Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 27, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-51018 | |
Entity Registrant Name | THE BANCORP, INC. | |
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, State or Province | DE | |
Entity Address, Postal Zip Code | 19809 | |
City Area Code | 302 | |
Local Phone Number | 385-5000 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | TBBK | |
Security Exchange Name | NASDAQ | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,981,560 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Entity Central Index Key | 0001295401 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Cash and cash equivalents | |||
Cash and due from banks | $ 22,537 | $ 5,382 | |
Interest earning deposits at Federal Reserve Bank | 700,175 | 596,402 | |
Total cash and cash equivalents | 722,712 | 601,784 | |
Investment securities, available-for-sale, at fair value | 790,594 | 953,709 | |
Commercial loans, at fair value (includes $0 and $61.6 million of loans held for sale at lower of cost or fair value at September 30, 2022 and December 31, 2021, respectively) | 818,040 | 1,388,416 | |
Loans, net of deferred loan fees and costs | [1] | 5,267,375 | 3,747,224 |
Allowance for credit losses | (19,689) | (17,806) | |
Loans, net | 5,247,686 | 3,729,418 | |
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock | 12,629 | 1,663 | |
Premises and equipment, net | 18,443 | 16,156 | |
Accrued interest receivable | 25,506 | 17,871 | |
Intangible assets, net | 2,149 | 2,447 | |
Other real estate owned | 18,873 | 18,873 | |
Deferred tax asset, net | 27,241 | 12,667 | |
Assets held-for-sale from discontinued operations | 3,268 | ||
Other assets | 93,201 | 96,967 | |
Total assets | 7,777,074 | 6,843,239 | |
Deposits | |||
Demand and interest checking | 5,934,591 | 5,561,365 | |
Savings and money market | 575,381 | 415,546 | |
Time deposits, $100,000 and over | 401,331 | ||
Total deposits | 6,911,303 | 5,976,911 | |
Securities sold under agreements to repurchase | 42 | 42 | |
Senior debt | 98,958 | 98,682 | |
Subordinated debentures | 13,401 | 13,401 | |
Other long-term borrowings | 38,928 | 39,521 | |
Other liabilities | 50,704 | 62,228 | |
Total liabilities | 7,113,336 | 6,190,785 | |
SHAREHOLDERS' EQUITY | |||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,201,560 and 57,370,563 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 56,202 | 57,371 | |
Additional paid-in capital | 311,569 | 349,686 | |
Retained earnings | 329,078 | 239,106 | |
Accumulated other comprehensive (loss) income | (33,111) | 6,291 | |
Total shareholders' equity | 663,738 | 652,454 | |
Total liabilities and shareholders' equity | $ 7,777,074 | $ 6,843,239 | |
[1] The ending balance for loans in the unallocated column represents deferred costs and fees. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Loans held for sale at lower of cost or fair value | $ 0 | $ 61.6 |
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) | 56,201,560 | 57,370,563 |
Common stock, outstanding | 56,201,560 | 57,370,563 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income | ||||
Loans, including fees | $ 75,579 | $ 46,426 | $ 181,320 | $ 143,784 |
Investment securities: | ||||
Taxable interest | 6,792 | 6,882 | 17,115 | 22,891 |
Tax-exempt interest | 25 | 25 | 74 | 78 |
Interest earning deposits | 1,525 | 167 | 2,876 | 650 |
Total interest income | 83,921 | 53,500 | 201,385 | 167,403 |
Interest expense | ||||
Deposits | 16,065 | 1,209 | 23,261 | 4,494 |
Short-term borrowings | 1,235 | 7 | 1,267 | 15 |
Long-term borrowings | 506 | 506 | ||
Senior debt | 1,279 | 1,279 | 3,838 | 3,838 |
Subordinated debentures | 177 | 112 | 432 | 337 |
Total interest expense | 19,262 | 2,607 | 29,304 | 8,684 |
Net interest income | 64,659 | 50,893 | 172,081 | 158,719 |
Provision for credit losses | 822 | 1,613 | 4,331 | 1,484 |
Net interest income after provision for (reversal of) credit losses | 63,837 | 49,280 | 167,750 | 157,235 |
Non-interest income | ||||
Net realized and unrealized gains on commercial loans, at fair value | 745 | 4,306 | 11,262 | 8,881 |
Leasing related income | 1,048 | 1,968 | 3,566 | 4,700 |
Other | 228 | 186 | 698 | 459 |
Total non-interest income | 23,426 | 26,588 | 79,943 | 76,523 |
Non-interest expense | ||||
Salaries and employee benefits | 28,001 | 25,094 | 77,848 | 77,839 |
Depreciation and amortization | 685 | 729 | 2,224 | 2,144 |
Rent and related occupancy cost | 1,268 | 1,256 | 3,831 | 3,777 |
Data processing expense | 1,292 | 1,209 | 3,727 | 3,481 |
Printing and supplies | 154 | 81 | 342 | 277 |
Audit expense | 366 | 356 | 1,107 | 1,110 |
Legal expense | 907 | 1,251 | 3,175 | 5,349 |
Legal settlement | 1,152 | |||
Civil money penalties | 1,750 | 1,750 | ||
Amortization of intangible assets | 99 | 99 | 298 | 298 |
FDIC insurance | 679 | 266 | 2,326 | 5,235 |
Software | 4,001 | 4,045 | 12,030 | 11,435 |
Insurance | 1,314 | 1,110 | 3,692 | 2,881 |
Telecom and IT network communications | 368 | 413 | 1,119 | 1,227 |
Consulting | 339 | 448 | 902 | 952 |
Other | 3,607 | 3,027 | 10,504 | 9,145 |
Total non-interest expense | 44,830 | 39,384 | 126,027 | 125,150 |
Income from continuing operations before income taxes | 42,433 | 36,484 | 121,666 | 108,608 |
Income tax expense | 11,829 | 8,289 | 31,694 | 25,195 |
Net income from continuing operations | 30,604 | 28,195 | 89,972 | 83,413 |
Discontinued operations | ||||
Income from discontinued operations before income taxes | 87 | 324 | ||
Income tax expense | 21 | 76 | ||
Income from discontinued operations, net of tax | 66 | 248 | ||
Net income | $ 30,604 | $ 28,261 | $ 89,972 | $ 83,661 |
Net income per share from continuing operations - basic | $ 0.54 | $ 0.49 | $ 1.58 | $ 1.45 |
Net income per share from discontinued operations - basic | 0.01 | |||
Net income per share - basic | 0.54 | 0.49 | 1.58 | 1.46 |
Net income per share from continuing operations - diluted | 0.54 | 0.48 | 1.56 | 1.41 |
Net income per share from discontinued operations - diluted | 0.01 | |||
Net income per share - diluted | $ 0.54 | $ 0.48 | $ 1.56 | $ 1.42 |
ACH, Card And Other Payment Processing Fees [Member] | ||||
Non-interest income | ||||
Fees | $ 2,230 | $ 1,905 | $ 6,552 | $ 5,605 |
Prepaid, Debit Card And Related Fees [Member] | ||||
Non-interest income | ||||
Fees | $ 19,175 | $ 18,223 | $ 57,865 | $ 56,878 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 30,604 | $ 28,261 | $ 89,972 | $ 83,661 |
Securities available-for-sale: | ||||
Change in net unrealized losses during the period | (14,431) | (4,867) | (53,982) | (9,192) |
Reclassification adjustments for losses included in income | 6 | 7 | ||
Other comprehensive loss | (14,431) | (4,867) | (53,976) | (9,185) |
Securities available-for-sale: | ||||
Change in net unrealized losses during the period | (3,897) | (1,314) | (14,576) | (2,483) |
Reclassification adjustments for losses included in income | 2 | 2 | ||
Income tax benefit related to items of other comprehensive loss | (3,897) | (1,314) | (14,574) | (2,481) |
Other comprehensive loss, net of tax and reclassifications into net income | (10,534) | (3,553) | (39,402) | (6,704) |
Comprehensive income | $ 20,070 | $ 24,708 | $ 50,570 | $ 76,957 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Total |
Balance at Dec. 31, 2020 | $ 57,551 | $ 377,452 | $ 128,453 | $ 17,708 | $ 581,164 |
Balance, shares at Dec. 31, 2020 | 57,550,629 | ||||
Net income | 25,965 | 25,965 | |||
Common stock issued from option exercises, net of tax benefits | $ 61 | 404 | 465 | ||
Common stock issued from option exercises, net of tax benefits, shares | 61,500 | ||||
Common stock issued from restricted units, net of tax benefits | $ 230 | (230) | |||
Common stock issued from restricted units, net of tax benefits, shares | 230,212 | ||||
Stock-based compensation | 2,261 | 2,261 | |||
Common stock repurchases | $ (594) | (9,406) | (10,000) | ||
Common stock repurchases, shares | (594,428) | ||||
Other comprehensive loss net of reclassification adjustments and tax | (3,091) | (3,091) | |||
Balance at Mar. 31, 2021 | $ 57,248 | 370,481 | 154,418 | 14,617 | 596,764 |
Balance (in shares) at Mar. 31, 2021 | 57,247,913 | ||||
Balance at Dec. 31, 2020 | $ 57,551 | 377,452 | 128,453 | 17,708 | 581,164 |
Balance, shares at Dec. 31, 2020 | 57,550,629 | ||||
Net income | 83,661 | ||||
Other comprehensive loss net of reclassification adjustments and tax | (6,704) | ||||
Balance at Sep. 30, 2021 | $ 57,331 | 357,528 | 212,114 | 11,004 | 637,977 |
Balance (in shares) at Sep. 30, 2021 | 57,330,846 | ||||
Balance at Mar. 31, 2021 | $ 57,248 | 370,481 | 154,418 | 14,617 | 596,764 |
Balance, shares at Mar. 31, 2021 | 57,247,913 | ||||
Net income | 29,435 | 29,435 | |||
Common stock issued from option exercises, net of tax benefits | $ 217 | 547 | 764 | ||
Common stock issued from option exercises, net of tax benefits, shares | 217,368 | ||||
Common stock issued from restricted units, net of tax benefits | $ 442 | (442) | |||
Common stock issued from restricted units, net of tax benefits, shares | 442,321 | ||||
Stock-based compensation | 2,206 | 2,206 | |||
Common stock repurchases | $ (449) | (9,551) | (10,000) | ||
Common stock repurchases, shares | (449,315) | ||||
Other comprehensive loss net of reclassification adjustments and tax | (60) | (60) | |||
Balance at Jun. 30, 2021 | $ 57,458 | 363,241 | 183,853 | 14,557 | 619,109 |
Balance (in shares) at Jun. 30, 2021 | 57,458,287 | ||||
Net income | 28,261 | 28,261 | |||
Common stock issued from restricted units, net of tax benefits | $ 314 | 1,790 | 2,104 | ||
Common stock issued from restricted units, net of tax benefits, shares | 313,446 | ||||
Stock-based compensation | 2,056 | 2,056 | |||
Common stock repurchases | $ (441) | (9,559) | (10,000) | ||
Common stock repurchases, shares | (440,887) | ||||
Other comprehensive loss net of reclassification adjustments and tax | (3,553) | (3,553) | |||
Balance at Sep. 30, 2021 | $ 57,331 | 357,528 | 212,114 | 11,004 | 637,977 |
Balance (in shares) at Sep. 30, 2021 | 57,330,846 | ||||
Balance at Dec. 31, 2021 | $ 57,371 | 349,686 | 239,106 | 6,291 | $ 652,454 |
Balance, shares at Dec. 31, 2021 | 57,370,563 | 57,370,563 | |||
Net income | 28,966 | $ 28,966 | |||
Common stock issued from option exercises, net of tax benefits | $ 27 | 57 | 84 | ||
Common stock issued from option exercises, net of tax benefits, shares | 27,818 | ||||
Common stock issued from restricted units, net of tax benefits | $ 284 | (284) | |||
Common stock issued from restricted units, net of tax benefits, shares | 284,040 | ||||
Stock-based compensation | 1,618 | 1,618 | |||
Common stock repurchases | $ (527) | (14,473) | (15,000) | ||
Common stock repurchases, shares | (527,393) | ||||
Other comprehensive loss net of reclassification adjustments and tax | (15,827) | (15,827) | |||
Balance at Mar. 31, 2022 | $ 57,155 | 336,604 | 268,072 | (9,536) | 652,295 |
Balance (in shares) at Mar. 31, 2022 | 57,155,028 | ||||
Balance at Dec. 31, 2021 | $ 57,371 | 349,686 | 239,106 | 6,291 | $ 652,454 |
Balance, shares at Dec. 31, 2021 | 57,370,563 | 57,370,563 | |||
Net income | $ 89,972 | ||||
Common stock repurchases, shares | (1,769,253) | ||||
Other comprehensive loss net of reclassification adjustments and tax | $ (39,402) | ||||
Balance at Sep. 30, 2022 | $ 56,202 | 311,569 | 329,078 | (33,111) | $ 663,738 |
Balance (in shares) at Sep. 30, 2022 | 56,201,560 | 56,201,560 | |||
Balance at Mar. 31, 2022 | $ 57,155 | 336,604 | 268,072 | (9,536) | $ 652,295 |
Balance, shares at Mar. 31, 2022 | 57,155,028 | ||||
Net income | 30,402 | 30,402 | |||
Common stock issued from option exercises, net of tax benefits | $ 7 | 71 | 78 | ||
Common stock issued from option exercises, net of tax benefits, shares | 7,500 | ||||
Common stock issued from restricted units, net of tax benefits | $ 281 | (281) | |||
Common stock issued from restricted units, net of tax benefits, shares | 280,892 | ||||
Stock-based compensation | 1,802 | 1,802 | |||
Common stock repurchases | $ (578) | (14,422) | (15,000) | ||
Common stock repurchases, shares | (577,926) | ||||
Other comprehensive loss net of reclassification adjustments and tax | (13,041) | (13,041) | |||
Balance at Jun. 30, 2022 | $ 56,865 | 323,774 | 298,474 | (22,577) | 656,536 |
Balance (in shares) at Jun. 30, 2022 | 56,865,494 | ||||
Net income | 30,604 | 30,604 | |||
Stock-based compensation | 2,131 | 2,131 | |||
Common stock repurchases | $ (663) | (14,336) | $ (14,999) | ||
Common stock repurchases, shares | (663,934) | (663,934) | |||
Other comprehensive loss net of reclassification adjustments and tax | (10,534) | $ (10,534) | |||
Balance at Sep. 30, 2022 | $ 56,202 | $ 311,569 | $ 329,078 | $ (33,111) | $ 663,738 |
Balance (in shares) at Sep. 30, 2022 | 56,201,560 | 56,201,560 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities | ||
Net income from continuing operations | $ 89,972 | $ 83,413 |
Net loss from discontinued operations, net of tax | 248 | |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 2,522 | 2,442 |
Provision for credit losses | 4,331 | 1,484 |
Net amortization of investment securities discounts/premiums | 1,356 | 3,216 |
Stock-based compensation expense | 5,551 | 6,523 |
Gain on commercial loans, at fair value | (15,034) | (7,267) |
Gain from discontinued operations | (1,492) | |
Change in fair value of commercial loans, at fair value | 5,278 | 1,330 |
Change in fair value of derivatives | (1,505) | (1,328) |
Loss on sales of investment securities | 6 | 7 |
(Increase) decrease in accrued interest receivable | (7,635) | 3,278 |
Increase in other assets | (5,563) | (6,216) |
Change in fair value of discontinued assets held-for-sale | 498 | |
Decrease in other liabilities | (10,971) | (14,744) |
Net cash provided by operating activities | 68,308 | 71,392 |
Investing activities | ||
Purchase of investment securities available-for-sale | (19,321) | (246,958) |
Proceeds from redemptions and prepayments of securities available-for-sale | 127,374 | 386,369 |
Sale of repossessed assets | 852 | 927 |
Net increase in loans | (1,459,304) | (485,647) |
Net decrease in discontinued loans held-for-sale | 21,882 | |
Commercial loans, at fair value drawn during the period | (36,877) | (62,151) |
Payments on commercial loans, at fair value | 554,836 | 351,239 |
Purchases of premises and equipment | (4,495) | (1,237) |
Change in receivable from investment in unconsolidated entity | 18 | |
Return of investment in unconsolidated entity | 7,337 | |
Decrease in discontinued assets held-for-sale | 4,858 | |
Net cash used in investing activities | (836,935) | (23,363) |
Financing activities | ||
Net increase (decrease) in deposits | 934,392 | (349,548) |
Proceeds of short-term borrowings | 300,000 | |
Proceeds from the issuance of common stock | 162 | 3,333 |
Repurchases of common stock | (44,999) | (30,000) |
Net cash provided by (used in) financing activities | 889,555 | (76,215) |
Net increase (decrease) in cash and cash equivalents | 120,928 | (28,186) |
Cash and cash equivalents, beginning of period | 601,784 | 345,515 |
Cash and cash equivalents, end of period | 722,712 | 317,329 |
Supplemental disclosure: | ||
Interest paid | 30,079 | 10,343 |
Taxes paid | 30,168 | 31,057 |
Non-cash investing and financing activities | ||
Transfer of loans from investment in unconsolidated entity upon its dissolution | 22,926 | |
Transfer of real estate owned from investment in unconsolidated entity upon its dissolution | 2,145 | |
Transfer of loans from discontinued operations | 61,580 | |
Transfers of real estate owned from discontinued operations | 17,343 | |
Leased vehicles transferred to repossessed assets | $ 830 | $ 757 |
Organization And Nature Of Oper
Organization And Nature Of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization And Nature Of Operations [Abstract] | |
Organization And Nature Of Operations | Note 1. Organization and Nature of Operations The Bancorp, Inc., or (“the Company”), is a Delaware corporation and a registered financial holding company. Its primary subsidiary is The Bancorp Bank, National Association, or (“the Bank”), which is wholly owned by the Company. The Bank is a nationally chartered commercial bank located in Wilmington, Delaware and is a Federal Deposit Insurance Corporation (“FDIC”) insured institution. As a nationally chartered institution, its primary regulator is the Office of the Comptroller of the Currency (“OCC”). The Bank has two primary lines of business consisting of its national specialty lending segment and its payments segment. In the national specialty lending segment, the Bank makes the following types of loans: securities-backed lines of credit (“SBLOC”) and cash value of insurance-backed lines of credit (“IBLOC”), leases (direct lease financing), Small Business Administration (“SBA”) loans and non-SBA commercial real estate (“CRE”) bridge loans. Prior to 2020, the Company generated CRE bridge loans for sale into capital markets primarily through loan securitizations which issued commercial mortgage backed securities (“CMBS”). In the third quarter of 2020, the Company decided to retain the CRE bridge loans on its balance sheet and no future securitizations are currently planned. In the third quarter of 2021, the Company resumed originating CRE bridge loans (primarily apartment buildings), after suspending the origination of such loans for most of 2020 and the first half of 2021. These new originations are classified as real estate bridge loans (“REBL”) and are accounted for at amortized cost, while prior CRE bridge loans originally generated for securitization continue to be accounted for at fair value. Additionally, in 2020, the Company began originating advisor financing loans to investment advisors for debt refinance, acquisition of other advisory firms or internal succession. While the national specialty lending segment generates the majority of the Company’s revenues, the payment segment also contributes significant revenues. In its payments segment, the Company provides payment and deposit services nationally, which include prepaid and debit card accounts, private label banking, deposit accounts to investment advisors’ customers, card payment and other payment processing services. Payment segment deposits fund the majority of the Company’s loans and securities and may be lower cost than other funding sources. Most of that segment’s revenues and deposits, in addition to SBLOC and IBLOC loans, result from relationships with third parties that market such products. Concentrations of loans and lower cost deposits result based upon the cumulative account balances generated by those third parties. Similar revenue concentrations result in prepaid, debit card and related fees. 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, 2022 | |
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, 2022 and for the three and nine month periods ended September 30, 2022 and 2021, 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, 2021 (the “2021 Form 10-K”). The results of operations for the nine month period ended September 30, 2022 may not necessarily be indicative of the results of operations for the full year ending December 31, 2022. In the first quarter of 2021, the Company changed its presentation of treasury stock acquired through common stock repurchases. To simplify presentation, common stock repurchases previously shown separately as treasury stock, are now shown as reductions in common stock and additional paid-in capital. There have been no significant changes to the Significant Accounting Policies as described in the 2021 Form 10-K. 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 Company has since disposed of the vast majority of related loans and other real estate owned. While in the process of disposition, financial results of the commercial lending operations were presented as separate from continuing operations on the consolidated statements of operations and assets of the commercial lending operations to be disposed of were presented as assets held-for-sale on the consolidated balance sheets. As disposition efforts concluded, discontinued loans of $ 61.6 million were reclassified to loans held for investment in the first quarter of 2022. Accordingly, these loans will be accounted for as such, and included in related tables. On the December 31, 2021 consolidated balance sheet, these discontinued loans were reclassified as loans held for sale in continuing operations and included within “Commercial loans, at fair value”. Discontinued other real estate owned of $ 17.3 million which constituted the remainder of discontinued assets was reclassified to the other real estate owned caption on the balance sheet. As noted above, in the first quarter of 2022 the loans previously in discontinued operations were reclassified to held for investment. In the second quarter of 2022, as a result of the loan reclassification, related valuation reserves were reversed as a credit to “Net realized and unrealized gains on commercial loans, at fair value” in the consolidated statement of operations, while the allowances for credit losses and loan commitments in the consolidated balance sheet were increased through a provision for credit losses. The $ 3.5 million credit to “ Net realized and unrealized gains on commercial loans, at fair value” was offset by a provision for credit losses of $ 3.5 million with no net impact on income. Of the $ 3.5 million provision, $ 1.3 million increased the allowance for credit losses and $ 2.2 million increased the allowance for loan commitments recorded in other liabilities. These reclassification entries were made retroactive to the first quarter of 2022 and are reflected in year to date 2022 results. The Company’s non-SBA commercial real estate bridge loans, at fair value, are primarily collateralized by multi-family properties (apartment buildings), and to a lesser extent, by hotel and retail properties. These loans were originally generated for sale through securitizations. In 2020, the Company decided to retain these loans on its balance sheet as interest earning assets and has resumed originating such loans. These new originations are identified as REBL and are held for investment in the loan portfolio. Prior originations initially intended for securitizations continue to be accounted for at fair value, and are included in the balance sheet in “Commercial loans, at fair value.” |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022, the Company had three active stock-based compensation plans. During the nine months ended September 30, 2022, the Company granted 100,000 stock options with a vesting period of four years and a weighted average grant-date fair value of $ 14.01 . During the nine months ended September 30, 2021, the Company granted 100,000 stock options with a vesting period of four years and a weighted average grant-date fair value of $ 8.51 . There were 35,318 common stock options exercised in the nine month period ended September 30, 2022. There were 657,500 common stock options exercised in the nine month period ended September 30, 2021. A summary of the Company’s stock options is presented below. Weighted average remaining Weighted average contractual Aggregate Options exercise price term (years) intrinsic value Outstanding at January 1, 2022 550,104 $ 9.67 7.17 $ 8,603,191 Granted 100,000 30.32 9.37 — Exercised ( 35,318 ) 8.84 — 808,850 Expired — — — — Forfeited ( 7,182 ) — — — Outstanding at September 30, 2022 607,604 $ 13.13 7.40 $ 6,213,070 Exercisable at September 30, 2022 266,328 $ 8.87 6.31 $ 3,490,558 The Company granted 260,693 restricted stock units (“RSUs”) in the first nine months of 2022, of which 219,311 have a vesting period of three years and 41,382 have a vesting period of one year . At issuance, the 260,693 RSUs granted in the first nine months of 2022 had a weighted average fair value of $ 28.61 per unit. I n the first nine months of 2021, t he Company granted 313,697 RSUs of which 261,073 have a vesting period of three years and 52,624 have a vesting period of one year . At issuance, the 313,697 RSUs granted in the first nine months of 2021 had a weighted average fair value of $ 18.81 per unit . A summary of the status of the Company’s RSUs is presented below. Weighted average Average remaining grant date contractual RSUs fair value term (years) Outstanding at January 1, 2022 1,030,124 $ 10.49 1.17 Granted 260,693 28.61 2.09 Vested ( 564,932 ) 10.21 — Forfeited ( 23,220 ) 13.29 — Outstanding at September 30, 2022 702,665 $ 17.52 1.22 As of September 30, 2022 , there was a total of $ 10.3 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 1.3 years. Related compensation expense for the three months ended September 30, 2022 and 2021 was $ 2.1 million and $ 2.1 million, respectively. Related compensation expense for the nine months ended September 30, 2022 and 2021 was $ 5.6 million and $ 6.5 million, respectively. The total issuance date fair value of RSUs vested and options exercised during the nine months ended September 30, 2022 and 2021 was $ 6.0 million and $ 7.6 million, respectively. The total intrinsic value of the options exercised and RSUs vested in those respective periods was $ 14.7 million and $ 25.3 million, respectively. For the periods ended September 30, 2022 and 2021, the Company estimated the 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, 2022 2021 Risk-free interest rate 1.94 % 1.19 % Expected dividend yield — — Expected volatility 45.10 % 45.61 % Expected lives (years) 6.3 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 ASC 718, Stock Based Compensation , stock based compensation expense for the period ended September 30, 2022 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, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings Per Share The Company calculates earnings per share in accordance with 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, including stock options and RSUs or other contracts to issue common stock were exercised and converted into common stock. Stock options are dilutive if exercise prices are less than current stock prices. RSUs are dilutive because they represent grants over vesting periods which do not require employees to pay exercise prices. The dilution shown in the tables below includes the potential dilution from both stock options and RSUs. The following tables show the Company’s earnings per share for the periods presented: For the three months ended September 30, 2022 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 $ 30,604 56,429,425 $ 0.54 Effect of dilutive securities Common stock options and restricted stock units — 578,799 — Diluted earnings per share Net earnings available to common shareholders $ 30,604 57,008,224 $ 0.54 Stock options for 407,604 shares, exercisable at prices between $ 6.87 and $ 10.45 per share, were outstanding at September 30, 2022, and included in the diluted earnings per share computation because the exercise price per share was less than the average market price . Stock options for 200,000 shares were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2022 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 $ 89,972 56,782,524 $ 1.58 Effect of dilutive securities Common stock options and restricted stock units — 728,462 ( 0.02 ) Diluted earnings per share Net earnings available to common shareholders $ 89,972 57,510,986 $ 1.56 Stock options for 407,604 shares, exercisable at prices between $ 6.87 and $ 10.45 per share, were outstanding at September 30, 2022, and included in the diluted earnings per share computation because the exercise price per share was less than the average market price . Stock options for 200,000 shares were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 2021 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 $ 28,195 57,198,778 $ 0.49 Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,195 58,628,306 $ 0.48 For the three months ended September 30, 2021 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 $ 66 57,198,778 $ — Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 — Diluted earnings per share Net earnings available to common shareholders $ 66 58,628,306 $ — For the three months ended September 30, 2021 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 $ 28,261 57,198,778 $ 0.49 Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,261 58,628,306 $ 0.48 Notes: The total of diluted earnings per share from continuing and discontinued operations does not equal diluted earnings per share due to rounding. In 2022, after reclassification of discontinued assets to continuing operations, there was no further income or expense for discontinued operations. Stock options for 504,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at September 30, 2021, and included in the dilutive earnings per share computation. Stock options for 100,000 shares were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2021 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 $ 83,413 57,221,174 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 ( 0.04 ) Diluted earnings per share Net earnings available to common shareholders $ 83,413 58,932,146 $ 1.41 For the nine months ended September 30, 2021 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 $ 248 57,221,174 $ 0.01 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 — Diluted earnings per share Net earnings available to common shareholders $ 248 58,932,146 $ 0.01 For the nine months ended September 30, 2021 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 $ 83,661 57,221,174 $ 1.46 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 ( 0.04 ) Diluted earnings per share Net earnings available to common shareholders $ 83,661 58,932,146 $ 1.42 Stock options for 504,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at September 30, 2021, and included in the dilutive earnings per share computation. Stock options for 100,000 shares were anti-dilutive and not included in the earnings per share calculation. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
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 at September 30, 2022 and December 31, 2021 are summarized as follows (in thousands): Available-for-sale September 30, 2022 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 25,872 $ 14 $ ( 1,604 ) $ 24,282 Asset-backed securities * 354,690 — ( 13,709 ) 340,981 Tax-exempt obligations of states and political subdivisions 3,559 — ( 102 ) 3,457 Taxable obligations of states and political subdivisions 45,696 54 ( 1,718 ) 44,032 Residential mortgage-backed securities 154,920 120 ( 10,726 ) 144,314 Collateralized mortgage obligation securities 46,479 — ( 1,717 ) 44,762 Commercial mortgage-backed securities 194,856 — ( 12,890 ) 181,966 Corporate debt securities 10,000 — ( 3,200 ) 6,800 $ 836,072 $ 188 $ ( 45,666 ) $ 790,594 September 30, 2022 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 18,692 $ — $ ( 244 ) $ 18,448 Collateralized loan obligation securities 335,998 — ( 13,465 ) 322,533 $ 354,690 $ — $ ( 13,709 ) $ 340,981 Available-for-sale December 31, 2021 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 36,182 $ 1,167 $ ( 47 ) $ 37,302 Asset-backed securities * 360,332 327 ( 241 ) 360,418 Tax-exempt obligations of states and political subdivisions 3,559 172 — 3,731 Taxable obligations of states and political subdivisions 45,984 2,422 — 48,406 Residential mortgage-backed securities 179,778 4,804 ( 281 ) 184,301 Collateralized mortgage obligation securities 60,778 1,083 — 61,861 Commercial mortgage-backed securities 248,599 4,106 ( 1,629 ) 251,076 Corporate debt securities 10,000 — ( 3,386 ) 6,614 $ 945,212 $ 14,081 $ ( 5,584 ) $ 953,709 December 31, 2021 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 22,518 $ 13 $ ( 73 ) $ 22,458 Collateralized loan obligation securities 337,814 314 ( 168 ) 337,960 $ 360,332 $ 327 $ ( 241 ) $ 360,418 Investments in Federal Home Loan Bank (“FHLB”), Atlantic Central Bankers Bank stock, and Federal Reserve Bank stock are recorded at cost and amounted to $ 12.6 million and $ 1.7 million at September 30, 2022 and December 31, 2021, respectively. The Bank’s conversion to a national charter required the purchase of $ 11.0 million of Federal Reserve Bank stock in September of 2022. The amount of FHLB stock required to be held is based on the amount of borrowings, and after repayment thereof, the stock may be redeemed. The amortized cost and fair value of the Company’s investment securities at September 30, 2022, 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 Amortized Fair cost value Due before one year $ 27,387 $ 27,232 Due after one year through five years 144,209 137,727 Due after five years through ten years 229,430 219,888 Due after ten years 435,046 405,747 $ 836,072 $ 790,594 At September 30, 2022 and December 31, 2021, no investment securities were encumbered through pledging or otherwise, as borrowings were collateralized with loans. 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 third-party market data provider uses a pricing matrix which it creates daily, taking into consideration actual trade data, projected prepayments, and when relevant, projected credit defaults and losses. The table below indicates the length of time individual securities had been in a continuous unrealized loss position at September 30, 2022 (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 12 $ 20,101 $ ( 1,571 ) $ 2,409 $ ( 33 ) $ 22,510 $ ( 1,604 ) Asset-backed securities 58 179,430 ( 5,571 ) 161,551 ( 8,138 ) 340,981 ( 13,709 ) Tax-exempt obligations of states and political subdivisions 4 3,457 ( 102 ) — — 3,457 ( 102 ) Taxable obligations of states and political subdivisions 26 39,727 ( 1,718 ) — — 39,727 ( 1,718 ) Residential mortgage-backed securities 132 124,133 ( 9,413 ) 8,513 ( 1,313 ) 132,646 ( 10,726 ) Collateralized mortgage obligation securities 22 44,762 ( 1,717 ) — — 44,762 ( 1,717 ) Commercial mortgage-backed securities 43 143,893 ( 7,450 ) 38,073 ( 5,440 ) 181,966 ( 12,890 ) Corporate debt securities 1 — — 6,800 ( 3,200 ) 6,800 ( 3,200 ) Total unrealized loss position investment securities 298 $ 555,503 $ ( 27,542 ) $ 217,346 $ ( 18,124 ) $ 772,849 $ ( 45,666 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2021 (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 2 $ — $ — $ 2,700 $ ( 47 ) $ 2,700 $ ( 47 ) Asset-backed securities 42 243,598 ( 235 ) 1,197 ( 6 ) 244,795 ( 241 ) Residential mortgage-backed securities 30 21,640 ( 159 ) 5,160 ( 122 ) 26,800 ( 281 ) Commercial mortgage-backed securities 12 3,334 ( 43 ) 91,355 ( 1,586 ) 94,689 ( 1,629 ) Corporate debt securities 1 — — 6,614 ( 3,386 ) 6,614 ( 3,386 ) Total unrealized loss position investment securities 87 $ 268,572 $ ( 437 ) $ 107,026 $ ( 5,147 ) $ 375,598 $ ( 5,584 ) 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, 2022, it had a book value of $ 10.0 million and a fair value of $ 6.8 million. This security is presented in the corporate debt securities classification in the tables above. The Company has evaluated the securities in the above tables as of September 30, 2022 and has concluded that no ne of these securities required an allowance for credit loss. The Company evaluates whether an allowance for credit loss is required by considering primarily the following factors: (a) the extent to which the fair value is 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 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. 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 impact of fair value 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 an allowance was not required to recognize credit losses. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Loans [Abstract] | |
Loans | Note 6. Loans The Company has several lending lines of business including: small business comprised primarily of SBA loans; direct lease financing primarily for commercial vehicles and to a lesser extent equipment; SBLOC collateralized by marketable securities; IBLOC collateralized by the cash value of eligible life insurance policies; and investment advisor financing for purposes of debt refinance, acquisition of another firm or internal succession. Prior to 2020, the Company also originated commercial real estate bridge loans for sale into securitizations. At origination, the Company elected fair value treatment for these loans as they were originally held-for-sale, to better reflect the economics of the transactions. Currently, the Company intends to hold these loans on its balance sheet, and thus no longer accounts for these loans as held-for-sale. The Company continues to present these loans at fair value. At September 30, 2022, the total commercial loans, at fair value were $ 818.0 million, and the unpaid principal balance was $ 826.0 million, including the guaranteed portion of certain SBA loans also previously held for sale. Included in “Net realized and unrealized gains (losses) on commercial loans, at fair value” in the consolidated statements of operations were changes in the fair value of such loans. For the nine months ended September 30, 2022, related net unrealized losses recognized for changes in fair value were $ 5.3 million, which reflected $ 6.4 million of losses attributable to credit weaknesses. Included in the $ 6.4 million was a $ 4.0 million third quarter unrealized loss to reflect a write-down to a September 2022 appraisal, less estimated disposition costs, of a $ 9.5 million loan. The loan, collateralized by a movie theater, had been current and performing but missed its August 2022 payment, and ceased operations in that month. Additionally, during the third quarter of 2022, the parent company of the theater chain declared bankruptcy and filed a motion to reject the lease at the property. The loan was previously measured based on its scheduled contractual cash flows, discounted at a market rate. However, based on the events occurring during the quarter and the current likelihood of foreclosure, the estimated fair value of the loan at September 30, 2022 was determined to equal the fair value of the theater based on the aforementioned new appraisal, less the estimated cost of disposition. The loan represents the only movie theater loan in the Company’s portfolios and was originated in 2015, before non-SBA commercial loan originations were primarily comprised of apartment building loans. Of the $ 2.15 billion of non-SBA commercial loans, at fair value and REBL loans which together comprise the non-SBA CRE portfolios, $ 2.05 billion are comprised of apartment building loans. For the nine months ended September 30, 2021, unrealized losses recognized for such changes in fair value were $ 285,000 of which $ 15,000 was attributable to credit weaknesses. In the third quarter of 2021, the Company resumed the origination of such loans which it also intends to hold for investment and which are accounted for at amortized cost. They are captioned as REBLs as they are transitional commercial mortgage loans which are made to improve and rehabilitate existing properties which already have cash flow. The Bank pledged the majority of its loans held for investment at amortized cost and commercial loans at fair value to either the Federal Home Loan Bank or the Federal Reserve Bank for lines of credit with those institutions. The Federal Home Loan Bank line is periodically utilized to manage liquidity, but the Federal Reserve line has not generally been used. However, in light of the impact of the COVID-19 pandemic, the Federal Reserve has encouraged banks to utilize their lines to maximize the amount of funding available for credit markets. Accordingly, the Bank has periodically borrowed against its Federal Reserve line on an overnight basis. The amount of loans pledged varies and the collateral may be unpledged at any time to the extent the collateral exceeds advances. The lines are maintained consistent with the Bank’s liquidity policy which maximizes potential liquidity. At September 30, 2022, $ 2.01 billion of loans were pledged to the Federal Reserve and $ 1.41 billion of loans were pledged to the Federal Home Loan Bank. At September 30, 2022, there was $ 0 outstanding against the Federal Reserve line and $ 0 outstanding against the Federal Home Loan Bank line. Prior to 2020, the Company sponsored the structuring of commercial mortgage loan securitizations, and in 2020, the Company decided not to pursue additional securitizations. The loans previously sold to the commercial mortgage-backed securitizations were transitional commercial mortgage loans made to improve and rehabilitate existing properties which already have cash flow. Servicing rights were 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 obtained a tranche of certificates which are accounted for as available-for-sale debt securities. The securities were recorded at fair value at acquisition, which was determined by an independent third-party based on the discounted cash flow method using unobservable (level 3) inputs. Of the six securities resulting from our securitizations all have been repaid except that from CRE-2. As of September 30, 2022, the principal balance of the security we own issued by CRE-2 was $ 12.6 million. Repayment is expected from the workout or disposition of commercial real estate collateral, after repayment of the one remaining senior tranche. The Company’s $ 12.6 million security has 50 % excess credit support; thus, losses of 50 % of remaining security balances would have to be incurred, prior to any loss on our security. Additionally, the commercial real estate collateral supporting the three remaining loans was re-appraised between 2020 and 2022. The updated appraised value is approximately $ 60.9 million, which is net of $ 573,000 due to the servicer. The remaining principal to be repaid on all securities is approximately $ 58.1 million and, as noted, the Company’s security is scheduled to be repaid prior to 50 % of the outstanding securities. However, any future reappraisals could result in further decreases in credit enhancement, and if such decreases exceed such credit enhancements, losses could result. While available information indicates that the value of existing collateral will be adequate to repay the Company’s security, there can be no assurance that such valuations will be realized upon loan resolutions, and that deficiencies will not exceed the 50 % credit support. Of the remaining three loans, the property collateral for two of the loans is expected to be liquidated through sale. The third loan was originally extended two years to June of 2022 and terms have not yet been reached for another extension, thus putting the loan in maturity default. If not extended by the special servicer, the property will be foreclosed and sold. The property was appraised at $ 28.4 million on September 1, 2020 with total exposure in the security of $ 25.0 million. A recent broker opinion of property liquidation value was $ 20.9 million. The existing 50 % credit enhancement continues to provide repayment protection for the Bank owned tranche. 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 commercial loans at fair value, are as follows (in thousands): September 30, December 31, 2022 2021 SBL non-real estate $ 116,080 $ 147,722 SBL commercial mortgage 429,865 361,171 SBL construction 26,841 27,199 Small business loans 572,786 536,092 Direct lease financing 599,796 531,012 SBLOC / IBLOC * 2,369,106 1,929,581 Advisor financing ** 168,559 115,770 Real estate bridge loans 1,488,119 621,702 Other loans *** 64,980 5,014 5,263,346 3,739,171 Unamortized loan fees and costs 4,029 8,053 Total loans, including unamortized loan fees and costs $ 5,267,375 $ 3,747,224 September 30, December 31, 2022 2021 SBL loans, including costs net of deferred fees of $ 6,370 and $ 5,345 for September 30, 2022 and December 31, 2021, respectively $ 579,156 $ 541,437 SBL loans included in commercial loans, at fair value 159,914 199,585 Total small business loans **** $ 739,070 $ 741,022 * Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $ 1.10 billion and $ 788.3 million. ** In 2020 the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. *** Includes demand deposit overdrafts reclassified as loan balances totaling $ 1.0 million and $ 322,000 at September 30, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial. September 30, 2022 includes $ 54.2 million of balances previously included in discontinued assets including $ 19.5 million of residential mortgage loans, with the balance comprised of commercial loans. **** The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated (in thousands). The following table provides information about loans individually evaluated for credit loss at September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 357 $ 3,526 $ — $ 385 $ 7 SBL commercial mortgage — — — 56 — Direct lease financing — — — 66 — Other loans 3,552 3,552 — 1,184 113 Consumer - home equity 298 298 — 309 7 With an allowance recorded SBL non-real estate 990 990 ( 594 ) 1,303 6 SBL commercial mortgage 1,423 1,423 ( 222 ) 1,006 — SBL construction 710 710 ( 34 ) 710 — Other loans 592 592 ( 13 ) 2,974 — Total SBL non-real estate 1,347 4,516 ( 594 ) 1,688 13 SBL commercial mortgage 1,423 1,423 ( 222 ) 1,062 — SBL construction 710 710 ( 34 ) 710 — Direct lease financing — — — 66 — Other loans 4,144 4,144 ( 13 ) 4,158 113 Consumer - home equity 298 298 — 309 7 $ 7,922 $ 11,091 $ ( 863 ) $ 7,993 $ 133 December 31, 2021 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 409 $ 3,414 $ — $ 412 $ 5 SBL commercial mortgage 223 246 — 1,717 — Direct lease financing 254 254 — 430 — Consumer - home equity 320 320 — 458 8 With an allowance recorded SBL non-real estate 1,478 1,478 ( 829 ) 2,267 13 SBL commercial mortgage 589 589 ( 115 ) 2,634 — SBL construction 710 710 ( 34 ) 711 — Direct lease financing — — — 132 — Consumer - other — — — 5 — Total SBL non-real estate 1,887 4,892 ( 829 ) 2,679 18 SBL commercial mortgage 812 835 ( 115 ) 4,351 — SBL construction 710 710 ( 34 ) 711 — Direct lease financing 254 254 — 562 — Consumer - other — — — 5 — Consumer - home equity 320 320 — 458 8 $ 3,983 $ 7,011 $ ( 978 ) $ 8,766 $ 26 The l oan r eview department recommend s n on-accrual status for loans to the surveillance committee, where interest income appears to be uncollectible or a protracted delay in collection becomes evident. The surveillance committee further vets and approves the non-accrual status. The following table summarizes non-accrual loans with and without an allowance for credit losses (“ACL”) as of the periods indicated (in thousands): September 30, 2022 December 31, 2021 Non-accrual loans with a related ACL Non-accrual loans without a related ACL Total non-accrual loans Total non-accrual loans SBL non-real estate $ 861 $ 216 $ 1,077 $ 1,313 SBL commercial mortgage 1,423 — 1,423 812 SBL construction 710 — 710 710 Direct leasing — — — 254 Consumer - home equity — 58 58 72 Other loans 592 — 592 — $ 3,586 $ 274 $ 3,860 $ 3,161 The Company had $ 18.9 million of other real estate owned at September 30, 2022 and $ 18.9 million of other real estate owned at December 31, 2021. The following table summarizes the Company’s non-accrual loans, loans past due 90 days or more, and other real estate owned at September 30, 2022 and December 31, 2021, respectively: September 30, December 31, 2022 2021 (Dollars in thousands) Non-accrual loans SBL non-real estate $ 1,077 $ 1,313 SBL commercial mortgage 1,423 812 SBL construction 710 710 Direct leasing — 254 Other loans 592 — Consumer - home equity 58 72 Total non-accrual loans 3,860 3,161 Loans past due 90 days or more and still accruing 4,415 461 Total non-performing loans 8,275 3,622 Other real estate owned 18,873 18,873 Total non-performing assets $ 27,148 $ 22,495 Interest which would have been earned on loans classified as non-accrual for the nine months ended September 30, 2022 and 2021, was $ 133,000 and $ 247,000 , respectively. No income on non-accrual loans was recognized during the nine months ended September 30, 2022. In the nine months ended September 30, 2022 and 2021 a total of $ 208,000 and $ 39,000 , respectively, was reversed from interest income, which represented interest accrued on loans placed into non-accrual status during the period. The Company’s loans that were modified as of September 30, 2022 and December 31, 2021 and considered troubled debt restructurings are as follows (dollars in thousands): September 30, 2022 December 31, 2021 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 8 $ 657 $ 657 9 $ 1,231 $ 1,231 SBL commercial mortgage 1 834 834 — — — Other loans 1 3,552 3,552 — — — Consumer - home equity 1 241 241 1 248 248 Total (1) 11 $ 5,284 $ 5,284 10 $ 1,479 $ 1,479 (1) Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. The balances below provide information as to how the loans were modified as troubled debt restructuring loans as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ — $ — $ 657 $ — $ — $ 1,231 SBL commercial mortgage — — 834 — — — Other loans — — 3,552 — — — Consumer - home equity — — 241 — — 248 Total (1) $ — $ — $ 5,284 $ — $ — $ 1,479 (1) Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. The Company had no commitments to extend additional credit to loans classified as troubled debt restructurings as of September 30, 2022 or December 31, 2021. When loans are classified as troubled debt restructurings, the Company estimates the value of underlying collateral and repayment sources. A specific reserve in the allowance for credit losses is established if the collateral valuation, less estimated disposition costs, is lower than the recorded loan value. The amount of the specific reserve serves to increase the provision for credit losses in the quarter the loan is classified as a troubled debt restructuring. As of September 30, 2022 , there were 11 troubled debt restructured loans with a balance of $ 5.3 million which had specific reserves of $ 447,000 . As of December 31, 2021, there were 10 troubled debt restructured loans with a balance of $ 1.5 million which had specific reserves of $ 476,000 . Substantially all of these reserves related to the non-guaranteed portion of SBA loans for start-up businesses. The following table summarizes loans that were restructured within the 12 months ended September 30, 2022 that have subsequently defaulted (in thousands): September 30, 2022 Number Pre-modification recorded investment SBL non-real estate 1 $ 334 Total 1 $ 334 Management estimates the allowance for credit losses using relevant available internal and external historical loan performance information, current economic conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the initial basis for the estimation of expected credit losses over the estimated remaining life of the loans. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be responsive to changes in portfolio credit quality and the impact of current and future economic conditions on loan performance. The review of the appropriateness of the allowance is performed by the Chief Credit Officer and presented to the Audit Committee of the Company’s Board of Directors for their review. With the exception of SBLOC and IBLOC, which utilize probability of loss/loss given default, and the other loan category, which uses discounted cash flow to determine a reserve, the allowances for other categories are determined by establishing reserves on loan pools with similar risk characteristics based on a lifetime loss-rate model, or vintage analysis, as described in the following paragraph. Loans that do not share risk characteristics are evaluated on an individual basis. If foreclosure is believed to be probable or repayment is expected from the sale of the collateral, a reserve for deficiency is established within the allowance. Those reserves are estimated based on the difference between loan principal and the estimated fair value of the collateral, adjusted for estimated disposition costs. Except for SBLOC, IBLOC and other loans as noted above, for purposes of determining the pool-basis reserve, the loans not assigned an individual reserve are segregated by product type, to recognize differing risk characteristics within portfolio segments, and an average historical loss rate is calculated for each product type. Loss rates are computed by classifying net charge-offs by year of loan origin, and dividing into total originations for that specific year. This methodology is referred to as vintage analysis. The average loss rate is then projected over the estimated remaining loan lives unique to each loan pool, to determine estimated lifetime losses. For SBLOC and IBLOC, since losses have not been incurred, probability of loss/loss given default considerations are utilized. For the other loan category discounted cash flow is utilized to determine a reserve. For all loan pools the Company considers the need for an additional allowance based upon qualitative factors such as the Company’s current loan performance statistics as determined by pool. These qualitative factors are intended to account for forward looking expectations over a twelve to eighteen month period not reflected in historical loss rates and otherwise unaccounted for in the quantitative process. Accordingly, such factors may increase or decrease the allowance compared to historical loss rates as the Company’s forward looking expectations change. Aside from the qualitative adjustments to account for forward looking expectations of loss over a twelve to eighteen month projection period, the balance of the allowance reverts directly to the Company’s quantitative analysis derived from its historical loss rates. A similar process is employed to calculate an allowance assigned to off-balance sheet commitments, which are comprised of unfunded loan commitments and letters of credit. That allowance for unfunded commitments is recorded in other liabilities. Even though portions of the allowance may be allocated to loans that have been individually measured for credit deterioration, the entire allowance is available for any credit that, in management’s judgment, should be charged off. The Company ranks its qualitative factors in five levels: minimal, low, moderate, moderate-high and high risk. The individual qualitative factors for each portfolio segment have their own scale based on an analysis of that segment. A high risk ranking has the greatest impact on the allowance calculation with each level below having a lesser impact on a sliding scale. The qualitative factors used for each portfolio are described below in the description of each portfolio segment. When the Company adopted CECL as of January 1, 2020, the management assumption was that some degree of economic slowdown should be considered over the next eighteen months. That belief reflected the length of the current economic expansion and the relatively high level of unsustainable U.S. government deficit spending. Accordingly, certain of the Company’s qualitative factors were set at moderate as of January 1, 2020. Based on the uncertainty as to how the COVID-19 pandemic would impact the Company’s loan pools, the Company increased other qualitative factors to moderate and moderate high in 2020. In the second quarter of 2021, the Company reassessed these factors and reversed increases to moderate-high for certain pools, based upon increased vaccination rates and significant reopening of the economy. As a result of continuing economic uncertainty in 2022, including heightened inflation and increased risks of recession, the qualitative factors were maintained at their original levels, which had been set in anticipation of a downturn. The potential impact of heightened inflation was also considered by line of business heads, credit leadership and other staff. Two areas were identified which might be specifically impacted. First, Federal Reserve rate increases will directly increase a real estate bridge loan sponsors’ floating rate borrowing costs, and may also impair repayment ability in the future. However, borrowers generally are required to purchase interest rate caps that will partially limit the increase in borrowing costs during the term of the loan. Additionally, higher rents in the multifamily sector provide a significant risk mitigant to that portfolio which consists of apartment buildings, which we generally consider to be workforce housing in selected states and locales. Second, inflation in fuel prices poses a risk to the Company’s vehicle fleet leases, specifically for less fuel efficient vehicles for which demand and values may decrease. However, used vehicle prices are anticipated to be sustained for an additional twelve to eighteen months, impacted by chip shortages which may persist into 2024. The economic qualitative factor is based on the estimated impact of economic conditions on the loan pools, as distinguished from the economic factors themselves, for the following reasons. The Company has not experienced charge-offs for either real estate bridge lending or similarly underwritten loans in its predecessor commercial loans, at fair value portfolio, despite stressed economic conditions. Additionally, there have been no losses for multi-family (apartment buildings) in the Company’s securitizations. Accordingly, the estimated credit losses for this pool were derived purely from industry loss information for multi-family housing. The estimated reserve on the multi-family portfolio is currently derived from that industry qualitative factor. Similarly, the Company’s charge-offs have been virtually non-existent for SBLOC and IBLOC notwithstanding stressed economic periods. Investment advisor loans were first offered in 2020 with limited performance history, during which charge-offs have not been experienced. For investment advisor loans, the nature of the underlying ultimate repayment source was considered, namely the fee-based advisory income streams resulting from investment portfolios under management and the impact changes in economic conditions would have on those payment streams. Additionally, the Company’s charge-off histories for small business loans, primarily SBA, and leases have not correlated with economic conditions, including trends in unemployment. While specific economic factors did not correlate with actual historical losses, multiple economic factors are considered. For the non-guaranteed portion of SBA loans, leases, real estate bridge lending and investment advisor financing the Company’s loss forecasting analysis included a review of industry statistics. However, the Company’s own charge-off history and average life estimates, for categories in which the Company has experienced charge-offs, was the primary quantitatively derived element in the forecasts. The qualitative component results from management’s qualitative assessments. In the second quarter of 2022, the Company adjusted its collateral qualitative factor for small business loans downward to account for a greater percentage of government guaranteed balances in applicable pools as compared to prior periods. Additionally, in the second quarter of 2022, allowances on credit deteriorated loans were reduced. The largest reduction was $ 1.0 million which resulted when single family units from a construction loan were sold for higher than expected prices. That loan had been included in discontinued loans prior to first quarter 2022, when discontinued assets were reclassified to continuing operations. The Company no longer engages in new construction residential lending. Below are the portfolio segments used to pool loans with similar risk characteristics and align with the Company’s methodology for measuring expected credit losses. These pools have similar risk and collateral characteristics, and certain of these pools are broken down further in determining and applying the vintage loss estimates previously discussed. For instance, within the direct lease financing pool, government and public institution leases are considered separately. Additionally, the Company evaluates its loans under an internal loan risk rating system as a means of identifying problem loans. The special mention classification indicates weaknesses that may, if not cured, threaten the borrower’s future repayment ability. A substandard classification reflects an existing weakness indicating the possible inadequacy of net worth and other repayment sources. These classifications are used both by regulators and peers, as they have been correlated with an increased probability of credit losses. A summary of the Company’s primary portfolio pools and loans accordingly classified, by year of origination, at September 30, 2022 and December 31, 2021 are as follows (in thousands): As of September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated* $ 4,135 $ 6,321 $ 306 $ — $ — $ — $ — $ 10,762 Pass 23,140 30,941 14,209 7,568 6,756 6,782 — 89,396 Special mention — — — — 603 303 — 906 Substandard — — 334 190 — 2,819 — 3,343 Total SBL non-real estate 27,275 37,262 14,849 7,758 7,359 9,904 — 104,407 SBL commercial mortgage Non-rated 15,964 — — — — — — 15,964 Pass 68,176 99,428 58,784 65,792 42,986 69,141 — 404,307 Special mention — — 141 1,853 — 644 — 2,638 Substandard — — — — 834 589 — 1,423 Total SBL commercial mortgage 84,140 99,428 58,925 67,645 43,820 70,374 — 424,332 SBL construction Non-rated 286 — — — — — — 286 Pass 1,751 11,633 9,756 2,704 — — — 25,844 Substandard — — — — — 710 — 710 Total SBL construction 2,037 11,633 9,756 2,704 — 710 — 26,840 Direct lease financing Non-rated 65,992 33,930 9,081 1,302 508 146 — 110,959 Pass 189,365 145,489 98,078 36,550 12,753 3,274 — 485,509 Special mention 31 — 68 — 9 — — 108 Substandard 1,598 653 951 18 — — — 3,220 Total direct lease financing 256,986 180,072 108,178 37,870 13,270 3,420 — 599,796 SBLOC Non-rated — — — — — — 830 830 Pass — — — — — — 1,264,187 1,264,187 Total SBLOC — — — — — — 1,265,017 1,265,017 IBLOC Non-rated — — — — — — 548,178 548,178 Pass — — — — — — 555,911 555,911 Total IBLOC — — — — — — 1,104,089 1,104,089 Advisor financing Non-rated 17,259 3,712 — — — — — 20,971 Pass 41,498 66,560 39,530 — — — — 147,588 Total advisor financing 58,757 70,272 39,530 — — — — 168,559 Real estate bridge loans Pass 840,423 647,696 — — — — — 1,488,119 Total real estate bridge loans 840,423 647,696 — — — — — 1,488,119 Other loans Non-rated 3,774 37 62 — — 21,714 522 26,109 Pass 227 368 2,612 2,794 3,741 40,930 1,205 51,877 Special mention — — — — — 3,552 — 3,552 Substandard — — — — — 592 57 649 Total other loans** 4,001 405 2,674 2,794 3,741 66,788 1,784 82,187 $ 1,273,619 $ 1,046,768 $ 233,912 $ 118,771 $ 68,190 $ 151,196 $ 2,370,890 $ 5,263,346 Unamortized loan fees and costs — — — — — — — 4,029 Total $ 5,267,375 * Included in the SBL non real estate non-rated total of $ 10.8 million, were $ 6.6 million of PPP loans. ** Included in Other loans are $ 17.2 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of September 30, 2022. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated* $ 39,318 $ 7,257 $ — $ — $ — $ — $ — $ 46,575 Pass 34,172 15,934 8,794 8,988 5,088 9,809 — 82,785 Special mention — — 99 666 — 859 — 1,624 Substandard — — — 18 848 895 — 1,761 Total SBL non-real estate 73,490 23,191 8,893 9,672 5,936 11,563 — 132,745 SBL commercial mortgage Non-rated 10,963 — — — — — — 10,963 Pass 79,166 57,554 75,290 43,820 37,607 46,016 — 339,453 Special mention — 141 1,853 — — 247 — 2,241 Substandard — — — — — 812 — 812 Total SBL commercial mortgage 90,129 57,695 77,143 43,820 37,607 47,075 — 353,469 SBL construction Pass 6,869 12,629 1,880 5,111 — — — 26,489 Substandard — — — — — 710 — 710 Total SBL construction 6,869 12,629 1,880 5,111 — 710 — 27,199 . Direct lease financing Non-rated 56,152 13,271 1,933 1,115 355 104 — 72,930 Pass 214,780 145,256 58,337 26,662 8,574 2,105 — 455,714 Special mention — — — 22 38 — — 60 Substandard 526 1,679 38 22 31 12 — 2,308 Total direct lease financing 271,458 160,206 60,308 27,821 8,998 2,221 — 531,012 SBLOC Non-rated — — — — — — 3,176 3,176 Pass — — — — — — 1,138,140 1,138,140 Total SBLOC — — — — — — 1,141,316 1,141,316 IBLOC Non-rated — — — — — — 346,604 346,604 Pass — — — — — — 441,661 441,661 Total IBLOC — — — — — — 788,265 788,265 Advisor financing Non-rated 38,330 258 — — — — — 38,588 Pass 33,776 43,406 — — — — — 77,182 Total advisor financing 72,106 43,664 — — — — — 115,770 Real estate bridge loans Pass 621,702 — — — — — — 621,702 Total real estate bridge loans 621,702 — — — — — — 621,702 Other loans Non-rated 396 152 — — — 216 656 1,420 Pass 373 113 3,081 4,553 5,212 11,604 1,264 26,200 Substandard — — — — — — 73 73 Total other loans** 769 265 3,081 4,553 5,212 11,820 1,993 27,693 Total $ 1,136,523 $ 297,650 $ 151,305 $ 90,977 $ 57,753 $ 73,389 $ 1,931,574 $ 3,739,171 Unamortized loan fees and costs — — — — — — — 8,053 Total $ 3,747,224 * Included in the SBL non real estate non-rated total of $ 46.6 million, were $ 44.8 million of PPP loans which are government guaranteed. ** Included in Other loans are $ 22.7 million of SBA loans purchased for CRA purposes as of December 31, 2021. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. SBL. Substantially all small business loans consist of SBA loans. The Bank participates in loan programs established by the SBA, including the 7(a) Loan Guarantee Program, the 504 Fixed Asset Financing Program, and a temporary program, the PPP . The 7(a) Loan Guarantee Program is designed to help small business borrowers start or expand their businesses by providing partial guarantees of loans made by banks and non-bank lending institutions for specific business purposes, including long or short term working capital; funds for the purchase of eq |
Transactions With Affiliates
Transactions With Affiliates | 9 Months Ended |
Sep. 30, 2022 | |
Transactions With Affiliates [Abstract] | |
Transactions With Affiliates | N ote 7. Transactions with Affiliates The Bank did no t maintain any deposits for various affiliated companies as of September 30, 2022 and December 31, 2021, 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, 2022, 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 $ 4.0 million at September 30, 2022 and $ 5.2 million at December 31, 2021. 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 $ 1.4 million and $ 1.5 million for legal services for the nine months ended September 30, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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 although it has sold loans in the past and may do so in the future. For fair value disclosure purposes, the Company utilized certain value measurement criteria required in accordance with 820, “Fair Value Measurements and Disclosures”, as discussed below. 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 $ 722.7 million and $ 601.8 million as of September 30, 2022 and December 31, 2021, 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 valuing of cash flows, which discounts expected cash flows from principal and interest using yield to maturity, or yield to call as appropriate, at the measurement date. In the third quarter of 2022 and 2021, there were no transfers between the three levels. FHLB, Atlantic Central Bankers Bank stock and Federal Reserve Bank stock are held as required by those respective institutions and are carried at cost. Each of these institutions require their correspondent banking institutions to hold stock as a condition of membership. While a fixed stock amount is required by each of these institutions, the Federal Home Loan Bank stock requirement increases or decreases with the level of borrowing activity. Co mmercial loans held at fair value are comprised primarily of commercial real estate bridge loans and SBA loans which had been originated for sale or securitization in the secondary market, and which are now being held on the balance sheet. Commercial real estate bridge loans and SBA loans are valued using a discounted cash flow analysis based upon pricing for similar loans where market indications of the sales price of such loans are not available, on a pooled basis. 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. Assets held-for-sale from discontinued operations were 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. Loan fair values 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. In the first quarter of 2022, discontinued loans were reclassified to loans held for investment, as efforts to sell the loans had concluded. Accordingly, these loans will be accounted for as such, and included in related tables. Discontinued other real estate owned which constituted the remainder of discontinued assets was reclassified to the other real estate owned caption on the consolidated balance sheet. For other real estate owned, market value is 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, senior debt 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 in other assets or other liabilities, 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, 2022 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 $ 790,594 $ 790,594 $ — $ 771,597 $ 18,997 Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 818,040 818,040 — — 818,040 Loans, net of deferred loan fees and costs 5,267,375 5,254,340 — — 5,254,340 Interest rate swaps, asset 952 952 — 952 — Demand and interest checking 5,934,591 5,934,591 — 5,934,591 — Savings and money market 575,381 575,381 — 575,381 — Time deposits 401,331 401,331 — 401,331 — Senior debt 98,958 93,871 — 93,871 — Subordinated debentures 13,401 8,947 — — 8,947 Securities sold under agreements to repurchase 42 42 42 — — December 31, 2021 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 $ 953,709 $ 953,709 $ — $ 934,678 $ 19,031 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,663 1,663 — — 1,663 Commercial loans, at fair value 1,388,416 1,388,416 — — 1,388,416 Loans, net of deferred loan fees and costs 3,747,224 3,745,548 — — 3,745,548 Assets held-for-sale from discontinued operations 3,268 3,268 — — 3,268 Interest rate swaps, liability 553 553 — 553 — Demand and interest checking 5,561,365 5,561,365 — 5,561,365 — Savings and money market 415,546 415,546 — 415,546 — Senior debt 98,682 101,980 — 101,980 — Subordinated debentures 13,401 8,815 — — 8,815 Securities sold under agreements to repurchase 42 42 42 — — 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 Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs September 30, 2022 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 24,282 $ — $ 24,282 $ — Asset-backed securities 340,981 — 340,981 — Obligations of states and political subdivisions 47,489 — 47,489 — Residential mortgage-backed securities 144,314 — 144,314 — Collateralized mortgage obligation securities 44,762 — 44,762 — Commercial mortgage-backed securities 181,966 — 169,769 12,197 Corporate debt securities 6,800 — — 6,800 Total investment securities, available-for-sale 790,594 — 771,597 18,997 Commercial loans, at fair value 818,040 — — 818,040 Interest rate swaps, asset 952 — 952 — $ 1,609,586 $ — $ 772,549 $ 837,037 Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 37,302 $ — $ 37,302 $ — Asset-backed securities 360,418 — 360,418 — Obligations of states and political subdivisions 52,137 — 52,137 — Residential mortgage-backed securities 184,301 — 184,301 — Collateralized mortgage obligation securities 61,861 — 61,861 — Commercial mortgage-backed securities 251,076 — 238,659 12,417 Corporate debt securities 6,614 — — 6,614 Total investment securities, available-for-sale 953,709 — 934,678 19,031 Commercial loans, at fair value 1,388,416 — — 1,388,416 Assets held-for-sale from discontinued operations 3,268 — — 3,268 Interest rate swaps, liability 553 — 553 — $ 2,344,840 $ — $ 934,125 $ 1,410,715 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 are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans, securities at fair value September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Beginning balance $ 19,031 $ 178,951 $ 1,388,416 $ 1,810,812 Transfers from investment in unconsolidated entity — — — 22,926 Transfers from assets held-for-sale from discontinued operations — — — 61,580 Transfers to loans, net — — ( 61,580 ) — Total net (losses) or gains (realized/unrealized) Included in earnings — ( 44 ) 9,756 13,214 Included in other comprehensive loss ( 34 ) ( 1,422 ) — — Purchases, issuances, sales and settlements Issuances — — 36,877 127,765 Settlements — ( 158,454 ) ( 555,429 ) ( 647,881 ) Ending balance $ 18,997 $ 19,031 $ 818,040 $ 1,388,416 Total 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. $ — $ — $ ( 5,278 ) $ ( 2,133 ) The Company’s Level 3 asset activity for the categories shown 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, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Beginning balance $ — $ 31,294 $ 3,268 $ 113,650 Transfers to commercial loans, at fair value — ( 22,926 ) — ( 61,580 ) Transfers to other real estate owned — ( 2,145 ) — ( 17,343 ) Total (losses) or gains (realized/unrealized) Included in earnings — — — 1,102 Purchases, issuances, sales, settlements and charge-offs Issuances — — — 5,222 Sales — — — ( 2,020 ) Settlements — ( 6,223 ) ( 3,268 ) ( 35,750 ) Charge-offs — — — ( 13 ) Ending balance $ — $ — $ — $ 3,268 Total 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. $ — $ — $ — $ 566 The Company’s other real estate owned activity is summarized below (in thousands) as of the dates indicated: September 30, 2022 December 31, 2021 Beginning balance $ 18,873 $ — Transfers from investment in unconsolidated entity — 2,145 Sales — ( 615 ) Transfers from discontinued operations — 17,343 Ending balance $ 18,873 $ 18,873 Information related to fair values of level 3 balance sheet categories is as follows : Level 3 instruments only Weighted Fair value at Range at average at September 30, 2022 Valuation techniques Unobservable inputs September 30, 2022 September 30, 2022 Commercial mortgage-backed investment security (a) $ 12,197 Discounted cash flow Discount rate 11.08 % 11.08 % Insurance liquidating trust preferred security (b) 6,800 Discounted cash flow Discount rate 10.82 % 10.82 % Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs (c) 5,254,340 Discounted cash flow Discount rate 5.00 %- 10.00 % 5.87 % Commercial - SBA (d) 159,914 Discounted cash flow Discount rate 3.85 %- 5.07 % 4.95 % Non-SBA CRE - fixed (e) 62,923 Discounted cash flow and appraisal Discount rate 8.26 %- 19.23 % 12.34 % Non-SBA CRE - floating (f) 595,203 Discounted cash flow Discount rate 5.56 %- 16.00 % 6.26 % Commercial loans, at fair value 818,040 Subordinated debentures (g) 8,947 Discounted cash flow Discount rate 11.05 % 11.05 % Other real estate owned (h) 18,873 Appraised value N/A N/A N/A Level 3 instruments only Weighted Fair value at Range at average at December 31, 2021 Valuation techniques Unobservable inputs December 31, 2021 December 31, 2021 Commercial mortgage-backed investment security $ 12,417 Discounted cash flow Discount rate 8.00 % 8.00 % Insurance liquidating trust preferred security 6,614 Discounted cash flow Discount rate 7.00 % 7.00 % Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,663 Cost N/A N/A N/A Loans, net of deferred loan fees and costs 3,745,548 Discounted cash flow Discount rate 1.00 % - 7.00 % 3.70 % Commercial - SBA 199,585 Discounted cash flow Discount rate 1.04 % - 2.12 % $ 103.40 Non-SBA CRE - fixed 79,864 Discounted cash flow Discount rate 5.31 %- 7.43 % 6.26 % Non-SBA CRE - floating 1,047,387 Discounted cash flow Discount rate 3.96 %- 10.20 % 4.96 % Other loans 61,580 Discounted cash flow Discount rate 3.18 %- 6.80 % 4.36 % Commercial loans, at fair value 1,388,416 Assets held-for-sale from discontinued operations 3,268 Discounted cash flow Discount rate 3.18 %- 6.80 % 4.36 % Subordinated debentures 8,815 Discounted cash flow Discount rate 7.00 % 7.00 % Other real estate owned 18,873 Appraised value N/A N/A N/A The valuations for each of the instruments above, as of the balance sheet date, are subject to judgments, assumptions and uncertainties, changes in which could have a significant impact on such valuations. Weighted averages were calculated by using the discount rate for each individual security or loan weighted by its market value, except for SBA loans. For SBA loans, the yields derived from market pricing indications for pools determined by date of loan origination were weighted. For commercial loans recorded at fair value, changes in fair value are reflected in the income statement. Changes in the fair value of securities which are unrelated to credit are recorded through equity. Changes in the fair value of loans recorded at amortized cost which are unrelated to credit are a disclosure item, without impact on the financial statements. The notes below refer to the September 30, 2022 table. a) Commercial mortgage-backed investment security, consisting of a single Bank issued CRE security, is valued using discounted cash flow analysis. The discount rate and prepayment rate applied are based upon market observations and actual experience for comparable securities and implicitly assume market averages for defaults and loss severities. The security has significant credit enhancement, or protection from other tranches in the issue, which limits the valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce its value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on this holding in future periods and impact its fair value. As a single security, the weighted average rate shown is the actual rate applied to the security. b) Insurance liquidating trust preferred security is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. c) Loans, net of deferred loan fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. d) Commercial-SBA Loans are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon the yield derived from dealer pricing indications for guaranteed pools, adjusted for seasoning and prepayments. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. Such assumptions for both poolable and seasoned loans are based on a seasoning vector for constant prepayment rates from 3 % to 30 % over life. e) Non-SBA CRE-fixed are fixed rate non-SBA commercial real estate mortgages. These loans are fair valued by a third party, based upon discounting at market rates for similar loans, except for one loan which is fair valued on the basis of an appraisal. Discount rates used in applying discounted cash flow analysis utilize input based upon loan terms, the general level of interest rates and the quality of the credit. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. The loan which is valued on the basis of an appraisal has a fair value of $ 4.8 million, an outstanding principal balance of $ 9.5 million and is discussed in Note 6. f) Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties (apartments). These are bridge loans designed to provide owners time and funding for property improvements and are generally valued using discounted cash flow analysis. The discount rate for the vast majority of these loans was based upon current origination rates for similar loans. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. At September 30, 2022, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. g) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in valuation. h) For other real estate owned, fair value is based upon appraisals of the underlying collateral by third party appraisers, reduced by 7 % to 10 % for estimated selling costs. Such appraisals reflect estimates of amounts realizable upon property sales based on the sale of comparable properties and other factors. Actual sales prices may vary based upon the identification of potential purchasers, changing conditions in local real estate markets and the level of interest rates required to finance purchases. 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 (1) Description September 30, 2022 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 7,059 $ — $ — $ 7,059 Other real estate owned 18,873 — — 18,873 Intangible assets 2,149 — — 2,149 $ 28,081 $ — $ — $ 28,081 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description December 31, 2021 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 3,005 $ — $ — $ 3,005 Other real estate owned 18,873 — — 18,873 Intangible assets 2,447 — — 2,447 $ 24,325 $ — $ — $ 24,325 1. The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for other real estate owned was the market 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, 2022, principal on collateral dependent 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 $ 7.1 million. To arrive at that fair value, related loan principal of $ 7.9 million was reduced by specific reserves of $ 863,000 within the allowance for credit losses as of that date, representing the deficiency between principal and estimated collateral values, which were reduced by estimated costs to sell. When the deficiency is deemed uncollectible, it is charged off by reducing the specific reserve and decreasing principal. Included in the collateral dependent loans at September 30, 2022 were 11 troubled debt restructured loans with a balance of $ 5.3 million, which had specific reserves of $ 447,000 . Included in the collateral dependent loans at December 31, 2021, were 10 troubled debt restructured loans with a balance of $ 1.5 million which had specific allowances of $ 476,000 . Valuation techniques consistent with the market and/or cost approach were used to measure fair value and primarily included observable inputs for the individual collateral dependent 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. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2022 | |
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 certain non-SBA CRE loans held at fair value. These instruments are not accounted for as effective hedges. As of September 30, 2022, the Company had entered into two interest rate swap agreements with an aggregate notional amount of $ 15.0 million. These swap agreements provide for the Company to receive an adjustable rate of interest based upon the three-month LIBOR. The Company recorded a net gain of $ 1.5 million for the nine months ended September 30, 2022 to recognize the fair value of the derivative instruments which is reported in net realized and unrealized gains (losses) on commercial loans, at fair value, in the consolidated statements of operations. The amount receivable by the Company under these swap agreements was $ 952,000 at September 30, 2022, which is reported in other assets. The Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $ 518,000 as of September 30, 2022. 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, 2022 are summarized below (dollars in thousands): September 30, 2022 Maturity date Notional amount Interest rate paid Interest rate received Fair value December 23, 2025 6,800 2.16 % 3.60 % 433 December 24, 2025 8,200 2.17 % 3.64 % 519 Total $ 15,000 $ 952 |
Other Identifiable Intangible A
Other Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Other Identifiable Intangible Assets [Abstract] | |
Other Identifiable Intangible Assets | Note 10. Other Identifiable Intangible Assets 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 ($ 1.3 million over the next five years). The gross carrying amount of the customer list intangible is $ 3.4 million, and as of September 30, 2022 and December 31, 2021, respectively, the accumulated amortization expense was $ 2.2 million and $ 1.9 million. In January 2020, the Company purchased McMahon Leasing and subsidiaries for approximately $ 8.7 million which resulted in $ 1.1 million of intangibles. The gross carrying value of $ 1.1 million of intangibles was comprised of a customer list intangible of $ 689,000 , goodwill of $ 263,000 and a trade name valuation of $ 135,000 . The customer list intangible is being amortized over a 12 year period and accumulated amortization expense was $ 158,000 at September 30, 2022 and $ 115,000 at December 31, 2021. Amortization expense is $ 57,000 per year ($ 287,000 over the next five years). The gross carrying value and accumulated amortization related to the Company’s intangibles at September 30, 2022 and December 31, 2021 are presented below. September 30, December 31, 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer list intangibles $ 4,093 $ 2,342 $ 4,093 $ 2,044 Goodwill 263 — 263 — Trade Name 135 — 135 — Total $ 4,491 $ 2,342 $ 4,491 $ 2,044 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU” or “Update”) 2020-04 which addressed optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, resulting from the phase-out of the London Inter-Bank Offered Rate (“LIBOR”) reference rate. To maximize management and accounting flexibility for holders of instruments using LIBOR as a benchmark, the guidance permitted a one-time transfer of such instruments from held-to-maturity to available-for-sale. The Company made such a transfer of four LIBOR-based securities, which comprised its held-to-maturity portfolio, in the first quarter of 2020. The Company discontinued LIBOR-based originations in 2021; however, certain financial instruments outstanding are indexed to LIBOR, including non-SBA commercial loans, at fair value, which amounted to $ 585.8 million at September 30, 2022. However, these loans are short-term and are generally expected to be repaid by the June 2023 LIBOR end date. At September 30, 2022, the Company owned $ 12.6 million of LIBOR based securities purchased from previous securitizations, which are also expected to mature before June 2023. When the Company resumed originating non-SBA commercial loans in the third quarter of 2021, which are identified separately under real estate bridge loans, it utilized the secured overnight financing rate (“SOFR”) as the index. In addition, the Company owns collateralized loan obligations (“CLOs”) and U.S. government agency adjustable-rate mortgages which utilize LIBOR based pricing. CLOs, which amounted to $ 336.1 million at September 30, 2022, generally have language regarding an index alternative should LIBOR no longer be available. U.S. government agencies generally have the ability to adjust interest rate indices as necessary on impacted LIBOR based securities, which amounted to $ 62.7 million at September 30, 2022. There is less clarity for the Company’s student loan securities of $ 18.6 million and its subordinated debentures payable of $ 13.4 million at that date, and for which industry standards continue to be considered by trustees and other governing bodies. The Company’s derivatives, the notional amount for which totaled $ 15.0 million at September 30, 2022, are interest rate swaps that are documented under bilateral agreements which contain LIBOR fallback provisions by virtue of counterparty adherence to the 2020 International Swaps and Derivatives Association, Inc.’s LIBOR Fallbacks Protocol. The Bank also owns $ 10 million of a Floating Rate Junior Subordinated Deferrable Interest Debenture issued by an insurance holding company in liquidation for which the rate index is three month LIBOR. The indenture contains terms for a substitution of the index when LIBOR quotes become unavailable. The Company continues to assess the potential impact of the phase-out of LIBOR on all affected accounts and any other potential impacts, and related accounting guidance. In August 2021, the FASB issued ASU 2021-06. This ASU adds new quarterly disclosures and expands certain annual disclosures to quarterly reporting. Amendments within this ASU are effective for fiscal years ending after December 15, 2021 and the Company is presenting the quarterly disclosures in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. The effective date is January 1, 2023. The Company does not expect it will have a material impact on the consolidated financial statements. On March 31, 2022, the Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin Number 121 (“SAB 121”). In SAB 121, the SEC staff expressed the views of its staff regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users. As the Company does not currently hold crypto-assets this release will not impact its consolidated financial statements or disclosures. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 12. Shareholder’s Equity In 2020, the Company’s Board of Directors (“the Board”) authorized a common stock repurchase program (the “2021 Common Stock Repurchase Program”). Under the 2021 Common Stock Repurchase Program, repurchased shares may be reissued for various corporate purposes. The Company repurchased $ 10.0 million in each quarter of 2021. On October 20, 2021, the Board approved a revised common stock repurchase program for the 2022 fiscal year (the “2022 Common Stock Repurchase Plan”). Under the 2022 Common Stock Repurchase Plan, the Company is authorized to repurchase up to $ 15.0 million in each quarter of 2022 , for a maximum amount of $ 60.0 million, depending on the share price, securities laws and stock exchange rules which regulate such repurchases. This plan may be modified or terminated at any time. During the three and nine months ended September 30, 2022, the Company repurchased 663,934 shares and 1,769,253 shares of its common stock in the open market under the 2022 Common Stock Repurchase Plan at an average cost of $ 22.59 per share and $ 25.43 per share, respectively. In the first quarter of 2021, the Company changed its presentation of treasury stock acquired through common stock repurchases. To simplify presentation, common stock repurchases previously shown separately as treasury stock are now shown as reductions in common stock and additional paid-in capital. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 13. 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. W ithout the prior approval of the OCC, a dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years. Additionally, a dividend may not be paid in excess of a bank’s retained earnings. Moreover, an insured depository institution may not pay a dividend if the payment would cause it to be less than “adequately capitalized” under the prompt corrective action framework as defined in the Federal Deposit Insurance Act or if the institution is in default in the payment of an assessment due to the FDIC. Similarly, a banking organization that fails to satisfy regulatory minimum capital conservation buffer requirements will be subject to certain limitations, which include restrictions on capital distributions . In addition to these explicit limitations, federal and state regulatory agencies are authorized to prohibit a banking subsidiary or financial hold ing 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. 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. Moreover, capital requirements may be modified based upon regulatory rules or by regulatory discretion at any time reflecting a variety of factors including deterioration in asset quality. The following table sets forth our regulatory capital amounts and ratios for the periods indicated: Tier 1 capital Tier 1 capital Total capital Common equity to average to risk-weighted to risk-weighted tier 1 to risk assets ratio assets ratio assets ratio weighted assets As of September 30, 2022 The Bancorp, Inc. 9.66 % 13.13 % 13.56 % 13.13 % The Bancorp Bank, National Association 10.79 % 14.73 % 15.15 % 14.73 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % As of December 31, 2021 The Bancorp, Inc. 10.40 % 14.72 % 15.13 % 14.72 % The Bancorp Bank, National Association 10.98 % 15.48 % 15.88 % 15.48 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % |
Legal
Legal | 9 Months Ended |
Sep. 30, 2022 | |
Legal [Abstract] | |
Legal | Note 14. Legal 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 has filed an answer denying the allegations and continues to vigorously defend against the claims. The Bank and other defendants previously filed a motion to dismiss the action, but the motion was denied and the case is in preliminary stages of discovery. The Company is unable to determine whether the ultimate resolution of the matter will have a material adverse effect on the Company’s financial condition or operations. As previously disclosed, the Company received and responded to two non-public fact-finding inquiries from the SEC, which in each case sought to determine if violations of the federal securities laws occurred. On October 9, 2019, the Company received a subpoena seeking records related generally to the Bank’s debit card issuance activity and gross dollar volume data, among other things. The Company responded to the subpoena and subsequent subpoenas issued to the Company. The SEC last requested information from the Company relating to this inquiry in September 2021. The SEC has not made any findings, or alleged any wrongdoing, with respect to this matter. Future costs related to responding to and cooperating with the SEC staff may be material, and could continue to be material at least through the completion of this matter. Unrelated to the first inquiry, on April 10, 2020, the Company received a subpoena in connection with the Bank’s CMBS business seeking records related to various offerings as well as CMBS securities held by the Bank. In connection with that investigation, on July 6, 2022, the Company received a “Wells Notice” from the SEC Staff stating that the SEC Staff made a preliminary determination to recommend that the SEC file an enforcement action against the Company alleging violations of record keeping, reporting and internal control provisions of the Exchange Act. Without admitting or denying any of the SEC’s allegations, the Company subsequently agreed 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 pay a penalty of $ 1.75 million (the “Settlement Payment”) to the SEC. The order became effective on August 24, 2022. 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 CMBS matter will cease, including the legal costs of the investigation, compliance with the SEC’s subpoena, and cooperation with the SEC. On January 12, 2021, three former employees of the Bank filed separate complaints against the Company in the Supreme Court of the State of New York, New York County. The Company subsequently removed all three lawsuits to the United States District Court for the Southern District of New York. The cases are captioned: John Edward Barker, Plaintiff v. The Bancorp, Inc., Defendant; Alexander John Kamai, Plaintiff v. The Bancorp, Inc., Defendant; and John Patrick McGlynn III, Plaintiff v. The Bancorp, Inc., Defendant. The lawsuits arise from the Bank’s termination of the plaintiffs’ employment in connection with the restructuring of its CMBS business. The plaintiffs sought damages in the following amounts: $ 4,135,142 (Barker), $ 901,088 (Kamai) and $ 2,909,627 (McGlynn). On June 11, 2021, the Company filed a consolidated motion to dismiss in each case. On February 25, 2022, the court granted the Company’s motion in part, dismissing McGlynn’s claims in entirety and most of Barker and Kamai’s claims. The sole claims remaining are Barker and Kamai’s breach of implied contract claims related to an unpaid bonus, for which they seek $ 2,000,000 and $ 300,000 , respectively. The Company is vigorously defending against these claims. On September 29, 2022, the Company filed a motion for summary judgment in both matters, which is still pending before the court. The Company is not yet able to determine whether the ultimate resolution of this matter will have a material adverse effect on the Company’s financial conditions or operations. On September 14, 2021, Cachet Financial Services (“Cachet”) filed an adversary proceeding against the Bank in the United States Bankruptcy Court for the Central District of California, titled Cachet Financial Services v. The Bancorp Bank. The case was filed within the context of Cachet’s pending Chapter 11 bankruptcy case. The Bank previously served as the Originating Depository Financial Institution (“ODFI”) for ACH transactions in connection with Cachet’s payroll services business. The matter arises from the Bank’s termination of its Payroll Processing ODFI Agreement with Cachet on October 23, 2019 for safety and soundness reasons. The initial complaint alleges eight causes of action: (i) breach of contract; (ii) negligence; (iii) intentional interference with contract; (iv) conversion; (v) express indemnity; (vi) implied indemnity; (vii) accounting; and (viii) objection to the Bank’s proof of claim in the bankruptcy case. On November 4, 2021, the Bank filed a motion in the United States District Court for the Central District of California to withdraw the reference of the adversary proceeding to the bankruptcy court. The motion is still pending. On August 3, 2022, Cachet served the Bank with a First Amended Complaint wherein Cachet, among other things, withdraws its implied indemnity claim against the Bank and adds several defendants unaffiliated with the Bank and causes of action related to those parties. As to the Bank, Cachet seeks approximately $ 150 million in damages, an accounting and disallowance of the Bank’s proof of claim. The Bank is vigorously defending against these claims. On September 28, 2022, the Bank filed a partial motion to dismiss, seeking to dispose of the majority of Cachet’s claims against the Bank. The motion is still pending before the court. The Company is not yet able to determine whether the ultimate resolution of this matter will have a material adverse effect on the Company’s financial conditions or operations. In addition, the Company is a party to various routine legal proceedings arising out of the ordinary course of business. The Company believes that none of these actions, individually or in the aggregate, will have a material adverse effect on the Company’s financial condition or operations. |
Segment Financials
Segment Financials | 9 Months Ended |
Sep. 30, 2022 | |
Segment Financials [Abstract] | |
Segment Financials | Note 15. 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 16, 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 the origination of non-SBA CRE loans, SBA loans, direct lease financing, 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. In the third quarter of 2022, the Company began allocating interest expense between segments and adjusted prior period presentation for consistency. 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, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 75,041 $ 34 $ 8,846 $ — $ 83,921 Interest allocation ( 17,747 ) 17,154 593 — — Interest expense 940 13,981 4,341 — 19,262 Net interest income 56,354 3,207 5,098 — 64,659 Provision for credit losses 822 — — — 822 Non-interest income 1,952 21,440 34 — 23,426 Non-interest expense 18,292 17,348 9,190 — 44,830 Income (loss) before taxes 39,192 7,299 ( 4,058 ) — 42,433 Income tax expense — — 11,829 — 11,829 Net income (loss) $ 39,192 $ 7,299 $ ( 15,887 ) $ — $ 30,604 For the three months ended September 30, 2021 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 46,313 $ — $ 7,187 $ — $ 53,500 Interest allocation ( 4,314 ) 5,155 ( 841 ) — — Interest expense 239 916 1,452 — 2,607 Net interest income 41,760 4,239 4,894 — 50,893 Provision for credit losses 1,613 — — — 1,613 Non-interest income 6,408 20,166 14 — 26,588 Non-interest expense 16,452 16,286 6,646 — 39,384 Income (loss) from continuing operations before taxes 30,103 8,119 ( 1,738 ) — 36,484 Income tax expense — — 8,289 — 8,289 Income (loss) from continuing operations 30,103 8,119 ( 10,027 ) — 28,195 Income from discontinued operations — — — 66 66 Net income (loss) $ 30,103 $ 8,119 $ ( 10,027 ) $ 66 $ 28,261 For the nine months ended September 30, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 179,700 $ 89 $ 21,596 $ — $ 201,385 Interest allocation ( 28,300 ) 28,565 ( 265 ) — — Interest expense 1,429 19,989 7,886 — 29,304 Net interest income 149,971 8,665 13,445 — 172,081 Provision for credit losses 4,331 — — — 4,331 Non-interest income 11,496 64,524 3,923 — 79,943 Non-interest expense 53,071 51,529 21,427 — 126,027 Income (loss) before taxes 104,065 21,660 ( 4,059 ) — 121,666 Income tax expense — — 31,694 — 31,694 Net income (loss) $ 104,065 $ 21,660 $ ( 35,753 ) $ — $ 89,972 For the nine months ended September 30, 2021 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 143,549 $ — $ 23,854 $ — $ 167,403 Interest allocation ( 12,713 ) 15,438 ( 2,725 ) — — Interest expense 723 3,298 4,663 — 8,684 Net interest income 130,113 12,140 16,466 — 158,719 Provision for credit losses 1,484 — — — 1,484 Non-interest income 13,864 62,600 59 — 76,523 Non-interest expense 50,844 52,666 21,640 — 125,150 Income (loss) from continuing operations before taxes 91,649 22,074 ( 5,115 ) — 108,608 Income tax expense — — 25,195 — 25,195 Income (loss) from continuing operations 91,649 22,074 ( 30,310 ) — 83,413 Income from discontinued operations — — — 248 248 Net income (loss) $ 91,649 $ 22,074 $ ( 30,310 ) $ 248 $ 83,661 September 30, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Total assets $ 6,061,700 $ 59,561 $ 1,655,813 $ — $ 7,777,074 Total liabilities $ 368,932 $ 5,724,483 $ 1,019,921 $ — $ 7,113,336 December 31, 2021 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 5,099,388 $ 41,593 $ 1,698,990 $ 3,268 $ 6,843,239 Total liabilities $ 329,372 $ 5,312,115 $ 549,298 $ — $ 6,190,785 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 16. 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 Company has since disposed of the vast majority of related loans and other real estate owned. While in the process of disposition, financial results of the commercial lending operations were presented as separate from continuing operations on the consolidated statements of operations and assets of the commercial lending operations to be disposed of were presented as assets held-for-sale on the consolidated balance sheets. As disposition efforts were winding down, discontinued loans of $ 61.6 million were reclassified to loans held for investment in the first quarter of 2022. These loans will accordingly be accounted for as such, and included in related tables as management continues related collections. Discontinued other real estate owned of $ 17.3 million which constituted the remainder of discontinued assets was reclassified to the other real estate owned caption on the balance sheet. The following table presents financial results of the commercial lending business included in net loss from discontinued operations for the three months ended September 30, 2022 and 2021 (in thousands) : For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Interest income $ — $ 754 $ — $ 2,388 Interest expense — — — — Net interest income — 754 — 2,388 Non-interest income — 48 — 51 Non-interest expense — 715 — 2,115 Income before taxes — 87 — 324 Income tax expense — 21 — 76 Net income $ — $ 66 $ — $ 248 The following table presents assets held-for-sale from discontinued operations at September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Commercial loans, at fair value $ — $ 2,907 Other real estate owned — 361 Total assets $ — $ 3,268 Non-interest expense for the three and nine months ended September 30, 2021 reflected $ 384,000 and $ 1.5 million of recoveries of prior losses on loans. I t also reflected respective expenses and losses of $ 745,000 and $ 2.3 million for the three and nine month periods ended September 30, 2021 , respectively, related to other real estate owned. 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events The Company evaluated its September 30, 2022 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. Pursuant to a stock repurchase plan described in Note 12, between October 1, 2022 through November 3, 2022, the Company repurchased 281,275 common shares, at a total cost of $ 6.9 million and an average price of $ 24.57 per share . On October 26, 2022, the Company’s board of directors approved a new stock repurchase program authorizing the Company to increase its share repurchases to $ 25.0 million per quarter, or $ 100.0 million in 2023, from $ 15.0 million a quarter, or $ 60.0 million in 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The financial statements of the Company, as of September 30, 2022 and for the three and nine month periods ended September 30, 2022 and 2021, 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, 2021 (the “2021 Form 10-K”). The results of operations for the nine month period ended September 30, 2022 may not necessarily be indicative of the results of operations for the full year ending December 31, 2022. In the first quarter of 2021, the Company changed its presentation of treasury stock acquired through common stock repurchases. To simplify presentation, common stock repurchases previously shown separately as treasury stock, are now shown as reductions in common stock and additional paid-in capital. There have been no significant changes to the Significant Accounting Policies as described in the 2021 Form 10-K. 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 Company has since disposed of the vast majority of related loans and other real estate owned. While in the process of disposition, financial results of the commercial lending operations were presented as separate from continuing operations on the consolidated statements of operations and assets of the commercial lending operations to be disposed of were presented as assets held-for-sale on the consolidated balance sheets. As disposition efforts concluded, discontinued loans of $ 61.6 million were reclassified to loans held for investment in the first quarter of 2022. Accordingly, these loans will be accounted for as such, and included in related tables. On the December 31, 2021 consolidated balance sheet, these discontinued loans were reclassified as loans held for sale in continuing operations and included within “Commercial loans, at fair value”. Discontinued other real estate owned of $ 17.3 million which constituted the remainder of discontinued assets was reclassified to the other real estate owned caption on the balance sheet. As noted above, in the first quarter of 2022 the loans previously in discontinued operations were reclassified to held for investment. In the second quarter of 2022, as a result of the loan reclassification, related valuation reserves were reversed as a credit to “Net realized and unrealized gains on commercial loans, at fair value” in the consolidated statement of operations, while the allowances for credit losses and loan commitments in the consolidated balance sheet were increased through a provision for credit losses. The $ 3.5 million credit to “ Net realized and unrealized gains on commercial loans, at fair value” was offset by a provision for credit losses of $ 3.5 million with no net impact on income. Of the $ 3.5 million provision, $ 1.3 million increased the allowance for credit losses and $ 2.2 million increased the allowance for loan commitments recorded in other liabilities. These reclassification entries were made retroactive to the first quarter of 2022 and are reflected in year to date 2022 results. The Company’s non-SBA commercial real estate bridge loans, at fair value, are primarily collateralized by multi-family properties (apartment buildings), and to a lesser extent, by hotel and retail properties. These loans were originally generated for sale through securitizations. In 2020, the Company decided to retain these loans on its balance sheet as interest earning assets and has resumed originating such loans. These new originations are identified as REBL and are held for investment in the loan portfolio. Prior originations initially intended for securitizations continue to be accounted for at fair value, and are included in the balance sheet in “Commercial loans, at fair value.” |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | |
Summary Of Status Of Company's Equity Compensations Plans | Weighted average remaining Weighted average contractual Aggregate Options exercise price term (years) intrinsic value Outstanding at January 1, 2022 550,104 $ 9.67 7.17 $ 8,603,191 Granted 100,000 30.32 9.37 — Exercised ( 35,318 ) 8.84 — 808,850 Expired — — — — Forfeited ( 7,182 ) — — — Outstanding at September 30, 2022 607,604 $ 13.13 7.40 $ 6,213,070 Exercisable at September 30, 2022 266,328 $ 8.87 6.31 $ 3,490,558 |
Summary Of Restricted Stock Units | Weighted average Average remaining grant date contractual RSUs fair value term (years) Outstanding at January 1, 2022 1,030,124 $ 10.49 1.17 Granted 260,693 28.61 2.09 Vested ( 564,932 ) 10.21 — Forfeited ( 23,220 ) 13.29 — Outstanding at September 30, 2022 702,665 $ 17.52 1.22 |
Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model | September 30, 2022 2021 Risk-free interest rate 1.94 % 1.19 % Expected dividend yield — — Expected volatility 45.10 % 45.61 % Expected lives (years) 6.3 6.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | For the three months ended September 30, 2022 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 $ 30,604 56,429,425 $ 0.54 Effect of dilutive securities Common stock options and restricted stock units — 578,799 — Diluted earnings per share Net earnings available to common shareholders $ 30,604 57,008,224 $ 0.54 Stock options for 407,604 shares, exercisable at prices between $ 6.87 and $ 10.45 per share, were outstanding at September 30, 2022, and included in the diluted earnings per share computation because the exercise price per share was less than the average market price . Stock options for 200,000 shares were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2022 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 $ 89,972 56,782,524 $ 1.58 Effect of dilutive securities Common stock options and restricted stock units — 728,462 ( 0.02 ) Diluted earnings per share Net earnings available to common shareholders $ 89,972 57,510,986 $ 1.56 Stock options for 407,604 shares, exercisable at prices between $ 6.87 and $ 10.45 per share, were outstanding at September 30, 2022, and included in the diluted earnings per share computation because the exercise price per share was less than the average market price . Stock options for 200,000 shares were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 2021 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 $ 28,195 57,198,778 $ 0.49 Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,195 58,628,306 $ 0.48 For the three months ended September 30, 2021 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 $ 66 57,198,778 $ — Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 — Diluted earnings per share Net earnings available to common shareholders $ 66 58,628,306 $ — For the three months ended September 30, 2021 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 $ 28,261 57,198,778 $ 0.49 Effect of dilutive securities Common stock options and restricted stock units — 1,429,528 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,261 58,628,306 $ 0.48 Notes: The total of diluted earnings per share from continuing and discontinued operations does not equal diluted earnings per share due to rounding. In 2022, after reclassification of discontinued assets to continuing operations, there was no further income or expense for discontinued operations. Stock options for 504,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at September 30, 2021, and included in the dilutive earnings per share computation. Stock options for 100,000 shares were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2021 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 $ 83,413 57,221,174 $ 1.45 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 ( 0.04 ) Diluted earnings per share Net earnings available to common shareholders $ 83,413 58,932,146 $ 1.41 For the nine months ended September 30, 2021 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 $ 248 57,221,174 $ 0.01 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 — Diluted earnings per share Net earnings available to common shareholders $ 248 58,932,146 $ 0.01 For the nine months ended September 30, 2021 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 $ 83,661 57,221,174 $ 1.46 Effect of dilutive securities Common stock options and restricted stock units — 1,710,972 ( 0.04 ) Diluted earnings per share Net earnings available to common shareholders $ 83,661 58,932,146 $ 1.42 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment Securities [Abstract] | |
Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity | Available-for-sale September 30, 2022 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 25,872 $ 14 $ ( 1,604 ) $ 24,282 Asset-backed securities * 354,690 — ( 13,709 ) 340,981 Tax-exempt obligations of states and political subdivisions 3,559 — ( 102 ) 3,457 Taxable obligations of states and political subdivisions 45,696 54 ( 1,718 ) 44,032 Residential mortgage-backed securities 154,920 120 ( 10,726 ) 144,314 Collateralized mortgage obligation securities 46,479 — ( 1,717 ) 44,762 Commercial mortgage-backed securities 194,856 — ( 12,890 ) 181,966 Corporate debt securities 10,000 — ( 3,200 ) 6,800 $ 836,072 $ 188 $ ( 45,666 ) $ 790,594 September 30, 2022 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 18,692 $ — $ ( 244 ) $ 18,448 Collateralized loan obligation securities 335,998 — ( 13,465 ) 322,533 $ 354,690 $ — $ ( 13,709 ) $ 340,981 Available-for-sale December 31, 2021 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 36,182 $ 1,167 $ ( 47 ) $ 37,302 Asset-backed securities * 360,332 327 ( 241 ) 360,418 Tax-exempt obligations of states and political subdivisions 3,559 172 — 3,731 Taxable obligations of states and political subdivisions 45,984 2,422 — 48,406 Residential mortgage-backed securities 179,778 4,804 ( 281 ) 184,301 Collateralized mortgage obligation securities 60,778 1,083 — 61,861 Commercial mortgage-backed securities 248,599 4,106 ( 1,629 ) 251,076 Corporate debt securities 10,000 — ( 3,386 ) 6,614 $ 945,212 $ 14,081 $ ( 5,584 ) $ 953,709 December 31, 2021 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 22,518 $ 13 $ ( 73 ) $ 22,458 Collateralized loan obligation securities 337,814 314 ( 168 ) 337,960 $ 360,332 $ 327 $ ( 241 ) $ 360,418 |
Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity | Available-for-sale Amortized Fair cost value Due before one year $ 27,387 $ 27,232 Due after one year through five years 144,209 137,727 Due after five years through ten years 229,430 219,888 Due after ten years 435,046 405,747 $ 836,072 $ 790,594 |
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 12 $ 20,101 $ ( 1,571 ) $ 2,409 $ ( 33 ) $ 22,510 $ ( 1,604 ) Asset-backed securities 58 179,430 ( 5,571 ) 161,551 ( 8,138 ) 340,981 ( 13,709 ) Tax-exempt obligations of states and political subdivisions 4 3,457 ( 102 ) — — 3,457 ( 102 ) Taxable obligations of states and political subdivisions 26 39,727 ( 1,718 ) — — 39,727 ( 1,718 ) Residential mortgage-backed securities 132 124,133 ( 9,413 ) 8,513 ( 1,313 ) 132,646 ( 10,726 ) Collateralized mortgage obligation securities 22 44,762 ( 1,717 ) — — 44,762 ( 1,717 ) Commercial mortgage-backed securities 43 143,893 ( 7,450 ) 38,073 ( 5,440 ) 181,966 ( 12,890 ) Corporate debt securities 1 — — 6,800 ( 3,200 ) 6,800 ( 3,200 ) Total unrealized loss position investment securities 298 $ 555,503 $ ( 27,542 ) $ 217,346 $ ( 18,124 ) $ 772,849 $ ( 45,666 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2021 (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 2 $ — $ — $ 2,700 $ ( 47 ) $ 2,700 $ ( 47 ) Asset-backed securities 42 243,598 ( 235 ) 1,197 ( 6 ) 244,795 ( 241 ) Residential mortgage-backed securities 30 21,640 ( 159 ) 5,160 ( 122 ) 26,800 ( 281 ) Commercial mortgage-backed securities 12 3,334 ( 43 ) 91,355 ( 1,586 ) 94,689 ( 1,629 ) Corporate debt securities 1 — — 6,614 ( 3,386 ) 6,614 ( 3,386 ) Total unrealized loss position investment securities 87 $ 268,572 $ ( 437 ) $ 107,026 $ ( 5,147 ) $ 375,598 $ ( 5,584 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans [Abstract] | |
Major Classifications Of Loans | September 30, December 31, 2022 2021 SBL non-real estate $ 116,080 $ 147,722 SBL commercial mortgage 429,865 361,171 SBL construction 26,841 27,199 Small business loans 572,786 536,092 Direct lease financing 599,796 531,012 SBLOC / IBLOC * 2,369,106 1,929,581 Advisor financing ** 168,559 115,770 Real estate bridge loans 1,488,119 621,702 Other loans *** 64,980 5,014 5,263,346 3,739,171 Unamortized loan fees and costs 4,029 8,053 Total loans, including unamortized loan fees and costs $ 5,267,375 $ 3,747,224 September 30, December 31, 2022 2021 SBL loans, including costs net of deferred fees of $ 6,370 and $ 5,345 for September 30, 2022 and December 31, 2021, respectively $ 579,156 $ 541,437 SBL loans included in commercial loans, at fair value 159,914 199,585 Total small business loans **** $ 739,070 $ 741,022 * Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $ 1.10 billion and $ 788.3 million. ** In 2020 the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. *** Includes demand deposit overdrafts reclassified as loan balances totaling $ 1.0 million and $ 322,000 at September 30, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial. September 30, 2022 includes $ 54.2 million of balances previously included in discontinued assets including $ 19.5 million of residential mortgage loans, with the balance comprised of commercial loans. **** The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated (in thousands). |
Impaired Loans | September 30, 2022 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 357 $ 3,526 $ — $ 385 $ 7 SBL commercial mortgage — — — 56 — Direct lease financing — — — 66 — Other loans 3,552 3,552 — 1,184 113 Consumer - home equity 298 298 — 309 7 With an allowance recorded SBL non-real estate 990 990 ( 594 ) 1,303 6 SBL commercial mortgage 1,423 1,423 ( 222 ) 1,006 — SBL construction 710 710 ( 34 ) 710 — Other loans 592 592 ( 13 ) 2,974 — Total SBL non-real estate 1,347 4,516 ( 594 ) 1,688 13 SBL commercial mortgage 1,423 1,423 ( 222 ) 1,062 — SBL construction 710 710 ( 34 ) 710 — Direct lease financing — — — 66 — Other loans 4,144 4,144 ( 13 ) 4,158 113 Consumer - home equity 298 298 — 309 7 $ 7,922 $ 11,091 $ ( 863 ) $ 7,993 $ 133 December 31, 2021 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 409 $ 3,414 $ — $ 412 $ 5 SBL commercial mortgage 223 246 — 1,717 — Direct lease financing 254 254 — 430 — Consumer - home equity 320 320 — 458 8 With an allowance recorded SBL non-real estate 1,478 1,478 ( 829 ) 2,267 13 SBL commercial mortgage 589 589 ( 115 ) 2,634 — SBL construction 710 710 ( 34 ) 711 — Direct lease financing — — — 132 — Consumer - other — — — 5 — Total SBL non-real estate 1,887 4,892 ( 829 ) 2,679 18 SBL commercial mortgage 812 835 ( 115 ) 4,351 — SBL construction 710 710 ( 34 ) 711 — Direct lease financing 254 254 — 562 — Consumer - other — — — 5 — Consumer - home equity 320 320 — 458 8 $ 3,983 $ 7,011 $ ( 978 ) $ 8,766 $ 26 |
Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses | September 30, 2022 December 31, 2021 Non-accrual loans with a related ACL Non-accrual loans without a related ACL Total non-accrual loans Total non-accrual loans SBL non-real estate $ 861 $ 216 $ 1,077 $ 1,313 SBL commercial mortgage 1,423 — 1,423 812 SBL construction 710 — 710 710 Direct leasing — — — 254 Consumer - home equity — 58 58 72 Other loans 592 — 592 — $ 3,586 $ 274 $ 3,860 $ 3,161 |
Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category | September 30, December 31, 2022 2021 (Dollars in thousands) Non-accrual loans SBL non-real estate $ 1,077 $ 1,313 SBL commercial mortgage 1,423 812 SBL construction 710 710 Direct leasing — 254 Other loans 592 — Consumer - home equity 58 72 Total non-accrual loans 3,860 3,161 Loans past due 90 days or more and still accruing 4,415 461 Total non-performing loans 8,275 3,622 Other real estate owned 18,873 18,873 Total non-performing assets $ 27,148 $ 22,495 |
Loans Modified And Considered Troubled Debt Restructurings | September 30, 2022 December 31, 2021 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 8 $ 657 $ 657 9 $ 1,231 $ 1,231 SBL commercial mortgage 1 834 834 — — — Other loans 1 3,552 3,552 — — — Consumer - home equity 1 241 241 1 248 248 Total (1) 11 $ 5,284 $ 5,284 10 $ 1,479 $ 1,479 |
Loans Modified As Troubled Debt Restructurings | September 30, 2022 December 31, 2021 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ — $ — $ 657 $ — $ — $ 1,231 SBL commercial mortgage — — 834 — — — Other loans — — 3,552 — — — Consumer - home equity — — 241 — — 248 Total (1) $ — $ — $ 5,284 $ — $ — $ 1,479 |
Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted | September 30, 2022 Number Pre-modification recorded investment SBL non-real estate 1 $ 334 Total 1 $ 334 |
Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade | As of September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated* $ 4,135 $ 6,321 $ 306 $ — $ — $ — $ — $ 10,762 Pass 23,140 30,941 14,209 7,568 6,756 6,782 — 89,396 Special mention — — — — 603 303 — 906 Substandard — — 334 190 — 2,819 — 3,343 Total SBL non-real estate 27,275 37,262 14,849 7,758 7,359 9,904 — 104,407 SBL commercial mortgage Non-rated 15,964 — — — — — — 15,964 Pass 68,176 99,428 58,784 65,792 42,986 69,141 — 404,307 Special mention — — 141 1,853 — 644 — 2,638 Substandard — — — — 834 589 — 1,423 Total SBL commercial mortgage 84,140 99,428 58,925 67,645 43,820 70,374 — 424,332 SBL construction Non-rated 286 — — — — — — 286 Pass 1,751 11,633 9,756 2,704 — — — 25,844 Substandard — — — — — 710 — 710 Total SBL construction 2,037 11,633 9,756 2,704 — 710 — 26,840 Direct lease financing Non-rated 65,992 33,930 9,081 1,302 508 146 — 110,959 Pass 189,365 145,489 98,078 36,550 12,753 3,274 — 485,509 Special mention 31 — 68 — 9 — — 108 Substandard 1,598 653 951 18 — — — 3,220 Total direct lease financing 256,986 180,072 108,178 37,870 13,270 3,420 — 599,796 SBLOC Non-rated — — — — — — 830 830 Pass — — — — — — 1,264,187 1,264,187 Total SBLOC — — — — — — 1,265,017 1,265,017 IBLOC Non-rated — — — — — — 548,178 548,178 Pass — — — — — — 555,911 555,911 Total IBLOC — — — — — — 1,104,089 1,104,089 Advisor financing Non-rated 17,259 3,712 — — — — — 20,971 Pass 41,498 66,560 39,530 — — — — 147,588 Total advisor financing 58,757 70,272 39,530 — — — — 168,559 Real estate bridge loans Pass 840,423 647,696 — — — — — 1,488,119 Total real estate bridge loans 840,423 647,696 — — — — — 1,488,119 Other loans Non-rated 3,774 37 62 — — 21,714 522 26,109 Pass 227 368 2,612 2,794 3,741 40,930 1,205 51,877 Special mention — — — — — 3,552 — 3,552 Substandard — — — — — 592 57 649 Total other loans** 4,001 405 2,674 2,794 3,741 66,788 1,784 82,187 $ 1,273,619 $ 1,046,768 $ 233,912 $ 118,771 $ 68,190 $ 151,196 $ 2,370,890 $ 5,263,346 Unamortized loan fees and costs — — — — — — — 4,029 Total $ 5,267,375 * Included in the SBL non real estate non-rated total of $ 10.8 million, were $ 6.6 million of PPP loans. ** Included in Other loans are $ 17.2 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of September 30, 2022. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated* $ 39,318 $ 7,257 $ — $ — $ — $ — $ — $ 46,575 Pass 34,172 15,934 8,794 8,988 5,088 9,809 — 82,785 Special mention — — 99 666 — 859 — 1,624 Substandard — — — 18 848 895 — 1,761 Total SBL non-real estate 73,490 23,191 8,893 9,672 5,936 11,563 — 132,745 SBL commercial mortgage Non-rated 10,963 — — — — — — 10,963 Pass 79,166 57,554 75,290 43,820 37,607 46,016 — 339,453 Special mention — 141 1,853 — — 247 — 2,241 Substandard — — — — — 812 — 812 Total SBL commercial mortgage 90,129 57,695 77,143 43,820 37,607 47,075 — 353,469 SBL construction Pass 6,869 12,629 1,880 5,111 — — — 26,489 Substandard — — — — — 710 — 710 Total SBL construction 6,869 12,629 1,880 5,111 — 710 — 27,199 . Direct lease financing Non-rated 56,152 13,271 1,933 1,115 355 104 — 72,930 Pass 214,780 145,256 58,337 26,662 8,574 2,105 — 455,714 Special mention — — — 22 38 — — 60 Substandard 526 1,679 38 22 31 12 — 2,308 Total direct lease financing 271,458 160,206 60,308 27,821 8,998 2,221 — 531,012 SBLOC Non-rated — — — — — — 3,176 3,176 Pass — — — — — — 1,138,140 1,138,140 Total SBLOC — — — — — — 1,141,316 1,141,316 IBLOC Non-rated — — — — — — 346,604 346,604 Pass — — — — — — 441,661 441,661 Total IBLOC — — — — — — 788,265 788,265 Advisor financing Non-rated 38,330 258 — — — — — 38,588 Pass 33,776 43,406 — — — — — 77,182 Total advisor financing 72,106 43,664 — — — — — 115,770 Real estate bridge loans Pass 621,702 — — — — — — 621,702 Total real estate bridge loans 621,702 — — — — — — 621,702 Other loans Non-rated 396 152 — — — 216 656 1,420 Pass 373 113 3,081 4,553 5,212 11,604 1,264 26,200 Substandard — — — — — — 73 73 Total other loans** 769 265 3,081 4,553 5,212 11,820 1,993 27,693 Total $ 1,136,523 $ 297,650 $ 151,305 $ 90,977 $ 57,753 $ 73,389 $ 1,931,574 $ 3,739,171 Unamortized loan fees and costs — — — — — — — 8,053 Total $ 3,747,224 * Included in the SBL non real estate non-rated total of $ 46.6 million, were $ 44.8 million of PPP loans which are government guaranteed. ** Included in Other loans are $ 22.7 million of SBA loans purchased for CRA purposes as of December 31, 2021. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. |
Changes In Allowance For Loan And Lease Losses By Loan Category | September 30, 2022 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Unallocated** Total Beginning 1/1/2022 $ 5,415 $ 2,952 $ 432 $ 5,817 $ 964 $ 868 $ 1,181 $ 177 $ — $ 17,806 Charge-offs ( 861 ) — — ( 312 ) — — — — — ( 1,173 ) Recoveries 57 — — 108 — — — — — 165 Provision (credit)* 300 ( 794 ) ( 6 ) 682 220 396 1,602 491 — 2,891 Ending balance $ 4,911 $ 2,158 $ 426 $ 6,295 $ 1,184 $ 1,264 $ 2,783 $ 668 $ — $ 19,689 Ending balance: Individually evaluated for expected credit loss $ 594 $ 222 $ 34 $ — $ — $ — $ — $ 13 $ — $ 863 Ending balance: Collectively evaluated for expected credit loss $ 4,317 $ 1,936 $ 392 $ 6,295 $ 1,184 $ 1,264 $ 2,783 $ 655 $ — $ 18,826 Loans: Ending balance** $ 116,080 $ 429,865 $ 26,841 $ 599,796 $ 2,369,106 $ 168,559 $ 1,488,119 $ 64,980 $ 4,029 $ 5,267,375 Ending balance: Individually evaluated for expected credit loss $ 1,347 $ 1,423 $ 710 $ — $ — $ — $ — $ 4,442 $ — $ 7,922 Ending balance: Collectively evaluated for expected credit loss $ 114,733 $ 428,442 $ 26,131 $ 599,796 $ 2,369,106 $ 168,559 $ 1,488,119 $ 60,538 $ 4,029 $ 5,259,453 December 31, 2021 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Unallocated** Total Beginning balance 1/1/2021 $ 5,060 $ 3,315 $ 328 $ 6,043 $ 775 $ 362 $ — $ 199 $ — $ 16,082 Charge-offs ( 1,138 ) ( 417 ) — ( 412 ) ( 15 ) — — ( 24 ) — ( 2,006 ) Recoveries 51 9 — 58 — — — 1,099 — 1,217 Provision (reversal of)* 1,442 45 104 128 204 506 1,181 ( 1,097 ) — 2,513 Ending balance $ 5,415 $ 2,952 $ 432 $ 5,817 $ 964 $ 868 $ 1,181 $ 177 $ — $ 17,806 Ending balance: Individually evaluated for expected credit loss $ 829 $ 115 $ 34 $ — $ — $ — $ — $ — $ — $ 978 Ending balance: Collectively evaluated for expected credit loss $ 4,586 $ 2,837 $ 398 $ 5,817 $ 964 $ 868 $ 1,181 $ 177 $ — $ 16,828 Loans: Ending balance** $ 147,722 $ 361,171 $ 27,199 $ 531,012 $ 1,929,581 $ 115,770 $ 621,702 $ 5,014 $ 8,053 $ 3,747,224 Ending balance: Individually evaluated for expected credit loss $ 1,887 $ 812 $ 710 $ 254 $ — $ — $ — $ 320 $ — $ 3,983 Ending balance: Collectively evaluated for expected credit loss $ 145,835 $ 360,359 $ 26,489 $ 530,758 $ 1,929,581 $ 115,770 $ 621,702 $ 4,694 $ 8,053 $ 3,743,241 September 30, 2021 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Unallocated** Total Beginning 1/1/2021 $ 5,060 $ 3,315 $ 328 $ 6,043 $ 775 $ 362 $ — $ 199 $ — $ 16,082 Charge-offs ( 896 ) ( 23 ) — ( 248 ) ( 15 ) — — ( 10 ) — ( 1,192 ) Recoveries 18 9 — 50 — — — — — 77 Provision (reversal of)* 1,196 ( 506 ) 42 ( 208 ) 157 247 245 19 — 1,192 Ending balance $ 5,378 $ 2,795 $ 370 $ 5,637 $ 917 $ 609 $ 245 208 $ — $ 16,159 Ending balance: Individually evaluated for expected credit loss $ 1,163 $ 510 $ 34 $ 91 $ — $ — $ — $ 14 $ — $ 1,812 Ending balance: Collectively evaluated for expected credit loss $ 4,215 $ 2,285 $ 336 $ 5,546 $ 917 $ 609 $ 245 $ 194 $ — $ 14,347 Loans: Ending balance** $ 171,845 $ 367,272 $ 23,117 $ 514,068 $ 1,834,523 $ 81,143 $ 128,699 $ 4,917 $ 11,078 $ 3,136,662 Ending balance: Individually evaluated for expected credit loss $ 2,233 $ 3,167 $ 711 $ 430 $ — $ — $ — $ 339 $ — $ 6,880 Ending balance: Collectively evaluated for expected credit loss $ 169,612 $ 364,105 $ 22,406 $ 513,638 $ 1,834,523 $ 81,143 $ 128,699 $ 4,578 $ 11,078 $ 3,129,782 * The amount shown as the provision for credit losses for the period reflects the provision on credit losses for loans, while the consolidated statements of operations provision for credit losses include provisions for unfunded commitments of $ 1.4 million, $ 292,000 and $ 597,000 , respectively, for the nine months ended September 30, 2022 and September 30, 2021, and for full year 2021. ** The ending balance for loans in the unallocated column represents deferred costs and fees. |
Scheduled Maturities of Direct Financing Leases | As of September 30, 2022 2022 2021 2020 2019 2018 Prior Total SBL non-real estate Current period charge-offs $ — $ — $ ( 16 ) $ — $ — $ ( 845 ) $ ( 861 ) Current period recoveries — — — — 3 54 57 Current period SBL non-real estate net charge-offs — — ( 16 ) — 3 ( 791 ) ( 804 ) SBL commercial mortgage Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period SBL commercial mortgage net charge-offs — — — — — — — SBL construction Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period SBL construction net charge-offs — — — — — — — Direct lease financing Current period charge-offs ( 31 ) ( 132 ) ( 123 ) ( 26 ) — — ( 312 ) Current period recoveries — — 101 7 — — 108 Current period direct lease financing net charge-offs ( 31 ) ( 132 ) ( 22 ) ( 19 ) — — ( 204 ) SBLOC Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period SBLOC net charge-offs — — — — — — — IBLOC Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period IBLOC net charge-offs — — — — — — — Advisor financing Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period advisor financing net charge-offs — — — — — — — Real estate bridge loans Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period real estate bridge loans net charge-offs — — — — — — — Other loans Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period other loans net recoveries — — — — — — — Total Current period charge-offs ( 31 ) ( 132 ) ( 139 ) ( 26 ) — ( 845 ) ( 1,173 ) Current period recoveries — — 101 7 3 54 165 Current period net charge-offs $ ( 31 ) $ ( 132 ) $ ( 38 ) $ ( 19 ) $ 3 $ ( 791 ) $ ( 1,008 ) |
Delinquent Loans By Loan Category | September 30, 2022 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 $ 1,715 $ 1,246 $ 370 $ 1,077 $ 4,408 $ 111,672 $ 116,080 SBL commercial mortgage 3,252 6 — 1,423 4,681 425,184 429,865 SBL construction — — — 710 710 26,131 26,841 Direct lease financing 1,799 1,392 49 — 3,240 596,556 599,796 SBLOC / IBLOC 3,175 227 — — 3,402 2,365,704 2,369,106 Advisor financing — — — — — 168,559 168,559 Real estate bridge loans — — — — — 1,488,119 1,488,119 Other loans 473 181 3,996 650 5,300 59,680 64,980 Unamortized loan fees and costs — — — — — 4,029 4,029 $ 10,414 $ 3,052 $ 4,415 $ 3,860 $ 21,741 $ 5,245,634 $ 5,267,375 December 31, 2021 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 $ 1,375 $ 3,138 $ 441 $ 1,313 $ 6,267 $ 141,455 $ 147,722 SBL commercial mortgage — 220 — 812 1,032 360,139 361,171 SBL construction — — — 710 710 26,489 27,199 Direct lease financing 1,833 692 20 254 2,799 528,213 531,012 SBLOC / IBLOC 5,985 289 — — 6,274 1,923,307 1,929,581 Advisor financing — — — — — 115,770 115,770 Real estate bridge loans — — — — — 621,702 621,702 Other loans — — — 72 72 4,942 5,014 Unamortized loan fees and costs — — — — — 8,053 8,053 $ 9,193 $ 4,339 $ 461 $ 3,161 $ 17,154 $ 3,730,070 $ 3,747,224 |
Scheduled Maturities Of Direct Financing Leases | Remaining 2022 $ 47,438 2023 160,895 2024 136,205 2025 81,108 2026 46,765 2027 and thereafter 17,435 Total undiscounted cash flows 489,846 Residual value * 167,946 Difference between undiscounted cash flows and discounted cash flows ( 57,996 ) Present value of lease payments recorded as lease receivables $ 599,796 * Of the $ 167,946,000 , $ 29,984,000 is not guaranteed by the lessee or other guarantors. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 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 $ 790,594 $ 790,594 $ — $ 771,597 $ 18,997 Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 818,040 818,040 — — 818,040 Loans, net of deferred loan fees and costs 5,267,375 5,254,340 — — 5,254,340 Interest rate swaps, asset 952 952 — 952 — Demand and interest checking 5,934,591 5,934,591 — 5,934,591 — Savings and money market 575,381 575,381 — 575,381 — Time deposits 401,331 401,331 — 401,331 — Senior debt 98,958 93,871 — 93,871 — Subordinated debentures 13,401 8,947 — — 8,947 Securities sold under agreements to repurchase 42 42 42 — — December 31, 2021 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 $ 953,709 $ 953,709 $ — $ 934,678 $ 19,031 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,663 1,663 — — 1,663 Commercial loans, at fair value 1,388,416 1,388,416 — — 1,388,416 Loans, net of deferred loan fees and costs 3,747,224 3,745,548 — — 3,745,548 Assets held-for-sale from discontinued operations 3,268 3,268 — — 3,268 Interest rate swaps, liability 553 553 — 553 — Demand and interest checking 5,561,365 5,561,365 — 5,561,365 — Savings and money market 415,546 415,546 — 415,546 — Senior debt 98,682 101,980 — 101,980 — Subordinated debentures 13,401 8,815 — — 8,815 Securities sold under agreements to repurchase 42 42 42 — — |
Changes In Company's Level 3 Assets | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans, securities at fair value September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Beginning balance $ 19,031 $ 178,951 $ 1,388,416 $ 1,810,812 Transfers from investment in unconsolidated entity — — — 22,926 Transfers from assets held-for-sale from discontinued operations — — — 61,580 Transfers to loans, net — — ( 61,580 ) — Total net (losses) or gains (realized/unrealized) Included in earnings — ( 44 ) 9,756 13,214 Included in other comprehensive loss ( 34 ) ( 1,422 ) — — Purchases, issuances, sales and settlements Issuances — — 36,877 127,765 Settlements — ( 158,454 ) ( 555,429 ) ( 647,881 ) Ending balance $ 18,997 $ 19,031 $ 818,040 $ 1,388,416 Total 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. $ — $ — $ ( 5,278 ) $ ( 2,133 ) The Company’s Level 3 asset activity for the categories shown 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, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Beginning balance $ — $ 31,294 $ 3,268 $ 113,650 Transfers to commercial loans, at fair value — ( 22,926 ) — ( 61,580 ) Transfers to other real estate owned — ( 2,145 ) — ( 17,343 ) Total (losses) or gains (realized/unrealized) Included in earnings — — — 1,102 Purchases, issuances, sales, settlements and charge-offs Issuances — — — 5,222 Sales — — — ( 2,020 ) Settlements — ( 6,223 ) ( 3,268 ) ( 35,750 ) Charge-offs — — — ( 13 ) Ending balance $ — $ — $ — $ 3,268 Total 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. $ — $ — $ — $ 566 |
Schedule Of Other Real Estate Owned | September 30, 2022 December 31, 2021 Beginning balance $ 18,873 $ — Transfers from investment in unconsolidated entity — 2,145 Sales — ( 615 ) Transfers from discontinued operations — 17,343 Ending balance $ 18,873 $ 18,873 |
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 Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs September 30, 2022 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 24,282 $ — $ 24,282 $ — Asset-backed securities 340,981 — 340,981 — Obligations of states and political subdivisions 47,489 — 47,489 — Residential mortgage-backed securities 144,314 — 144,314 — Collateralized mortgage obligation securities 44,762 — 44,762 — Commercial mortgage-backed securities 181,966 — 169,769 12,197 Corporate debt securities 6,800 — — 6,800 Total investment securities, available-for-sale 790,594 — 771,597 18,997 Commercial loans, at fair value 818,040 — — 818,040 Interest rate swaps, asset 952 — 952 — $ 1,609,586 $ — $ 772,549 $ 837,037 Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 37,302 $ — $ 37,302 $ — Asset-backed securities 360,418 — 360,418 — Obligations of states and political subdivisions 52,137 — 52,137 — Residential mortgage-backed securities 184,301 — 184,301 — Collateralized mortgage obligation securities 61,861 — 61,861 — Commercial mortgage-backed securities 251,076 — 238,659 12,417 Corporate debt securities 6,614 — — 6,614 Total investment securities, available-for-sale 953,709 — 934,678 19,031 Commercial loans, at fair value 1,388,416 — — 1,388,416 Assets held-for-sale from discontinued operations 3,268 — — 3,268 Interest rate swaps, liability 553 — 553 — $ 2,344,840 $ — $ 934,125 $ 1,410,715 |
Fair Value Inputs, Assets, Quantitative Information | : Level 3 instruments only Weighted Fair value at Range at average at September 30, 2022 Valuation techniques Unobservable inputs September 30, 2022 September 30, 2022 Commercial mortgage-backed investment security (a) $ 12,197 Discounted cash flow Discount rate 11.08 % 11.08 % Insurance liquidating trust preferred security (b) 6,800 Discounted cash flow Discount rate 10.82 % 10.82 % Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs (c) 5,254,340 Discounted cash flow Discount rate 5.00 %- 10.00 % 5.87 % Commercial - SBA (d) 159,914 Discounted cash flow Discount rate 3.85 %- 5.07 % 4.95 % Non-SBA CRE - fixed (e) 62,923 Discounted cash flow and appraisal Discount rate 8.26 %- 19.23 % 12.34 % Non-SBA CRE - floating (f) 595,203 Discounted cash flow Discount rate 5.56 %- 16.00 % 6.26 % Commercial loans, at fair value 818,040 Subordinated debentures (g) 8,947 Discounted cash flow Discount rate 11.05 % 11.05 % Other real estate owned (h) 18,873 Appraised value N/A N/A N/A Level 3 instruments only Weighted Fair value at Range at average at December 31, 2021 Valuation techniques Unobservable inputs December 31, 2021 December 31, 2021 Commercial mortgage-backed investment security $ 12,417 Discounted cash flow Discount rate 8.00 % 8.00 % Insurance liquidating trust preferred security 6,614 Discounted cash flow Discount rate 7.00 % 7.00 % Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,663 Cost N/A N/A N/A Loans, net of deferred loan fees and costs 3,745,548 Discounted cash flow Discount rate 1.00 % - 7.00 % 3.70 % Commercial - SBA 199,585 Discounted cash flow Discount rate 1.04 % - 2.12 % $ 103.40 Non-SBA CRE - fixed 79,864 Discounted cash flow Discount rate 5.31 %- 7.43 % 6.26 % Non-SBA CRE - floating 1,047,387 Discounted cash flow Discount rate 3.96 %- 10.20 % 4.96 % Other loans 61,580 Discounted cash flow Discount rate 3.18 %- 6.80 % 4.36 % Commercial loans, at fair value 1,388,416 Assets held-for-sale from discontinued operations 3,268 Discounted cash flow Discount rate 3.18 %- 6.80 % 4.36 % Subordinated debentures 8,815 Discounted cash flow Discount rate 7.00 % 7.00 % Other real estate owned 18,873 Appraised value N/A N/A N/A The valuations for each of the instruments above, as of the balance sheet date, are subject to judgments, assumptions and uncertainties, changes in which could have a significant impact on such valuations. Weighted averages were calculated by using the discount rate for each individual security or loan weighted by its market value, except for SBA loans. For SBA loans, the yields derived from market pricing indications for pools determined by date of loan origination were weighted. For commercial loans recorded at fair value, changes in fair value are reflected in the income statement. Changes in the fair value of securities which are unrelated to credit are recorded through equity. Changes in the fair value of loans recorded at amortized cost which are unrelated to credit are a disclosure item, without impact on the financial statements. The notes below refer to the September 30, 2022 table. a) Commercial mortgage-backed investment security, consisting of a single Bank issued CRE security, is valued using discounted cash flow analysis. The discount rate and prepayment rate applied are based upon market observations and actual experience for comparable securities and implicitly assume market averages for defaults and loss severities. The security has significant credit enhancement, or protection from other tranches in the issue, which limits the valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce its value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on this holding in future periods and impact its fair value. As a single security, the weighted average rate shown is the actual rate applied to the security. b) Insurance liquidating trust preferred security is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. c) Loans, net of deferred loan fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. d) Commercial-SBA Loans are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon the yield derived from dealer pricing indications for guaranteed pools, adjusted for seasoning and prepayments. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. Such assumptions for both poolable and seasoned loans are based on a seasoning vector for constant prepayment rates from 3 % to 30 % over life. e) Non-SBA CRE-fixed are fixed rate non-SBA commercial real estate mortgages. These loans are fair valued by a third party, based upon discounting at market rates for similar loans, except for one loan which is fair valued on the basis of an appraisal. Discount rates used in applying discounted cash flow analysis utilize input based upon loan terms, the general level of interest rates and the quality of the credit. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. The loan which is valued on the basis of an appraisal has a fair value of $ 4.8 million, an outstanding principal balance of $ 9.5 million and is discussed in Note 6. f) Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties (apartments). These are bridge loans designed to provide owners time and funding for property improvements and are generally valued using discounted cash flow analysis. The discount rate for the vast majority of these loans was based upon current origination rates for similar loans. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. At September 30, 2022, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. g) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in valuation. h) For other real estate owned, fair value is based upon appraisals of the underlying collateral by third party appraisers, reduced by 7 % to 10 % for estimated selling costs. Such appraisals reflect estimates of amounts realizable upon property sales based on the sale of comparable properties and other factors. Actual sales prices may vary based upon the identification of potential purchasers, changing conditions in local real estate markets and the level of interest rates required to finance purchases. |
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 (1) Description September 30, 2022 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 7,059 $ — $ — $ 7,059 Other real estate owned 18,873 — — 18,873 Intangible assets 2,149 — — 2,149 $ 28,081 $ — $ — $ 28,081 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description December 31, 2021 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 3,005 $ — $ — $ 3,005 Other real estate owned 18,873 — — 18,873 Intangible assets 2,447 — — 2,447 $ 24,325 $ — $ — $ 24,325 1. The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for other real estate owned was the market 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, 2022 | |
Derivatives [Abstract] | |
Summary Of Derivatives | September 30, 2022 Maturity date Notional amount Interest rate paid Interest rate received Fair value December 23, 2025 6,800 2.16 % 3.60 % 433 December 24, 2025 8,200 2.17 % 3.64 % 519 Total $ 15,000 $ 952 |
Other Identifiable Intangible_2
Other Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Identifiable Intangible Assets [Abstract] | |
Schedule Of Gross Carrying Value And Accumulated Amortization | September 30, December 31, 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer list intangibles $ 4,093 $ 2,342 $ 4,093 $ 2,044 Goodwill 263 — 263 — Trade Name 135 — 135 — Total $ 4,491 $ 2,342 $ 4,491 $ 2,044 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Matters [Abstract] | |
Schedule Of Regulatory Capital Amounts | Tier 1 capital Tier 1 capital Total capital Common equity to average to risk-weighted to risk-weighted tier 1 to risk assets ratio assets ratio assets ratio weighted assets As of September 30, 2022 The Bancorp, Inc. 9.66 % 13.13 % 13.56 % 13.13 % The Bancorp Bank, National Association 10.79 % 14.73 % 15.15 % 14.73 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % As of December 31, 2021 The Bancorp, Inc. 10.40 % 14.72 % 15.13 % 14.72 % The Bancorp Bank, National Association 10.98 % 15.48 % 15.88 % 15.48 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % |
Segment Financials (Tables)
Segment Financials (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Financials [Abstract] | |
Schedule Of Segment Financials | For the three months ended September 30, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 75,041 $ 34 $ 8,846 $ — $ 83,921 Interest allocation ( 17,747 ) 17,154 593 — — Interest expense 940 13,981 4,341 — 19,262 Net interest income 56,354 3,207 5,098 — 64,659 Provision for credit losses 822 — — — 822 Non-interest income 1,952 21,440 34 — 23,426 Non-interest expense 18,292 17,348 9,190 — 44,830 Income (loss) before taxes 39,192 7,299 ( 4,058 ) — 42,433 Income tax expense — — 11,829 — 11,829 Net income (loss) $ 39,192 $ 7,299 $ ( 15,887 ) $ — $ 30,604 For the three months ended September 30, 2021 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 46,313 $ — $ 7,187 $ — $ 53,500 Interest allocation ( 4,314 ) 5,155 ( 841 ) — — Interest expense 239 916 1,452 — 2,607 Net interest income 41,760 4,239 4,894 — 50,893 Provision for credit losses 1,613 — — — 1,613 Non-interest income 6,408 20,166 14 — 26,588 Non-interest expense 16,452 16,286 6,646 — 39,384 Income (loss) from continuing operations before taxes 30,103 8,119 ( 1,738 ) — 36,484 Income tax expense — — 8,289 — 8,289 Income (loss) from continuing operations 30,103 8,119 ( 10,027 ) — 28,195 Income from discontinued operations — — — 66 66 Net income (loss) $ 30,103 $ 8,119 $ ( 10,027 ) $ 66 $ 28,261 For the nine months ended September 30, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 179,700 $ 89 $ 21,596 $ — $ 201,385 Interest allocation ( 28,300 ) 28,565 ( 265 ) — — Interest expense 1,429 19,989 7,886 — 29,304 Net interest income 149,971 8,665 13,445 — 172,081 Provision for credit losses 4,331 — — — 4,331 Non-interest income 11,496 64,524 3,923 — 79,943 Non-interest expense 53,071 51,529 21,427 — 126,027 Income (loss) before taxes 104,065 21,660 ( 4,059 ) — 121,666 Income tax expense — — 31,694 — 31,694 Net income (loss) $ 104,065 $ 21,660 $ ( 35,753 ) $ — $ 89,972 For the nine months ended September 30, 2021 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Interest income $ 143,549 $ — $ 23,854 $ — $ 167,403 Interest allocation ( 12,713 ) 15,438 ( 2,725 ) — — Interest expense 723 3,298 4,663 — 8,684 Net interest income 130,113 12,140 16,466 — 158,719 Provision for credit losses 1,484 — — — 1,484 Non-interest income 13,864 62,600 59 — 76,523 Non-interest expense 50,844 52,666 21,640 — 125,150 Income (loss) from continuing operations before taxes 91,649 22,074 ( 5,115 ) — 108,608 Income tax expense — — 25,195 — 25,195 Income (loss) from continuing operations 91,649 22,074 ( 30,310 ) — 83,413 Income from discontinued operations — — — 248 248 Net income (loss) $ 91,649 $ 22,074 $ ( 30,310 ) $ 248 $ 83,661 September 30, 2022 Specialty finance Payments Corporate Discontinued operations Total (Dollars in thousands) Total assets $ 6,061,700 $ 59,561 $ 1,655,813 $ — $ 7,777,074 Total liabilities $ 368,932 $ 5,724,483 $ 1,019,921 $ — $ 7,113,336 December 31, 2021 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 5,099,388 $ 41,593 $ 1,698,990 $ 3,268 $ 6,843,239 Total liabilities $ 329,372 $ 5,312,115 $ 549,298 $ — $ 6,190,785 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2022 2021 Interest income $ — $ 754 $ — $ 2,388 Interest expense — — — — Net interest income — 754 — 2,388 Non-interest income — 48 — 51 Non-interest expense — 715 — 2,115 Income before taxes — 87 — 324 Income tax expense — 21 — 76 Net income $ — $ 66 $ — $ 248 The following table presents assets held-for-sale from discontinued operations at September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Commercial loans, at fair value $ — $ 2,907 Other real estate owned — 361 Total assets $ — $ 3,268 |
Organization And Nature Of Op_2
Organization And Nature Of Operations (Details) | Sep. 30, 2022 item |
Organization And Nature Of Operations [Abstract] | |
Number of specialty lending lines | 2 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification [Line Items] | ||||||
Loans held for investment | $ 5,247,686 | $ 5,247,686 | $ 3,729,418 | |||
Other real estate owned | 18,873 | 18,873 | 18,873 | $ 0 | ||
Net realized and unrealized gains on commercial loans, at fair value | 745 | $ 4,306 | 11,262 | $ 8,881 | ||
Provision for credit losses | 822 | $ 1,613 | 4,331 | $ 1,484 | ||
Commercial Portfolio Segment [Member] | ||||||
Reclassification [Line Items] | ||||||
Net realized and unrealized gains on commercial loans, at fair value | 3,500 | |||||
Increase in allowance for credit losses | 1,300 | |||||
Provision for credit losses | 3,500 | |||||
Allowance for loan commitments | 2,200 | 2,200 | ||||
Disposition Efforts, Reclassified [Member] | ||||||
Reclassification [Line Items] | ||||||
Loans held for investment | 61,600 | 61,600 | ||||
Other real estate owned | $ 17,300 | $ 17,300 | $ 17,300 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | item | 3 | 3 | ||
Unrecognized compensation cost related to unvested awards under share-based plans | $ | $ 10.3 | $ 10.3 | ||
Cost expected to be recognized over a weighted average period | 1 year 3 months 18 days | |||
Share-based Payment Arrangement, Expense | $ | $ 2.1 | $ 2.1 | $ 5.6 | $ 6.5 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 260,693 | 313,697 | ||
Granted (in dollars per share) | $ / shares | $ 28.61 | $ 18.81 | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | ||
Granted (in shares) | 219,311 | 261,073 | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year | ||
Granted (in shares) | 41,382 | 52,624 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 100,000 | 100,000 | ||
Options Granted (in dollars per share) | $ / shares | $ 14.01 | $ 8.51 | ||
Vesting period | 4 years | 4 years | ||
Stock option exercised (in shares) | 35,318 | 657,500 | ||
Options exercised and vested in period, total intrinsic value | $ | $ 14.7 | $ 25.3 | ||
Restricted Stock Units And Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards, vested in period, fair value | $ | $ 6 | $ 7.6 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Status Of Company's Equity Compensations Plans) (Details) - Stock Options [Member] - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Shares | |||
Outstanding, beginning of period (in shares) | 550,104 | ||
Granted (in shares) | 100,000 | 100,000 | |
Exercised (in shares) | (35,318) | (657,500) | |
Forfeited (in shares) | (7,182) | ||
Outstanding, end of period (in shares) | 607,604 | 550,104 | |
Exercisable, end of period (in shares) | 266,328 | ||
Weighted average exercise price | |||
Outstanding, beginning of period (in dollars per share) | $ 9.67 | ||
Granted (in dollars per share) | 30.32 | ||
Exercised (in dollars per share) | 8.84 | ||
Outstanding, end of period (in dollars per share) | 13.13 | $ 9.67 | |
Exercisable, end of period (in dollars per share) | $ 8.87 | ||
Weighted-average remaining contractual term (years) | |||
Granted | 9 years 4 months 13 days | ||
Outstanding | 7 years 4 months 24 days | 7 years 2 months 1 day | |
Exercisable, end of period | 6 years 3 months 21 days | ||
Aggregate intrinsic value | |||
Outstanding, beginning of period | $ 8,603,191 | ||
Granted | |||
Exercised | 808,850 | ||
Expired | |||
Forfeited | |||
Outstanding, end of period | 6,213,070 | $ 8,603,191 | |
Exercisable, end of period | $ 3,490,558 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 1,030,124 | ||
Granted (in shares) | 260,693 | 313,697 | |
Vested (in shares) | (564,932) | ||
Forfeited (in shares) | (23,220) | ||
Outstanding, end of period (in shares) | 702,665 | 1,030,124 | |
Weighted-average grant date fair value | |||
Outstanding, beginning of period (in dollars per share) | $ 10.49 | ||
Granted (in dollars per share) | 28.61 | $ 18.81 | |
Vested (in dollars per share) | 10.21 | ||
Forfeited (in dollars per share) | 13.29 | ||
Outstanding, end of period (in dollars per share) | $ 17.52 | $ 10.49 | |
Average remaining contractual term (years), Outstanding | 1 year 2 months 19 days | 1 year 2 months 1 day | |
Average remaining contractual term (years), Granted | 2 years 1 month 2 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, 2022 | Sep. 30, 2021 | |
Stock-Based Compensation [Abstract] | ||
Risk-free interest rate (in hundredths) | 1.94% | 1.19% |
Expected dividend yield (in hundredths) | ||
Expected volatility (in hundredths) | 45.10% | 45.61% |
Expected lives (years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Minimum exercisable prices (in dollars per share) | $ 6.87 | $ 6.87 | $ 6.87 | $ 6.87 |
Maximum exercisable prices (in dollars per share) | $ 10.45 | $ 18.81 | $ 10.45 | $ 18.81 |
Anti-dilutive shares not included in earnings per share calculation | 200,000 | 100,000 | 200,000 | 100,000 |
Exercise Price Range One [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options, outstanding, exercisable range | 407,604 | 504,104 | 407,604 | 504,104 |
Exercise Price Range Two [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options, outstanding, exercisable range | 407,604 | 504,104 | 407,604 | 504,104 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 30,604 | $ 28,261 | $ 89,972 | $ 83,661 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 30,604 | $ 28,261 | $ 89,972 | $ 83,661 |
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 56,429,425 | 57,198,778 | 56,782,524 | 57,221,174 |
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 578,799 | 1,429,528 | 728,462 | 1,710,972 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,008,224 | 58,628,306 | 57,510,986 | 58,932,146 |
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ 0.54 | $ 0.49 | $ 1.58 | $ 1.46 |
Effect of dilutive securities, Common stock options and restricted stock units (in dollars per share) | (0.01) | (0.02) | (0.04) | |
Net income per share - diluted | $ 0.54 | $ 0.48 | $ 1.56 | $ 1.42 |
Continuing Operations [Member] | ||||
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 28,195 | $ 83,413 | ||
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 28,195 | $ 83,413 | ||
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,198,778 | 57,221,174 | ||
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 1,429,528 | 1,710,972 | ||
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 58,628,306 | 58,932,146 | ||
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ 0.49 | $ 1.45 | ||
Effect of dilutive securities, Common stock options and restricted stock units (in dollars per share) | (0.01) | (0.04) | ||
Net income per share - diluted | $ 0.48 | $ 1.41 | ||
Discontinued Operations [Member] | ||||
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 66 | $ 248 | ||
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 66 | $ 248 | ||
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,198,778 | 57,221,174 | ||
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 1,429,528 | 1,710,972 | ||
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 58,628,306 | 58,932,146 | ||
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ 0.01 | |||
Net income per share - diluted | $ 0.01 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Investment in Federal Home Loan and Atlantic Central Bankers Bank stock recorded at cost | $ 12.6 | $ 1.7 |
Investment securities pledged as collateral | 0 | $ 0 |
Required Federal Reserve stock purchase | $ 11 | |
Number of securities with impairment that is other-than-temporary | security | 0 | |
Single Issuers [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Number of single issuer trust preferred securities | security | 1 | |
Book value | $ 10 | |
Fair value | $ 6.8 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available-for-sale [Abstract] | ||
Total | $ 836,072 | $ 945,212 |
Gross unrealized gains | 188 | 14,081 |
Gross unrealized losses | (45,666) | (5,584) |
Investment securities available-for-sale | 790,594 | 953,709 |
U.S. Government Agency Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 25,872 | 36,182 |
Gross unrealized gains | 14 | 1,167 |
Gross unrealized losses | (1,604) | (47) |
Investment securities available-for-sale | 24,282 | 37,302 |
Asset-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 354,690 | 360,332 |
Gross unrealized gains | 327 | |
Gross unrealized losses | (13,709) | (241) |
Investment securities available-for-sale | 340,981 | 360,418 |
Federally insured student loan securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 18,692 | 22,518 |
Gross unrealized gains | 13 | |
Gross unrealized losses | (244) | (73) |
Investment securities available-for-sale | 18,448 | 22,458 |
Collateralized Loan Obligations Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 335,998 | 337,814 |
Gross unrealized gains | 314 | |
Gross unrealized losses | (13,465) | (168) |
Investment securities available-for-sale | 322,533 | 337,960 |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Total | 3,559 | 3,559 |
Gross unrealized gains | 172 | |
Gross unrealized losses | (102) | |
Investment securities available-for-sale | 3,457 | 3,731 |
Taxable Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Total | 45,696 | 45,984 |
Gross unrealized gains | 54 | 2,422 |
Gross unrealized losses | (1,718) | |
Investment securities available-for-sale | 44,032 | 48,406 |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 154,920 | 179,778 |
Gross unrealized gains | 120 | 4,804 |
Gross unrealized losses | (10,726) | (281) |
Investment securities available-for-sale | 144,314 | 184,301 |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 46,479 | 60,778 |
Gross unrealized gains | 1,083 | |
Gross unrealized losses | (1,717) | |
Investment securities available-for-sale | 44,762 | 61,861 |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 194,856 | 248,599 |
Gross unrealized gains | 4,106 | |
Gross unrealized losses | (12,890) | (1,629) |
Investment securities available-for-sale | 181,966 | 251,076 |
Corporate Debt Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 10,000 | 10,000 |
Gross unrealized losses | (3,200) | (3,386) |
Investment securities available-for-sale | $ 6,800 | $ 6,614 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available-for-sale, Amortized cost [Abstract] | ||
Due before one year | $ 27,387 | |
Due after one year through five years | 144,209 | |
Due after five years through ten years | 229,430 | |
Due after ten years | 435,046 | |
Total | 836,072 | $ 945,212 |
Available-for-sale, Fair value [Abstract] | ||
Due before one year | 27,232 | |
Due after one year through five years | 137,727 | |
Due after five years through ten years | 219,888 | |
Due after ten years | 405,747 | |
Total investment securities, available-for-sale | $ 790,594 | $ 953,709 |
Investment Securities (Availabl
Investment Securities (Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 298 | 87 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 555,503 | $ 268,572 |
12 months or longer, Fair Value | 217,346 | 107,026 |
Total, Fair Value | 772,849 | 375,598 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (27,542) | (437) |
12 months or longer, Unrealized losses | (18,124) | (5,147) |
Total, Unrealized losses | $ (45,666) | $ (5,584) |
U.S. Government Agency Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 12 | 2 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 20,101 | |
12 months or longer, Fair Value | 2,409 | $ 2,700 |
Total, Fair Value | 22,510 | 2,700 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,571) | |
12 months or longer, Unrealized losses | (33) | (47) |
Total, Unrealized losses | $ (1,604) | $ (47) |
Asset-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 58 | 42 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 179,430 | $ 243,598 |
12 months or longer, Fair Value | 161,551 | 1,197 |
Total, Fair Value | 340,981 | 244,795 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (5,571) | (235) |
12 months or longer, Unrealized losses | (8,138) | (6) |
Total, Unrealized losses | $ (13,709) | $ (241) |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 4 | |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 3,457 | |
Total, Fair Value | 3,457 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (102) | |
Total, Unrealized losses | $ (102) | |
Taxable Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 26 | |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 39,727 | |
Total, Fair Value | 39,727 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,718) | |
Total, Unrealized losses | $ (1,718) | |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 132 | 30 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 124,133 | $ 21,640 |
12 months or longer, Fair Value | 8,513 | 5,160 |
Total, Fair Value | 132,646 | 26,800 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (9,413) | (159) |
12 months or longer, Unrealized losses | (1,313) | (122) |
Total, Unrealized losses | $ (10,726) | $ (281) |
Collateralized Mortgage Obligation Securities [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 | $ 44,762 | |
Total, Fair Value | 44,762 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,717) | |
Total, Unrealized losses | $ (1,717) | |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 43 | 12 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 143,893 | $ 3,334 |
12 months or longer, Fair Value | 38,073 | 91,355 |
Total, Fair Value | 181,966 | 94,689 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (7,450) | (43) |
12 months or longer, Unrealized losses | (5,440) | (1,586) |
Total, Unrealized losses | $ (12,890) | $ (1,629) |
Corporate Debt Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | 1 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 6,800 | $ 6,614 |
Total, Fair Value | 6,800 | 6,614 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (3,200) | (3,386) |
Total, Unrealized losses | $ (3,200) | $ (3,386) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) loan | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) item loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | Sep. 01, 2020 USD ($) | Dec. 31, 2019 item | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held for sale | $ 818,000,000 | $ 818,000,000 | |||||||
Loans available for sale, unpaid principal amount | 826,000,000 | 826,000,000 | |||||||
Gains (losses) recognized from changes in fair value | (5,300,000) | $ (285,000) | |||||||
Changes in fair value gain (loss) of loans, credit weaknesses amount | (6,400,000) | (15,000) | |||||||
Loans Receivable, Gross | 5,263,346,000 | 5,263,346,000 | $ 3,739,171,000 | ||||||
Unrealized loss to reflect write-down | 4,000,000 | ||||||||
Loan, disposition costs | 9,500,000 | ||||||||
Number of securities securitized | item | 6 | ||||||||
Other real estate owned | 18,873,000 | $ 18,873,000 | $ 18,873,000 | $ 0 | |||||
Number of troubled debt restructured loans | loan | [1] | 11 | 10 | ||||||
Interest which would have been earned on loans classified as non-accrual | $ 133,000 | 247,000 | |||||||
Commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings | 0 | 0 | $ 0 | ||||||
Non-accrual loans, income | 0 | ||||||||
Nonaccrual loans, Income Reversed | 208,000 | $ 39,000 | |||||||
Troubled debt restructured loans balance | [1] | 5,284,000 | 1,479,000 | ||||||
Financing receivable, troubled debt restructured loans, reserves | 447,000 | 447,000 | 476,000 | ||||||
Assets | 7,777,074,000 | 7,777,074,000 | 6,843,239,000 | ||||||
Purchase of lease receivables | 6,300,000 | ||||||||
Remaining balance of PPP loan reimbursed | 6,600,000 | 6,600,000 | |||||||
Foreclosed property | 20,900,000 | $ 20,900,000 | |||||||
Percent of credit enhancement | 50% | ||||||||
Total loans, gross | 5,263,346,000 | $ 5,263,346,000 | 3,739,171,000 | ||||||
Allowance for credit losses on off-balance sheet credit | 2,800,000 | 2,800,000 | 1,400,000 | ||||||
Federal Reserve Bank Advances [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 0 | 0 | |||||||
Federal Reserve Bank Advances [Member] | Asset Pledged as Collateral without Right [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 2,010,000,000 | 2,010,000,000 | |||||||
Federal Home Loan Bank Advances [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 0 | 0 | |||||||
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral without Right [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 1,410,000,000 | $ 1,410,000,000 | |||||||
Equity Securities [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 50% | ||||||||
Mutual Fund [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 50% | ||||||||
Debt Securities [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 80% | ||||||||
CRE2 [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 12,600,000 | $ 12,600,000 | |||||||
Number of senior tranches remaining | item | 1 | ||||||||
Excess credit support percent | 50% | ||||||||
Percent of remaining security balances incurred, prior to any loss | 50% | ||||||||
SBLOC [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Gains (losses) recognized from changes in fair value | $ 0 | ||||||||
Loans Receivable, Gross | 1,265,017,000 | $ 1,265,017,000 | 1,141,316,000 | ||||||
Construction Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Reduction from loans sold | $ (1,000,000) | ||||||||
Advisor Financing [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 168,559,000 | 168,559,000 | 115,770,000 | ||||||
Total loans, gross | [2] | 168,559,000 | $ 168,559,000 | 115,770,000 | |||||
Loan Amount, Loan-To-Value Ratio | 70% | ||||||||
SBL Non-Real Estate [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 104,407,000 | $ 104,407,000 | $ 132,745,000 | ||||||
Number of troubled debt restructured loans | loan | 8 | 9 | |||||||
Troubled debt restructured loans balance | $ 657,000 | $ 1,231,000 | |||||||
Total loans, gross | 116,080,000 | 116,080,000 | 147,722,000 | ||||||
Commercial Loan [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | $ 2,150,000,000 | $ 2,150,000,000 | |||||||
Number of securities securitized | loan | 3 | 3 | |||||||
Debt instrument term, extension period | 2 years | ||||||||
Excess credit support percent | 50% | ||||||||
Percent of remaining security balances incurred, prior to any loss | 50% | ||||||||
Remaining loans expected to be liquidated through sale | loan | 2 | ||||||||
Assets | $ 60,900,000 | $ 60,900,000 | $ 28,400,000 | ||||||
Due To Servicer | 573,000 | 573,000 | |||||||
Remaining Principal Amount To Be Repaid On Securities | 58,100,000 | 58,100,000 | |||||||
Total exposure in security | 25,000,000 | ||||||||
Commercial Loan [Member] | Apartment Building Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross | 2,050,000,000 | 2,050,000,000 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||||||
Financial Asset Acquired and No Credit Deterioration [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchase of lease receivables | 12,500,000 | ||||||||
Estimated Fair Value [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held for sale | $ 818,040,000 | $ 818,040,000 | $ 1,388,416,000 | ||||||
[1] Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. In 2020 the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. |
Loans (Major Classifications Of
Loans (Major Classifications Of Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | ||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 5,263,346 | $ 3,739,171 | ||
Unamortized loan fees and costs | 4,029 | 8,053 | ||
Total loans, including unamortized loan fees and costs | [1] | 5,267,375 | 3,747,224 | $ 3,136,662 |
SBL Non-Real Estate [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 116,080 | 147,722 | ||
Total loans, including unamortized loan fees and costs | [1] | 116,080 | 147,722 | 171,845 |
SBL Commercial Mortgage [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 429,865 | 361,171 | ||
Total loans, including unamortized loan fees and costs | [1] | 429,865 | 361,171 | 367,272 |
SBL Construction [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 26,841 | 27,199 | ||
Total loans, including unamortized loan fees and costs | [1] | 26,841 | 27,199 | 23,117 |
Small Business Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 572,786 | 536,092 | ||
Direct Lease Financing [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 599,796 | 531,012 | ||
Total loans, including unamortized loan fees and costs | [1] | 599,796 | 531,012 | 514,068 |
SBLOC/IBLOC [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [2] | 2,369,106 | 1,929,581 | |
Total loans, including unamortized loan fees and costs | [1] | 2,369,106 | 1,929,581 | 1,834,523 |
Advisor Financing [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [3] | 168,559 | 115,770 | |
Total loans, including unamortized loan fees and costs | [1] | $ 168,559 | 115,770 | 81,143 |
Loan amount, loan-to-value ratio | 70% | |||
Real Estate Bridge Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 1,488,119 | 621,702 | ||
Total loans, including unamortized loan fees and costs | [1] | 1,488,119 | 621,702 | 128,699 |
Other Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [4] | 64,980 | 5,014 | |
Total loans, including unamortized loan fees and costs | [1] | 64,980 | 5,014 | $ 4,917 |
Consumer - Other [Member] | ||||
Major classifications of loans [Abstract] | ||||
Demand deposit overdrafts reclassified as loan balances | 1,000 | 322 | ||
Other Loans - Discontinued Assets [Member] | ||||
Major classifications of loans [Abstract] | ||||
Demand deposit overdrafts reclassified as loan balances | 54,200 | |||
Other Loans - Discontinued Assets Of Residential Mortgage Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Demand deposit overdrafts reclassified as loan balances | 19,500 | |||
IBLOC [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 1,100,000 | $ 788,300 | ||
[1] The ending balance for loans in the unallocated column represents deferred costs and fees. Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2022 and December 31, 2021, respectively, IBLOC loans amounted to $ 1.10 billion and $ 788.3 million. In 2020 the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. Includes demand deposit overdrafts reclassified as loan balances totaling $ 1.0 million and $ 322,000 at September 30, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial. September 30, 2022 includes $ 54.2 million of balances previously included in discontinued assets including $ 19.5 million of residential mortgage loans, with the balance comprised of commercial loans. |
Loans (Schedule Of Small Busine
Loans (Schedule Of Small Business Administration Loans and Held For Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Loans [Abstract] | |||
SBL loans, including costs net of deferred fees of $6,444 and $5,345 for June 30, 2022 and December 31, 2021, respectively | $ 579,156 | $ 541,437 | |
SBL loans included in commercial loans at fair value | 159,914 | 199,585 | |
Total small business loans | [1] | 739,070 | 741,022 |
SBL deferred fees and costs | $ 6,370 | $ 5,345 | |
[1] The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated (in thousands). |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
With an allowance recorded [Abstract] | ||
Related allowance | $ (863,000) | $ (978,000) |
Total allowance recorded [Abstract] | ||
Recorded investment | 7,922,000 | 3,983,000 |
Unpaid principal balance | 11,091,000 | 7,011,000 |
Average recorded investment | 7,993,000 | 8,766,000 |
Interest income recognized | 133,000 | 26,000 |
SBL Non-Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 357,000 | 409,000 |
Unpaid principal balance | 3,526,000 | 3,414,000 |
Average recorded investment | 385,000 | 412,000 |
Interest income recognized | 7,000 | 5,000 |
With an allowance recorded [Abstract] | ||
Recorded investment | 990,000 | 1,478,000 |
Unpaid principal balance | 990,000 | 1,478,000 |
Related allowance | (594,000) | (829,000) |
Average recorded investment | 1,303,000 | 2,267,000 |
Interest income recognized | 6,000 | 13,000 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,347,000 | 1,887,000 |
Unpaid principal balance | 4,516,000 | 4,892,000 |
Average recorded investment | 1,688,000 | 2,679,000 |
Interest income recognized | 13,000 | 18,000 |
SBL Commercial Mortgage [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 223,000 | |
Unpaid principal balance | 246,000 | |
Average recorded investment | 56,000 | 1,717,000 |
With an allowance recorded [Abstract] | ||
Recorded investment | 1,423,000 | 589,000 |
Unpaid principal balance | 1,423,000 | 589,000 |
Related allowance | (222,000) | (115,000) |
Average recorded investment | 1,006,000 | 2,634,000 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,423,000 | 812,000 |
Unpaid principal balance | 1,423,000 | 835,000 |
Average recorded investment | 1,062,000 | 4,351,000 |
SBL Construction [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded investment | 710,000 | 710,000 |
Unpaid principal balance | 710,000 | 710,000 |
Related allowance | (34,000) | (34,000) |
Average recorded investment | 710,000 | 711,000 |
Total allowance recorded [Abstract] | ||
Recorded investment | 710,000 | 710,000 |
Unpaid principal balance | 710,000 | 710,000 |
Average recorded investment | 710,000 | 711,000 |
Direct Lease Financing [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 254,000 | |
Unpaid principal balance | 254,000 | |
Average recorded investment | 66,000 | 430,000 |
With an allowance recorded [Abstract] | ||
Average recorded investment | 132,000 | |
Total allowance recorded [Abstract] | ||
Recorded investment | 254,000 | |
Unpaid principal balance | 254,000 | |
Average recorded investment | 66,000 | 562,000 |
Consumer - Other [Member] | ||
With an allowance recorded [Abstract] | ||
Average recorded investment | 5,000 | |
Total allowance recorded [Abstract] | ||
Average recorded investment | 5,000 | |
Other Loans [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 3,552,000 | |
Unpaid principal balance | 3,552,000 | |
Average recorded investment | 1,184,000 | |
Interest income recognized | 113,000 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 592,000 | |
Unpaid principal balance | 592,000 | |
Related allowance | (13,000) | |
Average recorded investment | 2,974,000 | |
Total allowance recorded [Abstract] | ||
Recorded investment | 4,144,000 | |
Unpaid principal balance | 4,144,000 | |
Average recorded investment | 4,158,000 | |
Interest income recognized | 113,000 | |
Consumer - Home Equity [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 298,000 | 320,000 |
Unpaid principal balance | 298,000 | 320,000 |
Average recorded investment | 309,000 | 458,000 |
Interest income recognized | 7,000 | 8,000 |
Total allowance recorded [Abstract] | ||
Recorded investment | 298,000 | 320,000 |
Unpaid principal balance | 298,000 | 320,000 |
Average recorded investment | 309,000 | 458,000 |
Interest income recognized | $ 7,000 | $ 8,000 |
Loans (Summary Of Non-Accrual L
Loans (Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | $ 3,586 | |
Non-accrual loans without a related ACL | 274 | |
Total non-accrual loans | 3,860 | $ 3,161 |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 861 | |
Non-accrual loans without a related ACL | 216 | |
Total non-accrual loans | 1,077 | 1,313 |
SBL Commercial Mortgage [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 1,423 | |
Total non-accrual loans | 1,423 | 812 |
SBL Construction [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 710 | |
Total non-accrual loans | 710 | 710 |
Direct Lease Financing [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 254 | |
Consumer - Home Equity [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans without a related ACL | 58 | |
Total non-accrual loans | 58 | $ 72 |
Other Loans [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 592 | |
Total non-accrual loans | $ 592 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | $ 3,860 | $ 3,161 | ||
Loans past due 90 days or more and still accruing | 4,415 | 461 | ||
Total non-performing loans | 5,263,346 | 3,739,171 | ||
Other real estate owned | 18,873 | 18,873 | $ 0 | |
Total non-performing assets | 27,148 | 22,495 | ||
Non-Performing Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-performing loans | 8,275 | 3,622 | ||
SBL Non-Real Estate [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 1,077 | 1,313 | ||
Total non-performing loans | 116,080 | 147,722 | ||
SBL Non-Real Estate [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 1,077 | 1,313 | ||
SBL Commercial Mortgage [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 1,423 | 812 | ||
Total non-performing loans | 429,865 | 361,171 | ||
SBL Commercial Mortgage [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 1,423 | 812 | ||
SBL Construction [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 710 | 710 | ||
Total non-performing loans | 26,841 | 27,199 | ||
SBL Construction [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 710 | 710 | ||
Direct Lease Financing [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 254 | |||
Total non-performing loans | 599,796 | 531,012 | ||
Direct Lease Financing [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 254 | |||
Other Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 592 | |||
Total non-performing loans | [1] | 64,980 | 5,014 | |
Other Loans [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 592 | |||
Consumer - Home Equity [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | 58 | 72 | ||
Consumer - Home Equity [Member] | Non-Accrual Loans [Member] | ||||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||||
Total non-accrual loans | $ 58 | $ 72 | ||
[1] Includes demand deposit overdrafts reclassified as loan balances totaling $ 1.0 million and $ 322,000 at September 30, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial. September 30, 2022 includes $ 54.2 million of balances previously included in discontinued assets including $ 19.5 million of residential mortgage loans, with the balance comprised of commercial loans. |
Loans (Loans Modified And Consi
Loans (Loans Modified And Considered Troubled Debt Restructurings) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | ||
Financing Receivable, Modifications [Line Items] | |||
Number | loan | [1] | 11 | 10 |
Pre-modification recorded investment | [1] | $ 5,284 | $ 1,479 |
Post-modification recorded investment | [1] | 5,284 | 1,479 |
Troubled debt restructurings including nonaccrual loans | $ 1,200 | $ 656 | |
SBL Non-Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number | loan | 8 | 9 | |
Pre-modification recorded investment | $ 657 | $ 1,231 | |
Post-modification recorded investment | $ 657 | $ 1,231 | |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number | loan | 1 | ||
Pre-modification recorded investment | $ 834 | ||
Post-modification recorded investment | $ 834 | ||
Other Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number | loan | 1 | ||
Pre-modification recorded investment | $ 3,552 | ||
Post-modification recorded investment | $ 3,552 | ||
Consumer - Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number | loan | 1 | 1 | |
Pre-modification recorded investment | $ 241 | $ 248 | |
Post-modification recorded investment | $ 241 | $ 248 | |
[1] Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. |
Loans (Loans Modified As Troubl
Loans (Loans Modified As Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | |||
Combined rate and maturity | [1] | $ 5,284 | $ 1,479 |
Troubled debt restructurings including nonaccrual loans | 1,200 | 656 | |
SBL Non-Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Combined rate and maturity | 657 | 1,231 | |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Combined rate and maturity | 834 | ||
Other Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Combined rate and maturity | 3,552 | ||
Consumer - Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Combined rate and maturity | $ 241 | $ 248 | |
[1] Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. |
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, 2022 USD ($) item | |
Financing Receivable, Modifications [Line Items] | |
Number | item | 1 |
Pre-modification recorded investment | $ | $ 334 |
SBL Non-Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number | item | 1 |
Pre-modification recorded investment | $ | $ 334 |
Loans (Summary Of Gross Loans H
Loans (Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | $ 1,273,619 | $ 1,136,523 | ||||
Fiscal Year Before Latest Fiscal Year | 1,046,768 | 297,650 | ||||
Two Years Before Latest Fiscal Year | 233,912 | 151,305 | ||||
Three Years Before Latest Fiscal Year | 118,771 | 90,977 | ||||
Four Years Before Latest Fiscal Year | 68,190 | 57,753 | ||||
Prior | 151,196 | 73,389 | ||||
Revolving loans at amortized cost | 2,370,890 | 1,931,574 | ||||
Total | 5,263,346 | 3,739,171 | ||||
Unamortized loan fees and costs | 4,029 | 8,053 | ||||
Total loans, including unamortized loan fees and costs | [1] | 5,267,375 | 3,747,224 | $ 3,136,662 | ||
SBL Non-Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 27,275 | 73,490 | ||||
Fiscal Year Before Latest Fiscal Year | 37,262 | 23,191 | ||||
Two Years Before Latest Fiscal Year | 14,849 | 8,893 | ||||
Three Years Before Latest Fiscal Year | 7,758 | 9,672 | ||||
Four Years Before Latest Fiscal Year | 7,359 | 5,936 | ||||
Prior | 9,904 | 11,563 | ||||
Total | 104,407 | 132,745 | ||||
Total loans, including unamortized loan fees and costs | [1] | 116,080 | 147,722 | 171,845 | ||
SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 84,140 | 90,129 | ||||
Fiscal Year Before Latest Fiscal Year | 99,428 | 57,695 | ||||
Two Years Before Latest Fiscal Year | 58,925 | 77,143 | ||||
Three Years Before Latest Fiscal Year | 67,645 | 43,820 | ||||
Four Years Before Latest Fiscal Year | 43,820 | 37,607 | ||||
Prior | 70,374 | 47,075 | ||||
Total | 424,332 | 353,469 | ||||
Total loans, including unamortized loan fees and costs | [1] | 429,865 | 361,171 | 367,272 | ||
SBL Construction [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 2,037 | 6,869 | ||||
Fiscal Year Before Latest Fiscal Year | 11,633 | 12,629 | ||||
Two Years Before Latest Fiscal Year | 9,756 | 1,880 | ||||
Three Years Before Latest Fiscal Year | 2,704 | 5,111 | ||||
Prior | 710 | 710 | ||||
Total | 26,840 | 27,199 | ||||
Total loans, including unamortized loan fees and costs | [1] | 26,841 | 27,199 | 23,117 | ||
Direct Lease Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 256,986 | 271,458 | ||||
Fiscal Year Before Latest Fiscal Year | 180,072 | 160,206 | ||||
Two Years Before Latest Fiscal Year | 108,178 | 60,308 | ||||
Three Years Before Latest Fiscal Year | 37,870 | 27,821 | ||||
Four Years Before Latest Fiscal Year | 13,270 | 8,998 | ||||
Prior | 3,420 | 2,221 | ||||
Total | 599,796 | 531,012 | ||||
Total loans, including unamortized loan fees and costs | [1] | 599,796 | 531,012 | 514,068 | ||
SBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 1,265,017 | 1,141,316 | ||||
Total | 1,265,017 | 1,141,316 | ||||
IBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 1,104,089 | 788,265 | ||||
Total | 1,104,089 | 788,265 | ||||
Advisor Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 58,757 | 72,106 | ||||
Fiscal Year Before Latest Fiscal Year | 70,272 | 43,664 | ||||
Two Years Before Latest Fiscal Year | 39,530 | |||||
Total | 168,559 | 115,770 | ||||
Total loans, including unamortized loan fees and costs | [1] | 168,559 | 115,770 | 81,143 | ||
Real Estate Bridge Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 840,423 | 621,702 | ||||
Fiscal Year Before Latest Fiscal Year | 647,696 | |||||
Total | 1,488,119 | 621,702 | ||||
Total loans, including unamortized loan fees and costs | [1] | 1,488,119 | 621,702 | 128,699 | ||
Other Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 4,001 | [2] | 769 | [3] | ||
Fiscal Year Before Latest Fiscal Year | 405 | [2] | 265 | [3] | ||
Two Years Before Latest Fiscal Year | 2,674 | [2] | 3,081 | [3] | ||
Three Years Before Latest Fiscal Year | 2,794 | [2] | 4,553 | [3] | ||
Four Years Before Latest Fiscal Year | 3,741 | [2] | 5,212 | [3] | ||
Prior | 66,788 | [2] | 11,820 | [3] | ||
Revolving loans at amortized cost | 1,784 | [2] | 1,993 | [3] | ||
Total | 82,187 | [2] | 27,693 | [3] | ||
Total loans, including unamortized loan fees and costs | [1] | 64,980 | 5,014 | $ 4,917 | ||
SBL CRA [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Total | 17,200 | 22,700 | ||||
Non-Rated [Member] | SBL Non-Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 4,135 | [4] | 39,318 | [5] | ||
Fiscal Year Before Latest Fiscal Year | 6,321 | [4] | 7,257 | [5] | ||
Two Years Before Latest Fiscal Year | [4] | 306 | ||||
Total | 10,762 | [4] | 46,575 | [5] | ||
Non-Rated [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 15,964 | 10,963 | ||||
Total | 15,964 | 10,963 | ||||
Non-Rated [Member] | SBL Construction [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 286 | |||||
Total | 286 | |||||
Non-Rated [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 65,992 | 56,152 | ||||
Fiscal Year Before Latest Fiscal Year | 33,930 | 13,271 | ||||
Two Years Before Latest Fiscal Year | 9,081 | 1,933 | ||||
Three Years Before Latest Fiscal Year | 1,302 | 1,115 | ||||
Four Years Before Latest Fiscal Year | 508 | 355 | ||||
Prior | 146 | 104 | ||||
Total | 110,959 | 72,930 | ||||
Non-Rated [Member] | SBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 830 | 3,176 | ||||
Total | 830 | 3,176 | ||||
Non-Rated [Member] | IBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 548,178 | 346,604 | ||||
Total | 548,178 | 346,604 | ||||
Non-Rated [Member] | Advisor Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 17,259 | 38,330 | ||||
Fiscal Year Before Latest Fiscal Year | 3,712 | 258 | ||||
Total | 20,971 | 38,588 | ||||
Non-Rated [Member] | Other Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 3,774 | 396 | ||||
Fiscal Year Before Latest Fiscal Year | 37 | 152 | ||||
Two Years Before Latest Fiscal Year | 62 | |||||
Prior | 21,714 | 216 | ||||
Revolving loans at amortized cost | 522 | 656 | ||||
Total | 26,109 | 1,420 | ||||
Non-Rated [Member] | SBA Loan [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Total | 46,600 | |||||
Non-Rated [Member] | SBA Loan PPP [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Total | 6,600 | 44,800 | ||||
Pass [Member] | SBL Non-Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 23,140 | 34,172 | ||||
Fiscal Year Before Latest Fiscal Year | 30,941 | 15,934 | ||||
Two Years Before Latest Fiscal Year | 14,209 | 8,794 | ||||
Three Years Before Latest Fiscal Year | 7,568 | 8,988 | ||||
Four Years Before Latest Fiscal Year | 6,756 | 5,088 | ||||
Prior | 6,782 | 9,809 | ||||
Total | 89,396 | 82,785 | ||||
Pass [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 68,176 | 79,166 | ||||
Fiscal Year Before Latest Fiscal Year | 99,428 | 57,554 | ||||
Two Years Before Latest Fiscal Year | 58,784 | 75,290 | ||||
Three Years Before Latest Fiscal Year | 65,792 | 43,820 | ||||
Four Years Before Latest Fiscal Year | 42,986 | 37,607 | ||||
Prior | 69,141 | 46,016 | ||||
Total | 404,307 | 339,453 | ||||
Pass [Member] | SBL Construction [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 1,751 | 6,869 | ||||
Fiscal Year Before Latest Fiscal Year | 11,633 | 12,629 | ||||
Two Years Before Latest Fiscal Year | 9,756 | 1,880 | ||||
Three Years Before Latest Fiscal Year | 2,704 | 5,111 | ||||
Total | 25,844 | 26,489 | ||||
Pass [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 189,365 | 214,780 | ||||
Fiscal Year Before Latest Fiscal Year | 145,489 | 145,256 | ||||
Two Years Before Latest Fiscal Year | 98,078 | 58,337 | ||||
Three Years Before Latest Fiscal Year | 36,550 | 26,662 | ||||
Four Years Before Latest Fiscal Year | 12,753 | 8,574 | ||||
Prior | 3,274 | 2,105 | ||||
Total | 485,509 | 455,714 | ||||
Pass [Member] | SBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 1,264,187 | 1,138,140 | ||||
Total | 1,264,187 | 1,138,140 | ||||
Pass [Member] | IBLOC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Revolving loans at amortized cost | 555,911 | 441,661 | ||||
Total | 555,911 | 441,661 | ||||
Pass [Member] | Advisor Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 41,498 | 33,776 | ||||
Fiscal Year Before Latest Fiscal Year | 66,560 | 43,406 | ||||
Two Years Before Latest Fiscal Year | 39,530 | |||||
Total | 147,588 | 77,182 | ||||
Pass [Member] | Real Estate Bridge Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 840,423 | 621,702 | ||||
Fiscal Year Before Latest Fiscal Year | 647,696 | |||||
Total | 1,488,119 | 621,702 | ||||
Pass [Member] | Other Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 227 | 373 | ||||
Fiscal Year Before Latest Fiscal Year | 368 | 113 | ||||
Two Years Before Latest Fiscal Year | 2,612 | 3,081 | ||||
Three Years Before Latest Fiscal Year | 2,794 | 4,553 | ||||
Four Years Before Latest Fiscal Year | 3,741 | 5,212 | ||||
Prior | 40,930 | 11,604 | ||||
Revolving loans at amortized cost | 1,205 | 1,264 | ||||
Total | 51,877 | 26,200 | ||||
Special Mention [Member] | SBL Non-Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Two Years Before Latest Fiscal Year | 99 | |||||
Three Years Before Latest Fiscal Year | 666 | |||||
Four Years Before Latest Fiscal Year | 603 | |||||
Prior | 303 | 859 | ||||
Total | 906 | 1,624 | ||||
Special Mention [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Fiscal Year Before Latest Fiscal Year | 141 | |||||
Two Years Before Latest Fiscal Year | 141 | 1,853 | ||||
Three Years Before Latest Fiscal Year | 1,853 | |||||
Prior | 644 | 247 | ||||
Total | 2,638 | 2,241 | ||||
Special Mention [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 31 | |||||
Two Years Before Latest Fiscal Year | 68 | |||||
Three Years Before Latest Fiscal Year | 22 | |||||
Four Years Before Latest Fiscal Year | 9 | 38 | ||||
Total | 108 | 60 | ||||
Special Mention [Member] | Other Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Prior | 3,552 | |||||
Total | 3,552 | |||||
Substandard [Member] | SBL Non-Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Two Years Before Latest Fiscal Year | 334 | |||||
Three Years Before Latest Fiscal Year | 190 | 18 | ||||
Four Years Before Latest Fiscal Year | 848 | |||||
Prior | 2,819 | 895 | ||||
Total | 3,343 | 1,761 | ||||
Substandard [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Four Years Before Latest Fiscal Year | 834 | |||||
Prior | 589 | 812 | ||||
Total | 1,423 | 812 | ||||
Substandard [Member] | SBL Construction [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Prior | 710 | 710 | ||||
Total | 710 | 710 | ||||
Substandard [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Current Fiscal Year | 1,598 | 526 | ||||
Fiscal Year Before Latest Fiscal Year | 653 | 1,679 | ||||
Two Years Before Latest Fiscal Year | 951 | 38 | ||||
Three Years Before Latest Fiscal Year | 18 | 22 | ||||
Four Years Before Latest Fiscal Year | 31 | |||||
Prior | 12 | |||||
Total | 3,220 | 2,308 | ||||
Substandard [Member] | Other Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Prior | 592 | |||||
Revolving loans at amortized cost | 57 | 73 | ||||
Total | $ 649 | $ 73 | ||||
[1] The ending balance for loans in the unallocated column represents deferred costs and fees. Included in Other loans are $ 17.2 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of September 30, 2022. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. Included in Other loans are $ 22.7 million of SBA loans purchased for CRA purposes as of December 31, 2021. These loans are classified as SBL in the Company’s loan table which classify loans by type, as opposed to risk characteristics. Included in the SBL non real estate non-rated total of $ 10.8 million, were $ 6.6 million of PPP loans. Included in the SBL non real estate non-rated total of $ 46.6 million, were $ 44.8 million of PPP loans which are government guaranteed. |
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, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | $ 17,806 | $ 16,082 | $ 16,082 | |
Charge-offs | (1,173) | (1,192) | (2,006) | |
Recoveries | 165 | 77 | 1,217 | |
Provision (credit) | [1] | 2,891 | 1,192 | 2,513 |
Ending balance | 19,689 | 16,159 | 17,806 | |
Ending balance: Individually evaluated for expected credit loss | 863 | 1,812 | 978 | |
Ending balance: Collectively evaluated for expected credit loss | 18,826 | 14,347 | 16,828 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 5,267,375 | 3,136,662 | 3,747,224 |
Ending balance: Individually evaluated for expected credit loss | 7,922 | 6,880 | 3,983 | |
Ending balance: Collectively evaluated for expected credit loss | 5,259,453 | 3,129,782 | 3,743,241 | |
SBL Non-Real Estate [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 5,415 | 5,060 | 5,060 | |
Charge-offs | (861) | (896) | (1,138) | |
Recoveries | 57 | 18 | 51 | |
Provision (credit) | [1] | 300 | 1,196 | 1,442 |
Ending balance | 4,911 | 5,378 | 5,415 | |
Ending balance: Individually evaluated for expected credit loss | 594 | 1,163 | 829 | |
Ending balance: Collectively evaluated for expected credit loss | 4,317 | 4,215 | 4,586 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 116,080 | 171,845 | 147,722 |
Ending balance: Individually evaluated for expected credit loss | 1,347 | 2,233 | 1,887 | |
Ending balance: Collectively evaluated for expected credit loss | 114,733 | 169,612 | 145,835 | |
SBL Commercial Mortgage [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 2,952 | 3,315 | 3,315 | |
Charge-offs | (23) | (417) | ||
Recoveries | 9 | 9 | ||
Provision (credit) | [1] | (794) | (506) | 45 |
Ending balance | 2,158 | 2,795 | 2,952 | |
Ending balance: Individually evaluated for expected credit loss | 222 | 510 | 115 | |
Ending balance: Collectively evaluated for expected credit loss | 1,936 | 2,285 | 2,837 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 429,865 | 367,272 | 361,171 |
Ending balance: Individually evaluated for expected credit loss | 1,423 | 3,167 | 812 | |
Ending balance: Collectively evaluated for expected credit loss | 428,442 | 364,105 | 360,359 | |
SBL Construction [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 432 | 328 | 328 | |
Provision (credit) | [1] | (6) | 42 | 104 |
Ending balance | 426 | 370 | 432 | |
Ending balance: Individually evaluated for expected credit loss | 34 | 34 | 34 | |
Ending balance: Collectively evaluated for expected credit loss | 392 | 336 | 398 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 26,841 | 23,117 | 27,199 |
Ending balance: Individually evaluated for expected credit loss | 710 | 711 | 710 | |
Ending balance: Collectively evaluated for expected credit loss | 26,131 | 22,406 | 26,489 | |
Direct Lease Financing [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 5,817 | 6,043 | 6,043 | |
Charge-offs | (312) | (248) | (412) | |
Recoveries | 108 | 50 | 58 | |
Provision (credit) | [1] | 682 | (208) | 128 |
Ending balance | 6,295 | 5,637 | 5,817 | |
Ending balance: Individually evaluated for expected credit loss | 91 | |||
Ending balance: Collectively evaluated for expected credit loss | 6,295 | 5,546 | 5,817 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 599,796 | 514,068 | 531,012 |
Ending balance: Individually evaluated for expected credit loss | 430 | 254 | ||
Ending balance: Collectively evaluated for expected credit loss | 599,796 | 513,638 | 530,758 | |
SBLOC/IBLOC [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 964 | 775 | 775 | |
Charge-offs | (15) | (15) | ||
Provision (credit) | [1] | 220 | 157 | 204 |
Ending balance | 1,184 | 917 | 964 | |
Ending balance: Collectively evaluated for expected credit loss | 1,184 | 917 | 964 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 2,369,106 | 1,834,523 | 1,929,581 |
Ending balance: Collectively evaluated for expected credit loss | 2,369,106 | 1,834,523 | 1,929,581 | |
Advisor Financing [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 868 | 362 | 362 | |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | [1] | 396 | 247 | 506 |
Ending balance | 1,264 | 609 | 868 | |
Ending balance: Individually evaluated for expected credit loss | ||||
Ending balance: Collectively evaluated for expected credit loss | 1,264 | 609 | 868 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 168,559 | 81,143 | 115,770 |
Ending balance: Individually evaluated for expected credit loss | ||||
Ending balance: Collectively evaluated for expected credit loss | 168,559 | 81,143 | 115,770 | |
Real Estate Bridge Loans [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 1,181 | |||
Provision (credit) | [1] | 1,602 | 245 | 1,181 |
Ending balance | 2,783 | 245 | 1,181 | |
Ending balance: Collectively evaluated for expected credit loss | 2,783 | 245 | 1,181 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 1,488,119 | 128,699 | 621,702 |
Ending balance: Collectively evaluated for expected credit loss | 1,488,119 | 128,699 | 621,702 | |
Other Loans [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Beginning balance | 177 | 199 | 199 | |
Charge-offs | (10) | (24) | ||
Recoveries | 1,099 | |||
Provision (credit) | [1] | 491 | 19 | (1,097) |
Ending balance | 668 | 208 | 177 | |
Ending balance: Individually evaluated for expected credit loss | 13 | 14 | ||
Ending balance: Collectively evaluated for expected credit loss | 655 | 194 | 177 | |
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 64,980 | 4,917 | 5,014 |
Ending balance: Individually evaluated for expected credit loss | 4,442 | 339 | 320 | |
Ending balance: Collectively evaluated for expected credit loss | 60,538 | 4,578 | 4,694 | |
Unallocated [Member] | ||||
Loans [Abstract] | ||||
Loans: Ending Balance | [2] | 4,029 | 11,078 | 8,053 |
Ending balance: Collectively evaluated for expected credit loss | 4,029 | 11,078 | 8,053 | |
Unfunded Loan Commitment [Member] | ||||
Changes in allowance for loan and lease losses by loan category [Abstract] | ||||
Provision (credit) | $ 1,400 | $ 292 | $ 597 | |
[1] The amount shown as the provision for credit losses for the period reflects the provision on credit losses for loans, while the consolidated statements of operations provision for credit losses include provisions for unfunded commitments of $ 1.4 million, $ 292,000 and $ 597,000 , respectively, for the nine months ended September 30, 2022 and September 30, 2021, and for full year 2021. The ending balance for loans in the unallocated column represents deferred costs and fees. |
Loans (Net Charge-Offs, By Year
Loans (Net Charge-Offs, By Year Of Origination) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Charge-Offs | $ (31) | ||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Net Charge Offs | (31) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Charge-Offs | (132) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Net Charge Offs | (132) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (139) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Recoveries | 101 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (38) | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Charge-Offs | (26) | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Recoveries | 7 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Net Charges | (19) | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Recoveries | 3 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Net Charge | 3 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Charge-Offs | (845) | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 54 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | (791) | ||
Charge-offs | (1,173) | $ (1,192) | $ (2,006) |
Recoveries | 165 | 77 | 1,217 |
Net Charge-Offs | (1,008) | ||
SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (16) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (16) | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Recoveries | 3 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Net Charge | 3 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Charge-Offs | (845) | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 54 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | (791) | ||
Charge-offs | (861) | (896) | (1,138) |
Recoveries | 57 | 18 | 51 |
Net Charge-Offs | (804) | ||
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Charge-offs | (23) | (417) | |
Recoveries | 9 | 9 | |
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Charge-Offs | (31) | ||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Net Charge Offs | (31) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Charge-Offs | (132) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Net Charge Offs | (132) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (123) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Recoveries | 101 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (22) | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Charge-Offs | (26) | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Recoveries | 7 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Net Charges | (19) | ||
Charge-offs | (312) | (248) | (412) |
Recoveries | 108 | 50 | 58 |
Net Charge-Offs | (204) | ||
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Charge-offs | |||
Recoveries | |||
Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Charge-offs | $ (10) | (24) | |
Recoveries | $ 1,099 |
Loans (Delinquent Loans By Loan
Loans (Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | $ 3,860 | $ 3,161 | ||
Loans Receivable, Gross | 5,263,346 | 3,739,171 | ||
Total loans, including unamortized loan fees and costs | [1] | 5,267,375 | 3,747,224 | $ 3,136,662 |
30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 10,414 | 9,193 | ||
60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,052 | 4,339 | ||
90+ Days Still Accruing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 4,415 | 461 | ||
Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 21,741 | 17,154 | ||
Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 5,245,634 | 3,730,070 | ||
SBL Non-Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 1,077 | 1,313 | ||
Loans Receivable, Gross | 104,407 | 132,745 | ||
Total loans, including unamortized loan fees and costs | [1] | 116,080 | 147,722 | 171,845 |
SBL Non-Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,715 | 1,375 | ||
SBL Non-Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,246 | 3,138 | ||
SBL Non-Real Estate [Member] | 90+ Days Still Accruing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 370 | 441 | ||
SBL Non-Real Estate [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 4,408 | 6,267 | ||
SBL Non-Real Estate [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 111,672 | 141,455 | ||
SBL Commercial Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 1,423 | 812 | ||
Loans Receivable, Gross | 424,332 | 353,469 | ||
Total loans, including unamortized loan fees and costs | [1] | 429,865 | 361,171 | 367,272 |
SBL Commercial Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,252 | |||
SBL Commercial Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 6 | 220 | ||
SBL Commercial Mortgage [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 4,681 | 1,032 | ||
SBL Commercial Mortgage [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 425,184 | 360,139 | ||
SBL Construction [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 710 | 710 | ||
Loans Receivable, Gross | 26,840 | 27,199 | ||
Total loans, including unamortized loan fees and costs | [1] | 26,841 | 27,199 | 23,117 |
SBL Construction [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 710 | 710 | ||
SBL Construction [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 26,131 | 26,489 | ||
Direct Lease Financing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 254 | |||
Loans Receivable, Gross | 599,796 | 531,012 | ||
Total loans, including unamortized loan fees and costs | [1] | 599,796 | 531,012 | 514,068 |
Direct Lease Financing [Member] | 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,799 | 1,833 | ||
Direct Lease Financing [Member] | 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,392 | 692 | ||
Direct Lease Financing [Member] | 90+ Days Still Accruing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 49 | 20 | ||
Direct Lease Financing [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,240 | 2,799 | ||
Direct Lease Financing [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 596,556 | 528,213 | ||
SBLOC/IBLOC [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans, including unamortized loan fees and costs | [1] | 2,369,106 | 1,929,581 | 1,834,523 |
SBLOC/IBLOC [Member] | 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,175 | 5,985 | ||
SBLOC/IBLOC [Member] | 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 227 | 289 | ||
SBLOC/IBLOC [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,402 | 6,274 | ||
SBLOC/IBLOC [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 2,365,704 | 1,923,307 | ||
Advisor Financing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 168,559 | 115,770 | ||
Total loans, including unamortized loan fees and costs | [1] | 168,559 | 115,770 | 81,143 |
Advisor Financing [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 168,559 | 115,770 | ||
Real Estate Bridge Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,488,119 | 621,702 | ||
Total loans, including unamortized loan fees and costs | [1] | 1,488,119 | 621,702 | $ 128,699 |
Real Estate Bridge Loans [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 1,488,119 | 621,702 | ||
Other Loans II [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual | 650 | 72 | ||
Total loans, including unamortized loan fees and costs | 64,980 | 5,014 | ||
Other Loans II [Member] | 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 473 | |||
Other Loans II [Member] | 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 181 | |||
Other Loans II [Member] | 90+ Days Still Accruing [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 3,996 | |||
Other Loans II [Member] | Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 5,300 | 72 | ||
Other Loans II [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | 59,680 | 4,942 | ||
Unamortized Loan Fees And Costs [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans, including unamortized loan fees and costs | 4,029 | 8,053 | ||
Unamortized Loan Fees And Costs [Member] | Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans Receivable, Gross | $ 4,029 | $ 8,053 | ||
[1] The ending balance for loans in the unallocated column represents deferred costs and fees. |
Loans (Scheduled Maturities of
Loans (Scheduled Maturities of Direct Financing Leases) (Details) $ in Thousands | Sep. 30, 2022 USD ($) | |
Recent Accounting Pronouncements [Abstract] | ||
Remaining 2022 | $ 47,438 | |
2023 | 160,895 | |
2024 | 136,205 | |
2025 | 81,108 | |
2026 | 46,765 | |
2027 and thereafter | 17,435 | |
Total undiscounted cash flows | 489,846 | |
Residual value | 167,946 | [1] |
Difference between undiscounted cash flows and discounted cash flows | (57,996) | |
Present value of lease payments recorded as lease receivables | 599,796 | |
Direct residual value not guaranteed | $ 29,984 | |
[1] Of the $ 167,946,000 , $ 29,984,000 is not guaranteed by the lessee or other guarantors. |
Transactions With Affiliates (D
Transactions With Affiliates (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Deposits | $ 6,911,303 | $ 5,976,911 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Deposits | 0 | 0 | |
Directors, Executive Officers, Principal Stockholders And Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 4,000 | $ 5,200 | |
Duane Morris LLP [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for legal services | $ 1,400 | $ 1,500 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, transfers between three levels | $ 0 | $ 0 | |||
Cash and cash equivalents | 722,700,000 | $ 722,700,000 | $ 601,800,000 | ||
Collateral dependent loans | 7,900,000 | 7,900,000 | |||
Specific reserves and other write downs on impaired loans | $ 863,000 | $ 863,000 | $ 978,000 | ||
Number of troubled debt restructured loans | loan | 11 | 11 | 10 | ||
Troubled debt restructured loans balance | [1] | $ 5,284,000 | $ 1,479,000 | ||
Troubled debt restructured loans, specific reserve | $ 447,000 | $ 447,000 | 476,000 | ||
Minimum [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Constant prepayment rates | 3% | ||||
Maximum [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Constant prepayment rates | 30% | ||||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Collateral dependent loans | [2] | $ 7,059,000 | $ 7,059,000 | $ 3,005,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Estimated selling costs | 7% | ||||
Fair Value, Measurements, Nonrecurring [Member] | Maximum [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Estimated selling costs | 10% | ||||
[1] Troubled debt restructurings include non-accrual loans of $ 1.2 million and $ 656,000 at September 30, 2022 and December 31, 2021, respectively. The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for other real estate owned was the market 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, 2022 | Dec. 31, 2021 | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||||
Investment securities available-for-sale | $ 790,594 | $ 953,709 | |||
Commercial loans, at fair value | 818,000 | ||||
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 | 42 | 42 | |||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||||
Investment securities available-for-sale | 771,597 | 934,678 | |||
Interest rate swaps, asset | 952 | ||||
Interest rate swaps, liability | 553 | ||||
Demand and interest checking | 5,934,591 | 5,561,365 | |||
Savings and money market | 575,381 | 415,546 | |||
Time deposits | 401,331 | ||||
Senior debt | 93,871 | 101,980 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||||
Investment securities available-for-sale | 18,997 | 19,031 | |||
Federal Home Loan Bank, Atlantic Central Bankers Bank Stock, and Federal Reserve Bank stock | 12,629 | ||||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,663 | ||||
Commercial loans, at fair value | 818,040 | [1],[2] | 1,388,416 | [3] | |
Loans, net of deferred loan fees and costs | 5,254,340 | 3,745,548 | |||
Assets held-for-sale from discontinued operations | [1],[3] | 3,268 | |||
Subordinated debentures | 8,947 | 8,815 | |||
Carrying Amount [Member] | |||||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||||
Investment securities available-for-sale | 790,594 | 953,709 | |||
Federal Home Loan Bank, Atlantic Central Bankers Bank Stock, and Federal Reserve Bank stock | 12,629 | ||||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,663 | ||||
Commercial loans, at fair value | 818,040 | 1,388,416 | |||
Loans, net of deferred loan fees and costs | 5,267,375 | 3,747,224 | |||
Assets held-for-sale from discontinued operations | 3,268 | ||||
Interest rate swaps, asset | 952 | ||||
Interest rate swaps, liability | 553 | ||||
Demand and interest checking | 5,934,591 | 5,561,365 | |||
Savings and money market | 575,381 | 415,546 | |||
Time deposits | 401,331 | ||||
Senior debt | 98,958 | 98,682 | |||
Subordinated debentures | 13,401 | 13,401 | |||
Securities sold under agreements to repurchase | 42 | 42 | |||
Estimated Fair Value [Member] | |||||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||||
Investment securities available-for-sale | 790,594 | 953,709 | |||
Federal Home Loan Bank, Atlantic Central Bankers Bank Stock, and Federal Reserve Bank stock | 12,629 | ||||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,663 | ||||
Commercial loans, at fair value | 818,040 | 1,388,416 | |||
Loans, net of deferred loan fees and costs | 5,254,340 | 3,745,548 | |||
Assets held-for-sale from discontinued operations | 3,268 | ||||
Interest rate swaps, asset | 952 | ||||
Interest rate swaps, liability | 553 | ||||
Demand and interest checking | 5,934,591 | 5,561,365 | |||
Savings and money market | 575,381 | 415,546 | |||
Time deposits | 401,331 | ||||
Senior debt | 93,871 | 101,980 | |||
Subordinated debentures | 8,947 | 8,815 | |||
Securities sold under agreements to repurchase | $ 42 | $ 42 | |||
[1] Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties (apartments). These are bridge loans designed to provide owners time and funding for property improvements and are generally valued using discounted cash flow analysis. The discount rate for the vast majority of these loans was based upon current origination rates for similar loans. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. At September 30, 2022, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in valuation. Insurance liquidating trust preferred security is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Assets measured at fair value on a recurring basis [Abstract] | ||||||
Total investment securities, available-for-sale | $ 790,594 | $ 953,709 | ||||
Commercial loans, at fair value | 818,000 | |||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Collateral dependent loans | 7,900 | |||||
Other real estate owned | 18,873 | 18,873 | $ 0 | |||
Fair Value, Measurements, Recurring [Member] | ||||||
Assets measured at fair value on a recurring basis [Abstract] | ||||||
U.S. Government agency securities | 24,282 | 37,302 | ||||
Asset-backed securities | 340,981 | 360,418 | ||||
Obligations of states and political subdivisions | 47,489 | 52,137 | ||||
Residential mortgage-backed securities | 144,314 | 184,301 | ||||
Collateralized mortgage obligation securities | 44,762 | 61,861 | ||||
Commercial mortgage-backed securities | 181,966 | 251,076 | ||||
Corporate debt securities | 6,800 | 6,614 | ||||
Total investment securities, available-for-sale | 790,594 | 953,709 | ||||
Commercial loans, at fair value | 818,040 | 1,388,416 | ||||
Assets held-for-sale from discontinued operations | 3,268 | |||||
Interest rate swaps, asset | 952 | |||||
Interest rate swaps, liability | 553 | |||||
Total assets | 1,609,586 | 2,344,840 | ||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Collateral dependent loans | [1] | 7,059 | 3,005 | |||
Other real estate owned | 18,873 | 18,873 | ||||
Intangible assets | 2,149 | 2,447 | ||||
Assets nonrecurring | 28,081 | 24,325 | ||||
Significant Other Observable Inputs (Level 2) [Member] | ||||||
Assets measured at fair value on a recurring basis [Abstract] | ||||||
Total investment securities, available-for-sale | 771,597 | 934,678 | ||||
Interest rate swaps, asset | 952 | |||||
Interest rate swaps, liability | 553 | |||||
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 | 24,282 | 37,302 | ||||
Asset-backed securities | 340,981 | 360,418 | ||||
Obligations of states and political subdivisions | 47,489 | 52,137 | ||||
Residential mortgage-backed securities | 144,314 | 184,301 | ||||
Collateralized mortgage obligation securities | 44,762 | 61,861 | ||||
Commercial mortgage-backed securities | 169,769 | 238,659 | ||||
Total investment securities, available-for-sale | 771,597 | 934,678 | ||||
Interest rate swaps, asset | 952 | |||||
Interest rate swaps, liability | 553 | |||||
Total assets | 772,549 | 934,125 | ||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||
Assets measured at fair value on a recurring basis [Abstract] | ||||||
Total investment securities, available-for-sale | 18,997 | 19,031 | ||||
Commercial loans, at fair value | 818,040 | [2],[3] | 1,388,416 | [4] | ||
Assets held-for-sale from discontinued operations | [2],[4] | 3,268 | ||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Other real estate owned | 18,873 | [2],[3],[5] | 18,873 | [4] | ||
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 | 12,197 | 12,417 | ||||
Corporate debt securities | 6,800 | 6,614 | ||||
Total investment securities, available-for-sale | 18,997 | 19,031 | ||||
Commercial loans, at fair value | 818,040 | 1,388,416 | ||||
Assets held-for-sale from discontinued operations | 3,268 | |||||
Total assets | 837,037 | 1,410,715 | ||||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Collateral dependent loans | [1] | 7,059 | 3,005 | |||
Other real estate owned | 18,873 | 18,873 | ||||
Intangible assets | 2,149 | 2,447 | ||||
Assets nonrecurring | $ 28,081 | $ 24,325 | ||||
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Estimated Selling Costs | 7% | |||||
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Assets measured on a nonrecurring basis [Abstract] | ||||||
Estimated Selling Costs | 10% | |||||
[1] The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for other real estate owned was the market 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 . Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties (apartments). These are bridge loans designed to provide owners time and funding for property improvements and are generally valued using discounted cash flow analysis. The discount rate for the vast majority of these loans was based upon current origination rates for similar loans. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. At September 30, 2022, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in valuation. Insurance liquidating trust preferred security is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. For other real estate owned, fair value is based upon appraisals of the underlying collateral by third party appraisers, reduced by 7 % to 10 % for estimated selling costs. Such appraisals reflect estimates of amounts realizable upon property sales based on the sale of comparable properties and other factors. Actual sales prices may vary based upon the identification of potential purchasers, changing conditions in local real estate markets and the level of interest rates required to finance purchases. |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Company's Level 3 Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Assets Held-For-Sale From Discontinued Operations [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | $ 3,268 | $ 113,650 |
Total (losses) or gains (realized/unrealized) Included in earnings | 1,102 | |
Purchases, issuances, sales, settlements and charge-offs | ||
Issuances | 5,222 | |
Sales | (2,020) | |
Settlements | (3,268) | (35,750) |
Charge-offs | (13) | |
Ending balance | 3,268 | |
Total 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 | 566 | |
Investment In Unconsolidated Entity [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 31,294 | |
Purchases, issuances, sales, settlements and charge-offs | ||
Settlements | (6,223) | |
Available-For-Sale Securities [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 19,031 | 178,951 |
Total (losses) or gains (realized/unrealized) Included in earnings | (44) | |
Total (losses) or gains (realized/unrealized) Included in other comprehensive loss | (34) | (1,422) |
Purchases, issuances, sales, settlements and charge-offs | ||
Settlements | (158,454) | |
Ending balance | 18,997 | 19,031 |
Commercial Loans At Fair Value [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 1,388,416 | 1,810,812 |
Transfers from investment in unconsolidated entity | 22,926 | |
Transfer from assets held-for-sale from discontinued operations | 61,580 | |
Transfers to loans, net | (61,580) | |
Total (losses) or gains (realized/unrealized) Included in earnings | 9,756 | 13,214 |
Purchases, issuances, sales, settlements and charge-offs | ||
Issuances | 36,877 | 127,765 |
Settlements | (555,429) | (647,881) |
Ending balance | 818,040 | 1,388,416 |
Total 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 | $ (5,278) | (2,133) |
Commercial Loans At Fair Value [Member] | Assets Held-For-Sale From Discontinued Operations [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Transfers to loans, net | (61,580) | |
Commercial Loans At Fair Value [Member] | Investment In Unconsolidated Entity [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Transfers to loans, net | (22,926) | |
Other Real Estate Owned [Member] | Assets Held-For-Sale From Discontinued Operations [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Transfers to loans, net | (17,343) | |
Other Real Estate Owned [Member] | Investment In Unconsolidated Entity [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Transfers to loans, net | $ (2,145) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Other Real Estate Owned) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | ||
Beginning balance | $ 18,873 | $ 0 |
Transfers from investment in unconsolidated entity | 0 | 2,145 |
Sales | 0 | (615) |
Transfer from discontinued operations | 0 | 17,343 |
Ending balance | $ 18,873 | $ 18,873 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Information) (Details) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 USD ($) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale | $ | $ 790,594 | $ 953,709 | ||||
Commercial loans held for sale | $ | 818,000 | |||||
Other real estate owned | $ | 18,873 | 18,873 | $ 0 | |||
Notes Receivable Gross | $ | $ 5,263,346 | $ 3,739,171 | ||||
Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Subordinated debentures, measurement input | 0.1105 | 0.0700 | ||||
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, net of deferred loan fees and costs, measurement input | 0.0100 | |||||
Assets held-for-sale from discontinued operations, measurement input | 0.0318 | |||||
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, net of deferred loan fees and costs, measurement input | 0.0700 | |||||
Assets held-for-sale from discontinued operations, measurement input | 0.0680 | |||||
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, net of deferred loan fees and costs, measurement input | 0.0587 | 0.0370 | ||||
Assets held-for-sale from discontinued operations, measurement input | 0.0436 | |||||
Subordinated debentures, measurement input | 0.1105 | 0.0700 | ||||
Commercial Mortgage-backed Securities [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale, measurement input | 0.1108 | |||||
Commercial Mortgage-backed Securities [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale, measurement input | 0.1108 | 0.0800 | ||||
Commercial Mortgage-backed Securities [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale, measurement input | 0.1108 | 0.0800 | ||||
Insurance Liquidating Trust Preferred Security [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale, measurement input | 0.1082 | 0.0700 | ||||
Insurance Liquidating Trust Preferred Security [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale, measurement input | 0.1082 | 0.0700 | ||||
Commercial - SBA [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | [1] | 0.0385 | ||||
Commercial - SBA [Member] | Minimum [Member] | Measurement Input, Offered Price [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0104 | |||||
Commercial - SBA [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0507 | |||||
Commercial - SBA [Member] | Maximum [Member] | Measurement Input, Offered Price [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0212 | |||||
Commercial - SBA [Member] | Weighted Average [Member] | Measurement Input, Offered Price [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0495 | 103.40 | ||||
Non-SBA CRE - Fixed [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notes receivable, fair value | $ | $ 4,800 | |||||
Notes Receivable Gross | $ | $ 9,500 | |||||
Non-SBA CRE - Fixed [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0826 | [2] | 0.0531 | |||
Non-SBA CRE - Fixed [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.1923 | 0.0743 | ||||
Non-SBA CRE - Fixed [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.1234 | 0.0626 | ||||
Non-SBA CRE - Floating [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0556 | 0.0396 | ||||
Non-SBA CRE - Floating [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.1600 | 0.1020 | ||||
Non-SBA CRE - Floating [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0626 | 0.0496 | ||||
Other Loans [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0318 | |||||
Other Loans [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | [3] | 0.0680 | ||||
Other Loans [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale, measurement input | 0.0436 | |||||
Subordinated Debentures [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number Of Debt Instruments | 2 | |||||
Subordinated Debentures [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||
Loans, Net Of Deferred Loan Fees And Costs [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, net of deferred loan fees and costs, measurement input | [3] | 0.0500 | ||||
Loans, Net Of Deferred Loan Fees And Costs [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, net of deferred loan fees and costs, measurement input | 0.1000 | |||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale | $ | $ 18,997 | $ 19,031 | ||||
Federal Home Loan Bank And Atlantic Central Bankers Bank stock | $ | 12,629 | [4],[5] | 1,663 | [6] | ||
Loans, net of deferred loan fees and costs | $ | [3] | 5,254,340 | [4],[5] | 3,745,548 | [6] | |
Commercial loans held for sale | $ | 818,040 | [4],[5] | 1,388,416 | [6] | ||
Assets held-for-sale from discontinued operations | $ | [4],[6] | 3,268 | ||||
Subordinated debentures | $ | [5] | 8,947 | [4] | 8,815 | [6] | |
Other real estate owned | $ | 18,873 | [4],[5],[7] | 18,873 | [6] | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale | $ | 12,197 | [4],[5],[8] | 12,417 | [6] | ||
Significant Unobservable Inputs (Level 3) [Member] | Insurance Liquidating Trust Preferred Security [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available-for-sale | $ | [6] | 6,800 | [4],[5] | 6,614 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial - SBA [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale | $ | [1] | 159,914 | [4],[5] | 199,585 | [6] | |
Significant Unobservable Inputs (Level 3) [Member] | Non-SBA CRE - Fixed [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale | $ | [2] | 62,923 | [4],[5] | 79,864 | [6] | |
Significant Unobservable Inputs (Level 3) [Member] | Non-SBA CRE - Floating [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale | $ | $ 595,203 | [4],[5] | 1,047,387 | [6] | ||
Significant Unobservable Inputs (Level 3) [Member] | Other Loans [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Commercial loans held for sale | $ | [6] | $ 61,580 | ||||
[1] Commercial-SBA Loans are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon the yield derived from dealer pricing indications for guaranteed pools, adjusted for seasoning and prepayments. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. Such assumptions for both poolable and seasoned loans are based on a seasoning vector for constant prepayment rates from 3 % to 30 % over life. Non-SBA CRE-fixed are fixed rate non-SBA commercial real estate mortgages. These loans are fair valued by a third party, based upon discounting at market rates for similar loans, except for one loan which is fair valued on the basis of an appraisal. Discount rates used in applying discounted cash flow analysis utilize input based upon loan terms, the general level of interest rates and the quality of the credit. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. The loan which is valued on the basis of an appraisal has a fair value of $ 4.8 million, an outstanding principal balance of $ 9.5 million and is discussed in Note 6. Loans, net of deferred loan fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties (apartments). These are bridge loans designed to provide owners time and funding for property improvements and are generally valued using discounted cash flow analysis. The discount rate for the vast majority of these loans was based upon current origination rates for similar loans. Deterioration in loan performance or other credit weaknesses could result in fair value ranges which would be dependent upon potential buyers’ tolerance for such weaknesses and are difficult to estimate. At September 30, 2022, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in valuation. Insurance liquidating trust preferred security is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. For other real estate owned, fair value is based upon appraisals of the underlying collateral by third party appraisers, reduced by 7 % to 10 % for estimated selling costs. Such appraisals reflect estimates of amounts realizable upon property sales based on the sale of comparable properties and other factors. Actual sales prices may vary based upon the identification of potential purchasers, changing conditions in local real estate markets and the level of interest rates required to finance purchases. Commercial mortgage-backed investment security, consisting of a single Bank issued CRE security, is valued using discounted cash flow analysis. The discount rate and prepayment rate applied are based upon market observations and actual experience for comparable securities and implicitly assume market averages for defaults and loss severities. The security has significant credit enhancement, or protection from other tranches in the issue, which limits the valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce its value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on this holding in future periods and impact its fair value. |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) item | |
Derivative [Line Items] | |
Notional Amount | $ 15,000,000 |
Number of interest rate swap agreements | item | 2 |
Receivable under agreements | $ 952,000 |
Cash collateral | 518,000 |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Fair value adjustment on derivatives, gain | $ 1,500,000 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivatives) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 15,000 |
Fair Value | $ 952 |
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) | 3.60% |
Fair Value | $ 433 |
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) | 3.64% |
Fair Value | $ 519 |
Other Identifiable Intangible_3
Other Identifiable Intangible Assets (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2020 | May 31, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Accumulated amortization | $ 2,342,000 | $ 2,342,000 | $ 2,044,000 | ||||
Amortization of intangible assets | 99,000 | $ 99,000 | 298,000 | $ 298,000 | |||
Goodwill | 263,000 | 263,000 | 263,000 | ||||
McMahon Leasing [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 263,000 | ||||||
Payments for purchase of business | 8,700,000 | ||||||
Acquired finite-lived intangible assets | 1,100,000 | ||||||
Customer List Intangibles [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquisition purchase price | $ 60,000,000 | ||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years | ||||||
Amortization of intangible assets over five years | 1,300,000 | ||||||
Gross intangible assets | $ 3,400,000 | ||||||
Accumulated amortization | 2,342,000 | 2,342,000 | 2,044,000 | ||||
Amortization of intangible assets | 340,000 | ||||||
Gross Carrying Amount | 4,093,000 | 4,093,000 | 4,093,000 | ||||
Customer List Intangibles [Member] | Lease Receivable Purchased [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross intangible assets | 3,400,000 | 3,400,000 | 3,400,000 | ||||
Accumulated amortization | 2,200,000 | $ 2,200,000 | 1,900,000 | ||||
Customer List Intangibles [Member] | McMahon Leasing [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life | 12 years | ||||||
Accumulated amortization | 158,000 | $ 158,000 | $ 115,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 57,000 | 57,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 57,000 | 57,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 57,000 | 57,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 57,000 | 57,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 57,000 | 57,000 | |||||
Finite-Lived Intangible Assets, Net | $ 287,000 | $ 287,000 | |||||
Gross Carrying Amount | 689,000 | ||||||
Trade Names [Member] | McMahon Leasing [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired finite-lived intangible assets | $ 135,000 |
Other Identifiable Intangible_4
Other Identifiable Intangible Assets (Schedule Of Gross Carrying Value And Accumulated Amortization) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 263 | $ 263 |
Total | 4,491 | 4,491 |
Accumulated Amortization | 2,342 | 2,044 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 135 | 135 |
Customer List Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,093 | 4,093 |
Accumulated Amortization | $ 2,342 | $ 2,044 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Accounting Policies [Line Items] | |
Notional Amount | $ 15,000 |
Accounting Standards Update 2020-04 [Member] | |
Accounting Policies [Line Items] | |
Securities Purchased From Previous Securitizations | 12,600 |
Collateralized Loan Obligations And U.S. Government Agency Adjustable-Rate Mortgages Which Utilize LIBOR | 336,100 |
U.S. Government Agencies With Adjustable Interest Rate Indices | 62,700 |
Subordinated Debt | 13,400 |
Notional Amount | 15,000 |
Accounting Standards Update 2020-04 [Member] | Floating Rate Junior Subordinated Deferrable Interest Debenture [Member] | |
Accounting Policies [Line Items] | |
Debt, carrying amount | 10,000 |
Certain Financial Instruments Indexed To LIBOR [Member] | Accounting Standards Update 2020-04 [Member] | |
Accounting Policies [Line Items] | |
Loans | 585,800 |
Student Loan [Member] | Accounting Standards Update 2020-04 [Member] | |
Accounting Policies [Line Items] | |
Loans | $ 18,600 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Nov. 03, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Cost of repurchased share | $ 10 | $ 10 | $ 10 | $ 10 | $ 15 | |||
Share repurchased during period, shares | 663,934 | 1,769,253 | ||||||
Average cost of repurchased stock (in dollars per share) | $ 22.59 | $ 25.43 | ||||||
Subsequent Event [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Cost of repurchased share | $ 6.9 | |||||||
Average cost of repurchased stock (in dollars per share) | $ 24.57 | |||||||
Forecast [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Maximum number of shares authorized (in shares) | 60,000,000 |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of Regulatory Capital Amounts) (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets ratio "Well capitalized" institution (under FDIC regulations-Basel III) | 0.0500 | 0.0500 |
Tier 1 capital to risk-weighted assets ratio "Well capitalized" institution (under FDIC regulations-Basel III) | 0.0800 | 0.0800 |
Total capital to risk-weighted assets ratio "Well capitalized" institution (under federal regulations-Basel III) | 0.1000 | 0.1000 |
Common equity tier 1 to risk weighted assets "Well capitalized" institution (under federal regulations-Basel III) | 0.0650 | 0.0650 |
The Bancorp, Inc. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets ratio | 0.0966 | 0.1040 |
Tier 1 capital to risk-weighted assets ratio | 0.1313 | 0.1472 |
Total capital to risk-weighted assets ratio | 0.1356 | 0.1513 |
Common equity tier 1 to risk weighted assets | 0.1313 | 0.1472 |
The Bancorp Bank, National Association [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets ratio | 0.1079 | 0.1098 |
Tier 1 capital to risk-weighted assets ratio | 0.1473 | 0.1548 |
Total capital to risk-weighted assets ratio | 0.1515 | 0.1588 |
Common equity tier 1 to risk weighted assets | 0.1473 | 0.1548 |
Legal (Narrative) (Details)
Legal (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Aug. 03, 2022 | Jan. 12, 2021 | Sep. 30, 2022 | |
Maximum [Member] | |||
Loss Contingency, Damages Sought, Value | $ 300,000 | ||
Minimum [Member] | |||
Loss Contingency, Damages Sought, Value | 2,000,000 | ||
Securities Exchange Commission [Member] | |||
Loss Contingency, Damages Sought, Value | $ 1,750,000 | ||
Barker [Member] | |||
Loss Contingency, Damages Sought, Value | 4,135,142 | ||
Kamai [Member] | |||
Loss Contingency, Damages Sought, Value | 901,088 | ||
McGlynn [Member] | |||
Loss Contingency, Damages Sought, Value | $ 2,909,627 | ||
Cachet [Member] | |||
Loss Contingency, Damages Sought, Value | $ 150,000,000 |
Segment Financials (Narrative)
Segment Financials (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Financials [Abstract] | |
Continuing operation segments | 4 |
Segment Financials (Schedule Of
Segment Financials (Schedule Of Segment Financials) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||
Interest income | $ 83,921 | $ 53,500 | $ 201,385 | $ 167,403 | |||||
Interest expense | 19,262 | 2,607 | 29,304 | 8,684 | |||||
Net interest income | 64,659 | 50,893 | 172,081 | 158,719 | |||||
Provision for credit losses | 822 | 1,613 | 4,331 | 1,484 | |||||
Non-interest income | 23,426 | 26,588 | 79,943 | 76,523 | |||||
Non-interest expense | 44,830 | 39,384 | 126,027 | 125,150 | |||||
Income before income tax | 42,433 | 36,484 | 121,666 | 108,608 | |||||
Income tax expense | 11,829 | 8,289 | 31,694 | 25,195 | |||||
Net income from continuing operations | 30,604 | 28,195 | 89,972 | 83,413 | |||||
Income (Loss) from discontinued operations | 66 | 248 | |||||||
Net income | 30,604 | $ 30,402 | $ 28,966 | 28,261 | $ 29,435 | $ 25,965 | 89,972 | 83,661 | |
Total assets | 7,777,074 | 7,777,074 | $ 6,843,239 | ||||||
Total liabilities | 7,113,336 | 7,113,336 | 6,190,785 | ||||||
Specialty Finance [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 75,041 | 46,313 | 179,700 | 143,549 | |||||
Interest allocation | (17,747) | (4,314) | (28,300) | (12,713) | |||||
Interest expense | 940 | 239 | 1,429 | 723 | |||||
Net interest income | 56,354 | 41,760 | 149,971 | 130,113 | |||||
Provision for credit losses | 822 | 1,613 | 4,331 | 1,484 | |||||
Non-interest income | 1,952 | 6,408 | 11,496 | 13,864 | |||||
Non-interest expense | 18,292 | 16,452 | 53,071 | 50,844 | |||||
Income before income tax | 39,192 | 30,103 | 104,065 | 91,649 | |||||
Net income from continuing operations | 30,103 | 91,649 | |||||||
Net income | 39,192 | 30,103 | 104,065 | 91,649 | |||||
Total assets | 6,061,700 | 6,061,700 | 5,099,388 | ||||||
Total liabilities | 368,932 | 368,932 | 329,372 | ||||||
Payments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 34 | 89 | |||||||
Interest allocation | 17,154 | 5,155 | 28,565 | 15,438 | |||||
Interest expense | 13,981 | 916 | 19,989 | 3,298 | |||||
Net interest income | 3,207 | 4,239 | 8,665 | 12,140 | |||||
Non-interest income | 21,440 | 20,166 | 64,524 | 62,600 | |||||
Non-interest expense | 17,348 | 16,286 | 51,529 | 52,666 | |||||
Income before income tax | 7,299 | 8,119 | 21,660 | 22,074 | |||||
Net income from continuing operations | 8,119 | 22,074 | |||||||
Net income | 7,299 | 8,119 | 21,660 | 22,074 | |||||
Total assets | 59,561 | 59,561 | 41,593 | ||||||
Total liabilities | 5,724,483 | 5,724,483 | 5,312,115 | ||||||
Corporate [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 8,846 | 7,187 | 21,596 | 23,854 | |||||
Interest allocation | 593 | (841) | (265) | (2,725) | |||||
Interest expense | 4,341 | 1,452 | 7,886 | 4,663 | |||||
Net interest income | 5,098 | 4,894 | 13,445 | 16,466 | |||||
Non-interest income | 34 | 14 | 3,923 | 59 | |||||
Non-interest expense | 9,190 | 6,646 | 21,427 | 21,640 | |||||
Income before income tax | (4,058) | (1,738) | (4,059) | (5,115) | |||||
Income tax expense | 11,829 | 8,289 | 31,694 | 25,195 | |||||
Net income from continuing operations | (10,027) | (30,310) | |||||||
Net income | (15,887) | (10,027) | (35,753) | (30,310) | |||||
Total assets | 1,655,813 | 1,655,813 | 1,698,990 | ||||||
Total liabilities | $ 1,019,921 | $ 1,019,921 | 549,298 | ||||||
Discontinued Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income (Loss) from discontinued operations | 66 | 248 | |||||||
Net income | $ 66 | $ 248 | |||||||
Total assets | $ 3,268 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Other real estate owned expenses and losses | $ 745 | $ 2,300 | |||
Loans held for investment | $ 5,247,686 | $ 3,729,418 | |||
Other real estate owned | 18,873 | 18,873 | $ 0 | ||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Fair value adjustments | $ 384 | $ 1,500 | |||
Disposition Efforts, Reclassified [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loans held for investment | 61,600 | ||||
Other real estate owned | $ 17,300 | $ 17,300 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss before taxes | $ 87 | $ 324 | |||
Income tax expense | 21 | 76 | |||
Total assets | $ 3,268 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Interest income | 754 | 2,388 | |||
Interest expense | |||||
Net interest income | 754 | 2,388 | |||
Non-interest income | 48 | 51 | |||
Non-interest expense | 715 | 2,115 | |||
Loss before taxes | 87 | 324 | |||
Income tax expense | 21 | 76 | |||
Net loss | $ 66 | $ 248 | |||
Commercial loans, at fair value | 2,907 | ||||
Other real estate owned | 361 | ||||
Total assets | $ 3,268 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Nov. 03, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||||||||||||||
Cost of repurchased share | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 15,000 | |||||||||||
Average cost of repurchased stock (in dollars per share) | $ 22.59 | $ 25.43 | ||||||||||||||
Shares repurchased in period, value | $ 14,999 | $ 15,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 10,000 | ||||||||||
Forecast [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Shares repurchased in period, value | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 15,000 | $ 100,000 | $ 60,000 | |||||||||
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Repurchase of shares | 281,275 | |||||||||||||||
Cost of repurchased share | $ 6,900 | |||||||||||||||
Average cost of repurchased stock (in dollars per share) | $ 24.57 |