Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Entity Information [Line Items] | ||
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0001312109 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39123 | |
Entity Registrant Name | SILVERGATE CAPITAL CORPORATION | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 33-0227337 | |
Entity Address, Address Line One | 4250 Executive Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | La Jolla | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92037 | |
City Area Code | 858 | |
Local Phone Number | 362-6300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (shares) | 26,520,621 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | SI | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | SIPrA | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 52,859 | $ 16,405 |
Interest earning deposits in other banks | 4,415,458 | 2,945,682 |
Cash and cash equivalents | 4,468,317 | 2,962,087 |
Trading securities, at fair value | 26,998 | 0 |
Securities available-for-sale, at fair value | 6,176,778 | 939,015 |
Loans held-for-sale, at lower of cost or fair value | 748,577 | 865,961 |
Loans held-for-investment, net of allowance for loan losses of $6,916 at June 30, 2021 and December 31, 2020 | 740,155 | 746,751 |
Federal home loan and federal reserve bank stock, at cost | 29,460 | 14,851 |
Accrued interest receivable | 24,505 | 8,698 |
Premises and equipment, net | 1,604 | 2,072 |
Derivative assets | 39,454 | 31,104 |
Other assets | 33,628 | 15,696 |
Total assets | 12,289,476 | 5,586,235 |
Deposits: | ||
Noninterest bearing demand accounts | 11,290,638 | 5,133,579 |
Interest bearing accounts | 80,918 | 114,447 |
Total deposits | 11,371,556 | 5,248,026 |
Subordinated debentures, net | 15,838 | 15,831 |
Accrued expenses and other liabilities | 31,575 | 28,079 |
Total liabilities | 11,418,969 | 5,291,936 |
Commitments and contingencies | ||
Preferred stock, $0.01 par value—authorized 10,000 shares; no shares issued or outstanding at June 30, 2021 and December 31, 2020 | 0 | 0 |
Additional paid-in capital | 697,070 | 129,726 |
Retained earnings | 151,993 | 118,348 |
Accumulated other comprehensive income | 21,179 | 46,036 |
Total shareholders’ equity | 870,507 | 294,299 |
Total liabilities and shareholders’ equity | 12,289,476 | 5,586,235 |
Class A common stock, $0.01 par value—authorized 125,000 shares; 26,508 and 18,770 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | ||
Deposits: | ||
Common stock | 265 | 188 |
Class B non-voting common stock, $0.01 par value—authorized 25,000 shares; 0 and 64 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | ||
Deposits: | ||
Common stock | $ 0 | $ 1 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses | $ 6,916 | $ 6,916 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Class A common stock, $0.01 par value—authorized 125,000 shares; 26,508 and 18,770 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 125,000,000 | 125,000,000 |
Common stock issued (shares) | 26,508,000 | 18,770,000 |
Common stock outstanding (shares) | 26,508,000 | 18,770,000 |
Class B non-voting common stock, $0.01 par value—authorized 25,000 shares; 0 and 64 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 25,000,000 | 25,000,000 |
Common stock issued (shares) | 0 | 64,000 |
Common stock outstanding (shares) | 0 | 64,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income | ||||
Loans, including fees | $ 17,158 | $ 11,710 | $ 33,755 | $ 24,831 |
Taxable securities | 8,324 | 4,123 | 11,916 | 10,171 |
Tax-exempt securities | 3,123 | 1,577 | 4,818 | 1,625 |
Other interest earning assets | 1,599 | 405 | 2,878 | 1,129 |
Dividends and other | 466 | 200 | 609 | 321 |
Total interest income | 30,670 | 18,015 | 53,976 | 38,077 |
Interest expense | ||||
Deposits | 35 | 1,652 | 81 | 5,703 |
Federal home loan bank advances | 0 | 44 | 0 | 271 |
Subordinated debentures and other | 252 | 267 | 497 | 573 |
Total interest expense | 287 | 1,963 | 578 | 6,547 |
Net interest income before provision for loan losses | 30,383 | 16,052 | 53,398 | 31,530 |
Provision for loan losses | 0 | 222 | 0 | 589 |
Net interest income after provision for loan losses | 30,383 | 15,830 | 53,398 | 30,941 |
Noninterest income | ||||
Mortgage warehouse fee income | 753 | 450 | 1,707 | 832 |
Service fees related to off-balance sheet deposits | 0 | 7 | 0 | 77 |
Deposit related fees | 11,308 | 2,438 | 18,432 | 4,204 |
Gain on sale of securities, net | 0 | 2,556 | 0 | 3,753 |
(Loss) gain on sale of loans, net | 0 | (56) | 0 | 450 |
Gain on extinguishment of debt | 0 | 0 | 0 | 925 |
Other income | 8 | 39 | 20 | 124 |
Total noninterest income | 12,069 | 5,434 | 20,159 | 10,365 |
Noninterest expense | ||||
Salaries and employee benefits | 10,260 | 9,002 | 21,250 | 17,957 |
Occupancy and equipment | 599 | 894 | 1,213 | 1,801 |
Communications and data processing | 1,796 | 1,313 | 3,417 | 2,574 |
Professional services | 2,594 | 1,105 | 4,311 | 2,090 |
Federal deposit insurance | 3,844 | 182 | 6,140 | 305 |
Correspondent bank charges | 812 | 347 | 1,309 | 720 |
Other loan expense | 280 | 99 | 454 | 221 |
Other general and administrative | 1,334 | 1,030 | 3,031 | 2,179 |
Total noninterest expense | 21,519 | 13,972 | 41,125 | 27,847 |
Income before income taxes | 20,933 | 7,292 | 32,432 | 13,459 |
Income tax (benefit) expense | (2) | 1,826 | (1,213) | 3,600 |
Net income | $ 20,935 | $ 5,466 | $ 33,645 | $ 9,859 |
Earnings per share: | ||||
Basic earnings per share (USD per share) | $ 0.81 | $ 0.29 | $ 1.40 | $ 0.53 |
Diluted earnings per share (USD per share) | $ 0.80 | $ 0.29 | $ 1.37 | $ 0.52 |
Weighted average shares outstanding: | ||||
Basic (shares) | 25,707 | 18,672 | 24,114 | 18,670 |
Diluted (shares) | 26,102 | 19,106 | 24,565 | 19,112 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,935 | $ 5,466 | $ 33,645 | $ 9,859 |
Other comprehensive income (loss): | ||||
Change in net unrealized (loss) gain on available-for-sale securities | (4,438) | 25,190 | (17,872) | 15,877 |
Less: Reclassification adjustment for net gain included in net income | 0 | (2,556) | 0 | (3,753) |
Income tax effect | 1,251 | (6,475) | 4,941 | (3,468) |
Unrealized (loss) gain on available-for-sale securities, net of tax | (3,187) | 16,159 | (12,931) | 8,656 |
Change in net unrealized (loss) gain on derivative assets | (8,074) | 2,731 | (15,534) | 26,197 |
Less: Reclassification adjustment for net gain included in net income | (510) | (510) | (1,014) | (681) |
Income tax effect | 2,433 | (636) | 4,622 | (7,303) |
Unrealized (loss) gain on derivative instruments, net of tax | (6,151) | 1,585 | (11,926) | 18,213 |
Other comprehensive (loss) income | (9,338) | 17,744 | (24,857) | 26,869 |
Total comprehensive income | $ 11,597 | $ 23,210 | $ 8,788 | $ 36,728 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (shares) at Dec. 31, 2019 | 17,775,160 | 892,836 | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 231,036 | $ 178 | $ 9 | $ 132,138 | $ 92,310 | $ 6,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | 13,518 | 4,393 | 9,125 | |||||
Conversion of Class B common stock to Class A common stock (shares) | 596,000 | (596,000) | ||||||
Conversion of Class B common stock to Class A common stock | 0 | $ 6 | $ (6) | |||||
Stock-based compensation | 199 | 199 | ||||||
Exercise of stock options, net of shares withheld for employee taxes (shares) | 134 | |||||||
Exercise of stock options, net of shares withheld for employee taxes | (1) | (1) | ||||||
Balance at end of period (shares) at Mar. 31, 2020 | 18,371,294 | 296,836 | ||||||
Balance at end of period at Mar. 31, 2020 | 244,752 | $ 184 | $ 3 | 132,336 | 96,703 | 15,526 | ||
Balance at beginning of period (shares) at Dec. 31, 2019 | 17,775,160 | 892,836 | ||||||
Balance at beginning of period at Dec. 31, 2019 | 231,036 | $ 178 | $ 9 | 132,138 | 92,310 | 6,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | 36,728 | |||||||
Balance at end of period (shares) at Jun. 30, 2020 | 18,378,863 | 296,836 | ||||||
Balance at end of period at Jun. 30, 2020 | 268,105 | $ 184 | $ 3 | 132,479 | 102,169 | 33,270 | ||
Balance at beginning of period (shares) at Mar. 31, 2020 | 18,371,294 | 296,836 | ||||||
Balance at beginning of period at Mar. 31, 2020 | 244,752 | $ 184 | $ 3 | 132,336 | 96,703 | 15,526 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | 23,210 | 5,466 | 17,744 | |||||
Stock-based compensation | 201 | 201 | ||||||
Exercise of stock options, net of shares withheld for employee taxes (shares) | 7,569 | |||||||
Exercise of stock options, net of shares withheld for employee taxes | (58) | (58) | ||||||
Balance at end of period (shares) at Jun. 30, 2020 | 18,378,863 | 296,836 | ||||||
Balance at end of period at Jun. 30, 2020 | 268,105 | $ 184 | $ 3 | 132,479 | 102,169 | 33,270 | ||
Balance at beginning of period (shares) at Dec. 31, 2020 | 18,770,000 | 64,000 | 18,769,771 | 64,197 | ||||
Balance at beginning of period at Dec. 31, 2020 | 294,299 | $ 188 | $ 1 | 129,726 | 118,348 | 46,036 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | (2,809) | 12,710 | (15,519) | |||||
Net proceeds from stock issuance (shares) | 5,860,858 | |||||||
Net proceeds from stock issuance | 423,540 | $ 58 | 423,482 | |||||
Conversion of Class B common stock to Class A common stock (shares) | 64,197 | (64,197) | ||||||
Conversion of Class B common stock to Class A common stock | 0 | $ 1 | $ (1) | |||||
Stock-based compensation | 290 | 290 | ||||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (shares) | 125,142 | |||||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | (1,699) | $ 1 | (1,700) | |||||
Balance at end of period (shares) at Mar. 31, 2021 | 24,819,968 | 0 | ||||||
Balance at end of period at Mar. 31, 2021 | 713,621 | $ 248 | $ 0 | 551,798 | 131,058 | 30,517 | ||
Balance at beginning of period (shares) at Dec. 31, 2020 | 18,770,000 | 64,000 | 18,769,771 | 64,197 | ||||
Balance at beginning of period at Dec. 31, 2020 | 294,299 | $ 188 | $ 1 | 129,726 | 118,348 | 46,036 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | $ 8,788 | |||||||
Exercise of stock options, net of shares withheld for employee taxes (shares) | 335,956 | |||||||
Balance at end of period (shares) at Jun. 30, 2021 | 26,508,000 | 0 | 26,507,655 | 0 | ||||
Balance at end of period at Jun. 30, 2021 | $ 870,507 | $ 265 | $ 0 | 697,070 | 151,993 | 21,179 | ||
Balance at beginning of period (shares) at Mar. 31, 2021 | 24,819,968 | 0 | ||||||
Balance at beginning of period at Mar. 31, 2021 | 713,621 | $ 248 | $ 0 | 551,798 | 131,058 | 30,517 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss), net of tax | 11,597 | 20,935 | (9,338) | |||||
Net proceeds from stock issuance (shares) | 1,496,461 | |||||||
Net proceeds from stock issuance | 144,005 | $ 15 | 143,990 | |||||
Stock-based compensation | 496 | 496 | ||||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (shares) | 191,226 | |||||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | 788 | $ 2 | 786 | |||||
Balance at end of period (shares) at Jun. 30, 2021 | 26,508,000 | 0 | 26,507,655 | 0 | ||||
Balance at end of period at Jun. 30, 2021 | $ 870,507 | $ 265 | $ 0 | $ 697,070 | $ 151,993 | $ 21,179 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 33,645,000 | $ 9,859,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,277,000 | 1,570,000 |
Amortization of securities premiums and discounts, net | 9,668,000 | 1,969,000 |
Amortization of loan premiums and discounts and deferred loan origination fees and costs, net | 310,000 | 517,000 |
Stock-based compensation | 786,000 | 400,000 |
Provision for loan losses | 0 | 589,000 |
Originations/purchases of loans held-for-sale | (6,424,745,000) | (2,265,109,000) |
Proceeds from sales of loans held-for-sale | 6,542,129,000 | 2,308,940,000 |
Other gains, net | (1,892,000) | (6,383,000) |
Other, net | 882,000 | 734,000 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable and other assets | (45,838,000) | (2,402,000) |
Accrued expenses and other liabilities | 7,179,000 | 384,000 |
Net cash provided by operating activities | 123,401,000 | 51,068,000 |
Cash flows from investing activities | ||
Purchases of securities available-for-sale | (5,363,805,000) | (278,641,000) |
Proceeds from sale of securities available-for-sale | 0 | 216,355,000 |
Proceeds from paydowns and maturities of securities available-for-sale | 87,583,000 | 21,482,000 |
Loan originations/purchases and payments, net | 6,286,000 | (155,778,000) |
Proceeds from sale of loans held-for-sale previously classified as held-for-investment | 0 | 36,400,000 |
Purchase of federal home loan and federal reserve bank stock, net | (14,610,000) | (3,235,000) |
Purchase of premises and equipment | (176,000) | (665,000) |
(Payments for) proceeds from derivative contracts, net | (22,613,000) | 14,260,000 |
Other, net | 0 | 109,000 |
Net cash used in investing activities | (5,307,335,000) | (149,713,000) |
Cash flows from financing activities | ||
Net change in noninterest bearing deposits | 6,157,059,000 | 219,469,000 |
Net change in interest bearing deposits | (33,529,000) | (363,215,000) |
Net change in federal home loan bank advances | 0 | 311,925,000 |
Payments made on notes payable | 0 | (3,714,000) |
Proceeds from common stock issuance, net | 567,545,000 | 0 |
Proceeds from stock option exercise | 1,232,000 | 0 |
Taxes paid related to net share settlement of equity awards | (2,143,000) | (59,000) |
Other, net | 0 | 79,000 |
Net cash provided by financing activities | 6,690,164,000 | 164,485,000 |
Net increase in cash and cash equivalents | 1,506,230,000 | 65,840,000 |
Cash and cash equivalents, beginning of period | 2,962,087,000 | 133,604,000 |
Cash and cash equivalents, end of period | 4,468,317,000 | 199,444,000 |
Supplemental cash flow information: | ||
Cash paid for interest | 593,000 | 6,785,000 |
Income taxes paid, net | 3,347,000 | 3,076,000 |
Supplemental noncash disclosures: | ||
Loans held-for-investment transferred to loans held-for-sale | 0 | 30,792,000 |
Loans held-for-sale transferred to loans held-for-investment | 0 | 5,098,000 |
Loans transferred to other real estate owned | 0 | 51,000 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 77,000 | $ 0 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Nature of Business and Summary of Significant Accounting Policies Nature of Business The accompanying consolidated financial statements include the accounts of Silvergate Capital Corporation, a Maryland corporation and its wholly-owned subsidiary, Silvergate Bank (the “Bank”), collectively referred to as (the “Company” or “Silvergate”). The Company’s assets consist primarily of its investment in the Bank and its primary activities are conducted through the Bank. The Bank was incorporated in 1987 and commenced business in 1988 under the California Financial Code as an industrial bank. In February 2009 the Bank converted its charter to a California commercial bank, which gave it the added authority to accept demand deposits. The Company is a registered bank holding company that is subject to supervision by the Board of Governors of the Federal Reserve (“Federal Reserve”). The Bank is subject to regulation by the California Department of Financial Protection and Innovation, Division of Financial Institutions (“DFPI”), and, as a Federal Reserve member bank since 2012, the Federal Reserve Bank of San Francisco (“FRB”). The Bank’s deposits are insured up to legal limits by the Federal Deposit Insurance Corporation (“FDIC”). On January 26, 2021, the Company completed its underwritten public offering of 4,563,493 shares of Class A common stock at a price of $63.00 per share, including 595,238 shares of Class A common stock upon the exercise in full by the underwriters of their option to purchase additional shares. The aggregate gross proceeds of the offering were $287.5 million and net proceeds to the Company were $272.4 million after deducting underwriting discounts and offering expenses. On March 9, 2021, the Company entered into an equity distribution agreement pursuant to which the Company could issue and sell, from time to time, up to an aggregate gross sales price of $300.0 million of the Company’s shares of Class A common stock through an “at-the-market” equity offering program, or ATM Offering. As of June 30, 2021, the Company had completed the ATM Offering with a total of 2,793,826 shares of Class A common stock sold at an average price of $107.38. The transactions resulted in net proceeds to the Company of $295.1 million after deducting commissions and expenses. Financial Statement Preparation and Presentation The accompanying interim consolidated financial statements have been prepared by the Company, without an audit, in accordance with the instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnotes necessary for a fair presentation of its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the Company’s consolidated financial statements. These consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K dated March 8, 2021. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s financial statements and the accompanying notes. We evaluate estimates on an ongoing basis including the economic impact of Coronavirus Disease 2019 (or “COVID-19”). Actual results could materially differ from those estimates. Recently issued accounting pronouncements not yet effective In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (or “ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (or “CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. These amendments were initially effective for fiscal years beginning after December 15, 2019 for SEC registrants and after December 15, 2020, for Public Business Entities, or PBEs. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which finalized the delay of the effective date for smaller reporting companies, such as the Company to apply the standards related to CECL, until fiscal years beginning after December 15, 2022. For debt securities with other than temporary impairment (OTTI), the guidance will be applied prospectively and for existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets with the scope of CECL, the cumulative effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company formed a CECL implementation committee in 2018 which prepared a project plan to migrate towards the adoption date. As part of the project plan, the Company contracted a third-party vendor to assist in the application and analysis of ASU 2016-13 as well as a third party vendor to perform an independent model validation. As part of this process, the Company has determined preliminary loan pool segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company operationalized an initial CECL model during the second quarter of 2019 and is running this preliminary CECL model alongside the existing incurred loss methodology. The Company intends to continue to refine and run the model until the expected adoption date on January 1, 2023. The Company continues to evaluate the effects of ASU 2016-13 on its financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (or “ASU 2020-04”), which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the London Interbank Offered Rate (or “LIBOR”) or other interbank offered rate (reference rates) on financial reporting. In the fourth quarter of 2020 the Office of the Comptroller of the Currency, amongst others, announced that the overnight and one, three, six and twelve month USD LIBOR will be discontinued on June 30, 2023. It was originally expected that LIBOR would be discontinued by the end of 2021. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. In January 2020, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 to include derivative instruments impacted by discounting transition. The Company has created a subcommittee of the Asset Liability Management Committee to address the LIBOR transition and phase-out issues. The Company has identified its LIBOR-based contracts that will be impacted by the transition away from of LIBOR, and is incorporating fallback language in negotiated contracts and incorporating non-LIBOR reference rate and/or fallback language in new contracts to prepare for these changes. The Company is evaluating the impact that ASU 2020-04 will have on those financial assets where LIBOR is used as an index rate. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Trading The Company engages in trading activities for its own account. Securities that are held principally for resale in the near term are recorded at fair value with changes in fair value included in earnings. Trading securities consists of U.S. Treasury Bills which had a fair value of $27.0 million at June 30, 2021. The carrying values of trading securities included an immaterial amount of net unrealized losses at June 30, 2021. Available-for-sale The fair value of available-for-sale securities and their related gross unrealized gains and losses at the dates indicated are as follows: Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) June 30, 2021 U.S. Treasuries $ 331,154 $ 59 $ (118) $ 331,095 U.S. agency securities - excluding mortgage-backed securities 578,524 4,210 (3,448) 579,286 Residential mortgage-backed securities: Government agency mortgage-backed securities 1,327,557 180 (7,921) 1,319,816 Government agency collateralized mortgage obligation 1,620,012 875 (7,225) 1,613,662 Private-label collateralized mortgage obligation 1,721 23 (22) 1,722 Commercial mortgage-backed securities: Government agency mortgage-backed securities 291,814 430 (1,306) 290,938 Government agency collateralized mortgage obligation 192,930 159 (168) 192,921 Private-label collateralized mortgage obligation 233,145 12,997 (423) 245,719 Municipal bonds: Tax-exempt 979,706 26,097 (2,064) 1,003,739 Taxable 356,291 1,901 (1,703) 356,489 Asset backed securities: Government sponsored student loan pools 241,532 402 (543) 241,391 $ 6,154,386 $ 47,333 $ (24,941) $ 6,176,778 Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) December 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 5,701 $ 18 $ (55) $ 5,664 Government agency collateralized mortgage obligation 197,978 371 (298) 198,051 Private-label collateralized mortgage obligation 20,544 399 (256) 20,687 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 164,214 18,322 — 182,536 Municipal bonds: Tax-exempt 246,159 24,200 — 270,359 Taxable 15,307 695 — 16,002 Asset backed securities: Government sponsored student loan pools 248,848 17 (3,149) 245,716 $ 898,751 $ 44,022 $ (3,758) $ 939,015 There were no investment securities pledged for borrowings or for other purposes as required or permitted by law as of June 30, 2021 and December 31, 2020. Securities with unrealized losses as of the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) June 30, 2021 U.S. Treasuries $ 109,685 $ (118) $ — $ — $ 109,685 $ (118) U.S. agency securities - excluding mortgage-backed securities 150,827 (3,448) — — 150,827 (3,448) Residential mortgage-backed securities: Government agency mortgage-backed securities 1,140,512 (7,921) 72 — 1,140,584 (7,921) Government agency collateralized mortgage obligation 834,135 (6,920) 149,922 (305) 984,057 (7,225) Private-label collateralized mortgage obligation — — 699 (22) 699 (22) Commercial mortgage-backed securities: Government agency mortgage-backed securities 159,881 (1,306) — — 159,881 (1,306) Government agency collateralized mortgage obligation 124,052 (168) — — 124,052 (168) Private-label collateralized mortgage obligation 35,539 (295) 7,839 (128) 43,378 (423) Municipal bonds: Tax-exempt 325,553 (2,064) — — 325,553 (2,064) Taxable 222,587 (1,703) — — 222,587 (1,703) Asset backed securities: Government sponsored student loan pools 63,415 (85) 58,513 (458) 121,928 (543) $ 3,166,186 $ (24,028) $ 217,045 $ (913) $ 3,383,231 $ (24,941) Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) December 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 5,165 $ (55) $ — $ — $ 5,165 $ (55) Government agency collateralized mortgage obligation 120,912 (172) 56,976 (126) 177,888 (298) Private-label collateralized mortgage obligation 290 (7) 9,950 (249) 10,240 (256) Asset backed securities: Government sponsored student loan pools — — 240,825 (3,149) 240,825 (3,149) $ 126,367 $ (234) $ 307,751 $ (3,524) $ 434,118 $ (3,758) As indicated in the tables above, as of June 30, 2021, the Company’s investment securities had gross unrealized losses totaling approximately $24.9 million, compared to approximately $3.8 million at December 31, 2020. The Company analyzes all of its securities with an unrealized loss position. For each security, the Company analyzed the credit quality and performed a projected cash flow analysis. In analyzing the credit quality, management may consider whether the securities are issued by the federal government, its agencies or its sponsored entities, or non-governmental entities, whether downgrades by bond rating agencies have occurred, and if credit quality has deteriorated. When performing a cash flow analysis, the Company uses models that project prepayments, default rates, and loss severities on the collateral supporting the security, based on underlying loan level borrower and loan characteristics and interest rate assumptions. Based on these analyses and reviews conducted by the Company, and assisted by independent third parties, the Company determined that none of its securities required an other-than-temporary impairment charge at June 30, 2021. Management continues to expect to recover the adjusted amortized cost basis of these bonds. As of June 30, 2021, the Company had 160 securities whose estimated fair value declined 0.73% from the Company’s amortized cost; at December 31, 2020, the Company had 30 securities whose estimated fair value declined 0.86% from the Company’s amortized cost. The Company’s securities that have unrealized losses are due to widened credit spreads and changes in market interest rates since their purchase dates. Current unrealized losses are expected to recover as the securities approach their respective maturity dates. Management believes it will more than likely not be required to sell before recovery of the amortized cost basis. There were no sales or calls of available-for-sale securities for the three and six months ended June 30, 2021. For the three months ended June 30, 2020 the Company received $202.3 million in proceeds and recognized a $3.5 million gain and $0.9 million loss on sales of available-for-sale securities. For the six months ended June 30, 2020 the Company received $216.4 million in proceeds and recognized a $4.7 million gain and $0.9 million loss on sales and calls of securities. There were no credit losses associated with our securities portfolio recognized in earnings for the three and six months ended June 30, 2021 and 2020. The amortized cost and estimated fair value of investment securities as of the periods presented by contractual maturity are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the following table, the entire outstanding balance of residential and commercial mortgage-backed securities is categorized based on the final maturity date. June 30, December 31, Amortized Fair Amortized Fair (Dollars in thousands) Available-for-sale securities Within one year $ — $ — $ — $ — After one year through five years 3,032 2,951 — — After five years through ten years 832,483 833,641 14,021 15,694 After ten years 5,318,871 5,340,186 884,730 923,321 Total $ 6,154,386 $ 6,176,778 $ 898,751 $ 939,015 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans | Loans The following disclosure reports the Company’s loan portfolio segments and classes. Segments are groupings of similar loans at a level in which the Company has adopted systematic methods of documentation for determining its allowance for loan and credit losses. Classes are a disaggregation of the portfolio segments. The Company’s loan portfolio segments are: Real estate. Real estate loans includes loans for which the Company holds one-to-four family, multi-family, commercial and construction real property as collateral. Commercial real estate lending activity is primarily focused on investor properties that are owned by customers with a current banking relationship. The primary risks of real estate mortgage loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans also may be adversely affected by conditions in the real estate markets or in the general economy. Commercial and industrial . Commercial and industrial loans consist of loans and lines of credit to businesses that are generally collateralized by accounts receivable, inventory, equipment, loan and lease receivables, digital currency assets such as bitcoin and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risks may arise from differences between expected and actual cash flows and/or liquidity levels of the borrowers, as well as the type of collateral securing these loans and the reliability of the conversion thereof to cash. Currently, commercial and industrial loans consist primarily of asset based loans. In January 2020, the Company began offering a new lending product called SEN Leverage, which allows Silvergate customers to obtain U.S. dollar loans collateralized by bitcoin held at select digital currency exchanges and other custodians. The outstanding balance of SEN Leverage loans was $203.4 million and $77.2 million at June 30, 2021 and December 31, 2020, respectively. Reverse mortgage and other. From 2012 to 2014, the Company purchased home equity conversion mortgage (“HECM”) loans (also known as reverse mortgage loans) which are a special type of home loan, for homeowners aged 62 years or older, that requires no monthly mortgage payments and allows the borrower to receive payments from the lender. Reverse mortgage loan insurance is provided by the U.S. Federal Housing Administration through the HECM program which protects lenders from losses due to non-repayment of the loans when the outstanding loan balance exceeds collateral value at the time the loan is required to be repaid. Other loans consist of consumer loans and loans secured by personal property. Mortgage warehouse. The Company’s mortgage warehouse lending division provides short-term interim funding for single-family residential mortgage loans originated by mortgage bankers or other lenders. The Company holds legal title to such loans from the date they are funded by the Company until the loans are sold to secondary market investors pursuant to pre-existing take out commitments, generally within a few weeks of origination, with loan sale proceeds applied to pay down Company funding. The Company’s mortgage warehouse loans may either be held-for-investment or held-for-sale depending on the underlying contract. At June 30, 2021 and December 31, 2020, gross mortgage warehouse loans were approximately $798.5 million and $963.9 million, respectively. A summary of loans as of the periods presented are as follows: June 30, December 31, (Dollars in thousands) Real estate loans: One-to-four family $ 144,247 $ 187,855 Multi-family 67,704 77,126 Commercial 272,948 301,901 Construction 5,481 6,272 Commercial and industrial 204,279 78,909 Reverse mortgage and other 1,364 1,495 Mortgage warehouse 49,897 97,903 Total gross loans held-for-investment 745,920 751,461 Deferred fees, net 1,151 2,206 Total loans held-for-investment 747,071 753,667 Allowance for loan losses (6,916) (6,916) Total loans held-for-investment, net $ 740,155 $ 746,751 Total loans held-for-sale (1) $ 748,577 $ 865,961 ________________________ (1) Loans held-for-sale are comprised entirely of mortgage warehouse loans for all periods presented. At June 30, 2021 and December 31, 2020, approximately $491.7 million and $574.5 million, respectively, of the Company’s gross loans held-for-investment was collateralized by various forms of real estate. A significant percentage of such loans are collateralized by properties located in California. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The Company monitors and manages concentrations of credit risk by making loans that are diversified by collateral type, placing limits on the amounts of various categories of loans relative to total Company capital, and conducting quarterly reviews of its portfolio by collateral type, geography, and other characteristics. Recorded investment in loans excludes accrued interest receivable, loan origination fees, net and unamortized premium or discount, net due to immateriality. Accrued interest on loans held-for-investment totaled approximately $3.1 million and $2.7 million and deferred fees totaled approximately $1.2 million and $2.2 million at June 30, 2021 and December 31, 2020, respectively. Allowance for Loan Losses During the three months ended March 31, 2021, the Company updated the allowance for loan loss model to remove historical loss data which is no longer relevant for the commercial and industrial loan segment, reflecting the growth of digital collateralized loans that are now the majority of the loan segment balance. In addition, the Company added a COVID-19 loan modification qualitative factor adjustment to the commercial and one-to-four family real estate loan segments to recognize the modifications granted over the previous twelve months and additional risks of default in these loan segments. The following tables present the allocation of the allowance for loan losses, as well as the activity in the allowance by loan class, and recorded investment in loans held-for-investment as of and for the periods presented: Three Months Ended June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, March 31, 2021 $ 1,634 $ 828 $ 3,251 $ 493 $ 360 $ 18 $ 332 $ 6,916 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision for loan losses (375) (85) (313) 19 885 (7) (124) — Balance, June 30, 2021 $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Three Months Ended June 30, 2020 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, March 31, 2020 $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 39 $ 218 $ 6,558 Charge-offs (17) — — — — — — (17) Recoveries — — — — — — — — Provision for loan losses (440) 133 (1,010) 760 337 1 441 222 Balance, June 30, 2020 $ 1,514 $ 822 $ 1,947 $ 1,018 $ 763 $ 40 $ 659 $ 6,763 Six Months Ended June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2020 $ 1,245 $ 878 $ 1,810 $ 590 $ 1,931 $ 39 $ 423 $ 6,916 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision for loan losses 14 (135) 1,128 (78) (686) (28) (215) — Balance, June 30, 2021 $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Six Months Ended June 30, 2020 One-to Multi- Commercial Construction Commercial and Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2019 $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 38 $ 250 $ 6,191 Charge-offs (17) — — — — — — (17) Recoveries — — — — — — — — Provision for loan losses (520) 169 (844) 922 451 2 409 589 Balance, June 30, 2020 $ 1,514 $ 822 $ 1,947 $ 1,018 $ 763 $ 40 $ 659 $ 6,763 June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ — $ — $ 11 General portfolio allocation 1,248 743 2,938 512 1,245 11 208 6,905 Total allowance for loan losses $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Loans evaluated for impairment: Specifically evaluated $ 7,302 $ — $ 9,941 $ — $ 199 $ 884 $ — $ 18,326 Collectively evaluated 136,945 67,704 263,007 5,481 204,080 480 49,897 727,594 Total gross loans held-for-investment $ 144,247 $ 67,704 $ 272,948 $ 5,481 $ 204,279 $ 1,364 $ 49,897 $ 745,920 December 31, 2020 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ 29 $ — $ 40 General portfolio allocation 1,234 878 1,810 590 1,931 10 423 6,876 Total allowance for loan losses $ 1,245 $ 878 $ 1,810 $ 590 $ 1,931 $ 39 $ 423 $ 6,916 Loans evaluated for impairment: Specifically evaluated $ 5,780 $ — $ 9,722 $ — $ 274 $ 869 $ — $ 16,645 Collectively evaluated 182,075 77,126 292,179 6,272 78,635 626 97,903 734,816 Total gross loans held-for-investment $ 187,855 $ 77,126 $ 301,901 $ 6,272 $ 78,909 $ 1,495 $ 97,903 $ 751,461 Impaired Loans The following tables provide a summary of the Company’s investment in impaired loans as of and for the periods presented: June 30, 2021 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 7,958 $ 7,239 $ — Commercial 9,941 9,941 — Commercial and industrial 199 199 — Reverse mortgage and other 884 884 — 18,982 18,263 — With an allowance recorded: Real estate loans: One-to-four family 63 63 11 63 63 11 Total impaired loans $ 19,045 $ 18,326 $ 11 December 31, 2020 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 6,432 $ 5,716 $ — Commercial 9,723 9,722 — Commercial and industrial 274 274 — Reverse mortgage and other 523 523 — 16,952 16,235 — With an allowance recorded: Real estate loans: One-to-four family 64 64 11 Reverse mortgage and other 346 346 29 410 410 40 Total impaired loans $ 17,362 $ 16,645 $ 40 Three Months Ended June 30, 2021 2020 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 6,931 $ 63 $ 3,390 $ 71 Commercial 9,904 133 1,941 22 Commercial and industrial 212 4 2,043 31 Reverse mortgage and other 880 — 515 — 17,927 200 7,889 124 With an allowance recorded: Real estate loans: One-to-four family 365 2 65 2 Reverse mortgage and other — — 340 — 365 2 405 2 Total impaired loans $ 18,292 $ 202 $ 8,294 $ 126 Six Months Ended June 30, 2021 2020 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 5,955 $ 140 $ 3,560 $ 97 Commercial 9,849 261 1,941 43 Commercial and industrial 230 9 2,186 72 Reverse mortgage and other 748 — 513 — 16,782 410 8,200 212 With an allowance recorded: Real estate loans: One-to-four family 215 3 65 3 Reverse mortgage and other 129 — 340 — 344 3 405 3 Total impaired loans $ 17,126 $ 413 $ 8,605 $ 215 For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. Cash basis interest income is not materially different than interest income recognized. Nonaccrual and Past Due Loans Nonperforming loans include individually evaluated impaired loans, loans for which the accrual of interest has been discontinued and loans 90 days or more past due and still accruing interest. The following tables present by loan class the aging analysis based on contractual terms, nonaccrual loans, and the Company’s recorded investment in loans held-for-investment as of the periods presented: June 30, 2021 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 2,202 $ 360 $ 5,047 $ 7,609 $ 136,638 $ 144,247 $ 6,624 $ — Multi-family 1,984 — — 1,984 65,720 67,704 — — Commercial — — — — 272,948 272,948 — — Construction — — — — 5,481 5,481 — — Commercial and industrial — — — — 204,279 204,279 — — Reverse mortgage and other — — — — 1,364 1,364 884 — Mortgage warehouse — — — — 49,897 49,897 — — Total gross loans held-for-investment $ 4,186 $ 360 $ 5,047 $ 9,593 $ 736,327 $ 745,920 $ 7,508 $ — December 31, 2020 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 992 $ 85 $ 3,820 $ 4,897 $ 182,958 $ 187,855 $ 4,113 $ — Multi-family 206 — — 206 76,920 77,126 — — Commercial — — — — 301,901 301,901 — — Construction — — — — 6,272 6,272 — — Commercial and industrial — — — — 78,909 78,909 — — Reverse mortgage and other — — — — 1,495 1,495 869 — Mortgage warehouse — — — — 97,903 97,903 — — Total gross loans held-for-investment $ 1,198 $ 85 $ 3,820 $ 5,103 $ 746,358 $ 751,461 $ 4,982 $ — Troubled Debt Restructurings A loan is identified as a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulties and, for economic or legal reasons related to these difficulties, the Company grants a concession to the borrower in the restructuring that it would not otherwise consider. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The Company has granted a concession when, as a result of the restructuring, it does not expect to collect all amounts due or within the time periods originally due under the original contract, including one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a temporary forbearance with regard to the payment of principal or interest. All troubled debt restructurings are reviewed for potential impairment. Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a minimum period of six months to demonstrate that the borrower can perform under the restructured terms. If the borrower’s performance under the new terms is not reasonably assured, the loan remains classified as a nonaccrual loan. Loans classified as TDRs are reported as impaired loans. As of June 30, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $1.4 million and $1.5 million, respectively. The Company has allocated $11,000 of specific allowance for those loans at June 30, 2021 and $11,000 December 31, 2020. The Company has not committed to lend additional amounts to these TDRs. No loans were modified as TDRs during the three and six months ended June 30, 2021 or 2020. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. There were no loans modified as TDRs for which there was a payment default within twelve months during the three and six months ended June 30, 2021 or 2020. There was no provision for loan loss or charge-offs for TDR’s that subsequently defaulted during the three and six months ended June 30, 2021 or 2020. COVID-19 Related Modifications In March 2020, Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) addressed COVID-19 related modifications and specified that such modifications made on loans that were current as of December 31, 2019 are not TDRs. In December 2020, CARES Act was extended to allow eligible loan modifications until the earlier of January 1, 2022 or the date that is 60 days after the termination date of the national emergency. In accordance with interagency guidance issued in April 2020, short-term modifications made to a borrower affected by the COVID-19 pandemic and governmental shutdown orders, such as payment deferrals, fee waivers and extensions of repayment terms, do not need to be identified as TDRs if the loans were current at the time a modification plan was implemented. The Company elected to adopt the provisions of the CARES Act for modifications that meet the requirements described above. In April 2020, the Company implemented a short-term loan modification program for customers impacted financially by the COVID-19 pandemic to provide temporary relief to certain borrowers who meet the program’s qualifications. The program was offered to borrowers to modify their existing loans to temporarily defer principal and/or interest payments for a specified period of time, extend loan maturity dates and/or waive certain loan covenants. Deferred payments may be extended for continued hardship, on a case by case basis, where COVID-19 related issues continue to persist. Due to the fluid nature of COVID-19, this program has been evolving in order to provide maximum relief to bank borrowers. The majority of short-term loan modifications for commercial real estate loan borrowers consist of deferred payments which may include principal, interest and escrow. Deferred interest is capitalized to the loan balance and deferred principal is added to the maturity or payoff date. For one-to-four family residential real estate loans, the majority of short-term modifications consist of deferring full monthly payment of principal, interest and escrow, with deferred payments due at maturity or payoff of the loan. Loans qualifying for these modifications are not required to be reported as a TDR, delinquent, nonaccrual, impaired or criticized solely as a result of a COVID-19 loan modification for the months of payment deferrals. Borrowers considered current are those that are less than 30 days past due on their modified contractual payments. None of the modified loans met the criteria of a TDR under the CARES Act or the related interagency statement. As of June 30, 2021, loans representing $23.4 million in loan balances, or 3.1% of total gross loans held-for-investment, were still under modification, deferring a portion or all of the contractual payments. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. This analysis typically includes larger, nonhomogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass : Loans in all classes that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Special mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Credits rated as loss are charged-off. Management has no expectation of the recovery of any payments in respect of credits rated as loss. The following tables present by portfolio class the Company’s internal risk grading system as well as certain other information concerning the credit quality of the Company’s recorded investment in loans held-for-investment as of the periods presented. No assets were classified as loss or doubtful during the periods presented. Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) June 30, 2021 Real estate loans: One-to-four family $ 136,208 $ 1,415 $ 6,624 $ — $ 144,247 Multi-family 67,704 — — — 67,704 Commercial 250,448 14,514 7,986 — 272,948 Construction 5,481 — — — 5,481 Commercial and industrial 204,080 — 199 — 204,279 Reverse mortgage and other 480 — 884 — 1,364 Mortgage warehouse 49,897 — — — 49,897 Total gross loans held-for-investment $ 714,298 $ 15,929 $ 15,693 $ — $ 745,920 Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) December 31, 2020 Real estate loans: One-to-four family $ 180,458 $ 3,284 $ 4,113 $ — $ 187,855 Multi-family 77,126 — — — 77,126 Commercial 288,309 5,825 7,767 — 301,901 Construction 6,272 — — — 6,272 Commercial and industrial 78,635 — 274 — 78,909 Reverse mortgage and other 626 — 869 — 1,495 Mortgage warehouse 97,903 — — — 97,903 Total gross loans held-for-investment $ 729,329 $ 9,109 $ 13,023 $ — $ 751,461 Related Party Loans The Company had related party loans with an outstanding balance of $5.0 million as of June 30, 2021 and December 31, 2020. During the six months ended June 30, 2021, the Company advanced $2.0 million of related party loans and received $2.0 million in principal payments. |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings Federal Home Loan Bank (“FHLB”) Advances The following table sets forth certain information on our FHLB advances during the period presented: Six Months Ended Year Ended (Dollars in thousands) Amount outstanding at period-end $ — $ — Weighted average interest rate at period-end — — Maximum month-end balance during the period $ — $ 360,000 Average balance outstanding during the period $ — $ 68,522 Weighted average interest rate during the period — 0.50 % FHLB advances are secured with eligible collateral consisting of certain real estate loans. Advances from the FHLB are subject to the FHLB’s collateral and underwriting requirements, and as of June 30, 2021 and December 31, 2020, were limited in the aggregate to 35% of the Company’s total assets. Loans with carrying values of approximately $1.2 billion and $1.5 billion were pledged to the FHLB as of June 30, 2021 and December 31, 2020, respectively. Unused borrowing capacity based on the lesser of the percentage of total assets and pledged collateral was approximately $730.2 million and $893.0 million as of June 30, 2021 and December 31, 2020, respectively. FRB Advances The Company is also approved to borrow through the Discount Window of the Federal Reserve Bank of San Francisco on a collateralized basis without any fixed dollar limit. Loans with a carrying value of approximately $6.2 million and $6.3 million were pledged to the FRB at June 30, 2021 and December 31, 2020, respectively. The Company’s borrowing capacity under the Federal Reserve’s discount window program was approximately $5.0 million and $4.8 million as of June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020, there were no borrowings outstanding under any of these lines. Federal Funds Purchased The Company may borrow up to an aggregate $108.0 million, overnight on an unsecured basis, from two of its correspondent banks. Access to these funds is subject to liquidity availability, market conditions and any negative material change in the Company’s credit profile. As of June 30, 2021 and December 31, 2020, the Company had no outstanding balance of federal funds purchased. |
Subordinated Debentures, Net
Subordinated Debentures, Net | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures, Net | Subordinated Debentures, Net A trust formed by the Company issued $12.5 million of floating rate trust preferred securities in July 2001 as part of a pooled offering of such securities. The Company issued subordinated debentures to the trust in exchange for its proceeds from the offering. The debentures and related accrued interest represent substantially all of the assets of the trust. The subordinated debentures bear interest at six-month LIBOR plus 375 basis points, which adjusts every six months in January and July of each year. Interest is payable semiannually. At June 30, 2021, the interest rate for the Company’s next scheduled payment was 3.98%, based on six-month LIBOR of 0.23%. On any January 25 or July 25 the Company may redeem the 2001 subordinated debentures at 100% of principal amount plus accrued interest. The 2001 subordinated debentures mature on July 25, 2031. A second trust formed by the Company issued $3.0 million of trust preferred securities in January 2005 as part of a pooled offering of such securities. The Company issued subordinated debentures to the trust in exchange for its proceeds from the offering. The debentures and related accrued interest represent substantially all of the assets of the trust. The subordinated debentures bear interest at three-month LIBOR plus 185 basis points, which adjusts every three months. Interest is payable quarterly. At June 30, 2021, the interest rate for the Company’s next scheduled payment was 1.97%, based on three-month LIBOR of 0.12%. On the 15th day of any March, June, September, or December, the Company may redeem the 2005 subordinated debentures at 100% of principal amount plus accrued interest. The 2005 subordinated debentures mature on March 15, 2035. The Company also retained a 3% minority interest in each of these trusts which is included in subordinated debentures. The balance of the equity in the trusts is comprised of mandatorily redeemable preferred securities. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The Company has the right to defer interest payments on the subordinated debentures from time to time for a period not to exceed five years. The outstanding balance of the subordinated debentures was $15.8 million, net of $0.1 million unamortized debt issuance cost as of June 30, 2021 and $15.8 million, net of $0.1 million unamortized debt issuance costs as of December 31, 2020. |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. The Company utilizes interest rate derivatives as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the derivative does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual derivative agreements. In accordance with accounting guidance, changes in the fair value of derivatives designated and that qualify as cash flow hedges are initially recorded in other comprehensive income (“OCI”), reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. For cash flow and fair value hedges, the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in earnings under a systematic and rational method over the life of the hedging instrument and is presented in the same income statement line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. For a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. The changes in fair value of the hedged item is recorded as a basis adjustment to the hedged assets or liabilities. The amount included as basis adjustments would be reclassified to current earnings on a straight-line basis over the original life of the hedged item should the hedges no longer be considered effective. Interest rate swaps. In 2020, the Company entered into two pay-fixed/receive floating rate interest rate swaps (the “Swap Agreements”) for a notional amount of $14.3 million that were designated as fair value hedges of certain available-for-sale securities. The Swap Agreements were determined to be fully effective during the periods presented and therefore no amount of ineffectiveness has been included in net income. The Swap Agreements are based on three-month LIBOR and expire in 2030 and 2031. The Company expects the Swap Agreements to remain effective during the remaining term of the Swap Agreements. The Company may receive collateral or may be required to post collateral based upon the market valuation. As of June 30, 2021, the Company held $0.3 million in cash collateral posted by the counterparty. Interest rate floors. In 2019, the Company entered into 20 interest rate floor agreements (the “Floor Agreements”) for a total notional amount of $400.0 million to hedge cash flow receipts on cash and securities or loans, if needed. The original Floor Agreements expire on various dates in April 2024 and July 2029. The Company utilizes one-month LIBOR and three-month LIBOR interest rate floors as hedges against adverse changes in cash flows on the designated cash, securities or loans attributable to fluctuations in the federal funds rate or three-month LIBOR below 2.50% or 2.25%, as applicable. The Floor Agreements were determined to be fully effective during all periods presented and, as such, no amount of ineffectiveness has been included in net income. The upfront fee paid to the counterparty in entering into these Floor Agreements was approximately $20.8 million. During the three months ended March 31, 2020, the Company sold $200.0 million of its total $400.0 million notional amount of interest rate floors for $13.0 million, which resulted in a net gain of $8.4 million, to be recognized over the weighted average remaining term of 4.1 years. The remaining agreements are one-month LIBOR floors with a strike price of 2.25% and expire in July 2029. Interest rate caps. In 2021, the Company entered into 26 interest rate cap agreements with a total notional amount of $552.8 million (“Federal Funds Rate Cap Agreements”). The Federal Funds Rate Cap Agreements are designated as fair value hedges against changes in the fair value of certain fixed rate tax-exempt municipal bonds. The Company utilizes the interest rate caps as hedges against adverse changes in interest rates on the designated securities attributable to fluctuations in the federal funds rate above 2.00%, as applicable. An increase in the benchmark interest rate hedged reduces the fair value of these assets. The Federal Funds Rate Cap Agreements expire on various dates from 2027 to 2032. The upfront fee paid to the counterparties was approximately $24.7 million. The Company expects the Federal Funds Rate Cap Agreements to remain effective during the remaining term of the respective agreements. In 2012, the Company entered into a $12.5 million and a $3.0 million notional forward interest rate cap agreement (the “LIBOR Cap Agreements”) to hedge its variable rate subordinated debentures. The LIBOR Cap Agreements expire July 25, 2022 and March 15, 2022, respectively. The Company utilizes interest rate caps as hedges against adverse changes in cash flows on the designated preferred trusts attributable to fluctuations in three-month LIBOR beyond 0.50% for the $3.0 million subordinated debenture and six-month LIBOR beyond 0.75% for the $12.5 million subordinated debenture. The Cap Agreements were determined to be fully effective during all periods presented and, as such, no amount of ineffectiveness has been included in net income. The upfront fee paid to the counterparty in entering into these LIBOR Cap Agreements was approximately $2.5 million. The table below presents the fair value of the Company’s derivative financial instruments as well as the classification within the consolidated statements of financial condition. June 30, December 31, Balance Sheet Fair Value Balance Sheet Fair Value (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor Derivative assets $ 22,889 Derivative assets $ 30,766 Cash flow hedge interest rate cap Derivative assets — Derivative assets — Fair value hedge interest rate swap Derivative assets 923 Derivative assets 338 Fair value hedge interest rate cap Derivative assets 15,642 Derivative assets — The following table presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of the periods presented. Carrying Amount Cumulative Amount of Fair June 30, December 31, June 30, December 31, (Dollars in thousands) Line Item in the Statement of Financial Condition of Hedged Item: Securities available-for-sale $ 696,769 $ 15,367 $ (923) $ (278) The following table summarizes the effects of derivatives in cash flow and fair value hedging relationships designated as hedging instruments on the Company’s OCI and consolidated statements of operations for the periods presented. Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Three Months Ended Three Months Ended 2021 2020 2021 2020 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ 305 $ 638 Interest income - Other interest earning assets $ 140 $ 350 Cash flow hedge interest rate floor 1,221 2,552 Interest income - Taxable securities 1,073 671 Cash flow hedge interest rate cap — (13) Interest expense - Subordinated debentures (101) (65) Fair value hedge interest rate cap (1) (8,998) — Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Six Months Ended Six Months Ended 2021 2020 2021 2020 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ (1,145) $ 6,734 Interest income - Other interest earning assets $ 276 $ 475 Cash flow hedge interest rate floor (4,579) 20,218 Interest income - Taxable securities 2,125 788 Cash flow hedge interest rate cap — (293) Interest expense - Subordinated debentures (200) (120) Fair value hedge interest rate cap (1) (8,623) — ________________________ (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in other comprehensive income. The Company estimates that approximately $4.8 million of net derivative gain for cash flow hedges included in OCI will be reclassified into earnings within the next 12 months. No gain or loss was reclassified from OCI into earnings as a result of forecasted transactions that failed to occur during the periods presented. The following table presents the effect of fair value hedge accounting on the Company’s consolidated statements of operations for the periods presented. Location and Amount of Gain or (Loss) Three Months Ended June 30, 2021 2020 Interest income - Taxable securities Interest income - Tax-exempt securities Interest income - Taxable securities Interest income - Tax-exempt securities (Dollars in thousands) Total interest income presented in the statement of operations in which the effects of fair value hedges are recorded $ 8,324 $ 3,123 $ 4,123 $ 1,577 Effects of fair value hedging relationships Interest rate contracts: Hedged items $ 487 $ 743 $ — $ — Derivatives designated as hedging instruments (496) (743) — — Amount excluded from effectiveness testing recognized in earnings based on amortization approach — (454) — — Location and Amount of Gain or (Loss) Six Months Ended June 30, 2021 2020 Interest income - Taxable securities Interest income - Tax-exempt securities Interest income - Taxable securities Interest income - Tax-exempt securities (Dollars in thousands) Total interest income presented in the statement of operations in which the effects of fair value hedges are recorded $ 11,916 $ 4,818 $ 10,171 $ 1,625 Effects of fair value hedging relationships Interest rate contracts: Hedged items $ (585) $ — $ — $ — Derivatives designated as hedging instruments 557 — — — Amount excluded from effectiveness testing recognized in earnings based on amortization approach — (479) — — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Comparison of the federal statutory income tax rates to the Company’s effective income tax rates for the periods presented are as follows: Three Months Ended June 30, 2021 2020 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 4,396 21.0 % $ 1,531 21.0 % State tax, net of federal benefit 341 1.6 % 613 8.4 % Tax credits (16) (0.1) % (67) (0.9) % Tax-exempt income (405) (1.9) % (247) (3.4) % Excess tax benefit from stock-based compensation (4,046) (19.3) % (20) (0.3) % Other items, net (272) (1.3) % 16 0.2 % Actual tax (benefit) expense $ (2) 0.0 % $ 1,826 25.0 % Six Months Ended June 30, 2021 2020 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 6,811 21.0 % $ 2,826 21.0 % State tax, net of federal benefit (110) (0.3) % 1,107 8.2 % Tax credits (57) (0.2) % (123) (0.9) % Tax-exempt income (752) (2.3) % (247) (1.8) % Excess tax benefit from stock-based compensation (7,049) (21.7) % (20) (0.2) % Other items, net (56) (0.2) % 57 0.4 % Actual tax (benefit) expense $ (1,213) (3.7) % $ 3,600 26.7 % Income tax benefit was $2,000 for the three months ended June 30, 2021 compared to an expense of $1.8 million for the three months ended June 30, 2020. The effective tax rates for the three months ended June 30, 2021 and 2020 were zero and 25.0%, respectively. Income tax benefit was $1.2 million for the six months ended June 30, 2021 compared to an expense of $3.6 million for the six months ended June 30, 2020. The effective tax rates for the six months ended June 30, 2021 and 2020 were (3.7)% and 26.7%, respectively. The decreases in the income tax expense and the Company’s effective tax rate were primarily related to excess tax benefit from stock-based compensation and tax-exempt income earned on certain municipal bonds. The deferred tax liability balance as of June 30, 2021 was $6.4 million compared to $15.4 million as of December 31, 2020. The primary change in balance was due to the decrease in unrealized gains on available-for-sale securities portfolio and derivative assets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Items In the normal course of business, the Company enters into various transactions, which, in accordance with GAAP, are not included in the consolidated statements of financial condition. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and issue letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk exceeding the amounts recognized on the consolidated statements of financial condition. The Company’s exposure to credit loss is represented by the contractual amounts of these commitments. The same credit policies and procedures are used in making these commitments as for on-balance sheet instruments. The Company is not aware of any accounting loss to be incurred by funding these commitments, however, an allowance for off-balance sheet credit risk is recorded in other liabilities on the statements of financial condition. The allowance for these commitments amounted to approximately $0.3 million and $0.1 million at June 30, 2021 and December 31, 2020, respectively. The Company’s commitments associated with outstanding letters of credit and commitments to extend credit expiring by period as of the date indicated are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. June 30, December 31, (Dollars in thousands) Unfunded lines of credit $ 100,394 $ 49,487 Letters of credit 425 133 Total credit extension commitments $ 100,819 $ 49,620 Unfunded lines of credit represent unused credit facilities to the Company’s current borrowers that represent no change in credit risk that exist in the Company’s portfolio. Lines of credit generally have variable interest rates. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the client from the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, bitcoin, cash and/or marketable securities. The Company’s policies generally require that letter of credit arrangements contain security and debt covenants like those contained in loan agreements and our credit risk associated with issuing letters of credit is essentially the same as the risk involved in extending loan facilities to customers. The Company minimizes its exposure to loss under letters of credit and credit commitments by subjecting them to the same credit approval and monitoring procedures used for on-balance sheet instruments. The effect on the Company’s revenue, expenses, cash flows and liquidity of the unused portions of these letters of credit commitments cannot be precisely predicted because there is no guarantee that the lines of credit will be used. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract, for a specific purpose. Commitments generally have variable interest rates, fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management’s credit evaluation of the customer. Litigation The Company is involved in various matters of litigation which have arisen in the ordinary course of its business. In the opinion of management, the disposition of such pending litigation will not have a material adverse effect on the Company’s financial statements. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation In June 2018, the Company adopted the 2018 Equity Compensation Plan, or 2018 Plan, that permits the Compensation Committee, in its sole discretion, to grant various forms of incentive awards. Under the 2018 Plan, the Compensation Committee has the power to grant stock options, stock appreciation rights, or SARs, restricted stock and restricted stock units. The number of shares that may be issued pursuant to awards under the 2018 Plan is 1,596,753. In accordance with authoritative guidance for stock-based compensation, compensation expense is recognized only for those shares expected to vest, based on the Company’s historical experience and future expectations. The Company has elected a policy of estimating expected forfeitures. Total stock-based compensation expense was $0.5 million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively. Total stock-based compensation expense was $0.8 million and $0.4 million for the six months ended June 30, 2021 and 2020, respectively. A summary of stock option activity as of June 30, 2021 and changes during the six months ended June 30, 2021 is presented below: Number of Weighted Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2021 595,303 $ 8.01 Granted 18,585 127.56 Exercised (335,956) 4.60 Forfeited or expired (6,932) 16.09 Outstanding at June 30, 2021 271,000 $ 14.03 6.6 years $ 25,491 Exercisable at June 30, 2021 135,427 $ 9.11 4.7 years $ 14,113 Vested or Expected to Vest at June 30, 2021 257,836 $ 19.77 6.5 years $ 24,363 As of June 30, 2021, there was $1.3 million of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of 2.6 years. Restricted Stock Units A summary of the status of the Company’s nonvested restricted stock unit awards as of June 30, 2021, and changes during the six months ended June 30, 2021, is presented below: Number of Shares Weighted-Average Nonvested at January 1, 2021 58,690 $ 15.61 Granted 31,788 $ 121.61 Vested (14,686) $ 14.60 Forfeited (2,999) $ 42.26 Nonvested at June 30, 2021 72,793 $ 61.00 At June 30, 2021, there was approximately $3.4 million of total unrecognized compensation expense related to nonvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 2.5 years. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Capital | Regulatory Capital Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. As of January 1, 2019, the capital conservation buffer had fully phased in to 2.50%. Inclusive of the fully phased-in capital conservation buffer, the common equity tier 1 capital ratio, tier 1 risk-based capital ratio and total risk-based capital ratio minimums are 7.00%, 8.50% and 10.50%, respectively. The net unrealized gain or loss on available for sale securities and derivatives are not included in computing regulatory capital. Management believes, as of June 30, 2021, the Company and the Bank met all capital adequacy requirements to which they were subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. For the periods presented, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual capital amounts and ratios for the Company and the Bank as of June 30, 2021 and December 31, 2020, are presented in the following tables: Actual Minimum capital adequacy (1) To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2021 The Company Tier 1 leverage ratio $ 864,828 7.91 % $ 437,250 4.00 % N/A N/A Common equity tier 1 capital ratio 849,328 46.75 % 81,747 4.50 % N/A N/A Tier 1 risk-based capital ratio 864,828 47.61 % 108,995 6.00 % N/A N/A Total risk-based capital ratio 871,996 48.00 % 145,327 8.00 % N/A N/A The Bank Tier 1 leverage ratio 858,796 7.88 % 436,015 4.00 % $ 545,018 5.00 % Common equity tier 1 capital ratio 858,796 47.29 % 81,715 4.50 % 118,033 6.50 % Tier 1 risk-based capital ratio 858,796 47.29 % 108,953 6.00 % 145,271 8.00 % Total risk-based capital ratio 865,964 47.69 % 145,271 8.00 % 181,589 10.00 % Actual Minimum capital adequacy (1) To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 The Company Tier 1 leverage ratio $ 263,763 8.29 % $ 127,338 4.00 % N/A N/A Common equity tier 1 capital ratio 248,263 21.53 % 51,882 4.50 % N/A N/A Tier 1 risk-based capital ratio 263,763 22.88 % 69,176 6.00 % N/A N/A Total risk-based capital ratio 270,803 23.49 % 92,234 8.00 % N/A N/A The Bank Tier 1 leverage ratio 261,791 8.22 % 127,344 4.00 % $ 159,180 5.00 % Common equity tier 1 capital ratio 261,791 22.71 % 51,869 4.50 % 74,923 6.50 % Tier 1 risk-based capital ratio 261,791 22.71 % 69,159 6.00 % 92,212 8.00 % Total risk-based capital ratio 268,831 23.32 % 92,212 8.00 % 115,265 10.00 % ________________________ (1) Minimum capital adequacy for common equity tier 1 capital ratio, tier 1 risk-based capital ratio and total risk-based capital ratio excludes the capital conservation buffer. The Bank is restricted as to the amount of dividends that it can pay to the Company. Dividends declared in excess of the lesser of the Bank’s undivided profits or the Bank’s net income for its last three fiscal years less the amount of any distribution made to the Bank’s shareholder during the same period must be approved by the California DFPI. Also, the Bank may not pay dividends that would result in capital levels being reduced below the minimum requirements shown above. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This standard’s fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1— Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2— Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3— Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Instruments Required To Be Carried At Fair Value The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities . The fair values of securities available-for-sale and trading securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives . The Company’s derivative assets and liabilities are carried at fair value as required by GAAP. The estimated fair values of the derivative assets and liabilities are based on current market prices for similar instruments. Given the meaningful level of secondary market activity for derivative contracts, active pricing is available for similar assets and accordingly, the Company classifies its derivative assets and liabilities as Level 2. Impaired loans (collateral-dependent) . The Company does not record impaired loans at fair value on a recurring basis. However, from time to time, fair value adjustments are recorded on these loans to reflect (1) partial write-downs, through charge-offs or specific allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (2) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants. These appraisals may utilize a single valuation approach or a combination of approaches, which generally include various Level 3 inputs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and such adjustments are typically significant. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Impaired loans presented in the table below as of the periods presented include impaired loans with specific allowances as well as impaired loans that have been partially charged-off. Other real estate owned . Fair value estimates for foreclosed real estate are obtained from real estate brokers or other third-party consultants (Level 3). When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. The following tables provide the hierarchy and fair value for each class of assets and liabilities measured at fair value at June 30, 2021 and December 31, 2020. As of June 30, 2021 and December 31, 2020, assets and liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) June 30, 2021 Assets Trading securities $ 26,998 $ — $ — $ 26,998 Securities available-for-sale — 6,176,778 — 6,176,778 Derivative assets — 39,454 — 39,454 $ 26,998 $ 6,216,232 $ — $ 6,243,230 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Assets Securities available-for-sale $ — $ 939,015 $ — $ 939,015 Derivative assets — 31,104 — 31,104 $ — $ 970,119 $ — $ 970,119 There were no assets measured at fair value on a nonrecurring basis as of June 30, 2021. As of December 31, 2020, assets measured at fair value on a non-recurring basis are summarized as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Assets Impaired loans: Reverse mortgage $ — $ — $ 317 $ 317 Quantitative Information about Level 3 Fair Value Measurements The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated: Fair Value Valuation Technique(s) Significant Range Weighted Average (1) (Dollars in thousands) December 31, 2020 Collateral-dependent impaired loans $ 317 Market comparable properties Marketability discount 10.0 % 10.0 % Selling cost 8.0 % 8.0 % ________________________ (1) Unobservable inputs were weighted by the relative fair value of the instruments. Financial Instruments Not Required To Be Carried At Fair Value FASB ASC Topic 825, Financial Instruments , requires the disclosure of the estimated fair value of financial instruments. The Company’s estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates are not necessarily indicative of the amounts the Company could have realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following tables present information about the Company’s assets and liabilities that are not measured at fair value in the consolidated statements of financial condition as of the dates presented: Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) June 30, 2021 Financial assets: Cash and due from banks $ 52,859 $ 52,859 $ — $ — $ 52,859 Interest earning deposits 4,415,458 4,415,458 — — 4,415,458 Loans held-for-sale 748,577 — 748,577 — 748,577 Loans held-for-investment, net 740,155 — — 741,916 741,916 Accrued interest receivable 24,505 248 7,546 16,711 24,505 Financial liabilities: Deposits $ 11,371,556 $ — $ 11,400,300 $ — $ 11,400,300 Subordinated debentures, net 15,838 — 15,437 — 15,437 Accrued interest payable 246 — 246 — 246 Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Financial assets: Cash and due from banks $ 16,405 $ 16,405 $ — $ — $ 16,405 Interest earning deposits 2,945,682 2,945,682 — — 2,945,682 Loans held-for-sale 865,961 — 865,961 — 865,961 Loans held-for-investment, net 746,751 — — 751,165 751,165 Accrued interest receivable 8,698 8 2,630 6,060 8,698 Financial liabilities: Deposits $ 5,248,026 $ — $ 5,458,900 $ — $ 5,458,900 Subordinated debentures, net 15,831 — 15,231 — 15,231 Accrued interest payable 260 — 260 — 260 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share is shown below. Three Months Ended Six Months Ended 2021 2020 2021 2020 (In thousands, except per share data) Basic Net income $ 20,935 $ 5,466 $ 33,645 $ 9,859 Weighted average common shares outstanding 25,707 18,672 24,114 18,670 Basic earnings per common share $ 0.81 $ 0.29 $ 1.40 $ 0.53 Diluted Net income $ 20,935 $ 5,466 $ 33,645 $ 9,859 Weighted average common shares outstanding for basic earnings per common share 25,707 18,672 24,114 18,670 Add: Dilutive effects of stock-based awards 395 434 451 442 Average shares and dilutive potential common shares 26,102 19,106 24,565 19,112 Dilutive earnings per common share $ 0.80 $ 0.29 $ 1.37 $ 0.52 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 4, 2021, the Company issued and sold 8,000,000 depositary shares (the “Depositary Shares”), each representing a 1/40th interest in a share of 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share (the “Series A Preferred Stock”), with a liquidation preference of $1,000 per share of Series A Preferred Stock, equivalent to $25 per Depositary Share. The aggregate gross proceeds of the offering were $200.0 million and net proceeds to the Company were approximately $193.9 million after deducting underwriting discounts and offering expenses. When, as and if declared by our board of directors, or a duly authorized committee, of the Company, dividends will be payable from the date of issuance, quarterly in arrears, beginning on November 15, 2021. The Company may redeem the Series A Preferred Stock at its option, subject to regulatory approval, on or after August 15, 2026. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Financial Statement Preparation and Presentation | Financial Statement Preparation and Presentation The accompanying interim consolidated financial statements have been prepared by the Company, without an audit, in accordance with the instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnotes necessary for a fair presentation of its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the Company’s consolidated financial statements. These consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K dated March 8, 2021. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. |
Consolidation | The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the financial services industry. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s financial statements and the accompanying notes. We evaluate estimates on an ongoing basis including the economic impact of Coronavirus Disease 2019 (or “COVID-19”). Actual results could materially differ from those estimates. |
Recently issued accounting pronouncements not yet effective | Recently issued accounting pronouncements not yet effective In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (or “ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (or “CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. These amendments were initially effective for fiscal years beginning after December 15, 2019 for SEC registrants and after December 15, 2020, for Public Business Entities, or PBEs. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which finalized the delay of the effective date for smaller reporting companies, such as the Company to apply the standards related to CECL, until fiscal years beginning after December 15, 2022. For debt securities with other than temporary impairment (OTTI), the guidance will be applied prospectively and for existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets with the scope of CECL, the cumulative effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company formed a CECL implementation committee in 2018 which prepared a project plan to migrate towards the adoption date. As part of the project plan, the Company contracted a third-party vendor to assist in the application and analysis of ASU 2016-13 as well as a third party vendor to perform an independent model validation. As part of this process, the Company has determined preliminary loan pool segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company operationalized an initial CECL model during the second quarter of 2019 and is running this preliminary CECL model alongside the existing incurred loss methodology. The Company intends to continue to refine and run the model until the expected adoption date on January 1, 2023. The Company continues to evaluate the effects of ASU 2016-13 on its financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (or “ASU 2020-04”), which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the London Interbank Offered Rate (or “LIBOR”) or other interbank offered rate (reference rates) on financial reporting. In the fourth quarter of 2020 the Office of the Comptroller of the Currency, amongst others, announced that the overnight and one, three, six and twelve month USD LIBOR will be discontinued on June 30, 2023. It was originally expected that LIBOR would be discontinued by the end of 2021. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. In January 2020, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 to include derivative instruments impacted by discounting transition. The Company has created a subcommittee of the Asset Liability Management Committee to address the LIBOR transition and phase-out issues. The Company has identified its LIBOR-based contracts that will be impacted by the transition away from of LIBOR, and is incorporating fallback language in negotiated contracts and incorporating non-LIBOR reference rate and/or fallback language in new contracts to prepare for these changes. The Company is evaluating the impact that ASU 2020-04 will have on those financial assets where LIBOR is used as an index rate. |
Financial Instruments Required To Be Carried At Fair Value | Financial Instruments Required To Be Carried At Fair Value The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities . The fair values of securities available-for-sale and trading securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives . The Company’s derivative assets and liabilities are carried at fair value as required by GAAP. The estimated fair values of the derivative assets and liabilities are based on current market prices for similar instruments. Given the meaningful level of secondary market activity for derivative contracts, active pricing is available for similar assets and accordingly, the Company classifies its derivative assets and liabilities as Level 2. Impaired loans (collateral-dependent) . The Company does not record impaired loans at fair value on a recurring basis. However, from time to time, fair value adjustments are recorded on these loans to reflect (1) partial write-downs, through charge-offs or specific allowances, that are based on the current appraised or market-quoted value of the underlying collateral or (2) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. Fair value estimates for collateral-dependent impaired loans are obtained from real estate brokers or other third-party consultants. These appraisals may utilize a single valuation approach or a combination of approaches, which generally include various Level 3 inputs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and such adjustments are typically significant. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Impaired loans presented in the table below as of the periods presented include impaired loans with specific allowances as well as impaired loans that have been partially charged-off. Other real estate owned . Fair value estimates for foreclosed real estate are obtained from real estate brokers or other third-party consultants (Level 3). When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities and Gross Unrealized Gains and Losses | The fair value of available-for-sale securities and their related gross unrealized gains and losses at the dates indicated are as follows: Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) June 30, 2021 U.S. Treasuries $ 331,154 $ 59 $ (118) $ 331,095 U.S. agency securities - excluding mortgage-backed securities 578,524 4,210 (3,448) 579,286 Residential mortgage-backed securities: Government agency mortgage-backed securities 1,327,557 180 (7,921) 1,319,816 Government agency collateralized mortgage obligation 1,620,012 875 (7,225) 1,613,662 Private-label collateralized mortgage obligation 1,721 23 (22) 1,722 Commercial mortgage-backed securities: Government agency mortgage-backed securities 291,814 430 (1,306) 290,938 Government agency collateralized mortgage obligation 192,930 159 (168) 192,921 Private-label collateralized mortgage obligation 233,145 12,997 (423) 245,719 Municipal bonds: Tax-exempt 979,706 26,097 (2,064) 1,003,739 Taxable 356,291 1,901 (1,703) 356,489 Asset backed securities: Government sponsored student loan pools 241,532 402 (543) 241,391 $ 6,154,386 $ 47,333 $ (24,941) $ 6,176,778 Available-for-sale securities Amortized Cost Gross Gross Fair Value (Dollars in thousands) December 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 5,701 $ 18 $ (55) $ 5,664 Government agency collateralized mortgage obligation 197,978 371 (298) 198,051 Private-label collateralized mortgage obligation 20,544 399 (256) 20,687 Commercial mortgage-backed securities: Private-label collateralized mortgage obligation 164,214 18,322 — 182,536 Municipal bonds: Tax-exempt 246,159 24,200 — 270,359 Taxable 15,307 695 — 16,002 Asset backed securities: Government sponsored student loan pools 248,848 17 (3,149) 245,716 $ 898,751 $ 44,022 $ (3,758) $ 939,015 |
Schedule of Securities with Unrealized Losses | Securities with unrealized losses as of the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) June 30, 2021 U.S. Treasuries $ 109,685 $ (118) $ — $ — $ 109,685 $ (118) U.S. agency securities - excluding mortgage-backed securities 150,827 (3,448) — — 150,827 (3,448) Residential mortgage-backed securities: Government agency mortgage-backed securities 1,140,512 (7,921) 72 — 1,140,584 (7,921) Government agency collateralized mortgage obligation 834,135 (6,920) 149,922 (305) 984,057 (7,225) Private-label collateralized mortgage obligation — — 699 (22) 699 (22) Commercial mortgage-backed securities: Government agency mortgage-backed securities 159,881 (1,306) — — 159,881 (1,306) Government agency collateralized mortgage obligation 124,052 (168) — — 124,052 (168) Private-label collateralized mortgage obligation 35,539 (295) 7,839 (128) 43,378 (423) Municipal bonds: Tax-exempt 325,553 (2,064) — — 325,553 (2,064) Taxable 222,587 (1,703) — — 222,587 (1,703) Asset backed securities: Government sponsored student loan pools 63,415 (85) 58,513 (458) 121,928 (543) $ 3,166,186 $ (24,028) $ 217,045 $ (913) $ 3,383,231 $ (24,941) Available-for-sale securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) December 31, 2020 Residential mortgage-backed securities: Government agency mortgage-backed securities $ 5,165 $ (55) $ — $ — $ 5,165 $ (55) Government agency collateralized mortgage obligation 120,912 (172) 56,976 (126) 177,888 (298) Private-label collateralized mortgage obligation 290 (7) 9,950 (249) 10,240 (256) Asset backed securities: Government sponsored student loan pools — — 240,825 (3,149) 240,825 (3,149) $ 126,367 $ (234) $ 307,751 $ (3,524) $ 434,118 $ (3,758) |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities as of the periods presented by contractual maturity are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the following table, the entire outstanding balance of residential and commercial mortgage-backed securities is categorized based on the final maturity date. June 30, December 31, Amortized Fair Amortized Fair (Dollars in thousands) Available-for-sale securities Within one year $ — $ — $ — $ — After one year through five years 3,032 2,951 — — After five years through ten years 832,483 833,641 14,021 15,694 After ten years 5,318,871 5,340,186 884,730 923,321 Total $ 6,154,386 $ 6,176,778 $ 898,751 $ 939,015 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans | A summary of loans as of the periods presented are as follows: June 30, December 31, (Dollars in thousands) Real estate loans: One-to-four family $ 144,247 $ 187,855 Multi-family 67,704 77,126 Commercial 272,948 301,901 Construction 5,481 6,272 Commercial and industrial 204,279 78,909 Reverse mortgage and other 1,364 1,495 Mortgage warehouse 49,897 97,903 Total gross loans held-for-investment 745,920 751,461 Deferred fees, net 1,151 2,206 Total loans held-for-investment 747,071 753,667 Allowance for loan losses (6,916) (6,916) Total loans held-for-investment, net $ 740,155 $ 746,751 Total loans held-for-sale (1) $ 748,577 $ 865,961 ________________________ (1) Loans held-for-sale are comprised entirely of mortgage warehouse loans for all periods presented. |
Schedule of Allowance for Loan Losses | The following tables present the allocation of the allowance for loan losses, as well as the activity in the allowance by loan class, and recorded investment in loans held-for-investment as of and for the periods presented: Three Months Ended June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, March 31, 2021 $ 1,634 $ 828 $ 3,251 $ 493 $ 360 $ 18 $ 332 $ 6,916 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision for loan losses (375) (85) (313) 19 885 (7) (124) — Balance, June 30, 2021 $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Three Months Ended June 30, 2020 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, March 31, 2020 $ 1,971 $ 689 $ 2,957 $ 258 $ 426 $ 39 $ 218 $ 6,558 Charge-offs (17) — — — — — — (17) Recoveries — — — — — — — — Provision for loan losses (440) 133 (1,010) 760 337 1 441 222 Balance, June 30, 2020 $ 1,514 $ 822 $ 1,947 $ 1,018 $ 763 $ 40 $ 659 $ 6,763 Six Months Ended June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2020 $ 1,245 $ 878 $ 1,810 $ 590 $ 1,931 $ 39 $ 423 $ 6,916 Charge-offs — — — — — — — — Recoveries — — — — — — — — Provision for loan losses 14 (135) 1,128 (78) (686) (28) (215) — Balance, June 30, 2021 $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Six Months Ended June 30, 2020 One-to Multi- Commercial Construction Commercial and Reverse Mortgage Total (Dollars in thousands) Balance, December 31, 2019 $ 2,051 $ 653 $ 2,791 $ 96 $ 312 $ 38 $ 250 $ 6,191 Charge-offs (17) — — — — — — (17) Recoveries — — — — — — — — Provision for loan losses (520) 169 (844) 922 451 2 409 589 Balance, June 30, 2020 $ 1,514 $ 822 $ 1,947 $ 1,018 $ 763 $ 40 $ 659 $ 6,763 June 30, 2021 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ — $ — $ 11 General portfolio allocation 1,248 743 2,938 512 1,245 11 208 6,905 Total allowance for loan losses $ 1,259 $ 743 $ 2,938 $ 512 $ 1,245 $ 11 $ 208 $ 6,916 Loans evaluated for impairment: Specifically evaluated $ 7,302 $ — $ 9,941 $ — $ 199 $ 884 $ — $ 18,326 Collectively evaluated 136,945 67,704 263,007 5,481 204,080 480 49,897 727,594 Total gross loans held-for-investment $ 144,247 $ 67,704 $ 272,948 $ 5,481 $ 204,279 $ 1,364 $ 49,897 $ 745,920 December 31, 2020 One-to Multi- Commercial Construction Commercial Reverse Mortgage Total (Dollars in thousands) Amount of allowance attributed to: Specifically evaluated impaired loans $ 11 $ — $ — $ — $ — $ 29 $ — $ 40 General portfolio allocation 1,234 878 1,810 590 1,931 10 423 6,876 Total allowance for loan losses $ 1,245 $ 878 $ 1,810 $ 590 $ 1,931 $ 39 $ 423 $ 6,916 Loans evaluated for impairment: Specifically evaluated $ 5,780 $ — $ 9,722 $ — $ 274 $ 869 $ — $ 16,645 Collectively evaluated 182,075 77,126 292,179 6,272 78,635 626 97,903 734,816 Total gross loans held-for-investment $ 187,855 $ 77,126 $ 301,901 $ 6,272 $ 78,909 $ 1,495 $ 97,903 $ 751,461 |
Schedule of Investments in Impaired Loans | The following tables provide a summary of the Company’s investment in impaired loans as of and for the periods presented: June 30, 2021 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 7,958 $ 7,239 $ — Commercial 9,941 9,941 — Commercial and industrial 199 199 — Reverse mortgage and other 884 884 — 18,982 18,263 — With an allowance recorded: Real estate loans: One-to-four family 63 63 11 63 63 11 Total impaired loans $ 19,045 $ 18,326 $ 11 December 31, 2020 Unpaid Recorded Related (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 6,432 $ 5,716 $ — Commercial 9,723 9,722 — Commercial and industrial 274 274 — Reverse mortgage and other 523 523 — 16,952 16,235 — With an allowance recorded: Real estate loans: One-to-four family 64 64 11 Reverse mortgage and other 346 346 29 410 410 40 Total impaired loans $ 17,362 $ 16,645 $ 40 Three Months Ended June 30, 2021 2020 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 6,931 $ 63 $ 3,390 $ 71 Commercial 9,904 133 1,941 22 Commercial and industrial 212 4 2,043 31 Reverse mortgage and other 880 — 515 — 17,927 200 7,889 124 With an allowance recorded: Real estate loans: One-to-four family 365 2 65 2 Reverse mortgage and other — — 340 — 365 2 405 2 Total impaired loans $ 18,292 $ 202 $ 8,294 $ 126 Six Months Ended June 30, 2021 2020 Average Interest Average Interest (Dollars in thousands) With no related allowance recorded: Real estate loans: One-to-four family $ 5,955 $ 140 $ 3,560 $ 97 Commercial 9,849 261 1,941 43 Commercial and industrial 230 9 2,186 72 Reverse mortgage and other 748 — 513 — 16,782 410 8,200 212 With an allowance recorded: Real estate loans: One-to-four family 215 3 65 3 Reverse mortgage and other 129 — 340 — 344 3 405 3 Total impaired loans $ 17,126 $ 413 $ 8,605 $ 215 |
Schedule of Aging Analysis by Loan Class | The following tables present by loan class the aging analysis based on contractual terms, nonaccrual loans, and the Company’s recorded investment in loans held-for-investment as of the periods presented: June 30, 2021 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 2,202 $ 360 $ 5,047 $ 7,609 $ 136,638 $ 144,247 $ 6,624 $ — Multi-family 1,984 — — 1,984 65,720 67,704 — — Commercial — — — — 272,948 272,948 — — Construction — — — — 5,481 5,481 — — Commercial and industrial — — — — 204,279 204,279 — — Reverse mortgage and other — — — — 1,364 1,364 884 — Mortgage warehouse — — — — 49,897 49,897 — — Total gross loans held-for-investment $ 4,186 $ 360 $ 5,047 $ 9,593 $ 736,327 $ 745,920 $ 7,508 $ — December 31, 2020 30-59 60-89 Greater Total Current Total Nonaccruing Loans (Dollars in thousands) Real estate loans: One-to-four family $ 992 $ 85 $ 3,820 $ 4,897 $ 182,958 $ 187,855 $ 4,113 $ — Multi-family 206 — — 206 76,920 77,126 — — Commercial — — — — 301,901 301,901 — — Construction — — — — 6,272 6,272 — — Commercial and industrial — — — — 78,909 78,909 — — Reverse mortgage and other — — — — 1,495 1,495 869 — Mortgage warehouse — — — — 97,903 97,903 — — Total gross loans held-for-investment $ 1,198 $ 85 $ 3,820 $ 5,103 $ 746,358 $ 751,461 $ 4,982 $ — |
Schedule of Financing Receivable Credit Quality Indicators Description | The Company uses the following definitions for risk ratings: Pass : Loans in all classes that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Special mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Credits rated as loss are charged-off. Management has no expectation of the recovery of any payments in respect of credits rated as loss. |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present by portfolio class the Company’s internal risk grading system as well as certain other information concerning the credit quality of the Company’s recorded investment in loans held-for-investment as of the periods presented. No assets were classified as loss or doubtful during the periods presented. Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) June 30, 2021 Real estate loans: One-to-four family $ 136,208 $ 1,415 $ 6,624 $ — $ 144,247 Multi-family 67,704 — — — 67,704 Commercial 250,448 14,514 7,986 — 272,948 Construction 5,481 — — — 5,481 Commercial and industrial 204,080 — 199 — 204,279 Reverse mortgage and other 480 — 884 — 1,364 Mortgage warehouse 49,897 — — — 49,897 Total gross loans held-for-investment $ 714,298 $ 15,929 $ 15,693 $ — $ 745,920 Credit Risk Grades Pass Special Mention Substandard Doubtful Total (Dollars in thousands) December 31, 2020 Real estate loans: One-to-four family $ 180,458 $ 3,284 $ 4,113 $ — $ 187,855 Multi-family 77,126 — — — 77,126 Commercial 288,309 5,825 7,767 — 301,901 Construction 6,272 — — — 6,272 Commercial and industrial 78,635 — 274 — 78,909 Reverse mortgage and other 626 — 869 — 1,495 Mortgage warehouse 97,903 — — — 97,903 Total gross loans held-for-investment $ 729,329 $ 9,109 $ 13,023 $ — $ 751,461 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of FHLB Advances | The following table sets forth certain information on our FHLB advances during the period presented: Six Months Ended Year Ended (Dollars in thousands) Amount outstanding at period-end $ — $ — Weighted average interest rate at period-end — — Maximum month-end balance during the period $ — $ 360,000 Average balance outstanding during the period $ — $ 68,522 Weighted average interest rate during the period — 0.50 % |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments and Classification within Statement of Financial Condition | The table below presents the fair value of the Company’s derivative financial instruments as well as the classification within the consolidated statements of financial condition. June 30, December 31, Balance Sheet Fair Value Balance Sheet Fair Value (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor Derivative assets $ 22,889 Derivative assets $ 30,766 Cash flow hedge interest rate cap Derivative assets — Derivative assets — Fair value hedge interest rate swap Derivative assets 923 Derivative assets 338 Fair value hedge interest rate cap Derivative assets 15,642 Derivative assets — |
Schedule of Cumulative Basis Adjustments, Related Amortized Cost, and Effect of Fair Value Hedge Accounting | The following table presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of the periods presented. Carrying Amount Cumulative Amount of Fair June 30, December 31, June 30, December 31, (Dollars in thousands) Line Item in the Statement of Financial Condition of Hedged Item: Securities available-for-sale $ 696,769 $ 15,367 $ (923) $ (278) The following table presents the effect of fair value hedge accounting on the Company’s consolidated statements of operations for the periods presented. Location and Amount of Gain or (Loss) Three Months Ended June 30, 2021 2020 Interest income - Taxable securities Interest income - Tax-exempt securities Interest income - Taxable securities Interest income - Tax-exempt securities (Dollars in thousands) Total interest income presented in the statement of operations in which the effects of fair value hedges are recorded $ 8,324 $ 3,123 $ 4,123 $ 1,577 Effects of fair value hedging relationships Interest rate contracts: Hedged items $ 487 $ 743 $ — $ — Derivatives designated as hedging instruments (496) (743) — — Amount excluded from effectiveness testing recognized in earnings based on amortization approach — (454) — — Location and Amount of Gain or (Loss) Six Months Ended June 30, 2021 2020 Interest income - Taxable securities Interest income - Tax-exempt securities Interest income - Taxable securities Interest income - Tax-exempt securities (Dollars in thousands) Total interest income presented in the statement of operations in which the effects of fair value hedges are recorded $ 11,916 $ 4,818 $ 10,171 $ 1,625 Effects of fair value hedging relationships Interest rate contracts: Hedged items $ (585) $ — $ — $ — Derivatives designated as hedging instruments 557 — — — Amount excluded from effectiveness testing recognized in earnings based on amortization approach — (479) — — |
Schedule of Effects of Derivatives in Cash Flow and Fair Value Hedging Relationships on Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effects of derivatives in cash flow and fair value hedging relationships designated as hedging instruments on the Company’s OCI and consolidated statements of operations for the periods presented. Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Three Months Ended Three Months Ended 2021 2020 2021 2020 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ 305 $ 638 Interest income - Other interest earning assets $ 140 $ 350 Cash flow hedge interest rate floor 1,221 2,552 Interest income - Taxable securities 1,073 671 Cash flow hedge interest rate cap — (13) Interest expense - Subordinated debentures (101) (65) Fair value hedge interest rate cap (1) (8,998) — Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Six Months Ended Six Months Ended 2021 2020 2021 2020 (Dollars in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate floor $ (1,145) $ 6,734 Interest income - Other interest earning assets $ 276 $ 475 Cash flow hedge interest rate floor (4,579) 20,218 Interest income - Taxable securities 2,125 788 Cash flow hedge interest rate cap — (293) Interest expense - Subordinated debentures (200) (120) Fair value hedge interest rate cap (1) (8,623) — ________________________ (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in other comprehensive income. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Comparison of the federal statutory income tax rates to the Company’s effective income tax rates for the periods presented are as follows: Three Months Ended June 30, 2021 2020 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 4,396 21.0 % $ 1,531 21.0 % State tax, net of federal benefit 341 1.6 % 613 8.4 % Tax credits (16) (0.1) % (67) (0.9) % Tax-exempt income (405) (1.9) % (247) (3.4) % Excess tax benefit from stock-based compensation (4,046) (19.3) % (20) (0.3) % Other items, net (272) (1.3) % 16 0.2 % Actual tax (benefit) expense $ (2) 0.0 % $ 1,826 25.0 % Six Months Ended June 30, 2021 2020 Amount Rate Amount Rate (Dollars in thousands) Statutory federal tax $ 6,811 21.0 % $ 2,826 21.0 % State tax, net of federal benefit (110) (0.3) % 1,107 8.2 % Tax credits (57) (0.2) % (123) (0.9) % Tax-exempt income (752) (2.3) % (247) (1.8) % Excess tax benefit from stock-based compensation (7,049) (21.7) % (20) (0.2) % Other items, net (56) (0.2) % 57 0.4 % Actual tax (benefit) expense $ (1,213) (3.7) % $ 3,600 26.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Off-Balance Sheet Items | The Company’s commitments associated with outstanding letters of credit and commitments to extend credit expiring by period as of the date indicated are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. June 30, December 31, (Dollars in thousands) Unfunded lines of credit $ 100,394 $ 49,487 Letters of credit 425 133 Total credit extension commitments $ 100,819 $ 49,620 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of stock option activity as of June 30, 2021 and changes during the six months ended June 30, 2021 is presented below: Number of Weighted Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2021 595,303 $ 8.01 Granted 18,585 127.56 Exercised (335,956) 4.60 Forfeited or expired (6,932) 16.09 Outstanding at June 30, 2021 271,000 $ 14.03 6.6 years $ 25,491 Exercisable at June 30, 2021 135,427 $ 9.11 4.7 years $ 14,113 Vested or Expected to Vest at June 30, 2021 257,836 $ 19.77 6.5 years $ 24,363 |
Schedule of Status of Nonvested Restricted Stock Unit Awards and Changes | A summary of the status of the Company’s nonvested restricted stock unit awards as of June 30, 2021, and changes during the six months ended June 30, 2021, is presented below: Number of Shares Weighted-Average Nonvested at January 1, 2021 58,690 $ 15.61 Granted 31,788 $ 121.61 Vested (14,686) $ 14.60 Forfeited (2,999) $ 42.26 Nonvested at June 30, 2021 72,793 $ 61.00 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual capital amounts and ratios for the Company and the Bank as of June 30, 2021 and December 31, 2020, are presented in the following tables: Actual Minimum capital adequacy (1) To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2021 The Company Tier 1 leverage ratio $ 864,828 7.91 % $ 437,250 4.00 % N/A N/A Common equity tier 1 capital ratio 849,328 46.75 % 81,747 4.50 % N/A N/A Tier 1 risk-based capital ratio 864,828 47.61 % 108,995 6.00 % N/A N/A Total risk-based capital ratio 871,996 48.00 % 145,327 8.00 % N/A N/A The Bank Tier 1 leverage ratio 858,796 7.88 % 436,015 4.00 % $ 545,018 5.00 % Common equity tier 1 capital ratio 858,796 47.29 % 81,715 4.50 % 118,033 6.50 % Tier 1 risk-based capital ratio 858,796 47.29 % 108,953 6.00 % 145,271 8.00 % Total risk-based capital ratio 865,964 47.69 % 145,271 8.00 % 181,589 10.00 % Actual Minimum capital adequacy (1) To be well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 The Company Tier 1 leverage ratio $ 263,763 8.29 % $ 127,338 4.00 % N/A N/A Common equity tier 1 capital ratio 248,263 21.53 % 51,882 4.50 % N/A N/A Tier 1 risk-based capital ratio 263,763 22.88 % 69,176 6.00 % N/A N/A Total risk-based capital ratio 270,803 23.49 % 92,234 8.00 % N/A N/A The Bank Tier 1 leverage ratio 261,791 8.22 % 127,344 4.00 % $ 159,180 5.00 % Common equity tier 1 capital ratio 261,791 22.71 % 51,869 4.50 % 74,923 6.50 % Tier 1 risk-based capital ratio 261,791 22.71 % 69,159 6.00 % 92,212 8.00 % Total risk-based capital ratio 268,831 23.32 % 92,212 8.00 % 115,265 10.00 % ________________________ (1) Minimum capital adequacy for common equity tier 1 capital ratio, tier 1 risk-based capital ratio and total risk-based capital ratio excludes the capital conservation buffer. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | As of June 30, 2021 and December 31, 2020, assets and liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) June 30, 2021 Assets Trading securities $ 26,998 $ — $ — $ 26,998 Securities available-for-sale — 6,176,778 — 6,176,778 Derivative assets — 39,454 — 39,454 $ 26,998 $ 6,216,232 $ — $ 6,243,230 Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Assets Securities available-for-sale $ — $ 939,015 $ — $ 939,015 Derivative assets — 31,104 — 31,104 $ — $ 970,119 $ — $ 970,119 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | There were no assets measured at fair value on a nonrecurring basis as of June 30, 2021. As of December 31, 2020, assets measured at fair value on a non-recurring basis are summarized as follows: Fair Value Measurements Using Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Assets Impaired loans: Reverse mortgage $ — $ — $ 317 $ 317 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated: Fair Value Valuation Technique(s) Significant Range Weighted Average (1) (Dollars in thousands) December 31, 2020 Collateral-dependent impaired loans $ 317 Market comparable properties Marketability discount 10.0 % 10.0 % Selling cost 8.0 % 8.0 % ________________________ (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of Fair Value by Balance Sheet Grouping | The following tables present information about the Company’s assets and liabilities that are not measured at fair value in the consolidated statements of financial condition as of the dates presented: Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) June 30, 2021 Financial assets: Cash and due from banks $ 52,859 $ 52,859 $ — $ — $ 52,859 Interest earning deposits 4,415,458 4,415,458 — — 4,415,458 Loans held-for-sale 748,577 — 748,577 — 748,577 Loans held-for-investment, net 740,155 — — 741,916 741,916 Accrued interest receivable 24,505 248 7,546 16,711 24,505 Financial liabilities: Deposits $ 11,371,556 $ — $ 11,400,300 $ — $ 11,400,300 Subordinated debentures, net 15,838 — 15,437 — 15,437 Accrued interest payable 246 — 246 — 246 Carrying Fair Value Measurements Using Level 1 Level 2 Level 3 Total (Dollars in thousands) December 31, 2020 Financial assets: Cash and due from banks $ 16,405 $ 16,405 $ — $ — $ 16,405 Interest earning deposits 2,945,682 2,945,682 — — 2,945,682 Loans held-for-sale 865,961 — 865,961 — 865,961 Loans held-for-investment, net 746,751 — — 751,165 751,165 Accrued interest receivable 8,698 8 2,630 6,060 8,698 Financial liabilities: Deposits $ 5,248,026 $ — $ 5,458,900 $ — $ 5,458,900 Subordinated debentures, net 15,831 — 15,231 — 15,231 Accrued interest payable 260 — 260 — 260 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown below. Three Months Ended Six Months Ended 2021 2020 2021 2020 (In thousands, except per share data) Basic Net income $ 20,935 $ 5,466 $ 33,645 $ 9,859 Weighted average common shares outstanding 25,707 18,672 24,114 18,670 Basic earnings per common share $ 0.81 $ 0.29 $ 1.40 $ 0.53 Diluted Net income $ 20,935 $ 5,466 $ 33,645 $ 9,859 Weighted average common shares outstanding for basic earnings per common share 25,707 18,672 24,114 18,670 Add: Dilutive effects of stock-based awards 395 434 451 442 Average shares and dilutive potential common shares 26,102 19,106 24,565 19,112 Dilutive earnings per common share $ 0.80 $ 0.29 $ 1.37 $ 0.52 |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | Mar. 09, 2021 | Jan. 26, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Class of Stock [Line Items] | ||||||
Aggregate gross proceeds of stock offering | $ 144,005,000 | $ 423,540,000 | ||||
Aggregate net proceeds of stock offering | $ 567,545,000 | $ 0 | ||||
Follow-on Offering, including Over-Allotment Option | Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock sold during period (shares) | 4,563,493 | |||||
Offering price per share (USD per share) | $ 63 | |||||
Aggregate gross proceeds of stock offering | $ 287,500,000 | |||||
Aggregate net proceeds of stock offering | $ 272,400,000 | |||||
Over-Allotment Option | Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock sold during period (shares) | 595,238 | |||||
ATM Program | Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock sold during period (shares) | 2,793,826 | |||||
Offering price per share (USD per share) | $ 107.38 | $ 107.38 | ||||
Aggregate net proceeds of stock offering | $ 295,100,000 | |||||
Aggregate gross sales price | $ 300,000,000 |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | |||||
Trading securities, at fair value | $ 26,998,000 | $ 26,998,000 | $ 0 | ||
Investment securities pledged for borrowings | 0 | 0 | 0 | ||
Gross unrealized losses on securities in a continuous unrealized loss position | $ 24,941,000 | $ 24,941,000 | $ 3,758,000 | ||
Number of securities whose estimated fair value declined | security | 160 | 160 | 30 | ||
Decline in fair value from amortized cost (as a percent) | 0.73% | 0.73% | 0.86% | ||
Proceeds from sale of securities available-for-sale | $ 0 | $ 202,300,000 | $ 0 | $ 216,355,000 | |
Realized gain on available-for-sale securities | 3,500,000 | 4,700,000 | |||
Realized loss on available-for-sale securities | 900,000 | 900,000 | |||
Credit losses recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Securities - Reconciliation fro
Securities - Reconciliation from Amortized Cost to Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-sale securities | ||
Amortized Cost | $ 6,154,386 | $ 898,751 |
Gross Unrealized Gains | 47,333 | 44,022 |
Gross Unrealized Losses | (24,941) | (3,758) |
Fair Value | 6,176,778 | 939,015 |
U.S. Treasuries | ||
Available-for-sale securities | ||
Amortized Cost | 331,154 | |
Gross Unrealized Gains | 59 | |
Gross Unrealized Losses | (118) | |
Fair Value | 331,095 | |
U.S. agency securities - excluding mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 578,524 | |
Gross Unrealized Gains | 4,210 | |
Gross Unrealized Losses | (3,448) | |
Fair Value | 579,286 | |
Government agency mortgage-backed securities, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 1,327,557 | 5,701 |
Gross Unrealized Gains | 180 | 18 |
Gross Unrealized Losses | (7,921) | (55) |
Fair Value | 1,319,816 | 5,664 |
Government agency collateralized mortgage obligation, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 1,620,012 | 197,978 |
Gross Unrealized Gains | 875 | 371 |
Gross Unrealized Losses | (7,225) | (298) |
Fair Value | 1,613,662 | 198,051 |
Private-label collateralized mortgage obligation, Residential | ||
Available-for-sale securities | ||
Amortized Cost | 1,721 | 20,544 |
Gross Unrealized Gains | 23 | 399 |
Gross Unrealized Losses | (22) | (256) |
Fair Value | 1,722 | 20,687 |
Government agency mortgage-backed securities, Commercial | ||
Available-for-sale securities | ||
Amortized Cost | 291,814 | |
Gross Unrealized Gains | 430 | |
Gross Unrealized Losses | (1,306) | |
Fair Value | 290,938 | |
Government agency collateralized mortgage obligation, Commercial | ||
Available-for-sale securities | ||
Amortized Cost | 192,930 | |
Gross Unrealized Gains | 159 | |
Gross Unrealized Losses | (168) | |
Fair Value | 192,921 | |
Private-label collateralized mortgage obligation, Commercial | ||
Available-for-sale securities | ||
Amortized Cost | 233,145 | 164,214 |
Gross Unrealized Gains | 12,997 | 18,322 |
Gross Unrealized Losses | (423) | 0 |
Fair Value | 245,719 | 182,536 |
Tax-exempt | ||
Available-for-sale securities | ||
Amortized Cost | 979,706 | 246,159 |
Gross Unrealized Gains | 26,097 | 24,200 |
Gross Unrealized Losses | (2,064) | 0 |
Fair Value | 1,003,739 | 270,359 |
Taxable | ||
Available-for-sale securities | ||
Amortized Cost | 356,291 | 15,307 |
Gross Unrealized Gains | 1,901 | 695 |
Gross Unrealized Losses | (1,703) | 0 |
Fair Value | 356,489 | 16,002 |
Government sponsored student loan pools | ||
Available-for-sale securities | ||
Amortized Cost | 241,532 | 248,848 |
Gross Unrealized Gains | 402 | 17 |
Gross Unrealized Losses | (543) | (3,149) |
Fair Value | $ 241,391 | $ 245,716 |
Securities - Securities in Unre
Securities - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 Months | $ 3,166,186 | $ 126,367 |
12 Months or More | 217,045 | 307,751 |
Total | 3,383,231 | 434,118 |
Unrealized Losses | ||
Less than 12 Months | (24,028) | (234) |
12 Months or More | (913) | (3,524) |
Total | (24,941) | (3,758) |
U.S. Treasuries | ||
Fair Value | ||
Less than 12 Months | 109,685 | |
12 Months or More | 0 | |
Total | 109,685 | |
Unrealized Losses | ||
Less than 12 Months | (118) | |
12 Months or More | 0 | |
Total | (118) | |
U.S. agency securities - excluding mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 150,827 | |
12 Months or More | 0 | |
Total | 150,827 | |
Unrealized Losses | ||
Less than 12 Months | (3,448) | |
12 Months or More | 0 | |
Total | (3,448) | |
Government agency mortgage-backed securities, Residential | ||
Fair Value | ||
Less than 12 Months | 1,140,512 | 5,165 |
12 Months or More | 72 | 0 |
Total | 1,140,584 | 5,165 |
Unrealized Losses | ||
Less than 12 Months | (7,921) | (55) |
12 Months or More | 0 | 0 |
Total | (7,921) | (55) |
Government agency collateralized mortgage obligation, Residential | ||
Fair Value | ||
Less than 12 Months | 834,135 | 120,912 |
12 Months or More | 149,922 | 56,976 |
Total | 984,057 | 177,888 |
Unrealized Losses | ||
Less than 12 Months | (6,920) | (172) |
12 Months or More | (305) | (126) |
Total | (7,225) | (298) |
Private-label collateralized mortgage obligation, Residential | ||
Fair Value | ||
Less than 12 Months | 0 | 290 |
12 Months or More | 699 | 9,950 |
Total | 699 | 10,240 |
Unrealized Losses | ||
Less than 12 Months | 0 | (7) |
12 Months or More | (22) | (249) |
Total | (22) | (256) |
Government agency mortgage-backed securities, Commercial | ||
Fair Value | ||
Less than 12 Months | 159,881 | |
12 Months or More | 0 | |
Total | 159,881 | |
Unrealized Losses | ||
Less than 12 Months | (1,306) | |
12 Months or More | 0 | |
Total | (1,306) | |
Government agency collateralized mortgage obligation, Commercial | ||
Fair Value | ||
Less than 12 Months | 124,052 | |
12 Months or More | 0 | |
Total | 124,052 | |
Unrealized Losses | ||
Less than 12 Months | (168) | |
12 Months or More | 0 | |
Total | (168) | |
Private-label collateralized mortgage obligation, Commercial | ||
Fair Value | ||
Less than 12 Months | 35,539 | |
12 Months or More | 7,839 | |
Total | 43,378 | |
Unrealized Losses | ||
Less than 12 Months | (295) | |
12 Months or More | (128) | |
Total | (423) | |
Tax-exempt municipal bonds | ||
Fair Value | ||
Less than 12 Months | 325,553 | |
12 Months or More | 0 | |
Total | 325,553 | |
Unrealized Losses | ||
Less than 12 Months | (2,064) | |
12 Months or More | 0 | |
Total | (2,064) | |
Taxable municipal bonds | ||
Fair Value | ||
Less than 12 Months | 222,587 | |
12 Months or More | 0 | |
Total | 222,587 | |
Unrealized Losses | ||
Less than 12 Months | (1,703) | |
12 Months or More | 0 | |
Total | (1,703) | |
Government sponsored student loan pools | ||
Fair Value | ||
Less than 12 Months | 63,415 | 0 |
12 Months or More | 58,513 | 240,825 |
Total | 121,928 | 240,825 |
Unrealized Losses | ||
Less than 12 Months | (85) | 0 |
12 Months or More | (458) | (3,149) |
Total | $ (543) | $ (3,149) |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Within one year | $ 0 | $ 0 |
After one year through five years | 3,032 | 0 |
After five years through ten years | 832,483 | 14,021 |
After ten years | 5,318,871 | 884,730 |
Total | 6,154,386 | 898,751 |
Fair Value | ||
Within one year | 0 | 0 |
After one year through five years | 2,951 | 0 |
After five years through ten years | 833,641 | 15,694 |
After ten years | 5,340,186 | 923,321 |
Total | $ 6,176,778 | $ 939,015 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)contract | Jun. 30, 2020USD ($)contract | Jun. 30, 2021USD ($)contract | Jun. 30, 2020USD ($)contract | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans held-for-investment | $ 745,920,000 | $ 745,920,000 | $ 751,461,000 | ||
Gross Loans | 747,071,000 | 747,071,000 | 753,667,000 | ||
Accrued interest on loans held-for-investment | 3,100,000 | 3,100,000 | 2,700,000 | ||
Deferred fees, net | 1,151,000 | 1,151,000 | 2,206,000 | ||
Investment in TDRs | 1,400,000 | 1,400,000 | 1,500,000 | ||
Allowance allocated to investment in TDRs | $ 11,000 | $ 11,000 | 11,000 | ||
Loans modified as TDRs | contract | 0 | 0 | 0 | 0 | |
Loans modified as TDRs, subsequent default | contract | 0 | 0 | 0 | 0 | |
Provision for loan loss for TDRs that subsequently defaulted | $ 0 | $ 0 | $ 0 | $ 0 | |
Related party loans | 5,000,000 | 5,000,000 | 5,000,000 | ||
New loans advances | 2,000,000 | ||||
Decrease in balance of related party loans due to principal payments received | 2,000,000 | ||||
Payment Deferral | COVID-19 Related Modification | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan balance of loans still under modification | $ 23,400,000 | $ 23,400,000 | |||
Loan balance of loans still under modification (as a percent) | 3.10% | 3.10% | |||
Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans held-for-investment | $ 491,700,000 | $ 491,700,000 | 574,500,000 | ||
Commercial | Real estate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans held-for-investment | 272,948,000 | 272,948,000 | 301,901,000 | ||
SEN Leverage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans held-for-investment | 203,400,000 | 203,400,000 | 77,200,000 | ||
Mortgage warehouse | Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans held-for-investment | 49,897,000 | 49,897,000 | 97,903,000 | ||
Gross Loans | $ 798,500,000 | $ 798,500,000 | $ 963,900,000 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | $ 745,920 | $ 751,461 | ||||
Deferred fees, net | 1,151 | 2,206 | ||||
Total loans held-for-investment | 747,071 | 753,667 | ||||
Allowance for loan losses | (6,916) | $ (6,916) | (6,916) | $ (6,763) | $ (6,558) | $ (6,191) |
Total loans held-for-investment, net | 740,155 | 746,751 | ||||
Total loans held-for-sale | 748,577 | 865,961 | ||||
Residential | Mortgage warehouse | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 49,897 | 97,903 | ||||
Total loans held-for-investment | 798,500 | 963,900 | ||||
Allowance for loan losses | (208) | (332) | (423) | (659) | (218) | (250) |
Reverse mortgage and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 1,364 | 1,495 | ||||
Allowance for loan losses | (11) | (18) | (39) | (40) | (39) | (38) |
Real estate loans | Residential | One-to-four family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 144,247 | 187,855 | ||||
Allowance for loan losses | (1,259) | (1,634) | (1,245) | (1,514) | (1,971) | (2,051) |
Real estate loans | Residential | Multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 67,704 | 77,126 | ||||
Allowance for loan losses | (743) | (828) | (878) | (822) | (689) | (653) |
Real estate loans | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 272,948 | 301,901 | ||||
Allowance for loan losses | (2,938) | (3,251) | (1,810) | (1,947) | (2,957) | (2,791) |
Real estate loans | Commercial | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 5,481 | 6,272 | ||||
Allowance for loan losses | (512) | (493) | (590) | (1,018) | (258) | (96) |
Commercial and industrial | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross loans held-for-investment | 204,279 | 78,909 | ||||
Allowance for loan losses | $ (1,245) | $ (360) | $ (1,931) | $ (763) | $ (426) | $ (312) |
Loans - Allowance (Details)
Loans - Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 6,916 | $ 6,558 | $ 6,916 | $ 6,191 | |
Charge-offs | 0 | (17) | 0 | (17) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 222 | 0 | 589 | |
Ending balance | 6,916 | 6,763 | 6,916 | 6,763 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 11 | 11 | $ 40 | ||
General portfolio allocation | 6,905 | 6,905 | 6,876 | ||
Total allowance for loan losses | 6,916 | 6,763 | 6,916 | 6,763 | 6,916 |
Specifically evaluated | 18,326 | 18,326 | 16,645 | ||
Collectively evaluated | 727,594 | 727,594 | 734,816 | ||
Total gross loans held-for-investment | 745,920 | 745,920 | 751,461 | ||
Residential | One-to-four family | Real estate loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,634 | 1,971 | 1,245 | 2,051 | |
Charge-offs | 0 | (17) | 0 | (17) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (375) | (440) | 14 | (520) | |
Ending balance | 1,259 | 1,514 | 1,259 | 1,514 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 11 | 11 | 11 | ||
General portfolio allocation | 1,248 | 1,248 | 1,234 | ||
Total allowance for loan losses | 1,259 | 1,514 | 1,259 | 1,514 | 1,245 |
Specifically evaluated | 7,302 | 7,302 | 5,780 | ||
Collectively evaluated | 136,945 | 136,945 | 182,075 | ||
Total gross loans held-for-investment | 144,247 | 144,247 | 187,855 | ||
Residential | Multi-family | Real estate loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 828 | 689 | 878 | 653 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (85) | 133 | (135) | 169 | |
Ending balance | 743 | 822 | 743 | 822 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 0 | ||
General portfolio allocation | 743 | 743 | 878 | ||
Total allowance for loan losses | 743 | 822 | 743 | 822 | 878 |
Specifically evaluated | 0 | 0 | 0 | ||
Collectively evaluated | 67,704 | 67,704 | 77,126 | ||
Total gross loans held-for-investment | 67,704 | 67,704 | 77,126 | ||
Residential | Mortgage warehouse | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 332 | 218 | 423 | 250 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (124) | 441 | (215) | 409 | |
Ending balance | 208 | 659 | 208 | 659 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 0 | ||
General portfolio allocation | 208 | 208 | 423 | ||
Total allowance for loan losses | 208 | 659 | 208 | 659 | 423 |
Specifically evaluated | 0 | 0 | 0 | ||
Collectively evaluated | 49,897 | 49,897 | 97,903 | ||
Total gross loans held-for-investment | 49,897 | 49,897 | 97,903 | ||
Commercial | Real estate loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,251 | 2,957 | 1,810 | 2,791 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (313) | (1,010) | 1,128 | (844) | |
Ending balance | 2,938 | 1,947 | 2,938 | 1,947 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 0 | ||
General portfolio allocation | 2,938 | 2,938 | 1,810 | ||
Total allowance for loan losses | 2,938 | 1,947 | 2,938 | 1,947 | 1,810 |
Specifically evaluated | 9,941 | 9,941 | 9,722 | ||
Collectively evaluated | 263,007 | 263,007 | 292,179 | ||
Total gross loans held-for-investment | 272,948 | 272,948 | 301,901 | ||
Commercial | Construction | Real estate loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 493 | 258 | 590 | 96 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 19 | 760 | (78) | 922 | |
Ending balance | 512 | 1,018 | 512 | 1,018 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 0 | ||
General portfolio allocation | 512 | 512 | 590 | ||
Total allowance for loan losses | 512 | 1,018 | 512 | 1,018 | 590 |
Specifically evaluated | 0 | 0 | 0 | ||
Collectively evaluated | 5,481 | 5,481 | 6,272 | ||
Total gross loans held-for-investment | 5,481 | 5,481 | 6,272 | ||
Commercial and industrial | Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 360 | 426 | 1,931 | 312 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 885 | 337 | (686) | 451 | |
Ending balance | 1,245 | 763 | 1,245 | 763 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 0 | ||
General portfolio allocation | 1,245 | 1,245 | 1,931 | ||
Total allowance for loan losses | 1,245 | 763 | 1,245 | 763 | 1,931 |
Specifically evaluated | 199 | 199 | 274 | ||
Collectively evaluated | 204,080 | 204,080 | 78,635 | ||
Total gross loans held-for-investment | 204,279 | 204,279 | 78,909 | ||
Reverse mortgage and other | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 18 | 39 | 39 | 38 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (7) | 1 | (28) | 2 | |
Ending balance | 11 | 40 | 11 | 40 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Specifically evaluated impaired loans | 0 | 0 | 29 | ||
General portfolio allocation | 11 | 11 | 10 | ||
Total allowance for loan losses | 11 | $ 40 | 11 | $ 40 | 39 |
Specifically evaluated | 884 | 884 | 869 | ||
Collectively evaluated | 480 | 480 | 626 | ||
Total gross loans held-for-investment | $ 1,364 | $ 1,364 | $ 1,495 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 18,982 | $ 18,982 | $ 16,952 | ||
Impaired loans with no related allowance - Recorded Investment | 18,263 | 18,263 | 16,235 | ||
Impaired loans with related allowance - Unpaid Principal Balance | 63 | 63 | 410 | ||
Impaired loans with related allowance - Recorded Investment | 63 | 63 | 410 | ||
Impaired loans - Unpaid Principal Balance | 19,045 | 19,045 | 17,362 | ||
Impaired loans - Recorded Investment | 18,326 | 18,326 | 16,645 | ||
Impaired loans - Related Allowance | 11 | 11 | 40 | ||
Impaired loans with no related allowance - Average Recorded Investment | 17,927 | $ 7,889 | 16,782 | $ 8,200 | |
Impaired loans with no related allowance - Interest Income Recognized | 200 | 124 | 410 | 212 | |
Impaired loans with related allowance - Average Recorded Investment | 365 | 405 | 344 | 405 | |
Impaired loans with related allowance - Interest Income Recognized | 2 | 2 | 3 | 3 | |
Impaired loans - Average Recorded Investment | 18,292 | 8,294 | 17,126 | 8,605 | |
Impaired loans - Interest Income Recognized | 202 | 126 | 413 | 215 | |
Reverse mortgage and other | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with no related allowance - Unpaid Principal Balance | 884 | 884 | 523 | ||
Impaired loans with no related allowance - Recorded Investment | 884 | 884 | 523 | ||
Impaired loans with related allowance - Unpaid Principal Balance | 346 | ||||
Impaired loans with related allowance - Recorded Investment | 346 | ||||
Impaired loans - Related Allowance | 29 | ||||
Impaired loans with no related allowance - Average Recorded Investment | 880 | 515 | 748 | 513 | |
Impaired loans with no related allowance - Interest Income Recognized | 0 | 0 | 0 | 0 | |
Impaired loans with related allowance - Average Recorded Investment | 0 | 340 | 129 | 340 | |
Impaired loans with related allowance - Interest Income Recognized | 0 | 0 | 0 | 0 | |
Real estate loans | Residential | One-to-four family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with no related allowance - Unpaid Principal Balance | 7,958 | 7,958 | 6,432 | ||
Impaired loans with no related allowance - Recorded Investment | 7,239 | 7,239 | 5,716 | ||
Impaired loans with related allowance - Unpaid Principal Balance | 63 | 63 | 64 | ||
Impaired loans with related allowance - Recorded Investment | 63 | 63 | 64 | ||
Impaired loans - Related Allowance | 11 | 11 | 11 | ||
Impaired loans with no related allowance - Average Recorded Investment | 6,931 | 3,390 | 5,955 | 3,560 | |
Impaired loans with no related allowance - Interest Income Recognized | 63 | 71 | 140 | 97 | |
Impaired loans with related allowance - Average Recorded Investment | 365 | 65 | 215 | 65 | |
Impaired loans with related allowance - Interest Income Recognized | 2 | 2 | 3 | 3 | |
Real estate loans | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with no related allowance - Unpaid Principal Balance | 9,941 | 9,941 | 9,723 | ||
Impaired loans with no related allowance - Recorded Investment | 9,941 | 9,941 | 9,722 | ||
Impaired loans with no related allowance - Average Recorded Investment | 9,904 | 1,941 | 9,849 | 1,941 | |
Impaired loans with no related allowance - Interest Income Recognized | 133 | 22 | 261 | 43 | |
Commercial and industrial | Commercial and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with no related allowance - Unpaid Principal Balance | 199 | 199 | 274 | ||
Impaired loans with no related allowance - Recorded Investment | 199 | 199 | $ 274 | ||
Impaired loans with no related allowance - Average Recorded Investment | 212 | 2,043 | 230 | 2,186 | |
Impaired loans with no related allowance - Interest Income Recognized | $ 4 | $ 31 | $ 9 | $ 72 |
Loans - Aging Analysis (Details
Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 745,920 | $ 751,461 |
Nonaccruing | 7,508 | 4,982 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,186 | 1,198 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 360 | 85 |
Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,047 | 3,820 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,593 | 5,103 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 736,327 | 746,358 |
Residential | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,897 | 97,903 |
Nonaccruing | 0 | 0 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Residential | Mortgage warehouse | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,897 | 97,903 |
Reverse mortgage and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,364 | 1,495 |
Nonaccruing | 884 | 869 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Reverse mortgage and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,364 | 1,495 |
Real estate loans | Residential | One-to-four family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 144,247 | 187,855 |
Nonaccruing | 6,624 | 4,113 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Real estate loans | Residential | One-to-four family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,202 | 992 |
Real estate loans | Residential | One-to-four family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 360 | 85 |
Real estate loans | Residential | One-to-four family | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,047 | 3,820 |
Real estate loans | Residential | One-to-four family | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,609 | 4,897 |
Real estate loans | Residential | One-to-four family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 136,638 | 182,958 |
Real estate loans | Residential | Multi-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 67,704 | 77,126 |
Nonaccruing | 0 | 0 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Real estate loans | Residential | Multi-family | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,984 | 206 |
Real estate loans | Residential | Multi-family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | Multi-family | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | Multi-family | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,984 | 206 |
Real estate loans | Residential | Multi-family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 65,720 | 76,920 |
Real estate loans | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 272,948 | 301,901 |
Nonaccruing | 0 | 0 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Real estate loans | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 272,948 | 301,901 |
Real estate loans | Commercial | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,481 | 6,272 |
Nonaccruing | 0 | 0 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Real estate loans | Commercial | Construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,481 | 6,272 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 204,279 | 78,909 |
Nonaccruing | 0 | 0 |
Loans Receivable > 89 Days and Accruing | 0 | 0 |
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 204,279 | $ 78,909 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 745,920 | $ 751,461 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 714,298 | 729,329 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 15,929 | 9,109 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 15,693 | 13,023 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 49,897 | 97,903 |
Residential | Mortgage warehouse | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 49,897 | 97,903 |
Residential | Mortgage warehouse | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Residential | Mortgage warehouse | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,364 | 1,495 |
Reverse mortgage and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 480 | 626 |
Reverse mortgage and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Reverse mortgage and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 884 | 869 |
Reverse mortgage and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | One-to-four family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 144,247 | 187,855 |
Real estate loans | Residential | One-to-four family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 136,208 | 180,458 |
Real estate loans | Residential | One-to-four family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,415 | 3,284 |
Real estate loans | Residential | One-to-four family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,624 | 4,113 |
Real estate loans | Residential | One-to-four family | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | Multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 67,704 | 77,126 |
Real estate loans | Residential | Multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 67,704 | 77,126 |
Real estate loans | Residential | Multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | Multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Residential | Multi-family | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 272,948 | 301,901 |
Real estate loans | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 250,448 | 288,309 |
Real estate loans | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 14,514 | 5,825 |
Real estate loans | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 7,986 | 7,767 |
Real estate loans | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,481 | 6,272 |
Real estate loans | Commercial | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,481 | 6,272 |
Real estate loans | Commercial | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Real estate loans | Commercial | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 204,279 | 78,909 |
Commercial and industrial | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 204,080 | 78,635 |
Commercial and industrial | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Commercial and industrial | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 199 | 274 |
Commercial and industrial | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 0 | $ 0 |
FHLB Advances and Other Borro_3
FHLB Advances and Other Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at period-end | $ 0 | $ 0 |
Weighted average interest rate at period-end (as a percent) | 0.00% | 0.00% |
Maximum month-end balance during the period | $ 0 | $ 360,000 |
Average balance outstanding during the period | $ 0 | $ 68,522 |
Weighted average interest rate during the period (as a percent) | 0.00% | 0.50% |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Narrative (Details) | Jun. 30, 2021USD ($)bank | Dec. 31, 2020USD ($) |
Short-term Debt [Line Items] | ||
FHLB advances, maximum borrowing capacity in proportion to assets (as a percent) | 35.00% | 35.00% |
FHLB advances, collateral pledged | $ 1,200,000,000 | $ 1,500,000,000 |
FHLB advances, unused borrowing capacity | 730,200,000 | 893,000,000 |
Federal funds purchased, maximum borrowing capacity | $ 108,000,000 | |
Number of correspondent banks | bank | 2 | |
Federal funds purchased, amount outstanding | $ 0 | 0 |
Federal Reserve Bank Advances | ||
Short-term Debt [Line Items] | ||
FRB advances, collateral pledged | 6,200,000 | 6,300,000 |
FRB advances, current borrowing capacity | 5,000,000 | 4,800,000 |
FRB advances, amount outstanding | $ 0 | $ 0 |
Subordinated Debentures, Net -
Subordinated Debentures, Net - Narrative (Details) - Subordinated Debentures - USD ($) | Jul. 31, 2001 | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 31, 2005 |
Debt Instrument [Line Items] | ||||
Interest payments, deferment period | 5 years | |||
Outstanding principal balance | $ 15,800,000 | $ 15,800,000 | ||
Unamortized debt issuance costs | $ 100,000 | $ 100,000 | ||
Trust One | ||||
Debt Instrument [Line Items] | ||||
Minority interest (as a percent) | 3.00% | |||
Trust Two | ||||
Debt Instrument [Line Items] | ||||
Minority interest (as a percent) | 3.00% | |||
2001 Subordinated Debentures Maturing July 25, 2031 | Trust One | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 12,500,000 | |||
Debt, term | 6 months | |||
Effective interest rate (as a percent) | 3.98% | |||
Redemption price (as a percent) | 100.00% | |||
2001 Subordinated Debentures Maturing July 25, 2031 | Trust One | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 375.00% | 0.23% | ||
2005 Subordinated Debentures Maturing March 15, 2035 | Trust Two | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 3,000,000 | |||
Debt, term | 3 months | |||
Redemption price (as a percent) | 100.00% | |||
2005 Subordinated Debentures Maturing March 15, 2035 | Trust Two | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 0.12% | 185.00% | ||
Effective interest rate (as a percent) | 1.97% |
Derivative and Hedging Activi_3
Derivative and Hedging Activities - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)instrument | Dec. 31, 2012USD ($) | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cash collateral posted by the counterparty | $ 0.3 | ||||
Estimated net derivative gain included in OCI to be reclassified into earnings | $ 4.8 | ||||
Estimated time for net derivative gain included in OCI to be reclassified into earnings | 12 months | ||||
Interest Rate Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of derivative instruments | instrument | 2 | ||||
Derivative, notional amount | $ 14.3 | ||||
Interest Rate Floor | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of derivative instruments | instrument | 20 | ||||
Derivative, notional amount | $ 400 | ||||
Derivative, notional amount sold | $ 200 | ||||
Upfront fee paid to counterparty | $ 20.8 | ||||
Proceeds from sale of derivative | 13 | ||||
Gain on sale of derivatives | $ 8.4 | ||||
Recognition period for net gain on sale of derivative | 4 years 1 month 6 days | ||||
Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of derivative instruments | instrument | 26 | ||||
Derivative, notional amount | $ 552.8 | ||||
Upfront fee paid to counterparty | $ 24.7 | $ 2.5 | |||
Cap Agreement Expiring July 25, 2022 | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 12.5 | ||||
Cap Agreement Expiring March 15, 2022 | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 3 | ||||
Fed Funds Rate | Interest Rate Floor | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Floor interest rate (as a percent) | 2.50% | ||||
Fed Funds Rate | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Floor interest rate (as a percent) | 2.00% | ||||
London Interbank Offered Rate (LIBOR) | Interest Rate Floor | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Floor interest rate (as a percent) | 2.25% | ||||
London Interbank Offered Rate (LIBOR) | Cap Agreement Expiring July 25, 2022 | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cap interest rate (as a percent) | 0.75% | ||||
London Interbank Offered Rate (LIBOR) | Cap Agreement Expiring March 15, 2022 | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cap interest rate (as a percent) | 0.50% |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Fair Value by Balance Sheet Location (Details) - Derivative assets - Derivatives designated as hedging instruments - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Interest Rate Floor | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 22,889 | $ 30,766 |
Interest Rate Cap | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Interest Rate Cap | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15,642 | 0 |
Interest Rate Swap | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 923 | $ 338 |
Derivative and Hedging Activi_5
Derivative and Hedging Activities - Cumulative Amount of Fair Value Hedging Adjustments (Details) - Securities available-for-sale - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of the Hedged Asset (Liability) | $ 696,769 | $ 15,367 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) | $ (923) | $ (278) |
Derivative and Hedging Activi_6
Derivative and Hedging Activities - Amount of Gain (Loss) Recognized in OCI and Reclassified into Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | $ (8,074) | $ 2,731 | $ (15,534) | $ 26,197 |
Interest income - Other interest earning assets | 1,599 | 405 | 2,878 | 1,129 |
Interest income - Taxable securities | 8,324 | 4,123 | 11,916 | 10,171 |
Interest expense - Subordinated debentures | (252) | (267) | (497) | (573) |
Interest expense - FHLB advances | 0 | (44) | 0 | (271) |
Derivatives designated as hedging instruments | Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income - Other interest earning assets | 140 | 350 | 276 | 475 |
Interest income - Taxable securities | 1,073 | 671 | 2,125 | 788 |
Interest expense - Subordinated debentures | (101) | (65) | (200) | (120) |
Derivatives designated as hedging instruments | Cash flow hedge interest rate floor | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | 305 | 638 | (1,145) | 6,734 |
Derivatives designated as hedging instruments | Cash flow hedge interest rate floor | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | 1,221 | 2,552 | (4,579) | 20,218 |
Derivatives designated as hedging instruments | Interest Rate Cap | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | 0 | (13) | 0 | (293) |
Derivatives designated as hedging instruments | Interest Rate Cap | Fair Value Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | $ (8,998) | $ 0 | $ (8,623) | $ 0 |
Derivative and Hedging Activi_7
Derivative and Hedging Activities - Effect of Fair Value Hedge Accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income - Taxable securities | $ 8,324 | $ 4,123 | $ 11,916 | $ 10,171 |
Interest income - Tax-exempt securities | 3,123 | 1,577 | 4,818 | 1,625 |
Interest Rate Cap | Fair Value Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | (454) | 0 | (479) | 0 |
Interest Rate Cap | Fair Value Hedging | Interest income - Taxable securities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 487 | 0 | (585) | 0 |
Interest Rate Cap | Fair Value Hedging | Interest income - Tax-exempt securities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedged items | 743 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Interest Rate Cap | Fair Value Hedging | Interest income - Taxable securities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives designated as hedging instruments | (496) | 0 | 557 | 0 |
Derivatives designated as hedging instruments | Interest Rate Cap | Fair Value Hedging | Interest income - Tax-exempt securities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives designated as hedging instruments | $ (743) | $ 0 | $ 0 | $ 0 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amount | ||||
Statutory federal tax | $ 4,396 | $ 1,531 | $ 6,811 | $ 2,826 |
State tax, net of federal benefit | 341 | 613 | (110) | 1,107 |
Tax credits | (16) | (67) | (57) | (123) |
Tax-exempt income | (405) | (247) | (752) | (247) |
Excess tax benefit from stock-based compensation | (4,046) | (20) | (7,049) | (20) |
Other items, net | (272) | 16 | (56) | 57 |
Actual tax (benefit) expense | $ (2) | $ 1,826 | $ (1,213) | $ 3,600 |
Rate | ||||
Statutory federal tax (as a percent) | 21.00% | 21.00% | 21.00% | 21.00% |
State tax, net of federal benefit (as a percent) | 1.60% | 8.40% | (0.30%) | 8.20% |
Tax credits (as a percent) | (0.10%) | (0.90%) | (0.20%) | (0.90%) |
Tax-exempt income (as a percent) | (1.90%) | (3.40%) | (2.30%) | (1.80%) |
Excess tax benefit from stock-based compensation (as a percent) | (19.30%) | (0.30%) | (21.70%) | (0.20%) |
Other items, net (as a percent) | (1.30%) | 0.20% | (0.20%) | 0.40% |
Actual tax (benefit) expense (as a percent) | 0.00% | 25.00% | (3.70%) | 26.70% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ (2) | $ 1,826 | $ (1,213) | $ 3,600 | |
Effective tax rate (as a percent) | 0.00% | 25.00% | (3.70%) | 26.70% | |
Deferred tax liabilities | $ 6,400 | $ 6,400 | $ 15,400 |
Commitments and Contingencies -
Commitments and Contingencies - Off-Balance Sheet Items (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Allowance for commitments | $ 300 | $ 100 |
Total credit extension commitments | 100,819 | 49,620 |
Unfunded lines of credit | ||
Debt Instrument [Line Items] | ||
Total credit extension commitments | 100,394 | 49,487 |
Letters of credit | ||
Debt Instrument [Line Items] | ||
Total credit extension commitments | $ 425 | $ 133 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0.5 | $ 0.2 | $ 0.8 | $ 0.4 | |
Unrecognized stock-based compensation expense related to stock options | 1.3 | $ 1.3 | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period unrecognized expenses is expected to be recognized | 2 years 7 months 6 days | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period unrecognized expenses is expected to be recognized | 2 years 6 months | ||||
Unrecognized stock-based compensation expense | $ 3.4 | $ 3.4 | |||
2018 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (shares) | 1,596,753 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Compensation Plans (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Number of Options | |
Outstanding at beginning of period (shares) | shares | 595,303 |
Granted (shares) | shares | 18,585 |
Exercised (shares) | shares | (335,956) |
Forfeited or expired (shares) | shares | (6,932) |
Outstanding at end of period (shares) | shares | 271,000 |
Exercisable at end of period (shares) | shares | 135,427 |
Vested or Expected to Vest at end of period (shares) | shares | 257,836 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 8.01 |
Granted (USD per share) | $ / shares | 127.56 |
Exercised (USD per share) | $ / shares | 4.60 |
Forfeited or expired (USD per share) | $ / shares | 16.09 |
Outstanding at end of period (USD per share) | $ / shares | 14.03 |
Exercisable at end of period (USD per share) | $ / shares | 9.11 |
Vested or Expected to Vest at end of period (USD per share) | $ / shares | $ 19.77 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 6 years 7 months 6 days |
Exercisable at end of period | 4 years 8 months 12 days |
Vested or Expected to Vest at end of period | 6 years 6 months |
Aggregate Intrinsic Value (in thousands) | |
Outstanding at end of period | $ | $ 25,491 |
Exercisable at end of period | $ | 14,113 |
Vested or Expected to Vest at end of period | $ | $ 24,363 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (shares) | shares | 58,690 |
Granted (shares) | shares | 31,788 |
Vested (shares) | shares | (14,686) |
Forfeited (shares) | shares | (2,999) |
Ending balance (shares) | shares | 72,793 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (USD per share) | $ / shares | $ 15.61 |
Granted (USD per share) | $ / shares | 121.61 |
Vested (USD per share) | $ / shares | 14.60 |
Forfeited (USD per share) | $ / shares | 42.26 |
Ending balance (USD per share) | $ / shares | $ 61 |
Regulatory Capital - Summary (D
Regulatory Capital - Summary (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
The Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, amount | $ 864,828 | $ 263,763 |
Tier 1 leverage ratio (as a percent) | 0.0791 | 0.0829 |
Tier 1 leverage ratio, minimum capital adequacy, amount | $ 437,250 | $ 127,338 |
Tier 1 leverage ratio, minimum capital adequacy (as a percent) | 0.0400 | 0.0400 |
Common equity tier 1 capital ratio, amount | $ 849,328 | $ 248,263 |
Common equity tier 1 capital ratio (as a percent) | 0.4675 | 0.2153 |
Common equity tier 1 capital ratio, minimum capital adequacy, amount | $ 81,747 | $ 51,882 |
Common equity tier 1 capital ratio, minimum capital adequacy (as a percent) | 0.0450 | 0.0450 |
Tier 1 risk-based capital ratio, amount | $ 864,828 | $ 263,763 |
Tier 1 risk-based capital ratio (as a percent) | 0.4761 | 0.2288 |
Tier 1 risk-based capital ratio, minimum capital adequacy, amount | $ 108,995 | $ 69,176 |
Tier 1 risk-based capital ratio, minimum capital adequacy (as a percent) | 0.0600 | 0.0600 |
Total risk-based capital ratio, amount | $ 871,996 | $ 270,803 |
Total risk-based capital ratio (as a percent) | 0.4800 | 0.2349 |
Total risk-based capital ratio, minimum capital adequacy, amount | $ 145,327 | $ 92,234 |
Total risk-based capital ratio, minimum capital adequacy (as a percent) | 0.0800 | 0.0800 |
The Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio, amount | $ 858,796 | $ 261,791 |
Tier 1 leverage ratio (as a percent) | 0.0788 | 0.0822 |
Tier 1 leverage ratio, minimum capital adequacy, amount | $ 436,015 | $ 127,344 |
Tier 1 leverage ratio, minimum capital adequacy (as a percent) | 0.0400 | 0.0400 |
Tier 1 leverage ratio, to be well capitalized, amount | $ 545,018 | $ 159,180 |
Tier 1 leverage ratio, to be well capitalized (as a percent) | 0.0500 | 0.0500 |
Common equity tier 1 capital ratio, amount | $ 858,796 | $ 261,791 |
Common equity tier 1 capital ratio (as a percent) | 0.4729 | 0.2271 |
Common equity tier 1 capital ratio, minimum capital adequacy, amount | $ 81,715 | $ 51,869 |
Common equity tier 1 capital ratio, minimum capital adequacy (as a percent) | 0.0450 | 0.0450 |
Common equity tier 1 capital ratio, to be well capitalized, amount | $ 118,033 | $ 74,923 |
Common equity tier 1 capital ratio, to be well capitalized (as a percent) | 6.50% | 6.50% |
Tier 1 risk-based capital ratio, amount | $ 858,796 | $ 261,791 |
Tier 1 risk-based capital ratio (as a percent) | 0.4729 | 0.2271 |
Tier 1 risk-based capital ratio, minimum capital adequacy, amount | $ 108,953 | $ 69,159 |
Tier 1 risk-based capital ratio, minimum capital adequacy (as a percent) | 0.0600 | 0.0600 |
Tier 1 risk-based capital ratio, to be well capitalized, amount | $ 145,271 | $ 92,212 |
Tier 1 risk-based capital ratio, to be well capitalized (as a percent) | 0.0800 | 0.0800 |
Total risk-based capital ratio, amount | $ 865,964 | $ 268,831 |
Total risk-based capital ratio (as a percent) | 0.4769 | 0.2332 |
Total risk-based capital ratio, minimum capital adequacy, amount | $ 145,271 | $ 92,212 |
Total risk-based capital ratio, minimum capital adequacy (as a percent) | 0.0800 | 0.0800 |
Total risk-based capital ratio, to be well capitalized, amount | $ 181,589 | $ 115,265 |
Total risk-based capital ratio, to be well capitalized (as a percent) | 0.1000 | 0.1000 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Trading securities, at fair value | $ 26,998 | $ 0 |
Securities available-for-sale | 6,176,778 | 939,015 |
Derivative assets | 39,454 | 31,104 |
Recurring Basis | ||
Assets | ||
Trading securities, at fair value | 26,998 | |
Securities available-for-sale | 6,176,778 | 939,015 |
Derivative assets | 39,454 | 31,104 |
Total | 6,243,230 | 970,119 |
Recurring Basis | Level 1 | ||
Assets | ||
Trading securities, at fair value | 26,998 | |
Securities available-for-sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 26,998 | 0 |
Recurring Basis | Level 2 | ||
Assets | ||
Trading securities, at fair value | 0 | |
Securities available-for-sale | 6,176,778 | 939,015 |
Derivative assets | 39,454 | 31,104 |
Total | 6,216,232 | 970,119 |
Recurring Basis | Level 3 | ||
Assets | ||
Trading securities, at fair value | 0 | |
Securities available-for-sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value - Non-Recurring Basi
Fair Value - Non-Recurring Basis (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Impaired loans | $ 741,916,000 | $ 751,165,000 |
Level 1 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 3 | ||
Assets | ||
Impaired loans | 741,916,000 | 751,165,000 |
Level 3 | Reverse mortgage and other | ||
Assets | ||
Impaired loans | 317,000 | |
Non-recurring basis | Reverse mortgage and other | ||
Assets | ||
Impaired loans | $ 0 | 317,000 |
Non-recurring basis | Level 1 | Reverse mortgage and other | ||
Assets | ||
Impaired loans | 0 | |
Non-recurring basis | Level 2 | Reverse mortgage and other | ||
Assets | ||
Impaired loans | 0 | |
Non-recurring basis | Level 3 | Reverse mortgage and other | ||
Assets | ||
Impaired loans | $ 317,000 |
Fair Value - Valuation Methodol
Fair Value - Valuation Methodology and Unobservable Inputs (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)number |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ | $ 741,916 | $ 751,165 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ | $ 741,916 | $ 751,165 |
Collateral-Dependent Impaired Loans | Level 3 | Selling cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input (as a percent) | 0.080 | |
Collateral-Dependent Impaired Loans | Market comparable properties | Level 3 | Marketability discount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input (as a percent) | 0.100 | |
Collateral-Dependent Impaired Loans | Weighted Average | Level 3 | Selling cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input (as a percent) | 0.080 | |
Collateral-Dependent Impaired Loans | Weighted Average | Market comparable properties | Level 3 | Marketability discount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input (as a percent) | 0.100 | |
Reverse mortgage and other | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent impaired loans | $ | $ 317 |
Fair Value - Fair Value by Bala
Fair Value - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and due from banks, Carrying Amount | $ 52,859 | $ 16,405 |
Cash and due from banks, Fair Value | 52,859 | 16,405 |
Interest earning deposits, Carrying Amount | 4,415,458 | 2,945,682 |
Loans held-for-sale, Carrying Amount | 748,577 | 865,961 |
Loans held-for-sale, Fair Value | 748,577 | 865,961 |
Loans held-for-investment, net, Carrying Amount | 740,155 | 746,751 |
Loans held-for-investment, net, Fair Value | 741,916 | 751,165 |
Accrued interest receivable, Carrying Amount | 24,505 | 8,698 |
Accrued interest receivable, Fair Value | 24,505 | 8,698 |
Financial liabilities: | ||
Deposits, Carrying Amount | 11,371,556 | 5,248,026 |
Deposits, Fair Value | 11,400,300 | 5,458,900 |
Subordinated debentures, Carrying Amount | 15,838 | 15,831 |
Subordinated debentures, Fair Value | 15,437 | 15,231 |
Accrued interest payable, Carrying Amount | 246 | 260 |
Accrued interest payable, Fair Value | 246 | 260 |
Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 4,415,458 | 2,945,682 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 52,859 | 16,405 |
Loans held-for-sale, Fair Value | 0 | 0 |
Loans held-for-investment, net, Fair Value | 0 | 0 |
Accrued interest receivable, Fair Value | 248 | 8 |
Financial liabilities: | ||
Deposits, Fair Value | 0 | 0 |
Subordinated debentures, Fair Value | 0 | 0 |
Accrued interest payable, Fair Value | 0 | 0 |
Level 1 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 4,415,458 | 2,945,682 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Loans held-for-sale, Fair Value | 748,577 | 865,961 |
Loans held-for-investment, net, Fair Value | 0 | 0 |
Accrued interest receivable, Fair Value | 7,546 | 2,630 |
Financial liabilities: | ||
Deposits, Fair Value | 11,400,300 | 5,458,900 |
Subordinated debentures, Fair Value | 15,437 | 15,231 |
Accrued interest payable, Fair Value | 246 | 260 |
Level 2 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks, Fair Value | 0 | 0 |
Loans held-for-sale, Fair Value | 0 | 0 |
Loans held-for-investment, net, Fair Value | 741,916 | 751,165 |
Accrued interest receivable, Fair Value | 16,711 | 6,060 |
Financial liabilities: | ||
Deposits, Fair Value | 0 | 0 |
Subordinated debentures, Fair Value | 0 | 0 |
Accrued interest payable, Fair Value | 0 | 0 |
Level 3 | Interest earning deposits | ||
Financial assets: | ||
Cash and due from banks, Fair Value | $ 0 | $ 0 |
Earnings Per Share - Summary (D
Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic | ||||
Net income | $ 20,935 | $ 5,466 | $ 33,645 | $ 9,859 |
Weighted average common shares outstanding (shares) | 25,707 | 18,672 | 24,114 | 18,670 |
Basic earnings per common share (USD per share) | $ 0.81 | $ 0.29 | $ 1.40 | $ 0.53 |
Diluted | ||||
Net income | $ 20,935 | $ 5,466 | $ 33,645 | $ 9,859 |
Weighted average common shares outstanding for basic earnings per common share (shares) | 25,707 | 18,672 | 24,114 | 18,670 |
Add: Dilutive effects of assumed exercise of stock options (shares) | 395 | 434 | 451 | 442 |
Average shares and dilutive potential common shares (shares) | 26,102 | 19,106 | 24,565 | 19,112 |
Dilutive earnings per common share (USD per share) | $ 0.80 | $ 0.29 | $ 1.37 | $ 0.52 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Stock awards excluded from computation of diluted earnings per share (shares) | 44 | 238 | 44 | 237 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 04, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||
Gross proceeds | $ 144,005 | $ 423,540 | ||
Subsequent Event | Series A Non-Cumulative Perpetual Preferred Stock, Depositary Share | ||||
Subsequent Event [Line Items] | ||||
Stock issued and sold during period (shares) | 8,000,000 | |||
Liquidation preference (USD per share) | $ 25 | |||
Gross proceeds | $ 200,000 | |||
Net proceeds | $ 193,900 | |||
Subsequent Event | Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | ||||
Subsequent Event [Line Items] | ||||
Ownership interest per depositary share | 2.50% | |||
Preferred stock, fixed rate | 5.375% | |||
Preferred stock, par value (USD per share) | $ 0.01 | |||
Liquidation preference (USD per share) | $ 1,000 |