Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-38412 | ||
Entity Registrant Name | Bridgewater Bancshares Inc | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 26-0113412 | ||
Entity Address, Address Line One | 4450 Excelsior Boulevard, Suite 100 | ||
Entity Address, City or Town | St. Louis Park | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55416 | ||
City Area Code | 952 | ||
Local Phone Number | 893-6868 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | BWB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 28,126,875 | ||
Entity Public Float | $ 238,497,759 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001341317 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and Cash Equivalents | $ 160,675 | $ 31,935 |
Bank-Owned Certificates of Deposit | 2,860 | 2,654 |
Securities Available for Sale | 390,629 | 289,877 |
Loans, Net of Allowance for Loan Losses of $34,841 at December 31, 2020 and $22,526 at December 31, 2019 | 2,282,436 | 1,884,000 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 5,027 | 7,824 |
Premises and Equipment, Net | 50,987 | 27,628 |
Accrued Interest | 9,172 | 6,775 |
Goodwill | 2,626 | 2,626 |
Other Intangible Assets, Net | 670 | 861 |
Other Assets | 22,263 | 14,650 |
Total Assets | 2,927,345 | 2,268,830 |
Deposits: | ||
Noninterest Bearing | 671,903 | 447,509 |
Interest Bearing | 1,829,733 | 1,375,801 |
Total Deposits | 2,501,636 | 1,823,310 |
Notes Payable | 11,000 | 13,000 |
FHLB Advances | 57,500 | 136,500 |
Subordinated Debentures, Net of Issuance Costs | 73,739 | 24,733 |
Accrued Interest Payable | 1,615 | 1,982 |
Other Liabilities | 16,450 | 24,511 |
Total Liabilities | 2,661,940 | 2,024,036 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock- $0.01 par value Authorized 10,000,000; None Issued and Outstanding at December 31, 2020 and December 31, 2019 | ||
Common Stock- $0.01 par value Common Stock - Authorized 75,000,000; Issued and Outstanding 28,143,493 at December 31, 2020 and 28,973,572 at December 31, 2019 | 281 | 290 |
Additional Paid-In Capital | 103,714 | 112,093 |
Retained Earnings | 154,831 | 127,637 |
Accumulated Other Comprehensive Income | 6,579 | 4,774 |
Total Shareholders' Equity | 265,405 | 244,794 |
Total Liabilities and Shareholders' Equity | $ 2,927,345 | $ 2,268,830 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Allowance of loan loss | $ 34,841 | $ 22,526 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 28,143,493 | 28,973,572 |
Common stock, shares outstanding (in shares) | 28,143,493 | 28,973,572 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME | |||
Loans, Including Fees | $ 105,492 | $ 94,852 | $ 78,033 |
Investment Securities | 8,720 | 7,773 | 6,694 |
Other | 614 | 1,153 | 499 |
Total Interest Income | 114,826 | 103,778 | 85,226 |
INTEREST EXPENSE | |||
Deposits | 19,813 | 23,996 | 15,972 |
Notes Payable | 439 | 501 | 594 |
FHLB Advances | 3,390 | 3,407 | 1,718 |
Subordinated Debentures | 3,109 | 1,556 | 1,568 |
Federal Funds Purchased | 111 | 186 | 636 |
Total Interest Expense | 26,862 | 29,646 | 20,488 |
NET INTEREST INCOME | 87,964 | 74,132 | 64,738 |
Provision for Loan Losses | 12,750 | 2,700 | 3,575 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 75,214 | 71,432 | 61,163 |
NONINTEREST INCOME | |||
Customer Service Fees | 826 | 760 | 745 |
Net Gain (Loss) on Sales of Available for Sale Securities | 1,503 | 516 | (125) |
Net Gain (Loss) on Sales of Foreclosed Assets | 69 | (225) | |
Other Income | 3,510 | 2,481 | 2,148 |
Total Noninterest Income | 5,839 | 3,826 | 2,543 |
NONINTEREST EXPENSE | |||
Salaries and Employee Benefits | 25,568 | 22,076 | 18,620 |
Occupancy and Equipment | 3,258 | 3,085 | 2,351 |
Other Expense | 16,561 | 11,771 | 10,591 |
Total Noninterest Expense | 45,387 | 36,932 | 31,562 |
INCOME BEFORE INCOME TAXES | 35,666 | 38,326 | 32,144 |
Provision for Income Taxes | 8,472 | 6,923 | 5,224 |
NET INCOME | $ 27,194 | $ 31,403 | $ 26,920 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 0.95 | $ 1.07 | $ 0.93 |
Diluted (in dollars per share) | $ 0.93 | $ 1.05 | $ 0.91 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income | |||||||||||
Net Income | $ 4,979 | $ 7,174 | $ 7,598 | $ 7,443 | $ 8,571 | $ 7,805 | $ 8,009 | $ 7,018 | $ 27,194 | $ 31,403 | $ 26,920 |
Other Comprehensive Income (Loss): | |||||||||||
Unrealized Gains (Losses) on Available for Sale Securities | 6,394 | 9,514 | (3,804) | ||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | (3,185) | (962) | 9 | ||||||||
Reclassification Adjustment for (Gains) Losses Realized in Income | (924) | (525) | 125 | ||||||||
Income Tax Impact | (480) | (1,685) | 824 | ||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 1,805 | 6,342 | (2,846) | ||||||||
Comprehensive Income | $ 28,999 | $ 37,745 | $ 24,074 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common StockVoting Common Stock | Common StockNonvoting Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at the beginning at Dec. 31, 2017 | $ 208 | $ 38 | $ 66,324 | $ 69,508 | $ 1,084 | $ 137,162 |
Balance at the beginning (in shares) at Dec. 31, 2017 | 20,834,001 | 3,845,860 | ||||
Stock-based Compensation | 799 | 799 | ||||
Comprehensive Income (Loss) | 26,920 | (2,846) | 24,074 | |||
Issuance of Common Stock, Net of Issuance Costs | $ 54 | 58,803 | 58,857 | |||
Issuance of Common Stock, Net of Issuance Costs (in shares) | 5,379,513 | |||||
Conversion of Non-voting Stock to Voting Stock | $ 38 | $ (38) | ||||
Conversion of Non-voting Stock to Voting Stock (in shares) | 3,845,860 | (3,845,860) | ||||
Stock Options Exercised | $ 1 | 105 | 106 | |||
Stock Options Exercised (in shares) | 37,900 | |||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act to Retained Earnings | (194) | 194 | ||||
Balance at the end at Dec. 31, 2018 | $ 301 | 126,031 | 96,234 | (1,568) | 220,998 | |
Balance at the end (in shares) at Dec. 31, 2018 | 30,097,274 | |||||
Stock-based Compensation | 752 | 752 | ||||
Comprehensive Income (Loss) | 31,403 | 6,342 | 37,745 | |||
Stock Options Exercised | $ 1 | 257 | $ 258 | |||
Stock Options Exercised (in shares) | 74,850 | 74,850 | ||||
Stock Repurchases | $ (13) | (14,946) | $ (14,959) | |||
Stock Repurchases (in shares) | (1,331,512) | |||||
Issuance of Restricted Stock Awards | $ 1 | (1) | ||||
Issuance of Restricted Stock Awards (in shares) | 132,960 | |||||
Balance at the end at Dec. 31, 2019 | $ 290 | 112,093 | 127,637 | 4,774 | 244,794 | |
Balance at the end (in shares) at Dec. 31, 2019 | 28,973,572 | |||||
Stock-based Compensation | 1,668 | 1,668 | ||||
Stock-based Compensation (in shares) | 29,050 | |||||
Comprehensive Income (Loss) | 27,194 | 1,805 | 28,999 | |||
Stock Options Exercised | $ 1 | 316 | $ 317 | |||
Stock Options Exercised (in shares) | 74,400 | 74,400 | ||||
Stock Repurchases | $ (10) | (10,324) | $ (10,334) | |||
Stock Repurchases (in shares) | (940,781) | |||||
Issuance of Restricted Stock Awards (in shares) | 18,641 | |||||
Forfeiture of Restricted Stock Awards (in shares) | (8,200) | |||||
Restricted Shares Withheld for Taxes | (39) | (39) | ||||
Restricted Shares Withheld for Taxes (in shares) | (3,189) | |||||
Balance at the end at Dec. 31, 2020 | $ 281 | $ 103,714 | $ 154,831 | $ 6,579 | $ 265,405 | |
Balance at the end (in shares) at Dec. 31, 2020 | 28,143,493 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 27,194 | $ 31,403 | $ 26,920 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||
Net Amortization on Securities Available for Sale | 2,691 | 2,523 | 3,028 |
Net (Gain) Loss on Sales of Securities Available for Sale | (1,503) | (516) | 125 |
Provision for Loan Losses | 12,750 | 2,700 | 3,575 |
Depreciation and Amortization of Premises and Equipment | 1,206 | 1,008 | 761 |
Loss on Sale of Premises and Equipment | 2 | 9 | |
Amortization of Other Intangible Assets | 191 | 191 | 191 |
Amortization of Subordinated Debt Issuance Costs | 223 | 103 | 103 |
Net (Gain) Loss on Sale of Foreclosed Assets | (69) | 225 | |
Stock-based Compensation | 1,668 | 752 | 799 |
Deferred Income Taxes | (2,590) | (747) | (1,298) |
Changes in Operating Assets and Liabilities: | |||
Accrued Interest Receivable and Other Assets | (5,121) | 529 | (7,627) |
Accrued Interest Payable and Other Liabilities | (13,692) | 1,641 | 2,606 |
Net Cash Provided by Operating Activities | 23,019 | 39,527 | 29,408 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
(Increase) Decrease in Bank-owned Certificates of Deposit | (206) | 651 | (233) |
Proceeds from Sales of Securities Available for Sale | 40,862 | 42,864 | 24,684 |
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale | 32,577 | 41,118 | 22,965 |
Purchases of Securities Available for Sale | (170,488) | (98,817) | (78,368) |
Proceeds from Sale of Premises and Equipment | 1 | ||
Net Increase in Loans | (411,320) | (247,573) | (317,453) |
Net (Increase) Decrease in FHLB Stock | 2,797 | (210) | (2,467) |
Purchases of Premises and Equipment | (24,688) | (15,572) | (3,720) |
Proceeds from Sales of Foreclosed Assets | 134 | 1,327 | 356 |
Net Cash Used in Investing Activities | (530,332) | (276,211) | (354,236) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Increase in Deposits | 678,326 | 262,376 | 221,584 |
Net Decrease in Federal Funds Purchased | (18,000) | (5,000) | |
Principal Payments on Notes Payable | (2,000) | (2,000) | (2,000) |
Proceeds from FHLB Advances | 100,000 | 42,500 | 70,000 |
Principal Payments on FHLB Advances | (179,000) | (30,000) | (14,000) |
Issuance of Subordinated Debt, Net of Issuance Costs | 48,783 | ||
Stock Options Exercised | 317 | 258 | 106 |
Issuance of Common Stock | 58,857 | ||
Stock Repurchases | (10,334) | (14,959) | |
Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards | (39) | ||
Net Cash Provided by Financing Activities | 636,053 | 240,175 | 329,547 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 128,740 | 3,491 | 4,719 |
Cash and Cash Equivalents Beginning | 31,935 | 28,444 | 23,725 |
Cash and Cash Equivalents Ending | 160,675 | 31,935 | 28,444 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Cash Paid for Interest | 27,004 | 29,367 | 19,987 |
Cash Paid for Income Taxes | 10,723 | 7,625 | $ 7,865 |
Loans Transferred to Foreclosed Assets | 134 | 1,258 | |
Premises and Equipment Transferred to Other Assets | $ 121 | ||
Net Investment Securities Purchased but Not Settled | $ 14,673 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Description of the Business and Summary of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Note 1: Description of the Business and Summary of Significant Accounting Policies Organization Bridgewater Bancshares, Inc. (the “Company”) is a financial holding company headquartered in St. Louis Park, Minnesota, whose operations consist of the ownership of its wholly-owned subsidiaries, Bridgewater Bank (the “Bank”) and Bridgewater Risk Management, Inc. The Bank commenced operations in 2005 and provides retail and commercial loan and deposit services, principally to customers within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area. In 2008, the Bank formed BWB Holdings, LLC, a wholly owned subsidiary of the Bank, for the purpose of holding repossessed property. In 2018, the Bank formed Bridgewater Investment Management, Inc., a wholly owned subsidiary of the Bank, for the purpose of holding certain municipal securities and to engage in municipal lending activities. Bridgewater Risk Management, Inc. was incorporated in December 2016 as a wholly-owned insurance company subsidiary of the Company. It insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. Bridgewater Risk Management pools resources with several other insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. Principles of Consolidation The consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Information available which could affect judgements includes, but is not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19 pandemic related changes, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, calculation of deferred tax assets, fair value of financial instruments, and investment securities impairment. Emerging Growth Company The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the SEC on March 13, 2018; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, or the Exchange Act; or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on these exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Cash and Cash Equivalents For purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, both interest bearing and noninterest bearing balances due from banks and federal funds sold, all of which mature within 90 days. Cash flows from loans and deposits are reported net. Bank-Owned Certificates of Deposit Bank-owned certificates of deposit mature within five years and are carried at cost. Securities Available for Sale Debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Declines in the fair value of individual available for sale securities below their cost that are other than temporary result in write-downs of the individual securities to the fair value. The Company monitors the investment securities portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other than temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the Company’s intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The ability to hold is determined by whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other than temporary is recorded as a loss in noninterest income. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid balances adjusted for charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans, and premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. The accrual of interest on all loans is discounted if the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income and amortization of related deferred loan fees or costs is suspended. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. The cash-basis is used when a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments are applied to loan principal. The determination of ultimate collectability is supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has demonstrated a period of sustained performance, and future payments are reasonably assured. A sustained period of repayment performance generally would be a minimum of six months. Allowance for Loan Losses The allowance for loan losses (the “allowance”) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Loan losses are charged-off against the allowance when the Company determines all or a portion of the loan balance to be uncollectible. Cash received on previously charged-off amounts is recorded as a recovery to the allowance. The allowance consists of three primary components, general reserves, specific reserves related to impaired loans, and unallocated reserves. The general component covers nonimpaired loans and is based on historical losses adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is adjusted for economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions, including uncertainty related to effects of the COVID-19 pandemic; industry conditions; COVID-19 pandemic related modifications; and effects of change in credit concentrations. These factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. An impaired loan is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price, or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. Allowance allocations other than general and specific reserves are included in the unallocated portion. While allocations are made for loans and leases based upon historical loss analysis, the unallocated portion is designed to cover the uncertainty of how current economic conditions and other uncertainties may impact the existing loan portfolio. Factors to consider include global, national and state economic conditions such as changes in unemployment rates and productivity, geopolitical tensions, monetary and fiscal policy uncertainty, political gridlock, and real estate market trends. The unallocated reserve addresses inherent probable losses not included elsewhere in the allowance for loan losses. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDRs are considered impaired and measured for impairment as described above in the calendar year of the restructuring. In subsequent years, a restructured loan may cease being classified as impaired if the loan was modified at a market rate and is performing according to the modified terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included with other nonaccrual loans. The Coronavirus Aid, Relief and Economic Security Act, or, CARES Act, signed into law on March 27, 2020, included provisions that provide temporary relief from TDR accounting for certain types of modifications. Under these provisions, modifications deemed to be COVID-19-related would not be considered a TDR if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. The termination of these provisions was extended, to the earlier of 60 days after the COVID-19 national emergency date or January 1, 2022, by the Consolidated Appropriations Act, 2021. The banking regulators issued similar guidance, which also clarified that a COVID-19-related modification should not be considered a TDR if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification was considered to be short-term. Modifications are first evaluated for eligibility under the CARES Act, then the interagency guidance if they do not qualify for the CARES Act relief. Modifications that are not eligible for either program continue to follow the Company’s established TDR policy. Additionally, loans with deferrals granted due to COVID-19 are not generally reported as past due or nonaccrual. The Company assigns risk ratings to all loans and periodically performs detailed internal reviews of all such loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into five major categories defined as follows: Pass: Watch: Substandard: Doubtful: Loss : The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial, Paycheck Protection Program, construction and land development, 1-4 family mortgage, multifamily, CRE owner occupied, CRE nonowner occupied, and consumer and other with risk characteristics described as follows: Commercial: Paycheck Protection Program: two Construction and Land Development: 1-4 Family Mortgage: Multifamily: CRE Owner Occupied: business cycles, unemployment and other key economic indicators, which could impact the cash flows of the business and their ability to make rental payments. Certain types of businesses also may require specialized facilities that can increase costs and may not be economically feasible to an alternative user, which could adversely impact the market value of the collateral. CRE Nonowner Occupied: Consumer and Other: Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions, and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators assess the adequacy of the allowance from time to time. The regulatory agencies may require adjustments to the allowance based on their judgement about information available at the time of their review and examinations. Off-Balance Sheet Instruments In the ordinary course of business, the Company has entered into off-balance sheet instruments including commitments to extend credit and unfunded commitments under lines of credit, standby letters of credit, and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they become payable. The Company maintains a separate allowance for off-balance sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance sheet commitments is included in other liabilities. Federal Home Loan Bank Stock The Bank is a member of FHLB Des Moines. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery at par value. Both cash and stock dividends are reported as income. Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or lease term for leasehold improvements. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance. Subsequent to foreclosure, valuations are periodically performed by management and the assets held for sale are carried at the lower of the new cost basis or fair value less cost to sell. This evaluation is inherently subjective and requires estimates that are susceptible to significant revisions as more information becomes available. Impairment losses on assets to be held and used are measured at the amount by which the carrying amount of a property exceeds its fair value. Costs relating to holding and improving assets are expensed. Revenues and expenses from operations are included in other noninterest income and expense on the income statement. Goodwill and Intangible Assets Intangible assets attributed to the value of core deposits and favorable lease terms are stated at cost less accumulated amortization and reported in other intangible assets in the consolidated balance sheets. Intangible assets are amortized on a straight-line basis over the estimated lives of the assets. The excess of purchase price over fair value of net assets acquired is recorded as goodwill and is not amortized. The Company evaluates whether goodwill and other intangible assets may be impaired at least annually and whenever events or changes in circumstances indicate it is more likely than not the fair value of the reporting unit or asset is less than its carrying amount. Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. Advertising Advertising costs are expensed as incurred. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. Under GAAP, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. In preparation of the income tax returns, tax positions are taken based on interpretation of federal and state income tax laws. Management periodically reviews and evaluates the status of uncertain tax positions and makes estimates of amounts ultimately due or owed. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. The Company recognizes both interest and penalties as a component of other noninterest expense. The amount of the uncertain tax positions was not deemed to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties for the years ended December 31, 2020, 2019 and 2018. The Company is no longer subject to federal or state tax examination by tax authorities for years ending before December 31, 2017. Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. These investments are included in other assets on the balance sheet, with any unfunded commitments included within other liabilities. The qualified affordable housing projects are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is recognized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. The historic tax credits are accounted for under the equity method, with the expense included within noninterest expense on the consolidated statements of income. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. Comprehensive Income (Loss) Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale and changes in the fair value of derivative instruments designated as a cash flow hedge, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). Derivative Financial Instruments The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings, specifically in noninterest income. The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. and international financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. The Company prepares written hedge documentation for all derivatives which are designed as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. For a cash flow hedge that is effective, the gain or loss on the derivative is reported as a component in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. To determine fair value, the Company uses third party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for trading or speculative purposes. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Hedge accounting discontinues on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. Stock-based Compensation The Company’s stock-based compensation plans provide for awards of stock options and restricted stock to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures are recognized as they occur. Compensating Balances The Bank is required to maintain average balances with the Federal Reserve Bank. The Bank has implemented a deposit reclassification program which allows the Bank to reclassify a portion of transaction accounts to nontransaction accounts for reserve purposes. The deposit reclassification program was provided by a third-party vendor, and has been approved by the Federal Reserve Bank. At December 31, 2020, and 2019, the Bank was subject to maintaining an average balance of $-0- Earnings per Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation using the treasury stock method. Segment Reporting All of the Company’s operations are considered by management to be one operating segment. Reclassifications Certain reclassifications have been made to the 2019 consolidated financial statements to conform to the 2020 classifications. Impact of Recently Adopted Accounting Guidance In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 201 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Earnings Per Share | Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation. For the years ended December 31, 2020, 2019 and 2018, 732,433, 303,000, and 130,000, respectively, of stock options, restricted stock awards and restricted stock units were excluded from the calculation because they were deemed to be antidilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Net Income Available to Common Shareholders $ 27,194 $ 31,403 $ 26,920 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,582,064 29,358,644 29,001,393 Dilutive Effect of Stock Compensation 588,156 638,132 434,821 Weighted Average Common Stock Outstanding (Dilutive) 29,170,220 29,996,776 29,436,214 Basic Earnings per Common Share $ 0.95 $ 1.07 $ 0.93 Diluted Earnings per Common Share 0.93 1.05 0.91 |
Bank-Owned Certificates of Depo
Bank-Owned Certificates of Deposit | 12 Months Ended |
Dec. 31, 2020 | |
Bank-Owned Certificates of Deposit | |
Bank-Owned Certificates of Deposit | Note 3: Bank-Owned Certificates of Deposit Certificates of deposit in other financial institutions by maturity are as follows: 2020 2019 Certificates of Deposit at Cost Maturing in: One Year or Less $ 980 $ 1,229 After One Year Through Five Years 1,880 1,425 $ 2,860 $ 2,654 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Securities | |
Securities | Note 4: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2020 and 2019: December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: Municipal Bonds 105,975 9,373 (336) 115,012 Mortgage-Backed Securities 123,395 2,029 (1,164) 124,260 Corporate Securities 71,116 1,240 (201) 72,155 SBA Securities 40,455 32 (380) 40,107 Asset-Backed Securities 38,135 976 (16) 39,095 Total Securities Available for Sale $ 379,076 $ 13,650 $ (2,097) $ 390,629 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 4,990 $ 8 $ — $ 4,998 Municipal Bonds 99,441 6,338 (36) 105,743 Mortgage-Backed Securities 64,312 697 (281) 64,728 Corporate Securities 49,674 633 (131) 50,176 SBA Securities 50,126 35 (602) 49,559 Asset-Backed Securities 14,673 — — 14,673 Total Securities Available for Sale $ 283,216 $ 7,711 $ (1,050) $ 289,877 The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 and 2019: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2020 Municipal Bonds $ 12,023 $ (329) $ 223 $ (7) $ 12,246 $ (336) Mortgage-Backed Securities 45,120 (1,163) 1,699 (1) 46,819 (1,164) Corporate Securities 23,643 (131) 2,430 (70) 26,073 (201) SBA Securities 3,288 (3) 28,193 (377) 31,481 (380) Asset-Backed Securities 2,471 (16) — — 2,471 (16) Total Securities Available for Sale $ 86,545 $ (1,642) $ 32,545 $ (455) $ 119,090 $ (2,097) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2019 Municipal Bonds $ 2,760 $ (23) $ 1,390 $ (13) $ 4,150 $ (36) Mortgage-Backed Securities 32,276 (242) 3,098 (39) 35,374 (281) Corporate Securities 8,350 (131) — — 8,350 (131) SBA Securities 11,907 (64) 31,036 (538) 42,943 (602) Total Securities Available for Sale $ 55,293 $ (460) $ 35,524 $ (590) $ 90,817 $ (1,050) At December 31, 2020, 150 debt securities had unrealized losses with aggregate depreciation of approximately 1.7% from the Company’s amortized cost basis. At December 31, 2019, 110 debt securities had unrealized losses with aggregate depreciation of approximately 1.1% from the Company’s amortized cost basis. These unrealized losses related principally to changes in interest rates and were not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of December 31, 2020. The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of December 31, 2020. Call date is used when a call of the debt security is expected, determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. December 31, 2020 Amortized Cost Fair Value Due in One Year or Less $ 6,949 $ 6,985 Due After One Year Through Five Years 58,476 60,244 Due After Five Years Through 10 Years 92,936 98,500 Due After 10 Years 18,730 21,438 Subtotal 177,091 187,167 Mortgage-Backed Securities 123,395 124,260 SBA Securities 40,455 40,107 Asset-Backed Securities 38,135 39,095 Totals $ 379,076 $ 390,629 As of December 31, 2020 and 2019, the securities portfolio was unencumbered. The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2020 and 2019: 2020 2019 2018 Proceeds From Sales of Securities $ 40,862 $ 42,864 $ 24,684 Gross Gains on Sales 1,592 774 290 Gross Losses on Sales (89) (258) (415) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Loans | Note 5: Loans The following table presents the components of the loan portfolio at December 31, 2020 and 2019: December 31, December 31, 2020 2019 Commercial $ 304,220 $ 276,035 Paycheck Protection Program 138,454 — Construction and Land Development 170,217 196,776 Real Estate Mortgage: 1-4 Family Mortgage 294,479 260,611 Multifamily 626,465 515,014 CRE Owner Occupied 75,604 66,584 CRE Nonowner Occupied 709,300 592,545 Total Real Estate Mortgage Loans 1,705,848 1,434,754 Consumer and Other 7,689 4,473 Total Loans, Gross 2,326,428 1,912,038 Allowance for Loan Losses (34,841) (22,526) Net Deferred Loan Fees (9,151) (5,512) Total Loans, Net $ 2,282,436 $ 1,884,000 The following table presents the activity in the allowance for loan losses, by segment, for the years ended December 31, 2020, 2019 and 2018: Paycheck Construction CRE CRE Protection and Land 1-4 Family Owner Nonowner Consumer Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Balance at January 1, 2018 $ 2,435 $ — $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 60 $ 585 $ 16,502 Provision for Loan Losses 448 — 632 242 1,474 (148) 785 31 111 3,575 Loans Charged-off (10) — (358) (21) — — — (32) — (421) Recoveries of Loans 25 — 285 59 — — — 6 — 375 Balance at December 31, 2018 $ 2,898 $ — $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 65 $ 696 $ 20,031 Provision for Loan Losses 312 — (250) 269 1,180 (16) 1,100 47 58 2,700 Loans Charged-off (160) — — (195) — — — (33) — (388) Recoveries of Loans 8 — 1 168 — — — 6 — 183 Balance at December 31, 2019 $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Provision for Loan Losses 2,984 70 289 1,223 3,693 360 4,019 134 (22) 12,750 Loans Charged-off (346) — — (144) — — — (27) — (517) Recoveries of Loans 7 — — 54 — 10 — 11 — 82 Balance at December 31, 2020 $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2020 and 2019: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Nonowner Consumer Allowance for Loan Losses at December 31, 2020 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 37 $ — $ — $ — $ — $ — $ — $ 13 $ — $ 50 Collectively Evaluated for Impairment 5,666 70 2,491 3,972 9,517 1,162 10,991 190 732 34,791 Totals $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Allowance for Loan Losses at December 31, 2019 Individually Evaluated for Impairment $ 31 $ — $ — $ — $ — $ — $ — $ 14 $ — $ 45 Collectively Evaluated for Impairment 3,027 — 2,202 2,839 5,824 792 6,972 71 754 22,481 Totals $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Nonowner Consumer Loans at December 31, 2020 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 239 $ — $ 156 $ 1,498 $ — $ 870 $ 12,388 $ 13 $ 15,164 Collectively Evaluated for Impairment 303,981 138,454 170,061 292,981 626,465 74,734 696,912 7,676 2,311,264 Totals $ 304,220 $ 138,454 $ 170,217 $ 294,479 $ 626,465 $ 75,604 $ 709,300 $ 7,689 $ 2,326,428 Loans at December 31, 2019 Individually Evaluated for Impairment $ 273 $ — $ 176 $ 1,059 $ — $ 236 $ — $ 14 $ 1,758 Collectively Evaluated for Impairment 275,762 — 196,600 259,552 515,014 66,348 592,545 4,459 1,910,280 Totals $ 276,035 $ — $ 196,776 $ 260,611 $ 515,014 $ 66,584 $ 592,545 $ 4,473 $ 1,912,038 The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 122 $ 122 $ — $ 167 $ 167 $ — Construction and Land Development 156 763 — 176 785 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 884 884 — 302 489 — 1st REM - Rentals 614 614 — 757 757 — CRE Owner Occupied 870 870 — 236 236 — CRE Nonowner Occupied 12,388 12,388 — — — — Totals 15,034 15,641 — 1,638 2,434 — Loans With An Allowance for Loan Losses: Commercial 117 120 37 106 109 31 Consumer and Other 13 13 13 14 14 14 Totals 130 133 50 120 123 45 Grand Totals $ 15,164 $ 15,774 $ 50 $ 1,758 $ 2,557 $ 45 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 145 $ 10 $ 188 $ 13 $ — $ — Construction and Land Development 165 — 189 — 212 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 824 42 326 9 158 9 1st REM - 1-4 Family — — — — 255 10 1st REM - Rentals 624 29 789 41 976 48 CRE Owner Occupied 891 15 240 12 225 13 CRE Nonowner Occupied 12,334 690 — — — — Consumer and Other — — — — 64 — Totals 14,983 786 1,732 75 1,890 80 Loans With An Allowance for Loan Losses: Commercial 122 2 109 1 8 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — — — 324 — Multifamily — — — — 65 3 CRE Owner Occupied — — — — 158 7 Consumer and Other 13 1 44 2 — — Totals 135 3 153 3 555 10 Grand Totals $ 15,118 $ 789 $ 1,885 $ 78 $ 2,445 $ 90 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, credit documentation, public information and current economic trends, among other factors. The process of analyzing loans for changes in risk ratings is ongoing through routine monitoring of the portfolio and annual internal credit reviews for credits meeting certain thresholds. The following tables present the risk category of loans by loan segment as of December 31, 2020 and 2019, based on the most recent analysis performed by management: December 31, 2020 Pass Watch Substandard Total Commercial $ 289,465 $ 14,516 $ 239 $ 304,220 Paycheck Protection Program 138,454 — — 138,454 Construction and Land Development 170,061 — 156 170,217 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 29,396 — 884 30,280 1st REM - 1-4 Family 41,239 703 — 41,942 LOCs and 2nd REM - Rentals 20,678 — — 20,678 1st REM - Rentals 200,965 — 614 201,579 Multifamily 626,465 — — 626,465 CRE Owner Occupied 74,734 — 870 75,604 CRE Nonowner Occupied 667,336 29,576 12,388 709,300 Consumer and Other 7,676 — 13 7,689 Totals $ 2,266,469 $ 44,795 $ 15,164 $ 2,326,428 December 31, 2019 Pass Watch Substandard Total Commercial $ 275,741 $ 21 $ 273 $ 276,035 Construction and Land Development 196,462 138 176 196,776 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 28,483 138 — 28,621 1st REM - 1-4 Family 36,370 124 177 36,671 LOCs and 2nd REM - Rentals 17,890 479 302 18,671 1st REM - Rentals 174,781 1,287 580 176,648 Multifamily 515,014 — — 515,014 CRE Owner Occupied 65,411 — 1,173 66,584 CRE Nonowner Occupied 589,457 3,088 — 592,545 Consumer and Other 4,459 — 14 4,473 Totals $ 1,904,068 $ 5,275 $ 2,695 $ 1,912,038 The following tables present the aging of the recorded investment in past due loans by loan segment as of December 31, 2020 and 2019: Accruing Interest 30-89 Days 90 Days or December 31, 2020 Current Past Due More Past Due Nonaccrual Total Commercial $ 304,211 $ 3 $ — $ 6 $ 304,220 Paycheck Protection Program 138,454 — — — 138,454 Construction and Land Development 170,061 — — 156 170,217 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,280 — — — 30,280 1st REM - 1-4 Family 41,942 — — — 41,942 LOCs and 2nd REM - Rentals 20,668 10 — — 20,678 1st REM - Rentals 201,579 — — — 201,579 Multifamily 626,465 — — — 626,465 CRE Owner Occupied 74,991 — — 613 75,604 CRE Nonowner Occupied 709,300 — — — 709,300 Consumer and Other 7,689 — — — 7,689 Totals $ 2,325,640 $ 13 $ — $ 775 $ 2,326,428 Accruing Interest 30-89 Days 90 Days or December 31, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 276,028 $ — $ — $ 7 $ 276,035 Construction and Land Development 196,600 — — 176 196,776 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 28,621 — — — 28,621 1st REM - 1-4 Family 36,671 — — — 36,671 LOCs and 2nd REM - Rentals 18,527 — — 144 18,671 1st REM - Rentals 176,114 400 — 134 176,648 Multifamily 515,014 — — — 515,014 CRE Owner Occupied 66,584 — — — 66,584 CRE Nonowner Occupied 592,545 — — — 592,545 Consumer and Other 4,470 3 — — 4,473 Totals $ 1,911,174 $ 403 $ — $ 461 $ 1,912,038 At December 31, 2020, there were three loans classified as troubled debt restructurings with a current outstanding balance of $421. In comparison, at December 31, 2019, there were three loans classified as troubled debt restructurings with an outstanding balance of $452. There were no new loans classified as troubled debt restructurings during the year ended December 31, 2020 and no loans classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during the year ended December 31, 2020. In response to the COVID-19 pandemic, the Company has developed programs for clients who are experiencing business and personal disruptions due to the COVID-19 pandemic pursuant to which the Company may provide loan payment deferrals or interest-only modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic will not be considered troubled debt restructurings. The following table presents a summary of active loan modifications made in response to the COVID-19 pandemic, by loan segment and modification type, as of December 31, 2020: Interest-Only Payment Deferral Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 5,212 9 $ — — $ 4,834 1 $ 10,046 10 Real Estate Mortgage: 1 - 4 Family Mortgage 48 1 — — — — 48 1 Multifamily 23,636 1 — — — — 23,636 1 CRE Owner Occupied — — 613 3 — — 613 3 CRE Nonowner Occupied 32,209 11 — — — — 32,209 11 Totals $ 61,105 22 $ 613 3 $ 4,834 1 $ 66,552 26 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Premises and Equipment | Note 6: Premises and Equipment Premises and equipment are summarized as follows for the years ended December 31, 2020 and 2019: Range of December 31, Useful Lives 2020 2019 Land N/A $ 5,174 $ 5,174 Building 15 - 39 Years 41,025 3,487 Leasehold Improvements 3 ‑ 10 Years 2,538 3,344 Furniture and Equipment 2 ‑ 5 Years 6,160 3,902 Construction in Progress N/A — 16,693 Subtotal 54,897 32,600 Accumulated Depreciation (3,910) (4,972) Totals $ 50,987 $ 27,628 Depreciation and amortization expense charged to noninterest expense for the years ended December 31, 2020, 2019 and 2018, totaled $1,206, $1,008 and $761, respectively. Construction in progress represents amounts paid for the construction of the Company’s new corporate headquarters building. The new corporate headquarters building was placed into service in the third quarter of 2020. Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2020, pertaining to banking premises in Bloomington, Downtown Minneapolis, St. Paul and Uptown Minneapolis (Drive-Up), total future minimum rent commitments under the leases are as follows: 2020 2021 $ 337 2022 328 2023 319 2024 325 2025 331 Thereafter 804 Total $ 2,444 Rent expense, including common area maintenance pertaining to banking premises for the years ended December 31, 2020, 2019 and 2018, totaled $1,178, $1,264 and $870, respectively. The Bloomington, Downtown Minneapolis and St. Paul leases each contain two consecutive options to extend the lease for a period of five years each. The Uptown Minneapolis (Drive-Up) contains one option to extend the lease for a period of five years . The monthly minimum rent payable will be at a market rate as reasonably determined by the lessor. The Greenwood location is leased pursuant to the terms of a non-cancelable lease agreement with Bridgewater Properties Greenwood, LLC, a related party through common ownership, in effect at December 31, 2020. The lease contains one option to extend the lease for a period of five years. Future minimum rent commitments under the operating lease are listed below. 2020 2021 $ 165 2022 171 2023 174 2024 178 2025 181 Thereafter 108 Total $ 977 The Company receives rents from the lease of office and retail space in its corporate headquarters building. Rental income is included in noninterest expense as an offset to rental expense. Future minimum rental income under these leases are listed below. 2020 2021 $ 434 2022 500 2023 506 2024 513 2025 521 Thereafter 1,218 Total $ 3,692 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets | |
Intangible Assets | Note 7: Intangible Assets The following table presents a summary of intangible assets at December 31, 2020 and 2019: December 31, 2020 2019 Core Deposit Intangible $ 1,093 $ 1,093 Favorable Lease 445 445 Subtotal 1,538 1,538 Accumulated Amortization (868) (677) Totals $ 670 $ 861 Amortization expense of intangible assets was $191 for the years ended December 31, 2020, 2019 and 2018. The following table presents the estimated future amortization of the core deposit intangible and favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2020. Core Deposit Favorable Intangible Lease 2021 $ 157 $ 34 2022 157 34 2023 65 34 2024 — 34 2025 — 34 Thereafter — 121 Totals $ 379 $ 291 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits. | |
Deposits | Note 8: Deposits The following table presents the composition of deposits at December 31, 2020 and 2019: December 31, 2020 2019 Transaction Deposits $ 1,038,193 $ 712,136 Savings and Money Market Deposits 657,617 516,785 Time Deposits 353,543 360,027 Brokered Deposits 452,283 234,362 Totals $ 2,501,636 $ 1,823,310 Brokered deposits contain brokered money market accounts of $159,665 and $2,443 as of December 31, 2020 and 2019, respectively. The following table presents the scheduled maturities of brokered and customer time deposits at December 31, 2020: 2020 Less than 1 Year $ 338,261 1 to 2 Years 51,455 2 to 3 Years 63,018 3 to 4 Years 84,964 4 to 5 Years 108,463 Totals $ 646,161 The aggregate amount of time deposits greater than $250 was approximately $96,102 and $118,318 at December 31, 2020 and 2019, respectively. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Notes Payable. | |
Notes Payable | Note 9: Notes Payable During 2016, the Company entered into a note payable with an unaffiliated financial institution that was secured by 100% of the stock of the Bank. The proceeds of the note were partially used to payoff existing notes payable. The note required interest payments monthly and principal payments of $500 quarterly. Interest was accrued at a variable rate equal to 1-month LIBOR plus 2.40% and matured in February 2021. The interest rate at December 31, 2020 and 2019, was 2.55% and 4.09%, respectively. The note contained several financial and reporting covenants. As of December 31, 2020 and 2019, the Company believes it was in compliance with all covenants. The unpaid principal balance of the note at December 31, 2020 and 2019, was $11,000 and $13,000, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 10: Derivative Instruments and Hedging Activities The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. The notional amount 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 agreements. Derivative financial instruments are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current earnings. Non-hedge Derivatives The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party or client owes the Company, and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the client or counterparty and therefore, the Company has no credit risk. The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 49,696 $ 2,701 $ 7,140 $ 150 Liabilities 49,696 (2,701) 7,140 (150) Total $ 99,392 $ — $ 14,280 $ — Cash Flow Hedging Derivatives For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company utilizes cash flow hedges to manage interest rate exposure for the brokered certificate of deposit, wholesale borrowing, and notes payable portfolios. During the next 12 months, the Company estimates that $868 will be reclassified to interest expense. The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of December 31, 2020 and 2019: 2020 2019 Notional Amount $ 111,000 $ 48,000 Weighted Average Pay Rate 1.26 % 1.89 % Weighted Average Receive Rate 0.22 % 2.25 % Weighted Average Maturity (Years) 3.95 3.53 Net Unrealized Gain (Loss) $ (3,410) $ (618) During 2020, the Company purchased interest rate caps, designated as cash flow hedges, of certain deposit liabilities, with notional amounts totaling $50,000. The interest rate caps require receipt of variable amounts from the counterparties when interest rates rise above the strike price in the contracts. An initial premium of $2,689 was paid up front for the caps executed in 2020. Amortization on the interest rate caps totaled $41 and was recorded as a component of interest expense on brokered deposits for the year ended December 31, 2020. The weighted average strike rate for outstanding interest rate caps was 0.75% at December 31, 2020. The following table presents a summary of the Company’s interest rate contracts as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 5,000 $ 56 $ 18,000 $ 134 Liabilities 106,000 (3,466) 30,000 (752) Interest rate cap agreements: Assets 50,000 2,834 — — The Company is party to collateral support agreements with certain derivative counterparties. These agreements require that the Company maintain collateral based on the fair values of derivative transactions. In the event of default by the Company, the counterparty would be entitled to the collateral. As of December 31, 2020 and 2019, the Company pledged cash collateral for the Company’s derivative contracts of $8,526 and $1,404, respectively. In addition, as of December 31, 2020, the Company's interest rate cap counterparties have pledged cash collateral to the Company of $2,700. The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the year ended December 31, 2020, 2019 and 2018: Year Ended December 31, (dollars in thousands) 2020 2019 2018 Derivatives in Location of Gain or Gain (Loss) Cash Flow Hedging (Loss) Reclassified Reclassified from Relationships from AOCI into Income AOCI into Earnings Interest rate swaps Interest expense $ (579) $ 9 $ — Interest rate caps Interest expense — — — No amounts were reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness for these derivatives during the years ended December 31, 2020, 2019 and 2018, and no amounts are expected to be reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness over the next twelve months. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Bank Advances and Other Borrowings | |
Federal Home Loan Bank Advances and Other Borrowings | Note 11: Federal Home Loan Bank Advances and Other Borrowings Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank’s with principal balances of $739,912 and $690,609 at December 31, 2020 and 2019, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available capacity under the agreement was $361,236 and $209,840 at December 31, 2020 and 2019, respectively. The following table presents FHLB advances, by maturity, at December 31, 2020 and 2019: 2020 2019 Weighted Weighted Average Total Average Total Rate Outstanding Rate Outstanding 2020 N/A $ — 1.76 % $ 10,000 2021 1.99 % 15,000 1.99 15,000 2022 N/A — 2.50 29,000 2023 N/A — 2.93 45,000 2024 1.66 22,500 2.20 27,500 2025 1.22 16,000 3.29 10,000 2026 0.78 4,000 N/A — Totals $ 57,500 $ 136,500 Federal Reserve Discount Window. At December 31, 2020 and 2019, the Company had the ability to draw additional borrowings of $76,830 and $113,164, respectively, from the Federal Reserve Bank of Minneapolis. The ability to draw borrowings is based on loan collateral pledged with principal balances of $120,692 and $159,568 as of December 31, 2020 and 2019, subject to the approval from the Board of Governors of the Federal Reserve System. There were no federal reserve borrowings outstanding as of December 31, 2020 and 2019. As part of the CARES Act, the Federal Reserve Bank offered secured borrowings to banks who originated PPP loans through the Paycheck Protection Program Liquidity Facility, or PPPLF. As of December 31, 2020, the Company had not pledged any PPP loans to borrow funds under this facility. The facility is available through June 30, 2021. Federal Funds Purchased. Federal funds purchased mature one business day from the transaction date. There were no federal funds purchased outstanding as of December 31, 2020 and 2019. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Debentures | |
Subordinated Debentures | Note 12: Subordinated Debentures On June 19, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain institutional accredited investors and qualified institutional buyers pursuant to which the Company sold and issued $50,000 in aggregate principal amount of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”). The 2030 Notes were issued by the Company to the purchasers at a price equal to 100% of their face amount. Issuance costs were $1,127 and have been netted against subordinated debt on the consolidated balance sheets. These costs are being amortized over five years, which represents the period from issuance to the first redemption date of July 1, 2025. Total amortization expense for the year ended December 31, 2020 was $120. There was no amortization expense for the years ended December 31, 2019 and 2018. On October 13, 2020, the Company completed an offer to exchange up to $50,000 total principal amount of the 2030 Notes for substantially identical subordinated notes registered under the Securities Act of 1933, in satisfaction of the Company’s obligations under a registration rights agreement entered into with the initial purchasers of the 2030 Notes. $47,000 of the $50,000 of the 2030 Notes were exchanged in the exchange offer. The 2030 Notes mature on July 1, 2030, with a fixed rate of 5.25% payable semi-annually for five years until July 1, 2025. Thereafter, the interest rate converts to a variable interest rate, reset quarterly, equal to the three-month term Secured Overnight Financing Rate, or SOFR, plus 513 basis points, and payments become payable quarterly in arrears until either the early redemption date or the maturity date. The Notes are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are redeemable by the Company, in whole or in part, on or after July 1, 2025, and at any time upon the occurrence of certain events. Any redemption by the Company would be at a redemption price equal to 100% of the outstanding principal amount of the 2030 Notes being redeemed, including any accrued and unpaid interest thereon. On July 12, 2017, the Company entered into a Subordinated Note Purchase Agreement with certain institutional accredited investors whereby the Company sold and issued $25,000 in aggregate principal amount of 5.875% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”). The 2027 Notes were issued by the Company to the purchasers at a price equal to 100% of their face amount. Issuance costs were $516 and have been netted against subordinated debt on the consolidated balance sheets. These costs are being amortized over five years, which represents the period from issuance to the first redemption date of July 15, 2022. Total amortization expense for the year ended December 31, 2020 was $103, with $164 remaining to be amortized as of December 31, 2020. Total amortization expense for the year ended December 31, 2019 was $103, with $267 remaining to be amortized as of December 31, 2019. Total amortization expense for the year ended December 31, 2018 was $103, with $370 remaining to be amortized as of December 31, 2018 The 2027 Notes mature on July 15, 2027, with a fixed interest rate of 5.875% payable semi-annually in arrears for five years until July 15, 2022. Thereafter, the Company will be obligated to pay interest at a rate equal to 3-month LIBOR plus 388 basis points quarterly in arrears until either the early redemption date or the maturity date. The 2027 Notes are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The 2027 Notes are redeemable by the Company, in whole or in part, on or after July 15, 2022, and at any time upon the occurrence of certain events. Any redemption by the Company would be at a redemption price equal to 100% of the outstanding principal amount of the 2027 Notes being redeemed, including any accrued and unpaid interest thereon. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions | |
Related-Party Transactions | Note 13: Related-Party Transactions In the ordinary course of business, the Company has granted loans to executive officers, directors, principal shareholders, and their affiliates (related parties). The following table presents the activity associated with loans made between related parties for the years ended December 31, 2020 and 2019: 2020 2019 Beginning Balance $ 37,483 $ 39,454 New Loans and Advances 8,076 13,298 Repayments (11,429) (15,269) Totals $ 34,130 $ 37,483 Deposits from related parties held by the Company at December 31, 2020 and 2019 were $7,870 and $11,223, respectively. The Company has a related party lease which is disclosed in Note 6. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 14: Income Taxes The following table presents the allocation of federal and state income taxes between current and deferred portions as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Current Tax Provision $ 11,062 $ 7,670 $ 6,522 Deferred Tax Benefit (2,590) (747) (1,298) Total Income Tax Provision $ 8,472 $ 6,923 $ 5,224 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Amount Percent Amount Percent Amount Percent Amount of Statutory Rate $ 7,489 21.0 % $ 8,048 21.0 % $ 6,750 21.0 % State Income Taxes (Net of Federal Income Tax Benefit) 3,014 8.5 2,711 7.1 2,755 8.6 Interest on Investment Securities and Loans Exempt From Federal Income Tax (702) (2.0) (734) (1.9) (719) (2.2) Tax Credits (770) (2.1) (2,781) (7.3) (3,207) (10.0) Other Differences (559) (1.6) (321) (0.8) (355) (1.1) Totals $ 8,472 23.8 % $ 6,923 18.1 % $ 5,224 16.3 % The Company’s effective tax rate may fluctuate as it is impacted by the level and timing of the Company’s utilization of historic tax credits, low-income housing tax credits, the level of tax-exempt investments and loans, and the overall level of pre-tax income. The following table presents the components of the net deferred tax asset included in other assets, as of December 31, 2020 and 2019: 2020 2019 Depreciation $ (986) $ (231) Allowance for Loan Losses 9,848 6,342 Unrealized (Gain) Loss on Securities Available for Sale (2,426) (1,399) Unrealized (Gain) Loss on Cash Flow Hedges 677 130 Prepaid Expenses (522) (50) Deferred Compensation 711 742 Deferred Loan Fees 806 599 Other (95) (230) Totals $ 8,013 $ 5,903 |
Tax Credit Investments
Tax Credit Investments | 12 Months Ended |
Dec. 31, 2020 | |
Tax Credit Investments | |
Tax Credit Investments | Note 15: Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area. The following table presents a summary of the Company’s investments in qualified affordable housing projects and other tax credit investments at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 1,867 $ — $ 2,148 $ — Federal Historic Tax Credit (FHTC) Equity 2,198 1,858 2,262 3,395 Total $ 4,065 $ 1,858 $ 4,410 $ 3,395 (1) All commitments are expected to be paid by the Company by December 31, 2021. Amortization Tax Benefit Expense (1) Recognized (2) Year Ended December 31, 2020 LIHTC $ 281 $ (330) FHTC 738 (1,056) Total $ 1,019 $ (1,386) Year Ended December 31, 2019 LIHTC $ 289 $ (330) FHTC 3,225 (3,687) Total $ 3,514 $ (4,017) Year Ended December 31, 2018 LIHTC $ 310 $ (346) FHTC 3,293 (3,782) Total $ 3,603 $ (4,128) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss. |
Commitments, Contingencies and
Commitments, Contingencies and Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, Contingencies and Credit Risk | |
Commitments, Contingencies and Credit Risk | Note 16: Commitments, Contingencies and Credit Risk Financial Instruments with Off-Balance Sheet Credit Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding at December 31, 2020 and 2019: December 31, December 31, 2020 2019 Unfunded Commitments Under Lines of Credit $ 644,338 $ 500,962 Letters of Credit 90,206 79,225 Totals $ 734,544 $ 580,187 Commitments to extend credit are agreements to lend to a customer at fixed or variable rates as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant, and equipment; real estate; and stocks and bonds. Unfunded commitments under commercial lines of credit, home equity lines of credit, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit issued have expiration dates within two years. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. The Company had outstanding letters of credit with the FHLB in total amounts of $60,091 and $108,502 at December 31, 2020 and 2019, respectively, on behalf of customers and to secure public deposits. Legal Contingencies Various legal claims arise from time to time in the normal course of business. In the opinion of management, any liability resulting from such proceedings would not have a material impact on the consolidated financial statements. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2020 | |
Stock Options and Restricted Stock | |
Stock Options and Restricted Stock | Note 17: Stock Options and Restricted Stock The Company established the Bridgewater Bancshares, Inc. 2012 Combined Incentive and Non-Statutory Stock Option Plan (the “2012 Plan”) under which the Company may grant options to its directors, officers, and employees for up to 750,000 shares of common stock. Both incentive stock options and nonqualified stock options may be granted under the 2012 Plan. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each outstanding option is ten years. All outstanding options have been granted with vesting periods of five years. As of December 31, 2020 and 2019, there were 30,000 and -0- In 2017, the Company adopted the Bridgewater Bancshares, Inc. 2017 Combined Incentive and Non-Statutory Stock Option Plan (the “2017 Plan”). Under the 2017 Plan, the Company may grant options to its directors, officers, and employees and consultants for up to 1,500,000 shares of common stock. Both incentive stock options and nonqualified stock options may be granted under the 2017 Plan. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each outstanding option is ten years. All outstanding options have been granted with vesting periods of four In 2019, the Company adopted the Bridgewater Bancshares, Inc. 2019 Equity Incentive Plan (the “2019 EIP”). The types of awards which may be granted under the 2019 EIP include incentive and nonqualified stock options, stock appreciation rights, stock awards, restricted stock units, restricted stock and cash incentive awards. The Company may grant these awards to its directors, officers, employees and certain other service providers for up to 1,000,000 shares of common stock. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each award is ten years. All outstanding awards have been granted with a vesting period of four years. As of December 31, 2020, and 2019, there were 561,883 and 867,040 of remaining shares of the Company’s common stock reserved for future grants under the 2019 EIP. Stock Options The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on an industry index as described below. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common stock and does not expect to do so in the near future. The Company used the S&P 600 CM Bank Index as its historical volatility index. The S&P 600 CM Bank Index is an index of publicly traded small capitalization, regional, commercial banks located throughout the United States. There were 61 banks in the index ranging in market capitalization from $300 million up to $3.5 billion. The weighted average assumptions used in the model for valuing stock option grants in 2020 is as follows: December 31, 2020 Dividend Yield — % Expected Life 7 Years Expected Volatility 44.14 % Risk-Free Interest Rate 0.68 % The following table presents a summary of the status of the Company’s outstanding stock options for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Outstanding at Beginning of Year 1,961,650 $ 7.08 1,807,100 $ 6.24 Granted 60,000 10.61 238,000 12.47 Exercised (74,400) 4.26 (74,850) 3.45 Forfeitures (33,000) 7.47 (8,600) 10.65 Outstanding at End of Year 1,914,250 $ 7.29 1,961,650 $ 7.08 Options Exercisable at End of Year 1,205,350 $ 5.96 992,050 $ 5.01 For the years ended December 31, 2020, 2019 and 2018, the Company recognized compensation expense for stock options of $881, $721 and $799, respectively. The following table presents information pertaining to options outstanding at December 31, 2020: Options Outstanding Options Exercisable Weighted Average Number of Weighted Average Remaining Contractual Number of Weighted Average Range of Exercise Prices Options Exercise Price Life in Years Options Exercise Price $ 2.13 - 3.99 522,750 $ 2.94 3.0 522,750 $ 2.94 7.00 - 7.99 968,500 7.47 6.8 576,100 7.47 8.00 - 8.99 25,000 8.76 9.3 — — 10.00 - 10.99 10,000 10.08 9.4 — — 11.00 - 11.99 85,000 11.27 8.4 22,000 11.34 12.00 - 12.99 278,000 12.89 8.6 74,500 12.91 13.00 - 13.99 25,000 13.22 7.4 10,000 13.22 Totals 1,914,250 $ 7.29 6.1 1,205,350 $ 5.96 As of December 31, 2020, there was $2,027 of total unrecognized compensation cost related to nonvested stock options granted under the 2012 Plan, 2017 Plan and 2019 EIP that is expected to be recognized over a weighted-average period of 2.7 years. The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2020: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2019 969,600 $ 3.08 Granted 60,000 4.39 Vested (287,700) 2.98 Forfeited (33,000) 2.80 Nonvested Options at December 31, 2020 708,900 $ 3.24 Restricted Stock Awards In 2019, the Company granted restricted stock awards out of the 2019 EIP. These awards vest in equal annual installments on the first four The following table presents an analysis of nonvested restricted stock awards outstanding for the year ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Weighted Weighted Number of Average Grant Average Shares Date Fair Value Shares Exercise Price Nonvested at December 31, 2019 132,960 $ 12.92 — $ — Granted 18,641 10.29 132,960 12.92 Vested (32,439) 12.92 — — Forfeited (8,200) 10.91 — — Nonvested at December 31, 2020 110,962 $ 12.63 132,960 $ 12.92 Compensation expense associated with the restricted stock awards is recognized on a straight-line basis over the period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. For the years ended December 31, 2020 and 2019, the Company recognized compensation expense for restricted stock awards of $441 and $31, respectively. No compensation expense was recognized for restricted stock awards for the year ended December 31, 2018. As of December 31, 2020, there was $1,349 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2019 EIP that is expected to be recognized over a period of four years. In addition, during the year ended December 31, 2020, the Company issued 29,050 shares of common stock to directors as a part of their compensation for their annual services on the Company’s board of directors. The aggregate value of the shares issued to directors of $303 was included in stock based compensation expense in the accompanying consolidated statements of shareholders’ equity. Restricted Stock Units In 2020, the Company granted 205,666 restricted stock units with a grant date fair value of $12.27. Restricted stock units granted out of the 2019 EIP represent the right to receive one share of Company stock upon vesting and vest in equal annual installments on the first four Compensation expense associated with the restricted stock units is recognized on a straight-line basis over the period that the restrictions associated with the units lapse based on the total cost of the unit at the grant date. For the year ended December 31, 2020, the Company recognized compensation expense for restricted stock units of $43. No compensation expense was recognized for restricted stock units for the years ended December 31, 2019 and 2018. As of December 31, 2020, there was $2,505 of total unrecognized compensation cost related to nonvested restricted stock units granted under the 2019 EIP that is expected to be recognized over a period of four years. No restricted stock units vested during 2020. |
Profit Sharing Plan
Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2020 | |
Profit Sharing Plan | |
Profit Sharing Plan | Note 18: Profit Sharing Plan The Company has a combined profit sharing 401(k) plan which provides that an annual contribution, up to 100% of each participating employee’s total pay, may be contributed to the plan. Employees are eligible to participate after meeting certain eligibility requirements as defined in the plan and are allowed to make pre-tax contributions up to the maximum amount allowed by the Internal Revenue Service. The terms of the 401(k) plan require employer match contributions equal to 100% of the employee contributions up to 4% of pay. In addition, the terms of the plan allow for discretionary contributions as determined by the Company and approved by the Board of Directors. The employer match contributions for the 401(k) plan were $743, $603, and $483 for the years ended December 31, 2020, 2019 and 2018, respectively. The total employer profit sharing contributions to the plan were $533, $473, and $328 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Deferred Compensation Plan
Deferred Compensation Plan | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Compensation Plan | |
Deferred Compensation Plan | Note 19: Deferred Compensation Plan In 2013, the Company implemented a deferred compensation plan for certain employees which allows the Company to make a discretionary contribution to the account of any employee designated as a participant in the plan based upon the participant’s performance for the calendar year. Company contributions to the plan vest on the fourth anniversary of the last day of the calendar year for which the contribution was made to the plan and accrue interest at a rate equal to the Bank’s return on average equity for the immediately preceding calendar year. Distribution of amounts contributed under the plan, including accrued interest, is made in a lump sum cash payment within 75 days following the date such amounts become vested. As of December 31, 2020 and 2019, the Company had a liability of $3,571 and $3,546, respectively, recorded on the consolidated balance sheets. There were no new contributions made to the plan during the years ended December 31, 2020 and 2019. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital | |
Regulatory Capital | Note 20: Regulatory Capital The Company and the Bank are subject to various regulatory requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank must also meet certain specific capital guidelines under the regulatory framework for prompt corrective action. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets (referred to as the “leverage ratio”), as defined under the applicable regulatory capital rules. The following tables present the capital amounts and ratios for the Company and the Bank as of December 31, 2020 and 2019: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-based Capital $ 360,198 14.58 % $ 197,604 8.00 % $ 259,355 10.50 % N/A N/A Tier 1 Risk-based Capital 255,530 10.35 148,203 6.00 209,954 8.50 N/A N/A Common Equity Tier 1 Capital 255,530 10.35 111,152 4.50 172,904 7.00 N/A N/A Tier 1 Leverage Ratio 255,530 9.28 110,168 4.00 110,168 4.00 N/A N/A Bank: Total Risk-based Capital $ 330,380 13.37 % $ 197,629 8.00 % $ 259,388 10.50 % $ 247,036 10.00 % Tier 1 Risk-based Capital 299,447 12.12 148,222 6.00 209,981 8.50 197,629 8.00 Common Equity Tier 1 Capital 299,447 12.12 111,166 4.50 172,925 7.00 160,574 6.50 Tier 1 Leverage Ratio 299,447 10.89 109,972 4.00 109,972 4.00 137,465 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-based Capital $ 269,613 12.98 % $ 166,163 8.00 % $ 218,089 10.50 % N/A N/A Tier 1 Risk-based Capital 236,533 11.39 124,623 6.00 176,549 8.50 N/A N/A Common Equity Tier 1 Capital 236,533 11.39 93,467 4.50 145,393 7.00 N/A N/A Tier 1 Leverage Ratio 236,533 10.69 88,498 4.00 88,498 4.00 N/A N/A Bank: Total Risk-based Capital $ 252,501 12.16 % $ 166,137 8.00 % $ 218,055 10.50 % $ 207,671 10.00 % Tier 1 Risk-based Capital 243,461 11.72 124,603 6.00 176,521 8.50 166,137 8.00 Common Equity Tier 1 Capital 243,461 11.72 93,452 4.50 145,370 7.00 134,986 6.50 Tier 1 Leverage Ratio 243,461 11.01 88,455 4.00 88,455 4.00 110,569 5.00 The Company and the Bank must maintain a capital conservation buffer as defined by Basel III regulatory capital guidelines, in order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers. Management believes that, as of December 31, 2020 and 2019, the capital ratios of the Company and the Bank were in excess of the quantitative capital ratio standards applicable on those dates. However, there can be no assurance that the Company and the Bank will continue to maintain such status in the future. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement | |
Fair Value Measurement | Note 21: Fair Value Measurement The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilized quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy to value certain financial instruments at fair value. The Company has not elected to measure any existing financial instruments at fair value; however, it may elect to measure newly acquired financial instruments at fair value in the future. Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following table presents the balances of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: Municipal Bonds $ — $ 115,012 $ — $ 115,012 Mortgage-Backed Securities — 124,260 — 124,260 Corporate Securities — 72,155 — 72,155 SBA Securities — 40,107 — 40,107 Asset-Backed Securities — 39,095 — 39,095 Interest Rate Caps — 2,834 — 2,834 Interest Rate Swaps — 2,757 — 2,757 Total Fair Value of Financial Assets $ — $ 396,220 $ — $ 396,220 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 6,167 $ — $ 6,167 Total Fair Value of Financial Liabilities $ — $ 6,167 $ — $ 6,167 December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 4,998 $ — $ — $ 4,998 Municipal Bonds — 105,743 — 105,743 Mortgage-Backed Securities — 64,728 — 64,728 Corporate Securities — 50,176 — 50,176 SBA Securities — 49,559 — 49,559 Asset-Backed Securities — 14,673 — 14,673 Interest Rate Swaps — 284 — 284 Total Fair Value of Financial Assets $ 4,998 $ 285,163 $ — $ 290,161 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 902 $ — $ 902 Total Fair Value of Financial Liabilities $ — $ 902 $ — $ 902 Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s investments, when quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially, all of these assumptions are observable in the marketplace and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, or cannot be obtained or corroborated, a security is generally classified as Level 3. Interest Rate Caps Interest Rate Swaps Interest rate swaps are traded in over-the-counter markets where quoted market prices are not readily available. For those interest rate swaps, fair value is determined using internally developed models of a third party that uses primarily market observable inputs, such as yield curves and option volatilities, and accordingly are valued using Level 2 inputs. Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets for the periods ended December 31, 2020, 2019 and 2018: December 31, 2020 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 80 $ — $ 50 Totals $ — $ 80 $ — $ 50 December 31, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 75 $ — $ 206 Totals $ — $ 75 $ — $ 206 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396 Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment is measured on loans when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. Impaired loans for which an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based on customized discounting criteria. Impairment amounts on impaired loans represent specific valuation allowance and write-downs during the period presented on impaired loans that were individually evaluated for impairment based on the estimated fair value of the collateral less estimated selling costs, excluding impaired loans fully charged-off. Fair Value Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flow or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the below amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following tables present the carrying amounts and estimated fair values of financial instruments at December 31, 2020 and 2019: December 31, 2020 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 160,675 $ 160,675 $ — $ — $ 160,675 Bank-Owned Certificates of Deposit 2,860 — 2,908 — 2,908 Securities Available for Sale 390,629 — 390,629 — 390,629 FHLB Stock, at Cost 5,027 — 5,027 — 5,027 Loans, Net 2,282,436 — 2,309,421 — 2,309,421 Accrued Interest Receivable 9,172 — 9,172 — 9,172 Interest Rate Caps 2,834 — 2,834 — 2,834 Interest Rate Swaps 2,757 — 2,757 — 2,757 Financial Liabilities: Deposits $ 2,501,636 $ — $ 2,509,148 $ — $ 2,509,148 Notes Payable 11,000 — 11,001 — 11,001 FHLB Advances 57,500 — 58,830 — 58,830 Subordinated Debentures 73,739 — 74,769 — 74,769 Accrued Interest Payable 1,615 — 1,615 — 1,615 Interest Rate Swaps 6,167 — 6,167 — 6,167 December 31, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 31,935 $ 31,935 $ — $ — $ 31,935 Bank-Owned Certificates of Deposit 2,654 — 2,677 — 2,677 Securities Available for Sale 289,877 4,998 284,879 — 289,877 FHLB Stock, at Cost 7,824 — 7,824 — 7,824 Loans, Net 1,884,000 — 1,891,987 — 1,891,987 Accrued Interest Receivable 6,775 — 6,775 — 6,775 Interest Rate Swaps 284 — 284 — 284 Financial Liabilities: Deposits $ 1,823,310 $ — $ 1,821,915 $ — $ 1,821,915 Notes Payable 13,000 — 13,022 — 13,022 FHLB Advances 136,500 — 141,152 — 141,152 Subordinated Debentures 24,733 — 25,309 — 25,309 Accrued Interest Payable 1,982 — 1,982 — 1,982 Interest Rate Swaps 902 — 902 — 902 The following methods and assumptions were used by the Company to estimate fair value of consolidated financial statements not previously discussed. Cash and due from banks Bank-owned certificates of deposit FHLB stock Loans, Net Accrued interest receivable Deposits Notes payable and subordinated debentures FHLB advances Accrued interest payable Off-balance sheet instruments Limitations |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition | |
Revenue Recognition | Note 22: Revenue Recognition The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, Revenue from Contracts with Customers Substantially all of the Company’s revenue is generated from financial instruments, including interest income related to loans and investment securities, letters of credit, and derivatives, which are not within the scope of Topic 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. The following is a summary of revenue-generating activities that are within the scope of Topic 606, which are presented in the Company’s income statements as components of noninterest income: Service charges on deposit accounts Debit card interchange fees Gain on sales of other real estate |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 23: Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018. Before Tax Tax Effect Net of Tax Year Ended December 31, 2020 Net Unrealized Gain on Available for Sale Securities $ 6,394 $ (1,343) $ 5,051 Less: Reclassification Adjustment for Net Gains Included in Net Income (1,503) 316 (1,187) Total Unrealized Gain 4,891 (1,027) 3,864 Net Unrealized Loss on Cash Flow Hedge (3,185) 669 (2,516) Less: Reclassification Adjustment for Losses Included in Net Income 579 (122) 457 Total Unrealized Loss (2,606) 547 (2,059) Other Comprehensive Gain $ 2,285 $ (480) $ 1,805 Year Ended December 31, 2019 Net Unrealized Gain on Available for Sale Securities $ 9,514 $ (1,998) $ 7,516 Less: Reclassification Adjustment for Net Gains Included in Net Income (516) 109 (407) Total Unrealized Gain 8,998 (1,889) 7,109 Net Unrealized Loss on Cash Flow Hedge (962) 202 (760) Less: Reclassification Adjustment for Gains Included in Net Income (9) 2 (7) Total Unrealized Loss (971) 204 (767) Other Comprehensive Gain $ 8,027 $ (1,685) $ 6,342 Year Ended December 31, 2018 Net Unrealized Loss on Available for Sale Securities $ (3,804) $ 852 $ (2,952) Less: Reclassification Adjustment for Net Losses Included in Net Income 125 (26) 99 Total Unrealized Loss (3,679) 826 (2,853) Net Unrealized Gain on Cash Flow Hedge 9 (2) 7 Less: Reclassification Adjustment for Gains Included in Net Income — — — Total Unrealized Gain 9 (2) 7 Other Comprehensive Loss $ (3,670) $ 824 $ (2,846) The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2020, 2019 and 2018. Accumulated Available For Other Comprehensive Sale Securities Cash Flow Hedge Income (Loss) Year Ended December 31, 2020 Balance at Beginning of Year $ 5,263 $ (489) $ 4,774 Other Comprehensive Income (Loss) Before Reclassifications 5,051 (2,516) 2,535 Amounts Reclassified from Accumulated Other Comprehensive Income (1,187) 457 (730) Net Other Comprehensive Income (Loss) During Period 3,864 (2,059) 1,805 Balance at End of Year $ 9,127 $ (2,548) $ 6,579 Year Ended December 31, 2019 Balance at Beginning of Year $ (1,846) $ 278 $ (1,568) Other Comprehensive Income (Loss) Before Reclassifications 7,516 (760) 6,756 Amounts Reclassified from Accumulated Other Comprehensive Income (407) (7) (414) Net Other Comprehensive Income (Loss) During Period 7,109 (767) 6,342 Balance at End of Year $ 5,263 $ (489) $ 4,774 Year Ended December 31, 2018 Balance at Beginning of Year $ 860 $ 224 $ 1,084 Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act 147 47 194 Other Comprehensive Income (Loss) Before Reclassifications (2,952) 7 (2,945) Amounts Reclassified from Accumulated Other Comprehensive Income 99 — 99 Net Other Comprehensive Income (Loss) During Period (2,853) 7 (2,846) Balance at End of Year $ (1,846) $ 278 $ (1,568) |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Financial Information | |
Parent Company Financial Information | Note 24: Parent Company Financial Information The following information presents the condensed balance sheets of the Company as of December 31, 2020 and 2019, and the condensed statements of income and cash flows of the Company for the years ended December 31, 2020, 2019 and 2018: Condensed Balance Sheets December 31, December 31, 2020 2019 ASSETS Cash and Cash Equivalents $ 37,880 $ 27,315 Investment in Subsidiaries 311,329 253,456 Premises and Equipment, Net 774 795 Other Assets 1,437 2,181 Total Assets $ 351,420 $ 283,747 LIABILITIES AND EQUITY LIABILITIES Notes Payable $ 11,000 $ 13,000 Subordinated Debentures, Net of Issuance Costs 73,739 24,733 Accrued Interest Payable 724 713 Other Liabilities 552 507 Total Liabilities 86,015 38,953 SHAREHOLDERS’ EQUITY Preferred Stock—$0.01 par value Preferred Stock—Authorized 10,000,000 — — Common Stock—$0.01 par value Voting Common Stock—Authorized 75,000,000 281 290 Additional Paid‑In Capital 103,714 112,093 Retained Earnings 154,831 127,637 Accumulated Other Comprehensive Income 6,579 4,774 Total Shareholders’ Equity 265,405 244,794 Total Liabilities and Shareholders' Equity $ 351,420 $ 283,747 Condensed Statements of Income December 31, December 31, December 31, 2020 2019 2018 INCOME Dividend Income $ 1,300 $ 1,040 $ 1,100 Interest Income 19 27 3 Other Income 179 158 136 Total Income 1,498 1,225 1,239 EXPENSE Interest Expense 3,547 2,056 2,162 Other Expenses 1,412 996 1,152 Total Interest Expense 4,959 3,052 3,314 LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS (3,461) (1,827) (2,075) Income Tax Benefit 1,323 776 924 LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS (2,138) (1,051) (1,151) Equity in Undistributed Earnings 29,332 32,454 28,071 NET INCOME $ 27,194 $ 31,403 $ 26,920 Condensed Statements of Cash Flows December 31, December 31, December 31, 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 27,194 $ 31,403 $ 26,920 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries (29,332) (32,454) (28,071) Changes in Other Assets and Liabilities 234 311 (368) Net Cash Used by Operating Activities (1,904) (740) (1,519) CASH FLOWS FROM INVESTING ACTIVITIES Net (Increase) Decrease in Loans 742 (742) — Investment in Subsidiaries (25,000) — (25,000) Net Cash Used in Investing Activities (24,258) (742) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable (2,000) (2,000) (2,000) Proceeds from Issuance of Subordinated Debt 48,783 — — Stock Options Exercised 317 258 106 Stock Repurchases (10,373) (14,959) — Issuance of Common Stock — — 58,857 Net Cash Provided (Used) by Financing Activities 36,727 (16,701) 56,963 NET CHANGE IN CASH AND CASH EQUIVALENTS 10,565 (18,183) 30,444 Cash and Cash Equivalents Beginning 27,315 45,498 15,054 Cash and Cash Equivalents Ending $ 37,880 $ 27,315 $ 45,498 |
Quarterly Condensed Financial I
Quarterly Condensed Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Condensed Financial Information (Unaudited) | |
Quarterly Condensed Financial Information (Unaudited) | Note 25: Quarterly Condensed Financial Information (Unaudited) The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2020 and 2019: 2020 Quarter Ended March 31 June 30 September 30 December 31 (dollars in thousands) Interest Income $ 27,468 $ 28,166 $ 28,493 $ 30,699 Interest Expense 7,366 6,824 6,814 5,858 Net Interest Income 20,102 21,342 21,679 24,841 Provision for Loan Losses 2,100 3,000 3,750 3,900 Net Interest Income after Provision for Loan Losses 18,002 18,342 17,929 20,941 Noninterest Income 1,719 1,977 1,157 986 Noninterest Expense 9,746 10,711 9,672 15,258 Income Before Income Taxes 9,975 9,608 9,414 6,669 Provision for Income Taxes 2,532 2,010 2,240 1,690 Net Income $ 7,443 $ 7,598 $ 7,174 $ 4,979 Earnings per share Basic $ 0.26 $ 0.26 $ 0.25 $ 0.18 Diluted $ 0.25 $ 0.26 $ 0.25 $ 0.17 2019 Quarter Ended March 31 June 30 September 30 December 31 (dollars in thousands) Interest Income $ 24,267 $ 25,520 $ 26,572 $ 27,419 Interest Expense 7,136 7,382 7,637 7,491 Net Interest Income 17,131 18,138 18,935 19,928 Provision for Loan Losses 600 600 900 600 Net Interest Income after Provision for Loan Losses 16,531 17,538 18,035 19,328 Noninterest Income 634 1,134 946 1,112 Noninterest Expense 7,885 9,474 9,084 10,489 Income Before Income Taxes 9,280 9,198 9,897 9,951 Provision for Income Taxes 2,262 1,189 2,092 1,380 Net Income $ 7,018 $ 8,009 $ 7,805 $ 8,571 Earnings per share Basic $ 0.23 $ 0.27 $ 0.27 $ 0.30 Diluted $ 0.23 $ 0.26 $ 0.27 $ 0.29 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | Note 26: Subsequent Events Payoff of Note Payable On February 25, 2021, the Company paid off its $11.0 million bank stock loan. New Revolving Line of Credit On March 1, 2021, the Company entered into a Loan and Security Agreement and revolving note with ServisFirst Bank, pursuant to which ServisFirst Bank has made a $25.0 million revolving line of credit available to the Company which is secured by 100% of the stock of the Bank. The maturity of the line of credit is February 28, 2023. As of March 5, 2021, there was no outstanding balance under the line of credit, and the entire amount of the line of credit remained available to the Company. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies ) | 12 Months Ended |
Dec. 31, 2020 | |
Description of the Business and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Information available which could affect judgements includes, but is not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19 pandemic related changes, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, calculation of deferred tax assets, fair value of financial instruments, and investment securities impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, both interest bearing and noninterest bearing balances due from banks and federal funds sold, all of which mature within 90 days. Cash flows from loans and deposits are reported net. |
Bank-Owned Certificates of Deposit | Bank-Owned Certificates of Deposit Bank-owned certificates of deposit mature within five years and are carried at cost. |
Securities Available for Sale | Securities Available for Sale Debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Declines in the fair value of individual available for sale securities below their cost that are other than temporary result in write-downs of the individual securities to the fair value. The Company monitors the investment securities portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other than temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the Company’s intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The ability to hold is determined by whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other than temporary is recorded as a loss in noninterest income. |
Paycheck Protection Program Loan Segment | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid balances adjusted for charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans, and premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. The accrual of interest on all loans is discounted if the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income and amortization of related deferred loan fees or costs is suspended. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. The cash-basis is used when a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments are applied to loan principal. The determination of ultimate collectability is supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has demonstrated a period of sustained performance, and future payments are reasonably assured. A sustained period of repayment performance generally would be a minimum of six months. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (the “allowance”) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Loan losses are charged-off against the allowance when the Company determines all or a portion of the loan balance to be uncollectible. Cash received on previously charged-off amounts is recorded as a recovery to the allowance. The allowance consists of three primary components, general reserves, specific reserves related to impaired loans, and unallocated reserves. The general component covers nonimpaired loans and is based on historical losses adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is adjusted for economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions, including uncertainty related to effects of the COVID-19 pandemic; industry conditions; COVID-19 pandemic related modifications; and effects of change in credit concentrations. These factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. An impaired loan is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price, or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. Allowance allocations other than general and specific reserves are included in the unallocated portion. While allocations are made for loans and leases based upon historical loss analysis, the unallocated portion is designed to cover the uncertainty of how current economic conditions and other uncertainties may impact the existing loan portfolio. Factors to consider include global, national and state economic conditions such as changes in unemployment rates and productivity, geopolitical tensions, monetary and fiscal policy uncertainty, political gridlock, and real estate market trends. The unallocated reserve addresses inherent probable losses not included elsewhere in the allowance for loan losses. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDRs are considered impaired and measured for impairment as described above in the calendar year of the restructuring. In subsequent years, a restructured loan may cease being classified as impaired if the loan was modified at a market rate and is performing according to the modified terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included with other nonaccrual loans. The Coronavirus Aid, Relief and Economic Security Act, or, CARES Act, signed into law on March 27, 2020, included provisions that provide temporary relief from TDR accounting for certain types of modifications. Under these provisions, modifications deemed to be COVID-19-related would not be considered a TDR if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. The termination of these provisions was extended, to the earlier of 60 days after the COVID-19 national emergency date or January 1, 2022, by the Consolidated Appropriations Act, 2021. The banking regulators issued similar guidance, which also clarified that a COVID-19-related modification should not be considered a TDR if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification was considered to be short-term. Modifications are first evaluated for eligibility under the CARES Act, then the interagency guidance if they do not qualify for the CARES Act relief. Modifications that are not eligible for either program continue to follow the Company’s established TDR policy. Additionally, loans with deferrals granted due to COVID-19 are not generally reported as past due or nonaccrual. The Company assigns risk ratings to all loans and periodically performs detailed internal reviews of all such loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into five major categories defined as follows: Pass: Watch: Substandard: Doubtful: Loss : The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial, Paycheck Protection Program, construction and land development, 1-4 family mortgage, multifamily, CRE owner occupied, CRE nonowner occupied, and consumer and other with risk characteristics described as follows: Commercial: Paycheck Protection Program: two Construction and Land Development: 1-4 Family Mortgage: Multifamily: CRE Owner Occupied: business cycles, unemployment and other key economic indicators, which could impact the cash flows of the business and their ability to make rental payments. Certain types of businesses also may require specialized facilities that can increase costs and may not be economically feasible to an alternative user, which could adversely impact the market value of the collateral. CRE Nonowner Occupied: Consumer and Other: Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions, and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators assess the adequacy of the allowance from time to time. The regulatory agencies may require adjustments to the allowance based on their judgement about information available at the time of their review and examinations. |
Off-Balance-Sheet Instruments | Off-Balance Sheet Instruments In the ordinary course of business, the Company has entered into off-balance sheet instruments including commitments to extend credit and unfunded commitments under lines of credit, standby letters of credit, and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they become payable. The Company maintains a separate allowance for off-balance sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance sheet commitments is included in other liabilities. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is a member of FHLB Des Moines. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery at par value. Both cash and stock dividends are reported as income. |
Premises and Equipment | Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or lease term for leasehold improvements. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance. Subsequent to foreclosure, valuations are periodically performed by management and the assets held for sale are carried at the lower of the new cost basis or fair value less cost to sell. This evaluation is inherently subjective and requires estimates that are susceptible to significant revisions as more information becomes available. Impairment losses on assets to be held and used are measured at the amount by which the carrying amount of a property exceeds its fair value. Costs relating to holding and improving assets are expensed. Revenues and expenses from operations are included in other noninterest income and expense on the income statement. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets attributed to the value of core deposits and favorable lease terms are stated at cost less accumulated amortization and reported in other intangible assets in the consolidated balance sheets. Intangible assets are amortized on a straight-line basis over the estimated lives of the assets. The excess of purchase price over fair value of net assets acquired is recorded as goodwill and is not amortized. The Company evaluates whether goodwill and other intangible assets may be impaired at least annually and whenever events or changes in circumstances indicate it is more likely than not the fair value of the reporting unit or asset is less than its carrying amount. |
Transfers of Financial Assets and Participating Interests | Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. Under GAAP, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. In preparation of the income tax returns, tax positions are taken based on interpretation of federal and state income tax laws. Management periodically reviews and evaluates the status of uncertain tax positions and makes estimates of amounts ultimately due or owed. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. The Company recognizes both interest and penalties as a component of other noninterest expense. The amount of the uncertain tax positions was not deemed to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties for the years ended December 31, 2020, 2019 and 2018. The Company is no longer subject to federal or state tax examination by tax authorities for years ending before December 31, 2017. |
Tax Credit Investments | Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. These investments are included in other assets on the balance sheet, with any unfunded commitments included within other liabilities. The qualified affordable housing projects are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is recognized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. The historic tax credits are accounted for under the equity method, with the expense included within noninterest expense on the consolidated statements of income. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale and changes in the fair value of derivative instruments designated as a cash flow hedge, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings, specifically in noninterest income. The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. and international financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. The Company prepares written hedge documentation for all derivatives which are designed as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. For a cash flow hedge that is effective, the gain or loss on the derivative is reported as a component in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. To determine fair value, the Company uses third party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for trading or speculative purposes. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Hedge accounting discontinues on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. |
Stock-based Compensation | Stock-based Compensation The Company’s stock-based compensation plans provide for awards of stock options and restricted stock to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures are recognized as they occur. |
Compensating Balances | Compensating Balances The Bank is required to maintain average balances with the Federal Reserve Bank. The Bank has implemented a deposit reclassification program which allows the Bank to reclassify a portion of transaction accounts to nontransaction accounts for reserve purposes. The deposit reclassification program was provided by a third-party vendor, and has been approved by the Federal Reserve Bank. At December 31, 2020, and 2019, the Bank was subject to maintaining an average balance of $-0- |
Earnings per Share | Earnings per Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation using the treasury stock method. |
Segment Reporting | Segment Reporting All of the Company’s operations are considered by management to be one operating segment. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2019 consolidated financial statements to conform to the 2020 classifications. |
Impact of Recent Accounting Standards | Impact of Recently Adopted Accounting Guidance In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, issued an interagency statement titled Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus , that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, Receivables – Troubled Debt Restructurings by Creditors (ASC 310-40) , a restructuring of debt constitutes a troubled debt restructuring, or TDR, if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The regulatory agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief, are not to be considered TDRs. These include short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Additionally, Section 4013 of the CARES Act that passed on (i) (ii) If a bank elects a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID–19 pandemic. The Company has applied this guidance to qualifying loan modifications. This guidance was extended by the 2021 Consolidated Appropriations Act. This new legislation extends the relief to financial institutions to suspend TDR assessment and reporting requirements under GAAP for loan modifications to the earlier of 60 days after the national emergency termination date or January 1, 2022. Impact of Recently Issued Accounting Standards The following ASUs have been issued by FASB and may impact the Company’s consolidated financial statements in future reporting periods. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Codification Improvements to Topic 842 Leases: Targeted Improvements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments Credit Losses Financial Instruments Credit Losses – Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments – Credit Losses financial asset that has a contractual right to receive cash that is not specifically excluded. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology required in current GAAP with a methodology that reflects expected credit losses that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The amendments in this ASU will affect entities to varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. In November 2019, the FASB issued ASU 2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (815), and Leases (Topic 842) – Effective Dates. All entities may adopt the amendments in the ASU as early as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Amendments should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The Company has contracted with a third party to develop a model to comply with CECL requirements. The Company has established a steering committee with representation from various departments across the enterprise. The Company is currently evaluating the impact the new standard will have on the its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 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 If reference rates are discontinued, the existing contracts will be modified to replace the discontinued rate with a replacement rate. For accounting purposes, such contract modifications would have to be evaluated to determine whether the modified contract is a new contract or a continuation of an existing contract. If they are considered new contracts, the previous contract would be extinguished. Under one of the optional expedients of ASU 2020-04, modifications of contracts within the scope of Topic 310, Receivables, and 470, Debt, will be accounted for by prospectively adjusting the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the impact of this pronouncement on those financial assets and liabilities where LIBOR is used as an index rate. |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through March 11, 2021, which is the date the consolidated financial statements were available to be issued. |
Revenue Recognition | Substantially all of the Company’s revenue is generated from financial instruments, including interest income related to loans and investment securities, letters of credit, and derivatives, which are not within the scope of Topic 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. The following is a summary of revenue-generating activities that are within the scope of Topic 606, which are presented in the Company’s income statements as components of noninterest income: Service charges on deposit accounts Debit card interchange fees Gain on sales of other real estate |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Schedule of numerators and denominators for basic and diluted earnings per share computations | The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Net Income Available to Common Shareholders $ 27,194 $ 31,403 $ 26,920 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,582,064 29,358,644 29,001,393 Dilutive Effect of Stock Compensation 588,156 638,132 434,821 Weighted Average Common Stock Outstanding (Dilutive) 29,170,220 29,996,776 29,436,214 Basic Earnings per Common Share $ 0.95 $ 1.07 $ 0.93 Diluted Earnings per Common Share 0.93 1.05 0.91 |
Bank-Owned Certificates of De_2
Bank-Owned Certificates of Deposit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Bank-Owned Certificates of Deposit | |
Summary of certificates of deposit in other financial institutions by maturity | Certificates of deposit in other financial institutions by maturity are as follows: 2020 2019 Certificates of Deposit at Cost Maturing in: One Year or Less $ 980 $ 1,229 After One Year Through Five Years 1,880 1,425 $ 2,860 $ 2,654 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Securities | |
Summary of the amortized cost and estimated fair value of securities with gross unrealized gains and losses | The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2020 and 2019: December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: Municipal Bonds 105,975 9,373 (336) 115,012 Mortgage-Backed Securities 123,395 2,029 (1,164) 124,260 Corporate Securities 71,116 1,240 (201) 72,155 SBA Securities 40,455 32 (380) 40,107 Asset-Backed Securities 38,135 976 (16) 39,095 Total Securities Available for Sale $ 379,076 $ 13,650 $ (2,097) $ 390,629 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 4,990 $ 8 $ — $ 4,998 Municipal Bonds 99,441 6,338 (36) 105,743 Mortgage-Backed Securities 64,312 697 (281) 64,728 Corporate Securities 49,674 633 (131) 50,176 SBA Securities 50,126 35 (602) 49,559 Asset-Backed Securities 14,673 — — 14,673 Total Securities Available for Sale $ 283,216 $ 7,711 $ (1,050) $ 289,877 |
Summary of fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 and 2019: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2020 Municipal Bonds $ 12,023 $ (329) $ 223 $ (7) $ 12,246 $ (336) Mortgage-Backed Securities 45,120 (1,163) 1,699 (1) 46,819 (1,164) Corporate Securities 23,643 (131) 2,430 (70) 26,073 (201) SBA Securities 3,288 (3) 28,193 (377) 31,481 (380) Asset-Backed Securities 2,471 (16) — — 2,471 (16) Total Securities Available for Sale $ 86,545 $ (1,642) $ 32,545 $ (455) $ 119,090 $ (2,097) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2019 Municipal Bonds $ 2,760 $ (23) $ 1,390 $ (13) $ 4,150 $ (36) Mortgage-Backed Securities 32,276 (242) 3,098 (39) 35,374 (281) Corporate Securities 8,350 (131) — — 8,350 (131) SBA Securities 11,907 (64) 31,036 (538) 42,943 (602) Total Securities Available for Sale $ 55,293 $ (460) $ 35,524 $ (590) $ 90,817 $ (1,050) |
Schedule of contractual maturities of debt | The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of December 31, 2020. Call date is used when a call of the debt security is expected, determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. December 31, 2020 Amortized Cost Fair Value Due in One Year or Less $ 6,949 $ 6,985 Due After One Year Through Five Years 58,476 60,244 Due After Five Years Through 10 Years 92,936 98,500 Due After 10 Years 18,730 21,438 Subtotal 177,091 187,167 Mortgage-Backed Securities 123,395 124,260 SBA Securities 40,455 40,107 Asset-Backed Securities 38,135 39,095 Totals $ 379,076 $ 390,629 |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2020 and 2019: 2020 2019 2018 Proceeds From Sales of Securities $ 40,862 $ 42,864 $ 24,684 Gross Gains on Sales 1,592 774 290 Gross Losses on Sales (89) (258) (415) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Summary of components of loans | The following table presents the components of the loan portfolio at December 31, 2020 and 2019: December 31, December 31, 2020 2019 Commercial $ 304,220 $ 276,035 Paycheck Protection Program 138,454 — Construction and Land Development 170,217 196,776 Real Estate Mortgage: 1-4 Family Mortgage 294,479 260,611 Multifamily 626,465 515,014 CRE Owner Occupied 75,604 66,584 CRE Nonowner Occupied 709,300 592,545 Total Real Estate Mortgage Loans 1,705,848 1,434,754 Consumer and Other 7,689 4,473 Total Loans, Gross 2,326,428 1,912,038 Allowance for Loan Losses (34,841) (22,526) Net Deferred Loan Fees (9,151) (5,512) Total Loans, Net $ 2,282,436 $ 1,884,000 |
Summary of the activity in the allowance for loan losses by segment | The following table presents the activity in the allowance for loan losses, by segment, for the years ended December 31, 2020, 2019 and 2018: Paycheck Construction CRE CRE Protection and Land 1-4 Family Owner Nonowner Consumer Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Balance at January 1, 2018 $ 2,435 $ — $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 60 $ 585 $ 16,502 Provision for Loan Losses 448 — 632 242 1,474 (148) 785 31 111 3,575 Loans Charged-off (10) — (358) (21) — — — (32) — (421) Recoveries of Loans 25 — 285 59 — — — 6 — 375 Balance at December 31, 2018 $ 2,898 $ — $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 65 $ 696 $ 20,031 Provision for Loan Losses 312 — (250) 269 1,180 (16) 1,100 47 58 2,700 Loans Charged-off (160) — — (195) — — — (33) — (388) Recoveries of Loans 8 — 1 168 — — — 6 — 183 Balance at December 31, 2019 $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Provision for Loan Losses 2,984 70 289 1,223 3,693 360 4,019 134 (22) 12,750 Loans Charged-off (346) — — (144) — — — (27) — (517) Recoveries of Loans 7 — — 54 — 10 — 11 — 82 Balance at December 31, 2020 $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2020 and 2019: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Nonowner Consumer Allowance for Loan Losses at December 31, 2020 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 37 $ — $ — $ — $ — $ — $ — $ 13 $ — $ 50 Collectively Evaluated for Impairment 5,666 70 2,491 3,972 9,517 1,162 10,991 190 732 34,791 Totals $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Allowance for Loan Losses at December 31, 2019 Individually Evaluated for Impairment $ 31 $ — $ — $ — $ — $ — $ — $ 14 $ — $ 45 Collectively Evaluated for Impairment 3,027 — 2,202 2,839 5,824 792 6,972 71 754 22,481 Totals $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Nonowner Consumer Loans at December 31, 2020 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 239 $ — $ 156 $ 1,498 $ — $ 870 $ 12,388 $ 13 $ 15,164 Collectively Evaluated for Impairment 303,981 138,454 170,061 292,981 626,465 74,734 696,912 7,676 2,311,264 Totals $ 304,220 $ 138,454 $ 170,217 $ 294,479 $ 626,465 $ 75,604 $ 709,300 $ 7,689 $ 2,326,428 Loans at December 31, 2019 Individually Evaluated for Impairment $ 273 $ — $ 176 $ 1,059 $ — $ 236 $ — $ 14 $ 1,758 Collectively Evaluated for Impairment 275,762 — 196,600 259,552 515,014 66,348 592,545 4,459 1,910,280 Totals $ 276,035 $ — $ 196,776 $ 260,611 $ 515,014 $ 66,584 $ 592,545 $ 4,473 $ 1,912,038 |
Summary of impaired loans by loan segment | The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 122 $ 122 $ — $ 167 $ 167 $ — Construction and Land Development 156 763 — 176 785 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 884 884 — 302 489 — 1st REM - Rentals 614 614 — 757 757 — CRE Owner Occupied 870 870 — 236 236 — CRE Nonowner Occupied 12,388 12,388 — — — — Totals 15,034 15,641 — 1,638 2,434 — Loans With An Allowance for Loan Losses: Commercial 117 120 37 106 109 31 Consumer and Other 13 13 13 14 14 14 Totals 130 133 50 120 123 45 Grand Totals $ 15,164 $ 15,774 $ 50 $ 1,758 $ 2,557 $ 45 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 145 $ 10 $ 188 $ 13 $ — $ — Construction and Land Development 165 — 189 — 212 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 824 42 326 9 158 9 1st REM - 1-4 Family — — — — 255 10 1st REM - Rentals 624 29 789 41 976 48 CRE Owner Occupied 891 15 240 12 225 13 CRE Nonowner Occupied 12,334 690 — — — — Consumer and Other — — — — 64 — Totals 14,983 786 1,732 75 1,890 80 Loans With An Allowance for Loan Losses: Commercial 122 2 109 1 8 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — — — 324 — Multifamily — — — — 65 3 CRE Owner Occupied — — — — 158 7 Consumer and Other 13 1 44 2 — — Totals 135 3 153 3 555 10 Grand Totals $ 15,118 $ 789 $ 1,885 $ 78 $ 2,445 $ 90 |
Summary of risk category of loans by loan segment, based on the most recent analysis performed by management | The following tables present the risk category of loans by loan segment as of December 31, 2020 and 2019, based on the most recent analysis performed by management: December 31, 2020 Pass Watch Substandard Total Commercial $ 289,465 $ 14,516 $ 239 $ 304,220 Paycheck Protection Program 138,454 — — 138,454 Construction and Land Development 170,061 — 156 170,217 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 29,396 — 884 30,280 1st REM - 1-4 Family 41,239 703 — 41,942 LOCs and 2nd REM - Rentals 20,678 — — 20,678 1st REM - Rentals 200,965 — 614 201,579 Multifamily 626,465 — — 626,465 CRE Owner Occupied 74,734 — 870 75,604 CRE Nonowner Occupied 667,336 29,576 12,388 709,300 Consumer and Other 7,676 — 13 7,689 Totals $ 2,266,469 $ 44,795 $ 15,164 $ 2,326,428 December 31, 2019 Pass Watch Substandard Total Commercial $ 275,741 $ 21 $ 273 $ 276,035 Construction and Land Development 196,462 138 176 196,776 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 28,483 138 — 28,621 1st REM - 1-4 Family 36,370 124 177 36,671 LOCs and 2nd REM - Rentals 17,890 479 302 18,671 1st REM - Rentals 174,781 1,287 580 176,648 Multifamily 515,014 — — 515,014 CRE Owner Occupied 65,411 — 1,173 66,584 CRE Nonowner Occupied 589,457 3,088 — 592,545 Consumer and Other 4,459 — 14 4,473 Totals $ 1,904,068 $ 5,275 $ 2,695 $ 1,912,038 |
Summary of aging of the recorded investment in past due loans by loan segment | The following tables present the aging of the recorded investment in past due loans by loan segment as of December 31, 2020 and 2019: Accruing Interest 30-89 Days 90 Days or December 31, 2020 Current Past Due More Past Due Nonaccrual Total Commercial $ 304,211 $ 3 $ — $ 6 $ 304,220 Paycheck Protection Program 138,454 — — — 138,454 Construction and Land Development 170,061 — — 156 170,217 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,280 — — — 30,280 1st REM - 1-4 Family 41,942 — — — 41,942 LOCs and 2nd REM - Rentals 20,668 10 — — 20,678 1st REM - Rentals 201,579 — — — 201,579 Multifamily 626,465 — — — 626,465 CRE Owner Occupied 74,991 — — 613 75,604 CRE Nonowner Occupied 709,300 — — — 709,300 Consumer and Other 7,689 — — — 7,689 Totals $ 2,325,640 $ 13 $ — $ 775 $ 2,326,428 Accruing Interest 30-89 Days 90 Days or December 31, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 276,028 $ — $ — $ 7 $ 276,035 Construction and Land Development 196,600 — — 176 196,776 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 28,621 — — — 28,621 1st REM - 1-4 Family 36,671 — — — 36,671 LOCs and 2nd REM - Rentals 18,527 — — 144 18,671 1st REM - Rentals 176,114 400 — 134 176,648 Multifamily 515,014 — — — 515,014 CRE Owner Occupied 66,584 — — — 66,584 CRE Nonowner Occupied 592,545 — — — 592,545 Consumer and Other 4,470 3 — — 4,473 Totals $ 1,911,174 $ 403 $ — $ 461 $ 1,912,038 |
Summary of closed loan modifications | The following table presents a summary of active loan modifications made in response to the COVID-19 pandemic, by loan segment and modification type, as of December 31, 2020: Interest-Only Payment Deferral Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 5,212 9 $ — — $ 4,834 1 $ 10,046 10 Real Estate Mortgage: 1 - 4 Family Mortgage 48 1 — — — — 48 1 Multifamily 23,636 1 — — — — 23,636 1 CRE Owner Occupied — — 613 3 — — 613 3 CRE Nonowner Occupied 32,209 11 — — — — 32,209 11 Totals $ 61,105 22 $ 613 3 $ 4,834 1 $ 66,552 26 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Premises and Equipment | |
Schedule of Premises and equipment | Premises and equipment are summarized as follows for the years ended December 31, 2020 and 2019: Range of December 31, Useful Lives 2020 2019 Land N/A $ 5,174 $ 5,174 Building 15 - 39 Years 41,025 3,487 Leasehold Improvements 3 ‑ 10 Years 2,538 3,344 Furniture and Equipment 2 ‑ 5 Years 6,160 3,902 Construction in Progress N/A — 16,693 Subtotal 54,897 32,600 Accumulated Depreciation (3,910) (4,972) Totals $ 50,987 $ 27,628 |
Schedule of future minimum rental income | The Company receives rents from the lease of office and retail space in its corporate headquarters building. Rental income is included in noninterest expense as an offset to rental expense. Future minimum rental income under these leases are listed below. 2020 2021 $ 434 2022 500 2023 506 2024 513 2025 521 Thereafter 1,218 Total $ 3,692 |
Bloomington, Downtown Minneapolis, St Paul, and Uptown Minneapolis | |
Premises and Equipment | |
Schedule of future minimum rent commitments | Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2020, pertaining to banking premises in Bloomington, Downtown Minneapolis, St. Paul and Uptown Minneapolis (Drive-Up), total future minimum rent commitments under the leases are as follows: 2020 2021 $ 337 2022 328 2023 319 2024 325 2025 331 Thereafter 804 Total $ 2,444 |
Greenwood Location | |
Premises and Equipment | |
Schedule of future minimum rent commitments | The Greenwood location is leased pursuant to the terms of a non-cancelable lease agreement with Bridgewater Properties Greenwood, LLC, a related party through common ownership, in effect at December 31, 2020. The lease contains one option to extend the lease for a period of five years. Future minimum rent commitments under the operating lease are listed below. 2020 2021 $ 165 2022 171 2023 174 2024 178 2025 181 Thereafter 108 Total $ 977 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets | |
Summary of analysis of intangible assets | The following table presents a summary of intangible assets at December 31, 2020 and 2019: December 31, 2020 2019 Core Deposit Intangible $ 1,093 $ 1,093 Favorable Lease 445 445 Subtotal 1,538 1,538 Accumulated Amortization (868) (677) Totals $ 670 $ 861 |
Summary of estimated future amortization of the core deposit premium intangible and favorable lease asset | The following table presents the estimated future amortization of the core deposit intangible and favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2020. Core Deposit Favorable Intangible Lease 2021 $ 157 $ 34 2022 157 34 2023 65 34 2024 — 34 2025 — 34 Thereafter — 121 Totals $ 379 $ 291 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits. | |
Schedule of composition of deposits | The following table presents the composition of deposits at December 31, 2020 and 2019: December 31, 2020 2019 Transaction Deposits $ 1,038,193 $ 712,136 Savings and Money Market Deposits 657,617 516,785 Time Deposits 353,543 360,027 Brokered Deposits 452,283 234,362 Totals $ 2,501,636 $ 1,823,310 |
Summary of scheduled maturities of brokered and customer time deposits | The following table presents the scheduled maturities of brokered and customer time deposits at December 31, 2020: 2020 Less than 1 Year $ 338,261 1 to 2 Years 51,455 2 to 3 Years 63,018 3 to 4 Years 84,964 4 to 5 Years 108,463 Totals $ 646,161 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Summary of interest rate swaps | The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 49,696 $ 2,701 $ 7,140 $ 150 Liabilities 49,696 (2,701) 7,140 (150) Total $ 99,392 $ — $ 14,280 $ — |
Derivative Instruments and Hedging Activities | The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of December 31, 2020 and 2019: 2020 2019 Notional Amount $ 111,000 $ 48,000 Weighted Average Pay Rate 1.26 % 1.89 % Weighted Average Receive Rate 0.22 % 2.25 % Weighted Average Maturity (Years) 3.95 3.53 Net Unrealized Gain (Loss) $ (3,410) $ (618) |
Effect of derivative instruments in cash flow hedging relationships | The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the year ended December 31, 2020, 2019 and 2018: Year Ended December 31, (dollars in thousands) 2020 2019 2018 Derivatives in Location of Gain or Gain (Loss) Cash Flow Hedging (Loss) Reclassified Reclassified from Relationships from AOCI into Income AOCI into Earnings Interest rate swaps Interest expense $ (579) $ 9 $ — Interest rate caps Interest expense — — — |
Cash flow hedge | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Summary of interest rate swaps | The following table presents a summary of the Company’s interest rate contracts as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 5,000 $ 56 $ 18,000 $ 134 Liabilities 106,000 (3,466) 30,000 (752) Interest rate cap agreements: Assets 50,000 2,834 — — |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Bank Advances and Other Borrowings | |
Schedule of FHLB advances, by maturity | The following table presents FHLB advances, by maturity, at December 31, 2020 and 2019: 2020 2019 Weighted Weighted Average Total Average Total Rate Outstanding Rate Outstanding 2020 N/A $ — 1.76 % $ 10,000 2021 1.99 % 15,000 1.99 15,000 2022 N/A — 2.50 29,000 2023 N/A — 2.93 45,000 2024 1.66 22,500 2.20 27,500 2025 1.22 16,000 3.29 10,000 2026 0.78 4,000 N/A — Totals $ 57,500 $ 136,500 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions | |
Schedule of loans made between related parties | In the ordinary course of business, the Company has granted loans to executive officers, directors, principal shareholders, and their affiliates (related parties). The following table presents the activity associated with loans made between related parties for the years ended December 31, 2020 and 2019: 2020 2019 Beginning Balance $ 37,483 $ 39,454 New Loans and Advances 8,076 13,298 Repayments (11,429) (15,269) Totals $ 34,130 $ 37,483 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Summary of allocation of federal and state income taxes | The following table presents the allocation of federal and state income taxes between current and deferred portions as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Current Tax Provision $ 11,062 $ 7,670 $ 6,522 Deferred Tax Benefit (2,590) (747) (1,298) Total Income Tax Provision $ 8,472 $ 6,923 $ 5,224 |
Statutory federal income tax rate and the effective tax rates | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Amount Percent Amount Percent Amount Percent Amount of Statutory Rate $ 7,489 21.0 % $ 8,048 21.0 % $ 6,750 21.0 % State Income Taxes (Net of Federal Income Tax Benefit) 3,014 8.5 2,711 7.1 2,755 8.6 Interest on Investment Securities and Loans Exempt From Federal Income Tax (702) (2.0) (734) (1.9) (719) (2.2) Tax Credits (770) (2.1) (2,781) (7.3) (3,207) (10.0) Other Differences (559) (1.6) (321) (0.8) (355) (1.1) Totals $ 8,472 23.8 % $ 6,923 18.1 % $ 5,224 16.3 % |
Summary of components of the net deferred tax asset | The following table presents the components of the net deferred tax asset included in other assets, as of December 31, 2020 and 2019: 2020 2019 Depreciation $ (986) $ (231) Allowance for Loan Losses 9,848 6,342 Unrealized (Gain) Loss on Securities Available for Sale (2,426) (1,399) Unrealized (Gain) Loss on Cash Flow Hedges 677 130 Prepaid Expenses (522) (50) Deferred Compensation 711 742 Deferred Loan Fees 806 599 Other (95) (230) Totals $ 8,013 $ 5,903 |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tax Credit Investments | |
Summary of investments in qualified affordable housing projects and other tax credit investments | The following table presents a summary of the Company’s investments in qualified affordable housing projects and other tax credit investments at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 1,867 $ — $ 2,148 $ — Federal Historic Tax Credit (FHTC) Equity 2,198 1,858 2,262 3,395 Total $ 4,065 $ 1,858 $ 4,410 $ 3,395 (1) All commitments are expected to be paid by the Company by December 31, 2021. Amortization Tax Benefit Expense (1) Recognized (2) Year Ended December 31, 2020 LIHTC $ 281 $ (330) FHTC 738 (1,056) Total $ 1,019 $ (1,386) Year Ended December 31, 2019 LIHTC $ 289 $ (330) FHTC 3,225 (3,687) Total $ 3,514 $ (4,017) Year Ended December 31, 2018 LIHTC $ 310 $ (346) FHTC 3,293 (3,782) Total $ 3,603 $ (4,128) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss. |
Schedule of amortization expense and tax benefit for qualified affordable housing projects and other tax credit investments |
Commitments, Contingencies an_2
Commitments, Contingencies and Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, Contingencies and Credit Risk | |
Schedule of commitments outstanding | The following commitments were outstanding at December 31, 2020 and 2019: December 31, December 31, 2020 2019 Unfunded Commitments Under Lines of Credit $ 644,338 $ 500,962 Letters of Credit 90,206 79,225 Totals $ 734,544 $ 580,187 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock Options and Restricted Stock | |
Summary of valuation assumptions used to determine the fair value of option award | The weighted average assumptions used in the model for valuing stock option grants in 2020 is as follows: December 31, 2020 Dividend Yield — % Expected Life 7 Years Expected Volatility 44.14 % Risk-Free Interest Rate 0.68 % |
Summary of the status of the Company's outstanding stock options | The following table presents a summary of the status of the Company’s outstanding stock options for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Outstanding at Beginning of Year 1,961,650 $ 7.08 1,807,100 $ 6.24 Granted 60,000 10.61 238,000 12.47 Exercised (74,400) 4.26 (74,850) 3.45 Forfeitures (33,000) 7.47 (8,600) 10.65 Outstanding at End of Year 1,914,250 $ 7.29 1,961,650 $ 7.08 Options Exercisable at End of Year 1,205,350 $ 5.96 992,050 $ 5.01 |
Summary of information pertaining to options outstanding based on range of exercise price | The following table presents information pertaining to options outstanding at December 31, 2020: Options Outstanding Options Exercisable Weighted Average Number of Weighted Average Remaining Contractual Number of Weighted Average Range of Exercise Prices Options Exercise Price Life in Years Options Exercise Price $ 2.13 - 3.99 522,750 $ 2.94 3.0 522,750 $ 2.94 7.00 - 7.99 968,500 7.47 6.8 576,100 7.47 8.00 - 8.99 25,000 8.76 9.3 — — 10.00 - 10.99 10,000 10.08 9.4 — — 11.00 - 11.99 85,000 11.27 8.4 22,000 11.34 12.00 - 12.99 278,000 12.89 8.6 74,500 12.91 13.00 - 13.99 25,000 13.22 7.4 10,000 13.22 Totals 1,914,250 $ 7.29 6.1 1,205,350 $ 5.96 |
Summary of analysis of nonvested options to purchase shares of the Company's stock issued and outstanding | The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2020: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2019 969,600 $ 3.08 Granted 60,000 4.39 Vested (287,700) 2.98 Forfeited (33,000) 2.80 Nonvested Options at December 31, 2020 708,900 $ 3.24 |
Summary of the status of the Company's outstanding restricted stock awards | The following table presents an analysis of nonvested restricted stock awards outstanding for the year ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Weighted Weighted Number of Average Grant Average Shares Date Fair Value Shares Exercise Price Nonvested at December 31, 2019 132,960 $ 12.92 — $ — Granted 18,641 10.29 132,960 12.92 Vested (32,439) 12.92 — — Forfeited (8,200) 10.91 — — Nonvested at December 31, 2020 110,962 $ 12.63 132,960 $ 12.92 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital | |
Summary of company and the Bank's capital amounts and ratios | The following tables present the capital amounts and ratios for the Company and the Bank as of December 31, 2020 and 2019: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-based Capital $ 360,198 14.58 % $ 197,604 8.00 % $ 259,355 10.50 % N/A N/A Tier 1 Risk-based Capital 255,530 10.35 148,203 6.00 209,954 8.50 N/A N/A Common Equity Tier 1 Capital 255,530 10.35 111,152 4.50 172,904 7.00 N/A N/A Tier 1 Leverage Ratio 255,530 9.28 110,168 4.00 110,168 4.00 N/A N/A Bank: Total Risk-based Capital $ 330,380 13.37 % $ 197,629 8.00 % $ 259,388 10.50 % $ 247,036 10.00 % Tier 1 Risk-based Capital 299,447 12.12 148,222 6.00 209,981 8.50 197,629 8.00 Common Equity Tier 1 Capital 299,447 12.12 111,166 4.50 172,925 7.00 160,574 6.50 Tier 1 Leverage Ratio 299,447 10.89 109,972 4.00 109,972 4.00 137,465 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-based Capital $ 269,613 12.98 % $ 166,163 8.00 % $ 218,089 10.50 % N/A N/A Tier 1 Risk-based Capital 236,533 11.39 124,623 6.00 176,549 8.50 N/A N/A Common Equity Tier 1 Capital 236,533 11.39 93,467 4.50 145,393 7.00 N/A N/A Tier 1 Leverage Ratio 236,533 10.69 88,498 4.00 88,498 4.00 N/A N/A Bank: Total Risk-based Capital $ 252,501 12.16 % $ 166,137 8.00 % $ 218,055 10.50 % $ 207,671 10.00 % Tier 1 Risk-based Capital 243,461 11.72 124,603 6.00 176,521 8.50 166,137 8.00 Common Equity Tier 1 Capital 243,461 11.72 93,452 4.50 145,370 7.00 134,986 6.50 Tier 1 Leverage Ratio 243,461 11.01 88,455 4.00 88,455 4.00 110,569 5.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement | |
Summary of balances of the assets and liabilities measured at fair value on a recurring basis | The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following table presents the balances of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: Municipal Bonds $ — $ 115,012 $ — $ 115,012 Mortgage-Backed Securities — 124,260 — 124,260 Corporate Securities — 72,155 — 72,155 SBA Securities — 40,107 — 40,107 Asset-Backed Securities — 39,095 — 39,095 Interest Rate Caps — 2,834 — 2,834 Interest Rate Swaps — 2,757 — 2,757 Total Fair Value of Financial Assets $ — $ 396,220 $ — $ 396,220 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 6,167 $ — $ 6,167 Total Fair Value of Financial Liabilities $ — $ 6,167 $ — $ 6,167 December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 4,998 $ — $ — $ 4,998 Municipal Bonds — 105,743 — 105,743 Mortgage-Backed Securities — 64,728 — 64,728 Corporate Securities — 50,176 — 50,176 SBA Securities — 49,559 — 49,559 Asset-Backed Securities — 14,673 — 14,673 Interest Rate Swaps — 284 — 284 Total Fair Value of Financial Assets $ 4,998 $ 285,163 $ — $ 290,161 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 902 $ — $ 902 Total Fair Value of Financial Liabilities $ — $ 902 $ — $ 902 |
Summary of net impairment losses related to nonrecurring fair value measurements of certain asset | The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets for the periods ended December 31, 2020, 2019 and 2018: December 31, 2020 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 80 $ — $ 50 Totals $ — $ 80 $ — $ 50 December 31, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 75 $ — $ 206 Totals $ — $ 75 $ — $ 206 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396 |
Summary of carrying amount and estimated fair values of financial instruments | The following tables present the carrying amounts and estimated fair values of financial instruments at December 31, 2020 and 2019: December 31, 2020 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 160,675 $ 160,675 $ — $ — $ 160,675 Bank-Owned Certificates of Deposit 2,860 — 2,908 — 2,908 Securities Available for Sale 390,629 — 390,629 — 390,629 FHLB Stock, at Cost 5,027 — 5,027 — 5,027 Loans, Net 2,282,436 — 2,309,421 — 2,309,421 Accrued Interest Receivable 9,172 — 9,172 — 9,172 Interest Rate Caps 2,834 — 2,834 — 2,834 Interest Rate Swaps 2,757 — 2,757 — 2,757 Financial Liabilities: Deposits $ 2,501,636 $ — $ 2,509,148 $ — $ 2,509,148 Notes Payable 11,000 — 11,001 — 11,001 FHLB Advances 57,500 — 58,830 — 58,830 Subordinated Debentures 73,739 — 74,769 — 74,769 Accrued Interest Payable 1,615 — 1,615 — 1,615 Interest Rate Swaps 6,167 — 6,167 — 6,167 December 31, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 31,935 $ 31,935 $ — $ — $ 31,935 Bank-Owned Certificates of Deposit 2,654 — 2,677 — 2,677 Securities Available for Sale 289,877 4,998 284,879 — 289,877 FHLB Stock, at Cost 7,824 — 7,824 — 7,824 Loans, Net 1,884,000 — 1,891,987 — 1,891,987 Accrued Interest Receivable 6,775 — 6,775 — 6,775 Interest Rate Swaps 284 — 284 — 284 Financial Liabilities: Deposits $ 1,823,310 $ — $ 1,821,915 $ — $ 1,821,915 Notes Payable 13,000 — 13,022 — 13,022 FHLB Advances 136,500 — 141,152 — 141,152 Subordinated Debentures 24,733 — 25,309 — 25,309 Accrued Interest Payable 1,982 — 1,982 — 1,982 Interest Rate Swaps 902 — 902 — 902 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Summary of components of other comprehensive income (loss) | The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018. Before Tax Tax Effect Net of Tax Year Ended December 31, 2020 Net Unrealized Gain on Available for Sale Securities $ 6,394 $ (1,343) $ 5,051 Less: Reclassification Adjustment for Net Gains Included in Net Income (1,503) 316 (1,187) Total Unrealized Gain 4,891 (1,027) 3,864 Net Unrealized Loss on Cash Flow Hedge (3,185) 669 (2,516) Less: Reclassification Adjustment for Losses Included in Net Income 579 (122) 457 Total Unrealized Loss (2,606) 547 (2,059) Other Comprehensive Gain $ 2,285 $ (480) $ 1,805 Year Ended December 31, 2019 Net Unrealized Gain on Available for Sale Securities $ 9,514 $ (1,998) $ 7,516 Less: Reclassification Adjustment for Net Gains Included in Net Income (516) 109 (407) Total Unrealized Gain 8,998 (1,889) 7,109 Net Unrealized Loss on Cash Flow Hedge (962) 202 (760) Less: Reclassification Adjustment for Gains Included in Net Income (9) 2 (7) Total Unrealized Loss (971) 204 (767) Other Comprehensive Gain $ 8,027 $ (1,685) $ 6,342 Year Ended December 31, 2018 Net Unrealized Loss on Available for Sale Securities $ (3,804) $ 852 $ (2,952) Less: Reclassification Adjustment for Net Losses Included in Net Income 125 (26) 99 Total Unrealized Loss (3,679) 826 (2,853) Net Unrealized Gain on Cash Flow Hedge 9 (2) 7 Less: Reclassification Adjustment for Gains Included in Net Income — — — Total Unrealized Gain 9 (2) 7 Other Comprehensive Loss $ (3,670) $ 824 $ (2,846) |
Summary of changes in each component of accumulated other comprehensive income (loss), net of tax | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2020, 2019 and 2018. Accumulated Available For Other Comprehensive Sale Securities Cash Flow Hedge Income (Loss) Year Ended December 31, 2020 Balance at Beginning of Year $ 5,263 $ (489) $ 4,774 Other Comprehensive Income (Loss) Before Reclassifications 5,051 (2,516) 2,535 Amounts Reclassified from Accumulated Other Comprehensive Income (1,187) 457 (730) Net Other Comprehensive Income (Loss) During Period 3,864 (2,059) 1,805 Balance at End of Year $ 9,127 $ (2,548) $ 6,579 Year Ended December 31, 2019 Balance at Beginning of Year $ (1,846) $ 278 $ (1,568) Other Comprehensive Income (Loss) Before Reclassifications 7,516 (760) 6,756 Amounts Reclassified from Accumulated Other Comprehensive Income (407) (7) (414) Net Other Comprehensive Income (Loss) During Period 7,109 (767) 6,342 Balance at End of Year $ 5,263 $ (489) $ 4,774 Year Ended December 31, 2018 Balance at Beginning of Year $ 860 $ 224 $ 1,084 Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act 147 47 194 Other Comprehensive Income (Loss) Before Reclassifications (2,952) 7 (2,945) Amounts Reclassified from Accumulated Other Comprehensive Income 99 — 99 Net Other Comprehensive Income (Loss) During Period (2,853) 7 (2,846) Balance at End of Year $ (1,846) $ 278 $ (1,568) |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Financial Information | |
Schedule of Condensed Balance Sheets | December 31, December 31, 2020 2019 ASSETS Cash and Cash Equivalents $ 37,880 $ 27,315 Investment in Subsidiaries 311,329 253,456 Premises and Equipment, Net 774 795 Other Assets 1,437 2,181 Total Assets $ 351,420 $ 283,747 LIABILITIES AND EQUITY LIABILITIES Notes Payable $ 11,000 $ 13,000 Subordinated Debentures, Net of Issuance Costs 73,739 24,733 Accrued Interest Payable 724 713 Other Liabilities 552 507 Total Liabilities 86,015 38,953 SHAREHOLDERS’ EQUITY Preferred Stock—$0.01 par value Preferred Stock—Authorized 10,000,000 — — Common Stock—$0.01 par value Voting Common Stock—Authorized 75,000,000 281 290 Additional Paid‑In Capital 103,714 112,093 Retained Earnings 154,831 127,637 Accumulated Other Comprehensive Income 6,579 4,774 Total Shareholders’ Equity 265,405 244,794 Total Liabilities and Shareholders' Equity $ 351,420 $ 283,747 |
Schedule of Condensed Statements of Income | December 31, December 31, December 31, 2020 2019 2018 INCOME Dividend Income $ 1,300 $ 1,040 $ 1,100 Interest Income 19 27 3 Other Income 179 158 136 Total Income 1,498 1,225 1,239 EXPENSE Interest Expense 3,547 2,056 2,162 Other Expenses 1,412 996 1,152 Total Interest Expense 4,959 3,052 3,314 LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS (3,461) (1,827) (2,075) Income Tax Benefit 1,323 776 924 LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS (2,138) (1,051) (1,151) Equity in Undistributed Earnings 29,332 32,454 28,071 NET INCOME $ 27,194 $ 31,403 $ 26,920 |
Schedule of Condensed Statements of Cash Flows | December 31, December 31, December 31, 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 27,194 $ 31,403 $ 26,920 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries (29,332) (32,454) (28,071) Changes in Other Assets and Liabilities 234 311 (368) Net Cash Used by Operating Activities (1,904) (740) (1,519) CASH FLOWS FROM INVESTING ACTIVITIES Net (Increase) Decrease in Loans 742 (742) — Investment in Subsidiaries (25,000) — (25,000) Net Cash Used in Investing Activities (24,258) (742) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable (2,000) (2,000) (2,000) Proceeds from Issuance of Subordinated Debt 48,783 — — Stock Options Exercised 317 258 106 Stock Repurchases (10,373) (14,959) — Issuance of Common Stock — — 58,857 Net Cash Provided (Used) by Financing Activities 36,727 (16,701) 56,963 NET CHANGE IN CASH AND CASH EQUIVALENTS 10,565 (18,183) 30,444 Cash and Cash Equivalents Beginning 27,315 45,498 15,054 Cash and Cash Equivalents Ending $ 37,880 $ 27,315 $ 45,498 |
Quarterly Condensed Financial_2
Quarterly Condensed Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Condensed Financial Information (Unaudited) | |
Schedule of unaudited quarterly condensed financial information | The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2020 and 2019: 2020 Quarter Ended March 31 June 30 September 30 December 31 (dollars in thousands) Interest Income $ 27,468 $ 28,166 $ 28,493 $ 30,699 Interest Expense 7,366 6,824 6,814 5,858 Net Interest Income 20,102 21,342 21,679 24,841 Provision for Loan Losses 2,100 3,000 3,750 3,900 Net Interest Income after Provision for Loan Losses 18,002 18,342 17,929 20,941 Noninterest Income 1,719 1,977 1,157 986 Noninterest Expense 9,746 10,711 9,672 15,258 Income Before Income Taxes 9,975 9,608 9,414 6,669 Provision for Income Taxes 2,532 2,010 2,240 1,690 Net Income $ 7,443 $ 7,598 $ 7,174 $ 4,979 Earnings per share Basic $ 0.26 $ 0.26 $ 0.25 $ 0.18 Diluted $ 0.25 $ 0.26 $ 0.25 $ 0.17 2019 Quarter Ended March 31 June 30 September 30 December 31 (dollars in thousands) Interest Income $ 24,267 $ 25,520 $ 26,572 $ 27,419 Interest Expense 7,136 7,382 7,637 7,491 Net Interest Income 17,131 18,138 18,935 19,928 Provision for Loan Losses 600 600 900 600 Net Interest Income after Provision for Loan Losses 16,531 17,538 18,035 19,328 Noninterest Income 634 1,134 946 1,112 Noninterest Expense 7,885 9,474 9,084 10,489 Income Before Income Taxes 9,280 9,198 9,897 9,951 Provision for Income Taxes 2,262 1,189 2,092 1,380 Net Income $ 7,018 $ 8,009 $ 7,805 $ 8,571 Earnings per share Basic $ 0.23 $ 0.27 $ 0.27 $ 0.30 Diluted $ 0.23 $ 0.26 $ 0.27 $ 0.29 |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Description of the Business and Summary of Significant Accounting Policies | ||
Bank-owned certificates of deposit mature | 5 years | |
Average balance required to be maintained by bank | $ | $ 0 | $ 776 |
Number of Operating Segments | segment | 1 | |
Loans with LIBOR index rate (as a percent) | 9.00% | |
Paycheck Protection Program (PPP), CARES Act | ||
Description of the Business and Summary of Significant Accounting Policies | ||
Interest rate on loans (as a percent) | 1.00% | |
Paycheck Protection Program (PPP), CARES Act | Minimum | ||
Description of the Business and Summary of Significant Accounting Policies | ||
Term of loan | 2 years | |
Paycheck Protection Program (PPP), CARES Act | Maximum | ||
Description of the Business and Summary of Significant Accounting Policies | ||
Term of loan | 5 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share | |||||||||||
Anti dilutive securities excluded from the calculation of EPS | 732,433 | 303,000 | 130,000 | ||||||||
Net Income Available to Common Shareholders | $ 4,979 | $ 7,174 | $ 7,598 | $ 7,443 | $ 8,571 | $ 7,805 | $ 8,009 | $ 7,018 | $ 27,194 | $ 31,403 | $ 26,920 |
Weighted Average Common Stock Outstanding: | |||||||||||
Weighted Average Common Stock Outstanding (Basic) | 28,582,064 | 29,358,644 | 29,001,393 | ||||||||
Dilutive Effect of Stock Compensation | 588,156 | 638,132 | 434,821 | ||||||||
Weighted Average Common Stock Outstanding (Dilutive) | 29,170,220 | 29,996,776 | 29,436,214 | ||||||||
Basic Earnings per Common Share (in dollars per share) | $ 0.18 | $ 0.25 | $ 0.26 | $ 0.26 | $ 0.30 | $ 0.27 | $ 0.27 | $ 0.23 | $ 0.95 | $ 1.07 | $ 0.93 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.17 | $ 0.25 | $ 0.26 | $ 0.25 | $ 0.29 | $ 0.27 | $ 0.26 | $ 0.23 | $ 0.93 | $ 1.05 | $ 0.91 |
Bank-Owned Certificates of De_3
Bank-Owned Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Certificates of deposit in other financial institutions by maturity | ||
One Year or Less | $ 980 | $ 1,229 |
After One Year Through Five Years | 1,880 | 1,425 |
Certificates of deposit in other financial institutions | $ 2,860 | $ 2,654 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | $ 379,076 | $ 283,216 |
Gross Unrealized Gains | 13,650 | 7,711 |
Gross Unrealized Losses | (2,097) | (1,050) |
Fair Value | 390,629 | 289,877 |
U.S. Treasury Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 4,990 | |
Gross Unrealized Gains | 8 | |
Fair Value | 4,998 | |
Municipal Bonds | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 105,975 | 99,441 |
Gross Unrealized Gains | 9,373 | 6,338 |
Gross Unrealized Losses | (336) | (36) |
Fair Value | 115,012 | 105,743 |
Mortgage-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 123,395 | 64,312 |
Gross Unrealized Gains | 2,029 | 697 |
Gross Unrealized Losses | (1,164) | (281) |
Fair Value | 124,260 | 64,728 |
Corporate Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 71,116 | 49,674 |
Gross Unrealized Gains | 1,240 | 633 |
Gross Unrealized Losses | (201) | (131) |
Fair Value | 72,155 | 50,176 |
SBA Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 40,455 | 50,126 |
Gross Unrealized Gains | 32 | 35 |
Gross Unrealized Losses | (380) | (602) |
Fair Value | 40,107 | 49,559 |
Asset-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 38,135 | 14,673 |
Gross Unrealized Gains | 976 | |
Gross Unrealized Losses | (16) | |
Fair Value | $ 39,095 | $ 14,673 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 86,545 | $ 55,293 |
Less Than 12 Months, Unrealized Losses | (1,642) | (460) |
12 Months or Greater, Fair Value | 32,545 | 35,524 |
12 Months or Greater, Unrealized Losses | (455) | (590) |
Fair Value | 119,090 | 90,817 |
Unrealized Losses | $ (2,097) | $ (1,050) |
Number of debt securities with unrealized losses | security | 150 | 110 |
Percentage of aggregate depreciation from amortized cost basis | 1.70% | 1.10% |
Municipal Bonds | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 12,023 | $ 2,760 |
Less Than 12 Months, Unrealized Losses | (329) | (23) |
12 Months or Greater, Fair Value | 223 | 1,390 |
12 Months or Greater, Unrealized Losses | (7) | (13) |
Fair Value | 12,246 | 4,150 |
Unrealized Losses | (336) | (36) |
Mortgage-Backed Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 45,120 | 32,276 |
Less Than 12 Months, Unrealized Losses | (1,163) | (242) |
12 Months or Greater, Fair Value | 1,699 | 3,098 |
12 Months or Greater, Unrealized Losses | (1) | (39) |
Fair Value | 46,819 | 35,374 |
Unrealized Losses | (1,164) | (281) |
Corporate Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 23,643 | 8,350 |
Less Than 12 Months, Unrealized Losses | (131) | (131) |
12 Months or Greater, Fair Value | 2,430 | |
12 Months or Greater, Unrealized Losses | (70) | |
Fair Value | 26,073 | 8,350 |
Unrealized Losses | (201) | (131) |
SBA Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 3,288 | 11,907 |
Less Than 12 Months, Unrealized Losses | (3) | (64) |
12 Months or Greater, Fair Value | 28,193 | 31,036 |
12 Months or Greater, Unrealized Losses | (377) | (538) |
Fair Value | 31,481 | 42,943 |
Unrealized Losses | (380) | $ (602) |
Asset-Backed Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 2,471 | |
Less Than 12 Months, Unrealized Losses | (16) | |
Fair Value | 2,471 | |
Unrealized Losses | $ (16) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual maturities, amortized cost | ||
Due in One Year or Less | $ 6,949 | |
Due After One Year Through Five Years | 58,476 | |
Due After Five Years Through 10 Years | 92,936 | |
Due After 10 Years | 18,730 | |
Subtotal | 177,091 | |
Totals | 379,076 | $ 283,216 |
Contractual maturities, fair value | ||
Due in One Year or Less | 6,985 | |
Due After One Year Through Five Years | 60,244 | |
Due After Five Years Through 10 Years | 98,500 | |
Due After 10 Years | 21,438 | |
Subtotal | 187,167 | |
Totals | 390,629 | 289,877 |
Mortgage-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 123,395 | |
Totals | 123,395 | 64,312 |
Contractual maturities, fair value | ||
Contractual securities | 124,260 | |
Totals | 124,260 | 64,728 |
SBA Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 40,455 | |
Totals | 40,455 | 50,126 |
Contractual maturities, fair value | ||
Contractual securities | 40,107 | |
Totals | 40,107 | 49,559 |
Asset-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 38,135 | |
Totals | 38,135 | 14,673 |
Contractual maturities, fair value | ||
Contractual securities | 39,095 | |
Totals | $ 39,095 | $ 14,673 |
Securities - Available for Sale
Securities - Available for Sale Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | |||
Proceeds From Sales of Securities | $ 40,862 | $ 42,864 | $ 24,684 |
Gross Gains on Sales | 1,592 | 774 | 290 |
Gross Losses on Sales | $ (89) | $ (258) | $ (415) |
Loans - Components of loans (De
Loans - Components of loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Components of loans | ||||
Total Loans, Gross | $ 2,326,428 | $ 1,912,038 | ||
Allowance for Loan Losses | (34,841) | (22,526) | $ (20,031) | $ (16,502) |
Net Deferred Loan Fees | (9,151) | (5,512) | ||
Total Loans, Net | 2,282,436 | 1,884,000 | ||
Commercial | ||||
Components of loans | ||||
Total Loans, Gross | 304,220 | 276,035 | ||
Allowance for Loan Losses | (5,703) | (3,058) | (2,898) | (2,435) |
Paycheck Protection Program (PPP), CARES Act | ||||
Components of loans | ||||
Total Loans, Gross | 138,454 | |||
Allowance for Loan Losses | (70) | |||
Construction and Land Development | ||||
Components of loans | ||||
Total Loans, Gross | 170,217 | 196,776 | ||
Allowance for Loan Losses | (2,491) | (2,202) | (2,451) | (1,892) |
Real Estate Mortgage | ||||
Components of loans | ||||
Total Loans, Gross | 1,705,848 | 1,434,754 | ||
1-4 Family Mortgage | ||||
Components of loans | ||||
Total Loans, Gross | 294,479 | 260,611 | ||
Allowance for Loan Losses | (3,972) | (2,839) | (2,597) | (2,317) |
Multifamily | ||||
Components of loans | ||||
Total Loans, Gross | 626,465 | 515,014 | ||
Allowance for Loan Losses | (9,517) | (5,824) | (4,644) | (3,170) |
CRE Owner Occupied | ||||
Components of loans | ||||
Total Loans, Gross | 75,604 | 66,584 | ||
Allowance for Loan Losses | (1,162) | (792) | (808) | (956) |
CRE Non-owner Occupied | ||||
Components of loans | ||||
Total Loans, Gross | 709,300 | 592,545 | ||
Allowance for Loan Losses | (10,991) | (6,972) | (5,872) | (5,087) |
Consumer and other | ||||
Components of loans | ||||
Total Loans, Gross | 7,689 | 4,473 | ||
Allowance for Loan Losses | $ (203) | $ (85) | $ (65) | $ (60) |
Loans - Allowance for loan loss
Loans - Allowance for loan losses by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | $ 22,526 | $ 20,031 | $ 22,526 | $ 20,031 | $ 16,502 | ||||||||
Provision for Loan Losses | $ 3,900 | $ 3,750 | $ 3,000 | 2,100 | $ 600 | $ 900 | $ 600 | 600 | 12,750 | 2,700 | 3,575 | ||
Loans Charged-off | (517) | (388) | (421) | ||||||||||
Recoveries of Loans | 82 | 183 | 375 | ||||||||||
Total Ending Allowance Balance | 34,841 | 22,526 | 34,841 | 22,526 | 20,031 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | $ 50 | $ 45 | |||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 34,791 | 22,481 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 34,841 | 22,526 | 22,526 | 20,031 | 22,526 | 20,031 | 20,031 | 34,841 | 22,526 | ||||
Loans, Individually Evaluated for Impairment | 15,164 | 1,758 | |||||||||||
Loans, Collectively Evaluated for Impairment | 2,311,264 | 1,910,280 | |||||||||||
Totals | 2,326,428 | 1,912,038 | |||||||||||
Commercial | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 3,058 | 2,898 | 3,058 | 2,898 | 2,435 | ||||||||
Provision for Loan Losses | 2,984 | 312 | 448 | ||||||||||
Loans Charged-off | (346) | (160) | (10) | ||||||||||
Recoveries of Loans | 7 | 8 | 25 | ||||||||||
Total Ending Allowance Balance | 5,703 | 3,058 | 5,703 | 3,058 | 2,898 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 37 | 31 | |||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 5,666 | 3,027 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 5,703 | 3,058 | 3,058 | 2,898 | 3,058 | 3,058 | 2,898 | 5,703 | 3,058 | ||||
Loans, Individually Evaluated for Impairment | 239 | 273 | |||||||||||
Loans, Collectively Evaluated for Impairment | 303,981 | 275,762 | |||||||||||
Totals | 304,220 | 276,035 | |||||||||||
Paycheck Protection Program (PPP), CARES Act | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Provision for Loan Losses | 70 | ||||||||||||
Total Ending Allowance Balance | 70 | 70 | |||||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 70 | ||||||||||||
Loans and Leases Receivable, Allowance, Total | 70 | 70 | 70 | ||||||||||
Loans, Collectively Evaluated for Impairment | 138,454 | ||||||||||||
Totals | 138,454 | ||||||||||||
Construction and Land Development | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 2,202 | 2,451 | 2,202 | 2,451 | 1,892 | ||||||||
Provision for Loan Losses | 289 | (250) | 632 | ||||||||||
Loans Charged-off | (358) | ||||||||||||
Recoveries of Loans | 1 | 285 | |||||||||||
Total Ending Allowance Balance | 2,491 | 2,202 | 2,491 | 2,202 | 2,451 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2,491 | 2,202 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 2,491 | 2,202 | 2,202 | 2,451 | 2,202 | 2,202 | 2,451 | 2,491 | 2,202 | ||||
Loans, Individually Evaluated for Impairment | 156 | 176 | |||||||||||
Loans, Collectively Evaluated for Impairment | 170,061 | 196,600 | |||||||||||
Totals | 170,217 | 196,776 | |||||||||||
1-4 Family Mortgage | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 2,839 | 2,597 | 2,839 | 2,597 | 2,317 | ||||||||
Provision for Loan Losses | 1,223 | 269 | 242 | ||||||||||
Loans Charged-off | (144) | (195) | (21) | ||||||||||
Recoveries of Loans | 54 | 168 | 59 | ||||||||||
Total Ending Allowance Balance | 3,972 | 2,839 | 3,972 | 2,839 | 2,597 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 3,972 | 2,839 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 3,972 | 2,839 | 2,839 | 2,597 | 3,972 | 2,839 | 2,597 | 3,972 | 2,839 | ||||
Loans, Individually Evaluated for Impairment | 1,498 | 1,059 | |||||||||||
Loans, Collectively Evaluated for Impairment | 292,981 | 259,552 | |||||||||||
Totals | 294,479 | 260,611 | |||||||||||
Multifamily | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 5,824 | 4,644 | 5,824 | 4,644 | 3,170 | ||||||||
Provision for Loan Losses | 3,693 | 1,180 | 1,474 | ||||||||||
Total Ending Allowance Balance | 9,517 | 5,824 | 9,517 | 5,824 | 4,644 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 9,517 | 5,824 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 9,517 | 5,824 | 5,824 | 4,644 | 9,517 | 5,824 | 4,644 | 9,517 | 5,824 | ||||
Loans, Collectively Evaluated for Impairment | 626,465 | 515,014 | |||||||||||
Totals | 626,465 | 515,014 | |||||||||||
CRE Owner Occupied | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 792 | 808 | 792 | 808 | 956 | ||||||||
Provision for Loan Losses | 360 | (16) | (148) | ||||||||||
Recoveries of Loans | 10 | ||||||||||||
Total Ending Allowance Balance | 1,162 | 792 | 1,162 | 792 | 808 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 1,162 | 792 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 1,162 | 792 | 792 | 808 | 1,162 | 792 | 808 | 1,162 | 792 | ||||
Loans, Individually Evaluated for Impairment | 870 | 236 | |||||||||||
Loans, Collectively Evaluated for Impairment | 74,734 | 66,348 | |||||||||||
Totals | 75,604 | 66,584 | |||||||||||
CRE Non-owner Occupied | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 6,972 | 5,872 | 6,972 | 5,872 | 5,087 | ||||||||
Provision for Loan Losses | 4,019 | 1,100 | 785 | ||||||||||
Total Ending Allowance Balance | 10,991 | 6,972 | 10,991 | 6,972 | 5,872 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 10,991 | 6,972 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 10,991 | 6,972 | 6,972 | 5,872 | 6,972 | 6,972 | 5,872 | 10,991 | 6,972 | ||||
Loans, Individually Evaluated for Impairment | 12,388 | ||||||||||||
Loans, Collectively Evaluated for Impairment | 696,912 | 592,545 | |||||||||||
Totals | 709,300 | 592,545 | |||||||||||
Consumer and other | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 85 | 65 | 85 | 65 | 60 | ||||||||
Provision for Loan Losses | 134 | 47 | 31 | ||||||||||
Loans Charged-off | (27) | (33) | (32) | ||||||||||
Recoveries of Loans | 11 | 6 | 6 | ||||||||||
Total Ending Allowance Balance | 203 | 85 | 203 | 85 | 65 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 13 | 14 | |||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 190 | 71 | |||||||||||
Loans and Leases Receivable, Allowance, Total | 203 | 85 | 85 | 65 | 85 | 85 | 65 | 203 | 85 | ||||
Loans, Individually Evaluated for Impairment | 13 | 14 | |||||||||||
Loans, Collectively Evaluated for Impairment | 7,676 | 4,459 | |||||||||||
Totals | 7,689 | 4,473 | |||||||||||
Unallocated | |||||||||||||
Allowance for Loan Losses: | |||||||||||||
Beginning Balance | 754 | 696 | 754 | 696 | 585 | ||||||||
Provision for Loan Losses | (22) | 58 | 111 | ||||||||||
Total Ending Allowance Balance | 732 | 754 | 732 | 754 | 696 | ||||||||
Allowance for loan losses and the recorded investment | |||||||||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 732 | 754 | |||||||||||
Loans and Leases Receivable, Allowance, Total | $ 732 | $ 754 | $ 754 | $ 696 | $ 754 | $ 754 | $ 696 | $ 732 | $ 754 |
Loans - Impaired loans by loan
Loans - Impaired loans by loan segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | $ 15,034 | $ 1,638 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 15,641 | 2,434 |
Loans With An Allowance for Loan Losses, Recorded Investment | 130 | 120 |
Loans With An Allowance for Loan Losses, Principal Balance | 133 | 123 |
Total Recorded Investment | 15,164 | 1,758 |
Total Principal Balance | 15,774 | 2,557 |
Related Allowance | 50 | 45 |
Commercial | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 122 | 167 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 122 | 167 |
Loans With An Allowance for Loan Losses, Recorded Investment | 117 | 106 |
Loans With An Allowance for Loan Losses, Principal Balance | 120 | 109 |
Related Allowance | 37 | 31 |
Construction and Land Development | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 156 | 176 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 763 | 785 |
HELOC and 1-4 Family Junior Mortgage | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 884 | 302 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 884 | 489 |
1st REM - 1-4 Family | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 614 | 757 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 614 | 757 |
Consumer and other | ||
Impaired loans by loan segment | ||
Loans With An Allowance for Loan Losses, Recorded Investment | 13 | 14 |
Loans With An Allowance for Loan Losses, Principal Balance | 13 | 14 |
Related Allowance | 13 | 14 |
CRE Owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 870 | 236 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 870 | $ 236 |
CRE Non-owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 12,388 | |
Loans With No Related Allowance for Loan Losses, Principal Balance | $ 12,388 |
Loans - Average balances and in
Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 14,983 | $ 1,732 | $ 1,890 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 786 | 75 | 80 |
Loans With An Allowance for Loan Losses, Average Investment | 135 | 153 | 555 |
Loans With An Allowance for Loan Losses, Interest Recognized | 3 | 3 | 10 |
Total Average Investment | 15,118 | 1,885 | 2,445 |
Total Interest Recognized | 789 | 78 | 90 |
Commercial | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 145 | 188 | |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 10 | 13 | |
Loans With An Allowance for Loan Losses, Average Investment | 122 | 109 | 8 |
Loans With An Allowance for Loan Losses, Interest Recognized | 2 | 1 | |
Construction and Land Development | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 165 | 189 | 212 |
HELOC and 1-4 Family Junior Mortgage | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 824 | 326 | 158 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 42 | 9 | 9 |
Loans With An Allowance for Loan Losses, Average Investment | 324 | ||
1st REM - 1-4 Family | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 255 | ||
Loans With No Related Allowance for Loan Losses, Interest Recognized | 10 | ||
1st REM - Rentals | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 624 | 789 | 976 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 29 | 41 | 48 |
Multifamily | |||
Impaired loans by loan segment | |||
Loans With An Allowance for Loan Losses, Average Investment | 65 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | 3 | ||
CRE Owner Occupied | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 891 | 240 | 225 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 15 | 12 | 13 |
Loans With An Allowance for Loan Losses, Average Investment | 158 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | 7 | ||
CRE Non-owner Occupied | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | 12,334 | ||
Loans With No Related Allowance for Loan Losses, Interest Recognized | 690 | ||
Consumer and other | |||
Impaired loans by loan segment | |||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 64 | ||
Loans With An Allowance for Loan Losses, Average Investment | 13 | 44 | |
Loans With An Allowance for Loan Losses, Interest Recognized | $ 1 | $ 2 |
Loans - Risk category of loans
Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 2,326,428 | $ 1,912,038 |
Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 2,266,469 | 1,904,068 |
Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 44,795 | 5,275 |
Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 15,164 | 2,695 |
Commercial | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 304,220 | 276,035 |
Commercial | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 289,465 | 275,741 |
Commercial | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 14,516 | 21 |
Commercial | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 239 | 273 |
Paycheck Protection Program (PPP), CARES Act | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 138,454 | |
Paycheck Protection Program (PPP), CARES Act | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 138,454 | |
Construction and Land Development | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 170,217 | 196,776 |
Construction and Land Development | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 170,061 | 196,462 |
Construction and Land Development | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 138 | |
Construction and Land Development | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 156 | 176 |
HELOC and 1-4 Family Junior Mortgage | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 30,280 | 28,621 |
HELOC and 1-4 Family Junior Mortgage | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 29,396 | 28,483 |
HELOC and 1-4 Family Junior Mortgage | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 138 | |
HELOC and 1-4 Family Junior Mortgage | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 884 | |
1st REM - 1-4 Family | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 41,942 | 36,671 |
1st REM - 1-4 Family | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 41,239 | 36,370 |
1st REM - 1-4 Family | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 703 | 124 |
1st REM - 1-4 Family | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 177 | |
LOCs and 2nd REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 20,678 | 18,671 |
LOCs and 2nd REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 20,678 | 17,890 |
LOCs and 2nd REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 479 | |
LOCs and 2nd REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 302 | |
1st REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 201,579 | 176,648 |
1st REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 200,965 | 174,781 |
1st REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,287 | |
1st REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 614 | 580 |
Multifamily | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 626,465 | 515,014 |
Multifamily | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 626,465 | 515,014 |
CRE Owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 75,604 | 66,584 |
CRE Owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 74,734 | 65,411 |
CRE Owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 870 | 1,173 |
CRE Non-owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 709,300 | 592,545 |
CRE Non-owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 667,336 | 589,457 |
CRE Non-owner Occupied | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 29,576 | 3,088 |
CRE Non-owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 12,388 | |
Consumer and other | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 7,689 | 4,473 |
Consumer and other | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 7,676 | 4,459 |
Consumer and other | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 13 | $ 14 |
Loans - Recorded investment in
Loans - Recorded investment in past due loans by loan segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Aging of the recorded investment in past due loans by loan segment | ||
Current | $ 2,325,640 | $ 1,911,174 |
Nonaccrual | 775 | 461 |
Totals | 2,326,428 | 1,912,038 |
30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | 13 | 403 |
Commercial | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 304,211 | 276,028 |
Nonaccrual | 6 | 7 |
Totals | 304,220 | 276,035 |
Commercial | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | 3 | |
Paycheck Protection Program (PPP), CARES Act | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 138,454 | |
Totals | 138,454 | |
Construction and Land Development | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 170,061 | 196,600 |
Nonaccrual | 156 | 176 |
Totals | 170,217 | 196,776 |
HELOC and 1-4 Family Junior Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 30,280 | 28,621 |
Totals | 30,280 | 28,621 |
1st REM - 1-4 Family | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 41,942 | 36,671 |
Totals | 41,942 | 36,671 |
LOCs and 2nd REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 20,668 | 18,527 |
Nonaccrual | 144 | |
Totals | 20,678 | 18,671 |
LOCs and 2nd REM - Rentals | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | 10 | |
1st REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 201,579 | 176,114 |
Nonaccrual | 134 | |
Totals | 201,579 | 176,648 |
1st REM - Rentals | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | 400 | |
Multifamily | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 626,465 | 515,014 |
Totals | 626,465 | 515,014 |
CRE Owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 74,991 | 66,584 |
Nonaccrual | 613 | |
Totals | 75,604 | 66,584 |
CRE Non-owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 709,300 | 592,545 |
Totals | 709,300 | 592,545 |
Consumer and other | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 7,689 | 4,470 |
Totals | $ 7,689 | 4,473 |
Consumer and other | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | $ 3 |
Loans - Summary of loans modifi
Loans - Summary of loans modified in TDRs and those restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Loans | ||
Troubled Debt Restructurings, Number of Loans | 3 | 3 |
New Troubled Debt Restructurings, Post-Modification Outstanding Balance | $ | $ 421 | $ 452 |
Troubled Debt Restructurings That Subsequently Defaulted Within 12 Months of The Restructure Date, Number of Loans | 0 |
Loans - COVID loan modification
Loans - COVID loan modifications (Details) - COVID-19 related loan modifications $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)loan | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 66,552 |
Number of Loans | loan | 26 |
Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 10,046 |
Number of Loans | loan | 10 |
1-4 Family Mortgage | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 48 |
Number of Loans | loan | 1 |
Multifamily | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 23,636 |
Number of Loans | loan | 1 |
CRE Owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 613 |
Number of Loans | loan | 3 |
CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 32,209 |
Number of Loans | loan | 11 |
Interest Only | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 61,105 |
Number of Loans | loan | 22 |
Interest Only | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 5,212 |
Number of Loans | loan | 9 |
Interest Only | 1-4 Family Mortgage | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 48 |
Number of Loans | loan | 1 |
Interest Only | Multifamily | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 23,636 |
Number of Loans | loan | 1 |
Interest Only | CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 32,209 |
Number of Loans | loan | 11 |
Payment Deferral | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 613 |
Number of Loans | loan | 3 |
Payment Deferral | CRE Owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 613 |
Number of Loans | loan | 3 |
Extended Amortization | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,834 |
Number of Loans | loan | 1 |
Extended Amortization | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,834 |
Number of Loans | loan | 1 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premises and Equipment | |||
Subtotal | $ 54,897 | $ 32,600 | |
Accumulated Depreciation | (3,910) | (4,972) | |
Totals | 50,987 | 27,628 | |
Depreciation and Amortization | 1,206 | 1,008 | $ 761 |
Land | |||
Premises and Equipment | |||
Subtotal | 5,174 | 5,174 | |
Building | |||
Premises and Equipment | |||
Subtotal | $ 41,025 | 3,487 | |
Building | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 15 years | ||
Building | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 39 years | ||
Leasehold Improvements | |||
Premises and Equipment | |||
Subtotal | $ 2,538 | 3,344 | |
Leasehold Improvements | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 3 years | ||
Leasehold Improvements | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 10 years | ||
Furniture and Equipment | |||
Premises and Equipment | |||
Subtotal | $ 6,160 | 3,902 | |
Furniture and Equipment | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 2 years | ||
Furniture and Equipment | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 5 years | ||
Construction in Progress | |||
Premises and Equipment | |||
Subtotal | $ 16,693 |
Premises and Equipment - Lease
Premises and Equipment - Lease Expense (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Future Minimum Rent Commitments | |||
Rent expense | $ 1,178 | $ 1,264 | |
Rent Expense | $ 870 | ||
Bloomington, Downtown Minneapolis, St Paul, and Uptown Minneapolis | |||
Future Minimum Rent Commitments | |||
2021 | 337 | ||
2022 | 328 | ||
2023 | 319 | ||
2024 | 325 | ||
2025 | 331 | ||
Thereafter | 804 | ||
Totals | $ 2,444 | ||
Bloomington, Downtown Minneapolis, and St Paul | |||
Future Minimum Rent Commitments | |||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Number of options to extend the lease Term | item | 2 | ||
Lease Term | 5 years | ||
Uptown Minneapolis | |||
Future Minimum Rent Commitments | |||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Number of options to extend the lease Term | item | 1 | ||
Lease Term | 5 years | ||
Greenwood Location | |||
Future Minimum Rent Commitments | |||
2021 | $ 165 | ||
2022 | 171 | ||
2023 | 174 | ||
2024 | 178 | ||
2025 | 181 | ||
Thereafter | 108 | ||
Totals | $ 977 | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Number of options to extend the lease Term | item | 1 | ||
Lease Term | 5 years |
Premises and Equipment - Rental
Premises and Equipment - Rental Income (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Future Minimum Rental Income | |
2021 | $ 434 |
2022 | 500 |
2023 | 506 |
2024 | 513 |
2025 | 521 |
Thereafter | 1,218 |
Total | $ 3,692 |
Intangible Assets - (Details)
Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets | |||
Subtotal | $ 1,538 | $ 1,538 | |
Accumulated Amortization | (868) | (677) | |
Total | 670 | 861 | |
Amortization of Intangible Assets | 191 | 191 | $ 191 |
Core Deposits | |||
Intangible Assets | |||
Subtotal | 1,093 | 1,093 | |
Total | 379 | ||
Favorable Lease | |||
Intangible Assets | |||
Subtotal | 445 | $ 445 | |
Total | $ 291 |
Intangible Assets - Estimated f
Intangible Assets - Estimated future amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets | ||
Total | $ 670 | $ 861 |
Core Deposits | ||
Intangible Assets | ||
2021 | 157 | |
2022 | 157 | |
2023 | 65 | |
Total | 379 | |
Favorable Lease | ||
Intangible Assets | ||
2021 | 34 | |
2022 | 34 | |
2023 | 34 | |
2024 | 34 | |
2025 | 34 | |
Thereafter | 121 | |
Total | $ 291 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits, by Type [Abstract] | ||
Transaction Deposits | $ 1,038,193 | $ 712,136 |
Savings and Money Market Deposits | 657,617 | 516,785 |
Time Deposits | 353,543 | 360,027 |
Brokered Deposits | 452,283 | 234,362 |
Total Deposits | 2,501,636 | 1,823,310 |
Brokered money market accounts | $ 159,665 | $ 2,443 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Scheduled Maturities of Time Deposits | ||
Less than 1 Year | $ 338,261 | |
1 to 2 Years | 51,455 | |
2 to 3 Years | 63,018 | |
3 to 4 Years | 84,964 | |
4 to 5 Years | 108,463 | |
Totals | 646,161 | |
Aggregate time deposits greater | $ 96,102 | $ 118,318 |
Notes Payable (Details)
Notes Payable (Details) - Note Payable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Notes Payable | |||
Bank stock (as a percent) | 100.00% | ||
Principal payments | $ 500 | ||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | ||
Interest rate ( as a percent) | 2.55% | 4.09% | |
Unpaid principal balance | $ 11,000 | $ 13,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Non-hedge Derivatives (Details) - Interest Rate Swap - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | $ 49,696 | $ 7,140 |
Notional Amount, Liability | 49,696 | 7,140 |
Notional Amount | 99,392 | 14,280 |
Estimated Fair Value, Asset | 2,701 | 150 |
Estimated Fair Value, Liability | $ (2,701) | $ (150) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Derivatives (Details) - Cash flow hedge - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Hedging Derivatives | ||
Amount expected to be reclassified from AOCI into earnings | $ (868) | |
Interest Rate Swap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | $ 111,000 | $ 48,000 |
Weighted Average Pay Rate | 1.26% | 1.89% |
Weighted Average Receive Rate | 0.22% | 2.25% |
Derivative Weighted Average Maturity | 3 years 11 months 12 days | 3 years 6 months 10 days |
Net Unrealized Gain (Loss) | $ (3,410) | $ (618) |
Interest Rate Cap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | 50,000 | |
Initial premium paid | 2,689 | |
Amortization of interest rate cap premiums | $ 41 | |
Weighted Average Strike Rate | 0.75% |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Cash Flow Hedging Reclassification (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral posted | $ 8,526 | $ 1,404 |
Collateral received | 2,700 | |
Cash flow hedge | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 5,000 | 18,000 |
Notional Amount, Liability | 106,000 | 30,000 |
Estimated Fair Value, Asset | 56 | 134 |
Estimated Fair Value, Liability | (3,466) | $ (752) |
Cash flow hedge | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 50,000 | |
Estimated Fair Value, Asset | $ 2,834 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ 924 | $ 525 | $ (125) |
Amounts reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | 0 | 0 |
Amount expected to be reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | 0 | $ 0 |
Interest Rate Swap | Interest expense | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ (579) | $ 9 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances and Other Borrowings (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Federal Home Loan Bank Advances | ||
Federal Home Loan Bank Advances and Other Borrowings | ||
Principal balances | $ 739,912 | $ 690,609 |
Remaining available borrowings | 361,236 | 209,840 |
Federal Reserve Discount Window | ||
Federal Home Loan Bank Advances and Other Borrowings | ||
Principal balances | 120,692 | 159,568 |
Remaining available borrowings | $ 76,830 | 113,164 |
Federal Funds Purchased | ||
Federal Home Loan Bank Advances and Other Borrowings | ||
Number of business days | 1 | |
Federal Funds Purchased | $ 0 | $ 0 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances and Other Borrowings - Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Rate | ||
2020 | 1.76% | |
2021 | 1.99% | 1.99% |
2022 | 2.50% | |
2023 | 2.93% | |
2024 | 1.66% | 2.20% |
2025 | 1.22% | 3.29% |
2026 | 0.78% | |
Total Outstanding | ||
2020 | $ 10,000 | |
2021 | $ 15,000 | 15,000 |
2022 | 29,000 | |
2023 | 45,000 | |
2024 | 22,500 | 27,500 |
2025 | 16,000 | 10,000 |
2026 | 4,000 | |
Advances from Federal Home Loan Banks, Total | $ 57,500 | $ 136,500 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Thousands | Oct. 13, 2020 | Jun. 19, 2020 | Jul. 12, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subordinated Debentures | ||||||
Total amortization expense | $ 223 | $ 103 | $ 103 | |||
Subordinated Note Purchase Agreement | 5.875% Fixed-to-Floating Rate Subordinated Notes due 2027 | ||||||
Subordinated Debentures | ||||||
Aggregate principal amount | $ 25,000 | |||||
Percentage of face value at which notes are issued | 100.00% | |||||
Issuance costs | $ 516 | |||||
Amortization period of debt | 5 years | |||||
Total amortization expense | 103 | 103 | 103 | |||
Remaining to be amortized | 164 | 267 | 370 | |||
Fixed interest rate (as a percent) | 5.875% | |||||
Redemption percentage of the outstanding principal amount | 100.00% | |||||
Subordinated Note Purchase Agreement | 5.875% Fixed-to-Floating Rate Subordinated Notes due 2027 | LIBOR | ||||||
Subordinated Debentures | ||||||
Variable spread on debt | 3.88% | |||||
Subordinated Note Purchase Agreement | 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | ||||||
Subordinated Debentures | ||||||
Aggregate principal amount | $ 50,000 | |||||
Percentage of face value at which notes are issued | 100.00% | |||||
Issuance costs | $ 1,127 | |||||
Amortization period of debt | 5 years | |||||
Total amortization expense | $ 120 | $ 0 | $ 0 | |||
Fixed interest rate (as a percent) | 5.25% | |||||
Redemption percentage of the outstanding principal amount | 100.00% | |||||
Total amount in exchange offer | $ 50,000 | |||||
Amount exchanged | $ 47,000 | |||||
Subordinated Note Purchase Agreement | 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | SOFR | ||||||
Subordinated Debentures | ||||||
Variable spread on debt | 5.13% |
Related Party Transactions - Lo
Related Party Transactions - Loans and Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related-Party Transactions | ||
Beginning Balance | $ 37,483 | $ 39,454 |
New Loans and Advances | 8,076 | 13,298 |
Repayments | (11,429) | (15,269) |
Totals | 34,130 | 37,483 |
Due to Related Parties | $ 7,870 | $ 11,223 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | |||||||||||
Current Tax Provision | $ 11,062 | $ 7,670 | $ 6,522 | ||||||||
Deferred Tax Benefit | (2,590) | (747) | (1,298) | ||||||||
Total Income Tax Provision | $ 1,690 | $ 2,240 | $ 2,010 | $ 2,532 | $ 1,380 | $ 2,092 | $ 1,189 | $ 2,262 | $ 8,472 | $ 6,923 | $ 5,224 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amount | |||
Amount of Statutory Rate | $ 7,489 | $ 8,048 | $ 6,750 |
State Income Taxes (Net of Federal Income Tax Benefit) | 3,014 | 2,711 | 2,755 |
Interest on Investment Securities and Loans Exempt From Federal Income Tax | (702) | (734) | (719) |
Tax Credits | (770) | (2,781) | (3,207) |
Other Differences | (559) | (321) | (355) |
Totals | $ 8,472 | $ 6,923 | $ 5,224 |
Percent | |||
Statutory Rate (as a percent) | 21.00% | 21.00% | 21.00% |
State Income Taxes (Net of Federal Income Tax Benefit) (as a percent) | 8.50% | 7.10% | 8.60% |
Interest on Investment Securities and Loans Exempt From Federal Income Tax (as a percent) | (2.00%) | (1.90%) | (2.20%) |
Tax Credits (as a percent) | (2.10%) | (7.30%) | (10.00%) |
Other Differences (as a percent) | (1.60%) | (0.80%) | (1.10%) |
Total (as a percent) | 23.80% | 18.10% | 16.30% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Net deferred tax asset | ||
Depreciation | $ (986) | $ (231) |
Allowance for Loan Losses | 9,848 | 6,342 |
Unrealized (Gain) Loss on Securities Available for Sale | (2,426) | (1,399) |
Unrealized (Gain) Loss on Cash Flow Hedges | 677 | 130 |
Prepaid Expenses | (522) | (50) |
Deferred Compensation | 711 | 742 |
Deferred Loan Fees | 806 | 599 |
Other | (95) | (230) |
Totals | $ 8,013 | $ 5,903 |
Tax Credit Investments - Invest
Tax Credit Investments - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | $ 4,065 | $ 4,410 | |
Unfunded Commitment | 1,858 | 3,395 | |
Amortization Expense | 1,019 | 3,514 | $ 3,603 |
Tax Benefit Recognized | (1,386) | (4,017) | (4,128) |
Low Income Housing Tax Credit (LIHTC) | |||
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | 1,867 | 2,148 | |
Amortization Expense | 281 | 289 | 310 |
Tax Benefit Recognized | (330) | (330) | (346) |
Federal Historic Tax Credit (FHTC) | |||
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | 2,198 | 2,262 | |
Unfunded Commitment | 1,858 | 3,395 | |
Amortization Expense | 738 | 3,225 | 3,293 |
Tax Benefit Recognized | $ (1,056) | $ (3,687) | $ (3,782) |
Commitments, Contingencies an_3
Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments Outstanding | ||
Unfunded Commitments Under Lines of Credit | $ 644,338 | $ 500,962 |
Letters of Credit | 90,206 | 79,225 |
Totals | 734,544 | 580,187 |
Federal Home Loan Bank Advances | ||
Commitments Outstanding | ||
Outstanding letters of credit | $ 60,091 | $ 108,502 |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)itemshares | Dec. 31, 2019shares | |
Stock Options and Restricted Stock Awards | ||
Number of banks in the index | item | 61 | |
Minimum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 300 | |
Maximum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 3,500 | |
2012 Plan | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 750,000 | |
Term of award | 10 years | |
Vesting period | 5 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 30,000 | 0 |
2017 Plan | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 1,500,000 | |
Term of award | 10 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 313,600 | 310,600 |
2017 Plan | Minimum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 4 years | |
2017 Plan | Maximum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 5 years | |
2019 EIP | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 1,000,000 | |
Term of award | 10 years | |
Vesting period | 4 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 561,883 | 867,040 |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Black-Scholes Assumptions (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Black-Scholes Assumptions | |
Expected Life | 7 years |
Expected Volatility | 44.14% |
Risk-Free Interest Rate | 0.68% |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Option Plans | |||
Outstanding at Beginning of Year | 1,961,650 | 1,807,100 | |
Granted | 60,000 | 238,000 | |
Exercised | (74,400) | (74,850) | |
Forfeitures | (33,000) | (8,600) | |
Outstanding at End of Year | 1,914,250 | 1,961,650 | 1,807,100 |
Options Exercisable at End of Year | 1,205,350 | 992,050 | |
Weighted Average Exercise Price | |||
Outstanding at Beginning of Year | $ 7.08 | $ 6.24 | |
Granted | 10.61 | 12.47 | |
Exercised | 4.26 | 3.45 | |
Forfeitures | 7.47 | 10.65 | |
Outstanding at End of Year | 7.29 | 7.08 | $ 6.24 |
Options Exercisable at End of Year | $ 5.96 | $ 5.01 | |
Compensation expense for stock options | $ 881 | $ 721 | $ 799 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Exercise Price (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Exercise Price | |
Options Outstanding, Number Outstanding | shares | 1,914,250 |
Options Outstanding, Weighted Average Exercise Price | $ 7.29 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 6 days |
Options Exercisable, Number Outstanding | shares | 1,205,350 |
Options Exercisable, Weighted Average Exercise Price | $ 5.96 |
Total unrecognized compensation cost | $ | $ 2,027 |
Weighted-average period over which total unrecognized compensation cost is expected to be recognized (in years) | 2 years 8 months 12 days |
2.13 - 3.99 | |
Exercise Price | |
Exercise Price, lower range | $ 2.13 |
Exercise Price, upper range | $ 3.99 |
Options Outstanding, Number Outstanding | shares | 522,750 |
Options Outstanding, Weighted Average Exercise Price | $ 2.94 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years |
Options Exercisable, Number Outstanding | shares | 522,750 |
Options Exercisable, Weighted Average Exercise Price | $ 2.94 |
7.00 - 7.99 | |
Exercise Price | |
Exercise Price, lower range | 7 |
Exercise Price, upper range | $ 7.99 |
Options Outstanding, Number Outstanding | shares | 968,500 |
Options Outstanding, Weighted Average Exercise Price | $ 7.47 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 9 months 18 days |
Options Exercisable, Number Outstanding | shares | 576,100 |
Options Exercisable, Weighted Average Exercise Price | $ 7.47 |
8.00 - 8.99 | |
Exercise Price | |
Exercise Price, lower range | 8 |
Exercise Price, upper range | $ 8.99 |
Options Outstanding, Number Outstanding | shares | 25,000 |
Options Outstanding, Weighted Average Exercise Price | $ 8.76 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 3 months 18 days |
10.00 - 10.99 | |
Exercise Price | |
Exercise Price, lower range | $ 10 |
Exercise Price, upper range | $ 10.99 |
Options Outstanding, Number Outstanding | shares | 10,000 |
Options Outstanding, Weighted Average Exercise Price | $ 10.08 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 4 months 24 days |
11.00 - 11.99 | |
Exercise Price | |
Exercise Price, lower range | $ 11 |
Exercise Price, upper range | $ 11.99 |
Options Outstanding, Number Outstanding | shares | 85,000 |
Options Outstanding, Weighted Average Exercise Price | $ 11.27 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 4 months 24 days |
Options Exercisable, Number Outstanding | shares | 22,000 |
Options Exercisable, Weighted Average Exercise Price | $ 11.34 |
12.00 - 12.99 | |
Exercise Price | |
Exercise Price, lower range | 12 |
Exercise Price, upper range | $ 12.99 |
Options Outstanding, Number Outstanding | shares | 278,000 |
Options Outstanding, Weighted Average Exercise Price | $ 12.89 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 7 months 6 days |
Options Exercisable, Number Outstanding | shares | 74,500 |
Options Exercisable, Weighted Average Exercise Price | $ 12.91 |
13.00 - 13.99 | |
Exercise Price | |
Exercise Price, lower range | 13 |
Exercise Price, upper range | $ 13.99 |
Options Outstanding, Number Outstanding | shares | 25,000 |
Options Outstanding, Weighted Average Exercise Price | $ 13.22 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 4 months 24 days |
Options Exercisable, Number Outstanding | shares | 10,000 |
Options Exercisable, Weighted Average Exercise Price | $ 13.22 |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Non-Vested Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Nonvested Options at beginning of period | 969,600 | |
Granted | 60,000 | 238,000 |
Vested | (287,700) | |
Forfeited | (33,000) | |
Nonvested Options at end of period | 708,900 | 969,600 |
Weighted Average Grant Date Fair Value | ||
Nonvested Options at beginning of period | $ 3.08 | |
Granted | 4.39 | |
Vested | 2.98 | |
Forfeited | 2.80 | |
Nonvested Options at end of period | $ 3.24 | $ 3.08 |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation expense | |||
Compensation expense recognized | $ 881 | $ 721 | $ 799 |
Recognition period for non vested restricted stock awards | 2 years 8 months 12 days | ||
Shares issued for services on board of directors | 29,050 | ||
Value of shares issued for services on board of directors | $ 303 | ||
Restricted Stock Awards | |||
Number of Shares | |||
Vesting period | 4 years | ||
Nonvested Awards at beginning of period | 132,960 | ||
Granted | 18,641 | 132,960 | |
Vested | (32,439) | ||
Forfeited | (8,200) | ||
Nonvested Awards at end of period | 110,962 | 132,960 | |
Weighted Average Grant Date Fair Value | |||
Nonvested Awards at beginning of period | $ 12.92 | ||
Granted | 10.29 | $ 12.92 | |
Vested | 12.92 | ||
Forfeited | 10.91 | ||
Nonvested Awards at end of period | $ 12.63 | $ 12.92 | |
Compensation expense | |||
Compensation expense recognized | $ 441 | $ 31 | $ 0 |
Unrecognized compensation cost | $ 1,349 | ||
Recognition period for non vested restricted stock awards | 4 years |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation expense | |||
Compensation expense recognized | $ 881 | $ 721 | $ 799 |
Recognition period for non vested restricted stock awards | 2 years 8 months 12 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards granted | 205,666 | ||
Restricted stock awards grant date fair value | $ 12.27 | ||
Number of shares of common stock on which each RSU is entitled to to receive upon vesting | 1 | ||
Vesting period | 4 years | ||
Compensation expense | |||
Compensation expense recognized | $ 43 | $ 0 | $ 0 |
Unrecognized compensation cost | $ 2,505 | ||
Recognition period for non vested restricted stock awards | 4 years | ||
Restricted stock awards vested | 0 |
Profit Sharing Plan (Details)
Profit Sharing Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit Sharing Plan | |||
Employer match contributions (as a percent) | 100.00% | ||
Employer contribution on employees' gross pay ( as a percent) | 4.00% | ||
Employer match contributions | $ 743 | $ 603 | $ 483 |
Total employer profit sharing contributions | $ 533 | $ 473 | $ 328 |
Deferred Compensation Plan (Det
Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | |
Deferred Compensation Plan | |||
Vesting period | 75 days | ||
Deferred compensation liability | $ 3,571 | $ 3,546 | |
New contributions made | $ 0 | $ 0 |
Regulatory Capital - Capital Am
Regulatory Capital - Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 360,198 | $ 269,613 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 197,604 | 166,163 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | $ 259,355 | $ 218,089 |
Total Risk-Based Capital, Actual ratio | 14.58 | 12.98 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 8 | 8 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 10.50 | 10.50 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 255,530 | $ 236,533 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 148,203 | 124,623 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 209,954 | $ 176,549 |
Tier 1 Risk-Based Capital, Actual ratio | 10.35 | 11.39 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 6 | 6 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 8.50 | 8.50 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 255,530 | $ 236,533 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 111,152 | 93,467 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 172,904 | $ 145,393 |
Common Equity Tier 1 Capital, Actual ratio | 10.35 | 11.39 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 450.00% | 450.00% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 700.00% | 700.00% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 255,530 | $ 236,533 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 110,168 | 88,498 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 110,168 | $ 88,498 |
Tier 1 Leverage Ratio, Actual ratio | 9.28 | 10.69 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 4 | 4 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 4 | 4 |
Bank | ||
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 330,380 | $ 252,501 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 197,629 | 166,137 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | 259,388 | 218,055 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 247,036 | $ 207,671 |
Total Risk-Based Capital, Actual ratio | 13.37 | 12.16 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 8 | 8 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 10.50 | 10.50 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10 | 10 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 299,447 | $ 243,461 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 148,222 | 124,603 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 209,981 | 176,521 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 197,629 | $ 166,137 |
Tier 1 Risk-Based Capital, Actual ratio | 12.12 | 11.72 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 6 | 6 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 8.50 | 8.50 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8 | 8 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 299,447 | $ 243,461 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 111,166 | 93,452 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 172,925 | 145,370 |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 160,574 | $ 134,986 |
Common Equity Tier 1 Capital, Actual ratio | 12.12 | 11.72 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 450.00% | 450.00% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 700.00% | 700.00% |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 650.00% | 650.00% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 299,447 | $ 243,461 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 109,972 | 88,455 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 109,972 | 88,455 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 137,465 | $ 110,569 |
Tier 1 Leverage Ratio, Actual ratio | 10.89 | 11.01 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 4 | 4 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 4 | 4 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5 | 5 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | $ 390,629 | $ 289,877 |
Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 396,220 | 290,161 |
Total Fair Value of Financial Liabilities | 6,167 | 902 |
U.S. Treasury Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 4,998 | |
U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 4,998 | |
Municipal Bonds | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 115,012 | 105,743 |
Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 115,012 | 105,743 |
Mortgage-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,260 | 64,728 |
Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,260 | 64,728 |
Corporate Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 72,155 | 50,176 |
Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 72,155 | 50,176 |
SBA Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 40,107 | 49,559 |
SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 40,107 | 49,559 |
Asset-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,095 | 14,673 |
Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,095 | 14,673 |
Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,834 | |
Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,757 | 284 |
Interest Rate Swaps | 6,167 | 902 |
Level 1 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 4,998 | |
Level 1 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 4,998 | |
Level 1 | U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 4,998 | |
Level 2 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 390,629 | 284,879 |
Level 2 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 396,220 | 285,163 |
Total Fair Value of Financial Liabilities | 6,167 | 902 |
Level 2 | Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 115,012 | 105,743 |
Level 2 | Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,260 | 64,728 |
Level 2 | Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 72,155 | 50,176 |
Level 2 | SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 40,107 | 49,559 |
Level 2 | Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,095 | 14,673 |
Level 2 | Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,834 | |
Level 2 | Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,834 | |
Level 2 | Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,757 | 284 |
Interest Rate Swaps | 6,167 | 902 |
Level 2 | Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 2,757 | 284 |
Interest Rate Swaps | $ 6,167 | $ 902 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||
Loss | $ 3,900 | $ 3,750 | $ 3,000 | $ 2,100 | $ 600 | $ 900 | $ 600 | $ 600 | $ 12,750 | $ 2,700 | $ 3,575 |
Nonrecurring | |||||||||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||
Loss | 50 | 206 | 396 | ||||||||
Nonrecurring | Impaired Loans | |||||||||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||
Loss | 50 | 206 | 396 | ||||||||
Level 2 | Nonrecurring | |||||||||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||
Assets measured at fair value | 80 | 75 | 80 | 75 | 426 | ||||||
Level 2 | Nonrecurring | Impaired Loans | |||||||||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||
Assets measured at fair value | $ 80 | $ 75 | $ 80 | $ 75 | $ 426 |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Bank-Owned Certificates of Deposit | $ 2,860 | $ 2,654 |
Securities Available for Sale | 390,629 | 289,877 |
Level 1 | ||
Financial Assets: | ||
Cash and Due From Banks | 160,675 | 31,935 |
Securities Available for Sale | 4,998 | |
Level 2 | ||
Financial Assets: | ||
Bank-Owned Certificates of Deposit | 2,908 | 2,677 |
Securities Available for Sale | 390,629 | 284,879 |
FHLB Stock, at Cost | 5,027 | 7,824 |
Loans, Net | 2,309,421 | 1,891,987 |
Accrued Interest Receivable | 9,172 | 6,775 |
Financial Liabilities: | ||
Deposits | 2,509,148 | 1,821,915 |
Notes Payable | 11,001 | 13,022 |
FHLB Advances | 58,830 | 141,152 |
Subordinated Debentures | 74,769 | 25,309 |
Accrued Interest Payable | 1,615 | 1,982 |
Level 2 | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,834 | |
Level 2 | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,757 | 284 |
Financial Liabilities: | ||
Interest Rate Swaps | 6,167 | 902 |
Carrying Amount | ||
Financial Assets: | ||
Cash and Due From Banks | 160,675 | 31,935 |
Bank-Owned Certificates of Deposit | 2,860 | 2,654 |
Securities Available for Sale | 390,629 | 289,877 |
FHLB Stock, at Cost | 5,027 | 7,824 |
Loans, Net | 2,282,436 | 1,884,000 |
Accrued Interest Receivable | 9,172 | 6,775 |
Financial Liabilities: | ||
Deposits | 2,501,636 | 1,823,310 |
Notes Payable | 11,000 | 13,000 |
FHLB Advances | 57,500 | 136,500 |
Subordinated Debentures | 73,739 | 24,733 |
Accrued Interest Payable | 1,615 | 1,982 |
Carrying Amount | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,834 | |
Carrying Amount | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,757 | 284 |
Financial Liabilities: | ||
Interest Rate Swaps | 6,167 | 902 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and Due From Banks | 160,675 | 31,935 |
Bank-Owned Certificates of Deposit | 2,908 | 2,677 |
Securities Available for Sale | 390,629 | 289,877 |
FHLB Stock, at Cost | 5,027 | 7,824 |
Loans, Net | 2,309,421 | 1,891,987 |
Accrued Interest Receivable | 9,172 | 6,775 |
Financial Liabilities: | ||
Deposits | 2,509,148 | 1,821,915 |
Notes Payable | 11,001 | 13,022 |
FHLB Advances | 58,830 | 141,152 |
Subordinated Debentures | 74,769 | 25,309 |
Accrued Interest Payable | 1,615 | 1,982 |
Estimated Fair Value | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,834 | |
Estimated Fair Value | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 2,757 | 284 |
Financial Liabilities: | ||
Interest Rate Swaps | $ 6,167 | $ 902 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of other comprehensive income (loss), Before Tax | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | $ 6,394 | $ 9,514 | $ (3,804) |
Less: Reclassification Adjustment for Net Gains (Losses) Included in Net Income | (1,503) | (516) | 125 |
Total Unrealized Gain (Loss) | 4,891 | 8,998 | (3,679) |
Net Unrealized Loss (gain) on Cash Flow Hedge | (3,185) | (962) | 9 |
Less: Reclassification Adjustment for Gains Included in Net Income | 579 | (9) | |
Total Unrealized Loss (Gain) | (2,606) | (971) | 9 |
Other Comprehensive Gain (Loss) | 2,285 | 8,027 | (3,670) |
Components of other comprehensive income (loss), Tax Effect | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | (1,343) | (1,998) | 852 |
Less: Reclassification Adjustment for Net Losses Included in Net Income, tax effect | 316 | 109 | (26) |
Total Unrealized Gain (Loss) | (1,027) | (1,889) | 826 |
Net Unrealized Gain (Loss) on Cash Flow Hedge | 669 | 202 | (2) |
Less: Reclassification Adjustment for Gains Included in Net Income | (122) | 2 | |
Total Unrealized Gain (Loss) | 547 | 204 | (2) |
Other Comprehensive Gain (Loss) | (480) | (1,685) | 824 |
Components of other comprehensive income (loss), Net of Tax | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | 5,051 | 7,516 | (2,952) |
Less: Reclassification Adjustment for Net Gains (Losses) Included in Net Income | (1,187) | (407) | 99 |
Total Unrealized Gain (Loss) | 3,864 | 7,109 | (2,853) |
Net Unrealized Gain (Loss) on Cash Flow Hedge | (2,516) | (760) | 7 |
Less: Reclassification Adjustment for Gains Included in Net Income | 457 | (7) | |
Total Unrealized Gain (Loss) | (2,059) | (767) | 7 |
Total Other Comprehensive Income (Loss), Net of Tax | $ 1,805 | $ 6,342 | $ (2,846) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | $ 244,794 | $ 220,998 | $ 137,162 |
Total Other Comprehensive Income (Loss), Net of Tax | 1,805 | 6,342 | (2,846) |
Balance at the end | 265,405 | 244,794 | 220,998 |
Available For Sale Securities | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | 5,263 | (1,846) | 860 |
Other Comprehensive Income (Loss) Before Reclassifications | 5,051 | 7,516 | (2,952) |
Amounts Reclassified from Accumulated Other Comprehensive Income | (1,187) | (407) | 99 |
Total Other Comprehensive Income (Loss), Net of Tax | 3,864 | 7,109 | (2,853) |
Balance at the end | 9,127 | 5,263 | (1,846) |
Available For Sale Securities | Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | 147 | ||
Cash Flow Hedge | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | (489) | 278 | 224 |
Other Comprehensive Income (Loss) Before Reclassifications | (2,516) | (760) | 7 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 457 | (7) | |
Total Other Comprehensive Income (Loss), Net of Tax | (2,059) | (767) | 7 |
Balance at the end | (2,548) | (489) | 278 |
Cash Flow Hedge | Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | 47 | ||
Accumulated Other Comprehensive Income (loss) | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | 4,774 | (1,568) | 1,084 |
Other Comprehensive Income (Loss) Before Reclassifications | 2,535 | 6,756 | (2,945) |
Amounts Reclassified from Accumulated Other Comprehensive Income | (730) | (414) | 99 |
Total Other Comprehensive Income (Loss), Net of Tax | 1,805 | 6,342 | (2,846) |
Balance at the end | $ 6,579 | $ 4,774 | (1,568) |
Accumulated Other Comprehensive Income (loss) | Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | $ 194 |
Parent Company Financial Info_3
Parent Company Financial Information - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash and Cash Equivalents | $ 160,675 | $ 31,935 | ||
Premises and Equipment, Net | 50,987 | 27,628 | ||
Other Assets | 22,263 | 14,650 | ||
Total Assets | 2,927,345 | 2,268,830 | ||
LIABILITIES | ||||
Notes Payable | 11,000 | 13,000 | ||
Subordinated Debentures, Net of Issuance Costs | 73,739 | 24,733 | ||
Accrued Interest Payable | 1,615 | 1,982 | ||
Other Liabilities | 16,450 | 24,511 | ||
Total Liabilities | 2,661,940 | 2,024,036 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred Stock - $0.01 par value | ||||
Common Stock - $0.01 par value | 281 | 290 | ||
Additional Paid-In Capital | 103,714 | 112,093 | ||
Retained Earnings | 154,831 | 127,637 | ||
Accumulated Other Comprehensive Income | 6,579 | 4,774 | ||
Total Shareholders' Equity | 265,405 | 244,794 | $ 220,998 | $ 137,162 |
Total Liabilities and Shareholders' Equity | $ 2,927,345 | $ 2,268,830 | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | ||
Parent Company | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and Cash Equivalents | $ 37,880 | $ 27,315 | ||
Investment in Subsidiaries | 311,329 | 253,456 | ||
Premises and Equipment, Net | 774 | 795 | ||
Other Assets | 1,437 | 2,181 | ||
Total Assets | 351,420 | 283,747 | ||
LIABILITIES | ||||
Notes Payable | 11,000 | 13,000 | ||
Subordinated Debentures, Net of Issuance Costs | 73,739 | 24,733 | ||
Accrued Interest Payable | 724 | 713 | ||
Other Liabilities | 552 | 507 | ||
Total Liabilities | 86,015 | 38,953 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred Stock - $0.01 par value | ||||
Common Stock - $0.01 par value | 281 | 290 | ||
Additional Paid-In Capital | 103,714 | 112,093 | ||
Retained Earnings | 154,831 | 127,637 | ||
Accumulated Other Comprehensive Income | 6,579 | 4,774 | ||
Total Shareholders' Equity | 265,405 | 244,794 | ||
Total Liabilities and Shareholders' Equity | $ 351,420 | $ 283,747 | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Parent Company Financial Info_4
Parent Company Financial Information - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME | |||||||||||
Other Income | $ 614 | $ 1,153 | $ 499 | ||||||||
Total Interest Income | $ 30,699 | $ 28,493 | $ 28,166 | $ 27,468 | $ 27,419 | $ 26,572 | $ 25,520 | $ 24,267 | 114,826 | 103,778 | 85,226 |
EXPENSE | |||||||||||
Total Interest Expense | 5,858 | 6,814 | 6,824 | 7,366 | 7,491 | 7,637 | 7,382 | 7,136 | 26,862 | 29,646 | 20,488 |
LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS | 6,669 | 9,414 | 9,608 | 9,975 | 9,951 | 9,897 | 9,198 | 9,280 | 35,666 | 38,326 | 32,144 |
Income Tax Benefit | (1,690) | (2,240) | (2,010) | (2,532) | (1,380) | (2,092) | (1,189) | (2,262) | (8,472) | (6,923) | (5,224) |
NET INCOME | $ 4,979 | $ 7,174 | $ 7,598 | $ 7,443 | $ 8,571 | $ 7,805 | $ 8,009 | $ 7,018 | 27,194 | 31,403 | 26,920 |
Parent Company | Reportable Legal Entities | |||||||||||
INCOME | |||||||||||
Dividend Income | 1,300 | 1,040 | 1,100 | ||||||||
Interest Income | 19 | 27 | 3 | ||||||||
Other Income | 179 | 158 | 136 | ||||||||
Total Interest Income | 1,498 | 1,225 | 1,239 | ||||||||
EXPENSE | |||||||||||
Interest Expense | 3,547 | 2,056 | 2,162 | ||||||||
Other Expenses | 1,412 | 996 | 1,152 | ||||||||
Total Interest Expense | 4,959 | 3,052 | 3,314 | ||||||||
LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS | (3,461) | (1,827) | (2,075) | ||||||||
Income Tax Benefit | 1,323 | 776 | 924 | ||||||||
LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS | (2,138) | (1,051) | (1,151) | ||||||||
Equity in Undistributed Earnings | 29,332 | 32,454 | 28,071 | ||||||||
NET INCOME | $ 27,194 | $ 31,403 | $ 26,920 |
Parent Company Financial Info_5
Parent Company Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 27,194 | $ 31,403 | $ 26,920 |
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: | |||
Net Cash Provided by Operating Activities | 23,019 | 39,527 | 29,408 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net (Increase) Decrease in Loans | (411,320) | (247,573) | (317,453) |
Net Cash Used in Investing Activities | (530,332) | (276,211) | (354,236) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Principal Payments on Notes Payable | (2,000) | (2,000) | (2,000) |
Issuance of Subordinated Debt, Net of Issuance Costs | 48,783 | ||
Stock Options Exercised | 317 | 258 | 106 |
Stock Repurchases | (10,334) | (14,959) | |
Issuance of Common Stock | 58,857 | ||
Net Cash Provided by Financing Activities | 636,053 | 240,175 | 329,547 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 128,740 | 3,491 | 4,719 |
Cash and Cash Equivalents Beginning | 31,935 | 28,444 | 23,725 |
Cash and Cash Equivalents Ending | 160,675 | 31,935 | 28,444 |
Parent Company | Reportable Legal Entities | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | 27,194 | 31,403 | 26,920 |
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: | |||
Equity in Undistributed Earnings of Subsidiaries | (29,332) | (32,454) | (28,071) |
Changes in Other Assets and Liabilities | 234 | 311 | (368) |
Net Cash Provided by Operating Activities | (1,904) | (740) | (1,519) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net (Increase) Decrease in Loans | 742 | (742) | |
Investment in Subsidiaries | (25,000) | (25,000) | |
Net Cash Used in Investing Activities | (24,258) | (742) | (25,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Principal Payments on Notes Payable | (2,000) | (2,000) | (2,000) |
Issuance of Subordinated Debt, Net of Issuance Costs | 48,783 | ||
Stock Options Exercised | 317 | 258 | 106 |
Stock Repurchases | (10,373) | (14,959) | |
Issuance of Common Stock | 58,857 | ||
Net Cash Provided by Financing Activities | 36,727 | (16,701) | 56,963 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,565 | (18,183) | 30,444 |
Cash and Cash Equivalents Beginning | 27,315 | 45,498 | 15,054 |
Cash and Cash Equivalents Ending | $ 37,880 | $ 27,315 | $ 45,498 |
Quarterly Condensed Financial_3
Quarterly Condensed Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Condensed Financial Information (Unaudited) | |||||||||||
Interest Income | $ 30,699 | $ 28,493 | $ 28,166 | $ 27,468 | $ 27,419 | $ 26,572 | $ 25,520 | $ 24,267 | $ 114,826 | $ 103,778 | $ 85,226 |
Interest Expense | 5,858 | 6,814 | 6,824 | 7,366 | 7,491 | 7,637 | 7,382 | 7,136 | 26,862 | 29,646 | 20,488 |
NET INTEREST INCOME | 24,841 | 21,679 | 21,342 | 20,102 | 19,928 | 18,935 | 18,138 | 17,131 | 87,964 | 74,132 | 64,738 |
Provision for Loan Losses | 3,900 | 3,750 | 3,000 | 2,100 | 600 | 900 | 600 | 600 | 12,750 | 2,700 | 3,575 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 20,941 | 17,929 | 18,342 | 18,002 | 19,328 | 18,035 | 17,538 | 16,531 | 75,214 | 71,432 | 61,163 |
Noninterest Income | 986 | 1,157 | 1,977 | 1,719 | 1,112 | 946 | 1,134 | 634 | 5,839 | 3,826 | 2,543 |
Noninterest Expense | 15,258 | 9,672 | 10,711 | 9,746 | 10,489 | 9,084 | 9,474 | 7,885 | 45,387 | 36,932 | 31,562 |
INCOME BEFORE INCOME TAXES | 6,669 | 9,414 | 9,608 | 9,975 | 9,951 | 9,897 | 9,198 | 9,280 | 35,666 | 38,326 | 32,144 |
Provision (Benefit) for Income Taxes | 1,690 | 2,240 | 2,010 | 2,532 | 1,380 | 2,092 | 1,189 | 2,262 | 8,472 | 6,923 | 5,224 |
NET INCOME | $ 4,979 | $ 7,174 | $ 7,598 | $ 7,443 | $ 8,571 | $ 7,805 | $ 8,009 | $ 7,018 | $ 27,194 | $ 31,403 | $ 26,920 |
Earnings per share | |||||||||||
Basic (in dollars per share) | $ 0.18 | $ 0.25 | $ 0.26 | $ 0.26 | $ 0.30 | $ 0.27 | $ 0.27 | $ 0.23 | $ 0.95 | $ 1.07 | $ 0.93 |
Diluted (in dollars per share) | $ 0.17 | $ 0.25 | $ 0.26 | $ 0.25 | $ 0.29 | $ 0.27 | $ 0.26 | $ 0.23 | $ 0.93 | $ 1.05 | $ 0.91 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Mar. 05, 2021 | Mar. 01, 2021 | Feb. 25, 2021 |
ServisFirst Bank | Revolving Line of Credit | |||
Subsequent Events | |||
Available line of credit | $ 25 | ||
Outstanding balance | $ 0 | ||
Note Payable | |||
Subsequent Events | |||
Bank loan repayment | $ 11 |