other comprehensive income (loss) |
Level III | ||
Municipal Securities | ||
Beginning balance | $ 18,245 | $ 35,343 |
Realized and unrealized income (loss) included in earnings | 1 | 0 |
Purchase of securities | 0 | |
Maturities/calls | (70) | (67) |
Unrealized loss included in other comprehensive income (loss) | (813) | 1,182 |
Ending balance | 17,363 | 36,458 |
Embedded Derivatives | ||
Beginning balance | 648 | 787 |
Realized and unrealized gain (loss) included in earnings | 0 | (139) |
Purchase of securities | 0 | |
Maturities/calls | 0 | 0 |
Unrealized loss included in other comprehensive income (loss) | 0 | 0 |
Ending balance | 648 | 648 |
Total | ||
Beginning balance | 18,893 | 36,130 |
Realized and unrealized gain included in earnings | 1 | (139) |
Purchase of securities | 0 | |
Maturities/calls | (70) | (67) |
Unrealized loss included in other comprehensive income (loss) | (813) | 1,182 |
Ending balance | $ 18,011 | $ 37,106 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Collateral-dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 18,546 | $ 2,891 |
Collateral-dependent loans | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Collateral-dependent loans | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Collateral-dependent loans | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 18,546 | 2,891 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 825 | 825 |
Other real estate owned | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 825 | 825 |
Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 7,500 | 7,500 |
Other debt securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other debt securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Other debt securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 7,500 | 7,500 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 37,237 | 37,496 |
Equity securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Equity securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Equity securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 37,237 | $ 37,496 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level III Significant Unobservable Inputs (Details) $ in Thousands | Mar. 31, 2024 USD ($) yr | Dec. 31, 2023 USD ($) yr |
Non-recurring | Other debt securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 7,500 | $ 7,500 |
Non-recurring | Equity securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 37,237 | 37,496 |
Non-recurring | Collateral-dependent loans | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 18,546 | 2,891 |
Non-recurring | Collateral-dependent loans | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 18,546 | 2,891 |
Non-recurring | Other real estate owned | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 825 | 825 |
Non-recurring | Other real estate owned | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 825 | 825 |
Recurring | Municipal Securities | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | 17,363 | 18,245 |
Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Assets, fair value | $ 648 | $ 648 |
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 | 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 | 0.20 | |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0 | 0 |
Appraisal adjustments | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.20 | 0.20 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities | 0.05 | 0.05 |
Appraisal adjustments | Recurring | Municipal Securities | Appraisal of bond | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities | 0.15 | 0.15 |
Liquidation expense | Non-recurring | Collateral-dependent loans | Appraisal of collateral | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Collateral-dependent loans | 0.06 | |
Impaired loans | 0.06 | |
Liquidation expense | Non-recurring | Other real estate owned | Appraisal of collateral | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Other real estate owned | 0.06 | 0.06 |
Cost, less impairment | Non-recurring | Other debt securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Municipal securities | 0 | 0 |
Cost, less impairment | Non-recurring | Equity securities | Net asset value | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Securities | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Minimum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 0 | 0 |
Deferred payment | Recurring | Embedded derivative | Level III | Maximum | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 49,100 | 49,100 |
Volatility | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 0.59 | 59 |
Term | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | yr | 4.75 | 4.75 |
Risk free rate | Recurring | Embedded derivative | Level III | ||
Quantitative Information about Level III Fair Value Measurements | ||
Derivative asset measurement input | 3.59 | 3.59 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) derivative | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Number of fixed portfolio layer method fair value swaps | derivative | 5 | ||
Amortization adjustment | $ 13.5 | ||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest income | ||
Realized and unrealized loss included in earnings | $ 0 | $ (0.1) | |
Fair value hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 436.5 | ||
Fixed rate mortgages | |||
Derivatives, Fair Value [Line Items] | |||
Number of fixed portfolio layer method fair value swaps | derivative | 4 | ||
Fixed rate bonds | |||
Derivatives, Fair Value [Line Items] | |||
Number of fixed portfolio layer method fair value swaps | derivative | 1 | ||
Embedded derivative | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of embedded derivative | $ 0.6 | $ 0.6 |
Derivatives - Carrying Value of
Derivatives - Carrying Value of Hedging Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Amortized Cost Basis | $ 537,043 | $ 550,288 |
Hedged Asset | 436,459 | 440,297 |
Basis Adjustment | 269 | 5,625 |
Fixed rate mortgages | ||
Derivative [Line Items] | ||
Amortized Cost Basis | 478,727 | 491,018 |
Hedged Asset | 386,459 | 390,297 |
Basis Adjustment | (347) | 4,055 |
Fixed rate bonds | ||
Derivative [Line Items] | ||
Amortized Cost Basis | 58,316 | 59,270 |
Hedged Asset | 50,000 | 50,000 |
Basis Adjustment | $ 616 | $ 1,570 |
Derivatives - Outstanding Finan
Derivatives - Outstanding Financial Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 722,555 | $ 693,285 |
Fair Value of Asset (Liability) | (729) | (6,111) |
Gain (Loss) | 5,382 | (6,111) |
Designated as Hedging Instrument | Pay fixed rate swaps | Accrued interest receivable and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 436,459 | 440,297 |
Fair Value of Asset (Liability) | (729) | (6,111) |
Gain (Loss) | 5,382 | (6,111) |
Not Designated as Hedging Instrument | Matched interest rate swaps | Accrued interest receivable and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 143,048 | 126,494 |
Fair Value of Asset (Liability) | 7,784 | 6,249 |
Gain (Loss) | 7,784 | 6,249 |
Not Designated as Hedging Instrument | Matched interest rate swaps | Accrued interest payable and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 143,048 | 126,494 |
Fair Value of Asset (Liability) | (7,784) | (6,249) |
Gain (Loss) | $ (7,784) | $ (6,249) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator for earnings per share: | ||
Net income from continuing operations | $ 4,502 | $ 2,438 |
Net (income) loss attributable to noncontrolling interest | (20) | 122 |
Net income available to common shareholders from continuing operations | 4,482 | 2,560 |
Net income from discontinued operations available to common shareholders | 0 | 8,782 |
Net income attributable to parent | $ 4,482 | $ 11,342 |
Denominator: | ||
Weighted-average shares outstanding - basic (in shares) | 12,810,956 | 12,623,361 |
Effect of dilutive instruments (in shares) | 308,336 | 392,721 |
Weighted-average shares outstanding - diluted (in shares) | 13,119,292 | 13,016,082 |
Earnings per share from continuing operations - basic (in dollars per share) | $ 0.35 | $ 0.20 |
Earnings per share from discontinued operations - basic (in dollars per share) | 0 | 0.70 |
Earnings per common shareholder - basic (in dollars per share) | 0.35 | 0.90 |
Earnings per share from continuing operations - diluted (in dollars per share) | 0.34 | 0.20 |
Earnings per share from discontinued operations - diluted (in dollars per share) | 0 | 0.67 |
Earnings per common shareholder - diluted (in dollars per share) | $ 0.34 | $ 0.87 |
Stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Instruments not included in the computation of diluted EPS because the effect would be antidilutive (in shares) | 171,960 | 140,666 |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Comprehensive Income | ||
Gain (loss) on sale of available-for-sale securities | $ 658 | $ (1,536) |
Income taxes | (1,283) | (465) |
Salaries and employee benefits | (16,489) | (16,746) |
Interest on investment securities | 1,743 | 1,848 |
Amount reclassified from AOCI | ||
Comprehensive Income | ||
Realized gain (loss) recognized in income, net of tax | 467 | (935) |
Available-for-sale securities | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Gain (loss) on sale of available-for-sale securities | 658 | (1,536) |
Income taxes | (158) | 369 |
Realized gain (loss) recognized in income, net of tax | 500 | (1,167) |
Defined benefit pension plan items | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Income taxes | 10 | 7 |
Realized gain (loss) recognized in income, net of tax | (33) | (22) |
Salaries and employee benefits | (43) | (29) |
Investment hedge | Amount reclassified from AOCI | ||
Comprehensive Income | ||
Income taxes | 0 | (80) |
Realized gain (loss) recognized in income, net of tax | 0 | 254 |
Interest on investment securities | $ 0 | $ 334 |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | $ 289,342 | $ 261,391 |
Other comprehensive income (loss) before reclassification | (1,501) | 5,831 |
Amounts reclassified from accumulated other comprehensive income (loss) | (467) | 935 |
Total other comprehensive income (loss), net of tax | (1,968) | 6,766 |
Ending balance | 291,828 | 271,316 |
Accumulated other comprehensive income (loss) | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (28,831) | (37,704) |
Total other comprehensive income (loss), net of tax | (1,968) | 6,766 |
Ending balance | (30,799) | (30,938) |
Unrealized gains (losses) on available for-sale securities | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (25,871) | (34,829) |
Other comprehensive income (loss) before reclassification | (1,957) | 5,852 |
Amounts reclassified from accumulated other comprehensive income (loss) | (500) | 1,167 |
Total other comprehensive income (loss), net of tax | (2,457) | 7,019 |
Ending balance | (28,328) | (27,810) |
Defined benefit pension plan items | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | (2,994) | (3,129) |
Other comprehensive income (loss) before reclassification | 456 | (21) |
Amounts reclassified from accumulated other comprehensive income (loss) | 33 | 22 |
Total other comprehensive income (loss), net of tax | 489 | 1 |
Ending balance | (2,505) | (3,128) |
Investment hedge | ||
Accumulated Other Comprehensive Income (AOCI) | ||
Beginning balance | 34 | 254 |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (254) |
Total other comprehensive income (loss), net of tax | 0 | (254) |
Ending balance | $ 34 | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Interest income | $ 50,030 | $ 44,763 | |
Interest expense | 19,891 | 12,034 | |
NET INTEREST INCOME | 30,139 | 32,729 | |
Provision for credit losses | 1,997 | 4,576 | |
Net interest income after provision for credit losses | 28,142 | 28,153 | |
Noninterest income | 7,834 | 3,067 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 16,489 | 16,746 | |
Other expenses | 13,702 | 11,571 | |
Total noninterest expense | 30,191 | 28,317 | |
Income from continuing operations, before income taxes | 5,785 | 2,903 | |
Income taxes | 1,283 | 465 | |
Net income from continuing operations | 4,502 | 2,438 | |
Income from discontinued operations, before income taxes | 0 | 11,831 | |
Income taxes from discontinued operations | 0 | 3,049 | |
Net income from discontinued operations | 0 | 8,782 | |
Net income (loss), before noncontrolling interest | 4,502 | 11,220 | |
Net (income) loss attributable to noncontrolling interest | (20) | 122 | |
Net income attributable to parent | 4,482 | 11,342 | |
Capital expenditures | 921 | 908 | |
Assets | 3,547,390 | $ 3,313,882 | |
Goodwill | 2,838 | 2,838 | |
Operating Segments | CoRe Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 49,942 | 44,662 | |
Interest expense | 18,927 | 11,041 | |
NET INTEREST INCOME | 31,015 | 33,621 | |
Provision for credit losses | 1,997 | 4,576 | |
Net interest income after provision for credit losses | 29,018 | 29,045 | |
Noninterest income | 7,521 | 3,018 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 9,823 | 9,051 | |
Other expenses | 13,821 | 11,054 | |
Total noninterest expense | 23,644 | 20,105 | |
Income from continuing operations, before income taxes | 12,895 | 11,958 | |
Income taxes | 2,878 | 2,515 | |
Net income from continuing operations | 9,443 | ||
Income from discontinued operations, before income taxes | 0 | ||
Income taxes from discontinued operations | 0 | ||
Net income from discontinued operations | 0 | ||
Net income (loss), before noncontrolling interest | 10,017 | 9,443 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | 10,017 | 9,443 | |
Capital expenditures | 652 | 337 | |
Assets | 3,489,684 | 3,255,369 | |
Goodwill | 0 | 0 | |
Operating Segments | Mortgage Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 103 | 105 | |
Interest expense | 0 | 0 | |
NET INTEREST INCOME | 103 | 105 | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | 103 | 105 | |
Noninterest income | (1,129) | (1,186) | |
Noninterest Expenses: | |||
Salaries and employee benefits | 0 | 0 | |
Other expenses | 0 | 34 | |
Total noninterest expense | 0 | 34 | |
Income from continuing operations, before income taxes | (1,026) | (1,115) | |
Income taxes | (229) | (504) | |
Net income from continuing operations | (611) | ||
Income from discontinued operations, before income taxes | 0 | ||
Income taxes from discontinued operations | 0 | ||
Net income from discontinued operations | 0 | ||
Net income (loss), before noncontrolling interest | (797) | (611) | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | (797) | (611) | |
Capital expenditures | 0 | 0 | |
Assets | 84,448 | 83,909 | |
Goodwill | 0 | 0 | |
Operating Segments | Financial Holding Company | |||
Segment Reporting Information [Line Items] | |||
Interest income | 2 | 33 | |
Interest expense | 959 | 993 | |
NET INTEREST INCOME | (957) | (960) | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | (957) | (960) | |
Noninterest income | 2,265 | 2,410 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 4,678 | 4,950 | |
Other expenses | 1,841 | 1,917 | |
Total noninterest expense | 6,519 | 6,867 | |
Income from continuing operations, before income taxes | (5,211) | (5,417) | |
Income taxes | (1,157) | (942) | |
Net income from continuing operations | (4,475) | ||
Income from discontinued operations, before income taxes | 0 | ||
Income taxes from discontinued operations | 0 | ||
Net income from discontinued operations | 0 | ||
Net income (loss), before noncontrolling interest | (4,054) | (4,475) | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | (4,054) | (4,475) | |
Capital expenditures | 11 | 0 | |
Assets | 347,031 | 345,314 | |
Goodwill | 0 | 0 | |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | (6) | |
Interest expense | 22 | 31 | |
NET INTEREST INCOME | (22) | (37) | |
Provision for credit losses | 0 | ||
Net interest income after provision for credit losses | (22) | (37) | |
Noninterest income | 3,264 | 1,784 | |
Noninterest Expenses: | |||
Salaries and employee benefits | 1,988 | 2,745 | |
Other expenses | 2,127 | 1,525 | |
Total noninterest expense | 4,115 | 4,270 | |
Income from continuing operations, before income taxes | (873) | (2,523) | |
Income taxes | (209) | (604) | |
Net income from continuing operations | (1,919) | ||
Income from discontinued operations, before income taxes | 11,831 | ||
Income taxes from discontinued operations | 3,049 | ||
Net income from discontinued operations | 8,782 | ||
Net income (loss), before noncontrolling interest | (664) | 6,863 | |
Net (income) loss attributable to noncontrolling interest | (20) | 122 | |
Net income attributable to parent | (684) | 6,985 | |
Capital expenditures | 258 | 571 | |
Assets | 16,633 | 17,728 | |
Goodwill | 2,838 | 2,838 | |
Intercompany Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | (17) | (31) | |
Interest expense | (17) | (31) | |
NET INTEREST INCOME | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | 0 | 0 | |
Noninterest income | (4,087) | (2,959) | |
Noninterest Expenses: | |||
Salaries and employee benefits | 0 | 0 | |
Other expenses | (4,087) | (2,959) | |
Total noninterest expense | (4,087) | (2,959) | |
Income from continuing operations, before income taxes | 0 | 0 | |
Income taxes | 0 | 0 | |
Net income from continuing operations | 0 | ||
Income from discontinued operations, before income taxes | 0 | ||
Income taxes from discontinued operations | 0 | ||
Net income from discontinued operations | 0 | ||
Net income (loss), before noncontrolling interest | 0 | 0 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to parent | 0 | 0 | |
Capital expenditures | 0 | $ 0 | |
Assets | (390,406) | (388,438) | |
Goodwill | $ 0 | $ 0 |
Acquisition & Divestiture Act_3
Acquisition & Divestiture Activity - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
May 31, 2023 USD ($) shares | Feb. 28, 2023 USD ($) payment | Mar. 31, 2024 USD ($) | |
Business Acquisition [Line Items] | |||
(Gain) loss on acquisition and divestiture activity | $ 1.1 | ||
Common Class A | Flexia | |||
Business Acquisition [Line Items] | |||
Shares transferred for cancellation | shares | 800 | ||
Preferred Units | Flexia | |||
Business Acquisition [Line Items] | |||
Shares transferred for cancellation | shares | 1,500 | ||
Chartwell | Discontinued operations disposed of by sale | |||
Business Acquisition [Line Items] | |||
Net cash transferred for sale of discontinued operations | $ 14.4 | ||
Gain on sale of subsidiary | $ 11.8 | ||
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 | $ 1.2 |
Acquisition & Divestiture Act_4
Acquisition & Divestiture Activity - Net Income, Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Compliance and consulting income | $ 1,000 | $ 1,016 |
Salaries and employee benefits | 16,489 | 16,746 |
Other expenses | 1,983 | 2,397 |
Total noninterest expense | 30,191 | 28,317 |
Income, before income taxes | 0 | 11,831 |
Income taxes | 0 | 3,049 |
Net income from discontinued operations | $ 0 | 8,782 |
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 | |
Gain on sale of discontinued operations | 11,800 | |
Total income | 14,169 | |
Salaries and employee benefits | 2,082 | |
Other expenses | 256 | |
Total noninterest expense | 2,338 | |
Income, before income taxes | 11,831 | |
Income taxes | 3,049 | |
Net income from discontinued operations | $ 8,782 |
Uncategorized Items - mvbf-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |