Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Bancorp, Inc. | |
Entity Central Index Key | 0001295401 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 56,468,004 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Trading Symbol | tbbk |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Cash and due from banks | $ 11,678 | $ 2,440 |
Interest earning deposits at Federal Reserve Bank | 714,514 | 551,862 |
Total cash and cash equivalents | 726,192 | 554,302 |
Investment securities, available-for-sale, at fair value | 1,368,602 | 1,236,324 |
Investment securities, held-to-maturity (fair value $83,192 and $83,391, respectively) | 84,428 | 84,432 |
Commercial loans held-for-sale, at fair value | 570,426 | 688,471 |
Loans, net of deferred loan fees and costs | 1,510,395 | 1,501,976 |
Allowance for loan and lease losses | (9,954) | (8,653) |
Loans, net | 1,500,441 | 1,493,323 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,113 | 1,113 |
Premises and equipment, net | 18,056 | 18,895 |
Accrued interest receivable | 13,907 | 12,753 |
Intangible assets, net | 3,463 | 3,846 |
Deferred tax asset, net | 18,423 | 21,622 |
Investment in unconsolidated entity, at fair value | 58,258 | 59,273 |
Assets held-for-sale from discontinued operations | 188,025 | 197,831 |
Other assets | 75,642 | 65,726 |
Total assets | 4,626,976 | 4,437,911 |
Deposits | ||
Demand and interest checking | 3,993,828 | 3,904,638 |
Savings and money market | 31,470 | 31,076 |
Total deposits | 4,025,298 | 3,935,714 |
Securities sold under agreements to repurchase | 93 | 93 |
Subordinated debentures | 13,401 | 13,401 |
Long-term borrowings | 41,499 | 41,674 |
Other liabilities | 111,905 | 40,253 |
Total liabilities | 4,192,196 | 4,031,135 |
SHAREHOLDERS' EQUITY | ||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,568,004 and 56,446,088 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 56,568 | 56,446 |
Treasury stock, at cost (100,000 shares) | (866) | (866) |
Additional paid-in capital | 367,483 | 366,181 |
Accumulated earnings (deficit) | 17,113 | (817) |
Accumulated other comprehensive loss | (5,518) | (14,168) |
Total shareholders' equity | 434,780 | 406,776 |
Total liabilities and shareholders' equity | $ 4,626,976 | $ 4,437,911 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment securities, held-to-maturity, fair value | $ 83,192 | $ 83,391 |
SHAREHOLDERS' EQUITY | ||
Common stock, authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, issued (in shares) | 56,568,004 | 56,446,088 |
Common stock, outstanding (in shares) | 56,568,004 | 56,446,088 |
Treasury stock (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income | ||
Loans, including fees | $ 30,499 | $ 23,302 |
Investment securities: | ||
Taxable interest | 10,530 | 9,699 |
Tax-exempt interest | 47 | 60 |
Federal funds sold/securities purchased under agreements to resell | 414 | |
Interest earning deposits | 2,502 | 1,832 |
Total interest income | 43,578 | 35,307 |
Interest expense | ||
Deposits | 8,870 | 4,969 |
Short-term borrowings | 503 | 104 |
Subordinated debentures | 195 | 160 |
Total interest expense | 9,568 | 5,233 |
Net interest income | 34,010 | 30,074 |
Provision for loan and lease losses | 1,700 | 700 |
Net interest income after provision for loan and lease losses | 32,310 | 29,374 |
Non-interest income | ||
Net realized and unrealized gains on commercial loans originated for sale | 10,763 | 11,729 |
Gain on sale of investment securities | 26 | |
Change in value of investment in unconsolidated entity | (1,171) | |
Leasing income | 695 | 487 |
Affinity fees | 102 | |
Other | 394 | 372 |
Total non-interest income | 30,365 | 29,095 |
Non-interest expense | ||
Salaries and employee benefits | 23,840 | 21,073 |
Depreciation and amortization | 974 | 1,031 |
Rent and related occupancy cost | 1,428 | 1,359 |
Data processing expense | 1,269 | 2,005 |
Printing and supplies | 140 | 189 |
Audit expense | 467 | 469 |
Legal expense | 1,324 | 2,431 |
Amortization of intangible assets | 383 | 383 |
Losses on sale and write downs on other real estate owned | 45 | |
FDIC insurance | 1,929 | 2,219 |
Software | 2,921 | 3,291 |
Insurance | 594 | 621 |
Telecom and IT network communications | 325 | 326 |
Consulting | 635 | 665 |
Civil money penalty (adjustment) | (290) | |
Other | 3,000 | 3,232 |
Total non-interest expense | 39,229 | 39,049 |
Income from continuing operations before income taxes | 23,446 | 19,420 |
Income tax expense | 6,035 | 5,399 |
Net income from continuing operations | 17,411 | 14,021 |
Discontinued operations | ||
Income from discontinued operations before income taxes | 805 | 156 |
Income tax expense | 286 | 37 |
Income from discontinued operations, net of tax | 519 | 119 |
Net income | $ 17,930 | $ 14,140 |
Net income per share from continuing operations - basic | $ 0.31 | $ 0.25 |
Net income per share from discontinued operations - basic | 0.01 | |
Net income per share - basic | 0.32 | 0.25 |
Net income per share from continuing operations - diluted | 0.31 | 0.25 |
Net income per share from discontinued operations - diluted | 0.01 | |
Net income per share - diluted | $ 0.32 | $ 0.25 |
Service Fees On Deposit Accounts [Member] | ||
Non-interest income | ||
Non-interest income, revenue | $ 47 | $ 1,576 |
ACH, Card And Other Payment Processing Fees [Member] | ||
Non-interest income | ||
Non-interest income, revenue | 2,303 | 1,692 |
Prepaid Card Fees [Member] | ||
Non-interest income | ||
Non-interest income, revenue | $ 16,163 | $ 14,282 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 17,930 | $ 14,140 |
Other comprehensive income (loss) | ||
Change in net unrealized gain (loss) during the period | 11,844 | (12,658) |
Reclassification adjustments for losses included in income | (26) | |
Amortization of losses previously held as available-for-sale | 7 | 10 |
Other comprehensive income (loss) | 11,851 | (12,674) |
Securities available-for-sale: | ||
Change in net unrealized gain (loss) during the period | 3,199 | (3,418) |
Reclassification adjustments for losses included in income | (7) | |
Amortization of losses previously held as available-for-sale | 2 | 3 |
Income tax (benefit) expense related to items of other comprehensive income (loss) | 3,201 | (3,422) |
Other comprehensive income (loss) net of tax and reclassifications into net income | 8,650 | (9,252) |
Comprehensive income | $ 26,580 | $ 4,888 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2017 | $ 55,861 | $ (866) | $ 363,196 | $ (89,485) | $ (4,557) | $ 324,149 |
Balance (in shares) at Dec. 31, 2017 | 55,861,150 | |||||
Net income | 14,140 | 14,140 | ||||
Common stock issued from option exercises, net of tax benefits | $ 13 | 99 | 112 | |||
Common stock issued from option exercises, net of tax benefits (in shares) | 12,594 | |||||
Common stock issued from restricted shares, net of tax benefits | $ 433 | (433) | ||||
Common stock issued from restricted shares, net of tax benefits (in shares) | 433,344 | |||||
Stock-based compensation | 743 | 743 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | (9,252) | (9,252) | ||||
Balance at Mar. 31, 2018 | $ 56,307 | (866) | 363,605 | (75,345) | (13,809) | 329,892 |
Balance (in shares) at Mar. 31, 2018 | 56,307,088 | |||||
Balance at Dec. 31, 2018 | $ 56,446 | (866) | 366,181 | (817) | (14,168) | $ 406,776 |
Balance (in shares) at Dec. 31, 2018 | 56,446,088 | 56,446,088 | ||||
Net income | 17,930 | $ 17,930 | ||||
Common stock issued from restricted shares, net of tax benefits | $ 122 | (122) | ||||
Common stock issued from restricted shares, net of tax benefits (in shares) | 121,916 | |||||
Stock-based compensation | 1,424 | 1,424 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | 8,650 | 8,650 | ||||
Balance at Mar. 31, 2019 | $ 56,568 | $ (866) | $ 367,483 | $ 17,113 | $ (5,518) | $ 434,780 |
Balance (in shares) at Mar. 31, 2019 | 56,568,004 | 56,568,004 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income from continuing operations | $ 17,411 | $ 14,021 |
Net income from discontinued operations | 519 | 119 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 1,357 | 1,414 |
Provision for loan and lease losses | 1,700 | 700 |
Net amortization of investment securities discounts/premiums | 4,149 | 3,580 |
Stock-based compensation expense | 1,424 | 743 |
Loans originated for sale | (403,241) | (152,574) |
Sale of commercial loans originated for resale | 491,005 | 316,124 |
Gain on sales of loans originated for resale | (11,198) | (11,661) |
Fair value adjustment on investment in unconsolidated entity | 1,171 | |
Writedown of other real estate owned | 45 | |
Change in fair value of loans held-for-sale | (329) | 1,455 |
Change in fair value of derivatives | 764 | (1,524) |
Gain on sales of investment securities | (26) | |
Increase in accrued interest receivable | (1,154) | (878) |
Increase in other assets | (13,550) | (8,011) |
Change in fair value of discontinued loans held for sale | 960 | |
Increase (decrease) in other liabilities | 10,125 | (22,357) |
Net cash provided by operating activities | 98,982 | 143,301 |
Investing activities | ||
Purchase of investment securities available-for-sale | (69,901) | (157,980) |
Proceeds from redemptions and prepayments of securities available-for-sale | 48,556 | 40,276 |
Net increase in loans | (5,944) | (71,379) |
Net decrease in discontinued loans held for sale | 6,478 | 14,578 |
Purchases of premises and equipment | (208) | |
Return of investment in unconsolidated entity | 1,015 | 3,286 |
Decrease (increase) in discontinued assets held for sale | 3,328 | (263) |
Net cash used in investing activities | (16,676) | (171,482) |
Financing activities | ||
Net increase (decrease) in deposits | 89,584 | (305,673) |
Net decrease in securities sold under agreements to repurchase | (35) | |
Proceeds from the issuance of common stock | 112 | |
Net cash provided by (used) in financing activities | 89,584 | (305,596) |
Net increase (decrease) in cash and cash equivalents | 171,890 | (333,777) |
Cash and cash equivalents, beginning of period | 554,302 | 908,935 |
Cash and cash equivalents, end of period | 726,192 | 575,158 |
Supplemental disclosure: | ||
Interest paid | 9,498 | 5,114 |
Taxes paid | 1,425 | $ 40 |
Non-cash investing and financing activities | ||
Investment securities received in securitization transaction | 41,633 | |
Investment securities purchased and not settled | $ 61,527 |
Structure Of Company
Structure Of Company | 3 Months Ended |
Mar. 31, 2019 | |
Structure Of Company [Abstract] | |
Structure Of Company | Note 1. Structure of Company The Bancorp, Inc. (the Company) is a Delaware corporation and a registered financial holding company. Its primary subsidiary is The Bancorp Bank (the Bank) which is wholly owned by the Company. The Bank is a Delaware chartered commercial bank located in Wilmington, Delaware and is a Federal Deposit Insurance Corporation (FDIC) insured institution. In its continuing operations, the Bank has four primary lines of specialty lending: securities-backed lines of credit (SBLOC), leasing (direct lease financing), Small Business Administration (SBA) loans and loans generated for sale into capital markets primarily through commercial loan securitizations (CMBS). Through the Bank, the Company also provides banking services nationally, which include prepaid card accounts, private label banking, deposit accounts to investment advisors’ customers, card payment and other payment processing. The Company and the Bank are subject to regulation by certain state and federal agencies and, accordingly, they are examined periodically by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s and the Bank’s businesses may be affected by state and federal legislation and regulations. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Basis of Presentation The financial statements of the Company, as of March 31, 2019 and for the three month periods ended March 31, 2019 and 2018, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K Report). The results of operations for the three month period ended March 31, 2019 may not necessarily be indicative of the results of operations for the full year ending December 31, 2019. Revenue Recognition The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of a contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration to which the Company expects to be entitled to in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the extent it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. The Company’s contracts generally do not contain terms that require significant judgment to determine the variability impacting the transaction price. A performance obligation is deemed satisfied when the control over goods or services is transferred to the customer. Control is transferred to a customer either at a point in time or over time. To determine when control is transferred at a point in time, the Company considers indicators, including but not limited to the right to payment for the asset, transfer of significant risk and rewards of ownership of the asset and acceptance of the asset by the customer. When control is transferred over a period of time, for different performance obligations, either the input or output method is used to measure progress for the transfer. The measure of progress used to assess completion of the performance obligation varies between performance obligations and may be based on time throughout the period of service or on the value of goods and services transferred to the customer. As each distinct service or activity is performed, the Company transfers control to the customer based on the services performed as the customer simultaneously receives the benefits of those services. This timing of revenue recognition aligns with the resolution of any uncertainty related to variable consideration. Costs incurred to obtain a revenue producing contract generally are expensed when incurred as a practical expedient as the contractual period for the majority of contracts is one year or less. The Company’s revenue streams that are in the scope of Accounting Standards Codification (AS C ) 606 include prepaid card, card payment, ACH and deposit processing and other fees. The fees on those revenue streams are generally assessed and collected as the transaction occurs, or on a monthly or quarterly basis. The Company has completed its review of the contracts and other agreements that are within the scope of revenue guidance and did not identify any material changes to the timing or amount of revenue recognition. The Company’s accounting policies did not change materially since the principles of revenue recognition in American Standards Update ( ASU ) 2014-09, “Revenue from Contracts with Customers” are largely consistent with previous practices already implemented and applied by the Company. The vast majority of the Company’s services related to its revenues are performed, earned and recognized monthly. Prepaid card fees primarily include fees for services related to reconciliation, fraud detection, regulatory compliance and other services which are performed and earned daily or monthly and are also billed and collected on a monthly basis. Accordingly, there is no significant component of the services the Company performs or related revenues which are deferred. The Company earns transactional and/or interchange fees on prepaid card accounts when transactions occur and revenue is billed and collected monthly or quarterly. Certain volume or transaction based interchange expenses paid to payment networks such as Visa, reduce revenue which is presented net on the income statement. Card payment and ACH processing fees include transaction fees earned for processing merchant transactions. Revenue is recognized when a cardholder’s transaction is approved and settled, or monthly. ACH processing fees are earned on a per item basis as the transactions are processed for third party clients and are also billed and collected monthly. Service charges on deposit accounts include fees and other charges the Company receives to provide various services, including but not limited to, account maintenance, check writing, wire transfer and other services normally associated with deposit accounts. Revenue for these services is recognized monthly as the services are performed. The Company’s customer contracts do not typically have performance obligations and fees are collected and earned when the transaction occurs. The Company may, from time to time, waive certain fees for customers but generally does not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets and operating lease liabilities are included in our consolidated financial statements. ROU assets represent our right to use an underlying asset for the lease term and lease l iabilities represent our obligation to make lease payments pursuant to our leases. The ROU assets and liabilities are recognized at commencement of the lease based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its incremental borrowing rate. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stock-based Compensation [Abstract] | |
Stock-based Compensation | Note 3. Stock-based Compensation The Company recognizes compensation expense for stock options in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 718, “Stock Based Compensation”. The expense of the option is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is typically the vesting period. For grants subject to a service condition, the Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. In accordance with ASC 718, the Company estimates the number of options for which the requisite service is expected to be rendered . At March 31, 2019, the Company had three active stock-based compensation plans which are described in the Company’s 2018 Annual Report on Form 10-K. The Company granted 65,104 stock options with a vesting period of 4 years during the three months ended March 31, 2019. The weighted average grant-date fair value was $3.84 . The Company did not grant stock options in the first three months of 2018. There were no common stock options exercised in the three months ended March 31, 2019, and 15,000 common stock options were exercised during the three months ended March 31, 2018. A summary of the status of the Company’s stock options is presented below: Weighted average remaining Weighted average contractual Aggregate Shares exercise price term (years) intrinsic value Outstanding at January 1, 2019 1,276,500 $ 8.23 3.77 $ 511,200 Granted 65,104 8.57 3.88 - Exercised - - - - Expired - - - - Forfeited - - - - Outstanding at March 31, 2019 1,341,604 $ 8.25 3.83 $ 595,200 Exercisable at March 31, 2019 1,126,500 $ 8.43 3.04 $ 395,700 The Company granted 930,831 restricted stock units (RSUs) in the first three months of 2019 of which 863,331 have a vesting period of 3 years and 67,500 have a vesting period of one year. At issuance, the 930,831 RSUs granted in the first three months of 2019 had a fair value of $8.57 per unit. The Company did not grant RSUs in the first three months of 2018. A summary of the status of the Company’s RSUs is presented below: Weighted average Average remaining grant date contractual Shares fair value term (years) Outstanding at January 1, 2019 850,937 $ 8.84 1.44 Granted 930,831 8.57 2.72 Vested (121,916) 4.83 Forfeited (17,296) 8.96 Outstanding at March 31, 2019 1,642,556 $ 8.99 2.10 As of March 31, 2019, there was a total of $11.9 million of unrecognized compensation cost related to unvested awards under share-based plans. This cost is expected to be recognized over a weighted average period of approximately 1.7 years. Related compensation expense for the three months ended March 31, 2019 and 2018 was $1.4 million and $743,000 , respectively. The total issuance date fair value of RSUs vested and options exercised during the three months ended March 31, 2019 and 2018 was $589,000 and $2.1 million, respectively. The total intrinsic value of the options exercised and stock units vested in those respective periods were $1.0 million and $4.6 million. For the periods ended March 31, 2019 and 2018, the Company estimated fair value of each grant on the date of grant using the Black-Scholes options pricing model with the following weighed average assumptions: March 31, 2019 2018 Risk-free interest rate 2.63% - Expected dividend yield - - Expected volatility 41.83% - Expected lives (years) 1.0 - 6.3 - Expected volatility is based on the historical volatility of the Company’s stock and peer group comparisons over the expected life of the grant. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury strip rate in effect at the time of the grant. The life of the option is based on historical factors which include the contractual term, vesting period, exercise behavior and employee terminations. In accordance with the ASC 718, Stock Based Compensation, stock based compensation expense for the period ended March 31, 2019 is based on awards that are ultimately expected to vest and has been reduced for estimated forfeitures. The Company estimates forfeitures using historical data based upon the groups identified management . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings Per Share The Company calculates earnings per share under ASC 260, “Earnings Per Share”. Basic earnings per share exclude dilution and are computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. The following tables show the Company’s earnings per share for the periods presented: For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 17,411 56,522,015 $ 0.31 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 17,411 56,876,662 $ 0.31 For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 519 56,522,015 $ 0.01 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 519 56,876,662 $ 0.01 For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 17,930 56,522,015 $ 0.32 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 17,930 56,876,662 $ 0.32 Stock options for 9 19 , 000 shares, exercisable at prices between $6.75 and $8.57 per share, were outstanding at March 3 1, 2019 , and included in the dilutive earnings per share computation shares because the exercise price per share was less than the average market price. Stock options for 422,604 were anti-dilutive and not included in the earnings per share calculation. For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 14,021 56,141,830 $ 0.25 Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 14,021 57,023,121 $ 0.25 For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 119 56,141,830 $ - Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 119 57,023,121 $ - For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 14,140 56,141,830 $ 0.25 Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 14,140 57,023,121 $ 0.25 Stock options for 1,437,625 shares, exercisable at prices between $6.75 and $10.45 per share, were outstanding at March 31, 2018 and included in dilutive shares because the exercise price per share was less than the average market price. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investment Securities [Abstract] | |
Investment Securities | Note 5. Investment Securities The amortized cost, gross unrealized gains and losses, and fair values of the Company’s investment securities classified as available-for-sale and held-to-maturity at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): Available-for-sale March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 57,968 $ 299 $ (517) $ 57,750 Asset-backed securities * 256,384 148 (777) 255,755 Tax-exempt obligations of states and political subdivisions 7,547 83 (3) 7,627 Taxable obligations of states and political subdivisions 60,119 1,097 (59) 61,157 Residential mortgage-backed securities 377,584 719 (4,540) 373,763 Collateralized mortgage obligation securities 257,959 613 (2,072) 256,500 Commercial mortgage-backed securities 357,781 531 (2,262) 356,050 $ 1,375,342 $ 3,490 $ (10,230) $ 1,368,602 March 31, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 51,101 $ 135 $ (277) $ 50,959 Collateralized loan obligation securities 200,936 3 (500) 200,439 Other 4,347 10 - 4,357 $ 256,384 $ 148 $ (777) $ 255,755 Held-to-maturity March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,181 $ - $ (1,963) $ 7,218 Other debt securities - pooled 75,247 727 - 75,974 $ 84,428 $ 727 $ (1,963) $ 83,192 Available-for-sale December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 54,095 $ 146 $ (879) $ 53,362 Asset-backed securities * 189,850 104 (1,352) 188,602 Tax-exempt obligations of states and political subdivisions 7,546 50 (45) 7,551 Taxable obligations of states and political subdivisions 60,152 803 (520) 60,435 Residential mortgage-backed securities 377,199 648 (8,106) 369,741 Collateralized mortgage obligation securities 265,914 287 (3,994) 262,207 Commercial mortgage-backed securities 300,143 190 (5,907) 294,426 $ 1,254,899 $ 2,228 $ (20,803) $ 1,236,324 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 59,705 $ 87 $ (283) $ 59,509 Collateralized loan obligation securities 125,045 - (1,069) 123,976 Other 5,100 17 - 5,117 $ 189,850 $ 104 $ (1,352) $ 188,602 Held-to-maturity December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,168 $ - $ (1,890) $ 7,278 Other debt securities - pooled 75,264 849 - 76,113 $ 84,432 $ 849 $ (1,890) $ 83,391 Investments in Federal Home Loan Bank (FHLB) and Atlantic Central Bankers Bank stock are recorded at cost and amounted to $1.1 million at March 3 1 , 201 9 and December 31, 201 8 . The amortized cost and fair value of the Company’s investment securities at March 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Held-to-maturity Amortized Fair Amortized Fair cost value cost value Due before one year $ 1,375 $ 1,375 $ - $ - Due after one year through five years 52,306 52,485 - - Due after five years through ten years 263,121 262,405 - - Due after ten years 1,058,540 1,052,337 84,428 83,192 $ 1,375,342 $ 1,368,602 $ 84,428 $ 83,192 At March 30, 2019 and December 31, 2018, investment securities with a fair value of approximately $112.1 million and $116.0 million, respectively, were pledged to secure a line of credit with the FHLB. At March 31, 2019 and December 31, 2018, investment securities with a fair value of approximately $164.5 million and $169.5 million, respectively, were pledged to secure a line of credit with the Federal Reserve Bank. Fair values of available-for-sale securities are based on the fair market value s supplied by a third-party market data provider . T he fair values of held-to-maturity securities are based on the present value of cash flows, derived by the discount ing of expected cash flows from principal and interest using yield to maturity at the measurement date . Alternatively, held-to-maturity fair values may be based upon prices provided by securities dealers with expertise in the securities being evaluated, or actual trade data from an independent pricing service. The table below indicates the length of time individual securities had been in a continuous unrealized loss position at March 31, 2019 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 10 $ - $ - $ 40,716 $ (517) $ 40,716 $ (517) Asset-backed securities 27 172,285 (651) 11,042 (126) 183,327 (777) Tax-exempt obligations of states and political subdivisions 1 - - 1,132 (3) 1,132 (3) Taxable obligations of states and political subdivisions 8 1,277 (2) 10,295 (57) 11,572 (59) Residential mortgage-backed securities 116 18,640 (49) 282,268 (4,491) 300,908 (4,540) Collateralized mortgage obligation securities 39 27,500 (49) 167,534 (2,023) 195,034 (2,072) Commercial mortgage-backed securities 23 100,213 (314) 147,762 (1,948) 247,975 (2,262) Total temporarily impaired investment securities 224 $ 319,915 $ (1,065) $ 660,749 $ (9,165) $ 980,664 $ (10,230) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,217 $ (1,963) $ 7,217 $ (1,963) Total temporarily impaired investment securities 1 $ - $ - $ 7,217 $ (1,963) $ 7,217 $ (1,963) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2018 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 10 $ 679 $ (2) $ 41,719 $ (877) $ 42,398 $ (879) Asset-backed securities 26 148,753 (1,230) 11,506 (122) 160,259 (1,352) Tax-exempt obligations of states and political subdivisions 3 - - 3,625 (45) 3,625 (45) Taxable obligations of states and political subdivisions 22 4,492 (19) 35,599 (501) 40,091 (520) Residential mortgage-backed securities 118 17,168 (49) 302,407 (8,057) 319,575 (8,106) Collateralized mortgage obligation securities 44 1,522 (3) 193,355 (3,991) 194,877 (3,994) Commercial mortgage-backed securities 26 121,860 (2,020) 151,453 (3,887) 273,313 (5,907) Total temporarily impaired investment securities 249 $ 294,474 $ (3,323) $ 739,664 $ (17,480) $ 1,034,138 $ (20,803) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,278 $ (1,890) $ 7,278 $ (1,890) Total temporarily impaired investment securities 1 $ - $ - $ 7,278 $ (1,890) $ 7,278 $ (1,890) The Company owns one single issuer trust preferred security issued by an insurance company. The security is not rated by any bond rating service. At March 31, 2019, it had a book value of $9.2 million and a fair value of $7.2 million. The Company has evaluated the securities in the above tables as of March 31, 2019 and has concluded that none of these securities has impairment that is other-than-temporary. The Company evaluates whether a credit impairment exists by considering primarily the following factors: (a) the length of time and extent to which the fair value has been less than the amortized cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on contractually obligated interest and principal payments, (d) changes in the financial condition of the security’s underlying collateral and (e) the payment structure of the security. The Company’s determination of the best estimate of expected future cash flows, which is used to determine the credit loss amount, is a quantitative and qualitative process that incorporates information received from third-party sources and internal assumptions and judgments regarding the future performance of the security. The Company concluded that most of the securities that are in an unrealized loss position are in a loss position because of changes in market interest rates after the securities were purchased. Securities that have been in an unrealized loss position for 12 months or longer include other securities whose market values are sensitive to market interest rates. The Company’s unrealized loss for other debt securities, which include one single issuer trust preferred securities, is primarily related to general market conditions, including a lack of liquidity in the market. The severity of the temporary impairments in relation to the carrying amounts of the individual investments is consistent with market developments. The Company’s analysis of each investment is performed at the security level. As a result of its review, the Company concluded that other-than-temporary impairment did not exist due to the Company’s ability and intention to hold these securities and its expectation to recover their amortized cost basis. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Loans [Abstract] | |
Loans | Note 6. Loans The Company has several lending lines of business including SBA loans, direct lease financing, SBLOC and other specialty and consumer lending. The Company also originates loans for sale into commercial mortgage backed securitizations or to secondary government guaranteed loan markets. The Company has elected fair value treatment for these loans held-for-sale to better reflect the economics of the transactions. At March 31, 2019, the fair value of the loans held-for-sale was $570.4 million and their amortized cost was $566.8 million. Included in realized and unrealized gains (losses) on loans originated for sale in the consolidated statements of operations are changes in the estimated fair value of unsold loans. For the three months ended March 31, 2019, unrealized gains recognized for such changes in fair value were $329,000 . For the three months ended March 31, 2018, unrealized losses similarly recognized were $1.5 million. There were no changes in fair value related to credit risk. Interest earned on loans held-for-sale during the period held is recorded in Interest Income-Loans, including fees, in the consolidated statements of operations. The Bank also pledged the majority of its loans to the Federal Reserve Bank for that line of credit which it has never used. The amount of loans pledged varies and since the Bank does not utilize this line the collateral may be unpledged at any time. The line is maintained consistent with the Bank’s liquidity policy which maximizes potential liquidity. The Company has periodically sponsored the structuring of commercial mortgage loan securitizations. The loans sold to the commercial mortgage backed securitizations are transitional commercial mortgage loans which are made to improve and rehabilitate existing properties which are already cash flowing. Servicing rights are not retained. Each of the securitizations is considered a variable interest entity of which the Company is not the primary beneficiary. Further, true sale accounting has been applicable to each of the securitizations, as supported by a review performed by an independent third-party consultant. In each of the securitizations, the Company has obtained a tranche of certificates which are accounted for as available - for - sale debt securities. The securities are recorded at fair value at acquisition, which is determined by an independent third party based on the discounted cash flow method using unobservable (level 3) inputs. The loans securitized are structured with some prepayment protection and with extension options which are common for rehabilitation loans. It was expected that those factors would generally offset the impact of prepayments, which would therefore not be significant. Accordingly, prepayments on CRE1 through CRE4 were not assumed. However, as a result of higher than expected prepayments on CRE2, prepayments of 15% on CRE5 were assumed. The 15% prepayment rate is assumed to begin after the first year anniversary of the CRE5 security. Because of credit enhancements for each security, cash flows were not reduced by expected losses. For each of the securitizations, the Company has recorded a gain which is comprised of (i) the excess of consideration received by the Company in the transaction over the carrying value of the loans at securitization, less related transactions costs incurred; and (ii) the recognition of previously deferred origination and exit fees. A summary of securitizations and securities obtained from those securitizations for the periods ended March 31, 2019 and 2018 is as follows: · In the first quarter of 2019, the Compa ny sponsored The Bancorp Commer c i al Mortgage 201 9 -CRE5 Trust, securitizing $518.3 million of loans and recording a $10.8 million gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $41.6 million based upon an initial discount rate of 4.75% · In the first quarter of 2018, the Company sponsored The Bancorp Commercial Mortgage 2018-CRE3 Trust, securitizing $304.3 million of loans and recording an $11.7 million gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $28.4 based upon an initial discount rate of 5.79% . The Company analyzes credit risk prior to making loans on an individual loan basis. The Company considers relevant aspects of the borrowers’ financial position and cash flow, past borrower performance, management’s knowledge of market conditions, collateral and the ratio of loan amounts to estimated collateral value in making its credit determinations. Major classifications of loans, excluding loans held-for-sale, are as follows (in thousands): March 31, December 31, 2019 2018 SBA non-real estate $ 76,112 $ 76,340 SBA commercial mortgage 179,397 165,406 SBA construction 23,979 21,636 SBA loans * 279,488 263,382 Direct lease financing 384,930 394,770 SBLOC 791,986 785,303 Other specialty lending 34,425 31,836 Other consumer loans 9,301 16,302 1,500,130 1,491,593 Unamortized loan fees and costs 10,265 10,383 Total loans, net of deferred loan fees and costs $ 1,510,395 $ 1,501,976 Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $674,000 and $7.2 million at March 31, 2019 and December 31, 2018, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for loan and lease losses. * The following table shows SBA loans and SBA loans held-for-sale at the dates indicated (in thousands): March 31, December 31, 2019 2018 SBA loans, including deferred fees and costs of $7,326 and $7,478 for March 31, 2019 and December 31, 2018, respectively $ 286,814 $ 270,860 SBA loans included in held-for-sale 206,901 199,977 Total SBA loans $ 493,715 $ 470,837 The following table provides information about impaired loans at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBA non-real estate $ 273 $ 1,810 $ - $ 224 $ 1 SBA commercial mortgage - - - - - SBA construction 710 710 - 355 - Direct lease financing 414 526 - 426 5 Consumer - home equity 1,606 1,606 - 1,609 2 With an allowance recorded SBA non-real estate 4,341 4,341 3,324 3,941 20 SBA commercial mortgage 458 458 71 458 - SBA construction - - - - - Direct lease financing 398 398 151 416 8 Consumer - home equity 126 126 15 128 - Total SBA non-real estate 4,614 6,151 3,324 4,165 21 SBA commercial mortgage 458 458 71 458 - SBA construction 710 710 - 355 - Direct lease financing 812 924 151 842 13 Consumer - home equity 1,732 1,732 15 1,737 2 $ 8,326 $ 9,975 $ 3,561 $ 7,557 $ 36 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBA non-real estate $ 175 $ 1,469 $ - $ 334 $ - SBA commercial mortgage - - - - - Direct lease financing 437 548 - 425 28 Consumer - home equity 1,612 1,612 - 1,648 10 With an allowance recorded SBA non-real estate 3,541 3,541 2,806 2,816 70 SBA commercial mortgage 458 458 71 505 - Direct lease financing 434 434 145 617 66 Consumer - home equity 129 129 17 26 - Total SBA non-real estate 3,716 5,010 2,806 3,150 70 SBA commercial mortgage 458 458 71 505 - Direct lease financing 871 982 145 1,042 94 Consumer - home equity 1,741 1,741 17 1,674 10 $ 6,786 $ 8,191 $ 3,039 $ 6,371 $ 174 The following tables summarize the Company’s non-accrual loans, loans past due 90 days and still accruing and other real estate owned for the periods indicated (the Company had no non-accrual leases at March 31, 2019 or December 31, 2018) (in thousands): March 31 December 31, 2019 2018 Non-accrual loans SBA non-real estate $ 3,233 $ 2,590 SBA commercial mortgage 458 458 SBA construction 710 - Consumer 1,462 1,468 Total non-accrual loans 5,863 4,516 Loans past due 90 days or more and still accruing 2,483 954 Total non-performing loans 8,346 5,470 Other real estate owned - - Total non-performing assets $ 8,346 $ 5,470 Interest which would have been earned on loans classified as non-accrual at March 31, 2019 and 2018, was $127,000 and $55,000 , respectively. The Company’s loans that were modified as of March 31, 2019 and December 31, 2018 and considered troubled debt restructurings are as follows (dollars in thousands): March 31, 2019 December 31, 2018 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBA non-real estate 7 $ 1,819 $ 1,819 5 $ 1,564 $ 1,564 Direct lease financing 3 812 812 3 870 870 Consumer 2 507 507 2 513 513 Total 12 $ 3,138 $ 3,138 10 $ 2,947 $ 2,947 The balances below provide information as to how the loans were modified as troubled debt restructuring loans as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBA non-real estate $ - $ 77 $ 1,742 $ - $ 85 $ 1,479 Direct lease financing - 398 414 - 434 436 Consumer - - 507 - - 513 Total $ - $ 475 $ 2,663 $ - $ 519 $ 2,428 The following table summarizes, as of March 31, 2019, troubled debt restructuring loans that had been restructured within the last 12 months that have subsequently defaulted and which are included in the table above ( in thousands): Number Pre-modification recorded investment SBA non-real estate 1 $ 258 Total 1 $ 258 The Company had no commitments to extend additional credit to loans classified as troubled debt restructurings as of March 31, 201 9 . When loans are classified as troubled debt restructurings, their collateral is valued and a specific reserve is established if the collateral valuation, less disposition costs, is lower than the recorded value of the loan. As of March 31, 2019, there were twelve troubled debt restructured loans with a balance of $3.1 million which had specific reserve of $1.6 million . Approximately $1.5 million of these reserves related to the non-guaranteed portion of SBA loans for start-up businesses with the balance attributable to direct lease financing. A detail of the changes in the allowance for loan and lease losses by loan category and summary of loans evaluated individually and collectively for impairment is as follows (in thousands): March 31, 2019 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs (322) - - (106) - - - - (428) Recoveries 17 - - 12 - - - - 29 Provision (credit) 846 538 (15) 362 3 22 (29) (27) 1,700 Ending balance $ 5,177 $ 1,479 $ 235 $ 2,293 $ 396 $ 82 $ 79 $ 213 $ 9,954 Ending balance: Individually evaluated for impairment $ 3,324 $ 71 $ - $ 151 $ - $ - $ 15 $ - $ 3,561 Ending balance: Collectively evaluated for impairment $ 1,853 $ 1,408 $ 235 $ 2,142 $ 396 $ 82 $ 64 $ 213 $ 6,393 Loans: Ending balance $ 76,112 $ 179,397 $ 23,979 $ 384,930 $ 791,986 $ 34,425 $ 9,301 $ 10,265 $ 1,510,395 Ending balance: Individually evaluated for impairment $ 4,614 $ 458 $ 711 $ 812 $ - $ - $ 1,732 $ - $ 8,327 Ending balance: Collectively evaluated for impairment $ 71,498 $ 178,939 $ 23,268 $ 384,118 $ 791,986 $ 34,425 $ 7,569 $ 10,265 $ 1,502,068 December 31, 2018 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 $ 7,096 Charge-offs (1,348) (157) - (637) - - (21) - (2,163) Recoveries 57 13 - 64 - - 1 - 135 Provision (credit) 2,782 (35) 114 1,103 28 3 (453) 43 3,585 Ending balance $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Ending balance: Individually evaluated for impairment $ 2,806 $ 71 $ - $ 145 $ - $ - $ 17 $ - $ 3,039 Ending balance: Collectively evaluated for impairment $ 1,830 $ 870 $ 250 $ 1,880 $ 393 $ 60 $ 91 $ 240 $ 5,614 Loans: Ending balance $ 76,340 $ 165,406 $ 21,636 $ 394,770 $ 785,303 $ 31,836 $ 16,302 $ 10,383 $ 1,501,976 Ending balance: Individually evaluated for impairment $ 3,716 $ 458 $ - $ 871 $ - $ - $ 1,741 $ - $ 6,786 Ending balance: Collectively evaluated for impairment $ 72,624 $ 164,948 $ 21,636 $ 393,899 $ 785,303 $ 31,836 $ 14,561 $ 10,383 $ 1,495,190 March 31, 2018 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 7,096 Charge-offs (388) (157) - (56) - - (14) - (615) Recoveries 40 6 - 58 - - - - 104 Provision (credit) 391 130 97 (23) 15 92 15 (17) 700 Ending balance $ 3,188 $ 1,099 $ 233 $ 1,474 $ 380 $ 149 $ 582 $ 180 $ 7,285 Ending balance: Individually evaluated for impairment $ 1,464 $ 74 $ - $ - $ - $ 74 $ - $ - $ 1,612 Ending balance: Collectively evaluated for impairment $ 1,724 $ 1,025 $ 233 $ 1,474 $ 380 $ 75 $ 582 $ 180 $ 5,673 Loans: Ending balance $ 75,225 $ 149,227 $ 20,143 $ 385,467 $ 759,369 $ 45,729 $ 17,416 $ 10,488 $ 1,463,064 Ending balance: Individually evaluated for impairment $ 2,606 $ 458 $ - $ 1,532 $ - $ - $ 1,690 $ - $ 6,286 Ending balance: Collectively evaluated for impairment $ 72,619 $ 148,769 $ 20,143 $ 383,935 $ 759,369 $ 45,729 $ 15,726 $ 10,488 $ 1,456,778 The Company did no t have loans acquired with deteriorated credit quality at either March 31, 2019 or December 31, 2018. A detail of the Company’s delinquent loans by loan category is as follows (in thousands): March 31, 2019 30-59 Days 60-89 Days 90 Days Total Total past due past due or greater Non-accrual past due Current loans SBA non-real estate $ 242 $ - $ - $ 3,233 $ 3,475 $ 72,637 $ 76,112 SBA commercial mortgage 4,653 - - 458 5,111 174,286 179,397 SBA construction - - - 710 710 23,269 23,979 Direct lease financing 2,084 656 2,483 - 5,223 379,707 384,930 SBLOC 1,521 - - - 1,521 790,465 791,986 Other specialty lending - - - - - 34,425 34,425 Consumer - other - - - - - 2,578 2,578 Consumer - home equity - - - 1,462 1,462 5,261 6,723 Unamortized loan fees and costs - - - - - 10,265 10,265 $ 8,500 $ 656 $ 2,483 $ 5,863 $ 17,502 $ 1,492,893 $ 1,510,395 December 31, 2018 30-59 Days 60-89 Days 90 Days Total Total past due past due or greater Non-accrual past due Current loans SBA non-real estate $ 346 $ 125 $ - $ 2,590 $ 3,061 $ 73,279 $ 76,340 SBA commercial mortgage - - - 458 458 164,948 165,406 SBA construction - 694 - - 694 20,942 21,636 Direct lease financing 2,594 1,572 954 - 5,120 389,650 394,770 SBLOC 487 - - - 487 784,816 785,303 Other specialty lending 108 - - - 108 31,728 31,836 Consumer - other - - - - - 9,147 9,147 Consumer - home equity - - - 1,468 1,468 5,687 7,155 Unamortized loan fees and costs - - - - - 10,383 10,383 $ 3,535 $ 2,391 $ 954 $ 4,516 $ 11,396 $ 1,490,580 $ 1,501,976 The Company evaluates its loans under an internal loan risk rating system as a means of identifying problem loans. The following table provides information by credit risk rating indicator for each segment of the loan portfolio, excluding loans held-for-sale, at the dates indicated (in thousands): March 31, 2019 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBA non-real estate $ 68,088 $ 1,595 $ 5,010 $ - $ - $ - $ 1,419 $ 76,112 SBA commercial mortgage 173,162 271 5,111 - - 685 168 179,397 SBA construction 22,900 - 710 - - 369 - 23,979 Direct lease financing 371,706 - 5,673 - - 3,586 3,965 384,930 SBLOC 773,589 - - - - 12,600 5,797 791,986 Other specialty lending 34,425 - - - - - - 34,425 Consumer 5,676 - 1,462 - - - 2,163 9,301 Unamortized loan fees and costs - - - - - - 10,265 10,265 $ 1,449,546 $ 1,866 $ 17,966 $ - $ - $ 17,240 $ 23,777 $ 1,510,395 December 31, 2018 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBA non-real estate $ 67,809 $ 1,641 $ 4,517 $ - $ - $ 347 $ 2,026 $ 76,340 SBA commercial mortgage 158,667 273 458 - - 5,498 510 165,406 SBA construction 19,912 - 694 - - 843 187 21,636 Direct lease financing 382,860 2,157 1,456 - - 3,623 4,674 394,770 SBLOC 775,153 - - - - - 10,150 785,303 Other specialty lending 31,749 - - - - - 87 31,836 Consumer 5,849 - 1,742 - - - 8,711 16,302 Unamortized loan fees and costs - - - - - - 10,383 10,383 $ 1,441,999 $ 4,071 $ 8,867 $ - $ - $ 10,311 $ 36,728 $ 1,501,976 * For information on targeted loan review thresholds see “Allowance for Loan Losses ” in the 2018 Form 10-K Report in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Transactions with Affiliates
Transactions with Affiliates | 3 Months Ended |
Mar. 31, 2019 | |
Transactions with Affiliates [Abstract] | |
Transactions with Affiliates | N ote 7. Transactions with Affiliates The Bank maintains deposits for various affiliated companies totaling approximately $1.2 million and $2.6 million as of March 31, 2019 and December 31, 2018, respectively. The Bank has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons. All loans were made on substantially the same terms, including interest rate and collateral, as those prevailing at the time for comparable loans with persons not related to the lender. At March 31, 2019, these loans were current as to principal and interest payments and did not involve more than normal risk of collectability. Loans to these related parties amounted to $1.9 million at March 31, 2019 and $2.0 million at December 31, 2018. The Bank has periodically purchased securities under agreements to resell and engaged in other securities transactions through J.V.B. Financial Group, LLC (JVB), a broker dealer in which the Company’s Chairman is a registered representative and has a minority interest. The Company’s Chairman also serves as the President, a director and the Chief Investment Officer of Cohen & Company Financial Limited (formerly Euro Dekania Management Ltd.), a wholly-owned subsidiary of Cohen & Company Inc. (formerly Institutional Financial Markets Inc.), the parent company of JVB. In 2019, the Company purchased $480,000 of government guaranteed SBA loans for Community Reinvestment Act purposes from JVB. Prices for these loans are verified to market rates and no separate commissions or fees are paid to that firm. The Company purchased securities under agreements to resell through JVB primarily consisting of Government National Mortgage Association certificates which are full faith and credit obligations of the United States government issued at competitive rates. JVB was in compliance with all of the terms of the agreements at March 31, 2019 and had complied with all terms for all prior repurchase agreements. There were no repurchase agreements outstanding at March 31, 2019 and December 31, 2018, respectively. Mr. Hersh Kozlov, a director of the Company, is a partner at Duane Morris LLP, an international law firm. The Company paid Duane Morris LLP $480,00 and $812,000 for legal services for the three months ended March 31, 2019 and March 31, 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements ASC 825, “ Financial Instruments”, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many such instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Accordingly, estimated fair values are determined by the Company using the best available data and an estimation methodology it believes to be suitable for each category of financial instruments. Also, it is the Company’s general practice and intent to hold its financial instruments to maturity whether or not categorized as “available-for-sale” and not to engage in trading or sales activities, except for the sale of commercial loans to secondary markets. For fair value disclosure purposes, the Company utilized certain value measurement criteria required under ASC 820, “Fair Value Measurements and Disclosures”, as discussed below. During the three months ended March 31, 2019, there were no transfers between the three levels which categorize assets and liabilities by the type of information available for valuation purposes. Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Also, there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. Cash and cash equivalents, which are comprised of cash and due from banks, the Company’s balance at the Federal Reserve Bank and securities purchased under agreements to resell, had recorded values of $726.2 million and $554.3 million as of March 31, 2019 and December 31, 2018, respectively, which approximated fair values. The estimated fair values of investment securities are based on quoted market prices, if available, or estimated using a methodology based on management’s inputs. The fair values of the Company’s investment securities held-to-maturity and loans held-for-sale are based on using “unobservable inputs” that are the best information available in the circumstances. Level 3 investment security fair values are based on the present value of cash flows, which discounts expected cash flows from principal and interest using yield to maturity at the measurement date. FHLB and Atlantic Central Bankers Bank stock is held as required by those respective institutions and is carried at cost. Federal law requires a member institution of the FHLB to hold stock according to predetermined formulas. Atlantic Central Bankers Bank requires its correspondent banking institutions to hold stock as a condition of membership. Commercial loans held for sale generally have estimated fair values based upon market indications of the sales price of such loans from recent sales transactions. If such information is not available, fair values reflect cash flow analysis based upon pricing for similar loans. The net loan portfolio is valued using the present value of discounted cash flow where market prices were not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk. Accrued interest receivable has a carrying value that approximates fair value. On December 30, 2014, the Bank entered into an agreement for, and closed on, the sale of a portion of its discontinued commercial loan portfolio. The purchaser of the loan portfolio was a newly formed entity, 2014-1 LLC (Walnut Street). The price paid to the Bank for the loan portfolio which had a face value of approximately $267.6 million, was approximately $209.6 million, of which approximately $193.6 million was in the form of two notes issued by Walnut Street to the Bank; a senior note in the principal amount of approximately $178.2 million bearing interest at 1.5% per year and maturing in December 2024 and a subordinate note in the principal amount of approximately $15.4 million, bearing interest at 10.0% per year and maturing in December 2024. The balance of these notes comprises the balance of the investment in unconsolidated entity on the consolidated balance sheets, which is measured at fair value at each balance sheet date. The fair value was initially established by the sales price and the investment is marked quarterly to fair value , as determined using a discounted cash flow analysis . The change in value of investment in unconsolidated entity in the consolidated statements of operations reflects changes in estimated fair value. Interest paid to the bank on the note is credited to principal. Assets held-for-sale from discontinued operations are recorded at the lower of cost basis or market value. For loans, market value was determined using the discounted cash flow approach which converts expected cash flows from the loan portfolio by unit of measurement to a present value estimate. Unit of measurement was determined by loan type and for significant loans on an individual loan basis. The fair values of the Company’s loans classified as assets held-for-sale are based on “unobservable inputs” that are based on available information. Level 3 fair values are based on the present value of cash flows by unit of measurement. For commercial loans other than SBA loans, a market adjusted rate to discount expected cash flows from outstanding principal and interest to expected maturity at the measurement date was utilized. For SBA loans, market indications for similar loans were utilized. For other real estate owned, market value was based upon appraisals of the underlying collateral by third party appraisers, reduced by 7% to 10% for estimated selling costs. The estimated fair values of demand deposits (comprised of interest and non-interest bearing checking accounts, savings accounts, and certain types of money market accounts) are equal to the amount payable on demand at the reporting date (generally, their carrying amounts). The fair values of securities sold under agreements to repurchase and short term borrowings are equal to their carrying amounts as they are short-term borrowings. Time deposits, when outstanding, and subordinated debentures have a fair value estimated using a discounted cash flow calculation that applies current interest rates to discount expected cash flows. The carrying amount of accrued interest payable approximates its fair value. Long term borrowings resulted from sold loans which did not qualify for true sale accounting. They are presented in the amount of the principal of such loans. The fair values of interest rate swaps, recorded as part of Other Assets, are determined using models that use readily observable market inputs and a market standard methodology applied to the contractual terms of the derivatives, including the period to maturity and interest rate indices. The fair value of commitments to extend credit is estimated based on the amount of unamortized deferred loan commitment fees. The fair value of letters of credit is based on the amount of unearned fees plus the estimated cost to terminate the letters of credit. Fair values of unrecognized financial instruments, including commitments to extend credit, and the fair value of letters of credit are considered immaterial. The following tables provide information regarding carrying amounts and estimated fair values (in thousands ) as of the dates indicated : March 31, 2019 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,368,602 $ 1,368,602 $ - $ 1,344,757 $ 23,845 Investment securities, held-to-maturity 84,428 83,192 - 75,975 7,217 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,113 1,113 - - 1,113 Commercial loans held-for-sale 570,426 570,426 - - 570,426 Loans, net of deferred loan fees and costs 1,510,395 1,508,176 - - 1,508,176 Investment in unconsolidated entity 58,258 58,258 - - 58,258 Assets held-for-sale from discontinued operations 188,025 188,025 - - 188,025 Interest rate swaps, asset 917 917 - 917 - Demand and interest checking 3,993,828 3,993,828 3,993,828 - - Savings and money market 31,470 31,470 31,470 - - Subordinated debentures 13,401 9,788 - - 9,788 Securities sold under agreements to repurchase 93 93 93 - - December 31, 2018 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,236,324 $ 1,236,324 $ - $ 1,211,934 $ 24,390 Investment securities, held-to-maturity 84,432 83,391 - 76,113 7,278 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,113 1,113 - - 1,113 Commercial loans held-for-sale 688,471 688,471 - - 688,471 Loans, net of deferred loan fees and costs 1,501,976 1,503,780 - - 1,503,780 Investment in unconsolidated entity 59,273 59,273 - - 59,273 Assets held-for-sale from discontinued operations 197,831 197,831 - - 197,831 Interest rate swaps, asset 1,681 1,681 - 1,681 - Demand and interest checking 3,904,638 3,904,638 3,904,638 - - Savings and money market 31,076 31,076 31,076 - - Subordinated debentures 13,401 9,975 - - 9,975 Securities sold under agreements to repurchase 93 93 93 - - The assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy, are summarized below (in thousands) as of the dates indicated: Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs March 31, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 57,750 $ - $ 57,750 $ - Asset-backed securities 255,755 - 255,755 - Obligations of states and political subdivisions 68,784 - 68,784 - Residential mortgage-backed securities 373,763 - 373,763 - Collateralized mortgage obligation securities 256,500 - 256,500 - Commercial mortgage-backed securities 356,050 - 332,205 23,845 Total investment securities available-for-sale 1,368,602 - 1,344,757 23,845 Commercial loans held-for-sale 570,426 - - 570,426 Investment in unconsolidated entity 58,258 - - 58,258 Assets held-for-sale from discontinued operations 188,025 - - 188,025 Interest rate swaps, asset 917 - 917 - $ 2,186,228 $ - $ 1,345,674 $ 840,554 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 53,362 $ - $ 53,362 $ - Asset-backed securities 188,602 - 188,602 - Obligations of states and political subdivisions 67,986 - 67,986 - Residential mortgage-backed securities 369,741 - 369,741 - Collateralized mortgage obligation securities 262,207 - 262,207 - Commercial mortgage-backed securities 294,426 - 270,036 24,390 Total investment securities available-for-sale 1,236,324 - 1,211,934 24,390 Commercial loans held-for-sale 688,471 - - 688,471 Investment in unconsolidated entity 59,273 - - 59,273 Assets held-for-sale from discontinued operations 197,831 - - 197,831 Interest rate swaps, asset 1,681 - 1,681 - $ 2,183,580 $ - $ 1,213,615 $ 969,965 In addition, ASC 820 establishes a common definition for fair value to be applied to assets and liabilities. It clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It also establishes a framework for measuring fair value and expands disclosures concerning fair value measurements. ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Level 1 valuation is based on quoted market prices for identical assets or liabilities to which the Company has access at the measurement date. Level 2 valuation is based on other observable inputs for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets in active or inactive markets, inputs other than quoted prices that are observable for the asset or liability such as yield curves, volatilities, prepayment speeds, credit risks, default rates, or inputs that are derived principally from, or corroborated through, observable market data by market-corroborated reports. Level 3 valuation is based on “unobservable inputs” which the Company believes is the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s Level 3 asset activity for the categories shows for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans securities held-for-sale March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Beginning balance $ 24,390 $ 40,644 $ 688,471 $ 503,316 Transfers into level 3 - - - - Transfers out of level 3 - (74,355) - - Total gains or (losses) (realized/unrealized) Included in earnings - - 11,527 19,850 Included in other comprehensive loss 526 (688) - - Purchases, issuances, sales and settlements Purchases - 62,076 - - Issuances - - 403,241 866,303 Sales - - (532,813) (700,998) Settlements (1,071) (3,287) - - Ending balance $ 23,845 $ 24,390 $ 570,426 $ 688,471 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ - $ 376 $ (922) The Company’s Level 3 asset activity for the categories shows for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment in Assets held-for-sale unconsolidated entity from discontinued operations March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Beginning balance $ 59,273 $ 74,473 $ 197,831 $ 304,313 Transfers into level 3 - - - - Transfers out of level 3 - - - - Total gains or (losses) (realized/unrealized) Included in earnings - (3,689) - 352 Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 862 1,664 Sales - - (3,409) (35,000) Settlements (1,015) (11,511) (7,259) (62,754) Charge-offs - - - (10,744) Ending balance $ 58,258 $ 59,273 $ 188,025 $ 197,831 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ (3,689) $ - $ 352 Level 3 instruments only Fair value at Fair value at Range at Range at March 31, 2019 December 31, 2018 Valuation techniques Unobservable inputs March 31, 2019 December 31, 2018 Investment securities, available-for-sale $ 23,845 $ 24,390 Discounted cash flow Discount rate 4.26% 6.55% Investment securities, held-to-maturity 7,217 7,278 Discounted cash flow Discount rate 8.75% 8.80% Federal Home Loan Bank and Atlantic 1,113 1,113 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and 1,508,176 1,503,780 Discounted cash flow Discount rate 4.47% - 7.56% 4.22% - 6.93% costs Commercial - SBA 206,901 199,977 Traders' pricing Offered quotes $98.75 - $110 $99.125 - $110 Commercial - fixed 92,334 95,307 Discounted cash flow Discount rate 5.00% - 7.43% 5.23% - 6.92% Commercial - floating 271,191 393,187 Discounted cash flow Discount rate 5.75% - 6.45% 5.41% - 7.75% Commercial loans held-for-sale 570,426 688,471 Investment in unconsolidated entity 58,258 59,273 Discounted cash flow Discount rate 6.45% 6.30% Default rate 1.00% 1.00% Assets held-for-sale from discontinued 188,025 197,831 Discounted cash flow Discount rate, 3.86% - 8.36% 4.26% - 8.36% operations Credit analysis Subordinated debentures 9,788 9,975 Discounted cash flow Discount rate 8.75% 8.81% Fair values in the above table which are estimated by the discounted cash flow method, or using other valuation techniques, are subject to uncertainty resulting from the discount rate used, or other assumptions as of the reporting date. The discount rates used are based on market comparables which vary with credit spreads and interest rate movements or expected interest rate movements. Changes in these factors could have a significant impact on estimated fair values. Assets measured at fair value on a nonrecurring basis, segregated by fair value hierarchy, during the periods shown are summarized below (in thousands): Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs Description March 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 4,767 $ - $ - $ 4,767 Intangible assets 3,463 - - 3,463 $ 8,230 $ - $ - $ 8,230 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 3,747 $ - $ - $ 3,747 Intangible assets 3,846 - - 3,846 $ 7,593 $ - $ - $ 7,593 (1) The method of valuation approach for the impaired loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10% for estimated selling costs. Intangible assets are valued based upon internal analyses. At March 31, 2019, principal on impaired loans and troubled debt restructurings which is accounted for on the basis of the value of underlying collateral is shown at estimated fair value of $4.8 million. To arrive at that fair value, related loan principal of $8.3 million was reduced by specific reserves of $3.5 million within the allowance for loan losses as of that date, representing the deficiency between principal and estimated collateral values, which were reduced by estimated costs to sell. When the deficiency is deemed uncollectible, it is charged off by reducing the specific reserve and decreasing principal. Included in the impaired balance at March 31, 2019 were twelve troubled debt restructured loans with a balance of $3.1 million which had specific reserves of $1.6 million . Valuation techniques consistent with the market and/or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as recent sales of similar assets or observable market data for operational or carrying costs. In cases where such inputs were unobservable, the loan balance is reflected within the Level 3 hierarchy. The fair value of other real estate owned is based on an appraisal of the property using the market approach for valuation. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivatives [Abstract] | |
Derivatives | Note 9. Derivatives The Company utilizes derivative instruments to assist in the management of interest rate sensitivity by modifying the repricing, maturity and option characteristics on commercial real estate loans held-for-sale. These instruments are not accounted for as effective hedges. As of March 31, 2019, the Company had entered into seven interest rate swap agreements with an aggregate notional amount of $40.3 million. These swap agreements provide for the Company to receive an adjustable rate of interest based upon the three-month London Interbank Offering Rate (LIBOR). The Company recorded a loss of $765,000 for the three months ended March 31, 2019 to recognize the fair value of the derivative instruments which is reported in net realized and unrealized gains (losses) on commercial loans originated for sale in the consolidated statements of operations. The amount receivable by the Company under these swap agreements was $917,000 at March 31, 2019 which is reported in other assets. The Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $251,000 as of March 31, 2019. The maturity dates, notional amounts, interest rates paid and received and fair value of the Company’s remaining interest rate swap agreements as of March 31, 2019 are summarized below (dollars in thousands): March 31, 2019 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12% 2.74% 289 August 17, 2025 2,500 2.27% 2.68% 6 December 23, 2025 6,800 2.16% 2.60% 68 December 24, 2025 8,200 2.17% 2.60% 73 January 28, 2026 3,000 1.87% 2.76% 85 July 20, 2026 6,300 1.44% 2.76% 378 December 12, 2026 3,200 2.26% 2.60% 18 Total $ 40,300 $ 917 |
Other Identifiable Intangible A
Other Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Identifiable Intangible Assets [Abstract] | |
Other Identifiable Intangible Assets | Note 10. Other Identifiable Intangible Assets On November 29, 2012 , the Company acquired certain software rights for approximately $1.8 million for use in managing prepaid cards in connection with an acquisition. The software is being amortized over eight years. Amortization expense is $217,000 per year ( $301,00 0 over the remainder of the amortization period). The gross carrying amount of the software is $1.8 million , and as of March 31, 2019 and December 31, 2018, respectively, the accumulated amortization was $1. 5 million and $1.5 million. The Company accounts for its prepaid card customer list in accordance with ASC 350, “Intangibles-Goodwill and Other”. The acquisition of the Stored Value Solutions division of Marshall Bank First in 2007 resulted in a customer list intangible of $12.0 million which is being amortized over a 12 year period. Amortization expense is $1.0 million per year ( $ 750,000 over the remainder of the amortization period). The gross carrying amount of the customer list intangible is $12.0 million, and as of March 31, 2019 and December 31, 2018, respectively, the accumulated amortization was $ 11. 3 million and $11.0 million. In May 2016, the Company purchased approximately $60 million of lease receivables which resulted in a customer list intangible of $3.4 million that is being amortized over a 10 year period. A mortization expense is $340,000 per year ( $1.7 million over the next five years). The gross carrying amount of the customer list intangible is $3.4 millio n, and as of March 31, 2019 and December 31, 2018, respectively, the accumulated amortization was $993,000 and $908,000 . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases”. The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP, and disclosing key information about leasing arrangements. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company adopted this guidance on its effective date using a modified retrospective transition approach, applying the new standard to all leases existing at the date of initial application, January 1, 2019. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company has elected the practical expedients option which does not require reassessment of its prior conclusions about lease identification, lease classification and initial direct costs. The Company ha s not elected the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to it . The effect of this adoption was the recognition at January 1, 2019 of a $16.4 million operating lease right-of-use (ROU) asset, which has been adjusted for previously recorded accrued rent of $1.7 million , and an $18.1 million operating lease obligation. No opening retained earnings adjustments are necessary under the modified retrospective transition approach. The adoption of this guidance did not have an impact on the consolidated results of operations of the Company. The ASU also includes disclosure requirements for lessors which encompass the Company’s direct financing leases. The first disclosure requirement is to discuss significant shifts, if any, in the balance of unguaranteed residual assets and deferred selling profit on direct financing leases. The Company’s direct financing lease portfolio consists primarily of vehicles which are sold at the end of lease terms. The Company does not hold title to the vehicles prior to inception of the leases and, thus, selling profit is not expected or deferred. However, sales of the vehicles may result in income when sales prices exceed residual values. This income is reported in the consolidated statements of operations under non-interest income. Since the majority of the portfolio is comprised of vehicle leases, sales prices may differ from residual values as a result of changes in the used vehicle market for both commercial vehicles such as trucks or passenger vehicles. Additionally, the Company is required to disclose the scheduled maturities of its direct financing leases reconciled to the total lease receivables in the consolidated balance sheet, which are as follows (in thousands): Remaining 2019 $ 97,319 2020 96,571 2021 65,543 2022 33,014 2023 13,818 2024 and thereafter 2,668 Total undiscounted cash flows 308,933 Residual value * 115,217 Difference between undiscounted cash flows and discounted cash flows (39,220) Present value of lease payments recorded as lease receivables $ 384,930 * Of the $115,277,000, $26,998,000 is not guaranteed by the lessee. In June 2016, the FASB issued an update ASU 2016-13 – “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The Update changes the accounting for credit losses on loans and debt securities. For loans and held-to-maturity debt securities, the Update requires a current expected credit loss (CECL) approach to determine the allowance for credit losses. CECL requires loss estimates for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. Also, the Update eliminates the existing guidance for purchased credit impaired loans, but requires an allowance for purchased financial assets with more than insignificant deterioration since origination. In addition, the Update modifies the OTTI impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on improvements in credit. The guidance is effective in the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in the first quarter of 2019, the Company does not expect to elect that option. The Company is evaluating the impact of the Update on the consolidated financial statements. The Company expects the Update will result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments, as well as the addition of an allowance for debt securities. The amount of the increase will be impacted by the portfolio composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” which eliminates certain fair value disclosures, adds new disclosures and amends another disclosure applicable to the Company as follows. The amendment states that disclosure of measurement uncertainty of the fair values to changes in inputs will be required for the reporting date and not future dates. New fair value disclosures consist of disclosure of: a) total gains and losses in OCI from fair value changes in Level 3 assets and liabilities that are held on the balance sheet date; b) the range and weighted average of inputs and how the weighted average was calculated and c) if weighted average is not meaningful, other quantitative information that better reflects the distribution of inputs. ASU 2018-13 is effective for annual periods beginning after December 15, 2019. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 12. Regulatory Matters It is the policy of the Federal Reserve that financial holding companies should pay cash dividends on common stock only out of income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that a financial holding company should not maintain a level of cash dividends that undermines the financial holding company’s ability to serve as a source of strength to its banking subsidiaries . Various federal and state statutory provisions limit the amount of dividends that subsidiary banks can pay to their holding companies without regulatory approval. Under Delaware banking law, the Bank’s directors may declare dividends on common or preferred stock of so much of its net profits as they judge expedient, but the Bank must, before the declaration of a dividend on common stock from net profits, carry 50% of its net profits from the preceding period for which the dividend is paid to its surplus fund until its surplus fund amounts to 50% of its capital stock and thereafter must carry 25% of its net profits for the preceding period for which the dividend is paid to its surplus fund until its surplus fund amounts to 100% of its capital stock. In addition to these explicit limitations, federal and state regulatory agencies are authorized to prohibit a banking subsidiary or financial holding company from engaging in an unsafe or unsound practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice. In August 2015, the Bank entered into an Amendment to a 2014 Consent Order with the FDIC pursuant to which the Bank may not pay dividends without prior FDIC approval. On May 11, 2015, the Company received a Supervisory Letter pursuant to which the Company may not pay dividends without prior Federal Reserve approval. The Federal Reserve approved the payment of the interest on the Company’s trust preferred securities which was due March 15, 2019. Future payments are subject to future approval by the Federal Reserve. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are also subject to qualitative judgments by the regulators about components, risk weightings and other factors . |
Legal
Legal | 3 Months Ended |
Mar. 31, 2019 | |
Legal [Abstract] | |
Legal | Note 13. Legal The Company received a subpoena from the SEC, dated March 22, 2016, relating to an investigation by the SEC of the Company's restatement of its financial statements for the years ended December 31, 2010 through December 31, 2013 and the interim periods ended March 31, 2014, September 30, 2014 and September 30, 2014, which restatement was filed with the SEC on September 28, 2015, and the facts and circumstances underlying the restatement. The Company is cooperating fully with the SEC's investigation. The costs to respond to the subpoena and cooperate with the SEC's investigation have been material, and we expect such costs to continue to be material at least through the completion of the SEC’s investigation. On July 16, 2018, certain investors in a hotel project of one of the Bank’s former borrowers, 550 Seabreeze Development LLC (“Seabreeze Development”), filed an adversary action against the Bank and others in the United States Bankruptcy Court of the Southern District of Florida. The note for the related loan was sold in the second quarter of 2018 and the loan is no longer on the Bank’s books. The adversary action was filed within the context of a Chapter 11 bankruptcy proceeding in which Seabreeze Development is the debtor, and alleged that the Bank and others defrauded the plaintiffs into investing a total of $10.5 million in the project. Three causes of actions were asserted against the Bank: (i) fraud in the inducement; (ii) civil conspiracy; and (iii) aiding and abetting fraud. The Bank believed the claims were without merit and vigorously defended against them. On November 1, 2018, the bankruptcy court entered an order dismissing the claims against the Bank for lack of jurisdiction. The order further stated that the dismissal was without prejudice, and that the plaintiffs may file their causes of action in an appropriate forum . On February 7, 2019, certain investors filed a new action in the Circuit Court of the 11 th Judicial Circuit in and for Miami-Dade County, Florida, asserting: (i) fraudulent misrepresentation; (ii) negligent misrepresentation; (iii) aiding and abetting fraud; and (iv) civil conspiracy. Three additional investors were included as plaintiffs in the matter, increasing the total amount at issue to $12 million. The Bank has filed a motion to dismiss the state court action as to the Bank. Absent dismissal, the Bank intends to vigorously defend against the claims asserted. In addition, we are a party to various routine legal proceedings arising out of the ordinary course of our business. The Company believes that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or operations. |
Segment Financials
Segment Financials | 3 Months Ended |
Mar. 31, 2019 | |
Segment Financials [Abstract] | |
Segment Financials | Note 14. Segment Financials The Company performed a strategic evaluation of its businesses in the third quarter of 2014. As a result of the evaluation, the Company decided to discontinue its commercial lending operations, as described in Note 15, Discontinued Operations. The shift from a traditional bank balance sheet led the Company to evaluate its continuing operations. Based on the continuing operations of the Company, it was determined that there would be four segments of the business: specialty finance, payments, corporate and discontinued operations. The chief decision maker for these segments is the Chief Executive Officer. Specialty finance includes commercial loan sales and securitization, SBA loans, direct lease financing and security backed lines of credit and deposits generated by those business lines. Payments include prepaid card accounts, card payments, ACH processing and healthcare accounts and deposits generated by those business lines. Corporate includes the Company’s investment portfolio, corporate overhead and non-allocated expenses. Investment income is reallocated to the payments segment. These operating segments reflect the way the Company views its current operations. The following tables provide segment information for the periods indicated: For the three months ended March 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 30,473 $ - $ 13,105 $ - $ 43,578 Interest allocation - 13,105 (13,105) - - Interest expense 368 8,384 816 - 9,568 Net interest income (loss) 30,105 4,721 (816) - 34,010 Provision for loan and lease losses 1,700 - - - 1,700 Non-interest income 11,777 18,548 40 - 30,365 Non-interest expense 15,357 16,459 7,413 - 39,229 Income (loss) from continuing operations before taxes 24,825 6,810 (8,189) - 23,446 Income tax expense - - 6,035 - 6,035 Income (loss) from continuing operations 24,825 6,810 (14,224) - 17,411 Income from discontinued operations - - - 519 519 Net income (loss) $ 24,825 $ 6,810 $ (14,224) $ 519 $ 17,930 For the three months ended March 31, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 22,813 $ - $ 12,494 $ - $ 35,307 Interest allocation - 12,494 (12,494) - - Interest expense 928 3,902 403 - 5,233 Net interest income (loss) 21,885 8,592 (403) - 30,074 Provision for loan and lease losses 700 - - - 700 Non-interest income 12,710 16,354 31 - 29,095 Non-interest expense 15,140 16,194 7,715 - 39,049 Income (loss) from continuing operations before taxes 18,755 8,752 (8,087) - 19,420 Income tax expense - - 5,399 - 5,399 Income (loss) from continuing operations 18,755 8,752 (13,486) - 14,021 Income from discontinued operations - - - 119 119 Net income (loss) $ 18,755 $ 8,752 $ (13,486) $ 119 $ 14,140 March 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,084,895 $ 38,765 $ 2,315,291 $ 188,025 $ 4,626,976 Total liabilities $ 262,113 $ 3,659,509 $ 270,575 $ - $ 4,192,196 December 31, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,181,499 $ 43,737 $ 2,014,844 $ 197,831 $ 4,437,911 Total liabilities $ 281,326 $ 3,545,877 $ 203,932 $ - $ 4,031,135 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 15. Discontinued Operations The Company performed a strategic evaluation of its businesses in the third quarter of 2014 and decided to discontinue its commercial lending operations to focus on its specialty finance lending. The loans which constitute the commercial loan portfolio are in the process of disposition including transfers to other financial institutions. As such, financial results of the commercial lending operations are presented as separate from continuing operations on the consolidated statements of operations and assets of the commercial lending operations to be disposed are presented as assets held-for-sale on the consolidated balance sheets. The following table presents financial results of the commercial lending business included in net income from discontinued operations for the three months ended March 31, 2019 and 2018 (in thousands). For the three months ended March 31, 2019 2018 Interest income $ 2,025 $ 2,527 Interest expense - - Net interest income 2,025 2,527 Non interest income 14 364 Non interest expense 1,234 2,735 Income before taxes 805 156 Income tax expense 286 37 Net income $ 519 $ 119 March 31, December 31, 2019 2018 Loans, net $ 158,985 $ 170,662 Other real estate owned 29,040 27,169 Total assets $ 188,025 $ 197,831 Non-interest expense included fair value adjustments of $0 for the three months ended March 3 1 , 201 9 and $960,000 for t he three months ended March 3 1, 2018 . Discontinued operations loans are recorded at the lower of their cost or fair value. Fair value is determined using a discontinued cash flow analysis where projections of cash flows are developed in consideration of internal loan review analysis and default/prepayment assumptions for smaller pools of loans . The results of discontinued operations do not include any future severance payments. Of the approximately $1.1 billion in book value of loans in that portfolio as of the September 30, 2014 date of discontinuance of operations, $188.0 million of loans and other real estate owned remain in assets held - for - sale on the March 31, 2019 consolidated balance sheet as a result of loan sales, principal paydowns and fair value charges as of March 31, 2019 . The Company is attempting to dispose of those remaining loans and other real estate owned . Additionally, the c onsolidated b alance s heet reflects $58.3 million in investment in unconsolidated entity, which is comprised of notes owned by the Company as a result of the sale of certain discontinued loans to Walnut Street, see Note 8, Fair Value Measurements. The investment in Walnut Street is classified as continuing operations in the accompanying consolidated financial statements . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company evaluated its March 3 1, 2019 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements, not otherwise disclosed herein. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The financial statements of the Company, as of March 31, 2019 and for the three month periods ended March 31, 2019 and 2018, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K Report). The results of operations for the three month period ended March 31, 2019 may not necessarily be indicative of the results of operations for the full year ending December 31, 2019. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of a contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration to which the Company expects to be entitled to in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the extent it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. The Company’s contracts generally do not contain terms that require significant judgment to determine the variability impacting the transaction price. A performance obligation is deemed satisfied when the control over goods or services is transferred to the customer. Control is transferred to a customer either at a point in time or over time. To determine when control is transferred at a point in time, the Company considers indicators, including but not limited to the right to payment for the asset, transfer of significant risk and rewards of ownership of the asset and acceptance of the asset by the customer. When control is transferred over a period of time, for different performance obligations, either the input or output method is used to measure progress for the transfer. The measure of progress used to assess completion of the performance obligation varies between performance obligations and may be based on time throughout the period of service or on the value of goods and services transferred to the customer. As each distinct service or activity is performed, the Company transfers control to the customer based on the services performed as the customer simultaneously receives the benefits of those services. This timing of revenue recognition aligns with the resolution of any uncertainty related to variable consideration. Costs incurred to obtain a revenue producing contract generally are expensed when incurred as a practical expedient as the contractual period for the majority of contracts is one year or less. The Company’s revenue streams that are in the scope of Accounting Standards Codification (AS C ) 606 include prepaid card, card payment, ACH and deposit processing and other fees. The fees on those revenue streams are generally assessed and collected as the transaction occurs, or on a monthly or quarterly basis. The Company has completed its review of the contracts and other agreements that are within the scope of revenue guidance and did not identify any material changes to the timing or amount of revenue recognition. The Company’s accounting policies did not change materially since the principles of revenue recognition in American Standards Update ( ASU ) 2014-09, “Revenue from Contracts with Customers” are largely consistent with previous practices already implemented and applied by the Company. The vast majority of the Company’s services related to its revenues are performed, earned and recognized monthly. Prepaid card fees primarily include fees for services related to reconciliation, fraud detection, regulatory compliance and other services which are performed and earned daily or monthly and are also billed and collected on a monthly basis. Accordingly, there is no significant component of the services the Company performs or related revenues which are deferred. The Company earns transactional and/or interchange fees on prepaid card accounts when transactions occur and revenue is billed and collected monthly or quarterly. Certain volume or transaction based interchange expenses paid to payment networks such as Visa, reduce revenue which is presented net on the income statement. Card payment and ACH processing fees include transaction fees earned for processing merchant transactions. Revenue is recognized when a cardholder’s transaction is approved and settled, or monthly. ACH processing fees are earned on a per item basis as the transactions are processed for third party clients and are also billed and collected monthly. Service charges on deposit accounts include fees and other charges the Company receives to provide various services, including but not limited to, account maintenance, check writing, wire transfer and other services normally associated with deposit accounts. Revenue for these services is recognized monthly as the services are performed. The Company’s customer contracts do not typically have performance obligations and fees are collected and earned when the transaction occurs. The Company may, from time to time, waive certain fees for customers but generally does not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets and operating lease liabilities are included in our consolidated financial statements. ROU assets represent our right to use an underlying asset for the lease term and lease l iabilities represent our obligation to make lease payments pursuant to our leases. The ROU assets and liabilities are recognized at commencement of the lease based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its incremental borrowing rate. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock-based Compensation [Abstract] | |
Summary Of Status Of Company's Equity Compensation Plans | Weighted average remaining Weighted average contractual Aggregate Shares exercise price term (years) intrinsic value Outstanding at January 1, 2019 1,276,500 $ 8.23 3.77 $ 511,200 Granted 65,104 8.57 3.88 - Exercised - - - - Expired - - - - Forfeited - - - - Outstanding at March 31, 2019 1,341,604 $ 8.25 3.83 $ 595,200 Exercisable at March 31, 2019 1,126,500 $ 8.43 3.04 $ 395,700 |
Summary Of Status Of Company's Restricted Stock Units | Weighted average Average remaining grant date contractual Shares fair value term (years) Outstanding at January 1, 2019 850,937 $ 8.84 1.44 Granted 930,831 8.57 2.72 Vested (121,916) 4.83 Forfeited (17,296) 8.96 Outstanding at March 31, 2019 1,642,556 $ 8.99 2.10 |
Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model | March 31, 2019 2018 Risk-free interest rate 2.63% - Expected dividend yield - - Expected volatility 41.83% - Expected lives (years) 1.0 - 6.3 - |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following tables show the Company’s earnings per share for the periods presented: For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 17,411 56,522,015 $ 0.31 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 17,411 56,876,662 $ 0.31 For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 519 56,522,015 $ 0.01 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 519 56,876,662 $ 0.01 For the three months ended March 31, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 17,930 56,522,015 $ 0.32 Effect of dilutive securities Common stock options and restricted stock units - 354,647 - Diluted earnings per share Net earnings available to common shareholders $ 17,930 56,876,662 $ 0.32 Stock options for 9 19 , 000 shares, exercisable at prices between $6.75 and $8.57 per share, were outstanding at March 3 1, 2019 , and included in the dilutive earnings per share computation shares because the exercise price per share was less than the average market price. Stock options for 422,604 were anti-dilutive and not included in the earnings per share calculation. For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 14,021 56,141,830 $ 0.25 Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 14,021 57,023,121 $ 0.25 For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 119 56,141,830 $ - Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 119 57,023,121 $ - For the three months ended March 31, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 14,140 56,141,830 $ 0.25 Effect of dilutive securities Common stock options and restricted stock units - 881,291 - Diluted earnings per share Net earnings available to common shareholders $ 14,140 57,023,121 $ 0.25 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment Securities [Abstract] | |
Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity | Available-for-sale March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 57,968 $ 299 $ (517) $ 57,750 Asset-backed securities * 256,384 148 (777) 255,755 Tax-exempt obligations of states and political subdivisions 7,547 83 (3) 7,627 Taxable obligations of states and political subdivisions 60,119 1,097 (59) 61,157 Residential mortgage-backed securities 377,584 719 (4,540) 373,763 Collateralized mortgage obligation securities 257,959 613 (2,072) 256,500 Commercial mortgage-backed securities 357,781 531 (2,262) 356,050 $ 1,375,342 $ 3,490 $ (10,230) $ 1,368,602 March 31, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 51,101 $ 135 $ (277) $ 50,959 Collateralized loan obligation securities 200,936 3 (500) 200,439 Other 4,347 10 - 4,357 $ 256,384 $ 148 $ (777) $ 255,755 Held-to-maturity March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,181 $ - $ (1,963) $ 7,218 Other debt securities - pooled 75,247 727 - 75,974 $ 84,428 $ 727 $ (1,963) $ 83,192 Available-for-sale December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 54,095 $ 146 $ (879) $ 53,362 Asset-backed securities * 189,850 104 (1,352) 188,602 Tax-exempt obligations of states and political subdivisions 7,546 50 (45) 7,551 Taxable obligations of states and political subdivisions 60,152 803 (520) 60,435 Residential mortgage-backed securities 377,199 648 (8,106) 369,741 Collateralized mortgage obligation securities 265,914 287 (3,994) 262,207 Commercial mortgage-backed securities 300,143 190 (5,907) 294,426 $ 1,254,899 $ 2,228 $ (20,803) $ 1,236,324 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 59,705 $ 87 $ (283) $ 59,509 Collateralized loan obligation securities 125,045 - (1,069) 123,976 Other 5,100 17 - 5,117 $ 189,850 $ 104 $ (1,352) $ 188,602 Held-to-maturity December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,168 $ - $ (1,890) $ 7,278 Other debt securities - pooled 75,264 849 - 76,113 $ 84,432 $ 849 $ (1,890) $ 83,391 |
Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity | Available-for-sale Held-to-maturity Amortized Fair Amortized Fair cost value cost value Due before one year $ 1,375 $ 1,375 $ - $ - Due after one year through five years 52,306 52,485 - - Due after five years through ten years 263,121 262,405 - - Due after ten years 1,058,540 1,052,337 84,428 83,192 $ 1,375,342 $ 1,368,602 $ 84,428 $ 83,192 |
Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position | Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 10 $ - $ - $ 40,716 $ (517) $ 40,716 $ (517) Asset-backed securities 27 172,285 (651) 11,042 (126) 183,327 (777) Tax-exempt obligations of states and political subdivisions 1 - - 1,132 (3) 1,132 (3) Taxable obligations of states and political subdivisions 8 1,277 (2) 10,295 (57) 11,572 (59) Residential mortgage-backed securities 116 18,640 (49) 282,268 (4,491) 300,908 (4,540) Collateralized mortgage obligation securities 39 27,500 (49) 167,534 (2,023) 195,034 (2,072) Commercial mortgage-backed securities 23 100,213 (314) 147,762 (1,948) 247,975 (2,262) Total temporarily impaired investment securities 224 $ 319,915 $ (1,065) $ 660,749 $ (9,165) $ 980,664 $ (10,230) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,217 $ (1,963) $ 7,217 $ (1,963) Total temporarily impaired investment securities 1 $ - $ - $ 7,217 $ (1,963) $ 7,217 $ (1,963) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2018 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 10 $ 679 $ (2) $ 41,719 $ (877) $ 42,398 $ (879) Asset-backed securities 26 148,753 (1,230) 11,506 (122) 160,259 (1,352) Tax-exempt obligations of states and political subdivisions 3 - - 3,625 (45) 3,625 (45) Taxable obligations of states and political subdivisions 22 4,492 (19) 35,599 (501) 40,091 (520) Residential mortgage-backed securities 118 17,168 (49) 302,407 (8,057) 319,575 (8,106) Collateralized mortgage obligation securities 44 1,522 (3) 193,355 (3,991) 194,877 (3,994) Commercial mortgage-backed securities 26 121,860 (2,020) 151,453 (3,887) 273,313 (5,907) Total temporarily impaired investment securities 249 $ 294,474 $ (3,323) $ 739,664 $ (17,480) $ 1,034,138 $ (20,803) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,278 $ (1,890) $ 7,278 $ (1,890) Total temporarily impaired investment securities 1 $ - $ - $ 7,278 $ (1,890) $ 7,278 $ (1,890) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans [Abstract] | |
Major Classifications Of Loans | March 31, December 31, 2019 2018 SBA non-real estate $ 76,112 $ 76,340 SBA commercial mortgage 179,397 165,406 SBA construction 23,979 21,636 SBA loans * 279,488 263,382 Direct lease financing 384,930 394,770 SBLOC 791,986 785,303 Other specialty lending 34,425 31,836 Other consumer loans 9,301 16,302 1,500,130 1,491,593 Unamortized loan fees and costs 10,265 10,383 Total loans, net of deferred loan fees and costs $ 1,510,395 $ 1,501,976 |
Schedule Of Small Business Administation Loans And Held For Sale | March 31, December 31, 2019 2018 SBA loans, including deferred fees and costs of $7,326 and $7,478 for March 31, 2019 and December 31, 2018, respectively $ 286,814 $ 270,860 SBA loans included in held-for-sale 206,901 199,977 Total SBA loans $ 493,715 $ 470,837 |
Impaired Loans | March 31, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBA non-real estate $ 273 $ 1,810 $ - $ 224 $ 1 SBA commercial mortgage - - - - - SBA construction 710 710 - 355 - Direct lease financing 414 526 - 426 5 Consumer - home equity 1,606 1,606 - 1,609 2 With an allowance recorded SBA non-real estate 4,341 4,341 3,324 3,941 20 SBA commercial mortgage 458 458 71 458 - SBA construction - - - - - Direct lease financing 398 398 151 416 8 Consumer - home equity 126 126 15 128 - Total SBA non-real estate 4,614 6,151 3,324 4,165 21 SBA commercial mortgage 458 458 71 458 - SBA construction 710 710 - 355 - Direct lease financing 812 924 151 842 13 Consumer - home equity 1,732 1,732 15 1,737 2 $ 8,326 $ 9,975 $ 3,561 $ 7,557 $ 36 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBA non-real estate $ 175 $ 1,469 $ - $ 334 $ - SBA commercial mortgage - - - - - Direct lease financing 437 548 - 425 28 Consumer - home equity 1,612 1,612 - 1,648 10 With an allowance recorded SBA non-real estate 3,541 3,541 2,806 2,816 70 SBA commercial mortgage 458 458 71 505 - Direct lease financing 434 434 145 617 66 Consumer - home equity 129 129 17 26 - Total SBA non-real estate 3,716 5,010 2,806 3,150 70 SBA commercial mortgage 458 458 71 505 - Direct lease financing 871 982 145 1,042 94 Consumer - home equity 1,741 1,741 17 1,674 10 $ 6,786 $ 8,191 $ 3,039 $ 6,371 $ 174 |
Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category | March 31 December 31, 2019 2018 Non-accrual loans SBA non-real estate $ 3,233 $ 2,590 SBA commercial mortgage 458 458 SBA construction 710 - Consumer 1,462 1,468 Total non-accrual loans 5,863 4,516 Loans past due 90 days or more and still accruing 2,483 954 Total non-performing loans 8,346 5,470 Other real estate owned - - Total non-performing assets $ 8,346 $ 5,470 |
Loans Modified And Considered Troubled Debt Restructurings | March 31, 2019 December 31, 2018 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBA non-real estate 7 $ 1,819 $ 1,819 5 $ 1,564 $ 1,564 Direct lease financing 3 812 812 3 870 870 Consumer 2 507 507 2 513 513 Total 12 $ 3,138 $ 3,138 10 $ 2,947 $ 2,947 |
Loans Modified As Troubled Debt Restructurings | March 31, 2019 December 31, 2018 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBA non-real estate $ - $ 77 $ 1,742 $ - $ 85 $ 1,479 Direct lease financing - 398 414 - 434 436 Consumer - - 507 - - 513 Total $ - $ 475 $ 2,663 $ - $ 519 $ 2,428 |
Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted | Number Pre-modification recorded investment SBA non-real estate 1 $ 258 Total 1 $ 258 |
Changes In Allowance For Loan And Lease Losses By Loan Category | March 31, 2019 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs (322) - - (106) - - - - (428) Recoveries 17 - - 12 - - - - 29 Provision (credit) 846 538 (15) 362 3 22 (29) (27) 1,700 Ending balance $ 5,177 $ 1,479 $ 235 $ 2,293 $ 396 $ 82 $ 79 $ 213 $ 9,954 Ending balance: Individually evaluated for impairment $ 3,324 $ 71 $ - $ 151 $ - $ - $ 15 $ - $ 3,561 Ending balance: Collectively evaluated for impairment $ 1,853 $ 1,408 $ 235 $ 2,142 $ 396 $ 82 $ 64 $ 213 $ 6,393 Loans: Ending balance $ 76,112 $ 179,397 $ 23,979 $ 384,930 $ 791,986 $ 34,425 $ 9,301 $ 10,265 $ 1,510,395 Ending balance: Individually evaluated for impairment $ 4,614 $ 458 $ 711 $ 812 $ - $ - $ 1,732 $ - $ 8,327 Ending balance: Collectively evaluated for impairment $ 71,498 $ 178,939 $ 23,268 $ 384,118 $ 791,986 $ 34,425 $ 7,569 $ 10,265 $ 1,502,068 December 31, 2018 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 $ 7,096 Charge-offs (1,348) (157) - (637) - - (21) - (2,163) Recoveries 57 13 - 64 - - 1 - 135 Provision (credit) 2,782 (35) 114 1,103 28 3 (453) 43 3,585 Ending balance $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Ending balance: Individually evaluated for impairment $ 2,806 $ 71 $ - $ 145 $ - $ - $ 17 $ - $ 3,039 Ending balance: Collectively evaluated for impairment $ 1,830 $ 870 $ 250 $ 1,880 $ 393 $ 60 $ 91 $ 240 $ 5,614 Loans: Ending balance $ 76,340 $ 165,406 $ 21,636 $ 394,770 $ 785,303 $ 31,836 $ 16,302 $ 10,383 $ 1,501,976 Ending balance: Individually evaluated for impairment $ 3,716 $ 458 $ - $ 871 $ - $ - $ 1,741 $ - $ 6,786 Ending balance: Collectively evaluated for impairment $ 72,624 $ 164,948 $ 21,636 $ 393,899 $ 785,303 $ 31,836 $ 14,561 $ 10,383 $ 1,495,190 March 31, 2018 SBA non-real estate SBA commercial mortgage SBA construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning balance $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 7,096 Charge-offs (388) (157) - (56) - - (14) - (615) Recoveries 40 6 - 58 - - - - 104 Provision (credit) 391 130 97 (23) 15 92 15 (17) 700 Ending balance $ 3,188 $ 1,099 $ 233 $ 1,474 $ 380 $ 149 $ 582 $ 180 $ 7,285 Ending balance: Individually evaluated for impairment $ 1,464 $ 74 $ - $ - $ - $ 74 $ - $ - $ 1,612 Ending balance: Collectively evaluated for impairment $ 1,724 $ 1,025 $ 233 $ 1,474 $ 380 $ 75 $ 582 $ 180 $ 5,673 Loans: Ending balance $ 75,225 $ 149,227 $ 20,143 $ 385,467 $ 759,369 $ 45,729 $ 17,416 $ 10,488 $ 1,463,064 Ending balance: Individually evaluated for impairment $ 2,606 $ 458 $ - $ 1,532 $ - $ - $ 1,690 $ - $ 6,286 Ending balance: Collectively evaluated for impairment $ 72,619 $ 148,769 $ 20,143 $ 383,935 $ 759,369 $ 45,729 $ 15,726 $ 10,488 $ 1,456,778 |
Delinquent Loans By Loan Category | March 31, 2019 30-59 Days 60-89 Days 90 Days Total Total past due past due or greater Non-accrual past due Current loans SBA non-real estate $ 242 $ - $ - $ 3,233 $ 3,475 $ 72,637 $ 76,112 SBA commercial mortgage 4,653 - - 458 5,111 174,286 179,397 SBA construction - - - 710 710 23,269 23,979 Direct lease financing 2,084 656 2,483 - 5,223 379,707 384,930 SBLOC 1,521 - - - 1,521 790,465 791,986 Other specialty lending - - - - - 34,425 34,425 Consumer - other - - - - - 2,578 2,578 Consumer - home equity - - - 1,462 1,462 5,261 6,723 Unamortized loan fees and costs - - - - - 10,265 10,265 $ 8,500 $ 656 $ 2,483 $ 5,863 $ 17,502 $ 1,492,893 $ 1,510,395 December 31, 2018 30-59 Days 60-89 Days 90 Days Total Total past due past due or greater Non-accrual past due Current loans SBA non-real estate $ 346 $ 125 $ - $ 2,590 $ 3,061 $ 73,279 $ 76,340 SBA commercial mortgage - - - 458 458 164,948 165,406 SBA construction - 694 - - 694 20,942 21,636 Direct lease financing 2,594 1,572 954 - 5,120 389,650 394,770 SBLOC 487 - - - 487 784,816 785,303 Other specialty lending 108 - - - 108 31,728 31,836 Consumer - other - - - - - 9,147 9,147 Consumer - home equity - - - 1,468 1,468 5,687 7,155 Unamortized loan fees and costs - - - - - 10,383 10,383 $ 3,535 $ 2,391 $ 954 $ 4,516 $ 11,396 $ 1,490,580 $ 1,501,976 |
Loans By Categories | March 31, 2019 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBA non-real estate $ 68,088 $ 1,595 $ 5,010 $ - $ - $ - $ 1,419 $ 76,112 SBA commercial mortgage 173,162 271 5,111 - - 685 168 179,397 SBA construction 22,900 - 710 - - 369 - 23,979 Direct lease financing 371,706 - 5,673 - - 3,586 3,965 384,930 SBLOC 773,589 - - - - 12,600 5,797 791,986 Other specialty lending 34,425 - - - - - - 34,425 Consumer 5,676 - 1,462 - - - 2,163 9,301 Unamortized loan fees and costs - - - - - - 10,265 10,265 $ 1,449,546 $ 1,866 $ 17,966 $ - $ - $ 17,240 $ 23,777 $ 1,510,395 December 31, 2018 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBA non-real estate $ 67,809 $ 1,641 $ 4,517 $ - $ - $ 347 $ 2,026 $ 76,340 SBA commercial mortgage 158,667 273 458 - - 5,498 510 165,406 SBA construction 19,912 - 694 - - 843 187 21,636 Direct lease financing 382,860 2,157 1,456 - - 3,623 4,674 394,770 SBLOC 775,153 - - - - - 10,150 785,303 Other specialty lending 31,749 - - - - - 87 31,836 Consumer 5,849 - 1,742 - - - 8,711 16,302 Unamortized loan fees and costs - - - - - - 10,383 10,383 $ 1,441,999 $ 4,071 $ 8,867 $ - $ - $ 10,311 $ 36,728 $ 1,501,976 * For information on targeted loan review thresholds see “Allowance for Loan Losses ” in the 2018 Form 10-K Report in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Carrying Amount And Estimated Fair Value Of Assets And Liabilities | March 31, 2019 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,368,602 $ 1,368,602 $ - $ 1,344,757 $ 23,845 Investment securities, held-to-maturity 84,428 83,192 - 75,975 7,217 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,113 1,113 - - 1,113 Commercial loans held-for-sale 570,426 570,426 - - 570,426 Loans, net of deferred loan fees and costs 1,510,395 1,508,176 - - 1,508,176 Investment in unconsolidated entity 58,258 58,258 - - 58,258 Assets held-for-sale from discontinued operations 188,025 188,025 - - 188,025 Interest rate swaps, asset 917 917 - 917 - Demand and interest checking 3,993,828 3,993,828 3,993,828 - - Savings and money market 31,470 31,470 31,470 - - Subordinated debentures 13,401 9,788 - - 9,788 Securities sold under agreements to repurchase 93 93 93 - - December 31, 2018 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,236,324 $ 1,236,324 $ - $ 1,211,934 $ 24,390 Investment securities, held-to-maturity 84,432 83,391 - 76,113 7,278 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,113 1,113 - - 1,113 Commercial loans held-for-sale 688,471 688,471 - - 688,471 Loans, net of deferred loan fees and costs 1,501,976 1,503,780 - - 1,503,780 Investment in unconsolidated entity 59,273 59,273 - - 59,273 Assets held-for-sale from discontinued operations 197,831 197,831 - - 197,831 Interest rate swaps, asset 1,681 1,681 - 1,681 - Demand and interest checking 3,904,638 3,904,638 3,904,638 - - Savings and money market 31,076 31,076 31,076 - - Subordinated debentures 13,401 9,975 - - 9,975 Securities sold under agreements to repurchase 93 93 93 - - |
Company's Level 3 Assets | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans securities held-for-sale March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Beginning balance $ 24,390 $ 40,644 $ 688,471 $ 503,316 Transfers into level 3 - - - - Transfers out of level 3 - (74,355) - - Total gains or (losses) (realized/unrealized) Included in earnings - - 11,527 19,850 Included in other comprehensive loss 526 (688) - - Purchases, issuances, sales and settlements Purchases - 62,076 - - Issuances - - 403,241 866,303 Sales - - (532,813) (700,998) Settlements (1,071) (3,287) - - Ending balance $ 23,845 $ 24,390 $ 570,426 $ 688,471 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ - $ 376 $ (922) The Company’s Level 3 asset activity for the categories shows for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment in Assets held-for-sale unconsolidated entity from discontinued operations March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Beginning balance $ 59,273 $ 74,473 $ 197,831 $ 304,313 Transfers into level 3 - - - - Transfers out of level 3 - - - - Total gains or (losses) (realized/unrealized) Included in earnings - (3,689) - 352 Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 862 1,664 Sales - - (3,409) (35,000) Settlements (1,015) (11,511) (7,259) (62,754) Charge-offs - - - (10,744) Ending balance $ 58,258 $ 59,273 $ 188,025 $ 197,831 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ (3,689) $ - $ 352 |
Fair Value, Measurements, Recurring [Member] | |
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis | Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs March 31, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 57,750 $ - $ 57,750 $ - Asset-backed securities 255,755 - 255,755 - Obligations of states and political subdivisions 68,784 - 68,784 - Residential mortgage-backed securities 373,763 - 373,763 - Collateralized mortgage obligation securities 256,500 - 256,500 - Commercial mortgage-backed securities 356,050 - 332,205 23,845 Total investment securities available-for-sale 1,368,602 - 1,344,757 23,845 Commercial loans held-for-sale 570,426 - - 570,426 Investment in unconsolidated entity 58,258 - - 58,258 Assets held-for-sale from discontinued operations 188,025 - - 188,025 Interest rate swaps, asset 917 - 917 - $ 2,186,228 $ - $ 1,345,674 $ 840,554 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 53,362 $ - $ 53,362 $ - Asset-backed securities 188,602 - 188,602 - Obligations of states and political subdivisions 67,986 - 67,986 - Residential mortgage-backed securities 369,741 - 369,741 - Collateralized mortgage obligation securities 262,207 - 262,207 - Commercial mortgage-backed securities 294,426 - 270,036 24,390 Total investment securities available-for-sale 1,236,324 - 1,211,934 24,390 Commercial loans held-for-sale 688,471 - - 688,471 Investment in unconsolidated entity 59,273 - - 59,273 Assets held-for-sale from discontinued operations 197,831 - - 197,831 Interest rate swaps, asset 1,681 - 1,681 - $ 2,183,580 $ - $ 1,213,615 $ 969,965 |
Fair Value Inputs, Assets, Quantitative Information | Level 3 instruments only Fair value at Fair value at Range at Range at March 31, 2019 December 31, 2018 Valuation techniques Unobservable inputs March 31, 2019 December 31, 2018 Investment securities, available-for-sale $ 23,845 $ 24,390 Discounted cash flow Discount rate 4.26% 6.55% Investment securities, held-to-maturity 7,217 7,278 Discounted cash flow Discount rate 8.75% 8.80% Federal Home Loan Bank and Atlantic 1,113 1,113 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and 1,508,176 1,503,780 Discounted cash flow Discount rate 4.47% - 7.56% 4.22% - 6.93% costs Commercial - SBA 206,901 199,977 Traders' pricing Offered quotes $98.75 - $110 $99.125 - $110 Commercial - fixed 92,334 95,307 Discounted cash flow Discount rate 5.00% - 7.43% 5.23% - 6.92% Commercial - floating 271,191 393,187 Discounted cash flow Discount rate 5.75% - 6.45% 5.41% - 7.75% Commercial loans held-for-sale 570,426 688,471 Investment in unconsolidated entity 58,258 59,273 Discounted cash flow Discount rate 6.45% 6.30% Default rate 1.00% 1.00% Assets held-for-sale from discontinued 188,025 197,831 Discounted cash flow Discount rate, 3.86% - 8.36% 4.26% - 8.36% operations Credit analysis Subordinated debentures 9,788 9,975 Discounted cash flow Discount rate 8.75% 8.81% |
Fair Value, Measurements, Nonrecurring [Member] | |
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis | Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs Description March 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 4,767 $ - $ - $ 4,767 Intangible assets 3,463 - - 3,463 $ 8,230 $ - $ - $ 8,230 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 3,747 $ - $ - $ 3,747 Intangible assets 3,846 - - 3,846 $ 7,593 $ - $ - $ 7,593 (1) The method of valuation approach for the impaired loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10% for estimated selling costs. Intangible assets are valued based upon internal analyses. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivatives [Abstract] | |
Derivatives | March 31, 2019 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12% 2.74% 289 August 17, 2025 2,500 2.27% 2.68% 6 December 23, 2025 6,800 2.16% 2.60% 68 December 24, 2025 8,200 2.17% 2.60% 73 January 28, 2026 3,000 1.87% 2.76% 85 July 20, 2026 6,300 1.44% 2.76% 378 December 12, 2026 3,200 2.26% 2.60% 18 Total $ 40,300 $ 917 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Summary of Direct Lease Financing | Remaining 2019 $ 97,319 2020 96,571 2021 65,543 2022 33,014 2023 13,818 2024 and thereafter 2,668 Total undiscounted cash flows 308,933 Residual value * 115,217 Difference between undiscounted cash flows and discounted cash flows (39,220) Present value of lease payments recorded as lease receivables $ 384,930 |
Segment Financials (Tables)
Segment Financials (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Financials [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | For the three months ended March 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 30,473 $ - $ 13,105 $ - $ 43,578 Interest allocation - 13,105 (13,105) - - Interest expense 368 8,384 816 - 9,568 Net interest income (loss) 30,105 4,721 (816) - 34,010 Provision for loan and lease losses 1,700 - - - 1,700 Non-interest income 11,777 18,548 40 - 30,365 Non-interest expense 15,357 16,459 7,413 - 39,229 Income (loss) from continuing operations before taxes 24,825 6,810 (8,189) - 23,446 Income tax expense - - 6,035 - 6,035 Income (loss) from continuing operations 24,825 6,810 (14,224) - 17,411 Income from discontinued operations - - - 519 519 Net income (loss) $ 24,825 $ 6,810 $ (14,224) $ 519 $ 17,930 For the three months ended March 31, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 22,813 $ - $ 12,494 $ - $ 35,307 Interest allocation - 12,494 (12,494) - - Interest expense 928 3,902 403 - 5,233 Net interest income (loss) 21,885 8,592 (403) - 30,074 Provision for loan and lease losses 700 - - - 700 Non-interest income 12,710 16,354 31 - 29,095 Non-interest expense 15,140 16,194 7,715 - 39,049 Income (loss) from continuing operations before taxes 18,755 8,752 (8,087) - 19,420 Income tax expense - - 5,399 - 5,399 Income (loss) from continuing operations 18,755 8,752 (13,486) - 14,021 Income from discontinued operations - - - 119 119 Net income (loss) $ 18,755 $ 8,752 $ (13,486) $ 119 $ 14,140 March 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,084,895 $ 38,765 $ 2,315,291 $ 188,025 $ 4,626,976 Total liabilities $ 262,113 $ 3,659,509 $ 270,575 $ - $ 4,192,196 December 31, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,181,499 $ 43,737 $ 2,014,844 $ 197,831 $ 4,437,911 Total liabilities $ 281,326 $ 3,545,877 $ 203,932 $ - $ 4,031,135 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations [Abstract] | |
Financial Results Of The Commercial Lending Business Included In Net Income (Loss) From Discontinued Operations | For the three months ended March 31, 2019 2018 Interest income $ 2,025 $ 2,527 Interest expense - - Net interest income 2,025 2,527 Non interest income 14 364 Non interest expense 1,234 2,735 Income before taxes 805 156 Income tax expense 286 37 Net income $ 519 $ 119 March 31, December 31, 2019 2018 Loans, net $ 158,985 $ 170,662 Other real estate owned 29,040 27,169 Total assets $ 188,025 $ 197,831 |
Structure of Company (Details)
Structure of Company (Details) | 3 Months Ended |
Mar. 31, 2019item | |
Structure Of Company [Abstract] | |
Number of specialty lending lines | 4 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)$ / sharesitemshares | Mar. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation plans | item | 3 | |
Total intrinsic value of options exercised | $ | $ 1,000 | $ 4,600 |
Unrecognized compensation cost related to unvested awards under share-based plans | $ | $ 11,900 | |
Cost expected to be recognized over a weighted average period | 1 year 8 months 12 days | |
Related compensation expense | $ | $ 1,400 | 743 |
Fair value of restricted stock units vested | $ | $ 589 | $ 2,100 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 65,104 | 0 |
Vesting period | 4 years | |
Weighted average grant-date fair value | $ / shares | $ 3.84 | |
Stock option exercised (in shares) | 0 | 15,000 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 930,831 | 0 |
Granted (in dollars per share) | $ / shares | $ 8.57 | |
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Granted (in shares) | 863,331 | |
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Granted (in shares) | 67,500 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary Of Status Of Company's Equity Compensation Plans) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Aggregate intrinsic value [Abstract] | |||
Exercised | $ 1,000,000 | $ 4,600,000 | |
Stock Options [Member] | |||
Shares [Roll Forward] | |||
Granted (in shares) | 65,104 | 0 | |
Exercised (in shares) | 0 | (15,000) | |
Equity Compensations Plans [Member] | Stock Options [Member] | |||
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 1,276,500 | ||
Granted (in shares) | 65,104 | ||
Outstanding, end of period (in shares) | 1,341,604 | 1,276,500 | |
Exercisable, end of period (in shares) | 1,126,500 | ||
Weighted average exercise price [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 8.23 | ||
Granted (in dollars per share) | 8.57 | ||
Outstanding, end of period (in dollars per share) | 8.25 | $ 8.23 | |
Exercisable, end of period (in dollars per share) | $ 8.43 | ||
Weighted-average remaining contractual term (years) [Abstract] | |||
Granted | 3 years 10 months 17 days | ||
Outstanding, end of period | 3 years 9 months 29 days | 3 years 9 months 7 days | |
Exercisable, end of period | 3 years 15 days | ||
Aggregate intrinsic value [Abstract] | |||
Outstanding, beginning of period | $ 511,200 | ||
Granted | |||
Exercised | |||
Expired | |||
Forfeited | |||
Outstanding, end of period | 595,200 | $ 511,200 | |
Exercisable, end of period | $ 395,700 |
Stock-based Compensation (Sum_2
Stock-based Compensation (Summary Of Status Of Company’s Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 850,937 | ||
Granted (in shares) | 930,831 | 0 | |
Vested (in shares) | (121,916) | ||
Forfeited (in shares) | (17,296) | ||
Outstanding, end of period (in shares) | 1,642,556 | 850,937 | |
Weighted-average grant date fair value [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 8.84 | ||
Granted (in dollars per share) | 8.57 | ||
Vested (in dollars per share) | 4.83 | ||
Forfeited (in dollars per share) | 8.96 | ||
Outstanding, end of period (in dollars per share) | $ 8.99 | $ 8.84 | |
Average remaining contractual term (years) [Abstract] | |||
Outstanding | 2 years 1 month 6 days | 1 year 5 months 9 days | |
Granted | 2 years 8 months 19 days |
Stock-based Compensation (Fair
Stock-based Compensation (Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (in hundredths) | 2.63% |
Expected volatility (in hundredths) | 41.83% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected lives (years) | 6 years 3 months 18 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected lives (years) | 1 year |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Minimum exercisable prices (in dollars per share) | $ 6.75 | |
Maximum exercisable prices (in dollars per share) | $ 10.45 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities included in computation of earnings per share | 919,000 | 1,437,625 |
Antidilutive securities excluded from computation of earnings per share | 422,604 | |
Minimum exercisable prices (in dollars per share) | $ 6.75 | |
Maximum exercisable prices (in dollars per share) | $ 8.57 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income (numerator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders | $ 17,930 | $ 14,140 |
Diluted earnings per share, Net earnings available to common shareholders | $ 17,930 | $ 14,140 |
Shares (denominator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,522,015 | 56,141,830 |
Effect of dilutive securities, Common stock options and restricted units (in shares) | 354,647 | 881,291 |
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 56,876,662 | 57,023,121 |
Per share amount [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.32 | $ 0.25 |
Net income per share - diluted | $ 0.32 | $ 0.25 |
Continuing Operations [Member] | ||
Income (numerator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders | $ 17,411 | $ 14,021 |
Diluted earnings per share, Net earnings available to common shareholders | $ 17,411 | $ 14,021 |
Shares (denominator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,522,015 | 56,141,830 |
Effect of dilutive securities, Common stock options and restricted units (in shares) | 354,647 | 881,291 |
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 56,876,662 | 57,023,121 |
Per share amount [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.31 | $ 0.25 |
Net income per share - diluted | $ 0.31 | $ 0.25 |
Discontinued Operations [Member] | ||
Income (numerator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders | $ 519 | $ 119 |
Diluted earnings per share, Net earnings available to common shareholders | $ 519 | $ 119 |
Shares (denominator) [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,522,015 | 56,141,830 |
Effect of dilutive securities, Common stock options and restricted units (in shares) | 354,647 | 881,291 |
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 56,876,662 | 57,023,121 |
Per share amount [Abstract] | ||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.01 | |
Net income per share - diluted | $ 0.01 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Investment in Federal Home Loan and Atlantic Central Bankers Bank stock recorded at cost | $ 1,100 | $ 1,100 |
Amortized cost of securities | 84,428 | 84,432 |
Book value | 84,428 | 84,432 |
Fair value | $ 83,192 | 83,391 |
Number of securities with impairment that is other-than-temporary | security | 0 | |
Federal Home Loan Bank Advances [Member] | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Investment securities pledged to secure a line of credit with the FHLB and a letter of credit with that institution, fair value | $ 112,100 | 116,000 |
Federal Reserve Bank Advances [Member] | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Investment securities pledged to secure a line of credit with the FHLB and a letter of credit with that institution, fair value | $ 164,500 | 169,500 |
Single Issuers [Member] | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Number of single issuer trust preferred securities | security | 1 | |
Amortized cost of securities | $ 9,181 | 9,168 |
Book value | 9,200 | |
Fair value | 7,218 | 7,278 |
Pooled [Member] | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Amortized cost of securities | 75,247 | 75,264 |
Fair value | $ 75,974 | $ 76,113 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale [Abstract] | ||
Amortized cost | $ 1,375,342 | $ 1,254,899 |
Gross unrealized gains | 3,490 | 2,228 |
Gross unrealized losses | (10,230) | (20,803) |
Fair value | 1,368,602 | 1,236,324 |
Held-to-maturity [Abstract] | ||
Amortized cost | 84,428 | 84,432 |
Gross unrealized gains | 727 | 849 |
Gross unrealized losses | (1,963) | (1,890) |
Fair value | 83,192 | 83,391 |
U.S. Government Agency Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 57,968 | 54,095 |
Gross unrealized gains | 299 | 146 |
Gross unrealized losses | (517) | (879) |
Fair value | 57,750 | 53,362 |
Asset-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 256,384 | 189,850 |
Gross unrealized gains | 148 | 104 |
Gross unrealized losses | (777) | (1,352) |
Fair value | 255,755 | 188,602 |
Federally insured student loan securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 51,101 | 59,705 |
Gross unrealized gains | 135 | 87 |
Gross unrealized losses | (277) | (283) |
Fair value | 50,959 | 59,509 |
Collateralized Loan Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 200,936 | 125,045 |
Gross unrealized gains | 3 | |
Gross unrealized losses | (500) | (1,069) |
Fair value | 200,439 | 123,976 |
Asset Backed Securities Other [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 4,347 | 5,100 |
Gross unrealized gains | 10 | 17 |
Fair value | 4,357 | 5,117 |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 7,547 | 7,546 |
Gross unrealized gains | 83 | 50 |
Gross unrealized losses | (3) | (45) |
Fair value | 7,627 | 7,551 |
Taxable obligations of states and political subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 60,119 | 60,152 |
Gross unrealized gains | 1,097 | 803 |
Gross unrealized losses | (59) | (520) |
Fair value | 61,157 | 60,435 |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 377,584 | 377,199 |
Gross unrealized gains | 719 | 648 |
Gross unrealized losses | (4,540) | (8,106) |
Fair value | 373,763 | 369,741 |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 257,959 | 265,914 |
Gross unrealized gains | 613 | 287 |
Gross unrealized losses | (2,072) | (3,994) |
Fair value | 256,500 | 262,207 |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 357,781 | 300,143 |
Gross unrealized gains | 531 | 190 |
Gross unrealized losses | (2,262) | (5,907) |
Fair value | 356,050 | 294,426 |
Single Issuers [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 9,181 | 9,168 |
Gross unrealized losses | (1,963) | (1,890) |
Fair value | 7,218 | 7,278 |
Pooled [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 75,247 | 75,264 |
Gross unrealized gains | 727 | 849 |
Fair value | $ 75,974 | $ 76,113 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized cost [Abstract] | ||
Due before one year | $ 1,375 | |
Due after one year through five years | 52,306 | |
Due after five years through ten years | 263,121 | |
Due after ten years | 1,058,540 | |
Amortized cost | 1,375,342 | |
Available-for-sale, Fair value [Abstract] | ||
Due before one year | 1,375 | |
Due after one year through five years | 52,485 | |
Due after five years through ten years | 262,405 | |
Due after ten years | 1,052,337 | |
Fair value | 1,368,602 | $ 1,236,324 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due after ten years | 84,428 | |
Amortized cost | 84,428 | 84,432 |
Held-to-maturity, Fair value [Abstract] | ||
Due after ten years | 83,192 | |
Fair value | $ 83,192 | $ 83,391 |
Investment Securities (Availabl
Investment Securities (Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 224 | 249 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 319,915 | $ 294,474 |
12 months or longer, Fair Value | 660,749 | 739,664 |
Total, Fair Value | 980,664 | 1,034,138 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,065) | (3,323) |
12 months or longer, Unrealized losses | (9,165) | (17,480) |
Total, Unrealized losses | $ (10,230) | $ (20,803) |
Held-to-maturity, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | 1 |
Held-to-maturity, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 7,217 | $ 7,278 |
Total, Fair Value | 7,217 | 7,278 |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (1,963) | (1,890) |
Total, Unrealized losses | $ (1,963) | $ (1,890) |
U.S. Government Agency Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 10 | 10 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 679 | |
12 months or longer, Fair Value | $ 40,716 | 41,719 |
Total, Fair Value | 40,716 | 42,398 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (2) | |
12 months or longer, Unrealized losses | (517) | (877) |
Total, Unrealized losses | $ (517) | $ (879) |
Asset-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 27 | 26 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 172,285 | $ 148,753 |
12 months or longer, Fair Value | 11,042 | 11,506 |
Total, Fair Value | 183,327 | 160,259 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (651) | (1,230) |
12 months or longer, Unrealized losses | (126) | (122) |
Total, Unrealized losses | $ (777) | $ (1,352) |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | 3 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 1,132 | $ 3,625 |
Total, Fair Value | 1,132 | 3,625 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (3) | (45) |
Total, Unrealized losses | $ (3) | $ (45) |
Taxable obligations of states and political subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 8 | 22 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 1,277 | $ 4,492 |
12 months or longer, Fair Value | 10,295 | 35,599 |
Total, Fair Value | 11,572 | 40,091 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (2) | (19) |
12 months or longer, Unrealized losses | (57) | (501) |
Total, Unrealized losses | $ (59) | $ (520) |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 116 | 118 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 18,640 | $ 17,168 |
12 months or longer, Fair Value | 282,268 | 302,407 |
Total, Fair Value | 300,908 | 319,575 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (49) | (49) |
12 months or longer, Unrealized losses | (4,491) | (8,057) |
Total, Unrealized losses | $ (4,540) | $ (8,106) |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 39 | 44 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 27,500 | $ 1,522 |
12 months or longer, Fair Value | 167,534 | 193,355 |
Total, Fair Value | 195,034 | 194,877 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (49) | (3) |
12 months or longer, Unrealized losses | (2,023) | (3,991) |
Total, Unrealized losses | $ (2,072) | $ (3,994) |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 23 | 26 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 100,213 | $ 121,860 |
12 months or longer, Fair Value | 147,762 | 151,453 |
Total, Fair Value | 247,975 | 273,313 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (314) | (2,020) |
12 months or longer, Unrealized losses | (1,948) | (3,887) |
Total, Unrealized losses | $ (2,262) | $ (5,907) |
Single Issuers [Member] | ||
Held-to-maturity, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | 1 |
Held-to-maturity, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 7,217 | $ 7,278 |
Total, Fair Value | 7,217 | 7,278 |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (1,963) | (1,890) |
Total, Unrealized losses | $ (1,963) | $ (1,890) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Prepayments percentage, loans | 15.00% | ||
Loans held for sale | $ 570,426,000 | $ 688,471,000 | |
Loans available for sale, unpaid principal amount | 566,800,000 | ||
Gains recognized from changes in fair value | 329,000 | $ 1,500,000 | |
Gain (Loss) on Securitization of Financial Assets | 10,800,000 | 11,700,000 | |
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | $ 41,600,000 | $ 28,400,000 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate | 4.75% | 5.79% | |
Demand deposit overdrafts reclassified as loan balances | $ 674,000 | 7,200,000 | |
Non-accrual leases | 0 | $ 0 | |
Interest which would have been earned on loans classified as non accrual | 127,000 | $ 55,000 | |
Commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings | $ 0 | ||
Number of troubled debt restructured loans | loan | 12 | 10 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 3,138,000 | $ 2,947,000 | |
Financing Receivable Troubled Debt Restructured Loans Reserves | 1,600,000 | ||
Loans acquired with deteriorated credit quality | 0 | $ 0 | |
Commercial Mortgage [Member] | |||
Financing Receivable, Gross | 518,300,000 | $ 304,300,000 | |
SBA Loan [Member] | |||
Financing Receivable Troubled Debt Restructured Loans Reserves | $ 1,500,000 |
Loans (Major Classifications Of
Loans (Major Classifications Of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Major classifications of loans [Abstract] | |||
Total loans, gross | $ 1,500,130 | $ 1,491,593 | |
Unamortized loan fees and costs | 10,265 | 10,383 | |
Total loans, net of deferred loan fees and costs | 1,510,395 | 1,501,976 | $ 1,463,064 |
SBA Non-Real Estate [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 76,112 | 76,340 | |
Total loans, net of deferred loan fees and costs | 76,112 | 76,340 | 75,225 |
SBA Commercial Mortgage [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 179,397 | 165,406 | |
Total loans, net of deferred loan fees and costs | 179,397 | 165,406 | 149,227 |
SBA Construction [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 23,979 | 21,636 | |
Total loans, net of deferred loan fees and costs | 23,979 | 21,636 | 20,143 |
SBA Loans [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 279,488 | 263,382 | |
Direct Lease Financing [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 384,930 | 394,770 | |
Total loans, net of deferred loan fees and costs | 384,930 | 394,770 | 385,467 |
SBLOC [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 791,986 | 785,303 | |
Total loans, net of deferred loan fees and costs | 791,986 | 785,303 | 759,369 |
Other Specialty Lending [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 34,425 | 31,836 | |
Total loans, net of deferred loan fees and costs | 34,425 | 31,836 | $ 45,729 |
Consumer - other [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 9,301 | 16,302 | |
Total loans, net of deferred loan fees and costs | $ 2,578 | $ 9,147 |
Loans (Schedule Of Small Busine
Loans (Schedule Of Small Business Administation Loans and Held For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans [Abstract] | ||
SBA loans, including deferred fees and costs of $7,326 and $7,478 for March 31, 2019 and December 31, 2018, respectively | $ 286,814 | $ 270,860 |
SBA loans included in held for sale | 206,901 | 199,977 |
Total SBA loans | 493,715 | 470,837 |
SBA deferred fees and costs | $ 7,326 | $ 7,478 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
With an allowance recorded [Abstract] | ||
Related allowance | $ 3,500 | |
Total allowance recorded [Abstract] | ||
Recorded investment | 8,326 | $ 6,786 |
Unpaid principal balance | 9,975 | 8,191 |
Related allowance | 3,561 | 3,039 |
Average recorded investment | 7,557 | 6,371 |
Interest income recognized | 36 | 174 |
SBA Non-Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 273 | 175 |
Unpaid principal balance | 1,810 | 1,469 |
Average recorded investment | 224 | 334 |
Interest income recognized | 1 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 4,341 | 3,541 |
Unpaid principal balance | 4,341 | 3,541 |
Related allowance | 3,324 | 2,806 |
Average recorded investment | 3,941 | 2,816 |
Interest income recognized | 20 | 70 |
Total allowance recorded [Abstract] | ||
Recorded investment | 4,614 | 3,716 |
Unpaid principal balance | 6,151 | 5,010 |
Related allowance | 3,324 | 2,806 |
Average recorded investment | 4,165 | 3,150 |
Interest income recognized | 21 | 70 |
SBA Commercial Mortgage [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded investment | 458 | 458 |
Unpaid principal balance | 458 | 458 |
Related allowance | 71 | 71 |
Average recorded investment | 458 | 505 |
Total allowance recorded [Abstract] | ||
Recorded investment | 458 | 458 |
Unpaid principal balance | 458 | 458 |
Related allowance | 71 | 71 |
Average recorded investment | 458 | 505 |
SBA Construction [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 710 | |
Unpaid principal balance | 710 | |
Average recorded investment | 355 | |
Direct Lease Financing [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 414 | 437 |
Unpaid principal balance | 526 | 548 |
Average recorded investment | 426 | 425 |
Interest income recognized | 5 | 28 |
With an allowance recorded [Abstract] | ||
Recorded investment | 398 | 434 |
Unpaid principal balance | 398 | 434 |
Related allowance | 151 | 145 |
Average recorded investment | 416 | 617 |
Interest income recognized | 8 | 66 |
Total allowance recorded [Abstract] | ||
Recorded investment | 812 | 871 |
Unpaid principal balance | 924 | 982 |
Related allowance | 151 | 145 |
Average recorded investment | 842 | 1,042 |
Interest income recognized | 13 | 94 |
Consumer - Home Equity [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 1,606 | 1,612 |
Unpaid principal balance | 1,606 | 1,612 |
Average recorded investment | 1,609 | 1,648 |
Interest income recognized | 2 | 10 |
With an allowance recorded [Abstract] | ||
Recorded investment | 126 | 129 |
Unpaid principal balance | 126 | 129 |
Related allowance | 15 | 17 |
Average recorded investment | 128 | 26 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,732 | 1,741 |
Unpaid principal balance | 1,732 | 1,741 |
Related allowance | 15 | 17 |
Average recorded investment | 1,737 | 1,674 |
Interest income recognized | $ 2 | $ 10 |
Loans (Non-accrual Loans, Loans
Loans (Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 5,863 | $ 4,516 |
Loans past due 90 days or more and still accruing | 2,483 | 954 |
Total non-performing loans | 1,500,130 | 1,491,593 |
Total non-performing assets | 8,346 | 5,470 |
Nonperforming Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-performing loans | 8,346 | 5,470 |
Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 5,863 | 4,516 |
SBA Non-Real Estate [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 3,233 | 2,590 |
Total non-performing loans | 76,112 | 76,340 |
SBA Non-Real Estate [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 3,233 | 2,590 |
SBA Commercial Mortgage [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 458 | 458 |
Total non-performing loans | 179,397 | 165,406 |
SBA Commercial Mortgage [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 458 | 458 |
SBA Construction [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 710 | |
Total non-performing loans | 23,979 | 21,636 |
SBA Construction [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 710 | |
Consumer [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 1,462 | $ 1,468 |
Loans (Loans Modified And Consi
Loans (Loans Modified And Considered Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 12 | 10 |
Pre-modification recorded investment | $ 3,138 | $ 2,947 |
Post-modification recorded investment | $ 3,138 | $ 2,947 |
SBA Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 7 | 5 |
Pre-modification recorded investment | $ 1,819 | $ 1,564 |
Post-modification recorded investment | $ 1,819 | $ 1,564 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 3 | 3 |
Pre-modification recorded investment | $ 812 | $ 870 |
Post-modification recorded investment | $ 812 | $ 870 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 2 | 2 |
Pre-modification recorded investment | $ 507 | $ 513 |
Post-modification recorded investment | $ 507 | $ 513 |
Loans (Loans Modified As Troubl
Loans (Loans Modified As Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | $ 475 | $ 519 |
Combined rate and maturity | 2,663 | 2,428 |
SBA Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 77 | 85 |
Combined rate and maturity | 1,742 | 1,479 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 398 | 434 |
Combined rate and maturity | 414 | 436 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | $ 507 | $ 513 |
Loans (Summary Of Restructured
Loans (Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |
Number | loan | 1 |
Pre-modification recorded investment | $ | $ 258 |
SBA Non-Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number | loan | 1 |
Pre-modification recorded investment | $ | $ 258 |
Loans (Changes In Allowance For
Loans (Changes In Allowance For Loan And Lease Losses By Loan Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | $ 8,653 | $ 7,096 | $ 7,096 |
Charge-offs | (428) | (615) | (2,163) |
Recoveries | 29 | 104 | 135 |
Provision (credit) | 1,700 | 700 | 3,585 |
Ending balance | 9,954 | 7,285 | 8,653 |
Ending balance: Individually evaluated for impairment | 3,561 | 1,612 | 3,039 |
Ending balance: Collectively evaluated for impairment | 6,393 | 5,673 | 5,614 |
Loans [Abstract] | |||
Ending balance | 1,510,395 | 1,463,064 | 1,501,976 |
Ending balance: Individually evaluated for impairment | 8,327 | 6,286 | 6,786 |
Ending balance: Collectively evaluated for impairment | 1,502,068 | 1,456,778 | 1,495,190 |
SBA Non-Real Estate [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 4,636 | 3,145 | 3,145 |
Charge-offs | (322) | (388) | (1,348) |
Recoveries | 17 | 40 | 57 |
Provision (credit) | 846 | 391 | 2,782 |
Ending balance | 5,177 | 3,188 | 4,636 |
Ending balance: Individually evaluated for impairment | 3,324 | 1,464 | 2,806 |
Ending balance: Collectively evaluated for impairment | 1,853 | 1,724 | 1,830 |
Loans [Abstract] | |||
Ending balance | 76,112 | 75,225 | 76,340 |
Ending balance: Individually evaluated for impairment | 4,614 | 2,606 | 3,716 |
Ending balance: Collectively evaluated for impairment | 71,498 | 72,619 | 72,624 |
SBA Commercial Mortgage [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 941 | 1,120 | 1,120 |
Charge-offs | (157) | (157) | |
Recoveries | 6 | 13 | |
Provision (credit) | 538 | 130 | (35) |
Ending balance | 1,479 | 1,099 | 941 |
Ending balance: Individually evaluated for impairment | 71 | 74 | 71 |
Ending balance: Collectively evaluated for impairment | 1,408 | 1,025 | 870 |
Loans [Abstract] | |||
Ending balance | 179,397 | 149,227 | 165,406 |
Ending balance: Individually evaluated for impairment | 458 | 458 | 458 |
Ending balance: Collectively evaluated for impairment | 178,939 | 148,769 | 164,948 |
SBA Construction [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 250 | 136 | 136 |
Provision (credit) | (15) | 97 | 114 |
Ending balance | 235 | 233 | 250 |
Ending balance: Collectively evaluated for impairment | 235 | 233 | 250 |
Loans [Abstract] | |||
Ending balance | 23,979 | 20,143 | 21,636 |
Ending balance: Individually evaluated for impairment | 711 | ||
Ending balance: Collectively evaluated for impairment | 23,268 | 20,143 | 21,636 |
Direct Lease Financing [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 2,025 | 1,495 | 1,495 |
Charge-offs | (106) | (56) | (637) |
Recoveries | 12 | 58 | 64 |
Provision (credit) | 362 | (23) | 1,103 |
Ending balance | 2,293 | 1,474 | 2,025 |
Ending balance: Individually evaluated for impairment | 151 | 145 | |
Ending balance: Collectively evaluated for impairment | 2,142 | 1,474 | 1,880 |
Loans [Abstract] | |||
Ending balance | 384,930 | 385,467 | 394,770 |
Ending balance: Individually evaluated for impairment | 812 | 1,532 | 871 |
Ending balance: Collectively evaluated for impairment | 384,118 | 383,935 | 393,899 |
SBLOC [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 393 | 365 | 365 |
Provision (credit) | 3 | 15 | 28 |
Ending balance | 396 | 380 | 393 |
Ending balance: Collectively evaluated for impairment | 396 | 380 | 393 |
Loans [Abstract] | |||
Ending balance | 791,986 | 759,369 | 785,303 |
Ending balance: Collectively evaluated for impairment | 791,986 | 759,369 | 785,303 |
Other Specialty Lending [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 60 | 57 | 57 |
Provision (credit) | 22 | 92 | 3 |
Ending balance | 82 | 149 | 60 |
Ending balance: Individually evaluated for impairment | 74 | ||
Ending balance: Collectively evaluated for impairment | 82 | 75 | 60 |
Loans [Abstract] | |||
Ending balance | 34,425 | 45,729 | 31,836 |
Ending balance: Collectively evaluated for impairment | 34,425 | 45,729 | 31,836 |
Other Consumer Loans [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 108 | 581 | 581 |
Charge-offs | (14) | (21) | |
Recoveries | 1 | ||
Provision (credit) | (29) | 15 | (453) |
Ending balance | 79 | 582 | 108 |
Ending balance: Individually evaluated for impairment | 15 | 17 | |
Ending balance: Collectively evaluated for impairment | 64 | 582 | 91 |
Loans [Abstract] | |||
Ending balance | 9,301 | 17,416 | 16,302 |
Ending balance: Individually evaluated for impairment | 1,732 | 1,690 | 1,741 |
Ending balance: Collectively evaluated for impairment | 7,569 | 15,726 | 14,561 |
Unallocated [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 240 | 197 | 197 |
Provision (credit) | (27) | (17) | 43 |
Ending balance | 213 | 180 | 240 |
Ending balance: Collectively evaluated for impairment | 213 | 180 | 240 |
Loans [Abstract] | |||
Ending balance | 10,265 | 10,488 | 10,383 |
Ending balance: Collectively evaluated for impairment | $ 10,265 | $ 10,488 | $ 10,383 |
Loans (Delinquent Loans By Loan
Loans (Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | $ 5,863 | $ 4,516 | |
Total past due | 17,502 | 11,396 | |
Current | 1,492,893 | 1,490,580 | |
Total loans, net of deferred loan fees and costs | 1,510,395 | 1,501,976 | $ 1,463,064 |
30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 8,500 | 3,535 | |
60 - 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 656 | 2,391 | |
90 Days Or Greater [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,483 | 954 | |
SBA Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 3,233 | 2,590 | |
Total past due | 3,475 | 3,061 | |
Current | 72,637 | 73,279 | |
Total loans, net of deferred loan fees and costs | 76,112 | 76,340 | 75,225 |
SBA Non-Real Estate [Member] | 30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 242 | 346 | |
SBA Non-Real Estate [Member] | 60 - 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 125 | ||
SBA Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 458 | 458 | |
Total past due | 5,111 | 458 | |
Current | 174,286 | 164,948 | |
Total loans, net of deferred loan fees and costs | 179,397 | 165,406 | 149,227 |
SBA Commercial Mortgage [Member] | 30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 4,653 | ||
SBA Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 710 | ||
Total past due | 710 | 694 | |
Current | 23,269 | 20,942 | |
Total loans, net of deferred loan fees and costs | 23,979 | 21,636 | 20,143 |
SBA Construction [Member] | 60 - 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 694 | ||
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 5,223 | 5,120 | |
Current | 379,707 | 389,650 | |
Total loans, net of deferred loan fees and costs | 384,930 | 394,770 | 385,467 |
Direct Lease Financing [Member] | 30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,084 | 2,594 | |
Direct Lease Financing [Member] | 60 - 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 656 | 1,572 | |
Direct Lease Financing [Member] | 90 Days Or Greater [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,483 | 954 | |
SBLOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,521 | 487 | |
Current | 790,465 | 784,816 | |
Total loans, net of deferred loan fees and costs | 791,986 | 785,303 | 759,369 |
SBLOC [Member] | 30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,521 | 487 | |
Other Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 108 | ||
Current | 34,425 | 31,728 | |
Total loans, net of deferred loan fees and costs | 34,425 | 31,836 | $ 45,729 |
Other Specialty Lending [Member] | 30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 108 | ||
Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,578 | 9,147 | |
Total loans, net of deferred loan fees and costs | 2,578 | 9,147 | |
Consumer - Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 1,462 | 1,468 | |
Total past due | 1,462 | 1,468 | |
Current | 5,261 | 5,687 | |
Total loans, net of deferred loan fees and costs | 6,723 | 7,155 | |
Unamortized Loan Fees And Costs [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 10,265 | 10,383 | |
Total loans, net of deferred loan fees and costs | $ 10,265 | $ 10,383 |
Loans (Loans By Categories) (De
Loans (Loans By Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Loans by categories [Abstract] | |||
Total loans | $ 1,510,395 | $ 1,501,976 | $ 1,463,064 |
SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 76,112 | 76,340 | 75,225 |
SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 179,397 | 165,406 | 149,227 |
SBA Construction [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 23,979 | 21,636 | 20,143 |
Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 384,930 | 394,770 | 385,467 |
SBLOC [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 791,986 | 785,303 | 759,369 |
Other Specialty Lending [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 34,425 | 31,836 | $ 45,729 |
Consumer [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 9,301 | 16,302 | |
Unamortized Loan Fees And Costs [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 10,265 | 10,383 | |
Pass [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 1,449,546 | 1,441,999 | |
Pass [Member] | SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 68,088 | 67,809 | |
Pass [Member] | SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 173,162 | 158,667 | |
Pass [Member] | SBA Construction [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 22,900 | 19,912 | |
Pass [Member] | Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 371,706 | 382,860 | |
Pass [Member] | SBLOC [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 773,589 | 775,153 | |
Pass [Member] | Other Specialty Lending [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 34,425 | 31,749 | |
Pass [Member] | Consumer [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 5,676 | 5,849 | |
Special Mention [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 1,866 | 4,071 | |
Special Mention [Member] | SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 1,595 | 1,641 | |
Special Mention [Member] | SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 271 | 273 | |
Special Mention [Member] | Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 2,157 | ||
Substandard [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 17,966 | 8,867 | |
Substandard [Member] | SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 5,010 | 4,517 | |
Substandard [Member] | SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 5,111 | 458 | |
Substandard [Member] | SBA Construction [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 710 | 694 | |
Substandard [Member] | Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 5,673 | 1,456 | |
Substandard [Member] | Consumer [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 1,462 | 1,742 | |
Unrated subject to review [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 17,240 | 10,311 | |
Unrated subject to review [Member] | SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 347 | ||
Unrated subject to review [Member] | SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 685 | 5,498 | |
Unrated subject to review [Member] | SBA Construction [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 369 | 843 | |
Unrated subject to review [Member] | Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 3,586 | 3,623 | |
Unrated subject to review [Member] | SBLOC [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 12,600 | ||
Unrated Not Subject To Review [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 23,777 | 36,728 | |
Unrated Not Subject To Review [Member] | SBA Non-Real Estate [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 1,419 | 2,026 | |
Unrated Not Subject To Review [Member] | SBA Commercial Mortgage [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 168 | 510 | |
Unrated Not Subject To Review [Member] | SBA Construction [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 187 | ||
Unrated Not Subject To Review [Member] | Direct Lease Financing [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 3,965 | 4,674 | |
Unrated Not Subject To Review [Member] | SBLOC [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 5,797 | 10,150 | |
Unrated Not Subject To Review [Member] | Other Specialty Lending [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 87 | ||
Unrated Not Subject To Review [Member] | Consumer [Member] | |||
Loans by categories [Abstract] | |||
Total loans | 2,163 | 8,711 | |
Unrated Not Subject To Review [Member] | Unamortized Loan Fees And Costs [Member] | |||
Loans by categories [Abstract] | |||
Total loans | $ 10,265 | $ 10,383 |
Transactions With Affiliates (D
Transactions With Affiliates (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Deposits | $ 4,025,298,000 | $ 3,935,714,000 | |
Legal expense | 1,324,000 | $ 2,431,000 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Deposits | 1,200,000 | 2,600,000 | |
Directors, Executive Officers, Principal Stockholders and Affiliates [Member] | Loans, Net Of Deferred Loan Fees And Costs [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1,900,000 | 2,000,000 | |
J.V.B. Financial Group, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Securities purchased under agreements to resell | 0 | $ 0 | |
J.V.B. Financial Group, LLC [Member] | SBA Loan [Member] | |||
Related Party Transaction [Line Items] | |||
Payments to acquire available-for-sale securities, debt | 480,000 | ||
Duane Morris LLP [Member] | |||
Related Party Transaction [Line Items] | |||
Legal expense | $ 48,000 | $ 812,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2014USD ($)loan | |
Transfers between the three levels, assets and liabilities | $ 0 | ||
Cash and cash equivalents | 726,200,000 | $ 554,300,000 | |
Impaired loans | 8,300,000 | ||
Specific reserves and other write downs on impaired loans | 3,500,000 | ||
Troubled debt restructured loans balance | 3,138,000 | $ 2,947,000 | |
Troubled debt restructured loans, specific reserve | $ 1,600,000 | ||
Number of troubled debt restructured loans | loan | 12 | 10 | |
Minimum [Member] | |||
Estimated selling costs | 7.00% | ||
Maximum [Member] | |||
Estimated selling costs | 10.00% | ||
Walnut Street [Member] | |||
Loans, face value | $ 267,600,000 | ||
Price paid for a portion of the commercial loan portfolio | 209,600,000 | ||
Notes payable | $ 193,600,000 | ||
Number of notes | loan | 2 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Impaired loans | $ 4,767,000 | $ 3,747,000 | |
Senior Notes [Member] | Walnut Street [Member] | |||
Senior notes | $ 178,200,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||
Junior Subordinated Debt [Member] | Walnut Street [Member] | |||
Junior Subordinated Notes | $ 15,400,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Value Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | $ 1,368,602 | $ 1,236,324 |
Investment securities, held-to-maturity | 84,428 | 84,432 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Demand and interest checking | 3,993,828 | 3,904,638 |
Savings and money market | 31,470 | 31,076 |
Securities sold under agreements to repurchase | 93 | 93 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 1,344,757 | 1,211,934 |
Investment securities, held-to-maturity | 75,975 | 76,113 |
Interest rate swaps, asset | 917 | 1,681 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 23,845 | 24,390 |
Investment securities, held-to-maturity | 7,217 | 7,278 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,113 | 1,113 |
Commercial loans held for sale | 570,426 | 688,471 |
Loans, net of deferred loan fees and costs | 1,508,176 | 1,503,780 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Subordinated debentures | 9,788 | 9,975 |
Carrying Amount [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 1,368,602 | 1,236,324 |
Investment securities, held-to-maturity | 84,428 | 84,432 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,113 | 1,113 |
Commercial loans held for sale | 570,426 | 688,471 |
Loans, net of deferred loan fees and costs | 1,510,395 | 1,501,976 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Interest rate swaps, asset | 917 | 1,681 |
Demand and interest checking | 3,993,828 | 3,904,638 |
Savings and money market | 31,470 | 31,076 |
Subordinated debentures | 13,401 | 13,401 |
Securities sold under agreements to repurchase | 93 | 93 |
Estimated Fair Value [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 1,368,602 | 1,236,324 |
Investment securities, held-to-maturity | 83,192 | 83,391 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,113 | 1,113 |
Commercial loans held for sale | 570,426 | 688,471 |
Loans, net of deferred loan fees and costs | 1,508,176 | 1,503,780 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Interest rate swaps, asset | 917 | 1,681 |
Demand and interest checking | 3,993,828 | 3,904,638 |
Savings and money market | 31,470 | 31,076 |
Subordinated debentures | 9,788 | 9,975 |
Securities sold under agreements to repurchase | $ 93 | $ 93 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on a recurring basis [Abstract] | ||
Fair value | $ 1,368,602 | $ 1,236,324 |
Assets measured on a nonrecurring basis [Abstract] | ||
Impaired loans - collateral dependent | 8,300 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
U.S. Government agency securities | 57,750 | 53,362 |
Asset-backed securities | 255,755 | 188,602 |
Obligations of states and political subdivisions | 68,784 | 67,986 |
Residential mortgage-backed securities | 373,763 | 369,741 |
Collaterized mortgage obligation securities | 256,500 | 262,207 |
Commercial mortgage-backed securities | 356,050 | 294,426 |
Fair value | 1,368,602 | 1,236,324 |
Commercial loans held for sale | 570,426 | 688,471 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Interest rate swaps, asset | 917 | 1,681 |
Total assets | 2,186,228 | 2,183,580 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets measured on a nonrecurring basis [Abstract] | ||
Impaired loans - collateral dependent | 4,767 | 3,747 |
Intangible assets | 3,463 | 3,846 |
Assets nonrecurring | 8,230 | 7,593 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
Fair value | 1,344,757 | 1,211,934 |
Interest rate swaps, asset | 917 | 1,681 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
U.S. Government agency securities | 57,750 | 53,362 |
Asset-backed securities | 255,755 | 188,602 |
Obligations of states and political subdivisions | 68,784 | 67,986 |
Residential mortgage-backed securities | 373,763 | 369,741 |
Collaterized mortgage obligation securities | 256,500 | 262,207 |
Commercial mortgage-backed securities | 332,205 | 270,036 |
Fair value | 1,344,757 | 1,211,934 |
Interest rate swaps, asset | 917 | 1,681 |
Total assets | 1,345,674 | 1,213,615 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
Fair value | 23,845 | 24,390 |
Commercial loans held for sale | 570,426 | 688,471 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
Commercial mortgage-backed securities | 23,845 | 24,390 |
Fair value | 23,845 | 24,390 |
Commercial loans held for sale | 570,426 | 688,471 |
Investment in unconsolidated entity | 58,258 | 59,273 |
Assets held for sale from discontinued operations | 188,025 | 197,831 |
Total assets | 840,554 | 969,965 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets measured on a nonrecurring basis [Abstract] | ||
Impaired loans - collateral dependent | 4,767 | 3,747 |
Intangible assets | 3,463 | 3,846 |
Assets nonrecurring | $ 8,230 | $ 7,593 |
Fair Value Measurements (Compan
Fair Value Measurements (Company's Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Assets Held-For-Sale [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | $ 197,831 | $ 304,313 |
Included in earnings | 352 | |
Purchases, issuances, sales and settlements | ||
Issuances | 862 | 1,664 |
Sales | (3,409) | (35,000) |
Settlements | (7,259) | (62,754) |
Charge-offs | (10,744) | |
Ending balance | 188,025 | 197,831 |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | 352 | |
Commercial Loans Held For Sale [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 688,471 | 503,316 |
Included in earnings | 11,527 | 19,850 |
Purchases, issuances, sales and settlements | ||
Issuances | 403,241 | 866,303 |
Sales | (532,813) | (700,998) |
Ending balance | 570,426 | 688,471 |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | 376 | (922) |
Available For Sale Securities [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 24,390 | 40,644 |
Transfers out of level 3 | (74,355) | |
Included in other comprehensive income (loss) | 526 | (688) |
Purchases, issuances, sales and settlements | ||
Purchases | 62,076 | |
Settlements | (1,071) | (3,287) |
Ending balance | 23,845 | 24,390 |
Investment In Unconsolidated Entity [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 59,273 | 74,473 |
Included in earnings | (3,689) | |
Purchases, issuances, sales and settlements | ||
Settlements | (1,015) | (11,511) |
Ending balance | $ 58,258 | 59,273 |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | $ (3,689) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investment securities, held-to-maturity | $ 84,428,000 | $ 84,432,000 |
Minimum [Member] | ||
Estimated Selling Costs | 7.00% | |
Maximum [Member] | ||
Estimated Selling Costs | 10.00% | |
Weighted Average [Member] | Measurement Input, Default Rate [Member] | ||
Investment in unconsolidated entity, measurement input | 0.01 | 0.01 |
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Investment securities available-for-sale, measurement input | 0.0426 | 0.0655 |
Investment securities held-to-maturity, measurement input | 0.0875 | 0.0880 |
Investment in unconsolidated entity, measurement input | 0.0645 | 0.0630 |
Available For Sale Securities [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Investment securities available-for-sale, measurement input | 0.0426 | 0.0655 |
Loans, Net Of Deferred Loan Fees And Costs [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Loans, net of deferred loan fees and costs, measurement input | 0.0447 | 0.0422 |
Loans, Net Of Deferred Loan Fees And Costs [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Loans, net of deferred loan fees and costs, measurement input | 0.0756 | 0.0693 |
Commercial Loan Held For Sale SBA [Member] | Minimum [Member] | Measurement Input, Offered Price [Member] | ||
Commercial loans held for sale, measurement input | 98.75 | 99.125 |
Commercial Loan Held For Sale SBA [Member] | Maximum [Member] | Measurement Input, Offered Price [Member] | ||
Commercial loans held for sale, measurement input | 110 | 110 |
Commercial Loan Held For Sale Fixed [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Commercial loans held for sale, measurement input | 0.0500 | 0.0523 |
Commercial Loan Held For Sale Fixed [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Commercial loans held for sale, measurement input | 0.0743 | 0.0692 |
Commercial Loan Held For Sale Floating [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Commercial loans held for sale, measurement input | 0.0575 | 0.0541 |
Commercial Loan Held For Sale Floating [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Commercial loans held for sale, measurement input | 0.0645 | 0.0775 |
Assets Held-For-Sale [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Assets held for sale, measurement input | 0.0386 | 0.0426 |
Assets Held-For-Sale [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Assets held for sale, measurement input | 0.0836 | 0.0836 |
Subordinated Debentures [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Subordinated debentures, measurement input | 0.0875 | 0.0881 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Investment securities available-for-sale | $ 23,845,000 | $ 24,390,000 |
Investment securities, held-to-maturity | 7,217,000 | 7,278,000 |
Federal Home Loan Bank And Atlantic Central Bankers Bank stock | 1,113,000 | 1,113,000 |
Loans, net of deferred loan fees and costs | 1,508,176,000 | 1,503,780,000 |
Commercial loans held for sale | 570,426,000 | 688,471,000 |
Investment in unconsolidated entity | 58,258,000 | 59,273,000 |
Assets held for sale | 188,025,000 | 197,831,000 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Loan Held For Sale SBA [Member] | ||
Commercial loans held for sale | 206,901,000 | 199,977,000 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Loan Held For Sale Fixed [Member] | ||
Commercial loans held for sale | 92,334,000 | 95,307,000 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Loan Held For Sale Floating [Member] | ||
Commercial loans held for sale | 271,191,000 | 393,187,000 |
Significant Unobservable Inputs (Level 3) [Member] | Subordinated Debentures [Member] | ||
Subordinated debentures | $ 9,788,000 | $ 9,975,000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)agreement | |
Derivative [Line Items] | |
Notional Amount | $ 40,300 |
Payable under agreements | 917 |
Cash collateral | $ 251 |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of interest rate swap agreements | agreement | 7 |
Fair value adjustment on derivatives | $ 765 |
Derivatives (Derivatives) (Deta
Derivatives (Derivatives) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Derivative [Line Items] | |
Notional amount | $ 40,300 |
Fair value | $ 917 |
Interest Rate Swaps, Maturing August 4, 2021 [Member] | |
Derivative [Line Items] | |
Maturity date | Aug. 4, 2021 |
Notional amount | $ 10,300 |
Interest rate paid (in hundredths) | 1.12% |
Interest rate received (in hundredths) | 2.74% |
Fair value | $ 289 |
Interest Rate Swaps, Maturing August 17, 2025 [Member] | |
Derivative [Line Items] | |
Maturity date | Aug. 17, 2025 |
Notional amount | $ 2,500 |
Interest rate paid (in hundredths) | 2.27% |
Interest rate received (in hundredths) | 2.68% |
Fair value | $ 6 |
Interest Rate Swaps, Maturing December 23, 2025 [Member] | |
Derivative [Line Items] | |
Maturity date | Dec. 23, 2025 |
Notional amount | $ 6,800 |
Interest rate paid (in hundredths) | 2.16% |
Interest rate received (in hundredths) | 2.60% |
Fair value | $ 68 |
Interest Rate Swaps, Maturing December 24, 2025 [Member] | |
Derivative [Line Items] | |
Maturity date | Dec. 24, 2025 |
Notional amount | $ 8,200 |
Interest rate paid (in hundredths) | 2.17% |
Interest rate received (in hundredths) | 2.60% |
Fair value | $ 73 |
Interest Rate Swaps, Maturing January 28, 2026 [Member] | |
Derivative [Line Items] | |
Maturity date | Jan. 28, 2026 |
Notional amount | $ 3,000 |
Interest rate paid (in hundredths) | 1.87% |
Interest rate received (in hundredths) | 2.76% |
Fair value | $ 85 |
Interest Rate Swaps, Maturing July 20, 2026 [Member] | |
Derivative [Line Items] | |
Maturity date | Jul. 20, 2026 |
Notional amount | $ 6,300 |
Interest rate paid (in hundredths) | 1.44% |
Interest rate received (in hundredths) | 2.76% |
Fair value | $ 378 |
Interest Rate Swaps, Maturing December 12, 2026 [Member] | |
Derivative [Line Items] | |
Maturity date | Dec. 12, 2026 |
Notional amount | $ 3,200 |
Interest rate paid (in hundredths) | 2.26% |
Interest rate received (in hundredths) | 2.60% |
Fair value | $ 18 |
Other Identifiable Intangible_2
Other Identifiable Intangible Assets (Details) - USD ($) | Nov. 29, 2012 | May 31, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2007 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 383,000 | $ 383,000 | ||||
Customer List [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition purchase price | $ 60,000,000 | |||||
Intangible asset amortization period | 10 years | |||||
Amortization of intangible assets over five years | 1,700,000 | |||||
Gross intangible assets | $ 3,400,000 | 3,400,000 | ||||
Accumulated amortization | 993,000 | $ 908,000 | ||||
Amortization of intangible assets | 340,000 | |||||
Customer List [Member] | Stored Value Solutions Division Of Marshall Bank First [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition purchase price | $ 12,000,000 | |||||
Intangible asset amortization period | 12 years | |||||
Amortization of intangible assets per year | $ 1,000,000 | |||||
Amortization of intangible assets over remainder of amortization period | $ 750,000 | |||||
Gross intangible assets | 12,000,000 | |||||
Accumulated amortization | 11,300,000 | 11,000,000 | ||||
Software [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition date | Nov. 29, 2012 | |||||
Acquisition purchase price | $ 1,800,000 | |||||
Intangible asset amortization period | 8 years | |||||
Amortization of intangible assets per year | $ 217,000 | |||||
Amortization of intangible assets over five years | $ 301,000 | |||||
Gross intangible assets | 1,800,000 | |||||
Accumulated amortization | $ 1,500,000 | $ 1,500,000 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Narrative) (Details) - Accounting Standards Update 2016-02 [Member] $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 16.4 |
Restatement Adjustments [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accrued Rent | 1.7 |
Operating Lease, Liability | $ 18.1 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Summary of Direct Lease Financing) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Recent Accounting Pronouncements [Abstract] | |
Remaining 2019 | $ 97,319 |
2020 | 96,571 |
2021 | 65,543 |
2022 | 33,014 |
2023 | 13,818 |
2024 and thereafter | 2,668 |
Total undiscounted cash flows | 308,933 |
Residual value | 115,217 |
Difference between undiscounted cash flows and discounted cash flows | (39,220) |
Present value of lease payments recorded as lease receivables | 384,930 |
Direct financing lease, unguaranteed residual asset | $ 26,998 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Matters [Abstract] | |
Percentage of net profits from preceding period for which dividend is paid to surplus fund (in hundredths) | 50.00% |
Percentage of capital stock (in hundredths) | 50.00% |
Percentage of net profits from preceding period for which dividend is paid to surplus fund thereafter (in hundredths) | 25.00% |
Percentage of capital stock thereafter (in hundredths) | 100.00% |
Legal (Narrative) (Details)
Legal (Narrative) (Details) - USD ($) $ in Millions | Feb. 07, 2019 | Jul. 16, 2018 |
Seabreeze Development [Member] | ||
Loss Contingencies [Line Items] | ||
Investment by plantiff, allegedly defrauded | $ 12 | $ 10.5 |
Segment Financials (Narrative)
Segment Financials (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Financials [Abstract] | |
Number of Operating Segments | 4 |
Segment Financials (Schedule Of
Segment Financials (Schedule Of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 43,578 | $ 35,307 | |
Interest expense | 9,568 | 5,233 | |
Net interest income | 34,010 | 30,074 | |
Provision for loan and lease losses | 1,700 | 700 | |
Non-interest income | 30,365 | 29,095 | |
Non-interest expense | 39,229 | 39,049 | |
Income from continuing operations before income taxes | 23,446 | 19,420 | |
Income taxes | 6,035 | 5,399 | |
Net income from continuing operations | 17,411 | 14,021 | |
Income from discontinued operations | 519 | 119 | |
Net income | 17,930 | 14,140 | |
Total assets | 4,626,976 | $ 4,437,911 | |
Total liabilities | 4,192,196 | 4,031,135 | |
Specialty Finance [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 30,473 | 22,813 | |
Interest expense | 368 | 928 | |
Net interest income | 30,105 | 21,885 | |
Provision for loan and lease losses | 1,700 | 700 | |
Non-interest income | 11,777 | 12,710 | |
Non-interest expense | 15,357 | 15,140 | |
Income from continuing operations before income taxes | 24,825 | 18,755 | |
Net income from continuing operations | 24,825 | 18,755 | |
Net income | 24,825 | 18,755 | |
Total assets | 2,084,895 | 2,181,499 | |
Total liabilities | 262,113 | 281,326 | |
Payments [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest allocation | 13,105 | 12,494 | |
Interest expense | 8,384 | 3,902 | |
Net interest income | 4,721 | 8,592 | |
Non-interest income | 18,548 | 16,354 | |
Non-interest expense | 16,459 | 16,194 | |
Income from continuing operations before income taxes | 6,810 | 8,752 | |
Net income from continuing operations | 6,810 | 8,752 | |
Net income | 6,810 | 8,752 | |
Total assets | 38,765 | 43,737 | |
Total liabilities | 3,659,509 | 3,545,877 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 13,105 | 12,494 | |
Interest allocation | (13,105) | (12,494) | |
Interest expense | 816 | 403 | |
Net interest income | (816) | (403) | |
Non-interest income | 40 | 31 | |
Non-interest expense | 7,413 | 7,715 | |
Income from continuing operations before income taxes | (8,189) | (8,087) | |
Income taxes | 6,035 | 5,399 | |
Net income from continuing operations | (14,224) | (13,486) | |
Net income | (14,224) | (13,486) | |
Total assets | 2,315,291 | 2,014,844 | |
Total liabilities | 270,575 | 203,932 | |
Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from discontinued operations | 519 | 119 | |
Net income | 519 | $ 119 | |
Total assets | $ 188,025 | $ 197,831 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2014 | |
Discontinued Operations [Abstract] | ||||
Fair value adjustments | $ 0 | $ 960,000 | ||
Disposal Group, Including Discontinued Operation, Loan Portfolio, Book Value | $ 1,100,000,000 | |||
Investment in unconsolidated entity, at fair value | 58,258,000 | $ 59,273,000 | ||
Assets held for sale, included in discontinued operations and transferred to level 3 | $ 188,025,000 | $ 197,831,000 |
Discontinued Operations (Financ
Discontinued Operations (Financial Results Of The Commercial Lending Business Included In Net Income (Loss) From Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Discontinued Operations [Abstract] | |||
Interest income | $ 2,025 | $ 2,527 | |
Interest expense | |||
Net interest income | 2,025 | 2,527 | |
Non interest income | 14 | 364 | |
Non interest expense | 1,234 | 2,735 | |
Income before taxes | 805 | 156 | |
Income tax expense | 286 | 37 | |
Net income | 519 | $ 119 | |
Loans, net | 158,985 | $ 170,662 | |
Other real estate owned | 29,040 | 27,169 | |
Total assets | $ 188,025 | $ 197,831 |