Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
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 $1.00 per share | |
Trading Symbol | TBBK | |
Security Exchange Name | NASDAQ | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,691,405 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Entity Central Index Key | 0001295401 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Cash and due from banks | $ 13,736 | $ 24,063 |
Interest-earning deposits at Federal Reserve Bank | 773,446 | 864,126 |
Total cash and cash equivalents | 787,182 | 888,189 |
Investment securities, available-for-sale, at fair value | 787,429 | 766,016 |
Commercial loans, at fair value | 493,334 | 589,143 |
Loans, net of deferred loan fees and costs | 5,354,347 | 5,486,853 |
Allowance for credit losses | (23,794) | (22,374) |
Loans, net | 5,330,553 | 5,464,479 |
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock | 12,629 | 12,629 |
Premises and equipment, net | 21,319 | 18,401 |
Accrued interest receivable | 33,729 | 32,005 |
Intangible assets, net | 1,950 | 2,049 |
Other real estate owned | 21,117 | 21,210 |
Deferred tax asset, net | 18,290 | 19,703 |
Other assets | 99,427 | 89,176 |
Total assets | 7,606,959 | 7,903,000 |
Deposits | ||
Demand and interest checking | 6,607,767 | 6,559,617 |
Savings and money market | 96,890 | 140,496 |
Time deposits, $100,000 and over | 330,000 | |
Total deposits | 6,704,657 | 7,030,113 |
Securities sold under agreements to repurchase | 42 | 42 |
Senior debt | 99,142 | 99,050 |
Subordinated debentures | 13,401 | 13,401 |
Other long-term borrowings | 9,972 | 10,028 |
Other liabilities | 54,597 | 56,335 |
Total liabilities | 6,881,811 | 7,208,969 |
SHAREHOLDERS' EQUITY | ||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 55,329,629 and 55,689,627 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 55,330 | 55,690 |
Additional paid-in capital | 277,814 | 299,279 |
Retained earnings | 418,441 | 369,319 |
Accumulated other comprehensive loss | (26,437) | (30,257) |
Total shareholders' equity | 725,148 | 694,031 |
Total liabilities and shareholders' equity | $ 7,606,959 | $ 7,903,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 55,329,629 | 55,689,627 |
Common stock, outstanding | 55,329,629 | 55,689,627 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income | ||
Loans, including fees | $ 106,259 | $ 50,591 |
Investment securities: | ||
Taxable interest | 9,300 | 4,891 |
Tax-exempt interest | 32 | 25 |
Interest-earning deposits | 6,585 | 347 |
Total interest income | 122,176 | 55,854 |
Interest expense | ||
Deposits | 34,460 | 1,606 |
Short-term borrowings | 234 | |
Long-term borrowings | 126 | |
Senior debt | 1,279 | 1,279 |
Subordinated debentures | 261 | 116 |
Total interest expense | 36,360 | 3,001 |
Net interest income | 85,816 | 52,853 |
Provision for credit losses | 1,903 | 1,507 |
Net interest income after provision for credit losses | 83,913 | 51,346 |
Non-interest income | ||
Net realized and unrealized gains on commercial loans, at fair value | 1,725 | 3,383 |
Leasing related income | 1,490 | 973 |
Other | 280 | 120 |
Total non-interest income | 28,989 | 25,112 |
Non-interest expense | ||
Salaries and employee benefits | 29,785 | 23,848 |
Depreciation and amortization | 721 | 795 |
Rent and related occupancy cost | 1,394 | 1,289 |
Data processing expense | 1,321 | 1,189 |
Printing and supplies | 145 | 86 |
Audit expense | 392 | 362 |
Legal expense | 958 | 794 |
Amortization of intangible assets | 99 | 99 |
FDIC insurance | 955 | 974 |
Software | 4,237 | 3,864 |
Insurance | 1,306 | 1,064 |
Telecom and IT network communications | 376 | 374 |
Consulting | 322 | 303 |
Writedown on other real estate owned | 1,019 | |
Other | 5,000 | 3,311 |
Total non-interest expense | 48,030 | 38,352 |
Income before income taxes | 64,872 | 38,106 |
Income tax expense | 15,750 | 9,140 |
Net income | $ 49,122 | $ 28,966 |
Net income per share - basic | $ 0.89 | $ 0.51 |
Net income per share - diluted | $ 0.88 | $ 0.50 |
ACH, Card And Other Payment Processing Fees [Member] | ||
Non-interest income | ||
Fees | $ 2,171 | $ 1,984 |
Prepaid, Debit Card And Related Fees [Member] | ||
Non-interest income | ||
Fees | $ 23,323 | $ 18,652 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 49,122 | $ 28,966 |
Securities available-for-sale: | ||
Change in net unrealized losses during the period | 5,229 | (21,686) |
Reclassification adjustments for losses included in income | 4 | 6 |
Other comprehensive income (loss) | 5,233 | (21,680) |
Securities available-for-sale: | ||
Change in net unrealized losses during the period | 1,412 | (5,855) |
Reclassification adjustments for losses included in income | 1 | 2 |
Income tax expense (benefit) related to items of other comprehensive loss | 1,413 | (5,853) |
Other comprehensive income (loss), net of tax and reclassifications into net income | 3,820 | (15,827) |
Comprehensive income | $ 52,942 | $ 13,139 |
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, 2021 | $ 57,371 | $ 349,686 | $ 239,106 | $ 6,291 | $ 652,454 |
Balance, shares at Dec. 31, 2021 | 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, 2022 | $ 55,690 | 299,279 | 369,319 | (30,257) | $ 694,031 |
Balance, shares at Dec. 31, 2022 | 55,689,627 | 55,689,627 | |||
Net income | 49,122 | $ 49,122 | |||
Common stock issued from option exercises, net of tax benefits | $ 13 | 92 | 105 | ||
Common stock issued from option exercises, net of tax benefits, shares | 13,158 | ||||
Common stock issued from restricted units, net of tax benefits | $ 405 | (405) | |||
Common stock issued from restricted units, net of tax benefits, shares | 405,286 | ||||
Stock-based compensation | 3,169 | 3,169 | |||
Common stock repurchases | $ (778) | (24,321) | $ (25,099) | ||
Common stock repurchases, shares | (778,442) | (778,442) | |||
Other comprehensive loss net of reclassification adjustments and tax | 3,820 | $ 3,820 | |||
Balance at Mar. 31, 2023 | $ 55,330 | $ 277,814 | $ 418,441 | $ (26,437) | $ 725,148 |
Balance (in shares) at Mar. 31, 2023 | 55,329,629 | 55,329,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net income | $ 49,122 | $ 28,966 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 820 | 894 |
Provision for credit losses | 1,903 | 1,507 |
Net amortization of investment securities discounts/premiums | 309 | 547 |
Stock-based compensation expense | 3,169 | 1,618 |
Gain on commercial loans, at fair value | (2,407) | (3,337) |
Writedown of other real estate owned | 830 | |
Change in fair value of commercial loans, at fair value | 603 | 1,202 |
Change in fair value of derivatives | 79 | (1,068) |
Loss on sales of investment securities | 4 | 6 |
(Increase) decrease in accrued interest receivable | (1,724) | 587 |
Increase in other assets | (7,835) | (1,369) |
Decrease in other liabilities | (1,738) | (11,168) |
Net cash provided by operating activities | 43,135 | 18,385 |
Investing activities | ||
Purchase of investment securities available-for-sale | (39,788) | (7,418) |
Proceeds from redemptions and prepayments of securities available-for-sale | 23,387 | 31,647 |
Sale of repossessed assets | 1,527 | 284 |
Net decrease (increase) in loans | 128,036 | (353,817) |
Commercial loans, at fair value drawn during the period | (35,962) | (5,826) |
Payments on commercial loans, at fair value | 132,782 | 153,709 |
Purchases of premises and equipment | (3,674) | (1,018) |
Net cash provided by (used in) investing activities | 206,308 | (182,439) |
Financing activities | ||
Net (decrease) increase in deposits | (325,456) | 251,412 |
Proceeds from the issuance of common stock | 105 | 84 |
Repurchases of common stock and excise tax | (25,099) | (15,000) |
Net cash (used in) provided by financing activities | (350,450) | 236,496 |
Net (decrease) increase in cash and cash equivalents | (101,007) | 72,442 |
Cash and cash equivalents, beginning of period | 888,189 | 601,784 |
Cash and cash equivalents, end of period | 787,182 | 674,226 |
Supplemental disclosure: | ||
Interest paid | 38,248 | 4,208 |
Taxes paid | 1,944 | 1,946 |
Non-cash investing and financing activities | ||
Transfer of loans from discontinued operations | 61,580 | |
Transfers of real estate owned from discontinued operations | 17,343 | |
Leased vehicles transferred to repossessed assets | $ 4,022 | $ 687 |
Organization And Nature Of Oper
Organization And Nature Of Operations | 3 Months Ended |
Mar. 31, 2023 | |
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, wholly-owned subsidiary is The Bancorp Bank, National Association (“the Bank”). The Bank is a nationally chartered commercial bank located in Sioux Falls, South Dakota 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 finance 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 bridge loans (“REBL”). While the national specialty finance segment generates the majority of the Company’s revenues, the payments 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. Payments segment deposits fund the majority of the Company’s loans and securities and may result in lower costs than other funding sources. Most of the payments segment’s revenues and deposits, and SBLOC and IBLOC loans, result from relationships with third parties which market such products. Concentrations of loans and deposits are based upon the cumulative account balances generated by those third parties. Similar concentrations result in revenues in prepaid, debit card and related fees. These concentrations may also be reflected in a lower cost of funds compared to other funding sources. The Company sweeps certain deposits off its balance sheet to other institutions through intermediaries. Such sweeps are utilized to optimize diversity within its funding structure by managing the percentage of individual client deposits to total deposits. 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. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 2. Significant Accounting Policies Basis of Presentation The financial statements of the Company, as of March 31, 2023 and for the three month periods ended March 31, 2023 and 2022, 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 Quarterly Report on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (the “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, 2022 (the “2022 Form 10-K”). The results of operations for the three month period ended March 31, 2023 may not necessarily be indicative of the results of operations for the full year ending December 31, 2023. There have been no significant changes to the Company’s significant accounting policies as described in the 2022 Form 10-K. 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 resumed originating such loans in 2021. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 718 Stock Based Compensation (“ASC 718”) . The expense of the option is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is typically the vesting period. For grants subject to a service condition, the Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. In accordance with ASC 718, the Company estimates the number of options for which the requisite service is expected to be rendered . At March 31, 2023, the Company had two active stock-based compensation plans. During the three months ended March 31, 2023, the Company granted 57,573 stock options with a vesting period of four years and a weighted average grant-date fair value of $ 17.37 . During the three months ended March 31, 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 . There were 13,158 common stock options exercised in the three month period ended March 31, 2023. There were 27,818 common stock options exercised in the three month period ended March 31, 2022 . 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, 2023 580,104 $ 13.25 7.48 $ 8,968,660 Granted 57,573 35.17 9.87 — Exercised ( 13,158 ) 10.45 — 278,450 Expired — — — — Forfeited ( 1,842 ) — — — Outstanding at March 31, 2023 622,677 $ 15.35 7.66 $ 8,453,205 Exercisable at March 31, 2023 290,104 $ 11.33 7.13 $ 4,854,205 During the three months ended March 31, 2023, the Company granted 514,785 restricted stock units (“RSUs”) with a vesting period of three years and a weighted average fair value of $ 35.17 per unit. During the three months ended March 31, 2022, t he Company granted 219,311 RSUs with a vesting period of three years and a weighted average fair value of $ 30.32 per unit . A summary of the Company’s RSUs is presented below. Weighted average Average remaining grant date contractual RSUs fair value term (years) Outstanding at January 1, 2023 671,696 $ 17.78 1.00 Granted 514,785 35.17 2.87 Vested ( 405,286 ) 13.12 — Forfeited — — — Outstanding at March 31, 2023 781,195 $ 31.66 2.32 As of March 31, 2023 , there was a total of $ 24.0 million of unrecognized compensation cost related to unvested awards under stock-based compensation plans. This cost is expected to be recognized over a weighted average period of approximately 2.0 years. Related compensation expense for the three months ended March 31, 2023 and 2022 was $ 3.2 million and $ 1.6 million, respectively. The total issuance date fair value of RSUs vested and options exercised during the three months ended March 31, 2023 and 2022 was $ 5.4 million and $ 4.0 million, respectively. The total intrinsic value of the options exercised and RSUs vested in those respective periods was $ 15.0 million and $ 9.4 million, respectively. For the periods ended March 31, 2023 and 2022, 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: March 31, 2023 2022 Risk-free interest rate 3.67 % 1.94 % Expected dividend yield — — Expected volatility 45.21 % 45.14 % 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 option. 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 expense for the period ended March 31, 2023 is based on awards that are ultimately expected to vest and has been reduced for estimated forfeitures. The Company estimates forfeitures using historical data or acceptable expedients. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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 excludes dilution and is 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 their exercise prices are less than the current stock price. 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 March 31, 2023 Income Shares Per share (numerator) (denominator) amount (Dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 49,122 55,452,815 $ 0.89 Effect of dilutive securities Common stock options and RSUs — 595,327 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 49,122 56,048,142 $ 0.88 Stock options for 465,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at March 31, 2023, 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 157,573 shares were anti-dilutive and not included in the earnings per share calculation. For the three months ended March 31, 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 $ 28,966 57,115,903 $ 0.51 Effect of dilutive securities Common stock options and RSUs — 980,077 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,966 58,095,980 $ 0.50 Stock options for 515,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at March 31, 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 100,000 shares were anti-dilutive and not included in the earnings per share calculation. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 are summarized as follows (in thousands): Available-for-sale March 31, 2023 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 37,907 $ 69 $ ( 1,247 ) $ 36,729 Asset-backed securities (1) 341,240 — ( 8,182 ) 333,058 Tax-exempt obligations of states and political subdivisions 5,200 48 ( 38 ) 5,210 Taxable obligations of states and political subdivisions 45,426 48 ( 1,287 ) 44,187 Residential mortgage-backed securities 174,161 161 ( 9,629 ) 164,693 Collateralized mortgage obligation securities 41,909 — ( 1,669 ) 40,240 Commercial mortgage-backed securities 167,278 — ( 11,766 ) 155,512 Corporate debt securities 10,000 — ( 2,200 ) 7,800 $ 823,121 $ 326 $ ( 36,018 ) $ 787,429 March 31, 2023 Gross Gross Amortized unrealized unrealized Fair (1) Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 7,662 $ — $ ( 110 ) $ 7,552 Collateralized loan obligation securities 333,578 — ( 8,072 ) 325,506 $ 341,240 $ — $ ( 8,182 ) $ 333,058 Available-for-sale December 31, 2022 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 29,859 $ 17 $ ( 1,495 ) $ 28,381 Asset-backed securities (1) 343,885 — ( 9,876 ) 334,009 Tax-exempt obligations of states and political subdivisions 3,560 — ( 61 ) 3,499 Taxable obligations of states and political subdivisions 45,668 52 ( 1,709 ) 44,011 Residential mortgage-backed securities 150,135 148 ( 10,463 ) 139,820 Collateralized mortgage obligation securities 43,858 — ( 2,075 ) 41,783 Commercial mortgage-backed securities 179,977 — ( 13,164 ) 166,813 Corporate debt securities 10,000 — ( 2,300 ) 7,700 $ 806,942 $ 217 $ ( 41,143 ) $ 766,016 December 31, 2022 Gross Gross Amortized unrealized unrealized Fair (1) Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 8,488 $ — $ ( 144 ) $ 8,344 Collateralized loan obligation securities 335,397 — ( 9,732 ) 325,665 $ 343,885 $ — $ ( 9,876 ) $ 334,009 Investments in Federal Home Loan Bank (“FHLB”) stock, Atlantic Central Bankers Bank (“ACBB”) stock, and Federal Reserve Bank stock are recorded at cost and amounted to $ 12.6 million and $ 12.6 million at March 31, 2023 and December 31, 2022, respectively. At each of those dates, ACBB stock amounted to $ 40,000 . The Bank’s conversion to a national charter required the purchase of $ 11.0 million of Federal Reserve Bank stock in September 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 March 31, 2023, 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 $ 12,325 $ 12,157 Due after one year through five years 149,952 144,275 Due after five years through ten years 256,556 249,466 Due after ten years 404,288 381,531 $ 823,121 $ 787,429 In 2020, the Company began pledging loans to collateralize its line of credit with the FHLB, as described in “Note 6. Loans.” The Company had no securities pledged against that line at March 31, 2023 and December 31, 2022. There were no gross realized gains on sales of securities for the three months ended March 31, 2023 and the year ended December 31, 2022. Realized losses on securities sales were $ 4,000 and $ 6,000 , respectively, for the three months ended March 31, 2023 and the year ended December 31, 2022 . 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 March 31, 2023 (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 13 $ 2,875 $ ( 31 ) $ 19,825 $ ( 1,216 ) $ 22,700 $ ( 1,247 ) Asset-backed securities 55 526 ( 2 ) 332,532 ( 8,180 ) 333,058 ( 8,182 ) Tax-exempt obligations of states and political subdivisions 4 2,069 ( 5 ) 1,126 ( 33 ) 3,195 ( 38 ) Taxable obligations of states and political subdivisions 26 10,453 ( 343 ) 29,436 ( 944 ) 39,889 ( 1,287 ) Residential mortgage-backed securities 136 42,243 ( 860 ) 111,919 ( 8,769 ) 154,162 ( 9,629 ) Collateralized mortgage obligation securities 22 2,658 ( 78 ) 37,582 ( 1,591 ) 40,240 ( 1,669 ) Commercial mortgage-backed securities 40 19,144 ( 158 ) 136,369 ( 11,608 ) 155,513 ( 11,766 ) Corporate debt securities 1 — — 7,800 ( 2,200 ) 7,800 ( 2,200 ) Total unrealized loss position investment securities 297 $ 79,968 $ ( 1,477 ) $ 676,589 $ ( 34,541 ) $ 756,557 $ ( 36,018 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 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 $ 19,523 $ ( 1,461 ) $ 2,269 $ ( 34 ) $ 21,792 $ ( 1,495 ) Asset-backed securities 55 125,938 ( 3,027 ) 208,071 ( 6,849 ) 334,009 ( 9,876 ) Tax-exempt obligations of states and political subdivisions 4 3,499 ( 61 ) — — 3,499 ( 61 ) Taxable obligations of states and political subdivisions 26 39,710 ( 1,709 ) — — 39,710 ( 1,709 ) Residential mortgage-backed securities 135 101,685 ( 6,198 ) 28,843 ( 4,265 ) 130,528 ( 10,463 ) Collateralized mortgage obligation securities 22 41,456 ( 2,057 ) 327 ( 18 ) 41,783 ( 2,075 ) Commercial mortgage-backed securities 43 124,953 ( 7,683 ) 41,860 ( 5,481 ) 166,813 ( 13,164 ) Corporate debt securities 1 — — 7,700 ( 2,300 ) 7,700 ( 2,300 ) Total unrealized loss position investment securities 298 $ 456,764 $ ( 22,196 ) $ 289,070 $ ( 18,947 ) $ 745,834 $ ( 41,143 ) The Company owns one single issuer trust preferred security issued by an insurance company. The security is not rated by any bond rating service. At March 31, 2023, this security had a book value of $ 10.0 million and a fair value of $ 7.8 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 March 31, 2023 and has concluded that no ne of these securities required an allowance for credit losses (“ACL”). The Company previously evaluated the securities in the above tables as of December 31, 2022 and concluded that none of these securities required an ACL. The Company evaluates whether an ACL 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 corporate debt securities, resulted from one single issuer trust preferred security, and 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. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Loans [Abstract] | |
Loans | Note 6. Loans The Company has several lending lines of business including: small business loans (“SBLs”), 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. In 2020, the Company decided to retain these loans on its balance sheet and currently intends to continue to do so. Therefore, these loans are no longer accounted for as held-for-sale, but the Company continues to present them at fair value. At March 31, 2023, such loans comprised $ 352.4 million of the $ 493.3 million of commercial loans, at fair value, with the balance comprised of SBA loans also previously held for sale. The amortized cost of the $ 493.3 million commercial loans at fair value was $ 494.6 million. Included in “Net realized and unrealized gains (losses) on commercial loans, at fair value” in the consolidated statements of operations are changes in the fair value of such loans. For the three months ended March 31, 2023, related net unrealized losses recognized for changes in fair value were $ 603,000 , none of which reflected losses attributable to credit weaknesses. For the three months ended March 31, 2022, net unrealized losses recognized for such changes in fair value were $ 1.2 million, which reflected $ 164,000 of loss attributable to credit weaknesses. In the third quarter of 2021, the Company resumed the origination of commercial real estate bridge 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 has pledged the majority of its loans held for investment at amortized cost and commercial loans at fair value to either the FHLB or the Federal Reserve Bank for lines of credit with those institutions. The FHLB line is periodically utilized to manage liquidity, but the Federal Reserve Bank line was not generally used prior to the pandemic. However, in response to the COVID-19 pandemic, the Federal Reserve Bank 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 Bank 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 March 31, 2023, $ 2.84 billion of loans were pledged to the Federal Reserve Bank and $ 1.25 billion of loans were pledged to the FHLB. There were no balances against these lines at March 31, 2023 . 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 had 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 issued by CRE-2. As of March 31, 2023, the principal balance of the Company’s CRE-2-issued security was $ 12.6 million. Repayment is expected from the workout or disposition of commercial real estate collateral, after repayment of one remaining senior tranche. The Company’s $ 12.6 million CRE-2 security has 50 % excess credit support; thus, losses of 50 % of remaining security balances would have to be incurred, prior to any loss on it. Additionally, the commercial real estate collateral supporting the three remaining loans which collateralize the remaining CRE-2 security balances was re-appraised between 2020 and 2022. The updated appraised value is approximately $ 56.9 million, which is net of $ 2.1 million 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 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 $ 25.9 million in July 2022 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): March 31, December 31, 2023 2022 SBL non-real estate $ 114,334 $ 108,954 SBL commercial mortgage 492,798 474,496 SBL construction 33,116 30,864 SBLs 640,248 614,314 Direct lease financing 652,541 632,160 SBLOC / IBLOC (1) 2,053,450 2,332,469 Advisor financing (2) 189,425 172,468 Real estate bridge loans 1,752,322 1,669,031 Other loans (3) 60,210 61,679 5,348,196 5,482,121 Unamortized loan fees and costs 6,151 4,732 Total loans, including unamortized loan fees and costs $ 5,354,347 $ 5,486,853 March 31, December 31, 2023 2022 SBLs, including costs net of deferred fees of $ 8,610 and $ 7,327 for March 31, 2023 and December 31, 2022, respectively $ 648,858 $ 621,641 SBLs included in commercial loans, at fair value 140,909 146,717 Total SBLs (4) $ 789,767 $ 768,358 (1) SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At March 31, 2023 and December 31, 2022, respectively, IBLOC loans amounted to $ 921.3 million and $ 1.12 billion. (2) In 2020 the Company began originating loans to investment advisors for purposes of debt refinancing, 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. (3) Includes demand deposit overdrafts reclassified as loan balances totaling $ 4.8 million and $ 2.6 million at March 31, 2023 and December 31, 2022, respectively. Estimated overdraft charge-offs and recoveries are reflected in the ACL and have been immaterial. (4) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program (as defined below) loans at the dates indicated. The following table provides information about loans individually evaluated for credit loss at March 31, 2023 and December 31, 2022 (in thousands). Legacy commercial real estate is comprised of commercial loans made by the Philadelphia commercial loan division which was discontinued. March 31, 2023 Recorded investment Unpaid principal balance Related ACL Average recorded investment Interest income recognized Without an ACL recorded SBL non-real estate $ 241 $ 2,787 $ — $ 250 $ — SBL commercial mortgage 456 456 — 298 — Direct lease financing 53 53 — 27 — Legacy commercial real estate 3,552 3,552 — 3,552 — Consumer - home equity 286 286 — 290 2 With an ACL recorded SBL non-real estate 919 919 ( 458 ) 947 1 SBL commercial mortgage 2,492 2,492 ( 481 ) 1,957 — SBL construction 3,385 3,385 ( 44 ) 3,385 — Direct lease financing 1,328 1,977 ( 689 ) 2,439 — Other loans 550 550 ( 12 ) 621 — Total SBL non-real estate 1,160 3,706 ( 458 ) 1,197 1 SBL commercial mortgage 2,948 2,948 ( 481 ) 2,255 — SBL construction 3,385 3,385 ( 44 ) 3,385 — Direct lease financing 1,381 2,030 ( 689 ) 2,466 — Legacy commercial real estate and Other loans 4,102 4,102 ( 12 ) 4,173 — Consumer - home equity 286 286 — 290 2 $ 13,262 $ 16,457 $ ( 1,684 ) $ 13,766 $ 3 December 31, 2022 Recorded investment Unpaid principal balance Related ACL Average recorded investment Interest income recognized Without an ACL recorded SBL non-real estate $ 400 $ 2,762 $ — $ 388 $ — SBL commercial mortgage — — — 45 — Direct lease financing — — — 52 — Legacy commercial real estate 3,552 3,552 — 1,421 150 Consumer - home equity 295 295 — 306 9 With an ACL recorded SBL non-real estate 974 974 ( 525 ) 1,237 7 SBL commercial mortgage 1,423 1,423 ( 441 ) 1,090 — SBL construction 3,386 3,386 ( 153 ) 1,245 — Direct lease financing 3,550 3,550 ( 933 ) 710 — Other loans 692 692 ( 15 ) 1,923 — Total SBL non-real estate 1,374 3,736 ( 525 ) 1,625 7 SBL commercial mortgage 1,423 1,423 ( 441 ) 1,135 — SBL construction 3,386 3,386 ( 153 ) 1,245 — Direct lease financing 3,550 3,550 ( 933 ) 762 — Legacy commercial real estate and Other loans 4,244 4,244 ( 15 ) 3,344 150 Consumer - home equity 295 295 — 306 9 $ 14,272 $ 16,634 $ ( 2,067 ) $ 8,417 $ 166 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 ACL as of the periods indicated (in thousands): March 31, 2023 December 31, 2022 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 $ 831 $ 241 $ 1,072 $ 1,249 SBL commercial mortgage 2,492 456 2,948 1,423 SBL construction 3,385 — 3,385 3,386 Direct leasing 1,328 53 1,381 3,550 Consumer - home equity — 50 50 56 Legacy commercial real estate and Other loans 550 3,552 4,102 692 $ 8,586 $ 4,352 $ 12,938 $ 10,356 The Company had $ 21.1 million of other real estate owned (“OREO”) at March 31, 2023 and $ 21.2 million of OREO at December 31, 2022. The following table summarizes the Company’s non-accrual loans, loans past due 90 days or more, and OREO at March 31, 2023 and December 31, 2022, respectively: March 31, December 31, 2023 2022 (Dollars in thousands) Non-accrual loans SBL non-real estate $ 1,072 $ 1,249 SBL commercial mortgage 2,948 1,423 SBL construction 3,385 3,386 Direct leasing 1,381 3,550 Legacy commercial real estate and Other loans 4,102 692 Consumer - home equity 50 56 Total non-accrual loans 12,938 10,356 Loans past due 90 days or more and still accruing 873 7,775 Total non-performing loans 13,811 18,131 OREO 21,117 21,210 Total non-performing assets $ 34,928 $ 39,341 Interest which would have been earned on loans classified as non-accrual for the three months ended March 31, 2023 and 2022, was $ 194,000 and $ 49,000 , respectively. No income on non-accrual loans was recognized during the three months ended March 31, 2023. In the three months ended March 31, 2023, $ 89,000 of legacy commercial real estate, $ 89,000 of SBL commercial real estate, $ 3,000 of SBL non-real estate, and $ 26,000 of direct leasing were reversed from interest income, which represented interest accrued on loans placed into non-accrual status during the period . In the three months ended March 31, 2022, $ 55,000 of SBL non-real estate was reversed from interest income, which represented interest accrued on loans placed into non-accrual status during the period. Material amounts of non-accrual interest reversals are charged to the ACL, but such amounts were not material in either the three months ended March 31, 2023 or 2022. Effective January 1, 2023 loan modifications to borrowers experiencing financial difficulty are required to be disclosed by type of modification and by type of loan. Prior accounting guidance classified loans which were modified as troubled debt restructurings only if the modification reflected a concession from the lender in the form of a below market interest rate or other concession in addition to borrower financial difficulty. Under the new guidance, loans with modifications will be reported whether a concession is made or not. Loans previously classified as troubled debt restructurings will continue to be reported in the following tables and loans with modifications made after January 1, 2023 will be reported under the new loan modification guidance. In the quarter ended March 31, 2023 there were no loan modifications reportable under the new guidance. The Company’s loans that were modified as of March 31, 2023 and December 31, 2022 and considered troubled debt restructurings are as follows (dollars in thousands): March 31, 2023 December 31, 2022 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 7 $ 610 $ 610 8 $ 650 $ 650 SBL commercial mortgage 1 834 834 1 834 834 Legacy commercial real estate 1 3,552 3,552 1 3,552 3,552 Consumer - home equity 1 236 236 1 239 239 Total (1) 10 $ 5,232 $ 5,232 11 $ 5,275 $ 5,275 (1) Troubled debt restructurings include non-accrual loans of $ 4.9 million and $ 1.4 million at March 31, 2023 and December 31, 2022, respectively. The balances below provide information as to how the loans were modified as troubled debt restructuring loans as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ — $ — $ 610 $ — $ — $ 650 SBL commercial mortgage — — 834 — — 834 Legacy commercial real estate — — 3,552 — — 3,552 Consumer - home equity — — 236 — — 239 Total (1) $ — $ — $ 5,232 $ — $ — $ 5,275 (1) Troubled debt restructurings include non-accrual loans of $ 4.9 million and $ 1.4 million at March 31, 2023 and December 31, 2022, respectively. The Company had no commitments to extend additional credit to loans classified as troubled debt restructurings as of March 31, 2023 or December 31, 2022. Under the previous accounting guidance explained above, when loans were classified as troubled debt restructurings, the Company estimated the value of underlying collateral and repayment sources. A specific reserve in the ACL was established if the collateral valuation, less estimated disposition costs, was lower than the recorded loan value. The amount of the specific reserve served to increase the provision for credit losses in the quarter the loan was classified as a troubled debt restructuring. As of March 31, 2023 , there were ten troubled debt restructured loans with an aggregate balance of $ 5.2 million which had specific reserves of $ 587,000 . As of December 31, 2022, there were eleven troubled debt restructured loans with an aggregate balance of $ 5.3 million which had specific reserves of $ 637,000 . Substantially all of these reserves related to the non-guaranteed portion of SBA loans for start-up businesses. While the new guidance eliminates the troubled debt restructuring classification, loans previously classified as such will now be reported as loans with modifications, whether or not the modification reflected a lender concession. Specific reserves for loans with balances which exceed collateral values will continue to be required in the ACL. The following table summarizes loans that were restructured within the twelve months ended March 31, 2023 that have subsequently defaulted (in thousands): March 31, 2023 Number Pre-modification recorded investment SBL non-real estate 2 $ 174 Legacy commercial real estate 1 3,552 Total 3 $ 3,726 Management estimates the ACL 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 ACL, which is performed at least quarterly, is also 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 ACL is performed by the Chief Credit Officer and presented to the Audit Committee of the Company’s Board of Directors (the “Board”) 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 ACLs 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 ACL. 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 ACL based upon qualitative factors such as the Company’s current loan performance statistics 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. The qualitative factor percentages are applied against the pool balances as of the end of the period. 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 ACL reverts directly to the Company’s quantitative analysis derived from its historical loss rates. The qualitative and historical loss rate component, together with the allowances on specific loans, comprise the total ACL. A similar process is employed to calculate an ACL assigned to off-balance sheet commitments, which are comprised of unfunded loan commitments and letters of credit. That ACL for unfunded commitments is recorded in other liabilities. Even though portions of the ACL may be allocated to loans that have been individually measured for credit deterioration, the entire ACL is available for any credit that, in management’s judgment, should be charged off. At March 31, 2023, the ACL for off-balance sheet commitments amounted to $ 2.5 million and the ACL for outstanding loans amounted to $ 23.8 million for total allowances of $ 26.3 million. Of the $ 26.3 million, $ 11.3 million of allowances resulted from the Company’s historical charge-off ratios, $ 1.7 million from reserves on specific loans, with the balance comprised of the qualitative component. The $ 11.3 million resulted primarily from SBA non-real estate and leasing charge-offs. The higher proportion of qualitative reserve compared to charge-off history related reserves reflects that charge-offs have not been experienced in the Company’s largest loan portfolios consisting of SBLOC and IBLOC and real estate bridge lending. The absence of significant charge-offs reflects, at least in part, the nature of related collateral respectively consisting of marketable securities, the cash value of life insurance and workforce apartment buildings. As charge-offs are nonetheless possible, significant subjectivity is required to consider qualitative factors to derive the related component of the allowance. 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 ACL 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 current expected credit loss accounting (“CECL”) methodology 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, including heightened inflation and increased risks of recession, the qualitative factors which had been set in anticipation of a downturn at January 1, 2020, were maintained through the third quarter of 2022. In the fourth quarter of 2022, as risks of a recession increased, the economic qualitative risk factor was increased for non-real estate SBL and leasing. Those higher qualitative allocations were retained in the first quarter of 2023, as negative economic indications persisted. The Company has not increased qualitative risk levels for SBLOC or IBLOC because of the nature of related collateral. SBLOC loans are subject to maximum loan to marketable securities value, and notwithstanding historic drops in the stock market in recent years, losses have not been realized. IBLOC loans are limited to borrowers with insurance companies which exceed credit requirements, and are limited to life insurance cash values. The Company also decided not to increase the economic factor for real estate bridge lending. While Federal Reserve rate increases directly increase real estate bridge loan floating rate borrowing costs, those borrowers are required to purchase interest rate caps that will partially limit the increase in borrowing costs during the term of the loan. Additionally, there continues to be several additional mitigating factors within the multifamily sector that will continue to fuel demand. Higher interest rates are increasing the cost to purchase a home, which in turn is increasing the number of renters and subsequent demand for multifamily. The softening demand for new homes should continue to exacerbate the current housing shortage, and therefore continue to fuel demand for multifamily apartment homes. Additionally, higher rents in the multifamily sector are causing renters to be more price sensitive, which is driving demand for most of the apartment buildings within the company’s loan portfolio which management considers “workforce” housing. As a result, the REBL qualitative economic factor was not increased. Officers and lenders have considered potential risks resulting from inflation and identified a risk specific to the leasing function. 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 multi-family (apartment building) loan charge-offs, 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 SBLs, 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 SBLs 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 March 31, 2023 and December 31, 2022 are as follows (in thousands): As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated (1) $ 2,301 $ — $ 3,771 $ 240 $ — $ — $ — $ 6,312 Pass 3,953 37,634 29,569 12,550 5,410 7,538 — 96,654 Special mention — — 267 51 — 906 — 1,224 Substandard — — — 320 241 586 — 1,147 Total SBL non-real estate 6,254 37,634 33,607 13,161 5,651 9,030 — 105,337 SBL commercial mortgage Non-rated 14,996 — — — — — — 14,996 Pass 10,061 127,815 95,091 63,592 64,364 106,558 — 467,481 Special mention — — — — — 453 — 453 Substandard — — — 456 1,853 2,492 — 4,801 Total SBL commercial mortgage 25,057 127,815 95,091 64,048 66,217 109,503 — 487,731 SBL construction Pass — 4,832 11,733 9,806 3,360 — — 29,731 Substandard — — 2,675 — — 710 — 3,385 Total SBL construction — 4,832 14,408 9,806 3,360 710 — 33,116 Direct lease financing Non-rated 450 — — — — — — 450 Pass 88,720 300,253 140,497 69,563 33,495 13,286 — 645,814 Special mention — 1,450 232 357 41 63 — 2,143 Substandard — 2,180 918 294 435 307 — 4,134 Total direct lease financing 89,170 303,883 141,647 70,214 33,971 13,656 — 652,541 SBLOC Non-rated — — — — — — 16,298 16,298 Pass — — — — — — 1,115,868 1,115,868 Total SBLOC — — — — — — 1,132,166 1,132,166 IBLOC Non-rated — — — — — — 806 806 Pass — — — — — — 920,478 920,478 Total IBLOC — — — — — — 921,284 921,284 Advisor financing Non-rated 8,500 1,647 889 — — — — 11,036 Pass 20,103 67,157 60,001 31,128 — — — 178,389 Total advisor financing 28,603 68,804 60,890 31,128 — — — 189,425 Real estate bridge loans Non-rated 104 — — — — — — 104 Pass 94,753 1,011,665 645,800 — — — — 1,752,218 Total real estate bridge loans 94,857 1,011,665 645,800 — — — — 1,752,322 Other loans Non-rated 5,723 — 23 21 — 14,315 466 20,548 Pass — 263 364 2,610 2,632 42,536 1,219 49,624 Substandard — — — — — 4,102 — 4,102 Total other loans (2) 5,723 263 387 2,631 2,632 60,953 1,685 74,274 $ 249,664 $ 1,554,896 $ 991,830 $ 190,988 $ 111,831 $ 193,852 $ 2,055,135 $ 5,348,196 Unamortized loan fees and costs — — — — — — — 6,151 Total $ 5,354,347 (1) Included in the SBL non real estate non-rated total of $ 6.3 million was $ 4.0 million of SBA Paycheck Protection Program (“PPP”) loans, which are guaranteed by the U.S. government. (2) Included in Other loans are $ 14.1 million of SBA loans purchased for Community Reinvestment Act |
Transactions With Affiliates
Transactions With Affiliates | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, respectively. The Bank has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons. All loans were made on substantially the same terms, including interest rate and collateral, as those prevailing at the time for comparable loans with persons not related to the lender. At March 31, 2023, 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 $ 4.5 million at March 31, 2023 and $ 5.5 million at December 31, 2022. 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 $ 2,700 and $ 356,000 for legal services for the three months ended March 31, 2023 and 2022, respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | 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 ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), 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 and the Company’s balance at the Federal Reserve Bank, had recorded values of $ 787.2 million and $ 888.2 million as of March 31, 2023 and December 31, 2022, 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 first quarter of 2023 and 2022, there were no transfers between the three levels. FHLB stock, ACBB 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 FHLB 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. Loans, net have an estimated fair value using the present value of future cash flows. 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. 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 are accounted for as such, and included in related tables. Discontinued OREO, which constituted the remainder of discontinued assets, was reclassified to the OREO caption on the consolidated balance sheet. For OREO, 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, when outstanding, 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: March 31, 2023 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 $ 787,429 $ 787,429 $ — $ 767,306 $ 20,123 FHLB, ACBB, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 493,334 493,334 — — 493,334 Loans, net of deferred loan fees and costs 5,354,347 5,336,504 — — 5,336,504 Interest rate swaps, asset 329 329 — 329 — Demand and interest checking 6,607,767 6,607,767 — 6,607,767 — Savings and money market 96,890 96,890 — 96,890 — Senior debt 99,142 95,084 — 95,084 — Subordinated debentures 13,401 10,579 — — 10,579 Securities sold under agreements to repurchase 42 42 42 — — December 31, 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 $ 766,016 $ 766,016 $ — $ 745,993 $ 20,023 FHLB, ACBB, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 589,143 589,143 — — 589,143 Loans, net of deferred loan fees and costs 5,486,853 5,462,948 — — 5,462,948 Interest rate swaps, asset 408 408 — 408 — Demand and interest checking 6,559,617 6,559,617 — 6,559,617 — Savings and money market 140,496 140,496 — 140,496 — Time deposits 330,000 330,000 — 330,000 — Senior debt 99,050 93,871 — 93,871 — Subordinated debentures 13,401 10,067 — — 10,067 Securities sold under agreements to repurchase 42 42 42 — — Other 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 March 31, 2023 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 36,729 $ — $ 36,729 $ — Asset-backed securities 333,058 — 333,058 — Obligations of states and political subdivisions 49,397 — 49,397 — Residential mortgage-backed securities 164,693 — 164,693 — Collateralized mortgage obligation securities 40,240 — 40,240 — Commercial mortgage-backed securities 155,512 — 143,189 12,323 Corporate debt securities 7,800 — — 7,800 Total investment securities, available-for-sale 787,429 — 767,306 20,123 Commercial loans, at fair value 493,334 — — 493,334 Interest rate swaps, asset 329 — 329 — $ 1,281,092 $ — $ 767,635 $ 513,457 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, 2022 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 28,381 $ — $ 28,381 $ — Asset-backed securities 334,009 — 334,009 — Obligations of states and political subdivisions 47,510 — 47,510 — Residential mortgage-backed securities 139,820 — 139,820 — Collateralized mortgage obligation securities 41,783 — 41,783 — Commercial mortgage-backed securities 166,813 — 154,490 12,323 Corporate debt securities 7,700 — — 7,700 Total investment securities, available-for-sale 766,016 — 745,993 20,023 Commercial loans, at fair value 589,143 — — 589,143 Interest rate swaps, asset 408 — 408 — $ 1,355,567 $ — $ 746,401 $ 609,166 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 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Beginning balance $ 20,023 $ 19,031 $ 589,143 $ 1,388,416 Transfers to OREO — — ( 737 ) ( 61,580 ) Total net (losses) or gains (realized/unrealized) Included in earnings — — 1,804 12,570 Included in other comprehensive income/(loss) 100 992 — — Purchases, issuances, sales and settlements Issuances — — 35,962 66,067 Settlements — — ( 132,838 ) ( 816,330 ) Ending balance $ 20,123 $ 20,023 $ 493,334 $ 589,143 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. $ — $ — $ ( 603 ) $ ( 3,492 ) 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) Assets held-for-sale from discontinued operations March 31, 2023 December 31, 2022 Beginning balance $ — $ 3,268 Settlements — ( 3,268 ) Ending balance $ — $ — 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. $ — $ — The Company’s OREO activity is summarized below (in thousands) as of the dates indicated: March 31, 2023 December 31, 2022 Beginning balance $ 21,210 $ 18,873 Transfer from commercial loans, at fair value 737 — Writedowns ( 830 ) — Sales — ( 2,343 ) Transfers from commercial loans, at fair value — 4,680 Ending balance $ 21,117 $ 21,210 Information related to fair values of Level 3 balance sheet categories is as follows (dollars in thousands) : Level 3 instruments only Weighted Fair value at Range at average at March 31, 2023 Valuation techniques Unobservable inputs March 31, 2023 March 31, 2023 Commercial mortgage-backed investment security (1) $ 12,323 Discounted cash flow Discount rate 13.00 % 13.00 % Insurance liquidating trust preferred security (2) 7,800 Discounted cash flow Discount rate 11.00 % 11.00 % FHLB, ACBB, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs (3) 5,336,504 Discounted cash flow Discount rate 5.40 %- 13.00 % 7.52 % Commercial - SBA (4) 140,909 Discounted cash flow Discount rate 5.91 %- 6.64 % 6.57 % Non-SBA commercial real estate - fixed (5) 125,899 Discounted cash flow Discount rate 8.00 %- 11.90 % 8.75 % Non-SBA commercial real estate - floating (6) 226,526 Discounted cash flow Discount rate 7.68 %- 17.30 % 9.30 % Commercial loans, at fair value 493,334 Subordinated debentures (7) 10,579 Discounted cash flow Discount rate 11.00 % 11.00 % OREO (8) 21,117 Appraised value N/A N/A N/A Level 3 instruments only Weighted Fair value at Range at average at December 31, 2022 Valuation techniques Unobservable inputs December 31, 2022 December 31, 2022 Commercial mortgage-backed investment security $ 12,323 Discounted cash flow Discount rate 12.71 % 12.71 % Insurance liquidating trust preferred security 7,700 Discounted cash flow Discount rate 11.50 % 11.50 % FHLB, ACBB, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs 5,462,948 Discounted cash flow Discount rate 5.65 % - 11.00 % 6.86 % Commercial - SBA 146,717 Discounted cash flow Discount rate 5.57 %- 6.25 % 6.17 % Non-SBA commercial real estate - fixed 28,695 Discounted cash flow and appraisal Discount rate 8.36 %- 11.65 % 10.31 % Non-SBA commercial real estate - floating 413,731 Discounted cash flow Discount rate 7.07 %- 17.20 % 7.90 % Commercial loans, at fair value 589,143 Subordinated debentures 10,067 Discounted cash flow Discount rate 11.50 % 11.50 % OREO 21,210 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 March 31, 2023 table. (1) 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 CRE-2 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 CRE-2 security. (2) 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. (3) 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. (4) 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. (5) Non-SBA commercial real estate – 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. 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. (6) Non-SBA commercial real estate – 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 March 31, 2023, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. (7) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of three-month London Inter-Bank Offered Rate (“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. (8) For OREO, 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 March 31, 2023 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 11,578 $ — $ — $ 11,578 OREO 21,117 — — 21,117 Intangible assets 1,950 — — 1,950 $ 34,645 $ — $ — $ 34,645 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, 2022 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 12,205 $ — $ — $ 12,205 OREO 21,210 — — 21,210 Intangible assets 2,049 — — 2,049 $ 35,464 $ — $ — $ 35,464 (1) The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for OREO 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 March 31, 2023, 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 $ 11.6 million. To arrive at that fair value, related loan principal of $ 13.3 million was reduced by specific reserves of $ 1.7 million within the ACL 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 March 31, 2023 were 10 troubled debt restructured loans with a balance of $ 5.2 million, which had specific reserves of $ 587,000 . Included in the collateral dependent loans at December 31, 2022, were 11 troubled debt restructured loans with a balance of $ 5.3 million which had specific allowances of $ 637,000 . 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 commercial estate loans held at fair value. These instruments are not accounted for as effective hedges. As of March 31, 2023, the Company had entered into one interest rate swap agreement with an aggregate notional amount of $ 6.8 million. Under that swap agreement the Company receives an adjustable rate of interest based upon LIBOR. The Company recorded a net loss of $ 79,000 for the three months ended March 31, 2023 to recognize the fair value of the derivative instrument 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 this swap agreement was $ 329,000 at March 31, 2023, 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 $ 527,000 as of March 31, 2023. The maturity date, notional amount, interest rate paid and received and fair value of the Company’s remaining interest rate swap agreement as of March 31, 2023 is summarized below (dollars in thousands): March 31, 2023 Maturity date Notional amount Interest rate paid Interest rate received Fair value December 23, 2025 6,800 2.16 % 5.02 % 329 Total $ 6,800 $ 329 |
Other Identifiable Intangible A
Other Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
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 ten year period. A mortization expense is $ 340,000 per year ($ 1.0 million over the next five years). The gross carrying amount of the customer list intangible is $ 3.4 million, and as of March 31, 2023 and December 31, 2022, respectively, the accumulated amortization expense was $ 2.4 million and $ 2.3 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 twelve year period and accumulated amortization expense was $ 187,000 at March 31, 2023 and $ 172,000 at December 31, 2022. 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 March 31, 2023 and December 31, 2022 are presented below. March 31, December 31, 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer list intangibles $ 4,093 $ 2,541 $ 4,093 $ 2,442 Goodwill 263 — 263 — Trade Name 135 — 135 — Total $ 4,491 $ 2,541 $ 4,491 $ 2,442 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform in Financial Reporting , which addressed optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, resulting from the phase-out of the LIBOR reference rate. 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 $ 159.6 million at March 31, 2023. However, these loans are short-term and are generally expected to be repaid by the June 2023 LIBOR end date. At March 31, 2023, the Company owned $ 12.3 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 $ 325.6 million at March 31, 2023, 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 $ 65.4 million at March 31, 2023. There is less clarity for the Company’s student loan securities of $ 7.6 million and its subordinated debentures payable of $ 13.4 million at March 31, 2023, and for which industry standards continue to be considered by trustees and other governing bodies. The Company’s derivative, the notional amount of which totaled $ 6.8 million at March 31, 2023, is an interest rate swap that is documented under a bilateral agreement which contains 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 $ 10.0 million of a Floating Rate Junior Subordinated Deferrable Interest Debenture, with a market value of $ 7.8 million at March 31, 2023, 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 December 2022, the FASB issued ASU No. 2022-06, which extended the original transition period end date referenced in ASU No. 2020-04 to December 31, 2024. 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 modifications. The Company adopted ASU 2022-02 on January 1, 2023. Effective January 1, 2023 loan modifications to borrowers experiencing financial difficulty are required to be disclosed by type of modification and by type of loan. Prior accounting guidance classified loans which were modified as troubled debt restructurings only if the modification reflected a concession from the lender in the form of a below market interest rate or other concession in addition to borrower financial difficulty. Under the new guidance, loans with modifications will be reported whether a concession is made or not. In the first quarter of 2023, there were no loan modifications which were subject to the new reporting. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 12. Shareholders’ Equity On October 20, 2021, the Board approved a common stock repurchase program for the 2022 fiscal year (the “2022 Repurchase Program”). Under the 2022 Repurchase Program, the Company repurchased $ 15.0 million in value of the Company’s common stock in each quarter of 2022. On October 26, 2022, the Board approved a common stock repurchase program for the 2023 fiscal year (the “2023 Repurchase Program”), which authorizes the Company to repurchase $ 25.0 million in value of the Company’s common stock per fiscal quarter in 2023, for a maximum amount of $ 100.0 million. Under the 2023 Repurchase Program, the Company intends to repurchase shares through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The 2023 Repurchase Program may be modified or terminated at any time. During the three months ended March 31, 2023, the Company repurchased 778,442 shares of its common stock in the open market under the 2023 Repurchase Program at an average price of $ 32.12 per share. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 The Bancorp, Inc. 9.88 % 14.34 % 14.84 % 14.34 % The Bancorp Bank, National Association 11.00 % 15.94 % 16.44 % 15.94 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % As of December 31, 2022 The Bancorp, Inc. 9.63 % 13.40 % 13.87 % 13.40 % The Bancorp Bank, National Association 10.73 % 14.95 % 15.42 % 14.95 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % |
Legal
Legal | 3 Months Ended |
Mar. 31, 2023 | |
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. At this time, 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 a non-public fact-finding inquiry from the SEC, which seeks to determine if violations of the federal securities laws have 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. By letter dated May 9, 2023, the SEC staff notified the Company that the SEC staff does not intend to recommend an enforcement action by the SEC against the Company. The Company now considers the matter closed. As a result, certain costs to the Company related to this inquiry 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, Plaintiff v. The Bancorp Bank, et al., Defendants. 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 automated clearing house (“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, which was denied in February 2023. 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, and 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 bankruptcy 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 March 27, 2023, the Bank received a Civil Investigative Demand (“CID”) from the Consumer Financial Protection Bureau (“CFPB”) seeking documents and information related to the Bank’s escheatment practices in connection with certain accounts offered through one of the Bank’s program partners. The Bank is cooperating with the CFPB in connection with the CID. The costs related to responding to and cooperating with CFPB staff may be material and could continue to be material at least through the completion of the investigation. In addition, we are a party to various routine legal proceedings arising out of the ordinary course of our business. Management believes that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or operations. |
Segment Financials
Segment Financials | 3 Months Ended |
Mar. 31, 2023 | |
Segment Financials [Abstract] | |
Segment Financials | Note 15. Segment Financials The Company operates under three segments: specialty finance, payments and corporate. The chief operating decision maker for these segments is the Chief Executive Officer. Specialty finance includes the origination of non-SBA commercial real estate 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 has adjusted prior period presentation to reflect such allocation. These operating segments reflect the way the Company views its current operations. The following tables provide segment information for the periods indicated: For the three months ended March 31, 2023 Specialty finance Payments Corporate Total (Dollars in thousands) Interest income $ 105,392 $ 18 $ 16,766 $ 122,176 Interest allocation ( 32,935 ) 34,851 ( 1,916 ) — Interest expense 1,486 30,504 4,370 36,360 Net interest income 70,971 4,365 10,480 85,816 Provision for credit losses 1,903 — — 1,903 Non-interest income 3,417 25,528 44 28,989 Non-interest expense 21,479 19,217 7,334 48,030 Income before taxes 51,006 10,676 3,190 64,872 Income tax expense — — 15,750 15,750 Net income (loss) $ 51,006 $ 10,676 $ ( 12,560 ) $ 49,122 For the three months ended March 31, 2022 Specialty finance Payments Corporate Total (Dollars in thousands) Interest income $ 49,939 $ — $ 5,915 $ 55,854 Interest allocation ( 3,528 ) 3,987 ( 459 ) — Interest expense 261 1,124 1,616 3,001 Net interest income 46,150 2,863 3,840 52,853 Provision for credit losses 1,507 — — 1,507 Non-interest income 4,260 20,673 179 25,112 Non-interest expense 17,496 17,160 3,696 38,352 Income before taxes 31,407 6,376 323 38,106 Income tax expense — — 9,140 9,140 Net income (loss) $ 31,407 $ 6,376 $ ( 8,817 ) $ 28,966 March 31, 2023 Specialty finance Payments Corporate Total (Dollars in thousands) Total assets $ 5,820,871 $ 48,598 $ 1,737,490 $ 7,606,959 Total liabilities $ 281,523 $ 6,158,133 $ 442,155 $ 6,881,811 December 31, 2022 Specialty finance Payments Corporate Total (Dollars in thousands) Total assets $ 6,042,765 $ 57,894 $ 1,802,341 $ 7,903,000 Total liabilities $ 321,335 $ 6,101,539 $ 786,095 $ 7,208,969 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company evaluated its March 31, 2023 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. Pursuant to the 2023 Repurchase Program, described in “Note 12. Shareholders’ Equity,” between April 1, 2023 and May 3, 2023, the Company repurchased 364,393 shares of its common stock, at a total cost of $ 10.2 million and an average price of $ 27.87 per share . |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The financial statements of the Company, as of March 31, 2023 and for the three month periods ended March 31, 2023 and 2022, 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 Quarterly Report on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (the “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, 2022 (the “2022 Form 10-K”). The results of operations for the three month period ended March 31, 2023 may not necessarily be indicative of the results of operations for the full year ending December 31, 2023. There have been no significant changes to the Company’s significant accounting policies as described in the 2022 Form 10-K. 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 resumed originating such loans in 2021. 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) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 580,104 $ 13.25 7.48 $ 8,968,660 Granted 57,573 35.17 9.87 — Exercised ( 13,158 ) 10.45 — 278,450 Expired — — — — Forfeited ( 1,842 ) — — — Outstanding at March 31, 2023 622,677 $ 15.35 7.66 $ 8,453,205 Exercisable at March 31, 2023 290,104 $ 11.33 7.13 $ 4,854,205 |
Summary Of Restricted Stock Units | Weighted average Average remaining grant date contractual RSUs fair value term (years) Outstanding at January 1, 2023 671,696 $ 17.78 1.00 Granted 514,785 35.17 2.87 Vested ( 405,286 ) 13.12 — Forfeited — — — Outstanding at March 31, 2023 781,195 $ 31.66 2.32 |
Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model | March 31, 2023 2022 Risk-free interest rate 3.67 % 1.94 % Expected dividend yield — — Expected volatility 45.21 % 45.14 % Expected lives (years) 6.3 6.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | For the three months ended March 31, 2023 Income Shares Per share (numerator) (denominator) amount (Dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 49,122 55,452,815 $ 0.89 Effect of dilutive securities Common stock options and RSUs — 595,327 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 49,122 56,048,142 $ 0.88 Stock options for 465,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at March 31, 2023, 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 157,573 shares were anti-dilutive and not included in the earnings per share calculation. For the three months ended March 31, 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 $ 28,966 57,115,903 $ 0.51 Effect of dilutive securities Common stock options and RSUs — 980,077 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 28,966 58,095,980 $ 0.50 Stock options for 515,104 shares, exercisable at prices between $ 6.87 and $ 18.81 per share, were outstanding at March 31, 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 100,000 shares were anti-dilutive and not included in the earnings per share calculation. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investment Securities [Abstract] | |
Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity | Available-for-sale March 31, 2023 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 37,907 $ 69 $ ( 1,247 ) $ 36,729 Asset-backed securities (1) 341,240 — ( 8,182 ) 333,058 Tax-exempt obligations of states and political subdivisions 5,200 48 ( 38 ) 5,210 Taxable obligations of states and political subdivisions 45,426 48 ( 1,287 ) 44,187 Residential mortgage-backed securities 174,161 161 ( 9,629 ) 164,693 Collateralized mortgage obligation securities 41,909 — ( 1,669 ) 40,240 Commercial mortgage-backed securities 167,278 — ( 11,766 ) 155,512 Corporate debt securities 10,000 — ( 2,200 ) 7,800 $ 823,121 $ 326 $ ( 36,018 ) $ 787,429 March 31, 2023 Gross Gross Amortized unrealized unrealized Fair (1) Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 7,662 $ — $ ( 110 ) $ 7,552 Collateralized loan obligation securities 333,578 — ( 8,072 ) 325,506 $ 341,240 $ — $ ( 8,182 ) $ 333,058 Available-for-sale December 31, 2022 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 29,859 $ 17 $ ( 1,495 ) $ 28,381 Asset-backed securities (1) 343,885 — ( 9,876 ) 334,009 Tax-exempt obligations of states and political subdivisions 3,560 — ( 61 ) 3,499 Taxable obligations of states and political subdivisions 45,668 52 ( 1,709 ) 44,011 Residential mortgage-backed securities 150,135 148 ( 10,463 ) 139,820 Collateralized mortgage obligation securities 43,858 — ( 2,075 ) 41,783 Commercial mortgage-backed securities 179,977 — ( 13,164 ) 166,813 Corporate debt securities 10,000 — ( 2,300 ) 7,700 $ 806,942 $ 217 $ ( 41,143 ) $ 766,016 December 31, 2022 Gross Gross Amortized unrealized unrealized Fair (1) Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 8,488 $ — $ ( 144 ) $ 8,344 Collateralized loan obligation securities 335,397 — ( 9,732 ) 325,665 $ 343,885 $ — $ ( 9,876 ) $ 334,009 |
Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity | Available-for-sale Amortized Fair cost value Due before one year $ 12,325 $ 12,157 Due after one year through five years 149,952 144,275 Due after five years through ten years 256,556 249,466 Due after ten years 404,288 381,531 $ 823,121 $ 787,429 |
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 13 $ 2,875 $ ( 31 ) $ 19,825 $ ( 1,216 ) $ 22,700 $ ( 1,247 ) Asset-backed securities 55 526 ( 2 ) 332,532 ( 8,180 ) 333,058 ( 8,182 ) Tax-exempt obligations of states and political subdivisions 4 2,069 ( 5 ) 1,126 ( 33 ) 3,195 ( 38 ) Taxable obligations of states and political subdivisions 26 10,453 ( 343 ) 29,436 ( 944 ) 39,889 ( 1,287 ) Residential mortgage-backed securities 136 42,243 ( 860 ) 111,919 ( 8,769 ) 154,162 ( 9,629 ) Collateralized mortgage obligation securities 22 2,658 ( 78 ) 37,582 ( 1,591 ) 40,240 ( 1,669 ) Commercial mortgage-backed securities 40 19,144 ( 158 ) 136,369 ( 11,608 ) 155,513 ( 11,766 ) Corporate debt securities 1 — — 7,800 ( 2,200 ) 7,800 ( 2,200 ) Total unrealized loss position investment securities 297 $ 79,968 $ ( 1,477 ) $ 676,589 $ ( 34,541 ) $ 756,557 $ ( 36,018 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 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 $ 19,523 $ ( 1,461 ) $ 2,269 $ ( 34 ) $ 21,792 $ ( 1,495 ) Asset-backed securities 55 125,938 ( 3,027 ) 208,071 ( 6,849 ) 334,009 ( 9,876 ) Tax-exempt obligations of states and political subdivisions 4 3,499 ( 61 ) — — 3,499 ( 61 ) Taxable obligations of states and political subdivisions 26 39,710 ( 1,709 ) — — 39,710 ( 1,709 ) Residential mortgage-backed securities 135 101,685 ( 6,198 ) 28,843 ( 4,265 ) 130,528 ( 10,463 ) Collateralized mortgage obligation securities 22 41,456 ( 2,057 ) 327 ( 18 ) 41,783 ( 2,075 ) Commercial mortgage-backed securities 43 124,953 ( 7,683 ) 41,860 ( 5,481 ) 166,813 ( 13,164 ) Corporate debt securities 1 — — 7,700 ( 2,300 ) 7,700 ( 2,300 ) Total unrealized loss position investment securities 298 $ 456,764 $ ( 22,196 ) $ 289,070 $ ( 18,947 ) $ 745,834 $ ( 41,143 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans [Abstract] | |
Major Classifications Of Loans | March 31, December 31, 2023 2022 SBL non-real estate $ 114,334 $ 108,954 SBL commercial mortgage 492,798 474,496 SBL construction 33,116 30,864 SBLs 640,248 614,314 Direct lease financing 652,541 632,160 SBLOC / IBLOC (1) 2,053,450 2,332,469 Advisor financing (2) 189,425 172,468 Real estate bridge loans 1,752,322 1,669,031 Other loans (3) 60,210 61,679 5,348,196 5,482,121 Unamortized loan fees and costs 6,151 4,732 Total loans, including unamortized loan fees and costs $ 5,354,347 $ 5,486,853 March 31, December 31, 2023 2022 SBLs, including costs net of deferred fees of $ 8,610 and $ 7,327 for March 31, 2023 and December 31, 2022, respectively $ 648,858 $ 621,641 SBLs included in commercial loans, at fair value 140,909 146,717 Total SBLs (4) $ 789,767 $ 768,358 (1) SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At March 31, 2023 and December 31, 2022, respectively, IBLOC loans amounted to $ 921.3 million and $ 1.12 billion. (2) In 2020 the Company began originating loans to investment advisors for purposes of debt refinancing, 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. (3) Includes demand deposit overdrafts reclassified as loan balances totaling $ 4.8 million and $ 2.6 million at March 31, 2023 and December 31, 2022, respectively. Estimated overdraft charge-offs and recoveries are reflected in the ACL and have been immaterial. (4) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program (as defined below) loans at the dates indicated. |
Impaired Loans | March 31, 2023 Recorded investment Unpaid principal balance Related ACL Average recorded investment Interest income recognized Without an ACL recorded SBL non-real estate $ 241 $ 2,787 $ — $ 250 $ — SBL commercial mortgage 456 456 — 298 — Direct lease financing 53 53 — 27 — Legacy commercial real estate 3,552 3,552 — 3,552 — Consumer - home equity 286 286 — 290 2 With an ACL recorded SBL non-real estate 919 919 ( 458 ) 947 1 SBL commercial mortgage 2,492 2,492 ( 481 ) 1,957 — SBL construction 3,385 3,385 ( 44 ) 3,385 — Direct lease financing 1,328 1,977 ( 689 ) 2,439 — Other loans 550 550 ( 12 ) 621 — Total SBL non-real estate 1,160 3,706 ( 458 ) 1,197 1 SBL commercial mortgage 2,948 2,948 ( 481 ) 2,255 — SBL construction 3,385 3,385 ( 44 ) 3,385 — Direct lease financing 1,381 2,030 ( 689 ) 2,466 — Legacy commercial real estate and Other loans 4,102 4,102 ( 12 ) 4,173 — Consumer - home equity 286 286 — 290 2 $ 13,262 $ 16,457 $ ( 1,684 ) $ 13,766 $ 3 December 31, 2022 Recorded investment Unpaid principal balance Related ACL Average recorded investment Interest income recognized Without an ACL recorded SBL non-real estate $ 400 $ 2,762 $ — $ 388 $ — SBL commercial mortgage — — — 45 — Direct lease financing — — — 52 — Legacy commercial real estate 3,552 3,552 — 1,421 150 Consumer - home equity 295 295 — 306 9 With an ACL recorded SBL non-real estate 974 974 ( 525 ) 1,237 7 SBL commercial mortgage 1,423 1,423 ( 441 ) 1,090 — SBL construction 3,386 3,386 ( 153 ) 1,245 — Direct lease financing 3,550 3,550 ( 933 ) 710 — Other loans 692 692 ( 15 ) 1,923 — Total SBL non-real estate 1,374 3,736 ( 525 ) 1,625 7 SBL commercial mortgage 1,423 1,423 ( 441 ) 1,135 — SBL construction 3,386 3,386 ( 153 ) 1,245 — Direct lease financing 3,550 3,550 ( 933 ) 762 — Legacy commercial real estate and Other loans 4,244 4,244 ( 15 ) 3,344 150 Consumer - home equity 295 295 — 306 9 $ 14,272 $ 16,634 $ ( 2,067 ) $ 8,417 $ 166 |
Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses | March 31, 2023 December 31, 2022 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 $ 831 $ 241 $ 1,072 $ 1,249 SBL commercial mortgage 2,492 456 2,948 1,423 SBL construction 3,385 — 3,385 3,386 Direct leasing 1,328 53 1,381 3,550 Consumer - home equity — 50 50 56 Legacy commercial real estate and Other loans 550 3,552 4,102 692 $ 8,586 $ 4,352 $ 12,938 $ 10,356 |
Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category | March 31, December 31, 2023 2022 (Dollars in thousands) Non-accrual loans SBL non-real estate $ 1,072 $ 1,249 SBL commercial mortgage 2,948 1,423 SBL construction 3,385 3,386 Direct leasing 1,381 3,550 Legacy commercial real estate and Other loans 4,102 692 Consumer - home equity 50 56 Total non-accrual loans 12,938 10,356 Loans past due 90 days or more and still accruing 873 7,775 Total non-performing loans 13,811 18,131 OREO 21,117 21,210 Total non-performing assets $ 34,928 $ 39,341 |
Loans Modified And Considered Troubled Debt Restructurings | March 31, 2023 December 31, 2022 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 7 $ 610 $ 610 8 $ 650 $ 650 SBL commercial mortgage 1 834 834 1 834 834 Legacy commercial real estate 1 3,552 3,552 1 3,552 3,552 Consumer - home equity 1 236 236 1 239 239 Total (1) 10 $ 5,232 $ 5,232 11 $ 5,275 $ 5,275 (1) Troubled debt restructurings include non-accrual loans of $ 4.9 million and $ 1.4 million at March 31, 2023 and December 31, 2022, respectively. |
Loans Modified As Troubled Debt Restructurings | March 31, 2023 December 31, 2022 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ — $ — $ 610 $ — $ — $ 650 SBL commercial mortgage — — 834 — — 834 Legacy commercial real estate — — 3,552 — — 3,552 Consumer - home equity — — 236 — — 239 Total (1) $ — $ — $ 5,232 $ — $ — $ 5,275 (1) Troubled debt restructurings include non-accrual loans of $ 4.9 million and $ 1.4 million at March 31, 2023 and December 31, 2022, respectively. |
Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted | March 31, 2023 Number Pre-modification recorded investment SBL non-real estate 2 $ 174 Legacy commercial real estate 1 3,552 Total 3 $ 3,726 |
Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade | As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated (1) $ 2,301 $ — $ 3,771 $ 240 $ — $ — $ — $ 6,312 Pass 3,953 37,634 29,569 12,550 5,410 7,538 — 96,654 Special mention — — 267 51 — 906 — 1,224 Substandard — — — 320 241 586 — 1,147 Total SBL non-real estate 6,254 37,634 33,607 13,161 5,651 9,030 — 105,337 SBL commercial mortgage Non-rated 14,996 — — — — — — 14,996 Pass 10,061 127,815 95,091 63,592 64,364 106,558 — 467,481 Special mention — — — — — 453 — 453 Substandard — — — 456 1,853 2,492 — 4,801 Total SBL commercial mortgage 25,057 127,815 95,091 64,048 66,217 109,503 — 487,731 SBL construction Pass — 4,832 11,733 9,806 3,360 — — 29,731 Substandard — — 2,675 — — 710 — 3,385 Total SBL construction — 4,832 14,408 9,806 3,360 710 — 33,116 Direct lease financing Non-rated 450 — — — — — — 450 Pass 88,720 300,253 140,497 69,563 33,495 13,286 — 645,814 Special mention — 1,450 232 357 41 63 — 2,143 Substandard — 2,180 918 294 435 307 — 4,134 Total direct lease financing 89,170 303,883 141,647 70,214 33,971 13,656 — 652,541 SBLOC Non-rated — — — — — — 16,298 16,298 Pass — — — — — — 1,115,868 1,115,868 Total SBLOC — — — — — — 1,132,166 1,132,166 IBLOC Non-rated — — — — — — 806 806 Pass — — — — — — 920,478 920,478 Total IBLOC — — — — — — 921,284 921,284 Advisor financing Non-rated 8,500 1,647 889 — — — — 11,036 Pass 20,103 67,157 60,001 31,128 — — — 178,389 Total advisor financing 28,603 68,804 60,890 31,128 — — — 189,425 Real estate bridge loans Non-rated 104 — — — — — — 104 Pass 94,753 1,011,665 645,800 — — — — 1,752,218 Total real estate bridge loans 94,857 1,011,665 645,800 — — — — 1,752,322 Other loans Non-rated 5,723 — 23 21 — 14,315 466 20,548 Pass — 263 364 2,610 2,632 42,536 1,219 49,624 Substandard — — — — — 4,102 — 4,102 Total other loans (2) 5,723 263 387 2,631 2,632 60,953 1,685 74,274 $ 249,664 $ 1,554,896 $ 991,830 $ 190,988 $ 111,831 $ 193,852 $ 2,055,135 $ 5,348,196 Unamortized loan fees and costs — — — — — — — 6,151 Total $ 5,354,347 (1) Included in the SBL non real estate non-rated total of $ 6.3 million was $ 4.0 million of SBA Paycheck Protection Program (“PPP”) loans, which are guaranteed by the U.S. government. (2) Included in Other loans are $ 14.1 million of SBA loans purchased for Community Reinvestment Act (“CRA”) purposes as of March 31, 2023. These loans are classified as SBL in the Company’s loan table, which classifies loans by type, as opposed to risk characteristics. As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated (1) $ 2,075 $ 4,266 $ 273 $ — $ — $ — $ — $ 6,614 Pass 32,402 30,388 13,432 5,599 3,931 4,555 — 90,307 Special mention — — — — 585 284 — 869 Substandard — — 320 242 15 642 — 1,219 Total SBL non-real estate 34,477 34,654 14,025 5,841 4,531 5,481 — 99,009 SBL commercial mortgage Non-rated 10,600 — — — — — — 10,600 Pass 116,647 97,968 64,388 64,692 42,461 68,193 — 454,349 Special mention — — — 1,853 — 630 — 2,483 Substandard — — 141 — 834 589 — 1,564 Total SBL commercial mortgage 127,247 97,968 64,529 66,545 43,295 69,412 — 468,996 SBL construction Pass 3,153 11,650 9,712 2,964 — — — 27,479 Substandard — 2,676 — — — 710 — 3,386 Total SBL construction 3,153 14,326 9,712 2,964 — 710 — 30,865 . Direct lease financing Non-rated 73,424 30,900 8,245 1,153 429 108 — 114,259 Pass 254,063 129,763 71,043 38,038 13,722 4,291 — 510,920 Special mention — — 61 — — — — 61 Substandard 2,854 2,324 1,658 84 — — — 6,920 Total direct lease financing 330,341 162,987 81,007 39,275 14,151 4,399 — 632,160 SBLOC Non-rated — — — — — — 4,284 4,284 Pass — — — — — — 1,205,098 1,205,098 Total SBLOC — — — — — — 1,209,382 1,209,382 IBLOC Non-rated — — — — — — 555,219 555,219 Pass — — — — — — 567,868 567,868 Total IBLOC — — — — — — 1,123,087 1,123,087 Advisor financing Non-rated 3,318 909 — — — — — 4,227 Pass 68,078 64,498 35,665 — — — — 168,241 Total advisor financing 71,396 65,407 35,665 — — — — 172,468 Real estate bridge loans Pass 1,009,708 659,323 — — — — — 1,669,031 Total real estate bridge loans 1,009,708 659,323 — — — — — 1,669,031 Other loans Non-rated 4,374 29 37 — — 16,326 488 21,254 Pass 264 366 2,611 2,750 2,820 41,571 1,187 51,569 Special mention — — — — — 3,552 — 3,552 Substandard — — — — — 692 56 748 Total other loans (2) 4,638 395 2,648 2,750 2,820 62,141 1,731 77,123 Total $ 1,580,960 $ 1,035,060 $ 207,586 $ 117,375 $ 64,797 $ 142,143 $ 2,334,200 $ 5,482,121 Unamortized loan fees and costs — — — — — — — 4,732 Total $ 5,486,853 (1) Included in the SBL non real estate non-rated total of $ 6.6 million was $ 4.5 million of SBA PPP loans, which are guaranteed by the U.S. government. (2) Included in Other loans are $ 15.4 million of SBA loans purchased for CRA purposes as of December 31, 2022. These loans are classified as SBL in the Company’s loan table, which classifies loans by type, as opposed to risk characteristics. |
Changes In Allowance For Loan And Lease Losses By Loan Category | March 31, 2023 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Deferred fees and costs Total Beginning 1/1/2023 $ 5,028 $ 2,585 $ 565 $ 7,972 $ 1,167 $ 1,293 $ 3,121 $ 643 $ — $ 22,374 Charge-offs ( 214 ) — — ( 905 ) — — — ( 3 ) — ( 1,122 ) Recoveries 202 75 — 67 — — — — — 344 Provision (credit) (1) 290 ( 179 ) ( 75 ) 2,054 ( 140 ) 128 156 ( 36 ) — 2,198 Ending balance $ 5,306 $ 2,481 $ 490 $ 9,188 $ 1,027 $ 1,421 $ 3,277 $ 604 $ — $ 23,794 Ending balance: Individually evaluated for expected credit loss $ 458 $ 481 $ 44 $ 689 $ — $ — $ — $ 12 $ — $ 1,684 Ending balance: Collectively evaluated for expected credit loss $ 4,848 $ 2,000 $ 446 $ 8,499 $ 1,027 $ 1,421 $ 3,277 $ 592 $ — $ 22,110 Loans: Ending balance $ 114,334 $ 492,798 $ 33,116 $ 652,541 $ 2,053,450 $ 189,425 $ 1,752,322 $ 60,210 $ 6,151 $ 5,354,347 Ending balance: Individually evaluated for expected credit loss $ 1,160 $ 2,948 $ 3,385 $ 1,381 $ — $ — $ — $ 4,388 $ — $ 13,262 Ending balance: Collectively evaluated for expected credit loss $ 113,174 $ 489,850 $ 29,731 $ 651,160 $ 2,053,450 $ 189,425 $ 1,752,322 $ 55,822 $ 6,151 $ 5,341,085 December 31, 2022 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Deferred fees and costs Total Beginning 1/1/2022 $ 5,415 $ 2,952 $ 432 $ 5,817 $ 964 $ 868 $ 1,181 $ 177 $ — $ 17,806 Charge-offs ( 885 ) — — ( 576 ) — — — — — ( 1,461 ) Recoveries 140 — — 124 — — — 24 — 288 Provision (credit) (1) 358 ( 367 ) 133 2,607 203 425 1,940 442 — 5,741 Ending balance $ 5,028 $ 2,585 $ 565 $ 7,972 $ 1,167 $ 1,293 $ 3,121 $ 643 $ — $ 22,374 Ending balance: Individually evaluated for expected credit loss $ 525 $ 441 $ 153 $ 933 $ — $ — $ — $ 15 $ — $ 2,067 Ending balance: Collectively evaluated for expected credit loss $ 4,503 $ 2,144 $ 412 $ 7,039 $ 1,167 $ 1,293 $ 3,121 $ 628 $ — $ 20,307 Loans: Ending balance $ 108,954 $ 474,496 $ 30,864 $ 632,160 $ 2,332,469 $ 172,468 $ 1,669,031 $ 61,679 $ 4,732 $ 5,486,853 Ending balance: Individually evaluated for expected credit loss $ 1,374 $ 1,423 $ 3,386 $ 3,550 $ — $ — $ — $ 4,539 $ — $ 14,272 Ending balance: Collectively evaluated for expected credit loss $ 107,580 $ 473,073 $ 27,478 $ 628,610 $ 2,332,469 $ 172,468 $ 1,669,031 $ 57,140 $ 4,732 $ 5,472,581 March 31, 2022 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Real estate bridge loans Other loans Deferred fees and costs Total Beginning 1/1/2022 $ 5,415 $ 2,952 $ 432 $ 5,817 $ 964 $ 868 $ 1,181 $ 177 $ — $ 17,806 Charge-offs ( 98 ) — — ( 191 ) — — — — — ( 289 ) Recoveries 12 — — 19 — — — — — 31 Provision (credit) (1) 323 176 63 319 70 230 346 ( 24 ) — 1,503 Ending balance $ 5,652 $ 3,128 $ 495 $ 5,964 $ 1,034 $ 1,098 $ 1,527 153 $ — $ 19,051 Ending balance: Individually evaluated for expected credit loss $ 1,338 $ 116 $ 34 $ — $ — $ — $ — $ — $ — $ 1,488 Ending balance: Collectively evaluated for expected credit loss $ 4,314 $ 3,012 $ 461 $ 5,964 $ 1,034 $ 1,098 $ 1,527 $ 153 $ — $ 17,563 Loans: Ending balance $ 122,387 $ 385,559 $ 31,432 $ 538,616 $ 2,067,233 $ 146,461 $ 803,477 $ 61,096 $ 8,037 $ 4,164,298 Ending balance: Individually evaluated for expected credit loss $ 2,346 $ 589 $ 710 $ 8 $ — $ — $ — $ 4,483 $ — $ 8,136 Ending balance: Collectively evaluated for expected credit loss $ 120,041 $ 384,970 $ 30,722 $ 538,608 $ 2,067,233 $ 146,461 $ 803,477 $ 56,613 $ 8,037 $ 4,156,162 (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 includes provisions for unfunded commitments as follows: a $ 295,000 provision reversal and provisions of $ 4,000 and $ 1.4 million, respectively, for the three months ended March 31, 2023 and March 31, 2022, and for full year 2022. |
Schedule Of Net Charge-offs, Classified By Year Of The Loan Origination | As of March 31, 2023 2023 2022 2021 2020 2019 Prior Total SBL non-real estate Current period charge-offs $ — $ — $ — $ — $ — $ ( 214 ) $ ( 214 ) Current period recoveries — — — — — 202 202 Current period SBL non-real estate net charge-offs — — — — — ( 12 ) ( 12 ) SBL commercial mortgage Current period charge-offs — — — — — — — Current period recoveries — — — — — 75 75 Current period SBL commercial mortgage net charge-offs — — — — — 75 75 SBL construction Current period charge-offs — — — — — — — Current period recoveries — — — — — — — Current period SBL construction net charge-offs — — — — — — — Direct lease financing Current period charge-offs — ( 363 ) ( 350 ) ( 154 ) ( 38 ) — ( 905 ) Current period recoveries — 5 20 42 — — 67 Current period direct lease financing net charge-offs — ( 358 ) ( 330 ) ( 112 ) ( 38 ) — ( 838 ) 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 — — — — — ( 3 ) ( 3 ) Current period recoveries — — — — — — — Current period other loans net recoveries — — — — — ( 3 ) ( 3 ) Total Current period charge-offs — ( 363 ) ( 350 ) ( 154 ) ( 38 ) ( 217 ) ( 1,122 ) Current period recoveries — 5 20 42 — 277 344 Current period net charge-offs $ — $ ( 358 ) $ ( 330 ) $ ( 112 ) $ ( 38 ) $ 60 $ ( 778 ) As of December 31, 2022 2022 2021 2020 2019 2018 Prior Total SBL non-real estate Current period charge-offs $ — $ — $ ( 17 ) $ — $ — $ ( 868 ) $ ( 885 ) Current period recoveries — — 2 — 8 130 140 Current period SBL non-real estate net charge-offs — — ( 15 ) — 8 ( 738 ) ( 745 ) 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 ( 93 ) ( 308 ) ( 150 ) ( 25 ) — — ( 576 ) Current period recoveries — 1 117 6 — — 124 Current period direct lease financing net charge-offs ( 93 ) ( 307 ) ( 33 ) ( 19 ) — — ( 452 ) 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 — — — — — 24 24 Current period other loans net charge-offs — — — — — 24 24 Total Current period charge-offs ( 93 ) ( 308 ) ( 167 ) ( 25 ) — ( 868 ) ( 1,461 ) Current period recoveries — 1 119 6 8 154 288 Current period net charge-offs $ ( 93 ) $ ( 307 ) $ ( 48 ) $ ( 19 ) $ 8 $ ( 714 ) $ ( 1,173 ) |
Delinquent Loans By Loan Category | March 31, 2023 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 $ 513 $ 601 $ 395 $ 1,072 $ 2,581 $ 111,753 $ 114,334 SBL commercial mortgage — 3 355 2,948 3,306 489,492 492,798 SBL construction — — — 3,385 3,385 29,731 33,116 Direct lease financing 3,312 854 94 1,381 5,641 646,900 652,541 SBLOC / IBLOC 25,599 5,509 — — 31,108 2,022,342 2,053,450 Advisor financing — — — — — 189,425 189,425 Real estate bridge loans — — — — — 1,752,322 1,752,322 Other loans 240 41 29 4,152 4,462 55,748 60,210 Unamortized loan fees and costs — — — — — 6,151 6,151 $ 29,664 $ 7,008 $ 873 $ 12,938 $ 50,483 $ 5,303,864 $ 5,354,347 December 31, 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 $ 1,312 $ 543 $ 346 $ 1,249 $ 3,450 $ 105,504 $ 108,954 SBL commercial mortgage 1,853 5 297 1,423 3,578 470,918 474,496 SBL construction — — — 3,386 3,386 27,478 30,864 Direct lease financing 4,035 2,053 539 3,550 10,177 621,983 632,160 SBLOC / IBLOC 14,782 343 2,869 — 17,994 2,314,475 2,332,469 Advisor financing — — — — — 172,468 172,468 Real estate bridge loans — — — — — 1,669,031 1,669,031 Other loans 330 90 3,724 748 4,892 56,787 61,679 Unamortized loan fees and costs — — — — — 4,732 4,732 $ 22,312 $ 3,034 $ 7,775 $ 10,356 $ 43,477 $ 5,443,376 $ 5,486,853 |
Scheduled Undiscounted Cash Flows Of Direct Financing Leases | Remaining 2023 $ 149,735 2024 148,560 2025 131,877 2026 68,981 2027 33,114 2028 and thereafter 6,040 Total undiscounted cash flows 538,307 Residual value (1) 189,636 Difference between undiscounted cash flows and discounted cash flows ( 75,402 ) Present value of lease payments recorded as lease receivables $ 652,541 (1) Of the $ 189,636,000 , $ 31,855,000 is not guaranteed by the lessee or other guarantors. |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Amount And Estimated Fair Value Of Assets And Liabilities | March 31, 2023 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 $ 787,429 $ 787,429 $ — $ 767,306 $ 20,123 FHLB, ACBB, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 493,334 493,334 — — 493,334 Loans, net of deferred loan fees and costs 5,354,347 5,336,504 — — 5,336,504 Interest rate swaps, asset 329 329 — 329 — Demand and interest checking 6,607,767 6,607,767 — 6,607,767 — Savings and money market 96,890 96,890 — 96,890 — Senior debt 99,142 95,084 — 95,084 — Subordinated debentures 13,401 10,579 — — 10,579 Securities sold under agreements to repurchase 42 42 42 — — December 31, 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 $ 766,016 $ 766,016 $ — $ 745,993 $ 20,023 FHLB, ACBB, and Federal Reserve Bank stock 12,629 12,629 — — 12,629 Commercial loans, at fair value 589,143 589,143 — — 589,143 Loans, net of deferred loan fees and costs 5,486,853 5,462,948 — — 5,462,948 Interest rate swaps, asset 408 408 — 408 — Demand and interest checking 6,559,617 6,559,617 — 6,559,617 — Savings and money market 140,496 140,496 — 140,496 — Time deposits 330,000 330,000 — 330,000 — Senior debt 99,050 93,871 — 93,871 — Subordinated debentures 13,401 10,067 — — 10,067 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 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Beginning balance $ 20,023 $ 19,031 $ 589,143 $ 1,388,416 Transfers to OREO — — ( 737 ) ( 61,580 ) Total net (losses) or gains (realized/unrealized) Included in earnings — — 1,804 12,570 Included in other comprehensive income/(loss) 100 992 — — Purchases, issuances, sales and settlements Issuances — — 35,962 66,067 Settlements — — ( 132,838 ) ( 816,330 ) Ending balance $ 20,123 $ 20,023 $ 493,334 $ 589,143 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. $ — $ — $ ( 603 ) $ ( 3,492 ) 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) Assets held-for-sale from discontinued operations March 31, 2023 December 31, 2022 Beginning balance $ — $ 3,268 Settlements — ( 3,268 ) Ending balance $ — $ — 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. $ — $ — |
Schedule Of Other Real Estate Owned | March 31, 2023 December 31, 2022 Beginning balance $ 21,210 $ 18,873 Transfer from commercial loans, at fair value 737 — Writedowns ( 830 ) — Sales — ( 2,343 ) Transfers from commercial loans, at fair value — 4,680 Ending balance $ 21,117 $ 21,210 |
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 March 31, 2023 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 36,729 $ — $ 36,729 $ — Asset-backed securities 333,058 — 333,058 — Obligations of states and political subdivisions 49,397 — 49,397 — Residential mortgage-backed securities 164,693 — 164,693 — Collateralized mortgage obligation securities 40,240 — 40,240 — Commercial mortgage-backed securities 155,512 — 143,189 12,323 Corporate debt securities 7,800 — — 7,800 Total investment securities, available-for-sale 787,429 — 767,306 20,123 Commercial loans, at fair value 493,334 — — 493,334 Interest rate swaps, asset 329 — 329 — $ 1,281,092 $ — $ 767,635 $ 513,457 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, 2022 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 28,381 $ — $ 28,381 $ — Asset-backed securities 334,009 — 334,009 — Obligations of states and political subdivisions 47,510 — 47,510 — Residential mortgage-backed securities 139,820 — 139,820 — Collateralized mortgage obligation securities 41,783 — 41,783 — Commercial mortgage-backed securities 166,813 — 154,490 12,323 Corporate debt securities 7,700 — — 7,700 Total investment securities, available-for-sale 766,016 — 745,993 20,023 Commercial loans, at fair value 589,143 — — 589,143 Interest rate swaps, asset 408 — 408 — $ 1,355,567 $ — $ 746,401 $ 609,166 |
Fair Value Inputs, Assets, Quantitative Information | (dollars in thousands) : Level 3 instruments only Weighted Fair value at Range at average at March 31, 2023 Valuation techniques Unobservable inputs March 31, 2023 March 31, 2023 Commercial mortgage-backed investment security (1) $ 12,323 Discounted cash flow Discount rate 13.00 % 13.00 % Insurance liquidating trust preferred security (2) 7,800 Discounted cash flow Discount rate 11.00 % 11.00 % FHLB, ACBB, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs (3) 5,336,504 Discounted cash flow Discount rate 5.40 %- 13.00 % 7.52 % Commercial - SBA (4) 140,909 Discounted cash flow Discount rate 5.91 %- 6.64 % 6.57 % Non-SBA commercial real estate - fixed (5) 125,899 Discounted cash flow Discount rate 8.00 %- 11.90 % 8.75 % Non-SBA commercial real estate - floating (6) 226,526 Discounted cash flow Discount rate 7.68 %- 17.30 % 9.30 % Commercial loans, at fair value 493,334 Subordinated debentures (7) 10,579 Discounted cash flow Discount rate 11.00 % 11.00 % OREO (8) 21,117 Appraised value N/A N/A N/A Level 3 instruments only Weighted Fair value at Range at average at December 31, 2022 Valuation techniques Unobservable inputs December 31, 2022 December 31, 2022 Commercial mortgage-backed investment security $ 12,323 Discounted cash flow Discount rate 12.71 % 12.71 % Insurance liquidating trust preferred security 7,700 Discounted cash flow Discount rate 11.50 % 11.50 % FHLB, ACBB, and Federal Reserve Bank stock 12,629 Cost N/A N/A N/A Loans, net of deferred loan fees and costs 5,462,948 Discounted cash flow Discount rate 5.65 % - 11.00 % 6.86 % Commercial - SBA 146,717 Discounted cash flow Discount rate 5.57 %- 6.25 % 6.17 % Non-SBA commercial real estate - fixed 28,695 Discounted cash flow and appraisal Discount rate 8.36 %- 11.65 % 10.31 % Non-SBA commercial real estate - floating 413,731 Discounted cash flow Discount rate 7.07 %- 17.20 % 7.90 % Commercial loans, at fair value 589,143 Subordinated debentures 10,067 Discounted cash flow Discount rate 11.50 % 11.50 % OREO 21,210 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 March 31, 2023 table. (1) 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 CRE-2 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 CRE-2 security. (2) 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. (3) 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. (4) 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. (5) Non-SBA commercial real estate – 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. 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. (6) Non-SBA commercial real estate – 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 March 31, 2023, these loans were fair valued by a third party, based upon discounting at market rates for similar loans. (7) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of three-month London Inter-Bank Offered Rate (“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. (8) For OREO, 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 March 31, 2023 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 11,578 $ — $ — $ 11,578 OREO 21,117 — — 21,117 Intangible assets 1,950 — — 1,950 $ 34,645 $ — $ — $ 34,645 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, 2022 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 12,205 $ — $ — $ 12,205 OREO 21,210 — — 21,210 Intangible assets 2,049 — — 2,049 $ 35,464 $ — $ — $ 35,464 (1) The method of valuation approach for the loans evaluated for an allowance for credit losses on an individual loan basis and also for OREO 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) | 3 Months Ended |
Mar. 31, 2023 | |
Derivatives [Abstract] | |
Summary Of Derivatives | March 31, 2023 Maturity date Notional amount Interest rate paid Interest rate received Fair value December 23, 2025 6,800 2.16 % 5.02 % 329 Total $ 6,800 $ 329 |
Other Identifiable Intangible_2
Other Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Identifiable Intangible Assets [Abstract] | |
Schedule Of Gross Carrying Value And Accumulated Amortization | March 31, December 31, 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer list intangibles $ 4,093 $ 2,541 $ 4,093 $ 2,442 Goodwill 263 — 263 — Trade Name 135 — 135 — Total $ 4,491 $ 2,541 $ 4,491 $ 2,442 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 The Bancorp, Inc. 9.88 % 14.34 % 14.84 % 14.34 % The Bancorp Bank, National Association 11.00 % 15.94 % 16.44 % 15.94 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % As of December 31, 2022 The Bancorp, Inc. 9.63 % 13.40 % 13.87 % 13.40 % The Bancorp Bank, National Association 10.73 % 14.95 % 15.42 % 14.95 % "Well capitalized" institution (under federal regulations-Basel III) 5.00 % 8.00 % 10.00 % 6.50 % |
Segment Financials (Tables)
Segment Financials (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Financials [Abstract] | |
Schedule Of Segment Financials | For the three months ended March 31, 2023 Specialty finance Payments Corporate Total (Dollars in thousands) Interest income $ 105,392 $ 18 $ 16,766 $ 122,176 Interest allocation ( 32,935 ) 34,851 ( 1,916 ) — Interest expense 1,486 30,504 4,370 36,360 Net interest income 70,971 4,365 10,480 85,816 Provision for credit losses 1,903 — — 1,903 Non-interest income 3,417 25,528 44 28,989 Non-interest expense 21,479 19,217 7,334 48,030 Income before taxes 51,006 10,676 3,190 64,872 Income tax expense — — 15,750 15,750 Net income (loss) $ 51,006 $ 10,676 $ ( 12,560 ) $ 49,122 For the three months ended March 31, 2022 Specialty finance Payments Corporate Total (Dollars in thousands) Interest income $ 49,939 $ — $ 5,915 $ 55,854 Interest allocation ( 3,528 ) 3,987 ( 459 ) — Interest expense 261 1,124 1,616 3,001 Net interest income 46,150 2,863 3,840 52,853 Provision for credit losses 1,507 — — 1,507 Non-interest income 4,260 20,673 179 25,112 Non-interest expense 17,496 17,160 3,696 38,352 Income before taxes 31,407 6,376 323 38,106 Income tax expense — — 9,140 9,140 Net income (loss) $ 31,407 $ 6,376 $ ( 8,817 ) $ 28,966 March 31, 2023 Specialty finance Payments Corporate Total (Dollars in thousands) Total assets $ 5,820,871 $ 48,598 $ 1,737,490 $ 7,606,959 Total liabilities $ 281,523 $ 6,158,133 $ 442,155 $ 6,881,811 December 31, 2022 Specialty finance Payments Corporate Total (Dollars in thousands) Total assets $ 6,042,765 $ 57,894 $ 1,802,341 $ 7,903,000 Total liabilities $ 321,335 $ 6,101,539 $ 786,095 $ 7,208,969 |
Organization And Nature Of Op_2
Organization And Nature Of Operations (Details) | Mar. 31, 2023 item |
Organization And Nature Of Operations [Abstract] | |
Number of specialty lending lines | 2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) item $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation plans | item | 2 | |
Unrecognized compensation cost related to unvested awards under share-based plans | $ | $ 24 | |
Cost expected to be recognized over a weighted average period | 2 years | |
Share-based Payment Arrangement, Expense | $ | $ 3.2 | $ 1.6 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 514,785 | 219,311 |
Granted (in dollars per share) | $ / shares | $ 35.17 | $ 30.32 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 57,573 | 100,000 |
Options Granted (in dollars per share) | $ / shares | $ 17.37 | $ 14.01 |
Vesting period | 4 years | 4 years |
Stock option exercised (in shares) | 13,158 | 27,818 |
Options exercised and vested in period, total intrinsic value | 15,000,000 | 9,400,000 |
Restricted Stock Units And Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards, vested in period, fair value | $ | $ 5.4 | $ 4 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Status Of Company's Equity Compensations Plans) (Details) - Stock Options [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Shares | |||
Outstanding, beginning of period (in shares) | 580,104 | ||
Granted (in shares) | 57,573 | 100,000 | |
Exercised (in shares) | (13,158) | (27,818) | |
Forfeited (in shares) | (1,842) | ||
Outstanding, end of period (in shares) | 622,677 | 580,104 | |
Exercisable, end of period (in shares) | 290,104 | ||
Weighted average exercise price | |||
Outstanding, beginning of period (in dollars per share) | $ 13.25 | ||
Granted (in dollars per share) | 35.17 | ||
Exercised (in dollars per share) | 10.45 | ||
Outstanding, end of period (in dollars per share) | 15.35 | $ 13.25 | |
Exercisable, end of period (in dollars per share) | $ 11.33 | ||
Weighted-average remaining contractual term (years) | |||
Granted | 9 years 10 months 13 days | ||
Outstanding | 7 years 7 months 28 days | 7 years 5 months 23 days | |
Exercisable, end of period | 7 years 1 month 17 days | ||
Aggregate intrinsic value | |||
Outstanding, beginning of period | $ 8,968,660 | ||
Granted | |||
Exercised | 278,450 | ||
Expired | |||
Forfeited | |||
Outstanding, end of period | 8,453,205 | $ 8,968,660 | |
Exercisable, end of period | $ 4,854,205 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 671,696 | ||
Granted (in shares) | 514,785 | 219,311 | |
Vested (in shares) | (405,286) | ||
Outstanding, end of period (in shares) | 781,195 | 671,696 | |
Weighted-average grant date fair value | |||
Outstanding, beginning of period (in dollars per share) | $ 17.78 | ||
Granted (in dollars per share) | 35.17 | $ 30.32 | |
Vested (in dollars per share) | 13.12 | ||
Outstanding, end of period (in dollars per share) | $ 31.66 | $ 17.78 | |
Average remaining contractual term (years) [Abstract] | |||
Average remaining contractual term (years), Granted | 2 years 10 months 13 days | ||
Average remaining contractual term (years), Outstanding | 2 years 3 months 25 days | 1 year |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model) (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-Based Compensation [Abstract] | ||
Risk-free interest rate (in hundredths) | 3.67% | 1.94% |
Expected dividend yield (in hundredths) | ||
Expected volatility (in hundredths) | 45.21% | 45.14% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Minimum exercisable prices (in dollars per share) | $ 6.87 | $ 6.87 |
Maximum exercisable prices (in dollars per share) | $ 18.81 | $ 18.81 |
Anti-dilutive shares not included in earnings per share calculation | 157,573 | 100,000 |
Exercise Price Range One [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, outstanding, exercisable range | 465,104 | 515,104 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income (numerator) [Abstract] | ||
Net earnings (loss) available to common shareholders | $ 49,122 | $ 28,966 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 49,122 | $ 28,966 |
Shares (denominator) [Abstract] | ||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 55,452,815 | 57,115,903 |
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 595,327 | 980,077 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 56,048,142 | 58,095,980 |
Per share amount [Abstract] | ||
Net income per share - basic | $ 0.89 | $ 0.51 |
Effect of dilutive securities, Common stock options and restricted stock units (in dollars per share) | (0.01) | (0.01) |
Net income per share - diluted | $ 0.88 | $ 0.50 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
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 | $ 12,600,000 | $ 12,600,000 |
Gross gains on sales of securities | 0 | 0 |
Gross losses on sales of securities | 4,000 | 6,000 |
Required Federal Reserve stock purchase | $ 11,000,000 | |
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 | $ 10,000,000 | |
Fair value | 7,800,000 | |
Atlantic Central Bankers Bank [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Investment stock amount | $ 40,000 | $ 40,000 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale [Abstract] | ||
Total | $ 823,121 | $ 806,942 |
Gross unrealized gains | 326 | 217 |
Gross unrealized losses | (36,018) | (41,143) |
Investment securities available-for-sale | 787,429 | 766,016 |
U.S. Government Agency Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 37,907 | 29,859 |
Gross unrealized gains | 69 | 17 |
Gross unrealized losses | (1,247) | (1,495) |
Investment securities available-for-sale | 36,729 | 28,381 |
Asset-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 341,240 | 343,885 |
Gross unrealized losses | (8,182) | (9,876) |
Investment securities available-for-sale | 333,058 | 334,009 |
Federally insured student loan securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 7,662 | 8,488 |
Gross unrealized losses | (110) | (144) |
Investment securities available-for-sale | 7,552 | 8,344 |
Collateralized Loan Obligations Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 333,578 | 335,397 |
Gross unrealized losses | (8,072) | (9,732) |
Investment securities available-for-sale | 325,506 | 325,665 |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Total | 5,200 | 3,560 |
Gross unrealized gains | 48 | |
Gross unrealized losses | (38) | (61) |
Investment securities available-for-sale | 5,210 | 3,499 |
Taxable Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Total | 45,426 | 45,668 |
Gross unrealized gains | 48 | 52 |
Gross unrealized losses | (1,287) | (1,709) |
Investment securities available-for-sale | 44,187 | 44,011 |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 174,161 | 150,135 |
Gross unrealized gains | 161 | 148 |
Gross unrealized losses | (9,629) | (10,463) |
Investment securities available-for-sale | 164,693 | 139,820 |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 41,909 | 43,858 |
Gross unrealized losses | (1,669) | (2,075) |
Investment securities available-for-sale | 40,240 | 41,783 |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 167,278 | 179,977 |
Gross unrealized losses | (11,766) | (13,164) |
Investment securities available-for-sale | 155,512 | 166,813 |
Corporate Debt Securities [Member] | ||
Available-for-sale [Abstract] | ||
Total | 10,000 | 10,000 |
Gross unrealized losses | (2,200) | (2,300) |
Investment securities available-for-sale | $ 7,800 | $ 7,700 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale, Amortized cost [Abstract] | ||
Due before one year | $ 12,325 | |
Due after one year through five years | 149,952 | |
Due after five years through ten years | 256,556 | |
Due after ten years | 404,288 | |
Total | 823,121 | $ 806,942 |
Available-for-sale, Fair value [Abstract] | ||
Due before one year | 12,157 | |
Due after one year through five years | 144,275 | |
Due after five years through ten years | 249,466 | |
Due after ten years | 381,531 | |
Total investment securities, available-for-sale | $ 787,429 | $ 766,016 |
Investment Securities (Availabl
Investment Securities (Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 297 | 298 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 79,968 | $ 456,764 |
12 months or longer, Fair Value | 676,589 | 289,070 |
Total, Fair Value | 756,557 | 745,834 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,477) | (22,196) |
12 months or longer, Unrealized losses | (34,541) | (18,947) |
Total, Unrealized losses | $ (36,018) | $ (41,143) |
U.S. Government Agency Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 13 | 12 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 2,875 | $ 19,523 |
12 months or longer, Fair Value | 19,825 | 2,269 |
Total, Fair Value | 22,700 | 21,792 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (31) | (1,461) |
12 months or longer, Unrealized losses | (1,216) | (34) |
Total, Unrealized losses | $ (1,247) | $ (1,495) |
Asset-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 55 | 55 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 526 | $ 125,938 |
12 months or longer, Fair Value | 332,532 | 208,071 |
Total, Fair Value | 333,058 | 334,009 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (2) | (3,027) |
12 months or longer, Unrealized losses | (8,180) | (6,849) |
Total, Unrealized losses | $ (8,182) | $ (9,876) |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 4 | 4 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 2,069 | $ 3,499 |
12 months or longer, Fair Value | 1,126 | |
Total, Fair Value | 3,195 | 3,499 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (5) | (61) |
12 months or longer, Unrealized losses | (33) | |
Total, Unrealized losses | $ (38) | $ (61) |
Taxable Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 26 | 26 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 10,453 | $ 39,710 |
12 months or longer, Fair Value | 29,436 | |
Total, Fair Value | 39,889 | 39,710 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (343) | (1,709) |
12 months or longer, Unrealized losses | (944) | |
Total, Unrealized losses | $ (1,287) | $ (1,709) |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 136 | 135 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 42,243 | $ 101,685 |
12 months or longer, Fair Value | 111,919 | 28,843 |
Total, Fair Value | 154,162 | 130,528 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (860) | (6,198) |
12 months or longer, Unrealized losses | (8,769) | (4,265) |
Total, Unrealized losses | $ (9,629) | $ (10,463) |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 22 | 22 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 2,658 | $ 41,456 |
12 months or longer, Fair Value | 37,582 | 327 |
Total, Fair Value | 40,240 | 41,783 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (78) | (2,057) |
12 months or longer, Unrealized losses | (1,591) | (18) |
Total, Unrealized losses | $ (1,669) | $ (2,075) |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 40 | 43 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 19,144 | $ 124,953 |
12 months or longer, Fair Value | 136,369 | 41,860 |
Total, Fair Value | 155,513 | 166,813 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (158) | (7,683) |
12 months or longer, Unrealized losses | (11,608) | (5,481) |
Total, Unrealized losses | $ (11,766) | $ (13,164) |
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 | $ 7,800 | $ 7,700 |
Total, Fair Value | 7,800 | 7,700 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (2,200) | (2,300) |
Total, Unrealized losses | $ (2,200) | $ (2,300) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 USD ($) loan item | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2020 USD ($) item | Dec. 31, 2021 USD ($) | Sep. 01, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans available for sale, unpaid principal amount | $ 494,600,000 | ||||||
Gains (losses) recognized from changes in fair value | (603,000,000,000) | $ 1,200,000 | |||||
Changes in fair value gain (loss) of loans, credit weaknesses amount | 164,000 | ||||||
Loans Receivable, Gross | 5,348,196,000 | $ 5,482,121,000 | |||||
Number of securities securitized | item | 6 | ||||||
Other real estate owned | $ 21,117,000 | $ 21,210,000 | $ 18,873,000 | ||||
Number of troubled debt restructured loans | loan | 10 | 11 | |||||
Interest which would have been earned on loans classified as non-accrual | $ 194,000 | 49,000 | |||||
Commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings | 0 | $ 0 | |||||
Non-accrual loans, income | 0 | ||||||
Troubled debt restructured loans balance | 5,232,000 | 5,275,000 | |||||
Financing receivable, troubled debt restructured loans, reserves | 587,000 | 637,000 | |||||
Assets | 7,606,959,000 | 7,903,000,000 | |||||
Purchase of lease receivables | 1,500,000 | ||||||
Payments To Acquire Small Business Lease Receivables | 15,700,000 | ||||||
Remaining balance of PPP loan reimbursed | 4,000,000 | ||||||
Foreclosed property | $ 20,900,000 | ||||||
Percent of credit enhancement | 50% | ||||||
Loans past due 90 days or more and still accruing | $ 873,000 | 7,775,000 | |||||
Total non-accrual loans | 12,938,000 | 10,356,000 | |||||
Total loans, gross | 5,348,196,000 | 5,482,121,000 | |||||
Allowance for credit losses on off-balance sheet credit | 2,500,000 | 2,800,000 | |||||
Allowance for off-balance sheet commitments | 2,500,000 | ||||||
Allowance for credit loss | 23,794,000 | 19,051,000 | 22,374,000 | 17,806,000 | |||
Total allowance | 26,300,000 | ||||||
Charge-offs | 1,122,000 | 289,000 | 1,461,000 | ||||
Federal Reserve Bank Advances [Member] | Asset Pledged as Collateral without Right [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 2,840,000,000 | ||||||
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral without Right [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | $ 1,250,000,000 | ||||||
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 | ||||||
Number of senior tranches remaining | item | 1 | ||||||
Excess credit support percent | 50% | ||||||
Percent of remaining security balances incurred, prior to any loss | 50% | ||||||
SBL Commercial Mortgage [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | $ 487,731,000 | $ 468,996,000 | |||||
Number of troubled debt restructured loans | loan | 1 | 1 | |||||
Nonaccrual loans, Income Reversed | $ 89,000 | ||||||
Troubled debt restructured loans balance | 834,000 | $ 834,000 | |||||
Total non-accrual loans | 2,948,000 | 1,423,000 | |||||
Total loans, gross | 492,798,000 | 474,496,000 | |||||
Allowance for credit loss | 2,481,000 | 3,128,000 | 2,585,000 | 2,952,000 | |||
SBL Construction [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 33,116,000 | 30,865,000 | |||||
Total non-accrual loans | 3,385,000 | 3,386,000 | |||||
Total loans, gross | 33,116,000 | 30,864,000 | |||||
Allowance for credit loss | 490,000 | 495,000 | 565,000 | 432,000 | |||
SBL Loan - PPP, Including Other Institutions [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 3,000,000 | ||||||
SBLOC [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gains (losses) recognized from changes in fair value | $ 0 | ||||||
Loans Receivable, Gross | 1,132,166,000 | 1,209,382,000 | |||||
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 | 189,425,000 | 172,468,000 | |||||
Total loans, gross | $ 189,425,000 | 172,468,000 | |||||
Loan Amount, Loan-To-Value Ratio | 70% | ||||||
Allowance for credit loss | $ 1,421,000 | 1,098,000 | 1,293,000 | 868,000 | |||
Charge-offs | |||||||
SBA Non Real Estate And Leasing [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, troubled debt restructured loans, reserves | 1,700,000 | ||||||
Charge-offs | 11,300,000 | ||||||
SBL Non-Real Estate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | $ 105,337,000 | $ 99,009,000 | |||||
Number of troubled debt restructured loans | loan | 7 | 8 | |||||
Nonaccrual loans, Income Reversed | $ 3,000 | 55,000 | |||||
Troubled debt restructured loans balance | 610,000 | $ 650,000 | |||||
Total non-accrual loans | 1,072,000 | 1,249,000 | |||||
Total loans, gross | 114,334,000 | 108,954,000 | |||||
Allowance for credit loss | 5,306,000 | 5,652,000 | 5,028,000 | 5,415,000 | |||
Charge-offs | 214,000 | 98,000 | 885,000 | ||||
Direct Lease Financing [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 652,541,000 | 632,160,000 | |||||
Nonaccrual loans, Income Reversed | 26,000 | ||||||
Total non-accrual loans | 1,381,000 | 3,550,000 | |||||
Total loans, gross | 652,541,000 | 632,160,000 | |||||
Allowance for credit loss | 9,188,000 | 5,964,000 | 7,972,000 | 5,817,000 | |||
Charge-offs | 905,000 | 191,000 | 576,000 | ||||
Legacy Commercial Real Estate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Nonaccrual loans, Income Reversed | 89,000 | ||||||
IBLOC [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 921,284,000 | 1,123,087,000 | |||||
Total loans, gross | 921,300,000 | 1,120,000,000 | |||||
Real Estate Bridge Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Gross | 1,752,322,000 | 1,669,031,000 | |||||
Total loans, gross | 1,752,322,000 | 1,669,031,000 | |||||
Allowance for credit loss | $ 3,277,000 | $ 1,527,000 | 3,121,000 | $ 1,181,000 | |||
Commercial Loan [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of securities securitized | loan | 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 | $ 56,900,000 | $ 25,900,000 | |||||
Due To Servicer | 2,100,000 | ||||||
Remaining Principal Amount To Be Repaid On Securities | 58,100,000 | ||||||
Total exposure in security | 25,000,000 | ||||||
Loans, amortized cost | 493,300,000 | ||||||
SBA Loan [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for sale | 493,300,000 | ||||||
Loans, amortized cost | 352,400,000 | ||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||
Estimated Fair Value [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for sale | $ 493,334,000 | $ 589,143,000 |
Loans (Major Classifications Of
Loans (Major Classifications Of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Major classifications of loans [Abstract] | |||
Total loans, gross | $ 5,348,196 | $ 5,482,121 | |
Unamortized loan fees and costs | 6,151 | 4,732 | |
Total loans, including unamortized loan fees and costs | 5,354,347 | 5,486,853 | $ 4,164,298 |
SBL Non-Real Estate [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 114,334 | 108,954 | |
Total loans, including unamortized loan fees and costs | 114,334 | 108,954 | 122,387 |
SBL Commercial Mortgage [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 492,798 | 474,496 | |
Total loans, including unamortized loan fees and costs | 492,798 | 474,496 | 385,559 |
SBL Construction [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 33,116 | 30,864 | |
Total loans, including unamortized loan fees and costs | 33,116 | 30,864 | 31,432 |
Small Business Loans [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 640,248 | 614,314 | |
Direct Lease Financing [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 652,541 | 632,160 | |
Total loans, including unamortized loan fees and costs | 652,541 | 632,160 | 538,616 |
SBLOC/IBLOC [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 2,053,450 | 2,332,469 | |
Total loans, including unamortized loan fees and costs | 2,053,450 | 2,332,469 | 2,067,233 |
Advisor Financing [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 189,425 | 172,468 | |
Total loans, including unamortized loan fees and costs | $ 189,425 | 172,468 | 146,461 |
Loan amount, loan-to-value ratio | 70% | ||
Real Estate Bridge Loans [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | $ 1,752,322 | 1,669,031 | |
Total loans, including unamortized loan fees and costs | 1,752,322 | 1,669,031 | 803,477 |
Other Loans [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | 60,210 | 61,679 | |
Total loans, including unamortized loan fees and costs | 60,210 | 61,679 | $ 61,096 |
Consumer - Other [Member] | |||
Major classifications of loans [Abstract] | |||
Demand deposit overdrafts reclassified as loan balances | 4,800 | 2,600 | |
IBLOC [Member] | |||
Major classifications of loans [Abstract] | |||
Total loans, gross | $ 921,300 | $ 1,120,000 |
Loans (Schedule Of Small Busine
Loans (Schedule Of Small Business Administration Loans and Held For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans [Abstract] | ||
SBL loans, including costs net of deferred fees of $8,610 and $7,327 for March 31, 2023 and December 31, 2022, respectively | $ 648,858 | $ 621,641 |
SBL loans included in commercial loans at fair value | 140,909 | 146,717 |
Total small business loans | 789,767 | 768,358 |
SBL deferred fees and costs | $ 8,610 | $ 7,327 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
With an allowance recorded [Abstract] | ||
Related allowance | $ (1,684) | $ (2,067) |
Total allowance recorded [Abstract] | ||
Recorded investment | 13,262 | 14,272 |
Unpaid principal balance | 16,457 | 16,634 |
Average recorded investment | 13,766 | 8,417 |
Interest income recognized | 3 | 166 |
SBL Non-Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 241 | 400 |
Unpaid principal balance | 2,787 | 2,762 |
Average recorded investment | 250 | 388 |
With an allowance recorded [Abstract] | ||
Recorded investment | 919 | 974 |
Unpaid principal balance | 919 | 974 |
Related allowance | (458) | (525) |
Average recorded investment | 947 | 1,237 |
Interest income recognized | 1 | 7 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,160 | 1,374 |
Unpaid principal balance | 3,706 | 3,736 |
Average recorded investment | 1,197 | 1,625 |
Interest income recognized | 1 | 7 |
SBL Commercial Mortgage [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 456 | |
Unpaid principal balance | 456 | |
Average recorded investment | 298 | 45 |
With an allowance recorded [Abstract] | ||
Recorded investment | 2,492 | 1,423 |
Unpaid principal balance | 2,492 | 1,423 |
Related allowance | (481) | (441) |
Average recorded investment | 1,957 | 1,090 |
Total allowance recorded [Abstract] | ||
Recorded investment | 2,948 | 1,423 |
Unpaid principal balance | 2,948 | 1,423 |
Average recorded investment | 2,255 | 1,135 |
SBL Construction [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded investment | 3,385 | 3,386 |
Unpaid principal balance | 3,385 | 3,386 |
Related allowance | (44) | (153) |
Average recorded investment | 3,385 | 1,245 |
Total allowance recorded [Abstract] | ||
Recorded investment | 3,385 | 3,386 |
Unpaid principal balance | 3,385 | 3,386 |
Average recorded investment | 3,385 | 1,245 |
Direct Lease Financing [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 53 | |
Unpaid principal balance | 53 | |
Average recorded investment | 27 | 52 |
With an allowance recorded [Abstract] | ||
Recorded investment | 1,328 | 3,550 |
Unpaid principal balance | 1,977 | 3,550 |
Related allowance | (689) | (933) |
Average recorded investment | 2,439 | 710 |
Total allowance recorded [Abstract] | ||
Recorded investment | 1,381 | 3,550 |
Unpaid principal balance | 2,030 | 3,550 |
Average recorded investment | 2,466 | 762 |
Consumer - Other [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded investment | 692 | |
Unpaid principal balance | 692 | |
Related allowance | (15) | |
Average recorded investment | 1,923 | |
Legacy Commercial Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 3,552 | 3,552 |
Unpaid principal balance | 3,552 | 3,552 |
Average recorded investment | 3,552 | 1,421 |
Interest income recognized | 150 | |
Other Loans [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded investment | 550 | |
Unpaid principal balance | 550 | |
Related allowance | (12) | |
Average recorded investment | 621 | |
Legacy Commercial Real Estate And Other Loans [Member] | ||
With an allowance recorded [Abstract] | ||
Related allowance | (12) | (15) |
Total allowance recorded [Abstract] | ||
Recorded investment | 4,102 | 4,244 |
Unpaid principal balance | 4,102 | 4,244 |
Average recorded investment | 4,173 | 3,344 |
Interest income recognized | 150 | |
Consumer - Home Equity [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 286 | 295 |
Unpaid principal balance | 286 | 295 |
Average recorded investment | 290 | 306 |
Interest income recognized | 2 | 9 |
Total allowance recorded [Abstract] | ||
Recorded investment | 286 | 295 |
Unpaid principal balance | 286 | 295 |
Average recorded investment | 290 | 306 |
Interest income recognized | $ 2 | $ 9 |
Loans (Summary Of Non-Accrual L
Loans (Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | $ 8,586 | |
Non-accrual loans without a related ACL | 4,352 | |
Total non-accrual loans | 12,938 | $ 10,356 |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 831 | |
Non-accrual loans without a related ACL | 241 | |
Total non-accrual loans | 1,072 | 1,249 |
SBL Commercial Mortgage [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 2,492 | |
Non-accrual loans without a related ACL | 456 | |
Total non-accrual loans | 2,948 | 1,423 |
SBL Construction [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 3,385 | |
Total non-accrual loans | 3,385 | 3,386 |
Direct Lease Financing [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 1,328 | |
Non-accrual loans without a related ACL | 53 | |
Total non-accrual loans | 1,381 | 3,550 |
Consumer - Home Equity [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans without a related ACL | 50 | |
Total non-accrual loans | 50 | 56 |
Legacy Commercial Real Estate And Other Loans [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 550 | |
Non-accrual loans without a related ACL | 3,552 | |
Total non-accrual loans | $ 4,102 | $ 692 |
Loans (Non-accrual Loans, Loans
Loans (Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | $ 12,938 | $ 10,356 | |
Loans past due 90 days or more and still accruing | 873 | 7,775 | |
Total non-performing loans | 5,348,196 | 5,482,121 | |
Other real estate owned | 21,117 | 21,210 | $ 18,873 |
Total non-performing assets | 34,928 | 39,341 | |
Non-Performing Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-performing loans | 13,811 | 18,131 | |
SBL Non-Real Estate [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 1,072 | 1,249 | |
Total non-performing loans | 114,334 | 108,954 | |
SBL Non-Real Estate [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 1,072 | 1,249 | |
SBL Commercial Mortgage [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 2,948 | 1,423 | |
Total non-performing loans | 492,798 | 474,496 | |
SBL Commercial Mortgage [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 2,948 | 1,423 | |
SBL Construction [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 3,385 | 3,386 | |
Total non-performing loans | 33,116 | 30,864 | |
SBL Construction [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 3,385 | 3,386 | |
Direct Lease Financing [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 1,381 | 3,550 | |
Total non-performing loans | 652,541 | 632,160 | |
Direct Lease Financing [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 1,381 | 3,550 | |
Legacy Commercial Real Estate And Other Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 4,102 | 692 | |
Legacy Commercial Real Estate And Other Loans [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 4,102 | 692 | |
Other Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-performing loans | 60,210 | 61,679 | |
Consumer - Home Equity [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | 50 | 56 | |
Consumer - Home Equity [Member] | Non-Accrual Loans [Member] | |||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | |||
Total non-accrual loans | $ 50 | $ 56 |
Loans (Loans Modified And Consi
Loans (Loans Modified And Considered Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 10 | 11 |
Pre-modification recorded investment | $ 5,232 | $ 5,275 |
Post-modification recorded investment | 5,232 | 5,275 |
Troubled debt restructurings including nonaccrual loans | $ 4,900 | $ 1,400 |
Subsequently Defaulted [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 3 | |
Pre-modification recorded investment | $ 3,726 | |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 7 | 8 |
Pre-modification recorded investment | $ 610 | $ 650 |
Post-modification recorded investment | $ 610 | $ 650 |
SBL Non-Real Estate [Member] | Subsequently Defaulted [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 2 | |
Pre-modification recorded investment | $ 174 | |
SBL Commercial Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 1 | 1 |
Pre-modification recorded investment | $ 834 | $ 834 |
Post-modification recorded investment | $ 834 | $ 834 |
Legacy Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 1 | 1 |
Pre-modification recorded investment | $ 3,552 | $ 3,552 |
Post-modification recorded investment | $ 3,552 | $ 3,552 |
Legacy Commercial Real Estate [Member] | Subsequently Defaulted [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 1 | |
Pre-modification recorded investment | $ 3,552 | |
Consumer - Home Equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 1 | 1 |
Pre-modification recorded investment | $ 236 | $ 239 |
Post-modification recorded investment | $ 236 | $ 239 |
Loans (Loans Modified As Troubl
Loans (Loans Modified As Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | $ 5,232 | $ 5,275 |
Troubled debt restructurings including nonaccrual loans | 4,900 | 1,400 |
SBL Non-Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | 610 | 650 |
SBL Commercial Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | 834 | 834 |
Legacy Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | 3,552 | 3,552 |
Consumer - Home Equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | $ 236 | $ 239 |
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 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | $ 249,664 | $ 1,580,960 | |
Fiscal Year Before Latest Fiscal Year | 1,554,896 | 1,035,060 | |
Two Years Before Latest Fiscal Year | 991,830 | 207,586 | |
Three Years Before Latest Fiscal Year | 190,988 | 117,375 | |
Four Years Before Latest Fiscal Year | 111,831 | 64,797 | |
Prior | 193,852 | 142,143 | |
Revolving loans at amortized cost | 2,055,135 | 2,334,200 | |
Total | 5,348,196 | 5,482,121 | |
Unamortized loan fees and costs | 6,151 | 4,732 | |
Total loans, including unamortized loan fees and costs | 5,354,347 | 5,486,853 | $ 4,164,298 |
SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 6,254 | 34,477 | |
Fiscal Year Before Latest Fiscal Year | 37,634 | 34,654 | |
Two Years Before Latest Fiscal Year | 33,607 | 14,025 | |
Three Years Before Latest Fiscal Year | 13,161 | 5,841 | |
Four Years Before Latest Fiscal Year | 5,651 | 4,531 | |
Prior | 9,030 | 5,481 | |
Total | 105,337 | 99,009 | |
Total loans, including unamortized loan fees and costs | 114,334 | 108,954 | 122,387 |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 25,057 | 127,247 | |
Fiscal Year Before Latest Fiscal Year | 127,815 | 97,968 | |
Two Years Before Latest Fiscal Year | 95,091 | 64,529 | |
Three Years Before Latest Fiscal Year | 64,048 | 66,545 | |
Four Years Before Latest Fiscal Year | 66,217 | 43,295 | |
Prior | 109,503 | 69,412 | |
Total | 487,731 | 468,996 | |
Total loans, including unamortized loan fees and costs | 492,798 | 474,496 | 385,559 |
SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 3,153 | ||
Fiscal Year Before Latest Fiscal Year | 4,832 | 14,326 | |
Two Years Before Latest Fiscal Year | 14,408 | 9,712 | |
Three Years Before Latest Fiscal Year | 9,806 | 2,964 | |
Four Years Before Latest Fiscal Year | 3,360 | ||
Prior | 710 | 710 | |
Total | 33,116 | 30,865 | |
Total loans, including unamortized loan fees and costs | 33,116 | 30,864 | 31,432 |
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 89,170 | 330,341 | |
Fiscal Year Before Latest Fiscal Year | 303,883 | 162,987 | |
Two Years Before Latest Fiscal Year | 141,647 | 81,007 | |
Three Years Before Latest Fiscal Year | 70,214 | 39,275 | |
Four Years Before Latest Fiscal Year | 33,971 | 14,151 | |
Prior | 13,656 | 4,399 | |
Total | 652,541 | 632,160 | |
Total loans, including unamortized loan fees and costs | 652,541 | 632,160 | 538,616 |
SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 1,132,166 | 1,209,382 | |
Total | 1,132,166 | 1,209,382 | |
IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 921,284 | 1,123,087 | |
Total | 921,284 | 1,123,087 | |
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 28,603 | 71,396 | |
Fiscal Year Before Latest Fiscal Year | 68,804 | 65,407 | |
Two Years Before Latest Fiscal Year | 60,890 | 35,665 | |
Three Years Before Latest Fiscal Year | 31,128 | ||
Total | 189,425 | 172,468 | |
Total loans, including unamortized loan fees and costs | 189,425 | 172,468 | 146,461 |
Real Estate Bridge Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 94,857 | 1,009,708 | |
Fiscal Year Before Latest Fiscal Year | 1,011,665 | 659,323 | |
Two Years Before Latest Fiscal Year | 645,800 | ||
Total | 1,752,322 | 1,669,031 | |
Total loans, including unamortized loan fees and costs | 1,752,322 | 1,669,031 | 803,477 |
Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 5,723 | 4,638 | |
Fiscal Year Before Latest Fiscal Year | 263 | 395 | |
Two Years Before Latest Fiscal Year | 387 | 2,648 | |
Three Years Before Latest Fiscal Year | 2,631 | 2,750 | |
Four Years Before Latest Fiscal Year | 2,632 | 2,820 | |
Prior | 60,953 | 62,141 | |
Revolving loans at amortized cost | 1,685 | 1,731 | |
Total | 74,274 | 77,123 | |
Total loans, including unamortized loan fees and costs | 60,210 | 61,679 | $ 61,096 |
SBL CRA [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 14,100 | 15,400 | |
Non-Rated [Member] | SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 2,301 | 2,075 | |
Fiscal Year Before Latest Fiscal Year | 4,266 | ||
Two Years Before Latest Fiscal Year | 3,771 | 273 | |
Three Years Before Latest Fiscal Year | 240 | ||
Total | 6,312 | 6,614 | |
Non-Rated [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 14,996 | 10,600 | |
Total | 14,996 | 10,600 | |
Non-Rated [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 450 | 73,424 | |
Fiscal Year Before Latest Fiscal Year | 30,900 | ||
Two Years Before Latest Fiscal Year | 8,245 | ||
Three Years Before Latest Fiscal Year | 1,153 | ||
Four Years Before Latest Fiscal Year | 429 | ||
Prior | 108 | ||
Total | 450 | 114,259 | |
Non-Rated [Member] | SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 16,298 | 4,284 | |
Total | 16,298 | 4,284 | |
Non-Rated [Member] | IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 806 | 555,219 | |
Total | 806 | 555,219 | |
Non-Rated [Member] | Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 8,500 | 3,318 | |
Fiscal Year Before Latest Fiscal Year | 1,647 | 909 | |
Two Years Before Latest Fiscal Year | 889 | ||
Total | 11,036 | 4,227 | |
Non-Rated [Member] | Real Estate Bridge Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 104 | ||
Total | 104 | ||
Non-Rated [Member] | Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 5,723 | 4,374 | |
Fiscal Year Before Latest Fiscal Year | 29 | ||
Two Years Before Latest Fiscal Year | 23 | 37 | |
Three Years Before Latest Fiscal Year | 21 | ||
Prior | 14,315 | 16,326 | |
Revolving loans at amortized cost | 466 | 488 | |
Total | 20,548 | 21,254 | |
Non-Rated [Member] | SBA Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 6,600 | ||
Non-Rated [Member] | SBA Loan PPP [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 4,000 | 4,500 | |
Pass [Member] | SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 3,953 | 32,402 | |
Fiscal Year Before Latest Fiscal Year | 37,634 | 30,388 | |
Two Years Before Latest Fiscal Year | 29,569 | 13,432 | |
Three Years Before Latest Fiscal Year | 12,550 | 5,599 | |
Four Years Before Latest Fiscal Year | 5,410 | 3,931 | |
Prior | 7,538 | 4,555 | |
Total | 96,654 | 90,307 | |
Pass [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 10,061 | 116,647 | |
Fiscal Year Before Latest Fiscal Year | 127,815 | 97,968 | |
Two Years Before Latest Fiscal Year | 95,091 | 64,388 | |
Three Years Before Latest Fiscal Year | 63,592 | 64,692 | |
Four Years Before Latest Fiscal Year | 64,364 | 42,461 | |
Prior | 106,558 | 68,193 | |
Total | 467,481 | 454,349 | |
Pass [Member] | SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 3,153 | ||
Fiscal Year Before Latest Fiscal Year | 4,832 | 11,650 | |
Two Years Before Latest Fiscal Year | 11,733 | 9,712 | |
Three Years Before Latest Fiscal Year | 9,806 | 2,964 | |
Four Years Before Latest Fiscal Year | 3,360 | ||
Total | 29,731 | 27,479 | |
Pass [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 88,720 | 254,063 | |
Fiscal Year Before Latest Fiscal Year | 300,253 | 129,763 | |
Two Years Before Latest Fiscal Year | 140,497 | 71,043 | |
Three Years Before Latest Fiscal Year | 69,563 | 38,038 | |
Four Years Before Latest Fiscal Year | 33,495 | 13,722 | |
Prior | 13,286 | 4,291 | |
Total | 645,814 | 510,920 | |
Pass [Member] | SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 1,115,868 | 1,205,098 | |
Total | 1,115,868 | 1,205,098 | |
Pass [Member] | IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 920,478 | 567,868 | |
Total | 920,478 | 567,868 | |
Pass [Member] | Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 20,103 | 68,078 | |
Fiscal Year Before Latest Fiscal Year | 67,157 | 64,498 | |
Two Years Before Latest Fiscal Year | 60,001 | 35,665 | |
Three Years Before Latest Fiscal Year | 31,128 | ||
Total | 178,389 | 168,241 | |
Pass [Member] | Real Estate Bridge Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 94,753 | 1,009,708 | |
Fiscal Year Before Latest Fiscal Year | 1,011,665 | 659,323 | |
Two Years Before Latest Fiscal Year | 645,800 | ||
Total | 1,752,218 | 1,669,031 | |
Pass [Member] | Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 264 | ||
Fiscal Year Before Latest Fiscal Year | 263 | 366 | |
Two Years Before Latest Fiscal Year | 364 | 2,611 | |
Three Years Before Latest Fiscal Year | 2,610 | 2,750 | |
Four Years Before Latest Fiscal Year | 2,632 | 2,820 | |
Prior | 42,536 | 41,571 | |
Revolving loans at amortized cost | 1,219 | 1,187 | |
Total | 49,624 | 51,569 | |
Special Mention [Member] | SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Two Years Before Latest Fiscal Year | 267 | ||
Three Years Before Latest Fiscal Year | 51 | ||
Four Years Before Latest Fiscal Year | 585 | ||
Prior | 906 | 284 | |
Total | 1,224 | 869 | |
Special Mention [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Three Years Before Latest Fiscal Year | 1,853 | ||
Prior | 453 | 630 | |
Total | 453 | 2,483 | |
Special Mention [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Fiscal Year Before Latest Fiscal Year | 1,450 | ||
Two Years Before Latest Fiscal Year | 232 | 61 | |
Three Years Before Latest Fiscal Year | 357 | ||
Four Years Before Latest Fiscal Year | 41 | ||
Prior | 63 | ||
Total | 2,143 | 61 | |
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 | 320 | ||
Three Years Before Latest Fiscal Year | 320 | 242 | |
Four Years Before Latest Fiscal Year | 241 | 15 | |
Prior | 586 | 642 | |
Total | 1,147 | 1,219 | |
Substandard [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Two Years Before Latest Fiscal Year | 141 | ||
Three Years Before Latest Fiscal Year | 456 | ||
Four Years Before Latest Fiscal Year | 1,853 | 834 | |
Prior | 2,492 | 589 | |
Total | 4,801 | 1,564 | |
Substandard [Member] | SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Fiscal Year Before Latest Fiscal Year | 2,676 | ||
Two Years Before Latest Fiscal Year | 2,675 | ||
Prior | 710 | 710 | |
Total | 3,385 | 3,386 | |
Substandard [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current Fiscal Year | 2,854 | ||
Fiscal Year Before Latest Fiscal Year | 2,180 | 2,324 | |
Two Years Before Latest Fiscal Year | 918 | 1,658 | |
Three Years Before Latest Fiscal Year | 294 | 84 | |
Four Years Before Latest Fiscal Year | 435 | ||
Prior | 307 | ||
Total | 4,134 | 6,920 | |
Substandard [Member] | Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Prior | 4,102 | 692 | |
Revolving loans at amortized cost | 56 | ||
Total | $ 4,102 | $ 748 |
Loans (Changes In Allowance For
Loans (Changes In Allowance For Loan And Lease Losses By Loan Category) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | $ 22,374,000 | $ 17,806,000 | $ 17,806,000 |
Charge-offs | (1,122,000) | (289,000) | (1,461,000) |
Recoveries | 344,000 | 31,000 | 288,000 |
Provision (credit) | 2,198,000 | 1,503,000 | 5,741,000 |
Ending balance | 23,794,000 | 19,051,000 | 22,374,000 |
Ending balance: Individually evaluated for expected credit loss | 1,684,000 | 1,488,000 | 2,067,000 |
Ending balance: Collectively evaluated for expected credit loss | 22,110,000 | 17,563,000 | 20,307,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 5,354,347,000 | 4,164,298,000 | 5,486,853,000 |
Ending balance: Individually evaluated for expected credit loss | 13,262,000 | 8,136,000 | 14,272,000 |
Ending balance: Collectively evaluated for expected credit loss | 5,341,085,000 | 4,156,162,000 | 5,472,581,000 |
SBL Non-Real Estate [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 5,028,000 | 5,415,000 | 5,415,000 |
Charge-offs | (214,000) | (98,000) | (885,000) |
Recoveries | 202,000 | 12,000 | 140,000 |
Provision (credit) | 290,000 | 323,000 | 358,000 |
Ending balance | 5,306,000 | 5,652,000 | 5,028,000 |
Ending balance: Individually evaluated for expected credit loss | 458,000 | 1,338,000 | 525,000 |
Ending balance: Collectively evaluated for expected credit loss | 4,848,000 | 4,314,000 | 4,503,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 114,334,000 | 122,387,000 | 108,954,000 |
Ending balance: Individually evaluated for expected credit loss | 1,160,000 | 2,346,000 | 1,374,000 |
Ending balance: Collectively evaluated for expected credit loss | 113,174,000 | 120,041,000 | 107,580,000 |
SBL Commercial Mortgage [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 2,585,000 | 2,952,000 | 2,952,000 |
Recoveries | 75,000 | ||
Provision (credit) | (179,000) | 176,000 | (367,000) |
Ending balance | 2,481,000 | 3,128,000 | 2,585,000 |
Ending balance: Individually evaluated for expected credit loss | 481,000 | 116,000 | 441,000 |
Ending balance: Collectively evaluated for expected credit loss | 2,000,000 | 3,012,000 | 2,144,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 492,798,000 | 385,559,000 | 474,496,000 |
Ending balance: Individually evaluated for expected credit loss | 2,948,000 | 589,000 | 1,423,000 |
Ending balance: Collectively evaluated for expected credit loss | 489,850,000 | 384,970,000 | 473,073,000 |
SBL Construction [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 565,000 | 432,000 | 432,000 |
Provision (credit) | (75,000) | 63,000 | 133,000 |
Ending balance | 490,000 | 495,000 | 565,000 |
Ending balance: Individually evaluated for expected credit loss | 44,000 | 34,000 | 153,000 |
Ending balance: Collectively evaluated for expected credit loss | 446,000 | 461,000 | 412,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 33,116,000 | 31,432,000 | 30,864,000 |
Ending balance: Individually evaluated for expected credit loss | 3,385,000 | 710,000 | 3,386,000 |
Ending balance: Collectively evaluated for expected credit loss | 29,731,000 | 30,722,000 | 27,478,000 |
Direct Lease Financing [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 7,972,000 | 5,817,000 | 5,817,000 |
Charge-offs | (905,000) | (191,000) | (576,000) |
Recoveries | 67,000 | 19,000 | 124,000 |
Provision (credit) | 2,054,000 | 319,000 | 2,607,000 |
Ending balance | 9,188,000 | 5,964,000 | 7,972,000 |
Ending balance: Individually evaluated for expected credit loss | 689,000 | 933,000 | |
Ending balance: Collectively evaluated for expected credit loss | 8,499,000 | 5,964,000 | 7,039,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 652,541,000 | 538,616,000 | 632,160,000 |
Ending balance: Individually evaluated for expected credit loss | 1,381,000 | 8,000 | 3,550,000 |
Ending balance: Collectively evaluated for expected credit loss | 651,160,000 | 538,608,000 | 628,610,000 |
SBLOC/IBLOC [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 1,167,000 | 964,000 | 964,000 |
Provision (credit) | (140,000) | 70,000 | 203,000 |
Ending balance | 1,027,000 | 1,034,000 | 1,167,000 |
Ending balance: Collectively evaluated for expected credit loss | 1,027,000 | 1,034,000 | 1,167,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 2,053,450,000 | 2,067,233,000 | 2,332,469,000 |
Ending balance: Collectively evaluated for expected credit loss | 2,053,450,000 | 2,067,233,000 | 2,332,469,000 |
Advisor Financing [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 1,293,000 | 868,000 | 868,000 |
Charge-offs | |||
Recoveries | |||
Provision (credit) | 128,000 | 230,000 | 425,000 |
Ending balance | 1,421,000 | 1,098,000 | 1,293,000 |
Ending balance: Individually evaluated for expected credit loss | |||
Ending balance: Collectively evaluated for expected credit loss | 1,421,000 | 1,098,000 | 1,293,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 189,425,000 | 146,461,000 | 172,468,000 |
Ending balance: Individually evaluated for expected credit loss | |||
Ending balance: Collectively evaluated for expected credit loss | 189,425,000 | 146,461,000 | 172,468,000 |
Real Estate Bridge Loans [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 3,121,000 | 1,181,000 | 1,181,000 |
Provision (credit) | 156,000 | 346,000 | 1,940,000 |
Ending balance | 3,277,000 | 1,527,000 | 3,121,000 |
Ending balance: Collectively evaluated for expected credit loss | 3,277,000 | 1,527,000 | 3,121,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 1,752,322,000 | 803,477,000 | 1,669,031,000 |
Ending balance: Collectively evaluated for expected credit loss | 1,752,322,000 | 803,477,000 | 1,669,031,000 |
Other Loans [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 643,000 | 177,000 | 177,000 |
Charge-offs | (3,000) | ||
Recoveries | 24,000 | ||
Provision (credit) | (36,000) | (24,000) | 442,000 |
Ending balance | 604,000 | 153,000 | 643,000 |
Ending balance: Individually evaluated for expected credit loss | 12,000 | 15,000 | |
Ending balance: Collectively evaluated for expected credit loss | 592,000 | 153,000 | 628,000 |
Loans [Abstract] | |||
Loans: Ending Balance | 60,210,000 | 61,096,000 | 61,679,000 |
Ending balance: Individually evaluated for expected credit loss | 4,388,000 | 4,483,000 | 4,539,000 |
Ending balance: Collectively evaluated for expected credit loss | 55,822,000 | 56,613,000 | 57,140,000 |
Unallocated [Member] | |||
Loans [Abstract] | |||
Loans: Ending Balance | 6,151,000 | 8,037,000 | 4,732,000 |
Ending balance: Collectively evaluated for expected credit loss | 6,151,000 | 8,037,000 | $ 4,732,000 |
Unfunded Loan Commitment [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Recoveries | 295,000 | ||
Provision (credit) | $ 4,000 | $ 1,400,000 |
Loans (Net Charge-Offs, By Year
Loans (Net Charge-Offs, By Year Of Origination) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Charge-Offs | $ (93) | ||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Net Charge Offs | (93) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Charge-Offs | $ (363) | (308) | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Recoveries | 5 | 1 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Net Charge Offs | (358) | (307) | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (350) | (167) | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Recoveries | 20 | 119 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (330) | (48) | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Charge-Offs | (154) | (25) | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Recoveries | 42 | 6 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Net Charges | (112) | (19) | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Charge-Offs | 38 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Recoveries | 8 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Net Charge | (38) | 8 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Charge-Offs | (217) | (868) | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 277 | 154 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | 60 | (714) | |
Charge-offs | (1,122) | $ (289) | (1,461) |
Recoveries | 344 | 31 | 288 |
Net Charge-Offs | (778) | (1,173) | |
SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (17) | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Recoveries | 2 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (15) | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Recoveries | 8 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Net Charge | 8 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Charge-Offs | (214) | (868) | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 202 | 130 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | (12) | (738) | |
Charge-offs | (214) | (98) | (885) |
Recoveries | 202 | 12 | 140 |
Net Charge-Offs | (12) | (745) | |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 75 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | (75) | ||
Recoveries | 75 | ||
Net Charge-Offs | 75 | ||
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Charge-Offs | (93) | ||
Financing Receivable, Year One, Originated, Current Fiscal Year, Current Period Net Charge Offs | (93) | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Charge-Offs | (363) | (308) | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Recoveries | 5 | 1 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Net Charge Offs | (358) | (307) | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Charge-Offs | (350) | (150) | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Recoveries | 20 | 117 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Net Charge-Offs | (330) | (33) | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Charge-Offs | (154) | (25) | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Recoveries | 42 | 6 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Net Charges | (112) | (19) | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Charge-Offs | 38 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Net Charge | 38 | ||
Charge-offs | (905) | (191) | (576) |
Recoveries | 67 | $ 19 | 124 |
Net Charge-Offs | (838) | (452) | |
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Charge-offs | |||
Recoveries | |||
Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Charge-Offs | 3 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Recoveries | 24 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Net Charge-Offs | 3 | 24 | |
Charge-offs | (3) | ||
Recoveries | 24 | ||
Net Charge-Offs | $ (3) | $ 24 |
Loans (Delinquent Loans By Loan
Loans (Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | $ 12,938 | $ 10,356 | |
Loans Receivable, Gross | 5,348,196 | 5,482,121 | |
Total loans, including unamortized loan fees and costs | 5,354,347 | 5,486,853 | $ 4,164,298 |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 29,664 | 22,312 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 7,008 | 3,034 | |
90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 873 | 7,775 | |
Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 50,483 | 43,477 | |
Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 5,303,864 | 5,443,376 | |
SBL Non-Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 1,072 | 1,249 | |
Loans Receivable, Gross | 105,337 | 99,009 | |
Total loans, including unamortized loan fees and costs | 114,334 | 108,954 | 122,387 |
SBL Non-Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 513 | 1,312 | |
SBL Non-Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 601 | 543 | |
SBL Non-Real Estate [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 395 | 346 | |
SBL Non-Real Estate [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 2,581 | 3,450 | |
SBL Non-Real Estate [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 111,753 | 105,504 | |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 2,948 | 1,423 | |
Loans Receivable, Gross | 487,731 | 468,996 | |
Total loans, including unamortized loan fees and costs | 492,798 | 474,496 | 385,559 |
SBL Commercial Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 1,853 | ||
SBL Commercial Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 3 | 5 | |
SBL Commercial Mortgage [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 355 | 297 | |
SBL Commercial Mortgage [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 3,306 | 3,578 | |
SBL Commercial Mortgage [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 489,492 | 470,918 | |
SBL Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 3,385 | 3,386 | |
Loans Receivable, Gross | 33,116 | 30,865 | |
Total loans, including unamortized loan fees and costs | 33,116 | 30,864 | 31,432 |
SBL Construction [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 3,385 | 3,386 | |
SBL Construction [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 29,731 | 27,478 | |
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 1,381 | 3,550 | |
Loans Receivable, Gross | 652,541 | 632,160 | |
Total loans, including unamortized loan fees and costs | 652,541 | 632,160 | 538,616 |
Direct Lease Financing [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 3,312 | 4,035 | |
Direct Lease Financing [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 854 | 2,053 | |
Direct Lease Financing [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 94 | 539 | |
Direct Lease Financing [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 5,641 | 10,177 | |
Direct Lease Financing [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 646,900 | 621,983 | |
SBLOC/IBLOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans, including unamortized loan fees and costs | 2,053,450 | 2,332,469 | 2,067,233 |
SBLOC/IBLOC [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 25,599 | 14,782 | |
SBLOC/IBLOC [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 5,509 | 343 | |
SBLOC/IBLOC [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 2,869 | ||
SBLOC/IBLOC [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 31,108 | 17,994 | |
SBLOC/IBLOC [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 2,022,342 | 2,314,475 | |
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 189,425 | 172,468 | |
Total loans, including unamortized loan fees and costs | 189,425 | 172,468 | 146,461 |
Advisor Financing [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 189,425 | 172,468 | |
Real Estate Bridge Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 1,752,322 | 1,669,031 | |
Total loans, including unamortized loan fees and costs | 1,752,322 | 1,669,031 | $ 803,477 |
Real Estate Bridge Loans [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 1,752,322 | 1,669,031 | |
Other Loans II [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 4,152 | 748 | |
Total loans, including unamortized loan fees and costs | 60,210 | 61,679 | |
Other Loans II [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 240 | 330 | |
Other Loans II [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 41 | 90 | |
Other Loans II [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 29 | 3,724 | |
Other Loans II [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 4,462 | 4,892 | |
Other Loans II [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | 55,748 | 56,787 | |
Unamortized Loan Fees And Costs [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans, including unamortized loan fees and costs | 6,151 | 4,732 | |
Unamortized Loan Fees And Costs [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Receivable, Gross | $ 6,151 | $ 4,732 |
Loans (Scheduled Undiscounted C
Loans (Scheduled Undiscounted Cash Flows Of Direct Financing Leases) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Recent Accounting Pronouncements [Abstract] | |
Remaining 2023 | $ 149,735 |
2024 | 148,560 |
2025 | 131,877 |
2026 | 68,981 |
2027 | 33,114 |
2028 and thereafter | 6,040 |
Total undiscounted cash flows | 538,307 |
Residual value | 189,636 |
Difference between undiscounted cash flows and discounted cash flows | (75,402) |
Present value of lease payments recorded as lease receivables | 652,541 |
Direct residual value not guaranteed | $ 31,855 |
Transactions With Affiliates (D
Transactions With Affiliates (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Deposits | $ 6,704,657,000 | $ 7,030,113,000 | |
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 | 4,500,000 | $ 5,500,000 | |
Duane Morris LLP [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for legal services | $ 2,700 | $ 356,000 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) loan | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value, transfers between three levels | $ 0 | $ 0 | |
Cash and cash equivalents | 787,200,000 | $ 888,200,000 | |
Collateral dependent loans | 13,300,000 | ||
Specific reserves and other write downs on impaired loans | $ 1,684,000 | $ 2,067,000 | |
Number of troubled debt restructured loans | loan | 10 | 11 | |
Troubled debt restructured loans balance | $ 5,232,000 | $ 5,275,000 | |
Troubled debt restructured loans, specific reserve | $ 587,000 | 637,000 | |
Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated selling costs | 7% | ||
Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated selling costs | 10% | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateral dependent loans | $ 11,578,000 | $ 12,205,000 | |
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% |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Carrying Amount And Estimated Fair Value Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | $ 787,429 | $ 766,016 |
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 | 767,306 | 745,993 |
Interest rate swaps, asset | 329 | 408 |
Demand and interest checking | 6,607,767 | 6,559,617 |
Savings and money market | 96,890 | 140,496 |
Senior debt | 95,084 | 93,871 |
Time deposits | 330,000 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 20,123 | 20,023 |
FHLB, ACBB, and Federal Reserve Bank stock | 12,629 | 12,629 |
Commercial loans, at fair value | 493,334 | 589,143 |
Loans, net of deferred loan fees and costs | 5,336,504 | 5,462,948 |
Subordinated debentures | 10,579 | 10,067 |
Carrying Amount [Member] | ||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | ||
Investment securities available-for-sale | 787,429 | 766,016 |
FHLB, ACBB, and Federal Reserve Bank stock | 12,629 | 12,629 |
Commercial loans, at fair value | 493,334 | 589,143 |
Loans, net of deferred loan fees and costs | 5,354,347 | 5,486,853 |
Interest rate swaps, asset | 329 | 408 |
Demand and interest checking | 6,607,767 | 6,559,617 |
Savings and money market | 96,890 | 140,496 |
Senior debt | 99,142 | 99,050 |
Time deposits | 330,000 | |
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 | 787,429 | 766,016 |
FHLB, ACBB, and Federal Reserve Bank stock | 12,629 | 12,629 |
Commercial loans, at fair value | 493,334 | 589,143 |
Loans, net of deferred loan fees and costs | 5,336,504 | 5,462,948 |
Interest rate swaps, asset | 329 | 408 |
Demand and interest checking | 6,607,767 | 6,559,617 |
Savings and money market | 96,890 | 140,496 |
Senior debt | 95,084 | 93,871 |
Time deposits | 330,000 | |
Subordinated debentures | 10,579 | 10,067 |
Securities sold under agreements to repurchase | $ 42 | $ 42 |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Assets Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets measured at fair value on a recurring basis [Abstract] | |||
Total investment securities, available-for-sale | $ 787,429 | $ 766,016 | |
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | 13,300 | ||
Other real estate owned | 21,117 | 21,210 | $ 18,873 |
Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
U.S. Government agency securities | 36,729 | 28,381 | |
Asset-backed securities | 333,058 | 334,009 | |
Obligations of states and political subdivisions | 49,397 | 47,510 | |
Residential mortgage-backed securities | 164,693 | 139,820 | |
Collateralized mortgage obligation securities | 40,240 | 41,783 | |
Commercial mortgage-backed securities | 155,512 | 166,813 | |
Corporate debt securities | 7,800 | 7,700 | |
Total investment securities, available-for-sale | 787,429 | 766,016 | |
Commercial loans, at fair value | 493,334 | 589,143 | |
Interest rate swaps, asset | 329 | 408 | |
Total assets | 1,281,092 | 1,355,567 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | 11,578 | 12,205 | |
Other real estate owned | 21,117 | 21,210 | |
Intangible assets | 1,950 | 2,049 | |
Assets nonrecurring | 34,645 | 35,464 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Total investment securities, available-for-sale | 767,306 | 745,993 | |
Interest rate swaps, asset | 329 | 408 | |
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 | 36,729 | 28,381 | |
Asset-backed securities | 333,058 | 334,009 | |
Obligations of states and political subdivisions | 49,397 | 47,510 | |
Residential mortgage-backed securities | 164,693 | 139,820 | |
Collateralized mortgage obligation securities | 40,240 | 41,783 | |
Commercial mortgage-backed securities | 143,189 | 154,490 | |
Total investment securities, available-for-sale | 767,306 | 745,993 | |
Interest rate swaps, asset | 329 | 408 | |
Total assets | 767,635 | 746,401 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Total investment securities, available-for-sale | 20,123 | 20,023 | |
Commercial loans, at fair value | 493,334 | 589,143 | |
Assets measured on a nonrecurring basis [Abstract] | |||
Other real estate owned | 21,117 | 21,210 | |
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 | 12,323 | 12,323 | |
Corporate debt securities | 7,800 | 7,700 | |
Total investment securities, available-for-sale | 20,123 | 20,023 | |
Commercial loans, at fair value | 493,334 | 589,143 | |
Total assets | 513,457 | 609,166 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | 11,578 | 12,205 | |
Other real estate owned | 21,117 | 21,210 | |
Intangible assets | 1,950 | 2,049 | |
Assets nonrecurring | $ 34,645 | $ 35,464 | |
Minimum [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 7% | ||
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 7% | ||
Maximum [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 10% | ||
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 10% |
Fair Value Of Financial Instr_6
Fair Value Of Financial Instruments (Changes In Company's Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Investment In Unconsolidated Entity [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | $ 3,268 | |
Purchases, issuances, sales, settlements and charge-offs | ||
Settlements | (3,268) | |
Available-For-Sale Securities [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | $ 20,023 | 19,031 |
Total net (losses) or gains (realized/unrealized) Included in other comprehensive loss | 100 | 992 |
Purchases, issuances, sales, settlements and charge-offs | ||
Ending balance | 20,123 | 20,023 |
Commercial Loans At Fair Value [Member] | ||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | 589,143 | 1,388,416 |
Transfers to OREO | (737) | (61,580) |
Total net (losses) or gains (realized/unrealized) Included in earnings | 1,804 | 12,570 |
Purchases, issuances, sales, settlements and charge-offs | ||
Issuances | 35,962 | 66,067 |
Settlements | (132,838) | (816,330) |
Ending balance | 493,334 | 589,143 |
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 | $ (603) | $ (3,492) |
Fair Value Of Financial Instr_7
Fair Value Of Financial Instruments (Schedule Of Other Real Estate Owned) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Of Financial Instruments [Abstract] | ||
Beginning balance | $ 21,210 | $ 18,873 |
Transfers from commercial loans, at fair value | 737 | 0 |
Writedowns | (830) | 0 |
Sales | 0 | (2,343) |
Transfers from commercial loans, at fair value | 0 | 4,680 |
Ending balance | $ 21,117 | $ 21,210 |
Fair Value Of Financial Instr_8
Fair Value Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities available-for-sale | $ | $ 787,429 | $ 766,016 | |
Other real estate owned | $ | 21,117 | 21,210 | $ 18,873 |
Notes Receivable Gross | $ | $ 5,348,196 | $ 5,482,121 | |
London Interbank Offered Rate (LIBOR) [Member] | Subordinated Debentures [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Measurement Input, Discount Rate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debentures, measurement input | 0.1100 | 0.1150 | |
Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Constant prepayment rates | 3% | ||
Estimated Selling Costs | 7% | ||
Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Constant prepayment rates | 30% | ||
Estimated Selling Costs | 10% | ||
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debentures, measurement input | 0.1100 | 0.1150 | |
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 | 0.1300 | 0.1271 | |
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 | 0.1300 | 0.1271 | |
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 | 0.1100 | 0.1150 | |
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 | 0.1100 | 0.1150 | |
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 | 0.0591 | 0.0557 | |
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 | 0.0664 | 0.0625 | |
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 | 0.0657 | 6.17 | |
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 | 0.0800 | 0.0836 | |
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 | 0.1190 | 0.1165 | |
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 | 0.0875 | 0.1031 | |
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 | 0.0768 | 0.0707 | |
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 | 0.1730 | 0.1720 | |
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 | 0.0930 | 0.0790 | |
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 | 0.0540 | 0.0565 | |
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 | 0.1300 | 0.1100 | |
Loans, Net Of Deferred Loan Fees And Costs [Member] | 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 | 0.0752 | 0.0686 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities available-for-sale | $ | $ 20,123 | $ 20,023 | |
Federal Home Loan Bank And Atlantic Central Bankers Bank stock | $ | 12,629 | 12,629 | |
Loans, net of deferred loan fees and costs | $ | 5,336,504 | 5,462,948 | |
Commercial loans held for sale | $ | 493,334 | 589,143 | |
Subordinated debentures | $ | 10,579 | 10,067 | |
Other real estate owned | $ | 21,117 | 21,210 | |
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 | $ | 12,323 | 12,323 | |
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 | $ | 7,800 | 7,700 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - SBA [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial loans held for sale | $ | 140,909 | 146,717 | |
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 | $ | 125,899 | 28,695 | |
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 | $ | $ 226,526 | $ 413,731 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) item | |
Derivative [Line Items] | |
Notional Amount | $ 6,800,000 |
Number of interest rate swap agreements | item | 1 |
Receivable under agreements | $ 329,000 |
Cash collateral | 527,000 |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Fair value adjustment on derivatives, gain | $ 79,000 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivatives) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 6,800 |
Fair Value | $ 329 |
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) | 5.02% |
Fair Value | $ 329 |
Other Identifiable Intangible_3
Other Identifiable Intangible Assets (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2020 | May 31, 2016 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | $ 2,541,000 | $ 2,442,000 | |||
Amortization of intangible assets | 99,000 | $ 99,000 | |||
Goodwill | 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 | 1,000,000 | ||||
Gross intangible assets | $ 3,400,000 | ||||
Accumulated amortization | 2,541,000 | 2,442,000 | |||
Amortization of intangible assets | 340,000 | ||||
Gross Carrying Amount | 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 | |||
Accumulated amortization | $ 2,400,000 | 2,300,000 | |||
Customer List Intangibles [Member] | McMahon Leasing [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 12 years | ||||
Accumulated amortization | $ 187,000 | $ 172,000 | |||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 57,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 57,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 57,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 57,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 57,000 | ||||
Finite-Lived Intangible Assets, Net | $ 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 263 | $ 263 |
Total | 4,491 | 4,491 |
Accumulated Amortization | 2,541 | 2,442 |
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 | $ 2,541 | $ 2,442 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Notional Amount | $ 6,800 |
Accounting Standards Update 2020-04 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Securities Purchased From Previous Securitizations | 12,300 |
Collateralized Loan Obligations And U.S. Government Agency Adjustable-Rate Mortgages Which Utilize LIBOR | 325,600 |
U.S. Government Agencies With Adjustable Interest Rate Indices | 65,400 |
Subordinated Debt | 13,400 |
Notional Amount | 6,800 |
Floating Rate Junior Subordinated Deferrable Interest Debenture | 10,000 |
Floating Rate Junior Subordinated Deferrable Interest Debenture, Market Value | 7,800 |
Accounting Standards Update 2020-04 [Member] | Certain Financial Instruments Indexed To LIBOR [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Loans Receivable, Fair Value Disclosure | 159,600 |
Accounting Standards Update 2020-04 [Member] | Student Loan [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Loans Receivable, Fair Value Disclosure | $ 7,600 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||
May 03, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Oct. 26, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Amount per quarter planned for stock repurchase | $ 25 | $ 100 | ||||||||
Cost of repurchased share | $ 15 | $ 15 | $ 15 | $ 15 | ||||||
Share repurchased during period, shares | 778,442 | |||||||||
Average cost of repurchased stock (in dollars per share) | $ 32.12 | |||||||||
Stock Repurchase Program, Authorized Amount | $ 25 | $ 100 | ||||||||
Subsequent Event [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Cost of repurchased share | $ 10.2 | |||||||||
Average cost of repurchased stock (in dollars per share) | $ 27.87 | |||||||||
Forecast [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Amount per quarter planned for stock repurchase | $ 25 | $ 25 | $ 25 | |||||||
Stock Repurchase Program, Authorized Amount | $ 25 | $ 25 | $ 25 |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of Regulatory Capital Amounts) (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 0.0988 | 0.0963 |
Tier 1 capital to risk-weighted assets ratio | 0.1434 | 0.1340 |
Total capital to risk-weighted assets ratio | 0.1484 | 0.1387 |
Common equity tier 1 to risk weighted assets | 0.1434 | 0.1340 |
The Bancorp Bank, National Association [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets ratio | 0.1100 | 0.1073 |
Tier 1 capital to risk-weighted assets ratio | 0.1594 | 0.1495 |
Total capital to risk-weighted assets ratio | 0.1644 | 0.1542 |
Common equity tier 1 to risk weighted assets | 0.1594 | 0.1495 |
Legal (Narrative) (Details)
Legal (Narrative) (Details) - USD ($) | Sep. 14, 2021 | Jan. 12, 2021 |
Maximum [Member] | ||
Loss Contingency, Damages Sought, Value | $ 300,000 | |
Minimum [Member] | ||
Loss Contingency, Damages Sought, Value | 2,000,000 | |
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) | 3 Months Ended |
Mar. 31, 2023 item | |
Segment Financials [Abstract] | |
Number of segments | 3 |
Segment Financials (Schedule Of
Segment Financials (Schedule Of Segment Financials) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 122,176 | $ 55,854 | |
Interest expense | 36,360 | 3,001 | |
Net interest income | 85,816 | 52,853 | |
Provision for credit losses | 1,903 | 1,507 | |
Non-interest income | 28,989 | 25,112 | |
Non-interest expense | 48,030 | 38,352 | |
Income before income tax | 64,872 | 38,106 | |
Income tax expense | 15,750 | 9,140 | |
Net income | 49,122 | 28,966 | |
Total assets | 7,606,959 | $ 7,903,000 | |
Total liabilities | 6,881,811 | 7,208,969 | |
Specialty Finance [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 105,392 | 49,939 | |
Interest allocation | (32,935) | (3,528) | |
Interest expense | 1,486 | 261 | |
Net interest income | 70,971 | 46,150 | |
Provision for credit losses | 1,903 | 1,507 | |
Non-interest income | 3,417 | 4,260 | |
Non-interest expense | 21,479 | 17,496 | |
Income before income tax | 51,006 | 31,407 | |
Net income | 51,006 | 31,407 | |
Total assets | 5,820,871 | 6,042,765 | |
Total liabilities | 281,523 | 321,335 | |
Payments [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 18 | ||
Interest allocation | 34,851 | 3,987 | |
Interest expense | 30,504 | 1,124 | |
Net interest income | 4,365 | 2,863 | |
Non-interest income | 25,528 | 20,673 | |
Non-interest expense | 19,217 | 17,160 | |
Income before income tax | 10,676 | 6,376 | |
Net income | 10,676 | 6,376 | |
Total assets | 48,598 | 57,894 | |
Total liabilities | 6,158,133 | 6,101,539 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 16,766 | 5,915 | |
Interest allocation | (1,916) | (459) | |
Interest expense | 4,370 | 1,616 | |
Net interest income | 10,480 | 3,840 | |
Non-interest income | 44 | 179 | |
Non-interest expense | 7,334 | 3,696 | |
Income before income tax | 3,190 | 323 | |
Income tax expense | 15,750 | 9,140 | |
Net income | (12,560) | $ (8,817) | |
Total assets | 1,737,490 | 1,802,341 | |
Total liabilities | $ 442,155 | $ 786,095 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
May 03, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | ||||||
Cost of repurchased share | $ 15 | $ 15 | $ 15 | $ 15 | ||
Average cost of repurchased stock (in dollars per share) | $ 32.12 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase of shares | 364,393 | |||||
Cost of repurchased share | $ 10.2 | |||||
Average cost of repurchased stock (in dollars per share) | $ 27.87 |