Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Bancorp, Inc. | |
Entity Central Index Key | 0001295401 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 56,910,521 | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Trading Symbol | TBBK | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 00-51018 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-3016517 | |
Entity Address, Address Line One | 409 Silverside Road | |
Entity Address, City or Town | Wilmington | |
Entity Address, Postal Zip Code | 19809 | |
Entity Address, State or Province | DE | |
City Area Code | 302 | |
Local Phone Number | 385-5000 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Cash and due from banks | $ 24,068 | $ 2,440 |
Interest earning deposits at Federal Reserve Bank | 932,440 | 551,862 |
Total cash and cash equivalents | 956,508 | 554,302 |
Investment securities, available-for-sale, at fair value | 1,382,437 | 1,236,324 |
Investment securities, held-to-maturity (fair value $83,064 and $83,391, respectively) | 84,399 | 84,432 |
Commercial loans held-for-sale, at fair value | 489,240 | 688,471 |
Loans, net of deferred loan fees and costs | 1,683,377 | 1,501,976 |
Allowance for loan and lease losses | (10,360) | (8,653) |
Loans, net | 1,673,017 | 1,493,323 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 4,342 | 1,113 |
Premises and equipment, net | 17,857 | 18,895 |
Accrued interest receivable | 13,898 | 12,753 |
Intangible assets, net | 2,698 | 3,846 |
Deferred tax asset, net | 13,006 | 21,622 |
Investment in unconsolidated entity, at fair value | 49,431 | 59,273 |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 |
Other assets | 94,605 | 65,726 |
Total assets | 4,943,536 | 4,437,911 |
Deposits | ||
Demand and interest checking | 3,844,747 | 3,904,638 |
Savings and money market | 25,950 | 31,076 |
Time deposits | 475,000 | |
Total deposits | 4,345,697 | 3,935,714 |
Securities sold under agreements to repurchase | 93 | 93 |
Subordinated debentures | 13,401 | 13,401 |
Long-term borrowings | 41,166 | 41,674 |
Other liabilities | 59,005 | 40,253 |
Total liabilities | 4,459,362 | 4,031,135 |
SHAREHOLDERS' EQUITY | ||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,910,521 and 56,446,088 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 56,911 | 56,446 |
Treasury stock, at cost (100,000 shares) | (866) | (866) |
Additional paid-in capital | 370,113 | 366,181 |
Accumulated earnings (deficit) | 48,888 | (817) |
Accumulated other comprehensive income (loss) | 9,128 | (14,168) |
Total shareholders' equity | 484,174 | 406,776 |
Total liabilities and shareholders' equity | $ 4,943,536 | $ 4,437,911 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment securities, held-to-maturity, fair value | $ 83,064 | $ 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) | 56,910,521 | 56,446,088 |
Common stock, outstanding (in shares) | 56,910,521 | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Loans, including fees | $ 35,302 | $ 24,981 | $ 95,749 | $ 70,254 |
Investment securities: | ||||
Taxable interest | 10,485 | 10,906 | 32,649 | 31,375 |
Tax-exempt interest | 43 | 50 | 133 | 159 |
Federal funds sold/securities purchased under agreements to resell | 480 | 1,369 | ||
Interest earning deposits | 2,545 | 2,239 | 7,502 | 6,166 |
Total interest income | 48,375 | 38,656 | 136,033 | 109,323 |
Interest expense | ||||
Deposits | 9,034 | 7,690 | 26,727 | 18,298 |
Short-term borrowings | 1,595 | 148 | 2,624 | 261 |
Subordinated debentures | 186 | 186 | 573 | 524 |
Total interest expense | 10,815 | 8,024 | 29,924 | 19,083 |
Net interest income | 37,560 | 30,632 | 106,109 | 90,240 |
Provision for loan and lease losses | 650 | 1,060 | 2,950 | 2,660 |
Net interest income after provision for loan and lease losses | 36,910 | 29,572 | 103,159 | 87,580 |
Non-interest income | ||||
Net realized and unrealized gains on commercial loans originated for sale | 13,704 | 8,999 | 24,319 | 20,274 |
Change in value of investment in unconsolidated entity | (78) | (2,981) | ||
Leasing related income | 589 | 758 | 2,311 | 2,353 |
Affinity fees | 84 | 271 | ||
Gain on sale of IRA portfolio | 65,000 | 65,000 | ||
Other | 490 | 320 | 1,379 | 730 |
Total non-interest income | 33,515 | 90,970 | 83,629 | 137,105 |
Non-interest expense | ||||
Salaries and employee benefits | 24,526 | 19,243 | 70,192 | 59,213 |
Depreciation and amortization | 885 | 999 | 2,825 | 3,012 |
Rent and related occupancy cost | 1,432 | 1,343 | 4,304 | 4,077 |
Data processing expense | 1,192 | 1,380 | 3,684 | 4,741 |
Printing and supplies | 164 | 285 | 506 | 779 |
Audit expense | 402 | 471 | 1,265 | 1,553 |
Legal expense | 1,466 | 1,610 | 4,324 | 5,811 |
Amortization of intangible assets | 382 | 382 | 1,148 | 1,148 |
FDIC insurance | 860 | 2,241 | 4,884 | 7,389 |
Software | 3,199 | 3,593 | 9,180 | 9,879 |
Insurance | 663 | 673 | 1,874 | 1,967 |
Telecom and IT network communications | 417 | 332 | 1,060 | 971 |
Consulting | 934 | 1,130 | 2,576 | 2,658 |
SEC settlement | 1,400 | 1,400 | ||
Lease termination expense | 908 | 395 | ||
Other | 4,129 | 3,617 | 10,669 | 10,065 |
Total non-interest expense | 42,051 | 37,299 | 120,799 | 113,658 |
Income from continuing operations before income taxes | 28,374 | 83,243 | 65,989 | 111,027 |
Income tax expense | 7,975 | 21,942 | 17,585 | 29,550 |
Net income from continuing operations | 20,399 | 61,301 | 48,404 | 81,477 |
Discontinued operations | ||||
Income (loss) from discontinued operations before income taxes | 151 | (370) | 1,875 | (264) |
Income tax expense (benefit) | 125 | (346) | 574 | (345) |
Income (loss) from discontinued operations, net of tax | 26 | (24) | 1,301 | 81 |
Net income | $ 20,425 | $ 61,277 | $ 49,705 | $ 81,558 |
Net income per share from continuing operations - basic | $ 0.36 | $ 1.09 | $ 0.85 | $ 1.45 |
Net income per share from discontinued operations - basic | 0.02 | |||
Net income per share - basic | 0.36 | 1.09 | 0.87 | 1.45 |
Net income per share from continuing operations - diluted | 0.36 | 1.07 | 0.85 | 1.43 |
Net income per share from discontinued operations - diluted | 0.02 | |||
Net income per share - diluted | $ 0.36 | $ 1.07 | $ 0.87 | $ 1.43 |
Service Fees On Deposit Accounts [Member] | ||||
Non-interest income | ||||
Non-interest income, revenue | $ 8 | $ 402 | $ 69 | $ 3,624 |
ACH, Card And Other Payment Processing Fees [Member] | ||||
Non-interest income | ||||
Non-interest income, revenue | 2,590 | 2,281 | 7,414 | 6,275 |
Prepaid And Debit Card And Related Fees [Member] | ||||
Non-interest income | ||||
Non-interest income, revenue | $ 16,134 | $ 13,204 | $ 48,137 | $ 41,559 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 20,425 | $ 61,277 | $ 49,705 | $ 81,558 |
Other comprehensive income (loss) | ||||
Change in net unrealized gain (loss) during the period | 5,800 | (4,540) | 31,890 | (23,285) |
Reclassification adjustments for losses included in income | (15) | (41) | ||
Amortization of losses previously held as available-for-sale | 7 | 69 | 22 | 90 |
Other comprehensive income (loss) | 5,807 | (4,486) | 31,912 | (23,236) |
Securities available-for-sale: | ||||
Change in net unrealized gain (loss) during the period | 1,566 | (1,226) | 8,610 | (6,287) |
Reclassification adjustments for losses included in income | (4) | (11) | ||
Amortization of losses previously held as available-for-sale | 2 | 18 | 6 | 24 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,568 | (1,212) | 8,616 | (6,274) |
Other comprehensive income (loss) net of tax and reclassifications into net income | 4,239 | (3,274) | 23,296 | (16,962) |
Comprehensive income | $ 24,664 | $ 58,003 | $ 73,001 | $ 64,596 |
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 | 107 | (9) | 111 | ||
Common stock issued from option exercises, net of tax benefits (in shares) | 13,390 | |||||
Common stock issued from restricted units, net of tax benefits | $ 433 | (433) | ||||
Common stock issued from restricted units, 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) | 363,613 | (75,354) | (13,809) | 329,891 |
Balance (in shares) at Mar. 31, 2018 | 56,307,884 | |||||
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 | 81,558 | |||||
Other comprehensive income (loss) net of reclassification adjustments and tax | (16,962) | |||||
Balance at Sep. 30, 2018 | $ 56,446 | (866) | 365,749 | (7,936) | (21,519) | 391,874 |
Balance (in shares) at Sep. 30, 2018 | 56,446,088 | |||||
Balance at Mar. 31, 2018 | $ 56,307 | (866) | 363,613 | (75,354) | (13,809) | 329,891 |
Balance (in shares) at Mar. 31, 2018 | 56,307,884 | |||||
Net income | 6,141 | 6,141 | ||||
Common stock issued from restricted units, net of tax benefits | $ 104 | (103) | 1 | |||
Common stock issued from restricted units, net of tax benefits (in shares) | 102,641 | |||||
Stock-based compensation | 950 | 950 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | (4,436) | (4,436) | ||||
Balance at Jun. 30, 2018 | $ 56,411 | (866) | 364,460 | (69,213) | (18,245) | 332,547 |
Balance (in shares) at Jun. 30, 2018 | 56,410,525 | |||||
Net income | 61,277 | 61,277 | ||||
Common stock issued from restricted units, net of tax benefits | $ 35 | (35) | ||||
Common stock issued from restricted units, net of tax benefits (in shares) | 35,563 | |||||
Stock-based compensation | 1,324 | 1,324 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | (3,274) | (3,274) | ||||
Balance at Sep. 30, 2018 | $ 56,446 | (866) | 365,749 | (7,936) | (21,519) | 391,874 |
Balance (in shares) at Sep. 30, 2018 | 56,446,088 | |||||
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 units, net of tax benefits | $ 122 | (122) | ||||
Common stock issued from restricted units, 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 | |||||
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 | $ 49,705 | |||||
Other comprehensive income (loss) net of reclassification adjustments and tax | 23,296 | |||||
Balance at Sep. 30, 2019 | $ 56,911 | (866) | 370,113 | 48,888 | 9,128 | $ 484,174 |
Balance (in shares) at Sep. 30, 2019 | 56,910,521 | 56,910,521 | ||||
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 | |||||
Net income | 11,350 | 11,350 | ||||
Common stock issued from restricted units, net of tax benefits | $ 307 | (307) | ||||
Common stock issued from restricted units, net of tax benefits (in shares) | 306,952 | |||||
Stock-based compensation | 1,595 | 1,595 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | 10,407 | 10,407 | ||||
Balance at Jun. 30, 2019 | $ 56,875 | (866) | 368,771 | 28,463 | 4,889 | 458,132 |
Balance (in shares) at Jun. 30, 2019 | 56,874,956 | |||||
Net income | 20,425 | 20,425 | ||||
Common stock issued from restricted units, net of tax benefits | $ 36 | (36) | ||||
Common stock issued from restricted units, net of tax benefits (in shares) | 35,565 | |||||
Stock-based compensation | 1,378 | 1,378 | ||||
Other comprehensive income (loss) net of reclassification adjustments and tax | 4,239 | 4,239 | ||||
Balance at Sep. 30, 2019 | $ 56,911 | $ (866) | $ 370,113 | $ 48,888 | $ 9,128 | $ 484,174 |
Balance (in shares) at Sep. 30, 2019 | 56,910,521 | 56,910,521 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income from continuing operations | $ 48,404 | $ 81,477 |
Net income from discontinued operations | 1,301 | 81 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 3,973 | 4,160 |
Provision for loan and lease losses | 2,950 | 2,660 |
Net amortization of investment securities discounts/premiums | 14,270 | 11,390 |
Stock-based compensation expense | 4,396 | 3,017 |
Loans originated for sale | (1,099,719) | (485,198) |
Sale of commercial loans originated for resale | 1,232,041 | 635,964 |
Gain on sales of loans originated for resale | (25,228) | (20,733) |
Gain on sale of IRA portfolio | (65,000) | |
Loss on sale of fixed assets | 15 | |
Fair value adjustment on investment in unconsolidated entity | 2,981 | |
Writedown of other real estate owned | 45 | |
Change in fair value of loans held-for-sale | (1,562) | 2,255 |
Change in fair value of derivatives | 2,471 | (1,797) |
Gain on sales of investment securities | (41) | |
Increase in accrued interest receivable | (1,145) | (721) |
Increase in other assets | (21,904) | (8,419) |
Change in fair value of discontinued loans held-for-sale | 1,387 | |
Change in fair value of discontinued assets held-for-sale | 123 | |
Increase in other liabilities | 2,949 | 2,602 |
Net cash provided by operating activities | 163,320 | 166,125 |
Investing activities | ||
Purchase of investment securities available-for-sale | (157,480) | (134,758) |
Cash from call of investment securities held-to-maturity | 2,000 | |
Proceeds from sale of investment securities available-for-sale | 3,529 | |
Proceeds from redemptions and prepayments of securities available-for-sale | 122,438 | 163,784 |
Net increase in loans | (179,806) | (106,368) |
Net decrease in discontinued loans held-for-sale | 28,939 | 71,078 |
Purchases of premises and equipment | (1,824) | (647) |
Change in receivable from investment in unconsolidated entity | 123 | 33,530 |
Return of investment in unconsolidated entity | 9,842 | 7,280 |
Decrease in discontinued assets held-for-sale | 6,671 | 5,822 |
Net cash (used in) provided by investing activities | (171,097) | 45,250 |
Financing activities | ||
Net increase (decrease) in deposits | 409,983 | (402,784) |
Net decrease in securities sold under agreements to repurchase | (59) | |
Proceeds from the issuance of common stock | 112 | |
Proceeds from the sale of IRA portfolio | 60,000 | |
Net cash provided by (used in) financing activities | 409,983 | (342,731) |
Net increase (decrease) in cash and cash equivalents | 402,206 | (131,356) |
Cash and cash equivalents, beginning of period | 554,302 | 908,935 |
Cash and cash equivalents, end of period | 956,508 | 777,579 |
Supplemental disclosure: | ||
Interest paid | 28,871 | 18,977 |
Taxes paid | 15,037 | 1,899 |
Transfers of discontinued loans to other real estate owned | 5,295 | 989 |
Non-cash investing and financing activities | ||
Investment securities received in securitization transactions | $ 93,191 | $ 62,076 |
Structure Of Company
Structure Of Company | 9 Months Ended |
Sep. 30, 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) and cash value of insurance-backed lines of credit (IBLOC), 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 and debit cards, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Basis of Presentation The financial statements of the Company, as of September 30, 2019 and for the three and nine month periods ended September 30, 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 nine month period ended September 30, 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 (ASC) 606 include prepaid and debit 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 and debit 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-of-use of an underlying asset for the lease term and lease liabilities 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2019, the Company had three active stock-based compensation plans which are described in the Company’s 2018 Annual Report on the Form 10-K. The Company granted 65,104 stock options with a vesting period of 4 years during the nine month period ended September 30, 2019. The weighted average grant-date fair value was $3.84 . The Company did not grant stock options during the nine month period ended September 30, 2018. There were no common stock options exercised in the nine month period ended September 30, 2019, and 23,125 common stock options were exercised during the nine month period ended September 30, 2018. A summary 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 3.38 - Exercised - - - - Expired - - - - Forfeited - - - - Outstanding at September 30, 2019 1,341,604 $ 8.25 3.33 $ 2,280,348 Exercisable at September 30, 2019 1,201,500 $ 8.32 2.80 $ 1,957,510 The Company granted 930,831 restricted stock units (RSUs) in the first nine 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 nine months of 2019 had a fair value of $8.57 per unit. In the first nine months of 2018, the Company granted 507,792 RSUs, of which 440,292 had a vesting period of 2.8 years and 67,500 had a vesting period of one year. The 507,792 RSUs granted in the first nine months of 2018 had a fair value of $11.07 per unit. 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 2.22 Vested (464,430) 8.21 Forfeited (29,986) 8.95 Outstanding at September 30, 2019 1,287,352 $ 8.87 1.90 As of September 30, 2019, there was a total of $8.8 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 1.9 years . Related compensation expense for the nine months ended September 30, 2019 and 2018 was $4.4 million and $3.0 million, respectively. The total issuance date fair value of RSUs vested and options exercised during the nine months ended September 30, 2019 and 2018 was $3.8 million and $3.1 million, respectively. The total intrinsic value of the options exercised and stock units vested in those respective periods was $4.3 million and $6.2 million, respectively. For the periods ended September 30, 2019 and 2018, the Company estimated fair value of each stock option grant on the date of grant using the Black-Scholes options pricing model with the following weighted average assumptions: September 30, 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 September 30, 2019 is based on awards that are ultimately expected to vest and has been reduced for estimated forfeitures. The Company estimated forfeitures using historical data based upon the groups identified by management. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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 September 30, 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 $ 20,399 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,399 57,413,297 $ 0.36 For the three months ended September 30, 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 $ 26 56,907,815 $ - Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 26 57,413,297 $ - For the three months ended September 30, 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 $ 20,425 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,425 57,413,297 $ 0.36 Stock options for 984,104 shares , exercisable at prices between $6.75 and $8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per share computation because the exercise price per share was less than the average market price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 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 $ 48,404 56,712,084 $ 0.85 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 48,404 57,152,371 $ 0.85 For the nine months ended September 30, 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 $ 1,301 56,712,084 $ 0.02 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 1,301 57,152,371 $ 0.02 For the nine months ended September 30, 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 $ 49,705 56,712,084 $ 0.87 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 49,705 57,152,371 $ 0.87 Stock options for 984,104 shares , exercisable at prices between $6.75 and $8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per share computation shares because the exercise price per share was less than the average ma rket price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 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 $ 61,301 56,442,222 $ 1.09 Effect of dilutive securities Common stock options and restricted stock units - 661,079 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 61,301 57,103,301 $ 1.07 For the three months ended September 30, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic loss per share from discontinued operations Net loss available to common shareholders $ (24) 56,442,222 $ - Effect of dilutive securities Common stock options and restricted stock units - 661,079 - Diluted loss per share Net loss available to common shareholders $ (24) 57,103,301 $ - For the three months ended September 30, 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 $ 61,277 56,442,222 $ 1.09 Effect of dilutive securities Common stock options and restricted stock units - 661,079 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 61,277 57,103,301 $ 1.07 Stock options for 136,500 shares, exercisable $10.45 per share, were outstanding at September 30, 2018, but were not included in the dilutive shares because the exercise price per share was greater than the average market price. For the nine months ended September 30, 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 $ 81,477 56,309,390 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units - 775,454 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 81,477 57,084,844 $ 1.43 For the nine months ended September 30, 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 $ 81 56,309,390 $ - Effect of dilutive securities Common stock options and restricted stock units - 775,454 - Diluted earnings per share Net earnings available to common shareholders $ 81 57,084,844 $ - For the nine months ended September 30, 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 $ 81,558 56,309,390 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units - 775,454 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 81,558 57,084,844 $ 1.43 Stock options for 1,429,500 shares exercisable at prices between $6.75 and $10.45 per share, were outstanding at September 30, 2018, and included in dilutive shares because the exercise price per share was less than the average market price. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018 are summarized as follows (in thousands): Available-for-sale September 30, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 53,479 $ 1,198 $ (149) $ 54,528 Asset-backed securities * 259,516 225 (733) 259,008 Tax-exempt obligations of states and political subdivisions 6,173 137 - 6,310 Taxable obligations of states and political subdivisions 60,052 2,498 - 62,550 Residential mortgage-backed securities 349,909 4,154 (1,105) 352,958 Collateralized mortgage obligation securities 236,468 2,566 (200) 238,834 Commercial mortgage-backed securities 403,542 5,525 (818) 408,249 $ 1,369,139 $ 16,303 $ (3,005) $ 1,382,437 September 30, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 45,776 $ 22 $ (415) $ 45,383 Collateralized loan obligation securities 210,869 199 (318) 210,750 Other 2,871 4 - 2,875 $ 259,516 $ 225 $ (733) $ 259,008 Held-to-maturity September 30, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,206 $ - $ (2,060) $ 7,146 Other debt securities - pooled 75,193 725 - 75,918 $ 84,399 $ 725 $ (2,060) $ 83,064 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 $4.3 million and $1.1 million, respectively, at September 30, 2019 and December 31, 2018. The amortized cost and fair value of the Company’s investment securities at September 30, 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 $ 6,877 $ 6,879 $ - $ - Due after one year through five years 73,153 74,685 - - Due after five years through ten years 248,936 254,860 - - Due after ten years 1,040,173 1,046,013 84,399 83,064 $ 1,369,139 $ 1,382,437 $ 84,399 $ 83,064 At September 30, 2019 and December 31, 2018, investment securities with a fair value of approximately $258.9 million and $116.0 million, respectively, were pledged to secure a line of credit with the FHLB . At September 30, 2019 and December 31, 2018, investment securities with a fair value of approximately $165.0 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 values supplied by a third-party market data provider, or where such third-party market data is not available, fair values are based on discounted cash flows,. The fair values of held-to-maturity securities are based on the present value of cash flows, derived by discounting 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 September 30, 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 3 $ 3,074 $ (5) $ 4,473 $ (144) $ 7,547 $ (149) Asset-backed securities 27 136,446 (538) 13,541 (195) 149,987 (733) Residential mortgage-backed securities 63 51,011 (131) 81,167 (974) 132,178 (1,105) Collateralized mortgage obligation securities 21 25,706 (33) 20,232 (167) 45,938 (200) Commercial mortgage-backed securities 5 43,979 (247) 24,297 (571) 68,276 (818) Total temporarily impaired investment securities 119 $ 260,216 $ (954) $ 143,710 $ (2,051) $ 403,926 $ (3,005) 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 $ - $ - $ 7,146 $ (2,060) $ 7,146 $ (2,060) Total temporarily impaired investment securities 1 $ - $ - $ 7,146 $ (2,060) $ 7,146 $ (2,060) 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 September 30, 2019, it had a book value of $9.2 million and a fair value of $7.1 million. The Company has evaluated the securities in the above tables as of September 30, 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 along with 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 security, 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 to recover their amortized cost basis. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2019 | |
Loans [Abstract] | |
Loans | Note 6. Loans The Company has several lending lines of business including SBA loans, direct lease financing, SBLOC and IBLOC and other specialty and consumer lending. T he Company also originates loans for sale into commercial mortgage-backed securitizations or to secondary government guaranteed loan markets. At origination, the Company elected fair value treatment for these loans held-for-sale to better reflect the economics of the transactions. At September 30, 2019, the fair value of the loans held-for-sale was $489.2 million and their amortized cost was $484.3 million. Included in “Net realized and unrealized gains (losses) on loans originated for sale” in the consolidated statements of operations are changes in the estimate in fair value of unsold loans. For the nine months ended September 30, 2019, unrealized gains recognized for such changes in fair value were $1.6 million. For the nine months ended September 30, 2018, unrealized losses similarly recognized were $2.3 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 CRE securities were not originally assumed in the first four securitizations. However, as a result of higher than expected prepayments on CRE2, annual prepayments of 15% on CRE5 were assumed, beginning after the first-year anniversary of the CRE5 securitization. For CRE6, there was no premium or discount associated with the tranche purchased and prepayments were accordingly not estimated. 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 September 30, 2019 and 2018 is as follows: · In the thir d quarter of 2019, the Company sponsored The Bancorp Commercial Mortgage 2019-CRE6 Trust, securitizing $778.2 million of loans and recording a $13.7 million gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $51.6 million based upon an initial discount rate of 4.12% . · In the first quarter of 2019, the Company sponsored The Bancorp Commercial Mortgage 2019-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 third quarter of 2018, the Company sponsored The Bancorp Commercial Mortgage 2018-CRE4 Trust, securitizing $341.0 million of loans and recording a $9.0 million gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $33.7 million based upon an initial discount rate of 4.88% . · 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 million 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): September 30, December 31, 2019 2018 SBL non-real estate $ 84,181 $ 76,340 SBL commercial mortgage 209,008 165,406 SBL construction 38,116 21,636 Small business loans * 331,305 263,382 Direct lease financing 412,755 394,770 SBLOC / IBLOC ** 920,463 785,303 Other specialty lending 3,167 31,836 Other consumer loans *** 6,388 16,302 1,674,078 1,491,593 Unamortized loan fees and costs 9,299 10,383 Total loans, net of deferred loan fees and costs $ 1,683,377 $ 1,501,976 September 30, December 31, 2019 2018 SBL loans, including deferred fees and costs of $6,135 and $7,478 for September 30, 2019 and December 31, 2018, respectively $ 337,440 $ 270,860 SBL loans included in held-for-sale 222,007 199,977 Total small business loans $ 559,447 $ 470,837 * The preceding table shows small business loans (SBL) and SBL held-for-sale at the dates indicated (in thousands). While the majority of SBL are comprised of SBA loans, SBL also includes $16,953,000 of non-SBA loans as of September 30, 2019 and none at December 31, 2018. ** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. *** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $771,000 and $7.2 million at September 30, 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 provides information about impaired loans at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 352 $ 2,478 $ - $ 262 $ 4 SBL commercial mortgage - - - - - SBL construction - - - 355 - Direct lease financing 288 288 - 381 9 Consumer - home equity 495 495 - 1,329 7 With an allowance recorded SBL non-real estate 3,898 3,898 (3,037) 3,955 22 SBL commercial mortgage 458 458 (71) 458 - SBL construction 711 711 (35) 178 - Direct lease financing 136 136 (136) 305 16 Consumer - home equity 1,220 1,220 (204) 400 - Total SBL non-real estate 4,250 6,376 (3,037) 4,217 26 SBL commercial mortgage 458 458 (71) 458 - SBL construction 711 711 (35) 533 - Direct lease financing 424 424 (136) 686 25 Consumer - home equity 1,715 1,715 (204) 1,729 7 $ 7,558 $ 9,684 $ (3,483) $ 7,623 $ 58 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 175 $ 1,469 $ - $ 334 $ - SBL commercial mortgage - - - - - Direct lease financing 437 548 - 425 28 Consumer - home equity 1,612 1,612 - 1,648 10 With an allowance recorded SBL non-real estate 3,541 3,541 (2,806) 2,816 70 SBL commercial mortgage 458 458 (71) 505 - Direct lease financing 434 434 (145) 617 66 Consumer - home equity 129 129 (17) 26 - Total SBL non-real estate 3,716 5,010 (2,806) 3,150 70 SBL 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 September 30, 2019 or December 31, 2018) (in thousands): September 30, December 31, 2019 2018 Non-accrual loans SBL non-real estate $ 3,803 $ 2,590 SBL commercial mortgage 458 458 SBL construction 711 - Consumer 1,448 1,468 Total non-accrual loans 6,420 4,516 Loans past due 90 days or more and still accruing 2,788 954 Total non-performing loans 9,208 5,470 Other real estate owned - - Total non-performing assets $ 9,208 $ 5,470 Interest which would have been earned on loans classified as non-accrual for the nine months ended September 30, 2019 and 2018, was $356,000 and $188,000 , respectively. The Company’s loans that were modified as of September 30, 2019 and December 31, 2018 and considered troubled debt restructurings are as follows (dollars in thousands): September 30, 2019 December 31, 2018 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 6 $ 1,274 $ 1,274 5 $ 1,564 $ 1,564 Direct lease financing 2 423 423 3 870 870 Consumer 2 495 495 2 513 513 Total 10 $ 2,192 $ 2,192 10 $ 2,947 $ 2,947 The balances below provide information as to how the loans were modified as troubled debt restructuring loans as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ - $ 60 $ 1,214 $ - $ 85 $ 1,479 Direct lease financing - 136 287 - 434 436 Consumer - - 495 - - 513 Total $ - $ 196 $ 1,996 $ - $ 519 $ 2,428 The following table summarizes, as of September 30, 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 (dollars in thousands): Number Pre-modification recorded investment SBL non-real estate 1 $ 660 Total 1 $ 660 The Company had no commitments to extend additional credit to loans classified as troubled debt restructurings as of September 30, 2019 . When loans are classified as troubled debt restructurings, their collateral is valued and a specific reserve is established if the collateral valuation, less deposition costs, is lower than the recorded value of the loan. As of September 30, 2019, there were 10 troubled debt restructured loans with a balance of $2.2 million which had specific reserves of $1.2 million. Approximately $1.0 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): September 30, 2019 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2019 $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs (995) - - (391) - - (3) - (1,389) Recoveries 94 - - 51 - - 1 - 146 Provision (credit) 1,595 315 141 676 118 (48) 125 28 2,950 Ending balance $ 5,330 $ 1,256 $ 391 $ 2,361 $ 511 $ 12 $ 231 $ 268 $ 10,360 Ending balance: Individually evaluated for impairment $ 3,037 $ 71 $ 35 $ 136 $ - $ - $ 204 $ - $ 3,483 Ending balance: Collectively evaluated for impairment $ 2,293 $ 1,185 $ 356 $ 2,225 $ 511 $ 12 $ 27 $ 268 $ 6,877 Loans: Ending balance $ 84,181 $ 209,008 $ 38,116 $ 412,755 $ 920,463 $ 3,167 $ 6,388 $ 9,299 $ 1,683,377 Ending balance: Individually evaluated for impairment $ 4,250 $ 458 $ 711 $ 424 $ - $ - $ 1,715 $ - $ 7,558 Ending balance: Collectively evaluated for impairment $ 79,931 $ 208,550 $ 37,405 $ 412,331 $ 920,463 $ 3,167 $ 4,673 $ 9,299 $ 1,675,819 December 31, 2018 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2018 $ 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 September 30, 2018 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2018 $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 $ 7,096 Charge-offs (1,079) (157) - (532) - - (20) - (1,788) Recoveries 47 13 - 64 - - - - 124 Provision (credit) 1,434 245 50 929 24 19 (44) 3 2,660 Ending balance $ 3,547 $ 1,221 $ 186 $ 1,956 $ 389 $ 76 $ 517 $ 200 $ 8,092 Ending balance: Individually evaluated for impairment $ 1,844 $ 71 $ - $ 195 $ - $ - $ - $ - $ 2,110 Ending balance: Collectively evaluated for impairment $ 1,703 $ 1,150 $ 186 $ 1,761 $ 389 $ 76 $ 517 $ 200 $ 5,982 Loans: Ending balance $ 74,408 $ 166,432 $ 17,978 $ 395,976 $ 778,552 $ 40,799 $ 12,172 $ 10,456 $ 1,496,773 Ending balance: Individually evaluated for impairment $ 2,972 $ 458 $ - $ 1,125 $ - $ - $ 1,618 $ - $ 6,173 Ending balance: Collectively evaluated for impairment $ 71,436 $ 165,974 $ 17,978 $ 394,851 $ 778,552 $ 40,799 $ 10,554 $ 10,456 $ 1,490,600 The Company did no t have loans acquired with deteriorated credit quality at either September 30, 2019 or December 31, 2018. A detail of the Company’s delinquent loans by loan category is as follows (in thousands): September 30, 2019 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 141 $ - $ - $ 3,803 $ 3,944 $ 80,237 $ 84,181 SBL commercial mortgage - - - 458 458 208,550 209,008 SBL construction - - - 711 711 37,405 38,116 Direct lease financing 1,898 930 2,788 - 5,616 407,139 412,755 SBLOC / IBLOC 2,561 - - - 2,561 917,902 920,463 Other specialty lending - - - - - 3,167 3,167 Consumer - other - - - - - 1,037 1,037 Consumer - home equity - - - 1,448 1,448 3,903 5,351 Unamortized loan fees and costs - - - - - 9,299 9,299 $ 4,600 $ 930 $ 2,788 $ 6,420 $ 14,738 $ 1,668,639 $ 1,683,377 December 31, 2018 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 346 $ 125 $ - $ 2,590 $ 3,061 $ 73,279 $ 76,340 SBL commercial mortgage - - - 458 458 164,948 165,406 SBL 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): September 30, 2019 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBL non-real estate * $ 64,507 $ 1,948 $ 4,577 $ - $ - $ 9,148 $ 4,001 $ 84,181 SBL commercial mortgage * 194,949 268 5,011 - - 7,889 891 209,008 SBL construction 37,284 - 711 - - - 121 38,116 Direct lease financing 397,612 - 9,535 - - 2,256 3,352 412,755 SBLOC / IBLOC 865,695 - - - - - 54,768 920,463 Other specialty lending 3,167 - - - - - - 3,167 Consumer 3,351 - 1,448 - - - 1,589 6,388 Unamortized loan fees and costs - - - - - - 9,299 9,299 $ 1,566,565 $ 2,216 $ 21,282 $ - $ - $ 19,293 $ 74,021 $ 1,683,377 December 31, 2018 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBL non-real estate $ 67,809 $ 1,641 $ 4,517 $ - $ - $ 347 $ 2,026 $ 76,340 SBL commercial mortgage 158,667 273 458 - - 5,498 510 165,406 SBL 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 | 9 Months Ended |
Sep. 30, 2019 | |
Transactions with Affiliates [Abstract] | |
Transactions with Affiliates | N ote 7. Transactions with Affiliates The Bank maintains deposits for various affiliated companies totaling approximately $0 and $4.7 million as of September 30, 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 September 30, 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 $2.0 million at September 30, 2019 and December 31, 2018. The Bank periodically purchases 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 $1.4 million 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 has 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 September 30, 2019 and had complied with all terms for all prior repurchase agreements. There were no repurchase agreements outstanding at September 30, 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 $915,000 and $2.2 million for legal services for the nine months ended September 30, 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 . In the third quarter of 2019, there were $100.7 million of transfers from level two to level three. The securities were transferred due to the difficulty in obtaining information related to significant observable inputs. The securities transferred were those which were acquired in the commercial real estate securitizations as described in Note 6. 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 $956.5 million and $554.3 million as of September 30, 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. 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 on an individual loan basis. 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: September 30, 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 $ 1,382,437 $ 1,382,437 $ - $ 1,260,867 $ 121,570 Investment securities, held-to-maturity 84,399 83,064 - 75,918 7,146 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 4,342 4,342 - - 4,342 Commercial loans held-for-sale 489,240 489,240 - - 489,240 Loans, net of deferred loan fees and costs 1,683,377 1,681,081 - - 1,681,081 Investment in unconsolidated entity 49,431 49,431 - - 49,431 Assets held-for-sale from discontinued operations 162,098 162,098 - - 162,098 Demand and interest checking 3,844,747 3,844,747 - 3,844,747 - Savings and money market 25,950 25,950 - 25,950 - Time deposits 475,000 475,000 - 475,000 - Subordinated debentures 13,401 10,094 - - 10,094 Securities sold under agreements to repurchase 93 93 93 - - Interest rate swaps, liability 790 790 - 790 - 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 September 30, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 54,528 $ - $ 54,528 $ - Asset-backed securities 259,008 - 259,008 - Obligations of states and political subdivisions 68,860 - 68,860 - Residential mortgage-backed securities 352,958 - 352,958 - Collateralized mortgage obligation securities 238,834 - 238,834 - Commercial mortgage-backed securities 408,249 - 286,679 121,570 Total investment securities available-for-sale 1,382,437 - 1,260,867 121,570 Commercial loans held-for-sale 489,240 - - 489,240 Investment in unconsolidated entity 49,431 - - 49,431 Assets held-for-sale from discontinued operations 162,098 - - 162,098 Interest rate swaps, liability 790 - 790 - $ 2,082,416 $ - $ 1,260,077 $ 822,339 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 shown 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 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Beginning balance $ 24,390 $ 40,644 $ 688,471 $ 503,316 Transfers into level 3 100,664 - - - Transfers out of level 3 - (74,355) - - Total gains or (losses) (realized/unrealized) Included in earnings - - 26,790 19,850 Included in other comprehensive loss (43) (688) - - Purchases, issuances, sales and settlements Purchases - 62,076 - - Issuances - - 1,099,719 866,303 Sales - - (1,325,740) (700,998) Settlements (3,441) (3,287) - - Ending balance $ 121,570 $ 24,390 $ 489,240 $ 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. $ - $ - $ 1,713 $ (922) The Company’s Level 3 asset activity for the categories shown 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 September 30, 2019 December 31, 2018 September 30, 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) (123) 352 Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 922 1,664 Sales - - (6,671) (35,000) Settlements (9,842) (11,511) (27,907) (62,754) Charge-offs - - (1,954) (10,744) Ending balance $ 49,431 $ 59,273 $ 162,098 $ 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) $ (123) $ 352 Level 3 instruments only Fair value at Fair value at Range at Range at September 30, 2019 December 31, 2018 Valuation techniques Unobservable inputs September 30, 2019 December 31, 2018 Investment securities, available-for-sale $ 121,570 $ 24,390 Discounted cash flow Discount rate 4.00% - 7.45% 6.55% Investment securities, held-to-maturity 7,146 7,278 Discounted cash flow Discount rate 8.28% 8.80% Federal Home Loan Bank and Atlantic 4,342 1,113 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and 1,681,081 1,503,780 Discounted cash flow Discount rate 3.70% - 7.44% 4.22% - 6.93% costs Commercial - SBA 222,007 199,977 Traders' pricing Offered quotes $98.75 - $110 $99.125 - $110 Commercial - fixed 92,907 95,307 Discounted cash flow Discount rate 4.10% - 7.06% 5.23% - 6.92% Commercial - floating 174,326 393,187 Discounted cash flow Discount rate 4.06% - 6.65% 5.41% - 7.75% Commercial loans held-for-sale 489,240 688,471 Investment in unconsolidated entity 49,431 59,273 Discounted cash flow Discount rate 5.87% 6.30% Default rate 1.00% 1.00% Assets held-for-sale from discontinued 162,098 197,831 Discounted cash flow Discount rate, 3.54% - 7.78% 4.26% - 8.36% operations Credit analysis Subordinated debentures 10,094 9,975 Discounted cash flow Discount rate 8.28% 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, including credit and collateral assessments 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 September 30, 2019 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 4,075 $ - $ - $ 4,075 Intangible assets 2,698 - - 2,698 $ 6,773 $ - $ - $ 6,773 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 September 30, 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 $ 4.1 million. To arrive at that fair value, related loan principal of $7.6 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 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 September 30, 2019 were 10 troubled debt restructured loans with a balance of $2.2 million which had specific reserves of $1.2 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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 $2.5 million for the nine months ended September 30, 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 payable by the Company under these swap agreements was $790,000 at September 30, 2019, which is reported in other liabilities. The Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $1.3 million as of September 30, 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 September 30, 2019 are summarized below (dollars in thousands): September 30, 2019 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12% 2.29% 103 August 17, 2025 2,500 2.27% 2.12% (108) December 23, 2025 6,800 2.16% 2.16% (262) December 24, 2025 8,200 2.17% 2.13% (325) January 28, 2026 3,000 1.87% 2.26% (65) July 20, 2026 6,300 1.44% 2.28% 30 December 12, 2026 3,200 2.26% 2.13% (163) Total $ 40,300 $ (790) |
Other Identifiable Intangible A
Other Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 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 ( $206,00 0 over the remainder of the amortization period). The gross carrying amount of the software is $1.8 million, and as of September 30, 2019 and December 31, 2018, respectively, the accumulated amortization was $1. 6 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 ( $250,000 over the remainder of the amortization period). The gross carrying amount of the customer list intangible is $12.0 million, and as of September 30, 2019 and December 31, 2018, the accumulated amortization was $ 11.8 million and $11.0 million. In May 2016, the Company purchased approximately $60.0 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 million, and as of September 30, 2019 and December 31, 2018, respectively, the accumulated amortization was $1.2 million and $908,000 . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 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 has 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 lease 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 $ 40,096 2020 117,691 2021 86,382 2022 51,675 2023 26,048 2024 and thereafter 9,394 Total undiscounted cash flows 331,286 Residual value * 125,938 Difference between undiscounted cash flows and discounted cash flows (44,469) Present value of lease payments recorded as lease receivables $ 412,755 * Of the $125,938,000, $27,665,000 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. The Company is evaluating the impact of the Update on the consolidated financial statements. The Company’s implementation team includes loan review, finance, representatives of the lending department and a third-party advisor. The Company’s third-party advisor is in the process of analyzing additional Company-specific historical information. After the Company has analyzed all available information, it will finalize its determination of the most appropriate CECL methodology. The Company expects to run its processes and controls for estimating expected credit losses parallel to its provisions for loan losses prior to implementation to ensure it has established sufficient and appropriate processes and controls for estimating expected credit losses . 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 | 9 Months Ended |
Sep. 30, 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 June 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 | 9 Months Ended |
Sep. 30, 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, June 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 cooperated fully with the SEC's investigation. As previously reported in an 8-K dated September 20, 2019, the Company agreed, without admitting or denying any of the SEC’s allegations, to resolve the investigation by consenting to the entry of an order by the SEC that: (1) the Company will cease and desist from committing or causing any violations of the books-and-records provisions of the Securities Exchange Act and the relevant rules thereunder; and (2) the Company will pay a penalty of $1.4 million (the “Settlement Payment”) to the SEC. Settlement of this matter was effective on September 20, 2019. The Company recognized a charge in its third fiscal quarter in the amount of the Settlement Payment. Further, as a result of the settlement certain costs to the Company related to the investigation will cease, including the legal costs of the investigation, compliance with the SEC’s subpoena, and cooperation with the SEC. 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 Country, 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 filed a motion to dismiss the state court action as to the Bank and on October 16, 2019, the state court granted the Bank’s motion and dismissed the plaintiffs’ claims against the Bank without prejudice. On June 12, 2019, the Bank was served with a qui tam lawsuit filed in the Superior Court of the State of Delaware, New Castle County. The Delaware Department of Justice intervened in the litigation. The case is titled The State of Delaware, Plaintiff, Ex rel. Russell S. Rogers, Plaintiff-Relator, v. The Bancorp Bank, Interactive Communications International, Inc., and InComm Financial Services, Inc., Defendants. The lawsuit alleges that the defendants violated the Delaware False Claims Act by not paying balances on certain open-loop “Vanilla” prepaid cards to the State of Delaware as unclaimed property. The complaint seeks actual and treble damages, statutory penalties, and attorneys’ fees. The Bank denies the allegations and is defending itself. The Bank filed a motion to dismiss the action and the matter is pending before the court. At this time, the Company is unable to determine whether the ultimate resolution of the matter will have a material adverse effect on our financial condition or operations. 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 | 9 Months Ended |
Sep. 30, 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, cash value insurance policy-backed lines of credit and deposits generated by those business lines. Payments include prepaid card accounts, card payments, ACH processing 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 September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 35,210 $ - $ 13,165 $ - $ 48,375 Interest allocation - 13,165 (13,165) - - Interest expense 353 7,236 3,226 - 10,815 Net interest income (loss) 34,857 5,929 (3,226) - 37,560 Provision for loan and lease losses 650 - - - 650 Non-interest income 14,719 18,767 29 - 33,515 Non-interest expense 15,791 16,289 9,971 - 42,051 Income (loss) from continuing operations before taxes 33,135 8,407 (13,168) - 28,374 Income tax expense - - 7,975 - 7,975 Income (loss) from continuing operations 33,135 8,407 (21,143) - 20,399 Income from discontinued operations - - - 26 26 Net income (loss) $ 33,135 $ 8,407 $ (21,143) $ 26 $ 20,425 For the three months ended September 30, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 24,957 $ - $ 13,699 $ - $ 38,656 Interest allocation - 13,699 (13,699) - - Interest expense 1,760 5,723 541 - 8,024 Net interest income (loss) 23,197 7,976 (541) - 30,632 Provision for loan and lease losses 1,060 - - - 1,060 Non-interest income 75,282 15,639 49 - 90,970 Non-interest expense 14,462 15,720 7,117 - 37,299 Income (loss) from continuing operations before taxes 82,957 7,895 (7,609) - 83,243 Income tax expense - - 21,942 - 21,942 Income (loss) from continuing operations 82,957 7,895 (29,551) - 61,301 Loss from discontinued operations - - - (24) (24) Net income (loss) $ 82,957 $ 7,895 $ (29,551) $ (24) $ 61,277 For the nine months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 95,573 $ - $ 40,460 $ - $ 136,033 Interest allocation - 40,460 (40,460) - - Interest expense 1,087 23,947 4,890 - 29,924 Net interest income (loss) 94,486 16,513 (4,890) - 106,109 Provision for loan and lease losses 2,950 - - - 2,950 Non-interest income 27,794 55,733 102 - 83,629 Non-interest expense 47,196 50,211 23,392 - 120,799 Income (loss) from continuing operations before taxes 72,134 22,035 (28,180) - 65,989 Income tax expense - - 17,585 - 17,585 Income (loss) from continuing operations 72,134 22,035 (45,765) - 48,404 Income from discontinued operations - - - 1,301 1,301 Net income (loss) $ 72,134 $ 22,035 $ (45,765) $ 1,301 $ 49,705 For the nine months ended September 30, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 70,184 $ - $ 39,139 $ - $ 109,323 Interest allocation - 39,139 (39,139) - - Interest expense 3,569 14,247 1,267 - 19,083 Net interest income (loss) 66,615 24,892 (1,267) - 90,240 Provision for loan and lease losses 2,660 - - - 2,660 Non-interest income 88,600 48,395 110 - 137,105 Non-interest expense 43,212 48,602 21,844 - 113,658 Income (loss) from continuing operations before taxes 109,343 24,685 (23,001) - 111,027 Income tax expense - - 29,550 - 29,550 Income (loss) from continuing operations 109,343 24,685 (52,551) - 81,477 Income from discontinued operations - - - 81 81 Net income (loss) $ 109,343 $ 24,685 $ (52,551) $ 81 $ 81,558 September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,179,828 $ 65,586 $ 2,536,024 $ 162,098 $ 4,943,536 Total liabilities $ 241,891 $ 3,497,061 $ 720,410 $ - $ 4,459,362 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 | 9 Months Ended |
Sep. 30, 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 Philadelphia 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 (loss) from discontinued operations for the three and nine months ended September 30, 2019 and 2018 (in thousands). For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Interest income $ 1,609 $ 2,295 $ 5,293 $ 6,888 Interest expense - - - - Net interest income 1,609 2,295 5,293 6,888 Non-interest income 9 14 33 883 Non-interest expense 1,467 2,679 3,451 8,035 Income (loss) before taxes 151 (370) 1,875 (264) Income tax expense (benefit) 125 (346) 574 (345) Net income (loss) $ 26 $ (24) $ 1,301 $ 81 September 30, December 31, 2019 2018 Loans, net $ 136,109 $ 170,662 Other real estate owned 25,989 27,169 Total assets $ 162,098 $ 197,831 Non-interest expense included fair value adjustments of $0 for the three and nine months ended September 30, 2019 and $427,000 and $1.4 million, respectively , for the three and nine months ended September 30, 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. These credit and collateral related assumptions are subject to uncertainty. 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 , $162.1 million of loans and other real estate owned remain in assets held-for- sale on the September 30, 2019 consolidated balance sheet as a result of loan sales, principal paydowns and fair value charges as of September 30, 2019. The Company is attempting to dispose of those remaining loans and other real estate owned. Additionally, the consolidated balance sheet reflects $49.4 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 | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company evaluated its September 30, 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) | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The financial statements of the Company, as of September 30, 2019 and for the three and nine month periods ended September 30, 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 nine month period ended September 30, 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 (ASC) 606 include prepaid and debit 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 and debit 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-of-use of an underlying asset for the lease term and lease liabilities 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) | 9 Months Ended |
Sep. 30, 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 3.38 - Exercised - - - - Expired - - - - Forfeited - - - - Outstanding at September 30, 2019 1,341,604 $ 8.25 3.33 $ 2,280,348 Exercisable at September 30, 2019 1,201,500 $ 8.32 2.80 $ 1,957,510 |
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 2.22 Vested (464,430) 8.21 Forfeited (29,986) 8.95 Outstanding at September 30, 2019 1,287,352 $ 8.87 1.90 |
Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model | September 30, 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) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | For the three months ended September 30, 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 $ 20,399 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,399 57,413,297 $ 0.36 For the three months ended September 30, 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 $ 26 56,907,815 $ - Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 26 57,413,297 $ - For the three months ended September 30, 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 $ 20,425 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,425 57,413,297 $ 0.36 Stock options for 984,104 shares , exercisable at prices between $6.75 and $8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per share computation because the exercise price per share was less than the average market price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 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 $ 48,404 56,712,084 $ 0.85 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 48,404 57,152,371 $ 0.85 For the nine months ended September 30, 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 $ 1,301 56,712,084 $ 0.02 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 1,301 57,152,371 $ 0.02 For the nine months ended September 30, 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 $ 49,705 56,712,084 $ 0.87 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 49,705 57,152,371 $ 0.87 Stock options for 984,104 shares , exercisable at prices between $6.75 and $8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per share computation shares because the exercise price per share was less than the average ma rket price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 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 $ 61,301 56,442,222 $ 1.09 Effect of dilutive securities Common stock options and restricted stock units - 661,079 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 61,301 57,103,301 $ 1.07 For the three months ended September 30, 2018 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic loss per share from discontinued operations Net loss available to common shareholders $ (24) 56,442,222 $ - Effect of dilutive securities Common stock options and restricted stock units - 661,079 - Diluted loss per share Net loss available to common shareholders $ (24) 57,103,301 $ - For the three months ended September 30, 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 $ 61,277 56,442,222 $ 1.09 Effect of dilutive securities Common stock options and restricted stock units - 661,079 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 61,277 57,103,301 $ 1.07 Stock options for 136,500 shares, exercisable $10.45 per share, were outstanding at September 30, 2018, but were not included in the dilutive shares because the exercise price per share was greater than the average market price. For the nine months ended September 30, 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 $ 81,477 56,309,390 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units - 775,454 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 81,477 57,084,844 $ 1.43 For the nine months ended September 30, 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 $ 81 56,309,390 $ - Effect of dilutive securities Common stock options and restricted stock units - 775,454 - Diluted earnings per share Net earnings available to common shareholders $ 81 57,084,844 $ - For the nine months ended September 30, 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 $ 81,558 56,309,390 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units - 775,454 (0.02) Diluted earnings per share Net earnings available to common shareholders $ 81,558 57,084,844 $ 1.43 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities [Abstract] | |
Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity | Available-for-sale September 30, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 53,479 $ 1,198 $ (149) $ 54,528 Asset-backed securities * 259,516 225 (733) 259,008 Tax-exempt obligations of states and political subdivisions 6,173 137 - 6,310 Taxable obligations of states and political subdivisions 60,052 2,498 - 62,550 Residential mortgage-backed securities 349,909 4,154 (1,105) 352,958 Collateralized mortgage obligation securities 236,468 2,566 (200) 238,834 Commercial mortgage-backed securities 403,542 5,525 (818) 408,249 $ 1,369,139 $ 16,303 $ (3,005) $ 1,382,437 September 30, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 45,776 $ 22 $ (415) $ 45,383 Collateralized loan obligation securities 210,869 199 (318) 210,750 Other 2,871 4 - 2,875 $ 259,516 $ 225 $ (733) $ 259,008 Held-to-maturity September 30, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,206 $ - $ (2,060) $ 7,146 Other debt securities - pooled 75,193 725 - 75,918 $ 84,399 $ 725 $ (2,060) $ 83,064 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 $ 6,877 $ 6,879 $ - $ - Due after one year through five years 73,153 74,685 - - Due after five years through ten years 248,936 254,860 - - Due after ten years 1,040,173 1,046,013 84,399 83,064 $ 1,369,139 $ 1,382,437 $ 84,399 $ 83,064 |
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 3 $ 3,074 $ (5) $ 4,473 $ (144) $ 7,547 $ (149) Asset-backed securities 27 136,446 (538) 13,541 (195) 149,987 (733) Residential mortgage-backed securities 63 51,011 (131) 81,167 (974) 132,178 (1,105) Collateralized mortgage obligation securities 21 25,706 (33) 20,232 (167) 45,938 (200) Commercial mortgage-backed securities 5 43,979 (247) 24,297 (571) 68,276 (818) Total temporarily impaired investment securities 119 $ 260,216 $ (954) $ 143,710 $ (2,051) $ 403,926 $ (3,005) 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 $ - $ - $ 7,146 $ (2,060) $ 7,146 $ (2,060) Total temporarily impaired investment securities 1 $ - $ - $ 7,146 $ (2,060) $ 7,146 $ (2,060) 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) | 9 Months Ended |
Sep. 30, 2019 | |
Loans [Abstract] | |
Major Classifications Of Loans | September 30, December 31, 2019 2018 SBL non-real estate $ 84,181 $ 76,340 SBL commercial mortgage 209,008 165,406 SBL construction 38,116 21,636 Small business loans * 331,305 263,382 Direct lease financing 412,755 394,770 SBLOC / IBLOC ** 920,463 785,303 Other specialty lending 3,167 31,836 Other consumer loans *** 6,388 16,302 1,674,078 1,491,593 Unamortized loan fees and costs 9,299 10,383 Total loans, net of deferred loan fees and costs $ 1,683,377 $ 1,501,976 September 30, December 31, 2019 2018 SBL loans, including deferred fees and costs of $6,135 and $7,478 for September 30, 2019 and December 31, 2018, respectively $ 337,440 $ 270,860 SBL loans included in held-for-sale 222,007 199,977 Total small business loans $ 559,447 $ 470,837 * The preceding table shows small business loans (SBL) and SBL held-for-sale at the dates indicated (in thousands). While the majority of SBL are comprised of SBA loans, SBL also includes $16,953,000 of non-SBA loans as of September 30, 2019 and none at December 31, 2018. ** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. *** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $771,000 and $7.2 million at September 30, 2019 and December 31, 2018, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for loan and lease losses. |
Impaired Loans | September 30, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 352 $ 2,478 $ - $ 262 $ 4 SBL commercial mortgage - - - - - SBL construction - - - 355 - Direct lease financing 288 288 - 381 9 Consumer - home equity 495 495 - 1,329 7 With an allowance recorded SBL non-real estate 3,898 3,898 (3,037) 3,955 22 SBL commercial mortgage 458 458 (71) 458 - SBL construction 711 711 (35) 178 - Direct lease financing 136 136 (136) 305 16 Consumer - home equity 1,220 1,220 (204) 400 - Total SBL non-real estate 4,250 6,376 (3,037) 4,217 26 SBL commercial mortgage 458 458 (71) 458 - SBL construction 711 711 (35) 533 - Direct lease financing 424 424 (136) 686 25 Consumer - home equity 1,715 1,715 (204) 1,729 7 $ 7,558 $ 9,684 $ (3,483) $ 7,623 $ 58 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 175 $ 1,469 $ - $ 334 $ - SBL commercial mortgage - - - - - Direct lease financing 437 548 - 425 28 Consumer - home equity 1,612 1,612 - 1,648 10 With an allowance recorded SBL non-real estate 3,541 3,541 (2,806) 2,816 70 SBL commercial mortgage 458 458 (71) 505 - Direct lease financing 434 434 (145) 617 66 Consumer - home equity 129 129 (17) 26 - Total SBL non-real estate 3,716 5,010 (2,806) 3,150 70 SBL 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 | September 30, December 31, 2019 2018 Non-accrual loans SBL non-real estate $ 3,803 $ 2,590 SBL commercial mortgage 458 458 SBL construction 711 - Consumer 1,448 1,468 Total non-accrual loans 6,420 4,516 Loans past due 90 days or more and still accruing 2,788 954 Total non-performing loans 9,208 5,470 Other real estate owned - - Total non-performing assets $ 9,208 $ 5,470 |
Loans Modified And Considered Troubled Debt Restructurings | September 30, 2019 December 31, 2018 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 6 $ 1,274 $ 1,274 5 $ 1,564 $ 1,564 Direct lease financing 2 423 423 3 870 870 Consumer 2 495 495 2 513 513 Total 10 $ 2,192 $ 2,192 10 $ 2,947 $ 2,947 |
Loans Modified As Troubled Debt Restructurings | September 30, 2019 December 31, 2018 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ - $ 60 $ 1,214 $ - $ 85 $ 1,479 Direct lease financing - 136 287 - 434 436 Consumer - - 495 - - 513 Total $ - $ 196 $ 1,996 $ - $ 519 $ 2,428 |
Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted | Number Pre-modification recorded investment SBL non-real estate 1 $ 660 Total 1 $ 660 |
Changes In Allowance For Loan And Lease Losses By Loan Category | September 30, 2019 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2019 $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs (995) - - (391) - - (3) - (1,389) Recoveries 94 - - 51 - - 1 - 146 Provision (credit) 1,595 315 141 676 118 (48) 125 28 2,950 Ending balance $ 5,330 $ 1,256 $ 391 $ 2,361 $ 511 $ 12 $ 231 $ 268 $ 10,360 Ending balance: Individually evaluated for impairment $ 3,037 $ 71 $ 35 $ 136 $ - $ - $ 204 $ - $ 3,483 Ending balance: Collectively evaluated for impairment $ 2,293 $ 1,185 $ 356 $ 2,225 $ 511 $ 12 $ 27 $ 268 $ 6,877 Loans: Ending balance $ 84,181 $ 209,008 $ 38,116 $ 412,755 $ 920,463 $ 3,167 $ 6,388 $ 9,299 $ 1,683,377 Ending balance: Individually evaluated for impairment $ 4,250 $ 458 $ 711 $ 424 $ - $ - $ 1,715 $ - $ 7,558 Ending balance: Collectively evaluated for impairment $ 79,931 $ 208,550 $ 37,405 $ 412,331 $ 920,463 $ 3,167 $ 4,673 $ 9,299 $ 1,675,819 December 31, 2018 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2018 $ 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 September 30, 2018 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2018 $ 3,145 $ 1,120 $ 136 $ 1,495 $ 365 $ 57 $ 581 $ 197 $ 7,096 Charge-offs (1,079) (157) - (532) - - (20) - (1,788) Recoveries 47 13 - 64 - - - - 124 Provision (credit) 1,434 245 50 929 24 19 (44) 3 2,660 Ending balance $ 3,547 $ 1,221 $ 186 $ 1,956 $ 389 $ 76 $ 517 $ 200 $ 8,092 Ending balance: Individually evaluated for impairment $ 1,844 $ 71 $ - $ 195 $ - $ - $ - $ - $ 2,110 Ending balance: Collectively evaluated for impairment $ 1,703 $ 1,150 $ 186 $ 1,761 $ 389 $ 76 $ 517 $ 200 $ 5,982 Loans: Ending balance $ 74,408 $ 166,432 $ 17,978 $ 395,976 $ 778,552 $ 40,799 $ 12,172 $ 10,456 $ 1,496,773 Ending balance: Individually evaluated for impairment $ 2,972 $ 458 $ - $ 1,125 $ - $ - $ 1,618 $ - $ 6,173 Ending balance: Collectively evaluated for impairment $ 71,436 $ 165,974 $ 17,978 $ 394,851 $ 778,552 $ 40,799 $ 10,554 $ 10,456 $ 1,490,600 |
Delinquent Loans By Loan Category | September 30, 2019 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 141 $ - $ - $ 3,803 $ 3,944 $ 80,237 $ 84,181 SBL commercial mortgage - - - 458 458 208,550 209,008 SBL construction - - - 711 711 37,405 38,116 Direct lease financing 1,898 930 2,788 - 5,616 407,139 412,755 SBLOC / IBLOC 2,561 - - - 2,561 917,902 920,463 Other specialty lending - - - - - 3,167 3,167 Consumer - other - - - - - 1,037 1,037 Consumer - home equity - - - 1,448 1,448 3,903 5,351 Unamortized loan fees and costs - - - - - 9,299 9,299 $ 4,600 $ 930 $ 2,788 $ 6,420 $ 14,738 $ 1,668,639 $ 1,683,377 December 31, 2018 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 346 $ 125 $ - $ 2,590 $ 3,061 $ 73,279 $ 76,340 SBL commercial mortgage - - - 458 458 164,948 165,406 SBL 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 | September 30, 2019 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBL non-real estate * $ 64,507 $ 1,948 $ 4,577 $ - $ - $ 9,148 $ 4,001 $ 84,181 SBL commercial mortgage * 194,949 268 5,011 - - 7,889 891 209,008 SBL construction 37,284 - 711 - - - 121 38,116 Direct lease financing 397,612 - 9,535 - - 2,256 3,352 412,755 SBLOC / IBLOC 865,695 - - - - - 54,768 920,463 Other specialty lending 3,167 - - - - - - 3,167 Consumer 3,351 - 1,448 - - - 1,589 6,388 Unamortized loan fees and costs - - - - - - 9,299 9,299 $ 1,566,565 $ 2,216 $ 21,282 $ - $ - $ 19,293 $ 74,021 $ 1,683,377 December 31, 2018 Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBL non-real estate $ 67,809 $ 1,641 $ 4,517 $ - $ - $ 347 $ 2,026 $ 76,340 SBL commercial mortgage 158,667 273 458 - - 5,498 510 165,406 SBL 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) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Amount And Estimated Fair Value Of Assets And Liabilities | September 30, 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 $ 1,382,437 $ 1,382,437 $ - $ 1,260,867 $ 121,570 Investment securities, held-to-maturity 84,399 83,064 - 75,918 7,146 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 4,342 4,342 - - 4,342 Commercial loans held-for-sale 489,240 489,240 - - 489,240 Loans, net of deferred loan fees and costs 1,683,377 1,681,081 - - 1,681,081 Investment in unconsolidated entity 49,431 49,431 - - 49,431 Assets held-for-sale from discontinued operations 162,098 162,098 - - 162,098 Demand and interest checking 3,844,747 3,844,747 - 3,844,747 - Savings and money market 25,950 25,950 - 25,950 - Time deposits 475,000 475,000 - 475,000 - Subordinated debentures 13,401 10,094 - - 10,094 Securities sold under agreements to repurchase 93 93 93 - - Interest rate swaps, liability 790 790 - 790 - 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 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Beginning balance $ 24,390 $ 40,644 $ 688,471 $ 503,316 Transfers into level 3 100,664 - - - Transfers out of level 3 - (74,355) - - Total gains or (losses) (realized/unrealized) Included in earnings - - 26,790 19,850 Included in other comprehensive loss (43) (688) - - Purchases, issuances, sales and settlements Purchases - 62,076 - - Issuances - - 1,099,719 866,303 Sales - - (1,325,740) (700,998) Settlements (3,441) (3,287) - - Ending balance $ 121,570 $ 24,390 $ 489,240 $ 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. $ - $ - $ 1,713 $ (922) The Company’s Level 3 asset activity for the categories shown 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 September 30, 2019 December 31, 2018 September 30, 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) (123) 352 Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 922 1,664 Sales - - (6,671) (35,000) Settlements (9,842) (11,511) (27,907) (62,754) Charge-offs - - (1,954) (10,744) Ending balance $ 49,431 $ 59,273 $ 162,098 $ 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) $ (123) $ 352 |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 September 30, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 54,528 $ - $ 54,528 $ - Asset-backed securities 259,008 - 259,008 - Obligations of states and political subdivisions 68,860 - 68,860 - Residential mortgage-backed securities 352,958 - 352,958 - Collateralized mortgage obligation securities 238,834 - 238,834 - Commercial mortgage-backed securities 408,249 - 286,679 121,570 Total investment securities available-for-sale 1,382,437 - 1,260,867 121,570 Commercial loans held-for-sale 489,240 - - 489,240 Investment in unconsolidated entity 49,431 - - 49,431 Assets held-for-sale from discontinued operations 162,098 - - 162,098 Interest rate swaps, liability 790 - 790 - $ 2,082,416 $ - $ 1,260,077 $ 822,339 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 September 30, 2019 December 31, 2018 Valuation techniques Unobservable inputs September 30, 2019 December 31, 2018 Investment securities, available-for-sale $ 121,570 $ 24,390 Discounted cash flow Discount rate 4.00% - 7.45% 6.55% Investment securities, held-to-maturity 7,146 7,278 Discounted cash flow Discount rate 8.28% 8.80% Federal Home Loan Bank and Atlantic 4,342 1,113 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and 1,681,081 1,503,780 Discounted cash flow Discount rate 3.70% - 7.44% 4.22% - 6.93% costs Commercial - SBA 222,007 199,977 Traders' pricing Offered quotes $98.75 - $110 $99.125 - $110 Commercial - fixed 92,907 95,307 Discounted cash flow Discount rate 4.10% - 7.06% 5.23% - 6.92% Commercial - floating 174,326 393,187 Discounted cash flow Discount rate 4.06% - 6.65% 5.41% - 7.75% Commercial loans held-for-sale 489,240 688,471 Investment in unconsolidated entity 49,431 59,273 Discounted cash flow Discount rate 5.87% 6.30% Default rate 1.00% 1.00% Assets held-for-sale from discontinued 162,098 197,831 Discounted cash flow Discount rate, 3.54% - 7.78% 4.26% - 8.36% operations Credit analysis Subordinated debentures 10,094 9,975 Discounted cash flow Discount rate 8.28% 8.81% |
Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 September 30, 2019 (Level 1) (Level 2) (Level 3) Impaired loans - collateral dependent (1) $ 4,075 $ - $ - $ 4,075 Intangible assets 2,698 - - 2,698 $ 6,773 $ - $ - $ 6,773 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) | 9 Months Ended |
Sep. 30, 2019 | |
Derivatives [Abstract] | |
Derivatives | September 30, 2019 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12% 2.29% 103 August 17, 2025 2,500 2.27% 2.12% (108) December 23, 2025 6,800 2.16% 2.16% (262) December 24, 2025 8,200 2.17% 2.13% (325) January 28, 2026 3,000 1.87% 2.26% (65) July 20, 2026 6,300 1.44% 2.28% 30 December 12, 2026 3,200 2.26% 2.13% (163) Total $ 40,300 $ (790) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Summary of Direct Lease Financing | Remaining 2019 $ 40,096 2020 117,691 2021 86,382 2022 51,675 2023 26,048 2024 and thereafter 9,394 Total undiscounted cash flows 331,286 Residual value * 125,938 Difference between undiscounted cash flows and discounted cash flows (44,469) Present value of lease payments recorded as lease receivables $ 412,755 * Of the $125,938,000, $27,665,000 is not guaranteed by the lessee. |
Segment Financials (Tables)
Segment Financials (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Financials [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | For the three months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 35,210 $ - $ 13,165 $ - $ 48,375 Interest allocation - 13,165 (13,165) - - Interest expense 353 7,236 3,226 - 10,815 Net interest income (loss) 34,857 5,929 (3,226) - 37,560 Provision for loan and lease losses 650 - - - 650 Non-interest income 14,719 18,767 29 - 33,515 Non-interest expense 15,791 16,289 9,971 - 42,051 Income (loss) from continuing operations before taxes 33,135 8,407 (13,168) - 28,374 Income tax expense - - 7,975 - 7,975 Income (loss) from continuing operations 33,135 8,407 (21,143) - 20,399 Income from discontinued operations - - - 26 26 Net income (loss) $ 33,135 $ 8,407 $ (21,143) $ 26 $ 20,425 For the three months ended September 30, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 24,957 $ - $ 13,699 $ - $ 38,656 Interest allocation - 13,699 (13,699) - - Interest expense 1,760 5,723 541 - 8,024 Net interest income (loss) 23,197 7,976 (541) - 30,632 Provision for loan and lease losses 1,060 - - - 1,060 Non-interest income 75,282 15,639 49 - 90,970 Non-interest expense 14,462 15,720 7,117 - 37,299 Income (loss) from continuing operations before taxes 82,957 7,895 (7,609) - 83,243 Income tax expense - - 21,942 - 21,942 Income (loss) from continuing operations 82,957 7,895 (29,551) - 61,301 Loss from discontinued operations - - - (24) (24) Net income (loss) $ 82,957 $ 7,895 $ (29,551) $ (24) $ 61,277 For the nine months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 95,573 $ - $ 40,460 $ - $ 136,033 Interest allocation - 40,460 (40,460) - - Interest expense 1,087 23,947 4,890 - 29,924 Net interest income (loss) 94,486 16,513 (4,890) - 106,109 Provision for loan and lease losses 2,950 - - - 2,950 Non-interest income 27,794 55,733 102 - 83,629 Non-interest expense 47,196 50,211 23,392 - 120,799 Income (loss) from continuing operations before taxes 72,134 22,035 (28,180) - 65,989 Income tax expense - - 17,585 - 17,585 Income (loss) from continuing operations 72,134 22,035 (45,765) - 48,404 Income from discontinued operations - - - 1,301 1,301 Net income (loss) $ 72,134 $ 22,035 $ (45,765) $ 1,301 $ 49,705 For the nine months ended September 30, 2018 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 70,184 $ - $ 39,139 $ - $ 109,323 Interest allocation - 39,139 (39,139) - - Interest expense 3,569 14,247 1,267 - 19,083 Net interest income (loss) 66,615 24,892 (1,267) - 90,240 Provision for loan and lease losses 2,660 - - - 2,660 Non-interest income 88,600 48,395 110 - 137,105 Non-interest expense 43,212 48,602 21,844 - 113,658 Income (loss) from continuing operations before taxes 109,343 24,685 (23,001) - 111,027 Income tax expense - - 29,550 - 29,550 Income (loss) from continuing operations 109,343 24,685 (52,551) - 81,477 Income from discontinued operations - - - 81 81 Net income (loss) $ 109,343 $ 24,685 $ (52,551) $ 81 $ 81,558 September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 2,179,828 $ 65,586 $ 2,536,024 $ 162,098 $ 4,943,536 Total liabilities $ 241,891 $ 3,497,061 $ 720,410 $ - $ 4,459,362 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) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Financial Results Of The Commercial Lending Business Included In Net Income (Loss) From Discontinued Operations | For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Interest income $ 1,609 $ 2,295 $ 5,293 $ 6,888 Interest expense - - - - Net interest income 1,609 2,295 5,293 6,888 Non-interest income 9 14 33 883 Non-interest expense 1,467 2,679 3,451 8,035 Income (loss) before taxes 151 (370) 1,875 (264) Income tax expense (benefit) 125 (346) 574 (345) Net income (loss) $ 26 $ (24) $ 1,301 $ 81 September 30, December 31, 2019 2018 Loans, net $ 136,109 $ 170,662 Other real estate owned 25,989 27,169 Total assets $ 162,098 $ 197,831 |
Structure of Company (Details)
Structure of Company (Details) | 9 Months Ended |
Sep. 30, 2019item | |
Structure Of Company [Abstract] | |
Number of specialty lending lines | 4 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($)$ / sharesitemshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation plans | item | 3 | |
Unrecognized compensation cost related to unvested awards under share-based plans | $ | $ 8.8 | |
Cost expected to be recognized over a weighted average period | 1 year 10 months 24 days | |
Related compensation expense | $ | $ 4.4 | $ 3 |
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) | 23,125 | |
Total intrinsic value of options exercised | $ | $ 4.3 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ | $ 6.2 | |
Granted (in shares) | 930,831 | 507,792 |
Granted (in dollars per share) | $ / shares | $ 8.57 | $ 11.07 |
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 | 2 years 9 months 18 days |
Granted (in shares) | 863,331 | 440,292 |
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 | 1 year |
Granted (in shares) | 67,500 | 67,500 |
Restricted Stock Units (RSUs) Portion 1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 930,831 | |
Restricted Stock Units And Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of restricted stock units vested | $ | $ 3.8 | $ 3.1 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary Of Status Of Company's Equity Compensation Plans) (Details) - Stock Options [Member] - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shares [Roll Forward] | |||
Granted (in shares) | 65,104 | 0 | |
Exercised (in shares) | (23,125) | ||
Aggregate intrinsic value [Abstract] | |||
Exercised | $ 4,300,000 | ||
Equity Compensations Plans [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) | 1,201,500 | ||
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) | $ 8.32 | ||
Weighted-average remaining contractual term (years) [Abstract] | |||
Granted | 3 years 4 months 17 days | ||
Outstanding, end of period | 3 years 3 months 29 days | 3 years 9 months 7 days | |
Exercisable, end of period | 2 years 9 months 18 days | ||
Aggregate intrinsic value [Abstract] | |||
Outstanding, beginning of period | $ 511,200 | ||
Granted | |||
Exercised | |||
Expired | |||
Forfeited | |||
Outstanding, end of period | 2,280,348 | $ 511,200 | |
Exercisable, end of period | $ 1,957,510 |
Stock-based Compensation (Sum_2
Stock-based Compensation (Summary Of Status Of Company’s Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 850,937 | ||
Granted (in shares) | 930,831 | 507,792 | |
Vested (in shares) | (464,430) | ||
Forfeited (in shares) | (29,986) | ||
Outstanding, end of period (in shares) | 1,287,352 | 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 | $ 11.07 | |
Vested (in dollars per share) | 8.21 | ||
Forfeited (in dollars per share) | 8.95 | ||
Outstanding, end of period (in dollars per share) | $ 8.87 | $ 8.84 | |
Average remaining contractual term (years) [Abstract] | |||
Outstanding | 1 year 10 months 24 days | 1 year 5 months 9 days | |
Granted | 2 years 2 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) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (in hundredths) | 2.63% | |
Expected dividend yield (in hundredths) | ||
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Minimum exercisable prices (in dollars per share) | $ 6.75 | $ 6.75 | $ 6.75 | |
Maximum exercisable prices (in dollars per share) | $ 8.57 | $ 10.45 | $ 8.57 | $ 10.45 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities included in computation of earnings per share | 984,104 | 984,104 | ||
Antidilutive securities excluded from computation of earnings per share | 357,500 | 357,500 | ||
Stock Options [Member] | Exercisable Price $10.45 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities included in computation of earnings per share | 136,500 | 136,500 | ||
Stock Options [Member] | Exercisable Price $6.75-$10.45 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities included in computation of earnings per share | 1,429,500 | 1,429,500 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income (numerator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders | $ 20,425 | $ 11,350 | $ 17,930 | $ 61,277 | $ 6,141 | $ 14,140 | $ 49,705 | $ 81,558 |
Diluted earnings per share, Net earnings available to common shareholders | $ 20,425 | $ 61,277 | $ 49,705 | $ 81,558 | ||||
Shares (denominator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,907,815 | 56,442,222 | 56,712,084 | 56,309,390 | ||||
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 505,482 | 661,079 | 440,287 | 775,454 | ||||
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 57,413,297 | 57,103,301 | 57,152,371 | 57,084,844 | ||||
Per share amount [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.36 | $ 1.09 | $ 0.87 | $ 1.45 | ||||
Effect of dilutive securities, Common stock options and restricted units (in dollars per share) | (0.02) | (0.02) | ||||||
Net income per share - diluted | $ 0.36 | $ 1.07 | $ 0.87 | $ 1.43 | ||||
Continuing Operations [Member] | ||||||||
Income (numerator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders | $ 20,399 | $ 61,301 | $ 48,404 | $ 81,477 | ||||
Diluted earnings per share, Net earnings available to common shareholders | $ 20,399 | $ 61,301 | $ 48,404 | $ 81,477 | ||||
Shares (denominator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,907,815 | 56,442,222 | 56,712,084 | 56,309,390 | ||||
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 505,482 | 661,079 | 440,287 | 775,454 | ||||
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 57,413,297 | 57,103,301 | 57,152,371 | 57,084,844 | ||||
Per share amount [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.36 | $ 1.09 | $ 0.85 | $ 1.45 | ||||
Effect of dilutive securities, Common stock options and restricted units (in dollars per share) | (0.02) | (0.02) | ||||||
Net income per share - diluted | $ 0.36 | $ 1.07 | $ 0.85 | $ 1.43 | ||||
Discontinued Operations [Member] | ||||||||
Income (numerator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders | $ 26 | $ (24) | $ 1,301 | $ 81 | ||||
Diluted earnings per share, Net earnings available to common shareholders | $ 26 | $ (24) | $ 1,301 | $ 81 | ||||
Shares (denominator) [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in shares) | 56,907,815 | 56,442,222 | 56,712,084 | 56,309,390 | ||||
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 505,482 | 661,079 | 440,287 | 775,454 | ||||
Diluted earnings per share, Net earnings available to common shareholders (in shares) | 57,413,297 | 57,103,301 | 57,152,371 | 57,084,844 | ||||
Per share amount [Abstract] | ||||||||
Basic earnings per share, Net earnings available to common shareholders (in dollars per share) | $ 0.02 | |||||||
Net income per share - diluted | $ 0.02 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 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 | $ 4,300 | $ 1,100 |
Amortized cost of securities | 84,399 | 84,432 |
Book value | 84,399 | 84,432 |
Fair value | $ 83,064 | 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 | $ 258,900 | 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 | $ 165,000 | 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 | $ 9,206 | 9,168 |
Book value | 9,200 | |
Fair value | $ 7,146 | $ 7,278 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale [Abstract] | ||
Amortized cost | $ 1,369,139 | $ 1,254,899 |
Gross unrealized gains | 16,303 | 2,228 |
Gross unrealized losses | (3,005) | (20,803) |
Fair value | 1,382,437 | 1,236,324 |
Held-to-maturity [Abstract] | ||
Amortized cost | 84,399 | 84,432 |
Gross unrealized gains | 725 | 849 |
Gross unrealized losses | (2,060) | (1,890) |
Fair value | 83,064 | 83,391 |
U.S. Government Agency Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 53,479 | 54,095 |
Gross unrealized gains | 1,198 | 146 |
Gross unrealized losses | (149) | (879) |
Fair value | 54,528 | 53,362 |
Asset-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 259,516 | 189,850 |
Gross unrealized gains | 225 | 104 |
Gross unrealized losses | (733) | (1,352) |
Fair value | 259,008 | 188,602 |
Federally insured student loan securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 45,776 | 59,705 |
Gross unrealized gains | 22 | 87 |
Gross unrealized losses | (415) | (283) |
Fair value | 45,383 | 59,509 |
Collateralized Loan Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 210,869 | 125,045 |
Gross unrealized gains | 199 | |
Gross unrealized losses | (318) | (1,069) |
Fair value | 210,750 | 123,976 |
Asset Backed Securities Other [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 2,871 | 5,100 |
Gross unrealized gains | 4 | 17 |
Fair value | 2,875 | 5,117 |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 6,173 | 7,546 |
Gross unrealized gains | 137 | 50 |
Gross unrealized losses | (45) | |
Fair value | 6,310 | 7,551 |
Taxable obligations of states and political subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 60,052 | 60,152 |
Gross unrealized gains | 2,498 | 803 |
Gross unrealized losses | (520) | |
Fair value | 62,550 | 60,435 |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 349,909 | 377,199 |
Gross unrealized gains | 4,154 | 648 |
Gross unrealized losses | (1,105) | (8,106) |
Fair value | 352,958 | 369,741 |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 236,468 | 265,914 |
Gross unrealized gains | 2,566 | 287 |
Gross unrealized losses | (200) | (3,994) |
Fair value | 238,834 | 262,207 |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 403,542 | 300,143 |
Gross unrealized gains | 5,525 | 190 |
Gross unrealized losses | (818) | (5,907) |
Fair value | 408,249 | 294,426 |
Single Issuers [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 9,206 | 9,168 |
Gross unrealized losses | (2,060) | (1,890) |
Fair value | 7,146 | 7,278 |
Pooled [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 75,193 | 75,264 |
Gross unrealized gains | 725 | 849 |
Fair value | $ 75,918 | $ 76,113 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized cost [Abstract] | ||
Due before one year | $ 6,877 | |
Due after one year through five years | 73,153 | |
Due after five years through ten years | 248,936 | |
Due after ten years | 1,040,173 | |
Amortized cost | 1,369,139 | |
Available-for-sale, Fair value [Abstract] | ||
Due before one year | 6,879 | |
Due after one year through five years | 74,685 | |
Due after five years through ten years | 254,860 | |
Due after ten years | 1,046,013 | |
Fair value | 1,382,437 | $ 1,236,324 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due after ten years | 84,399 | |
Amortized cost | 84,399 | 84,432 |
Held-to-maturity, Fair value [Abstract] | ||
Due after ten years | 83,064 | |
Fair value | $ 83,064 | $ 83,391 |
Investment Securities (Availabl
Investment Securities (Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 119 | 249 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 260,216 | $ 294,474 |
12 months or longer, Fair Value | 143,710 | 739,664 |
Total, Fair Value | 403,926 | 1,034,138 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (954) | (3,323) |
12 months or longer, Unrealized losses | (2,051) | (17,480) |
Total, Unrealized losses | $ (3,005) | $ (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 | $ 7,146 | $ 7,278 |
Total, Fair Value | 7,146 | 7,278 |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (2,060) | (1,890) |
Total, Unrealized losses | $ (2,060) | $ (1,890) |
U.S. Government Agency Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 3 | 10 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 3,074 | $ 679 |
12 months or longer, Fair Value | 4,473 | 41,719 |
Total, Fair Value | 7,547 | 42,398 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (5) | (2) |
12 months or longer, Unrealized losses | (144) | (877) |
Total, Unrealized losses | $ (149) | $ (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 | $ 136,446 | $ 148,753 |
12 months or longer, Fair Value | 13,541 | 11,506 |
Total, Fair Value | 149,987 | 160,259 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (538) | (1,230) |
12 months or longer, Unrealized losses | (195) | (122) |
Total, Unrealized losses | $ (733) | $ (1,352) |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 3 | |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 3,625 | |
Total, Fair Value | 3,625 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (45) | |
Total, Unrealized losses | $ (45) | |
Taxable obligations of states and political subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 22 | |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 4,492 | |
12 months or longer, Fair Value | 35,599 | |
Total, Fair Value | 40,091 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (19) | |
12 months or longer, Unrealized losses | (501) | |
Total, Unrealized losses | $ (520) | |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 63 | 118 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 51,011 | $ 17,168 |
12 months or longer, Fair Value | 81,167 | 302,407 |
Total, Fair Value | 132,178 | 319,575 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (131) | (49) |
12 months or longer, Unrealized losses | (974) | (8,057) |
Total, Unrealized losses | $ (1,105) | $ (8,106) |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 21 | 44 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 25,706 | $ 1,522 |
12 months or longer, Fair Value | 20,232 | 193,355 |
Total, Fair Value | 45,938 | 194,877 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (33) | (3) |
12 months or longer, Unrealized losses | (167) | (3,991) |
Total, Unrealized losses | $ (200) | $ (3,994) |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 5 | 26 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 43,979 | $ 121,860 |
12 months or longer, Fair Value | 24,297 | 151,453 |
Total, Fair Value | 68,276 | 273,313 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (247) | (2,020) |
12 months or longer, Unrealized losses | (571) | (3,887) |
Total, Unrealized losses | $ (818) | $ (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 | $ 7,146 | $ 7,278 |
Total, Fair Value | 7,146 | 7,278 |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (2,060) | (1,890) |
Total, Unrealized losses | $ (2,060) | $ (1,890) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Prepayments percentage, loans | 15.00% | ||||||
Loans held for sale | $ 489,240,000 | $ 489,240,000 | $ 688,471,000 | ||||
Loans, amortized cost | 484,300,000 | 484,300,000 | |||||
Gains (losses) recognized from changes in fair value | 1,600,000 | $ (2,300,000) | |||||
Notes Receivable, Gross | 778,200,000 | $ 518,300,000 | $ 341,000,000 | $ 304,300,000 | 778,200,000 | 341,000,000 | |
Gain (Loss) on Securitization of Financial Assets | 13,700,000 | 10,800,000 | 9,000,000 | 11,700,000 | |||
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | $ 51,600,000 | $ 41,600,000 | $ 33,700,000 | $ 28,400,000 | 51,600,000 | 33,700,000 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate | 4.12% | 4.75% | 4.88% | 5.79% | |||
Demand deposit overdrafts reclassified as loan balances | $ 771,000 | 771,000 | 7,200,000 | ||||
Non-accrual leases | 0 | 0 | $ 0 | ||||
Interest which would have been earned on loans classified as non accrual | 356,000 | $ 188,000 | |||||
Commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings | 0 | $ 0 | |||||
Number of troubled debt restructured loans | loan | 10 | 10 | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 2,192,000 | $ 2,947,000 | |||||
Financing Receivable Troubled Debt Restructured Loans Reserves | 1,200,000 | 1,200,000 | |||||
Loans acquired with deteriorated credit quality | 0 | 0 | $ 0 | ||||
SBA Loan [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans acquired with deteriorated credit quality | $ 1,000,000 | $ 1,000,000 |
Loans (Major Classifications Of
Loans (Major Classifications Of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | ||
Major classifications of loans [Abstract] | |||||
Total loans, gross | $ 1,674,078 | $ 1,491,593 | |||
Unamortized loan fees and costs | 9,299 | 10,383 | |||
Total loans, net of deferred loan fees and costs | 1,683,377 | 1,501,976 | $ 1,496,773 | ||
SBL Non-Real Estate [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | 84,181 | 76,340 | |||
Total loans, net of deferred loan fees and costs | 84,181 | [1] | 76,340 | 74,408 | |
SBL Commercial Mortgage [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | 209,008 | 165,406 | |||
Total loans, net of deferred loan fees and costs | 209,008 | [1] | 165,406 | 166,432 | |
SBL Construction [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | 38,116 | 21,636 | |||
Total loans, net of deferred loan fees and costs | 38,116 | 21,636 | 17,978 | ||
Small Business Loans [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | [2] | 331,305 | 263,382 | ||
Direct Lease Financing [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | 412,755 | 394,770 | |||
Total loans, net of deferred loan fees and costs | 412,755 | 394,770 | 395,976 | ||
SBLOC/IBLOC [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | [3] | 920,463 | 785,303 | ||
Total loans, net of deferred loan fees and costs | 920,463 | 785,303 | 778,552 | ||
Other Specialty Lending [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | 3,167 | 31,836 | |||
Total loans, net of deferred loan fees and costs | 3,167 | 31,836 | $ 40,799 | ||
Consumer - other [Member] | |||||
Major classifications of loans [Abstract] | |||||
Total loans, gross | [4] | 6,388 | 16,302 | ||
Total loans, net of deferred loan fees and costs | $ 1,037 | $ 9,147 | |||
[1] | 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. | ||||
[2] | The preceding table shows small business loans (SBL) and SBL held-for-sale at the dates indicated (in thousands). While the majority of SBL are comprised of SBA loans, SBL also includes $16,953,000 of non-SBA loans as of September 30, 2019 and none at December 31, 2018. | ||||
[3] | Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. | ||||
[4] | Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $771,000 and $7.2 million at September 30, 2019 and December 31, 2018, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for loan and lease losses. |
Loans (Schedule Of Small Busine
Loans (Schedule Of Small Business Administation Loans and Held For Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans [Abstract] | ||
SBL loans, including deferred fees and costs of $6,135 and $7,478 for September 30, 2019 and December 31, 2018, respectively | $ 337,440 | $ 270,860 |
SBL loans included in held-for-sale | 222,007 | 199,977 |
Total small business loans | 559,447 | 470,837 |
Non-SBA loans | 16,953 | 16,953 |
SBL deferred fees and costs | $ 6,135 | $ 7,478 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
With an allowance recorded [Abstract] | ||
Related allowance | $ (3,500) | |
Total allowance recorded [Abstract] | ||
Recorded investment | 7,558 | $ 6,786 |
Unpaid principal balance | 9,684 | 8,191 |
Related allowance | (3,483) | (3,039) |
Average recorded investment | 7,623 | 6,371 |
Interest income recognized | 58 | 174 |
SBL Non-Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 352 | 175 |
Unpaid principal balance | 2,478 | 1,469 |
Average recorded investment | 262 | 334 |
Interest income recognized | 4 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 3,898 | 3,541 |
Unpaid principal balance | 3,898 | 3,541 |
Related allowance | (3,037) | (2,806) |
Average recorded investment | 3,955 | 2,816 |
Interest income recognized | 22 | 70 |
Total allowance recorded [Abstract] | ||
Recorded investment | 4,250 | 3,716 |
Unpaid principal balance | 6,376 | 5,010 |
Related allowance | (3,037) | (2,806) |
Average recorded investment | 4,217 | 3,150 |
Interest income recognized | 26 | 70 |
SBL 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 |
SBL Construction [Member] | ||
Without an allowance recorded [Abstract] | ||
Average recorded investment | 355 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 711 | |
Unpaid principal balance | 711 | |
Related allowance | (35) | |
Average recorded investment | 178 | |
Total allowance recorded [Abstract] | ||
Recorded investment | 711 | |
Unpaid principal balance | 711 | |
Related allowance | (35) | |
Average recorded investment | 533 | |
Direct Lease Financing [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 288 | 437 |
Unpaid principal balance | 288 | 548 |
Average recorded investment | 381 | 425 |
Interest income recognized | 9 | 28 |
With an allowance recorded [Abstract] | ||
Recorded investment | 136 | 434 |
Unpaid principal balance | 136 | 434 |
Related allowance | (136) | (145) |
Average recorded investment | 305 | 617 |
Interest income recognized | 16 | 66 |
Total allowance recorded [Abstract] | ||
Recorded investment | 424 | 871 |
Unpaid principal balance | 424 | 982 |
Related allowance | (136) | (145) |
Average recorded investment | 686 | 1,042 |
Interest income recognized | 25 | 94 |
Consumer - Home Equity [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 495 | 1,612 |
Unpaid principal balance | 495 | 1,612 |
Average recorded investment | 1,329 | 1,648 |
Interest income recognized | 7 | 10 |
With an allowance recorded [Abstract] | ||
Recorded investment | 1,220 | 129 |
Unpaid principal balance | 1,220 | 129 |
Related allowance | (204) | (17) |
Average recorded investment | 400 | 26 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,715 | 1,741 |
Unpaid principal balance | 1,715 | 1,741 |
Related allowance | (204) | (17) |
Average recorded investment | 1,729 | 1,674 |
Interest income recognized | $ 7 | $ 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 6,420 | $ 4,516 |
Loans past due 90 days or more and still accruing | 2,788 | 954 |
Total non-performing loans | 1,674,078 | 1,491,593 |
Total non-performing assets | 9,208 | 5,470 |
Nonperforming Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-performing loans | 9,208 | 5,470 |
Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 6,420 | 4,516 |
SBL Non-Real Estate [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 3,803 | 2,590 |
Total non-performing loans | 84,181 | 76,340 |
SBL Non-Real Estate [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 3,803 | 2,590 |
SBL Commercial Mortgage [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 458 | 458 |
Total non-performing loans | 209,008 | 165,406 |
SBL Commercial Mortgage [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 458 | 458 |
SBL Construction [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 711 | |
Total non-performing loans | 38,116 | 21,636 |
SBL Construction [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 711 | |
Consumer [Member] | Non-accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 1,448 | $ 1,468 |
Loans (Loans Modified And Consi
Loans (Loans Modified And Considered Troubled Debt Restructurings) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 10 | 10 |
Pre-modification recorded investment | $ 2,192 | $ 2,947 |
Post-modification recorded investment | $ 2,192 | $ 2,947 |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 6 | 5 |
Pre-modification recorded investment | $ 1,274 | $ 1,564 |
Post-modification recorded investment | $ 1,274 | $ 1,564 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 2 | 3 |
Pre-modification recorded investment | $ 423 | $ 870 |
Post-modification recorded investment | $ 423 | $ 870 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 2 | 2 |
Pre-modification recorded investment | $ 495 | $ 513 |
Post-modification recorded investment | $ 495 | $ 513 |
Loans (Loans Modified As Troubl
Loans (Loans Modified As Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | $ 196 | $ 519 |
Combined rate and maturity | 1,996 | 2,428 |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 60 | 85 |
Combined rate and maturity | 1,214 | 1,479 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 136 | 434 |
Combined rate and maturity | 287 | 436 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | $ 495 | $ 513 |
Loans (Summary Of Restructured
Loans (Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |
Number | loan | 1 |
Pre-modification recorded investment | $ | $ 660 |
SBL Non-Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number | loan | 1 |
Pre-modification recorded investment | $ | $ 660 |
Loans (Changes In Allowance For
Loans (Changes In Allowance For Loan And Lease Losses By Loan Category) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 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 | (1,389) | (1,788) | (2,163) | |
Recoveries | 146 | 124 | 135 | |
Provision (credit) | 2,950 | 2,660 | 3,585 | |
Ending balance | 10,360 | 8,092 | 8,653 | |
Ending balance: Individually evaluated for impairment | 3,483 | 2,110 | 3,039 | |
Ending balance: Collectively evaluated for impairment | 6,877 | 5,982 | 5,614 | |
Loans [Abstract] | ||||
Ending balance | 1,683,377 | 1,496,773 | 1,501,976 | |
Ending balance: Individually evaluated for impairment | 7,558 | 6,173 | 6,786 | |
Ending balance: Collectively evaluated for impairment | 1,675,819 | 1,490,600 | 1,495,190 | |
SBL 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 | (995) | (1,079) | (1,348) | |
Recoveries | 94 | 47 | 57 | |
Provision (credit) | 1,595 | 1,434 | 2,782 | |
Ending balance | 5,330 | 3,547 | 4,636 | |
Ending balance: Individually evaluated for impairment | 3,037 | 1,844 | 2,806 | |
Ending balance: Collectively evaluated for impairment | 2,293 | 1,703 | 1,830 | |
Loans [Abstract] | ||||
Ending balance | 84,181 | [1] | 74,408 | 76,340 |
Ending balance: Individually evaluated for impairment | 4,250 | 2,972 | 3,716 | |
Ending balance: Collectively evaluated for impairment | 79,931 | 71,436 | 72,624 | |
SBL 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 | 13 | 13 | ||
Provision (credit) | 315 | 245 | (35) | |
Ending balance | 1,256 | 1,221 | 941 | |
Ending balance: Individually evaluated for impairment | 71 | 71 | 71 | |
Ending balance: Collectively evaluated for impairment | 1,185 | 1,150 | 870 | |
Loans [Abstract] | ||||
Ending balance | 209,008 | [1] | 166,432 | 165,406 |
Ending balance: Individually evaluated for impairment | 458 | 458 | 458 | |
Ending balance: Collectively evaluated for impairment | 208,550 | 165,974 | 164,948 | |
SBL Construction [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 250 | 136 | 136 | |
Provision (credit) | 141 | 50 | 114 | |
Ending balance | 391 | 186 | 250 | |
Ending balance: Individually evaluated for impairment | 35 | |||
Ending balance: Collectively evaluated for impairment | 356 | 186 | 250 | |
Loans [Abstract] | ||||
Ending balance | 38,116 | 17,978 | 21,636 | |
Ending balance: Individually evaluated for impairment | 711 | |||
Ending balance: Collectively evaluated for impairment | 37,405 | 17,978 | 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 | (391) | (532) | (637) | |
Recoveries | 51 | 64 | 64 | |
Provision (credit) | 676 | 929 | 1,103 | |
Ending balance | 2,361 | 1,956 | 2,025 | |
Ending balance: Individually evaluated for impairment | 136 | 195 | 145 | |
Ending balance: Collectively evaluated for impairment | 2,225 | 1,761 | 1,880 | |
Loans [Abstract] | ||||
Ending balance | 412,755 | 395,976 | 394,770 | |
Ending balance: Individually evaluated for impairment | 424 | 1,125 | 871 | |
Ending balance: Collectively evaluated for impairment | 412,331 | 394,851 | 393,899 | |
SBLOC/IBLOC [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 393 | 365 | 365 | |
Provision (credit) | 118 | 24 | 28 | |
Ending balance | 511 | 389 | 393 | |
Ending balance: Collectively evaluated for impairment | 511 | 389 | 393 | |
Loans [Abstract] | ||||
Ending balance | 920,463 | 778,552 | 785,303 | |
Ending balance: Collectively evaluated for impairment | 920,463 | 778,552 | 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) | (48) | 19 | 3 | |
Ending balance | 12 | 76 | 60 | |
Ending balance: Collectively evaluated for impairment | 12 | 76 | 60 | |
Loans [Abstract] | ||||
Ending balance | 3,167 | 40,799 | 31,836 | |
Ending balance: Collectively evaluated for impairment | 3,167 | 40,799 | 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 | (3) | (20) | (21) | |
Recoveries | 1 | 1 | ||
Provision (credit) | 125 | (44) | (453) | |
Ending balance | 231 | 517 | 108 | |
Ending balance: Individually evaluated for impairment | 204 | 17 | ||
Ending balance: Collectively evaluated for impairment | 27 | 517 | 91 | |
Loans [Abstract] | ||||
Ending balance | 6,388 | 12,172 | 16,302 | |
Ending balance: Individually evaluated for impairment | 1,715 | 1,618 | 1,741 | |
Ending balance: Collectively evaluated for impairment | 4,673 | 10,554 | 14,561 | |
Unallocated [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 240 | 197 | 197 | |
Provision (credit) | 28 | 3 | 43 | |
Ending balance | 268 | 200 | 240 | |
Ending balance: Collectively evaluated for impairment | 268 | 200 | 240 | |
Loans [Abstract] | ||||
Ending balance | 9,299 | 10,456 | 10,383 | |
Ending balance: Collectively evaluated for impairment | $ 9,299 | $ 10,456 | $ 10,383 | |
[1] | 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. |
Loans (Delinquent Loans By Loan
Loans (Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | $ 6,420 | $ 4,516 | ||
Total past due | 14,738 | 11,396 | ||
Current | 1,668,639 | 1,490,580 | ||
Total loans, net of deferred loan fees and costs | 1,683,377 | 1,501,976 | $ 1,496,773 | |
30 - 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4,600 | 3,535 | ||
60 - 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 930 | 2,391 | ||
90 Days Or Greater [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,788 | 954 | ||
SBL Non-Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 3,803 | 2,590 | ||
Total past due | 3,944 | 3,061 | ||
Current | 80,237 | 73,279 | ||
Total loans, net of deferred loan fees and costs | 84,181 | [1] | 76,340 | 74,408 |
SBL Non-Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 141 | 346 | ||
SBL Non-Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 125 | |||
SBL Commercial Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 458 | 458 | ||
Total past due | 458 | 458 | ||
Current | 208,550 | 164,948 | ||
Total loans, net of deferred loan fees and costs | 209,008 | [1] | 165,406 | 166,432 |
SBL Construction [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 711 | |||
Total past due | 711 | 694 | ||
Current | 37,405 | 20,942 | ||
Total loans, net of deferred loan fees and costs | 38,116 | 21,636 | 17,978 | |
SBL 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 | 5,616 | 5,120 | ||
Current | 407,139 | 389,650 | ||
Total loans, net of deferred loan fees and costs | 412,755 | 394,770 | 395,976 | |
Direct Lease Financing [Member] | 30 - 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,898 | 2,594 | ||
Direct Lease Financing [Member] | 60 - 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 930 | 1,572 | ||
Direct Lease Financing [Member] | 90 Days Or Greater [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,788 | 954 | ||
SBLOC/IBLOC [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,561 | 487 | ||
Current | 917,902 | 784,816 | ||
Total loans, net of deferred loan fees and costs | 920,463 | 785,303 | 778,552 | |
SBLOC/IBLOC [Member] | 30 - 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,561 | 487 | ||
Other Specialty Lending [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 108 | |||
Current | 3,167 | 31,728 | ||
Total loans, net of deferred loan fees and costs | 3,167 | 31,836 | $ 40,799 | |
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 | 1,037 | 9,147 | ||
Total loans, net of deferred loan fees and costs | 1,037 | 9,147 | ||
Consumer - Home Equity [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 1,448 | 1,468 | ||
Total past due | 1,448 | 1,468 | ||
Current | 3,903 | 5,687 | ||
Total loans, net of deferred loan fees and costs | 5,351 | 7,155 | ||
Unamortized Loan Fees And Costs [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 9,299 | 10,383 | ||
Total loans, net of deferred loan fees and costs | $ 9,299 | $ 10,383 | ||
[1] | 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. |
Loans (Loans By Categories) (De
Loans (Loans By Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | ||
Loans by categories [Abstract] | |||||
Total loans | $ 1,683,377 | $ 1,501,976 | $ 1,496,773 | ||
SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 84,181 | [1] | 76,340 | 74,408 | |
SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 209,008 | [1] | 165,406 | 166,432 | |
SBL Construction [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 38,116 | 21,636 | 17,978 | ||
Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 412,755 | 394,770 | 395,976 | ||
SBLOC/IBLOC [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 920,463 | 785,303 | 778,552 | ||
Other Specialty Lending [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 3,167 | 31,836 | $ 40,799 | ||
Consumer [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 6,388 | 16,302 | |||
Unamortized Loan Fees And Costs [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 9,299 | 10,383 | |||
Pass [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 1,566,565 | 1,441,999 | |||
Pass [Member] | SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 64,507 | [1] | 67,809 | ||
Pass [Member] | SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 194,949 | [1] | 158,667 | ||
Pass [Member] | SBL Construction [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 37,284 | 19,912 | |||
Pass [Member] | Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 397,612 | 382,860 | |||
Pass [Member] | SBLOC/IBLOC [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 865,695 | 775,153 | |||
Pass [Member] | Other Specialty Lending [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 3,167 | 31,749 | |||
Pass [Member] | Consumer [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 3,351 | 5,849 | |||
Special Mention [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 2,216 | 4,071 | |||
Special Mention [Member] | SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 1,948 | [1] | 1,641 | ||
Special Mention [Member] | SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 268 | [1] | 273 | ||
Special Mention [Member] | Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 2,157 | ||||
Substandard [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 21,282 | 8,867 | |||
Substandard [Member] | SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 4,577 | [1] | 4,517 | ||
Substandard [Member] | SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 5,011 | [1] | 458 | ||
Substandard [Member] | SBL Construction [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 711 | 694 | |||
Substandard [Member] | Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 9,535 | 1,456 | |||
Substandard [Member] | Consumer [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | 1,448 | 1,742 | |||
Unrated subject to review [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 19,293 | 10,311 | ||
Unrated subject to review [Member] | SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 9,148 | 347 | ||
Unrated subject to review [Member] | SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 7,889 | 5,498 | ||
Unrated subject to review [Member] | SBL Construction [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 843 | |||
Unrated subject to review [Member] | Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 2,256 | 3,623 | ||
Unrated Not Subject To Review [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 74,021 | 36,728 | ||
Unrated Not Subject To Review [Member] | SBL Non-Real Estate [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 4,001 | 2,026 | ||
Unrated Not Subject To Review [Member] | SBL Commercial Mortgage [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 891 | 510 | ||
Unrated Not Subject To Review [Member] | SBL Construction [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 121 | 187 | ||
Unrated Not Subject To Review [Member] | Direct Lease Financing [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 3,352 | 4,674 | ||
Unrated Not Subject To Review [Member] | SBLOC/IBLOC [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 54,768 | 10,150 | ||
Unrated Not Subject To Review [Member] | Other Specialty Lending [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 87 | |||
Unrated Not Subject To Review [Member] | Consumer [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | 1,589 | 8,711 | ||
Unrated Not Subject To Review [Member] | Unamortized Loan Fees And Costs [Member] | |||||
Loans by categories [Abstract] | |||||
Total loans | [1] | $ 9,299 | $ 10,383 | ||
[1] | 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 (D
Transactions With Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Deposits | $ 4,345,697 | $ 4,345,697 | $ 3,935,714 | ||
Legal expense | 1,466 | $ 1,610 | 4,324 | $ 5,811 | |
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Deposits | 0 | 0 | 4,700 | ||
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 | 2,000 | 2,000 | 2,000 | ||
J.V.B. Financial Group, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase agreements outstanding | $ 0 | 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 | 1,400 | ||||
Duane Morris LLP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Legal expense | $ 915 | $ 2,200 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2014USD ($)loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers from level two to level three | $ 100,700 | ||||
Cash and cash equivalents | 956,500 | $ 956,500 | $ 554,300 | ||
Impaired loans | 7,600 | 7,600 | |||
Specific reserves and other write downs on impaired loans | 3,500 | 3,500 | |||
Troubled debt restructured loans balance | 2,192 | $ 2,947 | |||
Troubled debt restructured loans, specific reserve | 1,200 | $ 1,200 | |||
Number of troubled debt restructured loans | loan | 10 | 10 | |||
Minimum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated selling costs | 7.00% | ||||
Maximum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated selling costs | 10.00% | ||||
Walnut Street [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans, face value | $ 267,600 | ||||
Price paid for a portion of the commercial loan portfolio | 209,600 | ||||
Notes payable | $ 193,600 | ||||
Number of notes | loan | 2 | ||||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | [1] | $ 4,075 | $ 4,075 | $ 3,747 | |
Senior Notes [Member] | Walnut Street [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior notes | $ 178,200 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||
Subordinated Note [Member] | Walnut Street [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Junior Subordinated Notes | $ 15,400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||
[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. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Value Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | $ 1,382,437 | $ 1,236,324 |
Investment securities, held-to-maturity | 84,399 | 84,432 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
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 | 1,260,867 | 1,211,934 |
Investment securities, held-to-maturity | 75,918 | 76,113 |
Interest rate swaps, asset | 1,681 | |
Demand and interest checking | 3,844,747 | 3,904,638 |
Savings and money market | 25,950 | 31,076 |
Time deposits | 475,000 | |
Interest rate swaps, liability | 790 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 121,570 | 24,390 |
Investment securities, held-to-maturity | 7,146 | 7,278 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 4,342 | 1,113 |
Commercial loans held-for-sale | 489,240 | 688,471 |
Loans, net of deferred loan fees and costs | 1,681,081 | 1,503,780 |
Investment in unconsolidated entity | 49,431 | 59,273 |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 |
Subordinated debentures | 10,094 | 9,975 |
Carrying Amount [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 1,382,437 | 1,236,324 |
Investment securities, held-to-maturity | 84,399 | 84,432 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 4,342 | 1,113 |
Commercial loans held-for-sale | 489,240 | 688,471 |
Loans, net of deferred loan fees and costs | 1,683,377 | 1,501,976 |
Investment in unconsolidated entity | 49,431 | 59,273 |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 |
Interest rate swaps, asset | 1,681 | |
Demand and interest checking | 3,844,747 | 3,904,638 |
Savings and money market | 25,950 | 31,076 |
Time deposits | 475,000 | |
Subordinated debentures | 13,401 | 13,401 |
Securities sold under agreements to repurchase | 93 | 93 |
Interest rate swaps, liability | 790 | |
Estimated Fair Value [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 1,382,437 | 1,236,324 |
Investment securities, held-to-maturity | 83,064 | 83,391 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 4,342 | 1,113 |
Commercial loans held-for-sale | 489,240 | 688,471 |
Loans, net of deferred loan fees and costs | 1,681,081 | 1,503,780 |
Investment in unconsolidated entity | 49,431 | 59,273 |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 |
Interest rate swaps, asset | 1,681 | |
Demand and interest checking | 3,844,747 | 3,904,638 |
Savings and money market | 25,950 | 31,076 |
Time deposits | 475,000 | |
Subordinated debentures | 10,094 | 9,975 |
Securities sold under agreements to repurchase | 93 | $ 93 |
Interest rate swaps, liability | $ 790 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets measured at fair value on a recurring basis [Abstract] | |||
Fair value | $ 1,382,437 | $ 1,236,324 | |
Assets measured on a nonrecurring basis [Abstract] | |||
Impaired loans - collateral dependent | 7,600 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
U.S. Government agency securities | 54,528 | 53,362 | |
Asset-backed securities | 259,008 | 188,602 | |
Obligations of states and political subdivisions | 68,860 | 67,986 | |
Residential mortgage-backed securities | 352,958 | 369,741 | |
Collaterized mortgage obligation securities | 238,834 | 262,207 | |
Commercial mortgage-backed securities | 408,249 | 294,426 | |
Fair value | 1,382,437 | 1,236,324 | |
Commercial loans held-for-sale | 489,240 | 688,471 | |
Investment in unconsolidated entity | 49,431 | 59,273 | |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 | |
Interest rate swaps, asset | 1,681 | ||
Interest rate swaps, liability | 790 | ||
Total assets | 2,082,416 | 2,183,580 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Impaired loans - collateral dependent | [1] | 4,075 | 3,747 |
Intangible assets | 2,698 | 3,846 | |
Assets nonrecurring | 6,773 | 7,593 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Fair value | 1,260,867 | 1,211,934 | |
Interest rate swaps, asset | 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 | 54,528 | 53,362 | |
Asset-backed securities | 259,008 | 188,602 | |
Obligations of states and political subdivisions | 68,860 | 67,986 | |
Residential mortgage-backed securities | 352,958 | 369,741 | |
Collaterized mortgage obligation securities | 238,834 | 262,207 | |
Commercial mortgage-backed securities | 286,679 | 270,036 | |
Fair value | 1,260,867 | 1,211,934 | |
Interest rate swaps, asset | 1,681 | ||
Interest rate swaps, liability | 790 | ||
Total assets | 1,260,077 | 1,213,615 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Fair value | 121,570 | 24,390 | |
Commercial loans held-for-sale | 489,240 | 688,471 | |
Investment in unconsolidated entity | 49,431 | 59,273 | |
Assets held-for-sale from discontinued operations | 162,098 | 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 | 121,570 | 24,390 | |
Fair value | 121,570 | 24,390 | |
Commercial loans held-for-sale | 489,240 | 688,471 | |
Investment in unconsolidated entity | 49,431 | 59,273 | |
Assets held-for-sale from discontinued operations | 162,098 | 197,831 | |
Total assets | 822,339 | 969,965 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Impaired loans - collateral dependent | [1] | 4,075 | 3,747 |
Intangible assets | 2,698 | 3,846 | |
Assets nonrecurring | $ 6,773 | $ 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. |
Fair Value Measurements (Compan
Fair Value Measurements (Company's Level 3 Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | (123) | 352 |
Purchases, issuances, sales and settlements | ||
Issuances | 922 | 1,664 |
Sales | (6,671) | (35,000) |
Settlements | (27,907) | (62,754) |
Charge-offs | (1,954) | (10,744) |
Ending balance | 162,098 | 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 | (123) | 352 |
Available For Sale Securities [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 24,390 | 40,644 |
Transfers into level 3 | 100,664 | |
Transfers out of level 3 | (74,355) | |
Included in other comprehensive income (loss) | (43) | (688) |
Purchases, issuances, sales and settlements | ||
Purchases | 62,076 | |
Settlements | (3,441) | (3,287) |
Ending balance | 121,570 | 24,390 |
Commercial Loans Held-For-Sale [Member] | ||
Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 688,471 | 503,316 |
Included in earnings | 26,790 | 19,850 |
Purchases, issuances, sales and settlements | ||
Issuances | 1,099,719 | 866,303 |
Sales | (1,325,740) | (700,998) |
Ending balance | 489,240 | 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 | 1,713 | (922) |
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 | (9,842) | (11,511) |
Ending balance | $ 49,431 | 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) $ in Thousands | Sep. 30, 2019USD ($)item | Dec. 31, 2018USD ($)item |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, held-to-maturity | $ | $ 84,399 | $ 84,432 |
Weighted Average [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in unconsolidated entity, measurement input | 0.01 | 0.01 |
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, measurement input | 0.0655 | |
Investment securities held-to-maturity, measurement input | 0.0828 | 0.0880 |
Investment in unconsolidated entity, measurement input | 0.0587 | 0.0630 |
Available For Sale Securities [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, measurement input | 0.0400 | |
Available For Sale Securities [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, measurement input | 0.0745 | |
Loans, Net Of Deferred Loan Fees And Costs [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net of deferred loan fees and costs, measurement input | 0.0370 | 0.0422 |
Loans, Net Of Deferred Loan Fees And Costs [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net of deferred loan fees and costs, measurement input | 0.0744 | 0.0693 |
Commercial - SBA [Member] | Minimum [Member] | Measurement Input, Offered Price [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 98.75 | 99.125 |
Commercial - SBA [Member] | Maximum [Member] | Measurement Input, Offered Price [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 110 | 110 |
Commercial - Fixed [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 0.0410 | 0.0523 |
Commercial - Fixed [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 0.0706 | 0.0692 |
Commercial - Floating [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 0.0406 | 0.0541 |
Commercial - Floating [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale, measurement input | 0.0665 | 0.0775 |
Assets Held-For-Sale [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, measurement input | 0.0354 | 0.0426 |
Assets Held-For-Sale [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, measurement input | 0.0778 | 0.0836 |
Subordinated Debentures [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated debentures, measurement input | 0.0828 | 0.0881 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ | $ 121,570 | $ 24,390 |
Investment securities, held-to-maturity | $ | 7,146 | 7,278 |
Federal Home Loan Bank And Atlantic Central Bankers Bank stock | $ | 4,342 | 1,113 |
Loans, net of deferred loan fees and costs | $ | 1,681,081 | 1,503,780 |
Commercial loans held for sale | $ | 489,240 | 688,471 |
Investment in unconsolidated entity | $ | 49,431 | 59,273 |
Assets held for sale | $ | 162,098 | 197,831 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - SBA [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale | $ | 222,007 | 199,977 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - Fixed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale | $ | 92,907 | 95,307 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - Floating [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale | $ | 174,326 | 393,187 |
Significant Unobservable Inputs (Level 3) [Member] | Subordinated Debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated debentures | $ | $ 10,094 | $ 9,975 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)agreement | |
Derivative [Line Items] | |
Notional Amount | $ 40,300 |
Payable under agreements | 790 |
Cash collateral | $ 1,300 |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of interest rate swap agreements | agreement | 7 |
Fair value adjustment on derivatives | $ 2,500 |
Derivatives (Derivatives) (Deta
Derivatives (Derivatives) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivative [Line Items] | |
Notional amount | $ 40,300 |
Fair value | $ (790) |
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) | 2.29% |
Fair value | $ 103 |
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) | 2.12% |
Fair value | $ (108) |
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) | 2.16% |
Fair value | $ (262) |
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) | 2.13% |
Fair value | $ (325) |
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) | 2.26% |
Fair value | $ (65) |
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) | 2.28% |
Fair value | $ 30 |
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) | 2.13% |
Fair value | $ (163) |
Other Identifiable Intangible_2
Other Identifiable Intangible Assets (Details) - USD ($) | Nov. 29, 2012 | May 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2007 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | $ 382,000 | $ 382,000 | $ 1,148,000 | $ 1,148,000 | ||||
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 carrying amount | $ 3,400,000 | 3,400,000 | 3,400,000 | |||||
Accumulated amortization | 1,200,000 | 1,200,000 | $ 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 | $ 250,000 | |||||||
Gross intangible carrying amount | 12,000,000 | 12,000,000 | ||||||
Accumulated amortization | 11,800,000 | 11,800,000 | 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 | $ 206,000 | |||||||
Gross intangible carrying amount | 1,800,000 | 1,800,000 | ||||||
Accumulated amortization | $ 1,600,000 | $ 1,600,000 | $ 1,500,000 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Narrative) (Details) $ 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 | Sep. 30, 2019USD ($) | |
Recent Accounting Pronouncements [Abstract] | ||
Remaining 2019 | $ 40,096 | |
2020 | 117,691 | |
2021 | 86,382 | |
2022 | 51,675 | |
2023 | 26,048 | |
2024 and thereafter | 9,394 | |
Total undiscounted cash flows | 331,286 | |
Residual value | 125,938 | [1] |
Difference between undiscounted cash flows and discounted cash flows | (44,469) | |
Present value of lease payments recorded as lease receivables | 412,755 | |
Direct financing lease, unguaranteed residual asset | $ 27,665 | |
[1] | Of the $125,938,000, $27,665,000 is not guaranteed by the lessee. |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Matters [Abstract] | |
Percentage of net profits from preceding period for which dividend is paid to surplus fund (in hundredths) | 50.00% |
Percentage of capital stock (in hundredths) | 50.00% |
Percentage of net profits from preceding period for which dividend is paid to surplus fund thereafter (in hundredths) | 25.00% |
Percentage of capital stock thereafter (in hundredths) | 100.00% |
Legal (Narrative) (Details)
Legal (Narrative) (Details) - USD ($) $ in Thousands | Feb. 07, 2019 | Jul. 16, 2018 | Sep. 30, 2019 | Sep. 30, 2019 |
Loss Contingencies [Line Items] | ||||
SEC settlement | $ 1,400 | $ 1,400 | ||
Seabreeze Development [Member] | ||||
Loss Contingencies [Line Items] | ||||
Investment by plaintiff, allegedly defrauded | $ 12,000 | $ 10,500 |
Segment Financials (Narrative)
Segment Financials (Narrative) (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||
Interest income | $ 48,375 | $ 38,656 | $ 136,033 | $ 109,323 | |||||
Interest expense | 10,815 | 8,024 | 29,924 | 19,083 | |||||
Net interest income | 37,560 | 30,632 | 106,109 | 90,240 | |||||
Provision for loan and lease losses | 650 | 1,060 | 2,950 | 2,660 | |||||
Non-interest income | 33,515 | 90,970 | 83,629 | 137,105 | |||||
Non-interest expense | 42,051 | 37,299 | 120,799 | 113,658 | |||||
Income from continuing operations before income taxes | 28,374 | 83,243 | 65,989 | 111,027 | |||||
Income taxes | 7,975 | 21,942 | 17,585 | 29,550 | |||||
Net income from continuing operations | 20,399 | 61,301 | 48,404 | 81,477 | |||||
Income from discontinued operations | 26 | (24) | 1,301 | 81 | |||||
Net income | 20,425 | $ 11,350 | $ 17,930 | 61,277 | $ 6,141 | $ 14,140 | 49,705 | 81,558 | |
Total assets | 4,943,536 | 4,943,536 | $ 4,437,911 | ||||||
Total liabilities | 4,459,362 | 4,459,362 | 4,031,135 | ||||||
Specialty Finance [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 35,210 | 24,957 | 95,573 | 70,184 | |||||
Interest expense | 353 | 1,760 | 1,087 | 3,569 | |||||
Net interest income | 34,857 | 23,197 | 94,486 | 66,615 | |||||
Provision for loan and lease losses | 650 | 1,060 | 2,950 | 2,660 | |||||
Non-interest income | 14,719 | 75,282 | 27,794 | 88,600 | |||||
Non-interest expense | 15,791 | 14,462 | 47,196 | 43,212 | |||||
Income from continuing operations before income taxes | 33,135 | 82,957 | 72,134 | 109,343 | |||||
Net income from continuing operations | 33,135 | 82,957 | 72,134 | 109,343 | |||||
Net income | 33,135 | 82,957 | 72,134 | 109,343 | |||||
Total assets | 2,179,828 | 2,179,828 | 2,181,499 | ||||||
Total liabilities | 241,891 | 241,891 | 281,326 | ||||||
Payments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest allocation | 13,165 | 13,699 | 40,460 | 39,139 | |||||
Interest expense | 7,236 | 5,723 | 23,947 | 14,247 | |||||
Net interest income | 5,929 | 7,976 | 16,513 | 24,892 | |||||
Non-interest income | 18,767 | 15,639 | 55,733 | 48,395 | |||||
Non-interest expense | 16,289 | 15,720 | 50,211 | 48,602 | |||||
Income from continuing operations before income taxes | 8,407 | 7,895 | 22,035 | 24,685 | |||||
Net income from continuing operations | 8,407 | 7,895 | 22,035 | 24,685 | |||||
Net income | 8,407 | 7,895 | 22,035 | 24,685 | |||||
Total assets | 65,586 | 65,586 | 43,737 | ||||||
Total liabilities | 3,497,061 | 3,497,061 | 3,545,877 | ||||||
Corporate [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 13,165 | 13,699 | 40,460 | 39,139 | |||||
Interest allocation | (13,165) | (13,699) | (40,460) | (39,139) | |||||
Interest expense | 3,226 | 541 | 4,890 | 1,267 | |||||
Net interest income | (3,226) | (541) | (4,890) | (1,267) | |||||
Non-interest income | 29 | 49 | 102 | 110 | |||||
Non-interest expense | 9,971 | 7,117 | 23,392 | 21,844 | |||||
Income from continuing operations before income taxes | (13,168) | (7,609) | (28,180) | (23,001) | |||||
Income taxes | 7,975 | 21,942 | 17,585 | 29,550 | |||||
Net income from continuing operations | (21,143) | (29,551) | (45,765) | (52,551) | |||||
Net income | (21,143) | (29,551) | (45,765) | (52,551) | |||||
Total assets | 2,536,024 | 2,536,024 | 2,014,844 | ||||||
Total liabilities | 720,410 | 720,410 | 203,932 | ||||||
Discontinued Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income from discontinued operations | 26 | (24) | 1,301 | 81 | |||||
Net income | 26 | $ (24) | 1,301 | $ 81 | |||||
Total assets | $ 162,098 | $ 162,098 | $ 197,831 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2014 | |
Discontinued Operations [Abstract] | ||||||
Fair value adjustments | $ 0 | $ 427 | $ 0 | $ 1,400 | ||
Disposal Group, Including Discontinued Operation, Loan Portfolio, Book Value | $ 1,100,000 | |||||
Assets held for sale, included in discontinued operations and transferred to level 3 | 162,098 | 162,098 | $ 197,831 | |||
Investment in unconsolidated entity, at fair value | $ 49,431 | $ 49,431 | $ 59,273 |
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Discontinued Operations [Abstract] | |||||
Interest income | $ 1,609 | $ 2,295 | $ 5,293 | $ 6,888 | |
Interest expense | |||||
Net interest income | 1,609 | 2,295 | 5,293 | 6,888 | |
Non-interest income | 9 | 14 | 33 | 883 | |
Non-interest expense | 1,467 | 2,679 | 3,451 | 8,035 | |
Income (loss) before taxes | 151 | (370) | 1,875 | (264) | |
Income tax expense (benefit) | 125 | (346) | 574 | (345) | |
Net income (loss) | 26 | $ (24) | 1,301 | $ 81 | |
Loans, net | 136,109 | 136,109 | $ 170,662 | ||
Other real estate owned | 25,989 | 25,989 | 27,169 | ||
Total assets | $ 162,098 | $ 162,098 | $ 197,831 |