Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 26, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
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, $0.01 Par Value | |
Trading Symbol | BWB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,185,527 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001341317 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and Cash Equivalents | $ 92,197 | $ 160,675 |
Bank-Owned Certificates of Deposit | 2,368 | 2,860 |
Securities Available for Sale | 402,786 | 390,629 |
Loans, Net of Allowance for Loan Losses of $37,591 at June 30, 2021 (unaudited) and $34,841 at December 31, 2020 | 2,545,145 | 2,282,436 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 5,832 | 5,027 |
Premises and Equipment, Net | 50,177 | 50,987 |
Accrued Interest | 8,728 | 9,172 |
Goodwill | 2,626 | 2,626 |
Other Intangible Assets, Net | 574 | 670 |
Other Assets | 52,179 | 22,263 |
Total Assets | 3,162,612 | 2,927,345 |
Deposits: | ||
Noninterest Bearing | 758,023 | 671,903 |
Interest Bearing | 1,962,883 | 1,829,733 |
Total Deposits | 2,720,906 | 2,501,636 |
Notes Payable | 11,000 | |
FHLB Advances | 57,500 | 57,500 |
Subordinated Debentures, Net of Issuance Costs | 73,913 | 73,739 |
Accrued Interest Payable | 2,654 | 1,615 |
Other Liabilities | 16,809 | 16,450 |
Total Liabilities | 2,871,782 | 2,661,940 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock- $0.01 par value Authorized 10,000,000; None Issued and Outstanding at June 30, 2021 (unaudited) and December 31, 2020 | ||
Common Stock- $0.01 par value Common Stock - Authorized 75,000,000; Issued and Outstanding 28,162,777 at June 30, 2021 (unaudited) and 28,143,493 at December 31, 2020 | 282 | 281 |
Additional Paid-In Capital | 104,811 | 103,714 |
Retained Earnings | 176,495 | 154,831 |
Accumulated Other Comprehensive Income | 9,242 | 6,579 |
Total Shareholders' Equity | 290,830 | 265,405 |
Total Liabilities and Shareholders' Equity | $ 3,162,612 | $ 2,927,345 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Allowance of loan loss | $ 37,591 | $ 34,841 |
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) | 28,162,777 | 28,143,493 |
Common stock, shares outstanding (in shares) | 28,162,777 | 28,143,493 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST INCOME | ||||
Loans, Including Fees | $ 28,748 | $ 25,913 | $ 56,656 | $ 51,026 |
Investment Securities | 2,312 | 2,091 | 4,732 | 4,287 |
Other | 87 | 162 | 199 | 321 |
Total Interest Income | 31,147 | 28,166 | 61,587 | 55,634 |
INTEREST EXPENSE | ||||
Deposits | 3,513 | 5,170 | 7,184 | 10,894 |
Notes Payable | 111 | 61 | 226 | |
FHLB Advances | 228 | 1,064 | 456 | 2,091 |
Subordinated Debentures | 1,112 | 479 | 2,197 | 872 |
Federal Funds Purchased | 6 | 6 | 107 | |
Total Interest Expense | 4,859 | 6,824 | 9,904 | 14,190 |
NET INTEREST INCOME | 26,288 | 21,342 | 51,683 | 41,444 |
Provision for Loan Losses | 1,600 | 3,000 | 2,700 | 5,100 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 24,688 | 18,342 | 48,983 | 36,344 |
NONINTEREST INCOME | ||||
Customer Service Fees | 231 | 135 | 465 | 375 |
Net Gain on Sales of Available for Sale Securities | 702 | 1,361 | 702 | 1,364 |
Other Income | 670 | 481 | 1,444 | 1,957 |
Total Noninterest Income | 1,603 | 1,977 | 2,611 | 3,696 |
NONINTEREST EXPENSE | ||||
Salaries and Employee Benefits | 7,512 | 6,348 | 14,614 | 12,802 |
Occupancy and Equipment | 980 | 672 | 2,035 | 1,385 |
Other Expense | 2,985 | 3,691 | 5,751 | 6,270 |
Total Noninterest Expense | 11,477 | 10,711 | 22,400 | 20,457 |
INCOME BEFORE INCOME TAXES | 14,814 | 9,608 | 29,194 | 19,583 |
Provision for Income Taxes | 3,821 | 2,010 | 7,530 | 4,542 |
NET INCOME | $ 10,993 | $ 7,598 | $ 21,664 | $ 15,041 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.39 | $ 0.26 | $ 0.77 | $ 0.52 |
Diluted (in dollars per share) | $ 0.38 | $ 0.26 | $ 0.75 | $ 0.51 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 10,993 | $ 7,598 | $ 21,664 | $ 15,041 |
Other Comprehensive Income (Loss): | ||||
Unrealized Gains on Available for Sale Securities | 2,866 | 3,300 | 350 | 3,122 |
Unrealized Gains (Losses) on Cash Flow Hedges | (2,551) | (741) | 3,054 | (3,673) |
Reclassification Adjustment for Gains Realized in Income | (357) | (1,307) | (29) | (1,292) |
Income Tax Impact | (17) | (263) | (712) | 387 |
Total Other Comprehensive Income (Loss), Net of Tax | (59) | 989 | 2,663 | (1,456) |
Comprehensive Income | $ 10,934 | $ 8,587 | $ 24,327 | $ 13,585 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balance at the beginning at Dec. 31, 2019 | $ 290 | $ 112,093 | $ 127,637 | $ 4,774 | $ 244,794 |
Balance at the beginning (in shares) at Dec. 31, 2019 | 28,973,572 | ||||
Stock-based Compensation | 822 | 822 | |||
Stock-based Compensation (in shares) | 15,211 | ||||
Comprehensive Income (Loss) | 15,041 | (1,456) | 13,585 | ||
Stock Options Exercised | 39 | 39 | |||
Stock Options Exercised (in shares) | 15,500 | ||||
Stock Repurchases | $ (2) | (2,048) | (2,050) | ||
Stock Repurchases (in shares) | (177,864) | ||||
Issuance of Restricted Stock Awards (in shares) | 11,141 | ||||
Balance at the end at Jun. 30, 2020 | $ 288 | 110,906 | 142,678 | 3,318 | 257,190 |
Balance at the end (in shares) at Jun. 30, 2020 | 28,837,560 | ||||
Balance at the beginning at Mar. 31, 2020 | $ 288 | 110,446 | 135,080 | 2,329 | 248,143 |
Balance at the beginning (in shares) at Mar. 31, 2020 | 28,807,375 | ||||
Stock-based Compensation | 421 | 421 | |||
Stock-based Compensation (in shares) | 7,490 | ||||
Comprehensive Income (Loss) | 7,598 | 989 | 8,587 | ||
Stock Options Exercised | 39 | 39 | |||
Stock Options Exercised (in shares) | 15,500 | ||||
Issuance of Restricted Stock Awards (in shares) | 7,195 | ||||
Balance at the end at Jun. 30, 2020 | $ 288 | 110,906 | 142,678 | 3,318 | 257,190 |
Balance at the end (in shares) at Jun. 30, 2020 | 28,837,560 | ||||
Balance at the beginning at Dec. 31, 2020 | $ 281 | 103,714 | 154,831 | 6,579 | 265,405 |
Balance at the beginning (in shares) at Dec. 31, 2020 | 28,143,493 | ||||
Stock-based Compensation | 1,157 | 1,157 | |||
Stock-based Compensation (in shares) | 9,856 | ||||
Comprehensive Income (Loss) | 21,664 | 2,663 | 24,327 | ||
Stock Options Exercised | $ 1 | 153 | $ 154 | ||
Stock Options Exercised (in shares) | 26,400 | 26,400 | |||
Stock Repurchases | (208) | $ (208) | |||
Stock Repurchases (in shares) | (16,618) | ||||
Restricted Shares Withheld for Taxes | (5) | (5) | |||
Restricted Shares Withheld for Taxes (in shares) | (354) | ||||
Balance at the end at Jun. 30, 2021 | $ 282 | 104,811 | 176,495 | 9,242 | 290,830 |
Balance at the end (in shares) at Jun. 30, 2021 | 28,162,777 | ||||
Balance at the beginning at Mar. 31, 2021 | $ 281 | 104,087 | 165,502 | 9,301 | 279,171 |
Balance at the beginning (in shares) at Mar. 31, 2021 | 28,132,929 | ||||
Stock-based Compensation | 583 | 583 | |||
Stock-based Compensation (in shares) | 4,848 | ||||
Comprehensive Income (Loss) | 10,993 | (59) | 10,934 | ||
Stock Options Exercised | $ 1 | 141 | 142 | ||
Stock Options Exercised (in shares) | 25,000 | ||||
Balance at the end at Jun. 30, 2021 | $ 282 | $ 104,811 | $ 176,495 | $ 9,242 | $ 290,830 |
Balance at the end (in shares) at Jun. 30, 2021 | 28,162,777 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | $ 21,664 | $ 15,041 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities | |||||
Net Amortization on Securities Available for Sale | 1,755 | 1,136 | |||
Net Gain on Sales of Securities Available for Sale | $ (702) | $ (1,361) | (702) | (1,364) | |
Provision for Loan Losses | 1,600 | 3,000 | 2,700 | 5,100 | |
Depreciation of Premises and Equipment | 1,146 | 380 | |||
Amortization of Other Intangible Assets | 96 | 96 | |||
Amortization of Subordinated Debt Issuance Costs | 174 | 52 | |||
Stock-based Compensation | 1,157 | 822 | |||
Changes in Operating Assets and Liabilities: | |||||
Accrued Interest Receivable and Other Assets | (4,870) | (8,074) | |||
Accrued Interest Payable and Other Liabilities | 4,810 | (12,507) | |||
Net Cash Provided by Operating Activities | 27,930 | 682 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
(Increase) Decrease in Bank-Owned Certificates of Deposit | 492 | (241) | |||
Proceeds from Sales of Securities Available for Sale | 6,107 | 31,936 | 7,757 | 34,038 | |
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale | 18,023 | 17,312 | |||
Purchases of Securities Available for Sale | (39,341) | (87,215) | |||
Net Increase in Loans | (265,409) | (277,092) | |||
Net Increase in FHLB Stock | (805) | (793) | |||
Purchases of Premises and Equipment | (336) | (15,935) | |||
Proceeds from Sales of Foreclosed Assets | 134 | ||||
Purchase of Bank-Owned Life Insurance | (25,000) | ||||
Net Cash Used in Investing Activities | (304,619) | (329,792) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Increase in Deposits | 219,270 | 418,741 | |||
Principal Payments on Notes Payable | (11,000) | (1,000) | |||
Proceeds from FHLB Advances | 96,000 | ||||
Principal Payments on FHLB Advances | (85,000) | ||||
Issuance of Subordinated Debt, Net of Issuance Costs | 48,873 | ||||
Stock Options Exercised | 154 | 39 | |||
Stock Repurchases | (208) | (2,050) | |||
Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards | (5) | ||||
Net Cash Provided by Financing Activities | 208,211 | 475,603 | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (68,478) | 146,493 | |||
Cash and Cash Equivalents Beginning | 160,675 | 31,935 | $ 31,935 | ||
Cash and Cash Equivalents Ending | $ 92,197 | $ 178,428 | 92,197 | 178,428 | $ 160,675 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||||
Cash Paid for Interest | 8,691 | 14,167 | |||
Cash Paid for Income Taxes | $ 10,438 | 4,243 | |||
Loans Transferred to Foreclosed Assets | 134 | ||||
Premises and Equipment Transferred to Other Assets | 121 | ||||
Net Investment Securities Sold but Not Settled | $ 1,433 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 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, a subsidiary of the Company, was incorporated in 2016 as a wholly owned insurance 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. Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the three and six-month periods ended June 30, 2021 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 11, 2021. Principles of Consolidation These 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 (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. 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. Impact of Recently Adopted Accounting Guidance 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 Subsequent Events Subsequent events have been evaluated through July 30, 2021, which is the date the consolidated financial statements were available to be issued. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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 computed by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation. For the three and six months ended June 30, 2021, stock options, restricted stock awards and restricted stock units of approximately 23,000 and 56,000, respectively, were excluded from the calculation because their effect would have been anti-dilutive. For the three and six months ended June 30, 2020, stock options and restricted stock awards of approximately 561,000 and 560,000, respectively, were excluded from the calculation because their effect would have been anti-dilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Income Available to Common Shareholders $ 10,993 $ 7,598 $ 21,664 $ 15,041 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,040,762 28,676,441 28,029,129 28,733,968 Dilutive Effect of Stock Compensation 1,087,419 488,716 1,019,295 616,458 Weighted Average Common Stock Outstanding (Dilutive) 29,128,181 29,165,157 29,048,424 29,350,426 Basic Earnings per Common Share $ 0.39 $ 0.26 $ 0.77 $ 0.52 Diluted Earnings per Common Share 0.38 0.26 0.75 0.51 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2021 | |
Securities | |
Securities | Note 3: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at June 30, 2021 and December 31, 2020: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 1,009 $ 1 $ — $ 1,010 Municipal Bonds 118,599 8,219 (803) 126,015 Mortgage-Backed Securities 125,053 1,640 (1,851) 124,842 Corporate Securities 74,002 2,849 (88) 76,763 SBA Securities 36,302 93 (249) 36,146 Asset-Backed Securities 36,619 1,391 — 38,010 Total Securities Available for Sale $ 391,584 $ 14,193 $ (2,991) $ 402,786 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 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 June 30, 2021 and December 31, 2020: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2021 Municipal Bonds $ 18,445 $ (407) $ 3,884 $ (396) $ 22,329 $ (803) Mortgage-Backed Securities 46,041 (1,438) 13,310 (413) 59,351 (1,851) Corporate Securities 11,037 (69) 981 (19) 12,018 (88) SBA Securities — — 22,244 (249) 22,244 (249) Total Securities Available for Sale $ 75,523 $ (1,914) $ 40,419 $ (1,077) $ 115,942 $ (2,991) 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) At June 30, 2021, 141 debt securities had unrealized losses with aggregate depreciation of approximately 2.5% from the Company’s amortized cost basis. At December 31, 2020, 150 debt securities had unrealized losses with aggregate depreciation of approximately 1.7% 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 June 30, 2021. 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 June 30, 2021. 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. June 30, 2021 Amortized Cost Fair Value Due in One Year or Less $ 11,297 $ 11,409 Due After One Year Through Five Years 82,321 86,414 Due After Five Years Through 10 Years 66,836 70,702 Due After 10 Years 33,156 35,263 Subtotal 193,610 203,788 Mortgage-Backed Securities 125,053 124,842 SBA Securities 36,302 36,146 Asset-Backed Securities 36,619 38,010 Totals $ 391,584 $ 402,786 As of June 30, 2021 and December 31, 2020, 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 three and six months ended June 30, 2021 and June 30, 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Proceeds From Sales of Securities $ 6,107 $ 31,936 $ 7,757 $ 34,038 Gross Gains on Sales 702 1,435 702 1,438 Gross Losses on Sales — (74) — (74) |
Loans
Loans | 6 Months Ended |
Jun. 30, 2021 | |
Loans | |
Loans | Note 4: Loans The following table presents the components of the loan portfolio at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Commercial $ 321,474 $ 304,220 Paycheck Protection Program 99,072 138,454 Construction and Land Development 251,573 170,217 Real Estate Mortgage: 1-4 Family Mortgage 277,943 294,479 Multifamily 790,275 626,465 CRE Owner Occupied 87,507 75,604 CRE Non-owner Occupied 758,101 709,300 Total Real Estate Mortgage Loans 1,913,826 1,705,848 Consumer and Other 8,241 7,689 Total Loans, Gross 2,594,186 2,326,428 Allowance for Loan Losses (37,591) (34,841) Net Deferred Loan Fees (11,450) (9,151) Total Loans, Net $ 2,545,145 $ 2,282,436 The following table presents the activity in the allowance for loan losses, by segment, for the three months ended June 30, 2021 and 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Three Months Ended June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 6,451 $ 83 $ 2,773 $ 3,894 $ 9,856 $ 1,187 $ 11,026 $ 232 $ 485 $ 35,987 Provision for Loan Losses 71 (33) 654 (394) 1,294 57 (8) (11) (30) 1,600 Loans Charged-off — — — — — — — (3) — (3) Recoveries of Loans 3 — — 2 — — — 2 — 7 Total Ending Allowance Balance $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Three Months Ended June 30, 2020 Allowance for Loan Losses: Beginning Balance $ 3,557 $ — $ 2,131 $ 3,202 $ 6,556 $ 938 $ 8,003 $ 92 $ 106 $ 24,585 Provision for Loan Losses 1,633 90 42 74 141 26 320 82 592 3,000 Loans Charged-off — — — — — — — (1) — (1) Recoveries of Loans 2 — — 46 — — — 1 — 49 Total Ending Allowance Balance $ 5,192 $ 90 $ 2,173 $ 3,322 $ 6,697 $ 964 $ 8,323 $ 174 $ 698 $ 27,633 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2021 and 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Six Months Ended June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Provision for Loan Losses 800 (20) 936 (470) 1,633 50 27 21 (277) 2,700 Loans Charged-off — — — (5) — — — (12) — (17) Recoveries of Loans 22 — — 5 — 32 — 8 — 67 Total Ending Allowance Balance $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Six Months Ended June 30, 2020 Allowance for Loan Losses: Beginning Balance $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Provision for Loan Losses 2,164 90 (29) 435 873 172 1,351 100 (56) 5,100 Loans Charged-off (34) — — — — — — (14) — (48) Recoveries of Loans 4 — — 48 — — — 3 — 55 Total Ending Allowance Balance $ 5,192 $ 90 $ 2,173 $ 3,322 $ 6,697 $ 964 $ 8,323 $ 174 $ 698 $ 27,633 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 June 30, 2021 and December 31, 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Allowance for Loan Losses at June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 275 $ — $ — $ — $ — $ — $ — $ 12 $ — $ 287 Collectively Evaluated for Impairment 6,250 50 3,427 3,502 11,150 1,244 11,018 208 455 37,304 Totals $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Allowance for Loan Losses at December 31, 2020 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 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Loans at June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 1,213 $ — $ 140 $ 1,350 $ — $ 865 $ 3,615 $ 12 $ 7,195 Collectively Evaluated for Impairment 320,261 99,072 251,433 276,593 790,275 86,642 754,486 8,229 2,586,991 Totals $ 321,474 $ 99,072 $ 251,573 $ 277,943 $ 790,275 $ 87,507 $ 758,101 $ 8,241 $ 2,594,186 Loans at December 31, 2020 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 The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 52 $ 52 $ — $ 122 $ 122 $ — Construction and Land Development 140 747 — 156 763 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 884 884 — 884 884 — 1st REM - Rentals 467 467 — 614 614 — CRE Owner Occupied 864 864 — 870 870 — CRE Non Owner Occupied 3,615 3,615 — 12,388 12,388 — Totals 6,022 6,629 — 15,034 15,641 — Loans With An Allowance for Loan Losses: Commercial 1,161 1,165 275 117 120 37 Consumer and Other 12 12 12 13 13 13 Totals 1,173 1,177 287 130 133 50 Grand Totals $ 7,195 $ 7,806 $ 287 $ 15,164 $ 15,774 $ 50 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three months and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 53 $ — $ 150 $ 3 $ 56 $ 2 $ 156 $ 5 Construction and Land Development 144 — 168 — 147 — 172 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 883 11 329 — 884 22 329 — 1st REM - Rentals 471 6 926 11 473 12 929 22 CRE Owner Occupied 867 3 1,844 25 869 6 1,840 50 CRE Non Owner Occupied 3,624 52 222 3 3,635 91 224 6 Totals 6,042 72 3,639 42 6,064 133 3,650 83 Loans With An Allowance for Loan Losses: Commercial 1,162 14 109 — 1,161 26 110 1 Consumer and Other 12 — 34 1 13 — 34 1 Totals 1,174 14 143 1 1,174 26 144 2 Grand Totals $ 7,216 $ 86 $ 3,782 $ 43 $ 7,238 $ 159 $ 3,794 $ 85 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 rating 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 June 30, 2021 and December 31, 2020, based on the most recent analysis performed by management: June 30, 2021 Pass Watch Substandard Total Commercial $ 293,690 $ 26,571 $ 1,213 $ 321,474 Paycheck Protection Program 99,072 — — 99,072 Construction and Land Development 251,433 — 140 251,573 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 27,000 — 883 27,883 1st REM - 1-4 Family 45,670 696 168 46,534 LOCs and 2nd REM - Rentals 20,413 20 — 20,433 1st REM - Rentals 182,794 — 299 183,093 Multifamily 790,275 — — 790,275 CRE Owner Occupied 86,642 — 865 87,507 CRE Non-owner Occupied 725,077 29,409 3,615 758,101 Consumer and Other 8,229 — 12 8,241 Totals $ 2,530,295 $ 56,696 $ 7,195 $ 2,594,186 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 Non-owner 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 The following tables present the aging of the recorded investment in past due loans by loan segment as of June 30, 2021 and December 31, 2020: Accruing Interest 30-89 Days 90 Days or June 30, 2021 Current Past Due More Past Due Nonaccrual Total Commercial $ 321,468 $ — $ — $ 6 $ 321,474 Paycheck Protection Program 99,072 — — — 99,072 Construction and Land Development 251,433 — — 140 251,573 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 27,883 — — — 27,883 1st REM - 1-4 Family 46,534 — — — 46,534 LOCs and 2nd REM - Rentals 20,433 — — — 20,433 1st REM - Rentals 183,093 — — — 183,093 Multifamily 790,275 — — — 790,275 CRE Owner Occupied 86,892 — — 615 87,507 CRE Non-owner Occupied 758,101 — — — 758,101 Consumer and Other 8,241 — — — 8,241 Totals $ 2,593,425 $ — $ — $ 761 $ 2,594,186 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 Non-owner Occupied 709,300 — — — 709,300 Consumer and Other 7,689 — — — 7,689 Totals $ 2,325,640 $ 13 $ — $ 775 $ 2,326,428 At June 30, 2021, there were three loans classified as troubled debt restructurings with a total outstanding balance of $399. In comparison, at December 31, 2020, there were three loans classified as troubled debt restructurings with a total outstanding balance of $421. There were no new loans classified as a troubled debt restructuring during the six month period ended June 30, 2021 and no loans classified as troubled debt restructurings during the previous twelve months subsequently defaulted during the six months ended June 30, 2021. In response to the COVID-19 pandemic, the Company developed programs for clients who experienced business and personal disruptions due to the COVID-19 pandemic pursuant to which the Company provided interest-only modifications, loan payment deferrals, or extended amortization modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic are not 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 June 30, 2021: Interest-Only Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 3,547 7 $ 4,778 1 $ 8,325 8 Real Estate Mortgage: CRE Owner Occupied 615 3 — — 615 3 CRE Nonowner Occupied 24,997 8 — — 24,997 8 Totals $ 29,159 18 $ 4,778 1 $ 33,937 19 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits. | |
Deposits | Note 5: Deposits The following table presents the composition of deposits at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Transaction Deposits $ 1,190,146 $ 1,038,193 Savings and Money Market Deposits 761,485 657,617 Time Deposits 321,857 353,543 Brokered Deposits 447,418 452,283 Totals $ 2,720,906 $ 2,501,636 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Notes Payable | Note 6: Notes Payable On February 25, 2021, the Company’s $11,000 note payable matured and was paid off in full. On March 1, 2021, the Company entered into a Loan and Security Agreement and related revolving note with an unaffiliated financial institution that was secured by 100% of the issued and outstanding stock of the Bank. The revolving line of credit is for a maximum principal amount of $25,000 and matures on February 28, 2023. Interest accrues on unpaid principal balances at a variable interest rate equal to the greater of the Wall Street Journal Prime Rate in effect or a floor rate of 3.85%. The Company is required to pay quarterly payments of interest on the unpaid principal balance. Principal payments may be made any time prior to the maturity date, on which date all unpaid principal and accrued interest are due and payable. The note contains customary representations, warranties, and covenants, including certain financial covenants and capital ratio requirements. As of June 30, 2021, the Company believes it was in compliance with all covenants. As of June 30, 2021, there were no outstanding balances under the revolving line of credit. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 7: 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest Rate Swap Agreements: Assets $ 49,400 $ 868 $ 49,696 $ 2,701 Liabilities 49,400 (868) 49,696 (2,701) Total $ 98,800 $ — $ 99,392 $ — 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 $1,213 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Amount $ 125,000 $ 111,000 Weighted Average Pay Rate 1.02 % 1.26 % Weighted Average Receive Rate 0.14 % 0.22 % Weighted Average Maturity (Years) 4.27 3.95 Net Unrealized Loss $ (1,098) $ (3,410) During 2020 and 2021, the Company purchased interest rate caps, designated as cash flow hedges, of certain deposit liabilities, with notional amounts totaling $60,000. 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 and an initial premium of $352,000 was paid up front for a cap executed in the second quarter of 2021. Amortization on the interest rate caps was $95 and was recorded as a component of interest expense on brokered deposits for the six months ended June 30, 2021. At June 30, 2021, the weighted average strike price for outstanding interest rate caps was 0.80% and the weighted average maturity was 8.96 years. The following table presents a summary of the Company’s interest rate contracts as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest Rate Swap Agreements: Assets $ 55,000 $ 809 $ 5,000 $ 56 Liabilities 70,000 (1,907) 106,000 (3,466) Interest Rate Cap Agreements: Assets 60,000 4,431 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 June 30, 2021 and December 31, 2020, the Company pledged cash collateral for the Company’s derivative contracts of $3,358 and $8,526, respectively. In addition, as of June 30, 2021 and December 31, 2020, the Company's interest rate cap counterparties have pledged cash collateral to the Company of $5,190 and $2,700, respectively. The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2021 2020 2021 2020 Derivatives in Location of Loss Loss Loss Cash Flow Hedging Reclassified from Reclassified from Reclassified from Relationships AOCI into Income AOCI into Earnings AOCI into Earnings Interest rate swaps Interest expense $ (275) $ (53) $ (537) $ (72) Interest rate caps Interest expense (70) — (136) — No amounts were reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness for these derivatives during the three and six months ended June 30, 2021 and 2020, 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. |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 2021 | |
Tax Credit Investments | |
Tax Credit Investments | Note 8: 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 3,011 $ — $ 1,867 $ — Federal Historic Tax Credit (FHTC) Equity 2,035 967 2,198 1,858 Total $ 5,046 $ 967 $ 4,065 $ 1,858 (1) All commitments are expected to be paid by the Company by June 30, 2022. The following table presents a summary of the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amortization Expense (1) LIHTC $ 70 $ 70 $ 140 $ 141 FHTC 140 362 258 447 Total $ 210 $ 432 $ 398 $ 588 Tax Benefit Recognized (2) LIHTC $ (83) $ (82) $ (165) $ (165) FHTC (156) (447) (313) (617) Total $ (239) $ (529) $ (478) $ (782) (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 | 6 Months Ended |
Jun. 30, 2021 | |
Commitments, Contingencies and Credit Risk | |
Commitments, Contingencies and Credit Risk | Note 9: 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 June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Unfunded Commitments Under Lines of Credit $ 800,914 $ 644,338 Letters of Credit 102,455 90,206 Totals $ 903,369 $ 734,544 The Company had outstanding letters of credit with the FHLB in total amounts of $42,675 and $60,091 at June 30, 2021 and December 31, 2020, respectively, on behalf of customers and to secure public deposits. Legal Contingencies Neither the Company nor any of its subsidiaries is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to the Bank’s business. The Company does not know of any proceeding contemplated by a governmental authority against the Company or any of its subsidiaries. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 6 Months Ended |
Jun. 30, 2021 | |
Stock Options and Restricted Stock | |
Stock Options and Restricted Stock | Note 10: Stock Options and Restricted Stock Awards 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 June 30, 2021 and December 31, 2020, there were 30,000 shares of the Company’s common stock reserved for future option grants under the 2012 Plan. 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, 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 June 30, 2021 and December 31, 2020, there were 543,507 and 561,883 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 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 51 banks in the index ranging in market capitalization from $500 million up to $4.0 billion. The weighted average assumptions used in the model of valuing stock option grants for the six months ended June 30, 2021, are as follows: June 30, 2021 Dividend Yield — % Expected Life 7 Years Expected Volatility 29.93 % Risk-Free Interest Rate 1.14 % The following table presents a summary of the status of the Company’s stock option grants for the six months ended June 30, 2021: June 30, 2021 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,914,250 $ 7.29 Granted 20,500 16.88 Exercised (26,400) 5.81 Forfeitures (800) 7.47 Outstanding at Period End 1,907,550 $ 7.42 Options Exercisable at Period End 1,200,950 $ 6.06 For the three months ended June 30, 2021 and 2020, the Company recognized compensation expense for stock options of $229 and $230, respectively. For the six months ended June 30, 2021 and 2020, the Company recognized compensation expense for stock options of $452 and $448, respectively. The following table presents information pertaining to options outstanding at June 30, 2021: 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 - 3.99 509,250 $ 2.95 2.5 509,250 $ 2.95 7.00 - 7.99 963,000 7.47 6.3 571,400 7.47 8.00 - 8.99 20,000 8.76 8.8 1,250 8.76 10.00 - 10.99 10,000 10.08 8.9 2,500 10.08 11.00 - 11.99 85,000 11.27 7.9 24,000 11.33 12.00 - 12.99 274,800 12.89 8.1 77,550 12.90 13.00 - 13.99 25,000 13.22 6.9 15,000 13.22 16.00 - 16.99 10,000 16.23 9.8 — 16.23 17.00 - 17.99 10,500 17.49 9.9 — 17.49 Totals 1,907,550 $ 7.42 5.7 1,200,950 $ 6.06 As of June 30, 2021, there was $1,689 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 2.1 years. The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the six months ended June 30, 2021: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2020 708,900 $ 3.24 Granted 20,500 5.66 Vested (22,000) 4.23 Forfeited (800) 7.47 Nonvested Options at June 30, 2021 706,600 $ 3.27 Restricted Stock Awards In 2019 and 2020, 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 six months ended June 30, 2021: Weighted Number of Average Grant Shares Date Fair Value Nonvested Awards at December 31, 2020 110,962 $ 12.63 Granted — — Vested (2,784) 10.32 Forfeited — — Nonvested Awards at June 30, 2021 108,178 $ 12.69 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 three months ended June 30, 2021 and 2020, the Company recognized compensation expense for restricted stock awards of $113. For the six months ended June 30, 2021 and 2020, the Company recognized compensation expense for restricted stock awards of $225 and $221, respectively. As of June 30, 2021, there was $1,124 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2019 EIP that is expected to be recognized over a weighted-average period of 2.5 years. In addition, during the six months ended June 30, 2021, the Company issued 9,856 shares of unrestricted 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 $159 was included in stock based compensation expense in the accompanying consolidated statements of shareholders’ equity. Restricted Stock Units In 2020, the Company granted restricted stock units out of the 2019 EIP. 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 The following table presents an analysis of nonvested restricted stock units outstanding for the six months ended June 30, 2021: Weighted Number of Average Grant Units Date Fair Value Nonvested Units at December 31, 2020 205,666 $ 12.27 Granted 9,600 15.10 Vested — — Forfeited (1,080) 12.27 Nonvested Units at June 30, 2021 214,186 $ 12.40 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 three and six months ended June 30, 2021, the Company recognized compensation expense for restricted stock units of $162 and $320. No compensation expense was recognized for restricted stock units for the three and six months ended June 30, 2020. As of June 30, 2021, there was $2,292 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. As of June 30, 2021, no restricted stock units had vested. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital | |
Regulatory Capital | Note 11: 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 June 30, 2021 and December 31, 2020: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations June 30, 2021 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 388,317 13.49 % $ 230,349 8.00 % $ 302,333 10.50 % N/A N/A Tier 1 Risk-Based Capital 278,388 9.67 172,762 6.00 244,746 8.50 N/A N/A Common Equity Tier 1 Capital 278,388 9.67 129,571 4.50 201,555 7.00 N/A N/A Tier 1 Leverage Ratio 278,388 9.08 122,618 4.00 122,618 4.00 N/A N/A Bank: Total Risk-Based Capital $ 359,586 12.49 % $ 230,314 8.00 % $ 302,287 10.50 % $ 287,892 10.00 % Tier 1 Risk-Based Capital 323,575 11.24 172,735 6.00 244,708 8.50 230,314 8.00 Common Equity Tier 1 Capital 323,575 11.24 129,551 4.50 201,524 7.00 187,130 6.50 Tier 1 Leverage Ratio 323,575 10.57 122,507 4.00 122,507 4.00 153,133 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, 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 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. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | Note 12: 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 tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 1,010 $ — $ — $ 1,010 Municipal Bonds — 126,015 — 126,015 Mortgage-Backed Securities — 124,842 — 124,842 Corporate Securities — 76,763 — 76,763 SBA Securities — 36,146 — 36,146 Asset-Backed Securities — 38,010 — 38,010 Interest Rate Caps — 4,431 — 4,431 Interest Rate Swaps — 1,677 — 1,677 Total Fair Value of Financial Assets $ 1,010 $ 407,884 $ — $ 408,894 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 2,775 $ — $ 2,775 Total Fair Value of Financial Liabilities $ — $ 2,775 $ — $ 2,775 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 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 at June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 886 $ — $ 287 Totals $ — $ 886 $ — $ 287 December 31, 2020 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 80 $ — $ 50 Totals $ — $ 80 $ — $ 50 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 above 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 amount and estimated fair values of financial instruments at June 30, 2021 and December 31, 2020: June 30, 2021 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 92,197 $ 92,197 $ — $ — $ 92,197 Bank-Owned Certificates of Deposit 2,368 — 2,395 — 2,395 Securities Available for Sale 402,786 1,010 401,776 — 402,786 FHLB Stock, at Cost 5,832 — 5,832 — 5,832 Loans, Net 2,545,145 — 2,534,398 — 2,534,398 Accrued Interest Receivable 8,728 — 8,728 — 8,728 Interest Rate Caps 4,431 — 4,431 — 4,431 Interest Rate Swaps 1,677 — 1,677 — 1,677 Financial Liabilities: Deposits $ 2,720,906 $ — $ 2,687,228 $ — $ 2,687,228 FHLB Advances 57,500 — 58,096 — 58,096 Subordinated Debentures 73,913 — 77,452 — 77,452 Accrued Interest Payable 2,654 — 2,654 — 2,654 Interest Rate Swaps 2,775 — 2,775 — 2,775 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 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 Federal funds purchased Notes payable and subordinated debentures FHLB advances Accrued interest payable Off-balance sheet instruments Limitations |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | |
Subsequent Events | Note 13: Subsequent Events Subordinated Debentures On July 8, 2021, the Company issued $30,000 of subordinated debentures at an initial fixed interest rate of 3.25% which is payable semi-annually. Beginning July 15, 2026, the interest rate converts to a variable interest rate equal to the three-month term SOFR, plus 2.52%, which is payable quarterly. The subordinated debentures are redeemable by the Company, in whole or in part, on or after July 15, 2026 and mature on July 15, 2031. In July of 2021, the Company redeemed $11,250 of the $25,000 outstanding of its Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”). The early redemption of the 2027 Notes was recorded as a loss on the extinguishment of subordinated debt, included in noninterest expense, in the amount of $582, consisting of $532 in prepayment penalties and $50 in unamortized issuance costs. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies ) | 6 Months Ended |
Jun. 30, 2021 | |
Description of the Business and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the three and six-month periods ended June 30, 2021 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 11, 2021. |
Principles of Consolidation | Principles of Consolidation These 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. |
Impact of Recent Accounting Standards | Impact of Recently Adopted Accounting Guidance 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 |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through July 30, 2021, which is the date the consolidated financial statements were available to be issued. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Income Available to Common Shareholders $ 10,993 $ 7,598 $ 21,664 $ 15,041 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,040,762 28,676,441 28,029,129 28,733,968 Dilutive Effect of Stock Compensation 1,087,419 488,716 1,019,295 616,458 Weighted Average Common Stock Outstanding (Dilutive) 29,128,181 29,165,157 29,048,424 29,350,426 Basic Earnings per Common Share $ 0.39 $ 0.26 $ 0.77 $ 0.52 Diluted Earnings per Common Share 0.38 0.26 0.75 0.51 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 1,009 $ 1 $ — $ 1,010 Municipal Bonds 118,599 8,219 (803) 126,015 Mortgage-Backed Securities 125,053 1,640 (1,851) 124,842 Corporate Securities 74,002 2,849 (88) 76,763 SBA Securities 36,302 93 (249) 36,146 Asset-Backed Securities 36,619 1,391 — 38,010 Total Securities Available for Sale $ 391,584 $ 14,193 $ (2,991) $ 402,786 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 |
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 June 30, 2021 and December 31, 2020: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2021 Municipal Bonds $ 18,445 $ (407) $ 3,884 $ (396) $ 22,329 $ (803) Mortgage-Backed Securities 46,041 (1,438) 13,310 (413) 59,351 (1,851) Corporate Securities 11,037 (69) 981 (19) 12,018 (88) SBA Securities — — 22,244 (249) 22,244 (249) Total Securities Available for Sale $ 75,523 $ (1,914) $ 40,419 $ (1,077) $ 115,942 $ (2,991) 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) |
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 June 30, 2021. 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. June 30, 2021 Amortized Cost Fair Value Due in One Year or Less $ 11,297 $ 11,409 Due After One Year Through Five Years 82,321 86,414 Due After Five Years Through 10 Years 66,836 70,702 Due After 10 Years 33,156 35,263 Subtotal 193,610 203,788 Mortgage-Backed Securities 125,053 124,842 SBA Securities 36,302 36,146 Asset-Backed Securities 36,619 38,010 Totals $ 391,584 $ 402,786 |
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 three and six months ended June 30, 2021 and June 30, 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Proceeds From Sales of Securities $ 6,107 $ 31,936 $ 7,757 $ 34,038 Gross Gains on Sales 702 1,435 702 1,438 Gross Losses on Sales — (74) — (74) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans | |
Summary of components of loans | The following table presents the components of the loan portfolio at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Commercial $ 321,474 $ 304,220 Paycheck Protection Program 99,072 138,454 Construction and Land Development 251,573 170,217 Real Estate Mortgage: 1-4 Family Mortgage 277,943 294,479 Multifamily 790,275 626,465 CRE Owner Occupied 87,507 75,604 CRE Non-owner Occupied 758,101 709,300 Total Real Estate Mortgage Loans 1,913,826 1,705,848 Consumer and Other 8,241 7,689 Total Loans, Gross 2,594,186 2,326,428 Allowance for Loan Losses (37,591) (34,841) Net Deferred Loan Fees (11,450) (9,151) Total Loans, Net $ 2,545,145 $ 2,282,436 |
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 three months ended June 30, 2021 and 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Three Months Ended June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 6,451 $ 83 $ 2,773 $ 3,894 $ 9,856 $ 1,187 $ 11,026 $ 232 $ 485 $ 35,987 Provision for Loan Losses 71 (33) 654 (394) 1,294 57 (8) (11) (30) 1,600 Loans Charged-off — — — — — — — (3) — (3) Recoveries of Loans 3 — — 2 — — — 2 — 7 Total Ending Allowance Balance $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Three Months Ended June 30, 2020 Allowance for Loan Losses: Beginning Balance $ 3,557 $ — $ 2,131 $ 3,202 $ 6,556 $ 938 $ 8,003 $ 92 $ 106 $ 24,585 Provision for Loan Losses 1,633 90 42 74 141 26 320 82 592 3,000 Loans Charged-off — — — — — — — (1) — (1) Recoveries of Loans 2 — — 46 — — — 1 — 49 Total Ending Allowance Balance $ 5,192 $ 90 $ 2,173 $ 3,322 $ 6,697 $ 964 $ 8,323 $ 174 $ 698 $ 27,633 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2021 and 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Six Months Ended June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Provision for Loan Losses 800 (20) 936 (470) 1,633 50 27 21 (277) 2,700 Loans Charged-off — — — (5) — — — (12) — (17) Recoveries of Loans 22 — — 5 — 32 — 8 — 67 Total Ending Allowance Balance $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Six Months Ended June 30, 2020 Allowance for Loan Losses: Beginning Balance $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $ 754 $ 22,526 Provision for Loan Losses 2,164 90 (29) 435 873 172 1,351 100 (56) 5,100 Loans Charged-off (34) — — — — — — (14) — (48) Recoveries of Loans 4 — — 48 — — — 3 — 55 Total Ending Allowance Balance $ 5,192 $ 90 $ 2,173 $ 3,322 $ 6,697 $ 964 $ 8,323 $ 174 $ 698 $ 27,633 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 June 30, 2021 and December 31, 2020: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Allowance for Loan Losses at June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 275 $ — $ — $ — $ — $ — $ — $ 12 $ — $ 287 Collectively Evaluated for Impairment 6,250 50 3,427 3,502 11,150 1,244 11,018 208 455 37,304 Totals $ 6,525 $ 50 $ 3,427 $ 3,502 $ 11,150 $ 1,244 $ 11,018 $ 220 $ 455 $ 37,591 Allowance for Loan Losses at December 31, 2020 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 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer Loans at June 30, 2021 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 1,213 $ — $ 140 $ 1,350 $ — $ 865 $ 3,615 $ 12 $ 7,195 Collectively Evaluated for Impairment 320,261 99,072 251,433 276,593 790,275 86,642 754,486 8,229 2,586,991 Totals $ 321,474 $ 99,072 $ 251,573 $ 277,943 $ 790,275 $ 87,507 $ 758,101 $ 8,241 $ 2,594,186 Loans at December 31, 2020 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 |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 52 $ 52 $ — $ 122 $ 122 $ — Construction and Land Development 140 747 — 156 763 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 884 884 — 884 884 — 1st REM - Rentals 467 467 — 614 614 — CRE Owner Occupied 864 864 — 870 870 — CRE Non Owner Occupied 3,615 3,615 — 12,388 12,388 — Totals 6,022 6,629 — 15,034 15,641 — Loans With An Allowance for Loan Losses: Commercial 1,161 1,165 275 117 120 37 Consumer and Other 12 12 12 13 13 13 Totals 1,173 1,177 287 130 133 50 Grand Totals $ 7,195 $ 7,806 $ 287 $ 15,164 $ 15,774 $ 50 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three months and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 53 $ — $ 150 $ 3 $ 56 $ 2 $ 156 $ 5 Construction and Land Development 144 — 168 — 147 — 172 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 883 11 329 — 884 22 329 — 1st REM - Rentals 471 6 926 11 473 12 929 22 CRE Owner Occupied 867 3 1,844 25 869 6 1,840 50 CRE Non Owner Occupied 3,624 52 222 3 3,635 91 224 6 Totals 6,042 72 3,639 42 6,064 133 3,650 83 Loans With An Allowance for Loan Losses: Commercial 1,162 14 109 — 1,161 26 110 1 Consumer and Other 12 — 34 1 13 — 34 1 Totals 1,174 14 143 1 1,174 26 144 2 Grand Totals $ 7,216 $ 86 $ 3,782 $ 43 $ 7,238 $ 159 $ 3,794 $ 85 |
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 June 30, 2021 and December 31, 2020, based on the most recent analysis performed by management: June 30, 2021 Pass Watch Substandard Total Commercial $ 293,690 $ 26,571 $ 1,213 $ 321,474 Paycheck Protection Program 99,072 — — 99,072 Construction and Land Development 251,433 — 140 251,573 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 27,000 — 883 27,883 1st REM - 1-4 Family 45,670 696 168 46,534 LOCs and 2nd REM - Rentals 20,413 20 — 20,433 1st REM - Rentals 182,794 — 299 183,093 Multifamily 790,275 — — 790,275 CRE Owner Occupied 86,642 — 865 87,507 CRE Non-owner Occupied 725,077 29,409 3,615 758,101 Consumer and Other 8,229 — 12 8,241 Totals $ 2,530,295 $ 56,696 $ 7,195 $ 2,594,186 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 Non-owner 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 |
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 June 30, 2021 and December 31, 2020: Accruing Interest 30-89 Days 90 Days or June 30, 2021 Current Past Due More Past Due Nonaccrual Total Commercial $ 321,468 $ — $ — $ 6 $ 321,474 Paycheck Protection Program 99,072 — — — 99,072 Construction and Land Development 251,433 — — 140 251,573 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 27,883 — — — 27,883 1st REM - 1-4 Family 46,534 — — — 46,534 LOCs and 2nd REM - Rentals 20,433 — — — 20,433 1st REM - Rentals 183,093 — — — 183,093 Multifamily 790,275 — — — 790,275 CRE Owner Occupied 86,892 — — 615 87,507 CRE Non-owner Occupied 758,101 — — — 758,101 Consumer and Other 8,241 — — — 8,241 Totals $ 2,593,425 $ — $ — $ 761 $ 2,594,186 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 Non-owner Occupied 709,300 — — — 709,300 Consumer and Other 7,689 — — — 7,689 Totals $ 2,325,640 $ 13 $ — $ 775 $ 2,326,428 |
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 June 30, 2021: Interest-Only Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 3,547 7 $ 4,778 1 $ 8,325 8 Real Estate Mortgage: CRE Owner Occupied 615 3 — — 615 3 CRE Nonowner Occupied 24,997 8 — — 24,997 8 Totals $ 29,159 18 $ 4,778 1 $ 33,937 19 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits. | |
Schedule of composition of deposits | The following table presents the composition of deposits at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Transaction Deposits $ 1,190,146 $ 1,038,193 Savings and Money Market Deposits 761,485 657,617 Time Deposits 321,857 353,543 Brokered Deposits 447,418 452,283 Totals $ 2,720,906 $ 2,501,636 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest Rate Swap Agreements: Assets $ 49,400 $ 868 $ 49,696 $ 2,701 Liabilities 49,400 (868) 49,696 (2,701) Total $ 98,800 $ — $ 99,392 $ — |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Amount $ 125,000 $ 111,000 Weighted Average Pay Rate 1.02 % 1.26 % Weighted Average Receive Rate 0.14 % 0.22 % Weighted Average Maturity (Years) 4.27 3.95 Net Unrealized Loss $ (1,098) $ (3,410) |
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 six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2021 2020 2021 2020 Derivatives in Location of Loss Loss Loss Cash Flow Hedging Reclassified from Reclassified from Reclassified from Relationships AOCI into Income AOCI into Earnings AOCI into Earnings Interest rate swaps Interest expense $ (275) $ (53) $ (537) $ (72) Interest rate caps Interest expense (70) — (136) — |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Interest Rate Swap Agreements: Assets $ 55,000 $ 809 $ 5,000 $ 56 Liabilities 70,000 (1,907) 106,000 (3,466) Interest Rate Cap Agreements: Assets 60,000 4,431 50,000 2,834 |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 3,011 $ — $ 1,867 $ — Federal Historic Tax Credit (FHTC) Equity 2,035 967 2,198 1,858 Total $ 5,046 $ 967 $ 4,065 $ 1,858 (1) All commitments are expected to be paid by the Company by June 30, 2022. |
Schedule of amortization expense and tax benefit for qualified affordable housing projects and other tax credit investments | The following table presents a summary of the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amortization Expense (1) LIHTC $ 70 $ 70 $ 140 $ 141 FHTC 140 362 258 447 Total $ 210 $ 432 $ 398 $ 588 Tax Benefit Recognized (2) LIHTC $ (83) $ (82) $ (165) $ (165) FHTC (156) (447) (313) (617) Total $ (239) $ (529) $ (478) $ (782) (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 an_2
Commitments, Contingencies and Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments, Contingencies and Credit Risk | |
Schedule of commitments outstanding | The following commitments were outstanding at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Unfunded Commitments Under Lines of Credit $ 800,914 $ 644,338 Letters of Credit 102,455 90,206 Totals $ 903,369 $ 734,544 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 of valuing stock option grants for the six months ended June 30, 2021, are as follows: June 30, 2021 Dividend Yield — % Expected Life 7 Years Expected Volatility 29.93 % Risk-Free Interest Rate 1.14 % |
Summary of the status of the Company's outstanding stock options | The following table presents a summary of the status of the Company’s stock option grants for the six months ended June 30, 2021: June 30, 2021 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,914,250 $ 7.29 Granted 20,500 16.88 Exercised (26,400) 5.81 Forfeitures (800) 7.47 Outstanding at Period End 1,907,550 $ 7.42 Options Exercisable at Period End 1,200,950 $ 6.06 |
Summary of information pertaining to options outstanding based on range of exercise price | The following table presents information pertaining to options outstanding at June 30, 2021: 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 - 3.99 509,250 $ 2.95 2.5 509,250 $ 2.95 7.00 - 7.99 963,000 7.47 6.3 571,400 7.47 8.00 - 8.99 20,000 8.76 8.8 1,250 8.76 10.00 - 10.99 10,000 10.08 8.9 2,500 10.08 11.00 - 11.99 85,000 11.27 7.9 24,000 11.33 12.00 - 12.99 274,800 12.89 8.1 77,550 12.90 13.00 - 13.99 25,000 13.22 6.9 15,000 13.22 16.00 - 16.99 10,000 16.23 9.8 — 16.23 17.00 - 17.99 10,500 17.49 9.9 — 17.49 Totals 1,907,550 $ 7.42 5.7 1,200,950 $ 6.06 |
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 six months ended June 30, 2021: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2020 708,900 $ 3.24 Granted 20,500 5.66 Vested (22,000) 4.23 Forfeited (800) 7.47 Nonvested Options at June 30, 2021 706,600 $ 3.27 |
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 six months ended June 30, 2021: Weighted Number of Average Grant Shares Date Fair Value Nonvested Awards at December 31, 2020 110,962 $ 12.63 Granted — — Vested (2,784) 10.32 Forfeited — — Nonvested Awards at June 30, 2021 108,178 $ 12.69 |
Summary of the status of the Company's outstanding restricted stock units | The following table presents an analysis of nonvested restricted stock units outstanding for the six months ended June 30, 2021: Weighted Number of Average Grant Units Date Fair Value Nonvested Units at December 31, 2020 205,666 $ 12.27 Granted 9,600 15.10 Vested — — Forfeited (1,080) 12.27 Nonvested Units at June 30, 2021 214,186 $ 12.40 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations June 30, 2021 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 388,317 13.49 % $ 230,349 8.00 % $ 302,333 10.50 % N/A N/A Tier 1 Risk-Based Capital 278,388 9.67 172,762 6.00 244,746 8.50 N/A N/A Common Equity Tier 1 Capital 278,388 9.67 129,571 4.50 201,555 7.00 N/A N/A Tier 1 Leverage Ratio 278,388 9.08 122,618 4.00 122,618 4.00 N/A N/A Bank: Total Risk-Based Capital $ 359,586 12.49 % $ 230,314 8.00 % $ 302,287 10.50 % $ 287,892 10.00 % Tier 1 Risk-Based Capital 323,575 11.24 172,735 6.00 244,708 8.50 230,314 8.00 Common Equity Tier 1 Capital 323,575 11.24 129,551 4.50 201,524 7.00 187,130 6.50 Tier 1 Leverage Ratio 323,575 10.57 122,507 4.00 122,507 4.00 153,133 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, 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 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 1,010 $ — $ — $ 1,010 Municipal Bonds — 126,015 — 126,015 Mortgage-Backed Securities — 124,842 — 124,842 Corporate Securities — 76,763 — 76,763 SBA Securities — 36,146 — 36,146 Asset-Backed Securities — 38,010 — 38,010 Interest Rate Caps — 4,431 — 4,431 Interest Rate Swaps — 1,677 — 1,677 Total Fair Value of Financial Assets $ 1,010 $ 407,884 $ — $ 408,894 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 2,775 $ — $ 2,775 Total Fair Value of Financial Liabilities $ — $ 2,775 $ — $ 2,775 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 |
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 at June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 886 $ — $ 287 Totals $ — $ 886 $ — $ 287 December 31, 2020 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 80 $ — $ 50 Totals $ — $ 80 $ — $ 50 |
Summary of carrying amount and estimated fair values of financial instruments | The following tables present the carrying amount and estimated fair values of financial instruments at June 30, 2021 and December 31, 2020: June 30, 2021 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 92,197 $ 92,197 $ — $ — $ 92,197 Bank-Owned Certificates of Deposit 2,368 — 2,395 — 2,395 Securities Available for Sale 402,786 1,010 401,776 — 402,786 FHLB Stock, at Cost 5,832 — 5,832 — 5,832 Loans, Net 2,545,145 — 2,534,398 — 2,534,398 Accrued Interest Receivable 8,728 — 8,728 — 8,728 Interest Rate Caps 4,431 — 4,431 — 4,431 Interest Rate Swaps 1,677 — 1,677 — 1,677 Financial Liabilities: Deposits $ 2,720,906 $ — $ 2,687,228 $ — $ 2,687,228 FHLB Advances 57,500 — 58,096 — 58,096 Subordinated Debentures 73,913 — 77,452 — 77,452 Accrued Interest Payable 2,654 — 2,654 — 2,654 Interest Rate Swaps 2,775 — 2,775 — 2,775 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 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share | ||||
Anti dilutive securities excluded from the calculation of EPS | 23,000 | 561,000 | 56,000 | 560,000 |
Net Income Available to Common Shareholders | $ 10,993 | $ 7,598 | $ 21,664 | $ 15,041 |
Weighted Average Common Stock Outstanding: | ||||
Weighted Average Common Stock Outstanding (Basic) | 28,040,762 | 28,676,441 | 28,029,129 | 28,733,968 |
Dilutive Effect of Stock Compensation | 1,087,419 | 488,716 | 1,019,295 | 616,458 |
Weighted Average Common Stock Outstanding (Dilutive) | 29,128,181 | 29,165,157 | 29,048,424 | 29,350,426 |
Basic Earnings per Common Share (in dollars per share) | $ 0.39 | $ 0.26 | $ 0.77 | $ 0.52 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.38 | $ 0.26 | $ 0.75 | $ 0.51 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | $ 391,584 | $ 379,076 |
Gross Unrealized Gains | 14,193 | 13,650 |
Gross Unrealized Losses | (2,991) | (2,097) |
Fair Value | 402,786 | 390,629 |
U.S. Treasury Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 1,009 | |
Gross Unrealized Gains | 1 | |
Fair Value | 1,010 | |
Municipal Bonds | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 118,599 | 105,975 |
Gross Unrealized Gains | 8,219 | 9,373 |
Gross Unrealized Losses | (803) | (336) |
Fair Value | 126,015 | 115,012 |
Mortgage-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 125,053 | 123,395 |
Gross Unrealized Gains | 1,640 | 2,029 |
Gross Unrealized Losses | (1,851) | (1,164) |
Fair Value | 124,842 | 124,260 |
Corporate Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 74,002 | 71,116 |
Gross Unrealized Gains | 2,849 | 1,240 |
Gross Unrealized Losses | (88) | (201) |
Fair Value | 76,763 | 72,155 |
SBA Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 36,302 | 40,455 |
Gross Unrealized Gains | 93 | 32 |
Gross Unrealized Losses | (249) | (380) |
Fair Value | 36,146 | 40,107 |
Asset-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 36,619 | 38,135 |
Gross Unrealized Gains | 1,391 | 976 |
Gross Unrealized Losses | (16) | |
Fair Value | $ 38,010 | $ 39,095 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)security | Dec. 31, 2020USD ($)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 | $ 75,523 | $ 86,545 |
Less Than 12 Months, Unrealized Losses | (1,914) | (1,642) |
12 Months or Greater, Fair Value | 40,419 | 32,545 |
12 Months or Greater, Unrealized Losses | (1,077) | (455) |
Fair Value | 115,942 | 119,090 |
Unrealized Losses | $ (2,991) | $ (2,097) |
Number of debt securities with unrealized losses | security | 141 | 150 |
Percentage of aggregate depreciation from amortized cost basis | 2.50% | 1.70% |
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 | $ 18,445 | $ 12,023 |
Less Than 12 Months, Unrealized Losses | (407) | (329) |
12 Months or Greater, Fair Value | 3,884 | 223 |
12 Months or Greater, Unrealized Losses | (396) | (7) |
Fair Value | 22,329 | 12,246 |
Unrealized Losses | (803) | (336) |
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 | 46,041 | 45,120 |
Less Than 12 Months, Unrealized Losses | (1,438) | (1,163) |
12 Months or Greater, Fair Value | 13,310 | 1,699 |
12 Months or Greater, Unrealized Losses | (413) | (1) |
Fair Value | 59,351 | 46,819 |
Unrealized Losses | (1,851) | (1,164) |
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 | 11,037 | 23,643 |
Less Than 12 Months, Unrealized Losses | (69) | (131) |
12 Months or Greater, Fair Value | 981 | 2,430 |
12 Months or Greater, Unrealized Losses | (19) | (70) |
Fair Value | 12,018 | 26,073 |
Unrealized Losses | (88) | (201) |
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 | |
Less Than 12 Months, Unrealized Losses | (3) | |
12 Months or Greater, Fair Value | 22,244 | 28,193 |
12 Months or Greater, Unrealized Losses | (249) | (377) |
Fair Value | 22,244 | 31,481 |
Unrealized Losses | $ (249) | (380) |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Contractual maturities, amortized cost | ||
Due in One Year or Less | $ 11,297 | |
Due After One Year Through Five Years | 82,321 | |
Due After Five Years Through 10 Years | 66,836 | |
Due After 10 Years | 33,156 | |
Subtotal | 193,610 | |
Totals | 391,584 | $ 379,076 |
Contractual maturities, fair value | ||
Due in One Year or Less | 11,409 | |
Due After One Year Through Five Years | 86,414 | |
Due After Five Years Through 10 Years | 70,702 | |
Due After 10 Years | 35,263 | |
Subtotal | 203,788 | |
Totals | 402,786 | 390,629 |
Mortgage-Backed Securities | ||
Contractual maturities, amortized cost | ||
Totals | 125,053 | 123,395 |
Contractual maturities, fair value | ||
Totals | 124,842 | 124,260 |
SBA Securities | ||
Contractual maturities, amortized cost | ||
Totals | 36,302 | 40,455 |
Contractual maturities, fair value | ||
Totals | 36,146 | 40,107 |
Asset-Backed Securities | ||
Contractual maturities, amortized cost | ||
Totals | 36,619 | 38,135 |
Contractual maturities, fair value | ||
Totals | $ 38,010 | $ 39,095 |
Securities - Available for Sale
Securities - Available for Sale Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | ||||
Proceeds From Sales of Securities | $ 6,107 | $ 31,936 | $ 7,757 | $ 34,038 |
Gross Gains on Sales | $ 702 | 1,435 | $ 702 | 1,438 |
Gross Losses on Sales | $ (74) | $ (74) |
Loans - Components of loans (De
Loans - Components of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Components of loans | ||||||
Total Loans, Gross | $ 2,594,186 | $ 2,326,428 | ||||
Allowance for Loan Losses | (37,591) | $ (35,987) | (34,841) | $ (27,633) | $ (24,585) | $ (22,526) |
Net Deferred Loan Fees | (11,450) | (9,151) | ||||
Total Loans, Net | 2,545,145 | 2,282,436 | ||||
Commercial | ||||||
Components of loans | ||||||
Total Loans, Gross | 321,474 | 304,220 | ||||
Allowance for Loan Losses | (6,525) | (6,451) | (5,703) | (5,192) | (3,557) | (3,058) |
Paycheck Protection Program (PPP), CARES Act | ||||||
Components of loans | ||||||
Total Loans, Gross | 99,072 | 138,454 | ||||
Allowance for Loan Losses | (50) | (83) | (70) | (90) | ||
Construction and Land Development | ||||||
Components of loans | ||||||
Total Loans, Gross | 251,573 | 170,217 | ||||
Allowance for Loan Losses | (3,427) | (2,773) | (2,491) | (2,173) | (2,131) | (2,202) |
Real Estate Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 1,913,826 | 1,705,848 | ||||
1-4 Family Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 277,943 | 294,479 | ||||
Allowance for Loan Losses | (3,502) | (3,894) | (3,972) | (3,322) | (3,202) | (2,839) |
Multifamily | ||||||
Components of loans | ||||||
Total Loans, Gross | 790,275 | 626,465 | ||||
Allowance for Loan Losses | (11,150) | (9,856) | (9,517) | (6,697) | (6,556) | (5,824) |
CRE Owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 87,507 | 75,604 | ||||
Allowance for Loan Losses | (1,244) | (1,187) | (1,162) | (964) | (938) | (792) |
CRE Non-owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 758,101 | 709,300 | ||||
Allowance for Loan Losses | (11,018) | (11,026) | (10,991) | (8,323) | (8,003) | (6,972) |
Consumer and other | ||||||
Components of loans | ||||||
Total Loans, Gross | 8,241 | 7,689 | ||||
Allowance for Loan Losses | $ (220) | $ (232) | $ (203) | $ (174) | $ (92) | $ (85) |
Loans - Allowance for loan loss
Loans - Allowance for loan losses by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Allowance for Loan Losses: | |||||
Beginning Balance | $ 35,987 | $ 24,585 | $ 34,841 | $ 22,526 | $ 22,526 |
Provision for Loan Losses | 1,600 | 3,000 | 2,700 | 5,100 | |
Loans Charged-off | (3) | (1) | (17) | (48) | |
Recoveries of Loans | 7 | 49 | 67 | 55 | |
Total Ending Allowance Balance | 37,591 | 27,633 | 37,591 | 27,633 | 34,841 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 287 | 287 | 50 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 37,304 | 37,304 | 34,791 | ||
Loans and Leases Receivable, Allowance, Total | 37,591 | 27,633 | 37,591 | 27,633 | 34,841 |
Loans, Individually Evaluated for Impairment | 7,195 | 7,195 | 15,164 | ||
Loans, Collectively Evaluated for Impairment | 2,586,991 | 2,586,991 | 2,311,264 | ||
Totals | 2,594,186 | 2,594,186 | 2,326,428 | ||
Commercial | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 6,451 | 3,557 | 5,703 | 3,058 | 3,058 |
Provision for Loan Losses | 71 | 1,633 | 800 | 2,164 | |
Loans Charged-off | (34) | ||||
Recoveries of Loans | 3 | 2 | 22 | 4 | |
Total Ending Allowance Balance | 6,525 | 5,192 | 6,525 | 5,192 | 5,703 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 275 | 275 | 37 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 6,250 | 6,250 | 5,666 | ||
Loans and Leases Receivable, Allowance, Total | 6,525 | 5,192 | 6,525 | 5,192 | 5,703 |
Loans, Individually Evaluated for Impairment | 1,213 | 1,213 | 239 | ||
Loans, Collectively Evaluated for Impairment | 320,261 | 320,261 | 303,981 | ||
Totals | 321,474 | 321,474 | 304,220 | ||
Paycheck Protection Program (PPP), CARES Act | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 83 | 70 | |||
Provision for Loan Losses | (33) | 90 | (20) | 90 | |
Total Ending Allowance Balance | 50 | 90 | 50 | 90 | 70 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 50 | 50 | 70 | ||
Loans and Leases Receivable, Allowance, Total | 50 | 90 | 50 | 90 | 70 |
Loans, Collectively Evaluated for Impairment | 99,072 | 99,072 | 138,454 | ||
Totals | 99,072 | 99,072 | 138,454 | ||
Construction and Land Development | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 2,773 | 2,131 | 2,491 | 2,202 | 2,202 |
Provision for Loan Losses | 654 | 42 | 936 | (29) | |
Total Ending Allowance Balance | 3,427 | 2,173 | 3,427 | 2,173 | 2,491 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 3,427 | 3,427 | 2,491 | ||
Loans and Leases Receivable, Allowance, Total | 3,427 | 2,173 | 3,427 | 2,173 | 2,491 |
Loans, Individually Evaluated for Impairment | 140 | 140 | 156 | ||
Loans, Collectively Evaluated for Impairment | 251,433 | 251,433 | 170,061 | ||
Totals | 251,573 | 251,573 | 170,217 | ||
1-4 Family Mortgage | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 3,894 | 3,202 | 3,972 | 2,839 | 2,839 |
Provision for Loan Losses | (394) | 74 | (470) | 435 | |
Loans Charged-off | (5) | ||||
Recoveries of Loans | 2 | 46 | 5 | 48 | |
Total Ending Allowance Balance | 3,502 | 3,322 | 3,502 | 3,322 | 3,972 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 3,502 | 3,502 | 3,972 | ||
Loans and Leases Receivable, Allowance, Total | 3,502 | 3,322 | 3,502 | 3,322 | 3,972 |
Loans, Individually Evaluated for Impairment | 1,350 | 1,350 | 1,498 | ||
Loans, Collectively Evaluated for Impairment | 276,593 | 276,593 | 292,981 | ||
Totals | 277,943 | 277,943 | 294,479 | ||
Multifamily | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 9,856 | 6,556 | 9,517 | 5,824 | 5,824 |
Provision for Loan Losses | 1,294 | 141 | 1,633 | 873 | |
Total Ending Allowance Balance | 11,150 | 6,697 | 11,150 | 6,697 | 9,517 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 11,150 | 11,150 | 9,517 | ||
Loans and Leases Receivable, Allowance, Total | 11,150 | 6,697 | 11,150 | 6,697 | 9,517 |
Loans, Collectively Evaluated for Impairment | 790,275 | 790,275 | 626,465 | ||
Totals | 790,275 | 790,275 | 626,465 | ||
CRE Owner Occupied | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 1,187 | 938 | 1,162 | 792 | 792 |
Provision for Loan Losses | 57 | 26 | 50 | 172 | |
Recoveries of Loans | 32 | ||||
Total Ending Allowance Balance | 1,244 | 964 | 1,244 | 964 | 1,162 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 1,244 | 1,244 | 1,162 | ||
Loans and Leases Receivable, Allowance, Total | 1,244 | 964 | 1,244 | 964 | 1,162 |
Loans, Individually Evaluated for Impairment | 865 | 865 | 870 | ||
Loans, Collectively Evaluated for Impairment | 86,642 | 86,642 | 74,734 | ||
Totals | 87,507 | 87,507 | 75,604 | ||
CRE Non-owner Occupied | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 11,026 | 8,003 | 10,991 | 6,972 | 6,972 |
Provision for Loan Losses | (8) | 320 | 27 | 1,351 | |
Total Ending Allowance Balance | 11,018 | 8,323 | 11,018 | 8,323 | 10,991 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 11,018 | 11,018 | 10,991 | ||
Loans and Leases Receivable, Allowance, Total | 11,018 | 8,323 | 11,018 | 8,323 | 10,991 |
Loans, Individually Evaluated for Impairment | 3,615 | 3,615 | 12,388 | ||
Loans, Collectively Evaluated for Impairment | 754,486 | 754,486 | 696,912 | ||
Totals | 758,101 | 758,101 | 709,300 | ||
Consumer and other | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 232 | 92 | 203 | 85 | 85 |
Provision for Loan Losses | (11) | 82 | 21 | 100 | |
Loans Charged-off | (3) | (1) | (12) | (14) | |
Recoveries of Loans | 2 | 1 | 8 | 3 | |
Total Ending Allowance Balance | 220 | 174 | 220 | 174 | 203 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 12 | 12 | 13 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 208 | 208 | 190 | ||
Loans and Leases Receivable, Allowance, Total | 220 | 174 | 220 | 174 | 203 |
Loans, Individually Evaluated for Impairment | 12 | 12 | 13 | ||
Loans, Collectively Evaluated for Impairment | 8,229 | 8,229 | 7,676 | ||
Totals | 8,241 | 8,241 | 7,689 | ||
Unallocated | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 485 | 106 | 732 | 754 | 754 |
Provision for Loan Losses | (30) | 592 | (277) | (56) | |
Total Ending Allowance Balance | 455 | 698 | 455 | 698 | 732 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 455 | 455 | 732 | ||
Loans and Leases Receivable, Allowance, Total | $ 455 | $ 698 | $ 455 | $ 698 | $ 732 |
Loans - Impaired loans by loan
Loans - Impaired loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | $ 6,022 | $ 15,034 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 6,629 | 15,641 |
Loans With An Allowance for Loan Losses, Recorded Investment | 1,173 | 130 |
Loans With An Allowance for Loan Losses, Principal Balance | 1,177 | 133 |
Total Recorded Investment | 7,195 | 15,164 |
Total Principal Balance | 7,806 | 15,774 |
Related Allowance | 287 | 50 |
Commercial | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 52 | 122 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 52 | 122 |
Loans With An Allowance for Loan Losses, Recorded Investment | 1,161 | 117 |
Loans With An Allowance for Loan Losses, Principal Balance | 1,165 | 120 |
Related Allowance | 275 | 37 |
Construction and Land Development | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 140 | 156 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 747 | 763 |
HELOC and 1-4 Family Junior Mortgage | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 884 | 884 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 884 | 884 |
1st REM - Rentals | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 467 | 614 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 467 | 614 |
Consumer and other | ||
Impaired loans by loan segment | ||
Loans With An Allowance for Loan Losses, Recorded Investment | 12 | 13 |
Loans With An Allowance for Loan Losses, Principal Balance | 12 | 13 |
Related Allowance | 12 | 13 |
CRE Owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 864 | 870 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 864 | 870 |
CRE Non-owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 3,615 | 12,388 |
Loans With No Related Allowance for Loan Losses, Principal Balance | $ 3,615 | $ 12,388 |
Loans - Average balances and in
Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 6,042 | $ 3,639 | $ 6,064 | $ 3,650 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 72 | 42 | 133 | 83 |
Loans With An Allowance for Loan Losses, Average Investment | 1,174 | 143 | 1,174 | 144 |
Loans With An Allowance for Loan Losses, Interest Recognized | 14 | 1 | 26 | 2 |
Total Average Investment | 7,216 | 3,782 | 7,238 | 3,794 |
Total Interest Recognized | 86 | 43 | 159 | 85 |
Commercial | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 53 | 150 | 56 | 156 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 3 | 2 | 5 | |
Loans With An Allowance for Loan Losses, Average Investment | 1,162 | 109 | 1,161 | 110 |
Loans With An Allowance for Loan Losses, Interest Recognized | 14 | 26 | 1 | |
Construction and Land Development | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 144 | 168 | 147 | 172 |
HELOC and 1-4 Family Junior Mortgage | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 883 | 329 | 884 | 329 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 11 | 22 | ||
1st REM - Rentals | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 471 | 926 | 473 | 929 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 6 | 11 | 12 | 22 |
CRE Owner Occupied | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 867 | 1,844 | 869 | 1,840 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 3 | 25 | 6 | 50 |
CRE Non-owner Occupied | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 3,624 | 222 | 3,635 | 224 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 52 | 3 | 91 | 6 |
Consumer and other | ||||
Impaired loans by loan segment | ||||
Loans With An Allowance for Loan Losses, Average Investment | $ 12 | 34 | $ 13 | 34 |
Loans With An Allowance for Loan Losses, Interest Recognized | $ 1 | $ 1 |
Loans - Risk category of loans
Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 2,594,186 | $ 2,326,428 |
Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 2,530,295 | 2,266,469 |
Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 56,696 | 44,795 |
Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 7,195 | 15,164 |
Commercial | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 321,474 | 304,220 |
Commercial | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 293,690 | 289,465 |
Commercial | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 26,571 | 14,516 |
Commercial | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,213 | 239 |
Paycheck Protection Program (PPP), CARES Act | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 99,072 | 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 | 99,072 | 138,454 |
Construction and Land Development | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 251,573 | 170,217 |
Construction and Land Development | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 251,433 | 170,061 |
Construction and Land Development | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 140 | 156 |
HELOC and 1-4 Family Junior Mortgage | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 27,883 | 30,280 |
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 | 27,000 | 29,396 |
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 | 883 | 884 |
1st REM - 1-4 Family | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 46,534 | 41,942 |
1st REM - 1-4 Family | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 45,670 | 41,239 |
1st REM - 1-4 Family | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 696 | 703 |
1st REM - 1-4 Family | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 168 | |
LOCs and 2nd REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 20,433 | 20,678 |
LOCs and 2nd REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 20,413 | 20,678 |
LOCs and 2nd REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 20 | |
1st REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 183,093 | 201,579 |
1st REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 182,794 | 200,965 |
1st REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 299 | 614 |
Multifamily | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 790,275 | 626,465 |
Multifamily | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 790,275 | 626,465 |
CRE Owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 87,507 | 75,604 |
CRE Owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 86,642 | 74,734 |
CRE Owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 865 | 870 |
CRE Non-owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 758,101 | 709,300 |
CRE Non-owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 725,077 | 667,336 |
CRE Non-owner Occupied | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 29,409 | 29,576 |
CRE Non-owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 3,615 | 12,388 |
Consumer and other | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 8,241 | 7,689 |
Consumer and other | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 8,229 | 7,676 |
Consumer and other | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 12 | $ 13 |
Loans - Recorded investment in
Loans - Recorded investment in past due loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Aging of the recorded investment in past due loans by loan segment | ||
Current | $ 2,593,425 | $ 2,325,640 |
Nonaccrual | 761 | 775 |
Totals | 2,594,186 | 2,326,428 |
30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Past Due | 13 | |
Commercial | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 321,468 | 304,211 |
Nonaccrual | 6 | 6 |
Totals | 321,474 | 304,220 |
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 | 99,072 | 138,454 |
Totals | 99,072 | 138,454 |
Construction and Land Development | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 251,433 | 170,061 |
Nonaccrual | 140 | 156 |
Totals | 251,573 | 170,217 |
HELOC and 1-4 Family Junior Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 27,883 | 30,280 |
Totals | 27,883 | 30,280 |
1st REM - 1-4 Family | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 46,534 | 41,942 |
Totals | 46,534 | 41,942 |
LOCs and 2nd REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 20,433 | 20,668 |
Totals | 20,433 | 20,678 |
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 | 183,093 | 201,579 |
Totals | 183,093 | 201,579 |
Multifamily | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 790,275 | 626,465 |
Totals | 790,275 | 626,465 |
CRE Owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 86,892 | 74,991 |
Nonaccrual | 615 | 613 |
Totals | 87,507 | 75,604 |
CRE Non-owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 758,101 | 709,300 |
Totals | 758,101 | 709,300 |
Consumer and other | ||
Aging of the recorded investment in past due loans by loan segment | ||
Current | 8,241 | 7,689 |
Totals | $ 8,241 | $ 7,689 |
Loans - Summary of loans modifi
Loans - Summary of loans modified in TDRs and those restructurings (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Loans | ||
Troubled Debt Restructurings, Number of Loans | 3 | 3 |
New Troubled Debt Restructurings, Post-Modification Outstanding Balance | $ | $ 399 | $ 421 |
New Troubled Debt Restructurings, Number of Loans | 0 | |
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 | 6 Months Ended |
Jun. 30, 2021USD ($)loan | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 33,937 |
Number of Loans | loan | 19 |
Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 8,325 |
Number of Loans | loan | 8 |
CRE Owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 615 |
Number of Loans | loan | 3 |
CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 24,997 |
Number of Loans | loan | 8 |
Interest Only | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 29,159 |
Number of Loans | loan | 18 |
Interest Only | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 3,547 |
Number of Loans | loan | 7 |
Interest Only | CRE Owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 615 |
Number of Loans | loan | 3 |
Interest Only | CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 24,997 |
Number of Loans | loan | 8 |
Extended Amortization | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,778 |
Number of Loans | loan | 1 |
Extended Amortization | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,778 |
Number of Loans | loan | 1 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits, by Type [Abstract] | ||
Transaction Deposits | $ 1,190,146 | $ 1,038,193 |
Savings and Money Market Deposits | 761,485 | 657,617 |
Time Deposits | 321,857 | 353,543 |
Brokered Deposits | 447,418 | 452,283 |
Total Deposits | $ 2,720,906 | $ 2,501,636 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | Mar. 01, 2021 | Feb. 25, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Notes Payable | ||||
Repayment of note payable | $ 11,000 | $ 11,000 | $ 1,000 | |
Loan and Security Agreement | ||||
Notes Payable | ||||
Outstanding balance under the revolving line of credit | $ 0 | |||
Bank stock (as a percent) | 100.00% | |||
Loan and Security Agreement | Revolving Line of Credit | ||||
Notes Payable | ||||
Maximum principal amount | $ 25,000 | |||
Variable spread on debt (as a percent) | 3.85% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Non-hedge Derivatives (Details) - Interest Rate Swap - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Estimated Fair Value, Asset | $ 1,677 | $ 2,757 |
Estimated Fair Value, Liability | (2,775) | (6,167) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 49,400 | 49,696 |
Notional Amount, Liability | 49,400 | 49,696 |
Notional Amount | 98,800 | 99,392 |
Estimated Fair Value, Asset | 868 | 2,701 |
Estimated Fair Value, Liability | $ (868) | $ (2,701) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Derivatives (Details) - Cash flow hedge - Designated as Hedging Instrument - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cash Flow Hedging Derivatives | ||
Amount expected to be reclassified from AOCI into earnings | $ (1,213,000) | |
Interest Rate Swap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | $ 125,000,000 | $ 111,000,000 |
Weighted Average Pay Rate | 1.02% | 1.26% |
Weighted Average Receive Rate | 0.14% | 0.22% |
Derivative Weighted Average Maturity | 4 years 3 months 7 days | 3 years 11 months 12 days |
Net Unrealized Gain (Loss) | $ (1,098,000) | $ (3,410,000) |
Interest Rate Cap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | 60,000,000 | 60,000,000 |
Initial premium paid | 352,000 | $ 2,689,000 |
Amortization of interest rate cap premiums | $ 95,000 | |
Weighted Average Strike Rate | 0.80% | |
Weighted average maturity | 8 years 11 months 15 days |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Cash Flow Hedging Reclassification (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral posted | $ 3,358 | $ 8,526 |
Collateral received | 5,190 | 2,700 |
Cash flow hedge | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 55,000 | 5,000 |
Notional Amount, Liability | 70,000 | 106,000 |
Estimated Fair Value, Asset | 809 | 56 |
Estimated Fair Value, Liability | (1,907) | (3,466) |
Cash flow hedge | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 60,000 | 50,000 |
Estimated Fair Value, Asset | $ 4,431 | $ 2,834 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ 357 | $ 1,307 | $ 29 | $ 1,292 |
Amounts reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | 0 | 0 | 0 |
Amount expected to be reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | 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 | (275) | $ (53) | (537) | $ (72) |
Interest Rate Cap | Interest expense | Cash flow hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ (70) | $ (136) |
Tax Credit Investments - Invest
Tax Credit Investments - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | $ 5,046 | $ 5,046 | $ 4,065 | ||
Unfunded Commitment | 967 | 967 | 1,858 | ||
Amortization Expense | 210 | $ 432 | 398 | $ 588 | |
Tax Benefit Recognized | (239) | (529) | (478) | (782) | |
Low Income Housing Tax Credit (LIHTC) | |||||
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | 3,011 | 3,011 | 1,867 | ||
Amortization Expense | 70 | 70 | 140 | 141 | |
Tax Benefit Recognized | (83) | (82) | (165) | (165) | |
Federal Historic Tax Credit (FHTC) | |||||
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | 2,035 | 2,035 | 2,198 | ||
Unfunded Commitment | 967 | 967 | $ 1,858 | ||
Amortization Expense | 140 | 362 | 258 | 447 | |
Tax Benefit Recognized | $ (156) | $ (447) | $ (313) | $ (617) |
Commitments, Contingencies an_3
Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments Outstanding | ||
Unfunded Commitments Under Lines of Credit | $ 800,914 | $ 644,338 |
Letters of Credit | 102,455 | 90,206 |
Totals | 903,369 | 734,544 |
Federal Home Loan Bank Advances | ||
Commitments Outstanding | ||
Outstanding letters of credit | $ 42,675 | $ 60,091 |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)itemshares | Dec. 31, 2020shares | |
Stock Options and Restricted Stock Awards | ||
Number of banks in the index | item | 51 | |
Minimum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 500 | |
Maximum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 4,000 | |
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 | 30,000 |
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 | 293,900 | 313,600 |
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 | 543,507 | 561,883 |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Black-Scholes Assumptions (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Black-Scholes Assumptions | |
Expected Life | 7 years |
Expected Volatility | 29.93% |
Risk-Free Interest Rate | 1.14% |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Option Plans | ||||
Outstanding at Beginning of Year | 1,914,250 | |||
Granted | 20,500 | |||
Exercised | (26,400) | |||
Forfeitures | (800) | |||
Outstanding at End of Year | 1,907,550 | 1,907,550 | ||
Options Exercisable at End of Year | 1,200,950 | 1,200,950 | ||
Weighted Average Exercise Price | ||||
Outstanding at Beginning of Year | $ 7.29 | |||
Granted | 16.88 | |||
Exercised | 5.81 | |||
Forfeitures | 7.47 | |||
Outstanding at End of Year | $ 7.42 | 7.42 | ||
Options Exercisable at End of Year | $ 6.06 | $ 6.06 | ||
Stock Options | ||||
Weighted Average Exercise Price | ||||
Compensation expense for stock options | $ 229 | $ 230 | $ 452 | $ 448 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Exercise Price (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Exercise Price | |
Options Outstanding, Number Outstanding | shares | 1,907,550 |
Options Outstanding, Weighted Average Exercise Price | $ 7.42 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 8 months 12 days |
Options Exercisable, Number Outstanding | shares | 1,200,950 |
Options Exercisable, Weighted Average Exercise Price | $ 6.06 |
Total unrecognized compensation cost | $ | $ 1,689 |
Weighted-average period over which total unrecognized compensation cost is expected to be recognized (in years) | 2 years 1 month 6 days |
2.13 - 3.99 | |
Exercise Price | |
Exercise Price, lower range | $ 2.13 |
Exercise Price, upper range | $ 3.99 |
Options Outstanding, Number Outstanding | shares | 509,250 |
Options Outstanding, Weighted Average Exercise Price | $ 2.95 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 6 months |
Options Exercisable, Number Outstanding | shares | 509,250 |
Options Exercisable, Weighted Average Exercise Price | $ 2.95 |
7.00 - 7.99 | |
Exercise Price | |
Exercise Price, lower range | 7 |
Exercise Price, upper range | $ 7.99 |
Options Outstanding, Number Outstanding | shares | 963,000 |
Options Outstanding, Weighted Average Exercise Price | $ 7.47 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 3 months 18 days |
Options Exercisable, Number Outstanding | shares | 571,400 |
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 | 20,000 |
Options Outstanding, Weighted Average Exercise Price | $ 8.76 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 9 months 18 days |
Options Exercisable, Number Outstanding | shares | 1,250 |
Options Exercisable, Weighted Average Exercise Price | $ 8.76 |
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 | 8 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 2,500 |
Options Exercisable, Weighted Average Exercise Price | $ 10.08 |
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 | 7 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 24,000 |
Options Exercisable, Weighted Average Exercise Price | $ 11.33 |
12.00 - 12.99 | |
Exercise Price | |
Exercise Price, lower range | 12 |
Exercise Price, upper range | $ 12.99 |
Options Outstanding, Number Outstanding | shares | 274,800 |
Options Outstanding, Weighted Average Exercise Price | $ 12.89 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 1 month 6 days |
Options Exercisable, Number Outstanding | shares | 77,550 |
Options Exercisable, Weighted Average Exercise Price | $ 12.90 |
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 | 6 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 15,000 |
Options Exercisable, Weighted Average Exercise Price | $ 13.22 |
16.00 - 16.99 | |
Exercise Price | |
Exercise Price, lower range | 16 |
Exercise Price, upper range | $ 16.99 |
Options Outstanding, Number Outstanding | shares | 10,000 |
Options Outstanding, Weighted Average Exercise Price | $ 16.23 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 9 months 18 days |
Options Exercisable, Weighted Average Exercise Price | $ 16.23 |
17.00 - 17.99 | |
Exercise Price | |
Exercise Price, lower range | 17 |
Exercise Price, upper range | $ 17.99 |
Options Outstanding, Number Outstanding | shares | 10,500 |
Options Outstanding, Weighted Average Exercise Price | $ 17.49 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 10 months 24 days |
Options Exercisable, Weighted Average Exercise Price | $ 17.49 |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Non-Vested Options (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Nonvested Options at beginning of period | shares | 708,900 |
Granted | shares | 20,500 |
Vested | shares | (22,000) |
Forfeited | shares | (800) |
Nonvested Options at end of period | shares | 706,600 |
Weighted Average Grant Date Fair Value | |
Nonvested Options at beginning of period | $ / shares | $ 3.24 |
Granted | $ / shares | 5.66 |
Vested | $ / shares | 4.23 |
Forfeited | $ / shares | 7.47 |
Nonvested Options at end of period | $ / shares | $ 3.27 |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Compensation expense | ||||
Weighted-average period for non vested restricted stock awards | 2 years 1 month 6 days | |||
Restricted Stock Awards | ||||
Number of Shares | ||||
Vesting period | 4 years | |||
Nonvested Awards at beginning of period | 110,962 | |||
Vested | (2,784) | |||
Nonvested Awards at end of period | 108,178 | 108,178 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested Awards at beginning of period | $ 12.63 | |||
Vested | 10.32 | |||
Nonvested Awards at end of period | $ 12.69 | $ 12.69 | ||
Compensation expense | ||||
Compensation expense recognized | $ 113 | $ 113 | $ 225 | $ 221 |
Unrecognized compensation cost | $ 1,124 | $ 1,124 | ||
Weighted-average period for non vested restricted stock awards | 2 years 6 months | |||
Shares issued for services on board of directors | 9,856 | |||
Value of shares issued for services on board of directors | $ 159 |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Compensation expense | |||||
Weighted-average period for non vested restricted stock awards | 2 years 1 month 6 days | ||||
Restricted Stock Units | |||||
Number of Shares | |||||
Number of shares of common stock on which each RSU is entitled to to receive upon vesting | 1 | ||||
Vesting period | 4 years | ||||
Nonvested Awards at beginning of period | 205,666 | ||||
Granted | 9,600 | ||||
Vested | 0 | ||||
Forfeited | (1,080) | ||||
Nonvested Awards at end of period | 214,186 | 214,186 | 205,666 | ||
Weighted Average Grant Date Fair Value | |||||
Nonvested Awards at beginning of period | $ 12.27 | ||||
Granted | 15.10 | ||||
Forfeited | 12.27 | ||||
Nonvested Awards at end of period | $ 12.40 | $ 12.40 | $ 12.27 | ||
Compensation expense | |||||
Compensation expense recognized | $ 162 | $ 0 | $ 320 | $ 0 | |
Unrecognized compensation cost | $ 2,292 | $ 2,292 | |||
Weighted-average period for non vested restricted stock awards | 4 years | ||||
Restricted stock awards vested | 0 |
Regulatory Capital - Capital Am
Regulatory Capital - Capital Amounts and Ratios (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 388,317 | $ 360,198 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 230,349 | 197,604 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | $ 302,333 | $ 259,355 |
Total Risk-Based Capital, Actual ratio | 0.1349 | 0.1458 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 278,388 | $ 255,530 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 172,762 | 148,203 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 244,746 | $ 209,954 |
Tier 1 Risk-Based Capital, Actual ratio | 0.0967 | 0.1035 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 278,388 | $ 255,530 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 129,571 | 111,152 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 201,555 | $ 172,904 |
Common Equity Tier 1 Capital, Actual ratio | 0.0967 | 0.1035 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7.00% | 7.00% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 278,388 | $ 255,530 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 122,618 | 110,168 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 122,618 | $ 110,168 |
Tier 1 Leverage Ratio, Actual ratio | 0.0908 | 0.0928 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Bank | ||
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 359,586 | $ 330,380 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 230,314 | 197,629 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | 302,287 | 259,388 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 287,892 | $ 247,036 |
Total Risk-Based Capital, Actual ratio | 0.1249 | 0.1337 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.1000 | 0.1000 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 323,575 | $ 299,447 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 172,735 | 148,222 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 244,708 | 209,981 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 230,314 | $ 197,629 |
Tier 1 Risk-Based Capital, Actual ratio | 0.1124 | 0.1212 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 323,575 | $ 299,447 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 129,551 | 111,166 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 201,524 | 172,925 |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 187,130 | $ 160,574 |
Common Equity Tier 1 Capital, Actual ratio | 0.1124 | 0.1212 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7.00% | 7.00% |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 323,575 | $ 299,447 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 122,507 | 109,972 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 122,507 | 109,972 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 153,133 | $ 137,465 |
Tier 1 Leverage Ratio, Actual ratio | 0.1057 | 0.1089 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0500 | 0.0500 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | $ 402,786 | $ 390,629 |
Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 408,894 | 396,220 |
Total Fair Value of Financial Liabilities | 2,775 | 6,167 |
U.S. Treasury Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 1,010 | |
U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 1,010 | |
Municipal Bonds | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 126,015 | 115,012 |
Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 126,015 | 115,012 |
Mortgage-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,842 | 124,260 |
Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,842 | 124,260 |
Corporate Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 76,763 | 72,155 |
Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 76,763 | 72,155 |
SBA Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 36,146 | 40,107 |
SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 36,146 | 40,107 |
Asset-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 38,010 | 39,095 |
Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 38,010 | 39,095 |
Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 4,431 | 2,834 |
Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 4,431 | 2,834 |
Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Interest Rate Swaps | 2,775 | 6,167 |
Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Interest Rate Swaps | 2,775 | 6,167 |
Level 1 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 1,010 | |
Level 1 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 1,010 | |
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 | 1,010 | |
Level 2 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 401,776 | 390,629 |
Level 2 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 407,884 | 396,220 |
Total Fair Value of Financial Liabilities | 2,775 | 6,167 |
Level 2 | Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 126,015 | 115,012 |
Level 2 | Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 124,842 | 124,260 |
Level 2 | Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 76,763 | 72,155 |
Level 2 | SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 36,146 | 40,107 |
Level 2 | Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 38,010 | 39,095 |
Level 2 | Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 4,431 | 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 | 4,431 | 2,834 |
Level 2 | Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Interest Rate Swaps | 2,775 | 6,167 |
Level 2 | Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Interest Rate Swaps | $ 2,775 | $ 6,167 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | $ 1,600 | $ 3,000 | $ 2,700 | $ 5,100 | |
Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 287 | $ 50 | |||
Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 287 | 50 | |||
Level 2 | Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | 886 | 886 | 80 | ||
Level 2 | Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | $ 886 | $ 886 | $ 80 |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Cash and Due From Banks | $ 92,197 | $ 160,675 |
Bank-Owned Certificates of Deposit | 2,368 | 2,860 |
Securities Available for Sale | 402,786 | 390,629 |
FHLB Stock, at Cost | 5,832 | 5,027 |
Loans, Net | 2,545,145 | 2,282,436 |
Accrued Interest Receivable | 8,728 | 9,172 |
Financial Liabilities: | ||
Deposits | 2,720,906 | 2,501,636 |
Notes Payable | 11,000 | |
FHLB Advances | 57,500 | 57,500 |
Subordinated Debentures | 73,913 | 73,739 |
Accrued Interest Payable | 2,654 | 1,615 |
Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 4,431 | 2,834 |
Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Financial Liabilities: | ||
Interest Rate Swaps | 2,775 | 6,167 |
Level 1 | ||
Financial Assets: | ||
Cash and Due From Banks | 92,197 | 160,675 |
Securities Available for Sale | 1,010 | |
Level 2 | ||
Financial Assets: | ||
Bank-Owned Certificates of Deposit | 2,395 | 2,908 |
Securities Available for Sale | 401,776 | 390,629 |
FHLB Stock, at Cost | 5,832 | 5,027 |
Loans, Net | 2,534,398 | 2,309,421 |
Accrued Interest Receivable | 8,728 | 9,172 |
Financial Liabilities: | ||
Deposits | 2,687,228 | 2,509,148 |
Notes Payable | 11,001 | |
FHLB Advances | 58,096 | 58,830 |
Subordinated Debentures | 77,452 | 74,769 |
Accrued Interest Payable | 2,654 | 1,615 |
Level 2 | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 4,431 | 2,834 |
Level 2 | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Financial Liabilities: | ||
Interest Rate Swaps | 2,775 | 6,167 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and Due From Banks | 92,197 | 160,675 |
Bank-Owned Certificates of Deposit | 2,395 | 2,908 |
Securities Available for Sale | 402,786 | 390,629 |
FHLB Stock, at Cost | 5,832 | 5,027 |
Loans, Net | 2,534,398 | 2,309,421 |
Accrued Interest Receivable | 8,728 | 9,172 |
Financial Liabilities: | ||
Deposits | 2,687,228 | 2,509,148 |
Notes Payable | 11,001 | |
FHLB Advances | 58,096 | 58,830 |
Subordinated Debentures | 77,452 | 74,769 |
Accrued Interest Payable | 2,654 | 1,615 |
Estimated Fair Value | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 4,431 | 2,834 |
Estimated Fair Value | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 1,677 | 2,757 |
Financial Liabilities: | ||
Interest Rate Swaps | $ 2,775 | $ 6,167 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Thousands | Jul. 15, 2022 | Jul. 31, 2022 | Jul. 08, 2021 |
3.25% fixed-to-floating rate subordinated notes due 2031 | |||
Subsequent Events | |||
Aggregate principal amount | $ 30,000,000 | ||
Interest rate (as a percent) | 3.25% | ||
3.25% fixed-to-floating rate subordinated notes due 2031 | SOFR | |||
Subsequent Events | |||
Variable spread on debt (as a percent) | 2.52% | ||
5.875% Fixed-to-Floating Rate Subordinated Notes due 2027 | |||
Subsequent Events | |||
Amount redeemed | $ 11,250 | ||
Total amount in exchange offer | 25,000 | ||
Loss on extinguishment of debt | 582 | ||
Prepayment penalties | 532 | ||
Unamortized issuance costs | $ 50 |