Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,579,984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001341317 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | BWB | |
Security Exchange Name | NASDAQ | |
Depositary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares | |
Trading Symbol | BWBBP | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and Cash Equivalents | $ 73,517 | $ 143,473 |
Bank-Owned Certificates of Deposit | 1,138 | 1,876 |
Securities Available for Sale | 482,583 | 439,362 |
Loans, Net of Allowance for Loan Losses of $44,711 at June 30, 2022 (unaudited) and $40,020 at December 31, 2021 | 3,171,638 | 2,769,917 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 9,921 | 5,242 |
Premises and Equipment, Net | 49,294 | 49,395 |
Accrued Interest | 10,010 | 9,186 |
Goodwill | 2,626 | 2,626 |
Other Intangible Assets, Net | 383 | 479 |
Other Assets | 82,154 | 56,103 |
Total Assets | 3,883,264 | 3,477,659 |
Deposits: | ||
Noninterest Bearing | 961,998 | 875,084 |
Interest Bearing | 2,239,955 | 2,071,153 |
Total Deposits | 3,201,953 | 2,946,237 |
Federal Funds Purchased | 86,000 | |
FHLB Advances | 56,500 | 42,500 |
Subordinated Debentures, Net of Issuance Costs | 92,459 | 92,239 |
Accrued Interest Payable | 1,393 | 1,409 |
Other Liabilities | 70,076 | 16,002 |
Total Liabilities | 3,508,381 | 3,098,387 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock- $0.01 par value; Authorized 10,000,000 Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at June 30, 2022 (unaudited) and December 31, 2021 | 66,514 | 66,514 |
Common Stock- $0.01 par value; Authorized 75,000,000 Common Stock - Issued and Outstanding 27,677,372 at June 30, 2022 (unaudited) and 28,206,566 at December 31, 2021 | 277 | 282 |
Additional Paid-In Capital | 96,689 | 104,123 |
Retained Earnings | 222,464 | 199,347 |
Accumulated Other Comprehensive Income (Loss) | (11,061) | 9,006 |
Total Shareholders' Equity | 374,883 | 379,272 |
Total Liabilities and Equity | $ 3,883,264 | $ 3,477,659 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance of loan loss | $ 44,711 | $ 40,020 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 27,677,372 | 28,206,566 |
Common stock, shares outstanding (in shares) | 27,677,372 | 28,206,566 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 27,600 | 27,600 |
Preferred stock, shares outstanding (in shares) | 27,600 | 27,600 |
Liquidation preference | $ 2,500 | $ 2,500 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST INCOME | ||||
Loans, Including Fees | $ 34,358 | $ 28,748 | $ 66,102 | $ 56,656 |
Investment Securities | 3,325 | 2,312 | 6,195 | 4,732 |
Other | 99 | 87 | 179 | 199 |
Total Interest Income | 37,782 | 31,147 | 72,476 | 61,587 |
INTEREST EXPENSE | ||||
Deposits | 3,456 | 3,513 | 6,614 | 7,184 |
Notes Payable | 61 | |||
FHLB Advances | 167 | 228 | 317 | 456 |
Subordinated Debentures | 1,219 | 1,112 | 2,416 | 2,197 |
Federal Funds Purchased | 410 | 6 | 419 | 6 |
Total Interest Expense | 5,252 | 4,859 | 9,766 | 9,904 |
NET INTEREST INCOME | 32,530 | 26,288 | 62,710 | 51,683 |
Provision for Loan Losses | 3,025 | 1,600 | 4,700 | 2,700 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 29,505 | 24,688 | 58,010 | 48,983 |
NONINTEREST INCOME | ||||
Customer Service Fees | 298 | 231 | 579 | 465 |
Net Gain on Sales of Available for Sale Securities | 52 | 702 | 52 | 702 |
Other Income | 1,300 | 670 | 2,576 | 1,444 |
Total Noninterest Income | 1,650 | 1,603 | 3,207 | 2,611 |
NONINTEREST EXPENSE | ||||
Salaries and Employee Benefits | 8,977 | 7,512 | 17,671 | 14,614 |
Occupancy and Equipment | 1,042 | 980 | 2,127 | 2,035 |
Other Expense | 3,733 | 2,985 | 7,462 | 5,751 |
Total Noninterest Expense | 13,752 | 11,477 | 27,260 | 22,400 |
INCOME BEFORE INCOME TAXES | 17,403 | 14,814 | 33,957 | 29,194 |
Provision for Income Taxes | 4,521 | 3,821 | 8,813 | 7,530 |
NET INCOME | 12,882 | 10,993 | 25,144 | 21,664 |
Preferred Stock Dividends | (1,014) | (2,027) | ||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 11,868 | $ 10,993 | $ 23,117 | $ 21,664 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.39 | $ 0.83 | $ 0.77 |
Diluted (in dollars per share) | $ 0.41 | $ 0.38 | $ 0.80 | $ 0.75 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 12,882 | $ 10,993 | $ 25,144 | $ 21,664 |
Other Comprehensive Income (Loss): | ||||
Unrealized Gains (Losses) on Available for Sale Securities | (15,402) | 2,866 | (38,414) | 350 |
Unrealized Gains (Losses) on Cash Flow Hedges | 4,363 | (2,551) | 13,392 | 3,054 |
Reclassification Adjustment for (Gains) Losses Realized in Income | 207 | (357) | 630 | (29) |
Income Tax Impact | 1,478 | (17) | 4,325 | (712) |
Total Other Comprehensive Income (Loss), Net of Tax | (9,354) | (59) | (20,067) | 2,663 |
Comprehensive Income | $ 3,528 | $ 10,934 | $ 5,077 | $ 24,327 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock. | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
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 | |||||
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 | |||||
Balance at the beginning at Dec. 31, 2021 | $ 66,514 | $ 282 | 104,123 | 199,347 | 9,006 | 379,272 |
Balance at the beginning (in shares) at Dec. 31, 2021 | 28,206,566 | |||||
Stock-based Compensation | 1,681 | 1,681 | ||||
Stock-based Compensation (in shares) | 9,656 | |||||
Comprehensive Income (Loss) | 25,144 | (20,067) | 5,077 | |||
Stock Options Exercised | 65 | $ 65 | ||||
Stock Options Exercised (in shares) | 24,750 | 24,750 | ||||
Stock Repurchases | $ (5) | (9,157) | $ (9,162) | |||
Stock Repurchases (in shares) | (563,455) | |||||
Forfeiture of Restricted Stock Awards | (3) | (3) | ||||
Forfeiture of Restricted Stock Awards (in shares) | (1,000) | |||||
Vested Restricted Stock Units (in shares) | 2,100 | |||||
Restricted Shares Withheld for Taxes | (20) | (20) | ||||
Restricted Shares Withheld for Taxes (in shares) | (1,245) | |||||
Preferred Stock Dividend | (2,027) | (2,027) | ||||
Balance at the end at Jun. 30, 2022 | 66,514 | $ 277 | 96,689 | 222,464 | (11,061) | 374,883 |
Balance at the end (in shares) at Jun. 30, 2022 | 27,677,372 | |||||
Balance at the beginning at Mar. 31, 2022 | 66,514 | $ 282 | 103,756 | 210,596 | (1,707) | 379,441 |
Balance at the beginning (in shares) at Mar. 31, 2022 | 28,150,389 | |||||
Stock-based Compensation | 850 | 850 | ||||
Stock-based Compensation (in shares) | 5,000 | |||||
Comprehensive Income (Loss) | 12,882 | (9,354) | 3,528 | |||
Stock Options Exercised | 44 | 44 | ||||
Stock Options Exercised (in shares) | 14,750 | |||||
Stock Repurchases | $ (5) | (7,954) | (7,959) | |||
Stock Repurchases (in shares) | (492,417) | |||||
Forfeiture of Restricted Stock Awards | (2) | (2) | ||||
Forfeiture of Restricted Stock Awards (in shares) | (600) | |||||
Vested Restricted Stock Units (in shares) | 600 | |||||
Restricted Shares Withheld for Taxes | (5) | (5) | ||||
Restricted Shares Withheld for Taxes (in shares) | (350) | |||||
Preferred Stock Dividend | (1,014) | (1,014) | ||||
Balance at the end at Jun. 30, 2022 | $ 66,514 | $ 277 | $ 96,689 | $ 222,464 | $ (11,061) | $ 374,883 |
Balance at the end (in shares) at Jun. 30, 2022 | 27,677,372 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | $ 25,144 | $ 21,664 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||
Net Amortization on Securities Available for Sale | 1,333 | 1,755 | |||
Net Gain on Sales of Securities Available for Sale | $ (52) | $ (702) | (52) | (702) | |
Provision for Loan Losses | 3,025 | 1,600 | 4,700 | 2,700 | |
Depreciation of Premises and Equipment | 1,260 | 1,146 | |||
Amortization of Other Intangible Assets | 96 | 96 | |||
Amortization of Subordinated Debt Issuance Costs | 220 | 174 | |||
Stock-based Compensation | 1,681 | 1,157 | |||
Changes in Operating Assets and Liabilities: | |||||
Accrued Interest Receivable and Other Assets | (4,944) | (4,870) | |||
Accrued Interest Payable and Other Liabilities | 41,788 | 4,810 | |||
Net Cash Provided by Operating Activities | 71,226 | 27,930 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Decrease in Bank-Owned Certificates of Deposit | 738 | 492 | |||
Proceeds from Sales of Securities Available for Sale | 25,066 | 6,107 | 25,066 | 7,757 | |
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale | 18,986 | 18,023 | |||
Purchases of Securities Available for Sale | (118,282) | (39,341) | |||
Net Increase in Loans | (406,421) | (265,409) | |||
Net Increase in FHLB Stock | (4,679) | (805) | |||
Purchases of Premises and Equipment | (1,159) | (336) | |||
Purchase of Bank-Owned Life Insurance | (25,000) | ||||
Net Cash Used in Investing Activities | (485,751) | (304,619) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net Increase in Deposits | 255,716 | 219,270 | |||
Net Increase in Federal Funds Purchased | 86,000 | ||||
Principal Payments on Notes Payable | (11,000) | ||||
Proceeds from FHLB Advances | 14,000 | ||||
Preferred Stock Dividends Paid | (2,027) | ||||
Stock Options Exercised | 65 | 154 | |||
Stock Repurchases | (9,162) | (208) | |||
Forfeiture of Restricted Stock Awards | (3) | ||||
Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards | (20) | (5) | |||
Net Cash Provided by Financing Activities | 344,569 | 208,211 | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (69,956) | (68,478) | |||
Cash and Cash Equivalents Beginning | 143,473 | 160,675 | $ 160,675 | ||
Cash and Cash Equivalents Ending | $ 73,517 | $ 92,197 | 73,517 | 92,197 | $ 143,473 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||||
Cash Paid for Interest | 9,562 | 8,691 | |||
Cash Paid for Income Taxes | 7,955 | $ 10,438 | |||
Net Investment Securities Purchased but Not Settled | $ 8,738 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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, Inc. was incorporated in December 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, 2022 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 8, 2022. 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 rising inflation and ongoing 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 Issued Accounting Guidance In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU updates guidance in Topic 326 to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current period gross write offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivables by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 for companies that have adopted CECL, including interim periods within those fiscal years, with early adoption permitted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments Credit Losses Financial Instruments Credit Losses – Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments – Credit Losses varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. In November 2019, the FASB issued ASU 2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (815), and Leases (Topic 842) – Effective Dates. he Company is required to implement by January 1, 2023 and is currently evaluating the impact on its consolidated financial statements. Subsequent Events Subsequent events have been evaluated through August 4, 2022, which is the date the consolidated financial statements were available to be issued. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income available to common shareholders 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 common shares adjusted for the dilutive effect of stock compensation. For the three and six months ended June 30, 2022, stock options, restricted stock awards and restricted stock units of approximately 332,200 and 300,500 shares, respectively, were excluded from the calculation because they were deemed to be anti-dilutive. 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 shares, 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, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands, except per share data) 2022 2021 2022 2021 Net Income Available to Common Shareholders $ 11,868 $ 10,993 $ 23,117 $ 21,664 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 27,839,260 28,040,762 27,980,749 28,029,129 Dilutive Effect of Stock Compensation 964,582 1,087,419 1,011,031 1,019,295 Weighted Average Common Stock Outstanding (Dilutive) 28,803,842 29,128,181 28,991,780 29,048,424 Basic Earnings per Common Share $ 0.43 $ 0.39 $ 0.83 $ 0.77 Diluted Earnings per Common Share 0.41 0.38 0.80 0.75 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and December 31, 2021: June 30, 2022 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 2,620 $ — $ (14) $ 2,606 Municipal Bonds 184,401 618 (17,498) 167,521 Mortgage-Backed Securities 155,580 5 (10,616) 144,969 Corporate Securities 104,647 402 (1,952) 103,097 SBA Securities 24,690 113 (161) 24,642 Asset-Backed Securities 40,000 219 (471) 39,748 Total Securities Available for Sale $ 511,938 $ 1,357 $ (30,712) $ 482,583 December 31, 2021 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 756 $ — $ (2) $ 754 Municipal Bonds 151,665 7,492 (788) 158,369 Mortgage-Backed Securities 125,563 1,085 (2,111) 124,537 Corporate Securities 81,925 2,740 (185) 84,480 SBA Securities 30,474 102 (206) 30,370 Asset-Backed Securities 39,867 1,044 (59) 40,852 Total Securities Available for Sale $ 430,250 $ 12,463 $ (3,351) $ 439,362 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, 2022 and December 31, 2021: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2022 U.S. Treasury Securities $ 2,606 $ (14) $ — $ — $ 2,606 $ (14) Municipal Bonds 118,200 (15,176) 10,705 (2,322) 128,905 (17,498) Mortgage-Backed Securities 95,492 (5,124) 39,148 (5,492) 134,640 (10,616) Corporate Securities 60,879 (1,883) 1,930 (69) 62,809 (1,952) SBA Securities 3,549 (19) 10,942 (142) 14,491 (161) Asset-Backed Securities 21,264 (395) 1,304 (76) 22,568 (471) Total Securities Available for Sale $ 301,990 $ (22,611) $ 64,029 $ (8,101) $ 366,019 $ (30,712) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021 U.S. Treasury Securities $ 754 $ (2) $ — $ — $ 754 $ (2) Municipal Bonds 44,332 (708) 3,757 (80) 48,089 (788) Mortgage-Backed Securities 36,921 (630) 35,949 (1,481) 72,870 (2,111) Corporate Securities 9,398 (133) 1,948 (52) 11,346 (185) SBA Securities 3,896 (7) 16,297 (199) 20,193 (206) Asset-Backed Securities 6,742 (59) — — 6,742 (59) Total Securities Available for Sale $ 102,043 $ (1,539) $ 57,951 $ (1,812) $ 159,994 $ (3,351) At June 30, 2022, 448 debt securities had unrealized losses with aggregate depreciation of approximately 7.7% from the Company’s amortized cost basis. At December 31, 2021, 199 debt securities had unrealized losses with aggregate depreciation of approximately 2.1% from the Company’s amortized cost basis. These unrealized losses related principally to changes in interest rates and were not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of June 30, 2022. 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, 2022. Call date is used when a call of the debt security is expected, as 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. (dollars in thousands) Amortized Cost Fair Value June 30, 2022 Due in One Year or Less $ 4,696 $ 4,707 Due After One Year Through Five Years 72,588 72,446 Due After Five Years Through 10 Years 106,866 102,636 Due After 10 Years 107,518 93,435 Subtotal 291,668 273,224 Mortgage-Backed Securities 155,580 144,969 SBA Securities 24,690 24,642 Asset-Backed Securities 40,000 39,748 Totals $ 511,938 $ 482,583 As of June 30, 2022 and December 31, 2021, 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, 2022 and June 30, 2021: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Proceeds From Sales of Securities $ 25,066 $ 6,107 $ 25,066 $ 7,757 Gross Gains on Sales 234 702 234 702 Gross Losses on Sales (182) — (182) — |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
Loans | Note 4: Loans The following table presents the components of the loan portfolio at June 30, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Commercial $ 403,569 $ 360,169 Paycheck Protection Program 4,860 26,162 Construction and Land Development 359,191 281,474 Real Estate Mortgage: 1-4 Family Mortgage 334,815 305,317 Multifamily 1,087,865 910,243 CRE Owner Occupied 142,214 111,096 CRE Nonowner Occupied 886,432 818,569 Total Real Estate Mortgage Loans 2,451,326 2,145,225 Consumer and Other 6,939 6,442 Total Loans, Gross 3,225,885 2,819,472 Allowance for Loan Losses (44,711) (40,020) Net Deferred Loan Fees (9,536) (9,535) Total Loans, Net $ 3,171,638 $ 2,769,917 The following table presents the activity in the allowance for loan losses, by segment, for the three months ended June 30, 2022 and 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Three Months Ended June 30, 2022 Allowance for Loan Losses: Beginning Balance $ 5,638 $ 6 $ 4,319 $ 3,885 $ 14,083 $ 1,595 $ 11,663 $ 177 $ 326 $ 41,692 Provision for Loan Losses 648 (4) 453 319 894 325 572 (26) (156) 3,025 Loans Charged-off (13) — — — — — — (1) — (14) Recoveries of Loans 2 — — 2 — — — 4 — 8 Total Ending Allowance Balance $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Three Months Ended June 30, 2021 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 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2022 and 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Six Months Ended June 30, 2022 Allowance for Loan Losses: Beginning Balance $ 6,256 $ 13 $ 3,757 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Provision for Loan Losses 28 (11) 1,015 444 2,367 425 900 12 (480) 4,700 Loans Charged-off (13) — — — — — — (16) — (29) Recoveries of Loans 4 — — 5 — — — 11 — 20 Total Ending Allowance Balance $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Six Months Ended June 30, 2021 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 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, 2022 and December 31, 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Loan Losses at June 30, 2022 Individually Evaluated for Impairment $ 12 $ — $ — $ — $ — $ — $ 223 $ — $ — $ 235 Collectively Evaluated for Impairment 6,263 2 4,772 4,206 14,977 1,920 12,012 154 170 44,476 Totals $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Allowance for Loan Losses at December 31, 2021 Individually Evaluated for Impairment $ 607 $ — $ — $ — $ — $ — $ — $ — $ — $ 607 Collectively Evaluated for Impairment 5,649 13 3,757 3,757 12,610 1,495 11,335 147 650 39,413 Totals $ 6,256 $ 13 $ 3,757 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consume r (dollars in thousands) Commercial Program Development Mortgage Multifamily Occupied Occupied and Othe r Total Loans at June 30, 2022 Individually Evaluated for Impairment $ 9,798 $ — $ 116 $ 284 $ — $ 1,696 $ 15,097 $ — $ 26,991 Collectively Evaluated for Impairment 393,771 4,860 359,075 334,531 1,087,865 140,518 871,335 6,939 3,198,894 Totals $ 403,569 $ 4,860 $ 359,191 $ 334,815 $ 1,087,865 $ 142,214 $ 886,432 $ 6,939 $ 3,225,885 Loans at December 31, 2021 Individually Evaluated for Impairment $ 14,512 $ — $ 130 $ 1,390 $ — $ 2,421 $ 4,188 $ — $ 22,641 Collectively Evaluated for Impairment 345,657 26,162 281,344 303,927 910,243 108,675 814,381 6,442 2,796,831 Totals $ 360,169 $ 26,162 $ 281,474 $ 305,317 $ 910,243 $ 111,096 $ 818,569 $ 6,442 $ 2,819,472 The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Recorded Principal Related Recorded Principal Related (dollars in thousands) Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 9,713 $ 9,713 $ — $ 4,545 $ 4,545 $ — Construction and Land Development 116 723 — 130 737 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — — 933 933 — 1st REM - Rentals 284 284 — 457 457 — CRE Owner Occupied 1,696 1,761 — 2,421 2,466 — CRE Nonowner Occupied 2,962 2,962 — 4,188 4,188 — Totals 14,771 15,443 — 12,674 13,326 — Loans With An Allowance for Loan Losses: Commercial 85 85 12 9,967 9,967 607 Real Estate Mortgage: CRE Nonowner Occupied 12,135 12,135 223 — — — Totals 12,220 12,220 235 9,967 9,967 607 Grand Totals $ 26,991 $ 27,663 $ 235 $ 22,641 $ 23,293 $ 607 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Average Interest Average Interest Average Interest Average Interest (dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 11,156 $ 154 $ 53 $ — $ 12,074 $ 331 $ 56 $ 2 Construction and Land Development 120 — 144 — 123 — 147 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — 883 11 — — 884 22 1st REM - Rentals 286 4 471 6 288 7 473 12 CRE Owner Occupied 1,765 16 867 3 1,768 33 869 6 CRE Nonowner Occupied 2,970 38 3,624 52 2,987 75 3,635 91 Totals 16,297 212 6,042 72 17,240 446 6,064 133 Loans With An Allowance for Loan Losses: Commercial 85 — 1,162 14 86 1 1,161 26 Real Estate Mortgage: CRE Nonowner Occupied 12,136 123 — — 12,136 244 — — Consumer and Other — — 12 — — — 13 — Totals 12,221 123 1,174 14 12,222 245 1,174 26 Grand Totals $ 28,518 $ 335 $ 7,216 $ 86 $ 29,462 $ 691 $ 7,238 $ 159 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, 2022 and December 31, 2021, based on the most recent analysis performed by management: June 30, 2022 (dollars in thousands) Pass Watch Substandard Total Commercial $ 387,317 $ 6,454 $ 9,798 $ 403,569 Paycheck Protection Program 4,860 — — 4,860 Construction and Land Development 359,075 — 116 359,191 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 33,263 — — 33,263 1st REM - 1-4 Family 51,356 682 — 52,038 LOCs and 2nd REM - Rentals 25,533 12 — 25,545 1st REM - Rentals 223,685 — 284 223,969 Multifamily 1,087,865 — — 1,087,865 CRE Owner Occupied 140,518 — 1,696 142,214 CRE Nonowner Occupied 843,778 27,557 15,097 886,432 Consumer and Other 6,939 — — 6,939 Totals $ 3,164,189 $ 34,705 $ 26,991 $ 3,225,885 December 31, 2021 (dollars in thousands) Pass Watch Substandard Total Commercial $ 336,939 $ 8,718 $ 14,512 $ 360,169 Paycheck Protection Program 26,162 — — 26,162 Construction and Land Development 281,344 — 130 281,474 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,327 — 933 31,260 1st REM - 1-4 Family 48,024 689 — 48,713 LOCs and 2nd REM - Rentals 21,625 16 — 21,641 1st REM - Rentals 203,246 — 457 203,703 Multifamily 910,243 — — 910,243 CRE Owner Occupied 108,675 — 2,421 111,096 CRE Nonowner Occupied 774,474 39,907 4,188 818,569 Consumer and Other 6,442 — — 6,442 Totals $ 2,747,501 $ 49,330 $ 22,641 $ 2,819,472 The following tables present the aging of the recorded investment in past due loans by loan segment as of June 30, 2022 and December 31, 2021: Accruing Interest 30-89 Days 90 Days or (dollars in thousands) Current Past Due More Past Due Nonaccrual Total June 30, 2022 Commercial $ 403,569 $ — $ — $ — $ 403,569 Paycheck Protection Program 4,856 4 — — 4,860 Construction and Land Development 359,075 — — 116 359,191 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 33,012 251 — — 33,263 1st REM - 1-4 Family 52,038 — — — 52,038 LOCs and 2nd REM - Rentals 25,545 — — — 25,545 1st REM - Rentals 223,969 — — — 223,969 Multifamily 1,087,865 — — — 1,087,865 CRE Owner Occupied 141,642 — — 572 142,214 CRE Nonowner Occupied 886,432 — — — 886,432 Consumer and Other 6,939 — — — 6,939 Totals $ 3,224,942 $ 255 $ — $ 688 $ 3,225,885 Accruing Interest 30-89 Days 90 Days or (dollars in thousands) Current Past Due More Past Due Nonaccrual Total December 31, 2021 Commercial $ 360,169 $ — $ — $ — $ 360,169 Paycheck Protection Program 26,162 — — — 26,162 Construction and Land Development 281,344 — — 130 281,474 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,211 49 — — 31,260 1st REM - 1-4 Family 48,713 — — — 48,713 LOCs and 2nd REM - Rentals 21,641 — — — 21,641 1st REM - Rentals 203,703 — — — 203,703 Multifamily 910,243 — — — 910,243 CRE Owner Occupied 110,504 — — 592 111,096 CRE Nonowner Occupied 818,569 — — — 818,569 Consumer and Other 6,442 — — — 6,442 Totals $ 2,818,701 $ 49 $ — $ 722 $ 2,819,472 At June 30, 2022, there were two loans classified as troubled debt restructurings with total aggregate outstanding balances of $201,000. In comparison, at December 31, 2021, there were four loans classified as troubled debt restructurings with total aggregate outstanding balances of $1.4 million. There were no new loans classified as troubled debt restructurings during the six month period ended June 30, 2022 and no loans classified as troubled debt restructurings during the previous twelve months subsequently defaulted during the six months ended June 30, 2022. 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, made before January 1, 2022, 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, 2022: Interest-Only Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 315 2 $ 4,694 1 $ 5,009 3 Real Estate Mortgage: CRE Nonowner Occupied 24,776 4 — — 24,776 4 Totals $ 25,091 6 $ 4,694 1 $ 29,785 7 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2022 | |
Deposits. | |
Deposits | Note 5: Deposits The following table presents the composition of deposits at June 30, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Transaction Deposits $ 1,484,149 $ 1,419,873 Savings and Money Market Deposits 952,138 863,567 Time Deposits 272,424 293,474 Brokered Deposits 493,242 369,323 Totals $ 3,201,953 $ 2,946,237 Brokered deposits contain brokered transaction and money market accounts of $221.4 million and $131.2 million as of June 30, 2022 and December 31, 2021, respectively. The following table presents the scheduled maturities of brokered and customer time deposits at June 30, 2022: (dollars in thousands) 2022 Less than 1 Year $ 172,726 1 to 2 Years 94,935 2 to 3 Years 124,252 3 to 4 Years 105,491 4 to 5 Years 22,442 Greater than 5 Years 24,423 Totals $ 544,269 The aggregate amount of time deposits greater than $250,000 was approximately $53.4 million and $59.6 million at June 30, 2022 and December 31, 2021, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 6: 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 counterparty 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, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 65,916 $ 5,099 $ 49,101 $ 641 Liabilities 65,916 (5,099) 49,101 (641) Total $ 131,832 $ — $ 98,202 $ — 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 deposit and wholesale borrowing portfolios. During the next 12 months, the Company estimates that $1.1 million 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, 2022 and December 31, 2021: (dollars in thousands) June 30, 2022 December 31, 2021 Notional Amount $ 125,000 $ 125,000 Weighted Average Pay Rate 1.23 % 1.27 % Weighted Average Receive Rate 1.01 % 0.14 % Weighted Average Maturity (Years) 3.27 3.76 Net Unrealized Gain (Loss) $ 7,487 $ 791 The Company purchases interest rate caps, designated as cash flow hedges, of certain deposit liabilities. The interest rate caps require receipt of variable amounts from the counterparties when interest rates rise above the strike price in the contracts. For the six months ended June 30, 2022 and 2021, the company recognized amortization expense on the interest rate caps of $370,000 and $95,000, respectively, which was recorded as a component of interest expense on brokered deposits. The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, 2022 December 31, 2021 Notional Amount $ 125,000 $ 110,000 Unamortized Premium Paid 6,269 5,859 Weighted Average Strike Rate 0.96 % 0.90 % Weighted Average Maturity (Years) 8.08 8.72 The following table presents a summary of the Company’s interest rate contracts as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 125,000 $ 7,487 $ 90,000 $ 1,717 Liabilities — — 35,000 (926) Interest rate cap agreements: Assets 125,000 15,144 110,000 7,356 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, 2022 and December 31, 2021, the Company pledged cash collateral for the Company’s derivative contracts of $0 and $370,000, respectively. In addition, as of June 30, 2022 and December 31, 2021, the Company's counterparties pledged cash collateral to the Company of $30.0 million and $8.6 million, respectively. The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Derivatives in Location of Loss Loss Loss Cash Flow Hedging Reclassified Reclassified from Reclassified from Relationships from AOCI into Income AOCI into Earnings AOCI into Earnings Interest rate swaps Interest expense $ (65) $ (275) $ (312) $ (537) Interest rate caps Interest expense (194) (70) (370) (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, 2022 and 2021, 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. |
Subordinated Debentures
Subordinated Debentures | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated Debentures | |
Subordinated Debentures | Note 7: Subordinated Debentures The following table presents a summary of the Company’s subordinated debentures as of June 30, 2022: Total Debt Total Debt Date First Maturity Outstanding Outstanding Interest Name Established Redemption Date Date June 30, 2022 December 31, 2021 Rate Coupon Structure (dollars in thousands) 2027 Notes July 12, 2017 July 15, 2022 July 15, 2027 $ 13,750 $ 13,750 5.88 % Fixed-to-Floating (1) 2030 Notes June 19, 2020 July 1, 2025 July 1, 2030 50,000 50,000 5.25 % Fixed-to-Floating (2) 2031 Notes July 8, 2021 July 15, 2026 July 15, 2031 30,000 30,000 3.25 % Fixed-to-Floating (3) Subordinated Debentures 93,750 93,750 Debt Issuance Costs (1,291) (1,511) Subordinated Debentures, Net of Issuance Costs $ 92,459 $ 92,239 (1) Migrates to three month LIBOR + 3.88% beginning July 15, 2022 until either the early redemption date or the maturity date. (2) Migrates to three month term SOFR + 5.13% beginning July 1, 2025 until either the early redemption date or the maturity date. (3) Migrates to three month term SOFR + 2.52% beginning July 15, 2026 until either the early redemption date or the maturity date. |
Commitments, Contingencies and
Commitments, Contingencies and Credit Risk | 6 Months Ended |
Jun. 30, 2022 | |
Commitments, Contingencies and Credit Risk | |
Commitments, Contingencies and Credit Risk | Note 8: 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, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Unfunded Commitments Under Lines of Credit $ 892,523 $ 799,148 Letters of Credit 116,017 119,647 Totals $ 1,008,540 $ 918,795 The Company had outstanding letters of credit with the FHLB in total amounts of $53.7 million and $36.5 million at June 30, 2022 and December 31, 2021, 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, 2022 | |
Stock Options and Restricted Stock | |
Stock Options and Restricted Stock | Note 9: Stock Options and Restricted Stock The Company established the Bridgewater Bancshares, Inc. 2012 Combined Incentive and Non-Statutory Stock Option Plan (the “2012 Plan”) under which the Company may grant options to its directors, officers, and employees for up to 750,000 shares of common stock. Both incentive stock options and nonqualified stock options were 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. The 2012 Plan expired in March 2022 and awards are no longer able to be granted 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, 2022 and December 31, 2021, there were 350,991 and 352,575 shares, respectively, 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, 2022, are as follows: June 30, 2022 Dividend Yield — % Expected Life 7 Years Expected Volatility 24.71 % Risk-Free Interest Rate 1.70 % The following table presents a summary of the status of the Company’s stock option grants for the six months ended June 30, 2022: June 30, 2022 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,768,745 $ 7.67 Granted 290,000 17.50 Exercised (24,750) 2.65 Forfeitures (12,000) 14.77 Outstanding at Period End 2,021,995 $ 9.10 Options Exercisable at Period End 1,332,720 $ 7.00 For the three months ended June 30, 2022 and 2021, the Company recognized compensation expense for stock options of $312,000 and $229,000, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized compensation expense for stock options of $600,000 and $452,000, respectively. The following table presents information pertaining to options outstanding at June 30, 2022: 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 - 3.99 384,000 $ 3.04 1.6 384,000 $ 3.04 7.00 - 7.99 926,717 7.47 5.3 733,317 7.47 8.00 - 8.99 20,000 8.76 7.8 7,500 8.76 10.00 - 10.99 10,000 10.08 7.9 5,000 10.08 11.00 - 11.99 85,000 11.27 6.9 41,000 11.30 12.00 - 12.99 270,778 12.89 7.1 139,278 12.90 13.00 - 13.99 25,000 13.22 5.9 20,000 13.22 17.00 - 17.99 300,500 17.50 9.6 2,625 17.49 Totals 2,021,995 $ 9.10 5.6 1,332,720 $ 7.00 As of June 30, 2022, there was $2.1 million 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 2.8 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, 2022: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2021 435,900 $ 3.43 Granted 290,000 5.28 Vested (24,625) 4.39 Forfeited (12,000) 5.12 Nonvested Options at June 30, 2022 689,275 $ 4.15 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, 2022: Weighted Number of Average Grant Shares Date Fair Value Nonvested Awards at December 31, 2021 75,113 $ 12.59 Granted — — Vested (2,786) 10.32 Forfeited (1,000) 12.92 Nonvested Awards at June 30, 2022 71,327 $ 12.68 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, 2022 and 2021, the Company recognized compensation expense for restricted stock awards of $111,000 and $113,000, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized compensation expense for restricted stock awards of $222,000 and $225,000, respectively. As of June 30, 2022, there was $659,000 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 1.5 years. In addition, during the six months June 30, 2022, the Company issued 9,656 shares of unrestricted common stock to non-employee directors, or their designee, 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 non-employee directors, or their designee, of $158,000 was included in stock based compensation expense in the accompanying consolidated statements of shareholders’ equity. Restricted Stock Units In 2020, the Company began granting 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, 2022: Weighted Number of Average Grant Units Date Fair Value Nonvested Units at December 31, 2021 344,908 $ 15.02 Granted 2,500 17.50 Vested (2,100) 14.94 Forfeited (9,572) 15.12 Nonvested Units at June 30, 2022 335,736 $ 15.03 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 months ended June 30, 2022 and 2021, the Company recognized compensation expense for restricted stock units of $345,000 and $162,000, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized compensation expense for restricted stock units of $699,000 and $320,000, respectively. As of June 30, 2022, there was $4.2 million of total unrecognized compensation cost related to nonvested restricted stock units granted under the 2019 EIP that is expected to be recognized over a weighted-average period of 3.1 years. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2022 | |
Regulatory Capital | |
Regulatory Capital | Note 10: 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, on a consolidated basis, and the Bank as of June 30, 2022 and December 31, 2021: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2022 Company (Consolidated): Total Risk-based Capital $ 520,465 13.98 % $ 297,826 8.00 % $ 390,897 10.50 % N/A N/A Tier 1 Risk-based Capital 382,935 10.29 223,370 6.00 316,441 8.50 N/A N/A Common Equity Tier 1 Capital 316,421 8.50 167,527 4.50 260,598 7.00 N/A N/A Tier 1 Leverage Ratio 382,935 10.33 148,348 4.00 148,348 4.00 N/A N/A Bank: Total Risk-based Capital $ 474,151 12.74 % $ 297,672 8.00 % $ 390,695 10.50 % $ 372,090 10.00 % Tier 1 Risk-based Capital 429,080 11.53 223,254 6.00 316,277 8.50 297,672 8.00 Common Equity Tier 1 Capital 429,080 11.53 167,441 4.50 260,463 7.00 241,859 6.50 Tier 1 Leverage Ratio 429,080 11.43 150,118 4.00 150,118 4.00 187,647 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 (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Company (Consolidated): Total Risk-based Capital $ 499,554 15.55 % $ 256,966 8.00 % $ 337,268 10.50 % N/A N/A Tier 1 Risk-based Capital 367,161 11.43 192,725 6.00 273,027 8.50 N/A N/A Common Equity Tier 1 Capital 300,647 9.36 144,543 4.50 224,845 7.00 N/A N/A Tier 1 Leverage Ratio 367,161 10.82 135,723 4.00 135,723 4.00 N/A N/A Bank: Total Risk-based Capital $ 415,848 12.94 % $ 257,005 8.00 % $ 337,319 10.50 % $ 321,256 10.00 % Tier 1 Risk-based Capital 375,688 11.69 192,754 6.00 273,068 8.50 257,005 8.00 Common Equity Tier 1 Capital 375,688 11.69 144,565 4.50 224,879 7.00 208,816 6.50 Tier 1 Leverage Ratio 375,688 11.09 135,508 4.00 135,508 4.00 169,386 5.00 The Company and the Bank must maintain a capital conservation buffer, as defined by regulatory 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, 2022 | |
Fair Value Measurement | |
Fair Value Measurement | Note 11: 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, 2022 and December 31, 2021: June 30, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 2,606 $ — $ — $ 2,606 Municipal Bonds — 167,521 — 167,521 Mortgage-Backed Securities — 144,969 — 144,969 Corporate Securities — 103,097 — 103,097 SBA Securities — 24,642 — 24,642 Asset-Backed Securities — 39,748 — 39,748 Interest Rate Caps — 15,144 — 15,144 Interest Rate Swaps — 12,586 — 12,586 Total Fair Value of Financial Assets $ 2,606 $ 507,707 $ — $ 510,313 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 5,099 $ — $ 5,099 Total Fair Value of Financial Liabilities $ — $ 5,099 $ — $ 5,099 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 754 $ — $ — $ 754 Municipal Bonds — 158,369 — 158,369 Mortgage-Backed Securities — 124,537 — 124,537 Corporate Securities — 84,480 — 84,480 SBA Securities — 30,370 — 30,370 Asset-Backed Securities — 40,852 — 40,852 Interest Rate Caps — 7,356 — 7,356 Interest Rate Swaps — 2,358 — 2,358 Total Fair Value of Financial Assets $ 754 $ 448,322 $ — $ 449,076 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 1,567 $ — $ 1,567 Total Fair Value of Financial Liabilities $ — $ 1,567 $ — $ 1,567 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, 2022 and December 31, 2021: June 30, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 11,985 $ — $ 235 Totals $ — $ 11,985 $ — $ 235 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 9,360 $ — $ 625 Totals $ — $ 9,360 $ — $ 625 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, 2022 and December 31, 2021: June 30, 2022 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 73,517 $ 73,517 $ — $ — $ 73,517 Bank-Owned Certificates of Deposit 1,138 — 1,127 — 1,127 Securities Available for Sale 482,583 2,606 479,977 — 482,583 FHLB Stock, at Cost 9,921 — 9,921 — 9,921 Loans, Net 3,171,638 — 3,113,609 — 3,113,609 Accrued Interest Receivable 10,010 — 10,010 — 10,010 Interest Rate Caps 15,144 — 15,144 — 15,144 Interest Rate Swaps 12,586 — 12,586 — 12,586 Financial Liabilities: Deposits $ 3,201,953 $ — $ 3,171,333 $ — $ 3,171,333 Federal Funds Purchased 86,000 — 86,000 — 86,000 FHLB Advances 56,500 — 55,687 — 55,687 Subordinated Debentures 92,459 — 90,857 — 90,857 Accrued Interest Payable 1,393 — 1,393 — 1,393 Interest Rate Swaps 5,099 — 5,099 — 5,099 December 31, 2021 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 143,473 $ 143,473 $ — $ — $ 143,473 Bank-Owned Certificates of Deposit 1,876 — 1,884 — 1,884 Securities Available for Sale 439,362 754 438,608 — 439,362 FHLB Stock, at Cost 5,242 — 5,242 — 5,242 Loans, Net 2,769,917 — 2,726,417 — 2,726,417 Accrued Interest Receivable 9,186 — 9,186 — 9,186 Interest Rate Caps 7,356 — 7,356 — 7,356 Interest Rate Swaps 2,358 — 2,358 — 2,358 Financial Liabilities: Deposits $ 2,946,237 $ — $ 2,931,215 $ — $ 2,931,215 FHLB Advances 42,500 — 42,515 — 42,515 Subordinated Debentures 92,239 — 97,700 — 97,700 Accrued Interest Payable 1,409 — 1,409 — 1,409 Interest Rate Swaps 1,567 — 1,567 — 1,567 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 FHLB advances Subordinated debentures Accrued interest payable Off-balance sheet instruments Limitations |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Subsequent Events | Note 12: Subsequent Events On July 26, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $36.72 per share ($0.3672 per depositary share) on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”), payable on September 1, 2022, to shareholders of record on the Series A Preferred Stock at the close of business on August 15, 2022. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 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 8, 2022. |
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 rising inflation and ongoing 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 Issued Accounting Guidance In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU updates guidance in Topic 326 to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current period gross write offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivables by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 for companies that have adopted CECL, including interim periods within those fiscal years, with early adoption permitted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments Credit Losses Financial Instruments Credit Losses – Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments – Credit Losses varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. In November 2019, the FASB issued ASU 2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (815), and Leases (Topic 842) – Effective Dates. he Company is required to implement by January 1, 2023 and is currently evaluating the impact on its consolidated financial statements. |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through August 4, 2022, 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, 2022 | |
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, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands, except per share data) 2022 2021 2022 2021 Net Income Available to Common Shareholders $ 11,868 $ 10,993 $ 23,117 $ 21,664 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 27,839,260 28,040,762 27,980,749 28,029,129 Dilutive Effect of Stock Compensation 964,582 1,087,419 1,011,031 1,019,295 Weighted Average Common Stock Outstanding (Dilutive) 28,803,842 29,128,181 28,991,780 29,048,424 Basic Earnings per Common Share $ 0.43 $ 0.39 $ 0.83 $ 0.77 Diluted Earnings per Common Share 0.41 0.38 0.80 0.75 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and December 31, 2021: June 30, 2022 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 2,620 $ — $ (14) $ 2,606 Municipal Bonds 184,401 618 (17,498) 167,521 Mortgage-Backed Securities 155,580 5 (10,616) 144,969 Corporate Securities 104,647 402 (1,952) 103,097 SBA Securities 24,690 113 (161) 24,642 Asset-Backed Securities 40,000 219 (471) 39,748 Total Securities Available for Sale $ 511,938 $ 1,357 $ (30,712) $ 482,583 December 31, 2021 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 756 $ — $ (2) $ 754 Municipal Bonds 151,665 7,492 (788) 158,369 Mortgage-Backed Securities 125,563 1,085 (2,111) 124,537 Corporate Securities 81,925 2,740 (185) 84,480 SBA Securities 30,474 102 (206) 30,370 Asset-Backed Securities 39,867 1,044 (59) 40,852 Total Securities Available for Sale $ 430,250 $ 12,463 $ (3,351) $ 439,362 |
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, 2022 and December 31, 2021: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2022 U.S. Treasury Securities $ 2,606 $ (14) $ — $ — $ 2,606 $ (14) Municipal Bonds 118,200 (15,176) 10,705 (2,322) 128,905 (17,498) Mortgage-Backed Securities 95,492 (5,124) 39,148 (5,492) 134,640 (10,616) Corporate Securities 60,879 (1,883) 1,930 (69) 62,809 (1,952) SBA Securities 3,549 (19) 10,942 (142) 14,491 (161) Asset-Backed Securities 21,264 (395) 1,304 (76) 22,568 (471) Total Securities Available for Sale $ 301,990 $ (22,611) $ 64,029 $ (8,101) $ 366,019 $ (30,712) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021 U.S. Treasury Securities $ 754 $ (2) $ — $ — $ 754 $ (2) Municipal Bonds 44,332 (708) 3,757 (80) 48,089 (788) Mortgage-Backed Securities 36,921 (630) 35,949 (1,481) 72,870 (2,111) Corporate Securities 9,398 (133) 1,948 (52) 11,346 (185) SBA Securities 3,896 (7) 16,297 (199) 20,193 (206) Asset-Backed Securities 6,742 (59) — — 6,742 (59) Total Securities Available for Sale $ 102,043 $ (1,539) $ 57,951 $ (1,812) $ 159,994 $ (3,351) |
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, 2022. Call date is used when a call of the debt security is expected, as 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. (dollars in thousands) Amortized Cost Fair Value June 30, 2022 Due in One Year or Less $ 4,696 $ 4,707 Due After One Year Through Five Years 72,588 72,446 Due After Five Years Through 10 Years 106,866 102,636 Due After 10 Years 107,518 93,435 Subtotal 291,668 273,224 Mortgage-Backed Securities 155,580 144,969 SBA Securities 24,690 24,642 Asset-Backed Securities 40,000 39,748 Totals $ 511,938 $ 482,583 |
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, 2022 and June 30, 2021: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Proceeds From Sales of Securities $ 25,066 $ 6,107 $ 25,066 $ 7,757 Gross Gains on Sales 234 702 234 702 Gross Losses on Sales (182) — (182) — |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
Summary of components of loans | The following table presents the components of the loan portfolio at June 30, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Commercial $ 403,569 $ 360,169 Paycheck Protection Program 4,860 26,162 Construction and Land Development 359,191 281,474 Real Estate Mortgage: 1-4 Family Mortgage 334,815 305,317 Multifamily 1,087,865 910,243 CRE Owner Occupied 142,214 111,096 CRE Nonowner Occupied 886,432 818,569 Total Real Estate Mortgage Loans 2,451,326 2,145,225 Consumer and Other 6,939 6,442 Total Loans, Gross 3,225,885 2,819,472 Allowance for Loan Losses (44,711) (40,020) Net Deferred Loan Fees (9,536) (9,535) Total Loans, Net $ 3,171,638 $ 2,769,917 |
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, 2022 and 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Three Months Ended June 30, 2022 Allowance for Loan Losses: Beginning Balance $ 5,638 $ 6 $ 4,319 $ 3,885 $ 14,083 $ 1,595 $ 11,663 $ 177 $ 326 $ 41,692 Provision for Loan Losses 648 (4) 453 319 894 325 572 (26) (156) 3,025 Loans Charged-off (13) — — — — — — (1) — (14) Recoveries of Loans 2 — — 2 — — — 4 — 8 Total Ending Allowance Balance $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Three Months Ended June 30, 2021 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 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2022 and 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Six Months Ended June 30, 2022 Allowance for Loan Losses: Beginning Balance $ 6,256 $ 13 $ 3,757 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Provision for Loan Losses 28 (11) 1,015 444 2,367 425 900 12 (480) 4,700 Loans Charged-off (13) — — — — — — (16) — (29) Recoveries of Loans 4 — — 5 — — — 11 — 20 Total Ending Allowance Balance $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Six Months Ended June 30, 2021 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 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, 2022 and December 31, 2021: Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Program Development Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Loan Losses at June 30, 2022 Individually Evaluated for Impairment $ 12 $ — $ — $ — $ — $ — $ 223 $ — $ — $ 235 Collectively Evaluated for Impairment 6,263 2 4,772 4,206 14,977 1,920 12,012 154 170 44,476 Totals $ 6,275 $ 2 $ 4,772 $ 4,206 $ 14,977 $ 1,920 $ 12,235 $ 154 $ 170 $ 44,711 Allowance for Loan Losses at December 31, 2021 Individually Evaluated for Impairment $ 607 $ — $ — $ — $ — $ — $ — $ — $ — $ 607 Collectively Evaluated for Impairment 5,649 13 3,757 3,757 12,610 1,495 11,335 147 650 39,413 Totals $ 6,256 $ 13 $ 3,757 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Paycheck Construction CRE CRE Protection and Land 1--4 Family Owner Non-owner Consume r (dollars in thousands) Commercial Program Development Mortgage Multifamily Occupied Occupied and Othe r Total Loans at June 30, 2022 Individually Evaluated for Impairment $ 9,798 $ — $ 116 $ 284 $ — $ 1,696 $ 15,097 $ — $ 26,991 Collectively Evaluated for Impairment 393,771 4,860 359,075 334,531 1,087,865 140,518 871,335 6,939 3,198,894 Totals $ 403,569 $ 4,860 $ 359,191 $ 334,815 $ 1,087,865 $ 142,214 $ 886,432 $ 6,939 $ 3,225,885 Loans at December 31, 2021 Individually Evaluated for Impairment $ 14,512 $ — $ 130 $ 1,390 $ — $ 2,421 $ 4,188 $ — $ 22,641 Collectively Evaluated for Impairment 345,657 26,162 281,344 303,927 910,243 108,675 814,381 6,442 2,796,831 Totals $ 360,169 $ 26,162 $ 281,474 $ 305,317 $ 910,243 $ 111,096 $ 818,569 $ 6,442 $ 2,819,472 |
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, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Recorded Principal Related Recorded Principal Related (dollars in thousands) Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 9,713 $ 9,713 $ — $ 4,545 $ 4,545 $ — Construction and Land Development 116 723 — 130 737 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — — 933 933 — 1st REM - Rentals 284 284 — 457 457 — CRE Owner Occupied 1,696 1,761 — 2,421 2,466 — CRE Nonowner Occupied 2,962 2,962 — 4,188 4,188 — Totals 14,771 15,443 — 12,674 13,326 — Loans With An Allowance for Loan Losses: Commercial 85 85 12 9,967 9,967 607 Real Estate Mortgage: CRE Nonowner Occupied 12,135 12,135 223 — — — Totals 12,220 12,220 235 9,967 9,967 607 Grand Totals $ 26,991 $ 27,663 $ 235 $ 22,641 $ 23,293 $ 607 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Average Interest Average Interest Average Interest Average Interest (dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 11,156 $ 154 $ 53 $ — $ 12,074 $ 331 $ 56 $ 2 Construction and Land Development 120 — 144 — 123 — 147 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage — — 883 11 — — 884 22 1st REM - Rentals 286 4 471 6 288 7 473 12 CRE Owner Occupied 1,765 16 867 3 1,768 33 869 6 CRE Nonowner Occupied 2,970 38 3,624 52 2,987 75 3,635 91 Totals 16,297 212 6,042 72 17,240 446 6,064 133 Loans With An Allowance for Loan Losses: Commercial 85 — 1,162 14 86 1 1,161 26 Real Estate Mortgage: CRE Nonowner Occupied 12,136 123 — — 12,136 244 — — Consumer and Other — — 12 — — — 13 — Totals 12,221 123 1,174 14 12,222 245 1,174 26 Grand Totals $ 28,518 $ 335 $ 7,216 $ 86 $ 29,462 $ 691 $ 7,238 $ 159 |
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, 2022 and December 31, 2021, based on the most recent analysis performed by management: June 30, 2022 (dollars in thousands) Pass Watch Substandard Total Commercial $ 387,317 $ 6,454 $ 9,798 $ 403,569 Paycheck Protection Program 4,860 — — 4,860 Construction and Land Development 359,075 — 116 359,191 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 33,263 — — 33,263 1st REM - 1-4 Family 51,356 682 — 52,038 LOCs and 2nd REM - Rentals 25,533 12 — 25,545 1st REM - Rentals 223,685 — 284 223,969 Multifamily 1,087,865 — — 1,087,865 CRE Owner Occupied 140,518 — 1,696 142,214 CRE Nonowner Occupied 843,778 27,557 15,097 886,432 Consumer and Other 6,939 — — 6,939 Totals $ 3,164,189 $ 34,705 $ 26,991 $ 3,225,885 December 31, 2021 (dollars in thousands) Pass Watch Substandard Total Commercial $ 336,939 $ 8,718 $ 14,512 $ 360,169 Paycheck Protection Program 26,162 — — 26,162 Construction and Land Development 281,344 — 130 281,474 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,327 — 933 31,260 1st REM - 1-4 Family 48,024 689 — 48,713 LOCs and 2nd REM - Rentals 21,625 16 — 21,641 1st REM - Rentals 203,246 — 457 203,703 Multifamily 910,243 — — 910,243 CRE Owner Occupied 108,675 — 2,421 111,096 CRE Nonowner Occupied 774,474 39,907 4,188 818,569 Consumer and Other 6,442 — — 6,442 Totals $ 2,747,501 $ 49,330 $ 22,641 $ 2,819,472 |
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, 2022 and December 31, 2021: Accruing Interest 30-89 Days 90 Days or (dollars in thousands) Current Past Due More Past Due Nonaccrual Total June 30, 2022 Commercial $ 403,569 $ — $ — $ — $ 403,569 Paycheck Protection Program 4,856 4 — — 4,860 Construction and Land Development 359,075 — — 116 359,191 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 33,012 251 — — 33,263 1st REM - 1-4 Family 52,038 — — — 52,038 LOCs and 2nd REM - Rentals 25,545 — — — 25,545 1st REM - Rentals 223,969 — — — 223,969 Multifamily 1,087,865 — — — 1,087,865 CRE Owner Occupied 141,642 — — 572 142,214 CRE Nonowner Occupied 886,432 — — — 886,432 Consumer and Other 6,939 — — — 6,939 Totals $ 3,224,942 $ 255 $ — $ 688 $ 3,225,885 Accruing Interest 30-89 Days 90 Days or (dollars in thousands) Current Past Due More Past Due Nonaccrual Total December 31, 2021 Commercial $ 360,169 $ — $ — $ — $ 360,169 Paycheck Protection Program 26,162 — — — 26,162 Construction and Land Development 281,344 — — 130 281,474 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,211 49 — — 31,260 1st REM - 1-4 Family 48,713 — — — 48,713 LOCs and 2nd REM - Rentals 21,641 — — — 21,641 1st REM - Rentals 203,703 — — — 203,703 Multifamily 910,243 — — — 910,243 CRE Owner Occupied 110,504 — — 592 111,096 CRE Nonowner Occupied 818,569 — — — 818,569 Consumer and Other 6,442 — — — 6,442 Totals $ 2,818,701 $ 49 $ — $ 722 $ 2,819,472 |
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, 2022: Interest-Only Extended Amortization Total (dollars in thousands) Amount # of Loans Amount # of Loans Amount # of Loans Commercial $ 315 2 $ 4,694 1 $ 5,009 3 Real Estate Mortgage: CRE Nonowner Occupied 24,776 4 — — 24,776 4 Totals $ 25,091 6 $ 4,694 1 $ 29,785 7 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits. | |
Schedule of composition of deposits | The following table presents the composition of deposits at June 30, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Transaction Deposits $ 1,484,149 $ 1,419,873 Savings and Money Market Deposits 952,138 863,567 Time Deposits 272,424 293,474 Brokered Deposits 493,242 369,323 Totals $ 3,201,953 $ 2,946,237 |
Summary of scheduled maturities of brokered and customer time deposits | The following table presents the scheduled maturities of brokered and customer time deposits at June 30, 2022: (dollars in thousands) 2022 Less than 1 Year $ 172,726 1 to 2 Years 94,935 2 to 3 Years 124,252 3 to 4 Years 105,491 4 to 5 Years 22,442 Greater than 5 Years 24,423 Totals $ 544,269 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities | |
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 three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Derivatives in Location of Loss Loss Loss Cash Flow Hedging Reclassified Reclassified from Reclassified from Relationships from AOCI into Income AOCI into Earnings AOCI into Earnings Interest rate swaps Interest expense $ (65) $ (275) $ (312) $ (537) Interest rate caps Interest expense (194) (70) (370) (136) |
Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
Summary of interest rate derivatives | The following table presents a summary of the Company’s interest rate contracts as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 125,000 $ 7,487 $ 90,000 $ 1,717 Liabilities — — 35,000 (926) Interest rate cap agreements: Assets 125,000 15,144 110,000 7,356 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities | |
Summary of interest rate derivatives | The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 65,916 $ 5,099 $ 49,101 $ 641 Liabilities 65,916 (5,099) 49,101 (641) Total $ 131,832 $ — $ 98,202 $ — |
Interest Rate Swap | Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
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, 2022 and December 31, 2021: (dollars in thousands) June 30, 2022 December 31, 2021 Notional Amount $ 125,000 $ 125,000 Weighted Average Pay Rate 1.23 % 1.27 % Weighted Average Receive Rate 1.01 % 0.14 % Weighted Average Maturity (Years) 3.27 3.76 Net Unrealized Gain (Loss) $ 7,487 $ 791 |
Interest Rate Cap | Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, 2022 December 31, 2021 Notional Amount $ 125,000 $ 110,000 Unamortized Premium Paid 6,269 5,859 Weighted Average Strike Rate 0.96 % 0.90 % Weighted Average Maturity (Years) 8.08 8.72 |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated Debentures | |
Schedule of subordinated debentures | The following table presents a summary of the Company’s subordinated debentures as of June 30, 2022: Total Debt Total Debt Date First Maturity Outstanding Outstanding Interest Name Established Redemption Date Date June 30, 2022 December 31, 2021 Rate Coupon Structure (dollars in thousands) 2027 Notes July 12, 2017 July 15, 2022 July 15, 2027 $ 13,750 $ 13,750 5.88 % Fixed-to-Floating (1) 2030 Notes June 19, 2020 July 1, 2025 July 1, 2030 50,000 50,000 5.25 % Fixed-to-Floating (2) 2031 Notes July 8, 2021 July 15, 2026 July 15, 2031 30,000 30,000 3.25 % Fixed-to-Floating (3) Subordinated Debentures 93,750 93,750 Debt Issuance Costs (1,291) (1,511) Subordinated Debentures, Net of Issuance Costs $ 92,459 $ 92,239 (1) Migrates to three month LIBOR + 3.88% beginning July 15, 2022 until either the early redemption date or the maturity date. (2) Migrates to three month term SOFR + 5.13% beginning July 1, 2025 until either the early redemption date or the maturity date. (3) Migrates to three month term SOFR + 2.52% beginning July 15, 2026 until either the early redemption date or the maturity date. |
Commitments, Contingencies an_2
Commitments, Contingencies and Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments, Contingencies and Credit Risk | |
Schedule of commitments outstanding | The following commitments were outstanding at June 30, 2022 and December 31, 2021: June 30, December 31, (dollars in thousands) 2022 2021 Unfunded Commitments Under Lines of Credit $ 892,523 $ 799,148 Letters of Credit 116,017 119,647 Totals $ 1,008,540 $ 918,795 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022, are as follows: June 30, 2022 Dividend Yield — % Expected Life 7 Years Expected Volatility 24.71 % Risk-Free Interest Rate 1.70 % |
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, 2022: June 30, 2022 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,768,745 $ 7.67 Granted 290,000 17.50 Exercised (24,750) 2.65 Forfeitures (12,000) 14.77 Outstanding at Period End 2,021,995 $ 9.10 Options Exercisable at Period End 1,332,720 $ 7.00 |
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, 2022: 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 - 3.99 384,000 $ 3.04 1.6 384,000 $ 3.04 7.00 - 7.99 926,717 7.47 5.3 733,317 7.47 8.00 - 8.99 20,000 8.76 7.8 7,500 8.76 10.00 - 10.99 10,000 10.08 7.9 5,000 10.08 11.00 - 11.99 85,000 11.27 6.9 41,000 11.30 12.00 - 12.99 270,778 12.89 7.1 139,278 12.90 13.00 - 13.99 25,000 13.22 5.9 20,000 13.22 17.00 - 17.99 300,500 17.50 9.6 2,625 17.49 Totals 2,021,995 $ 9.10 5.6 1,332,720 $ 7.00 |
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, 2022: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2021 435,900 $ 3.43 Granted 290,000 5.28 Vested (24,625) 4.39 Forfeited (12,000) 5.12 Nonvested Options at June 30, 2022 689,275 $ 4.15 |
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, 2022: Weighted Number of Average Grant Shares Date Fair Value Nonvested Awards at December 31, 2021 75,113 $ 12.59 Granted — — Vested (2,786) 10.32 Forfeited (1,000) 12.92 Nonvested Awards at June 30, 2022 71,327 $ 12.68 |
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, 2022: Weighted Number of Average Grant Units Date Fair Value Nonvested Units at December 31, 2021 344,908 $ 15.02 Granted 2,500 17.50 Vested (2,100) 14.94 Forfeited (9,572) 15.12 Nonvested Units at June 30, 2022 335,736 $ 15.03 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, on a consolidated basis, and the Bank as of June 30, 2022 and December 31, 2021: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2022 Company (Consolidated): Total Risk-based Capital $ 520,465 13.98 % $ 297,826 8.00 % $ 390,897 10.50 % N/A N/A Tier 1 Risk-based Capital 382,935 10.29 223,370 6.00 316,441 8.50 N/A N/A Common Equity Tier 1 Capital 316,421 8.50 167,527 4.50 260,598 7.00 N/A N/A Tier 1 Leverage Ratio 382,935 10.33 148,348 4.00 148,348 4.00 N/A N/A Bank: Total Risk-based Capital $ 474,151 12.74 % $ 297,672 8.00 % $ 390,695 10.50 % $ 372,090 10.00 % Tier 1 Risk-based Capital 429,080 11.53 223,254 6.00 316,277 8.50 297,672 8.00 Common Equity Tier 1 Capital 429,080 11.53 167,441 4.50 260,463 7.00 241,859 6.50 Tier 1 Leverage Ratio 429,080 11.43 150,118 4.00 150,118 4.00 187,647 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 (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Company (Consolidated): Total Risk-based Capital $ 499,554 15.55 % $ 256,966 8.00 % $ 337,268 10.50 % N/A N/A Tier 1 Risk-based Capital 367,161 11.43 192,725 6.00 273,027 8.50 N/A N/A Common Equity Tier 1 Capital 300,647 9.36 144,543 4.50 224,845 7.00 N/A N/A Tier 1 Leverage Ratio 367,161 10.82 135,723 4.00 135,723 4.00 N/A N/A Bank: Total Risk-based Capital $ 415,848 12.94 % $ 257,005 8.00 % $ 337,319 10.50 % $ 321,256 10.00 % Tier 1 Risk-based Capital 375,688 11.69 192,754 6.00 273,068 8.50 257,005 8.00 Common Equity Tier 1 Capital 375,688 11.69 144,565 4.50 224,879 7.00 208,816 6.50 Tier 1 Leverage Ratio 375,688 11.09 135,508 4.00 135,508 4.00 169,386 5.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and December 31, 2021: June 30, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 2,606 $ — $ — $ 2,606 Municipal Bonds — 167,521 — 167,521 Mortgage-Backed Securities — 144,969 — 144,969 Corporate Securities — 103,097 — 103,097 SBA Securities — 24,642 — 24,642 Asset-Backed Securities — 39,748 — 39,748 Interest Rate Caps — 15,144 — 15,144 Interest Rate Swaps — 12,586 — 12,586 Total Fair Value of Financial Assets $ 2,606 $ 507,707 $ — $ 510,313 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 5,099 $ — $ 5,099 Total Fair Value of Financial Liabilities $ — $ 5,099 $ — $ 5,099 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 754 $ — $ — $ 754 Municipal Bonds — 158,369 — 158,369 Mortgage-Backed Securities — 124,537 — 124,537 Corporate Securities — 84,480 — 84,480 SBA Securities — 30,370 — 30,370 Asset-Backed Securities — 40,852 — 40,852 Interest Rate Caps — 7,356 — 7,356 Interest Rate Swaps — 2,358 — 2,358 Total Fair Value of Financial Assets $ 754 $ 448,322 $ — $ 449,076 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 1,567 $ — $ 1,567 Total Fair Value of Financial Liabilities $ — $ 1,567 $ — $ 1,567 |
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, 2022 and December 31, 2021: June 30, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 11,985 $ — $ 235 Totals $ — $ 11,985 $ — $ 235 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 9,360 $ — $ 625 Totals $ — $ 9,360 $ — $ 625 |
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, 2022 and December 31, 2021: June 30, 2022 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 73,517 $ 73,517 $ — $ — $ 73,517 Bank-Owned Certificates of Deposit 1,138 — 1,127 — 1,127 Securities Available for Sale 482,583 2,606 479,977 — 482,583 FHLB Stock, at Cost 9,921 — 9,921 — 9,921 Loans, Net 3,171,638 — 3,113,609 — 3,113,609 Accrued Interest Receivable 10,010 — 10,010 — 10,010 Interest Rate Caps 15,144 — 15,144 — 15,144 Interest Rate Swaps 12,586 — 12,586 — 12,586 Financial Liabilities: Deposits $ 3,201,953 $ — $ 3,171,333 $ — $ 3,171,333 Federal Funds Purchased 86,000 — 86,000 — 86,000 FHLB Advances 56,500 — 55,687 — 55,687 Subordinated Debentures 92,459 — 90,857 — 90,857 Accrued Interest Payable 1,393 — 1,393 — 1,393 Interest Rate Swaps 5,099 — 5,099 — 5,099 December 31, 2021 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 143,473 $ 143,473 $ — $ — $ 143,473 Bank-Owned Certificates of Deposit 1,876 — 1,884 — 1,884 Securities Available for Sale 439,362 754 438,608 — 439,362 FHLB Stock, at Cost 5,242 — 5,242 — 5,242 Loans, Net 2,769,917 — 2,726,417 — 2,726,417 Accrued Interest Receivable 9,186 — 9,186 — 9,186 Interest Rate Caps 7,356 — 7,356 — 7,356 Interest Rate Swaps 2,358 — 2,358 — 2,358 Financial Liabilities: Deposits $ 2,946,237 $ — $ 2,931,215 $ — $ 2,931,215 FHLB Advances 42,500 — 42,515 — 42,515 Subordinated Debentures 92,239 — 97,700 — 97,700 Accrued Interest Payable 1,409 — 1,409 — 1,409 Interest Rate Swaps 1,567 — 1,567 — 1,567 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share | ||||
Anti dilutive securities excluded from the calculation of EPS | 332,200 | 23,000 | 300,500 | 56,000 |
Net Income Available to Common Shareholders | $ 11,868 | $ 10,993 | $ 23,117 | $ 21,664 |
Weighted Average Common Stock Outstanding: | ||||
Weighted Average Common Stock Outstanding (Basic) | 27,839,260 | 28,040,762 | 27,980,749 | 28,029,129 |
Dilutive Effect of Stock Compensation | 964,582 | 1,087,419 | 1,011,031 | 1,019,295 |
Weighted Average Common Stock Outstanding (Dilutive) | 28,803,842 | 29,128,181 | 28,991,780 | 29,048,424 |
Basic Earnings per Common Share (in dollars per share) | $ 0.43 | $ 0.39 | $ 0.83 | $ 0.77 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.41 | $ 0.38 | $ 0.80 | $ 0.75 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | $ 511,938 | $ 430,250 |
Gross Unrealized Gains | 1,357 | 12,463 |
Gross Unrealized Losses | (30,712) | (3,351) |
Fair Value | 482,583 | 439,362 |
U.S. Treasury Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 2,620 | 756 |
Gross Unrealized Losses | (14) | (2) |
Fair Value | 2,606 | 754 |
Municipal Bonds | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 184,401 | 151,665 |
Gross Unrealized Gains | 618 | 7,492 |
Gross Unrealized Losses | (17,498) | (788) |
Fair Value | 167,521 | 158,369 |
Mortgage-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 155,580 | 125,563 |
Gross Unrealized Gains | 5 | 1,085 |
Gross Unrealized Losses | (10,616) | (2,111) |
Fair Value | 144,969 | 124,537 |
Corporate Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 104,647 | 81,925 |
Gross Unrealized Gains | 402 | 2,740 |
Gross Unrealized Losses | (1,952) | (185) |
Fair Value | 103,097 | 84,480 |
SBA Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 24,690 | 30,474 |
Gross Unrealized Gains | 113 | 102 |
Gross Unrealized Losses | (161) | (206) |
Fair Value | 24,642 | 30,370 |
Asset-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized Cost | 40,000 | 39,867 |
Gross Unrealized Gains | 219 | 1,044 |
Gross Unrealized Losses | (471) | (59) |
Fair Value | $ 39,748 | $ 40,852 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) 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 | $ 301,990 | $ 102,043 |
Less Than 12 Months, Unrealized Losses | (22,611) | (1,539) |
12 Months or Greater, Fair Value | 64,029 | 57,951 |
12 Months or Greater, Unrealized Losses | (8,101) | (1,812) |
Fair Value | 366,019 | 159,994 |
Unrealized Losses | $ (30,712) | $ (3,351) |
Number of debt securities with unrealized losses | security | 448 | 199 |
Percentage of aggregate depreciation from amortized cost basis | 7.70% | 2.10% |
U.S. Treasury 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 | $ 2,606 | $ 754 |
Less Than 12 Months, Unrealized Losses | (14) | (2) |
Fair Value | 2,606 | 754 |
Unrealized Losses | (14) | (2) |
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 | 118,200 | 44,332 |
Less Than 12 Months, Unrealized Losses | (15,176) | (708) |
12 Months or Greater, Fair Value | 10,705 | 3,757 |
12 Months or Greater, Unrealized Losses | (2,322) | (80) |
Fair Value | 128,905 | 48,089 |
Unrealized Losses | (17,498) | (788) |
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 | 95,492 | 36,921 |
Less Than 12 Months, Unrealized Losses | (5,124) | (630) |
12 Months or Greater, Fair Value | 39,148 | 35,949 |
12 Months or Greater, Unrealized Losses | (5,492) | (1,481) |
Fair Value | 134,640 | 72,870 |
Unrealized Losses | (10,616) | (2,111) |
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 | 60,879 | 9,398 |
Less Than 12 Months, Unrealized Losses | (1,883) | (133) |
12 Months or Greater, Fair Value | 1,930 | 1,948 |
12 Months or Greater, Unrealized Losses | (69) | (52) |
Fair Value | 62,809 | 11,346 |
Unrealized Losses | (1,952) | (185) |
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 | 3,549 | 3,896 |
Less Than 12 Months, Unrealized Losses | (19) | (7) |
12 Months or Greater, Fair Value | 10,942 | 16,297 |
12 Months or Greater, Unrealized Losses | (142) | (199) |
Fair Value | 14,491 | 20,193 |
Unrealized Losses | (161) | (206) |
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 | 21,264 | 6,742 |
Less Than 12 Months, Unrealized Losses | (395) | (59) |
12 Months or Greater, Fair Value | 1,304 | |
12 Months or Greater, Unrealized Losses | (76) | |
Fair Value | 22,568 | 6,742 |
Unrealized Losses | $ (471) | $ (59) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Contractual maturities, amortized cost | ||
Due in One Year or Less | $ 4,696 | |
Due After One Year Through Five Years | 72,588 | |
Due After Five Years Through 10 Years | 106,866 | |
Due After 10 Years | 107,518 | |
Subtotal | 291,668 | |
Totals | 511,938 | $ 430,250 |
Contractual maturities, fair value | ||
Due in One Year or Less | 4,707 | |
Due After One Year Through Five Years | 72,446 | |
Due After Five Years Through 10 Years | 102,636 | |
Due After 10 Years | 93,435 | |
Subtotal | 273,224 | |
Totals | 482,583 | 439,362 |
Mortgage-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 155,580 | |
Totals | 155,580 | 125,563 |
Contractual maturities, fair value | ||
Contractual securities | 144,969 | |
Totals | 144,969 | 124,537 |
SBA Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 24,690 | |
Totals | 24,690 | 30,474 |
Contractual maturities, fair value | ||
Contractual securities | 24,642 | |
Totals | 24,642 | 30,370 |
Asset-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 40,000 | |
Totals | 40,000 | 39,867 |
Contractual maturities, fair value | ||
Contractual securities | 39,748 | |
Totals | $ 39,748 | $ 40,852 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | ||||
Proceeds From Sales of Securities | $ 25,066 | $ 6,107 | $ 25,066 | $ 7,757 |
Gross Gains on Sales | 234 | $ 702 | 234 | $ 702 |
Gross Losses on Sales | $ (182) | $ (182) |
Loans - Components of loans (De
Loans - Components of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Components of loans | ||||||
Total Loans, Gross | $ 3,225,885 | $ 2,819,472 | ||||
Allowance for Loan Losses | (44,711) | $ (41,692) | (40,020) | $ (37,591) | $ (35,987) | $ (34,841) |
Net Deferred Loan Fees | (9,536) | (9,535) | ||||
Total Loans, Net | 3,171,638 | 2,769,917 | ||||
Commercial | ||||||
Components of loans | ||||||
Total Loans, Gross | 403,569 | 360,169 | ||||
Allowance for Loan Losses | (6,275) | (5,638) | (6,256) | (6,525) | (6,451) | (5,703) |
Paycheck Protection Program (PPP), CARES Act | ||||||
Components of loans | ||||||
Total Loans, Gross | 4,860 | 26,162 | ||||
Allowance for Loan Losses | (2) | (6) | (13) | (50) | (83) | (70) |
Construction and Land Development | ||||||
Components of loans | ||||||
Total Loans, Gross | 359,191 | 281,474 | ||||
Allowance for Loan Losses | (4,772) | (4,319) | (3,757) | (3,427) | (2,773) | (2,491) |
Real Estate Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 2,451,326 | 2,145,225 | ||||
1-4 Family Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 334,815 | 305,317 | ||||
Allowance for Loan Losses | (4,206) | (3,885) | (3,757) | (3,502) | (3,894) | (3,972) |
Multifamily | ||||||
Components of loans | ||||||
Total Loans, Gross | 1,087,865 | 910,243 | ||||
Allowance for Loan Losses | (14,977) | (14,083) | (12,610) | (11,150) | (9,856) | (9,517) |
CRE Owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 142,214 | 111,096 | ||||
Allowance for Loan Losses | (1,920) | (1,595) | (1,495) | (1,244) | (1,187) | (1,162) |
CRE Non-owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 886,432 | 818,569 | ||||
Allowance for Loan Losses | (12,235) | (11,663) | (11,335) | (11,018) | (11,026) | (10,991) |
Consumer and other | ||||||
Components of loans | ||||||
Total Loans, Gross | 6,939 | 6,442 | ||||
Allowance for Loan Losses | $ (154) | $ (177) | $ (147) | $ (220) | $ (232) | $ (203) |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for Loan Losses: | |||||
Beginning Balance | $ 41,692 | $ 35,987 | $ 40,020 | $ 34,841 | $ 34,841 |
Provision for Loan Losses | 3,025 | 1,600 | 4,700 | 2,700 | |
Loans Charged-off | (14) | (3) | (29) | (17) | |
Recoveries of Loans | 8 | 7 | 20 | 67 | |
Total Ending Allowance Balance | 44,711 | 37,591 | 44,711 | 37,591 | 40,020 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 235 | 235 | 607 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 44,476 | 44,476 | 39,413 | ||
Loans and Leases Receivable, Allowance, Total | 44,711 | 37,591 | 44,711 | 37,591 | 40,020 |
Loans, Individually Evaluated for Impairment | 26,991 | 26,991 | 22,641 | ||
Loans, Collectively Evaluated for Impairment | 3,198,894 | 3,198,894 | 2,796,831 | ||
Totals | 3,225,885 | 3,225,885 | 2,819,472 | ||
Commercial | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 5,638 | 6,451 | 6,256 | 5,703 | 5,703 |
Provision for Loan Losses | 648 | 71 | 28 | 800 | |
Loans Charged-off | (13) | (13) | |||
Recoveries of Loans | 2 | 3 | 4 | 22 | |
Total Ending Allowance Balance | 6,275 | 6,525 | 6,275 | 6,525 | 6,256 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 12 | 12 | 607 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 6,263 | 6,263 | 5,649 | ||
Loans and Leases Receivable, Allowance, Total | 6,275 | 6,525 | 6,275 | 6,525 | 6,256 |
Loans, Individually Evaluated for Impairment | 9,798 | 9,798 | 14,512 | ||
Loans, Collectively Evaluated for Impairment | 393,771 | 393,771 | 345,657 | ||
Totals | 403,569 | 403,569 | 360,169 | ||
Paycheck Protection Program (PPP), CARES Act | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 6 | 83 | 13 | 70 | 70 |
Provision for Loan Losses | (4) | (33) | (11) | (20) | |
Total Ending Allowance Balance | 2 | 50 | 2 | 50 | 13 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2 | 2 | 13 | ||
Loans and Leases Receivable, Allowance, Total | 2 | 50 | 2 | 50 | 13 |
Loans, Collectively Evaluated for Impairment | 4,860 | 4,860 | 26,162 | ||
Totals | 4,860 | 4,860 | 26,162 | ||
Construction and Land Development | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 4,319 | 2,773 | 3,757 | 2,491 | 2,491 |
Provision for Loan Losses | 453 | 654 | 1,015 | 936 | |
Total Ending Allowance Balance | 4,772 | 3,427 | 4,772 | 3,427 | 3,757 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 4,772 | 4,772 | 3,757 | ||
Loans and Leases Receivable, Allowance, Total | 4,772 | 3,427 | 4,772 | 3,427 | 3,757 |
Loans, Individually Evaluated for Impairment | 116 | 116 | 130 | ||
Loans, Collectively Evaluated for Impairment | 359,075 | 359,075 | 281,344 | ||
Totals | 359,191 | 359,191 | 281,474 | ||
1-4 Family Mortgage | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 3,885 | 3,894 | 3,757 | 3,972 | 3,972 |
Provision for Loan Losses | 319 | (394) | 444 | (470) | |
Loans Charged-off | (5) | ||||
Recoveries of Loans | 2 | 2 | 5 | 5 | |
Total Ending Allowance Balance | 4,206 | 3,502 | 4,206 | 3,502 | 3,757 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 4,206 | 4,206 | 3,757 | ||
Loans and Leases Receivable, Allowance, Total | 4,206 | 3,502 | 4,206 | 3,502 | 3,757 |
Loans, Individually Evaluated for Impairment | 284 | 284 | 1,390 | ||
Loans, Collectively Evaluated for Impairment | 334,531 | 334,531 | 303,927 | ||
Totals | 334,815 | 334,815 | 305,317 | ||
Multifamily | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 14,083 | 9,856 | 12,610 | 9,517 | 9,517 |
Provision for Loan Losses | 894 | 1,294 | 2,367 | 1,633 | |
Total Ending Allowance Balance | 14,977 | 11,150 | 14,977 | 11,150 | 12,610 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 14,977 | 14,977 | 12,610 | ||
Loans and Leases Receivable, Allowance, Total | 14,977 | 11,150 | 14,977 | 11,150 | 12,610 |
Loans, Collectively Evaluated for Impairment | 1,087,865 | 1,087,865 | 910,243 | ||
Totals | 1,087,865 | 1,087,865 | 910,243 | ||
CRE Owner Occupied | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 1,595 | 1,187 | 1,495 | 1,162 | 1,162 |
Provision for Loan Losses | 325 | 57 | 425 | 50 | |
Recoveries of Loans | 32 | ||||
Total Ending Allowance Balance | 1,920 | 1,244 | 1,920 | 1,244 | 1,495 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 1,920 | 1,920 | 1,495 | ||
Loans and Leases Receivable, Allowance, Total | 1,920 | 1,244 | 1,920 | 1,244 | 1,495 |
Loans, Individually Evaluated for Impairment | 1,696 | 1,696 | 2,421 | ||
Loans, Collectively Evaluated for Impairment | 140,518 | 140,518 | 108,675 | ||
Totals | 142,214 | 142,214 | 111,096 | ||
CRE Non-owner Occupied | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 11,663 | 11,026 | 11,335 | 10,991 | 10,991 |
Provision for Loan Losses | 572 | (8) | 900 | 27 | |
Total Ending Allowance Balance | 12,235 | 11,018 | 12,235 | 11,018 | 11,335 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 223 | 223 | |||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 12,012 | 12,012 | 11,335 | ||
Loans and Leases Receivable, Allowance, Total | 12,235 | 11,018 | 12,235 | 11,018 | 11,335 |
Loans, Individually Evaluated for Impairment | 15,097 | 15,097 | 4,188 | ||
Loans, Collectively Evaluated for Impairment | 871,335 | 871,335 | 814,381 | ||
Totals | 886,432 | 886,432 | 818,569 | ||
Consumer and other | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 177 | 232 | 147 | 203 | 203 |
Provision for Loan Losses | (26) | (11) | 12 | 21 | |
Loans Charged-off | (1) | (3) | (16) | (12) | |
Recoveries of Loans | 4 | 2 | 11 | 8 | |
Total Ending Allowance Balance | 154 | 220 | 154 | 220 | 147 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 154 | 154 | 147 | ||
Loans and Leases Receivable, Allowance, Total | 154 | 220 | 154 | 220 | 147 |
Loans, Collectively Evaluated for Impairment | 6,939 | 6,939 | 6,442 | ||
Totals | 6,939 | 6,939 | 6,442 | ||
Unallocated | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 326 | 485 | 650 | 732 | 732 |
Provision for Loan Losses | (156) | (30) | (480) | (277) | |
Total Ending Allowance Balance | 170 | 455 | 170 | 455 | 650 |
Allowance for loan losses and the recorded investment | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 170 | 170 | 650 | ||
Loans and Leases Receivable, Allowance, Total | $ 170 | $ 455 | $ 170 | $ 455 | $ 650 |
Loans - Impaired loans by loan
Loans - Impaired loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | $ 14,771 | $ 12,674 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 15,443 | 13,326 |
Loans With An Allowance for Loan Losses, Recorded Investment | 12,220 | 9,967 |
Loans With An Allowance for Loan Losses, Principal Balance | 12,220 | 9,967 |
Total Recorded Investment | 26,991 | 22,641 |
Total Principal Balance | 27,663 | 23,293 |
Related Allowance | 235 | 607 |
Commercial | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 9,713 | 4,545 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 9,713 | 4,545 |
Loans With An Allowance for Loan Losses, Recorded Investment | 85 | 9,967 |
Loans With An Allowance for Loan Losses, Principal Balance | 85 | 9,967 |
Related Allowance | 12 | 607 |
Construction and Land Development | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 116 | 130 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 723 | 737 |
HELOC and 1-4 Family Junior Mortgage | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 933 | |
Loans With No Related Allowance for Loan Losses, Principal Balance | 933 | |
1st REM - Rentals | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 284 | 457 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 284 | 457 |
CRE Owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 1,696 | 2,421 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 1,761 | 2,466 |
CRE Non-owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 2,962 | 4,188 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 2,962 | $ 4,188 |
Loans With An Allowance for Loan Losses, Recorded Investment | 12,135 | |
Loans With An Allowance for Loan Losses, Principal Balance | 12,135 | |
Related Allowance | $ 223 |
Loans - Average balances and in
Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 16,297 | $ 6,042 | $ 17,240 | $ 6,064 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 212 | 72 | 446 | 133 |
Loans With An Allowance for Loan Losses, Average Investment | 12,221 | 1,174 | 12,222 | 1,174 |
Loans With An Allowance for Loan Losses, Interest Recognized | 123 | 14 | 245 | 26 |
Total Average Investment | 28,518 | 7,216 | 29,462 | 7,238 |
Total Interest Recognized | 335 | 86 | 691 | 159 |
Commercial | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 11,156 | 53 | 12,074 | 56 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 154 | 331 | 2 | |
Loans With An Allowance for Loan Losses, Average Investment | 85 | 1,162 | 86 | 1,161 |
Loans With An Allowance for Loan Losses, Interest Recognized | 14 | 1 | 26 | |
Construction and Land Development | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 120 | 144 | 123 | 147 |
HELOC and 1-4 Family Junior Mortgage | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 883 | 884 | ||
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 | 286 | 471 | 288 | 473 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 4 | 6 | 7 | 12 |
CRE Owner Occupied | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 1,765 | 867 | 1,768 | 869 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 16 | 3 | 33 | 6 |
CRE Non-owner Occupied | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 2,970 | 3,624 | 2,987 | 3,635 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 38 | 52 | 75 | 91 |
Loans With An Allowance for Loan Losses, Average Investment | 12,136 | 12,136 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | $ 123 | $ 244 | ||
Consumer and other | ||||
Impaired loans by loan segment | ||||
Loans With An Allowance for Loan Losses, Average Investment | $ 12 | $ 13 |
Loans - Risk category of loans
Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 3,225,885 | $ 2,819,472 |
Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 3,164,189 | 2,747,501 |
Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 34,705 | 49,330 |
Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 26,991 | 22,641 |
Commercial | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 403,569 | 360,169 |
Commercial | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 387,317 | 336,939 |
Commercial | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 6,454 | 8,718 |
Commercial | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 9,798 | 14,512 |
Paycheck Protection Program (PPP), CARES Act | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 4,860 | 26,162 |
Paycheck Protection Program (PPP), CARES Act | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 4,860 | 26,162 |
Construction and Land Development | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 359,191 | 281,474 |
Construction and Land Development | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 359,075 | 281,344 |
Construction and Land Development | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 116 | 130 |
HELOC and 1-4 Family Junior Mortgage | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 33,263 | 31,260 |
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 | 33,263 | 30,327 |
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 | 933 | |
1st REM - 1-4 Family | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 52,038 | 48,713 |
1st REM - 1-4 Family | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 51,356 | 48,024 |
1st REM - 1-4 Family | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 682 | 689 |
LOCs and 2nd REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 25,545 | 21,641 |
LOCs and 2nd REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 25,533 | 21,625 |
LOCs and 2nd REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 12 | 16 |
1st REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 223,969 | 203,703 |
1st REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 223,685 | 203,246 |
1st REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 284 | 457 |
Multifamily | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,087,865 | 910,243 |
Multifamily | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,087,865 | 910,243 |
CRE Owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 142,214 | 111,096 |
CRE Owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 140,518 | 108,675 |
CRE Owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,696 | 2,421 |
CRE Non-owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 886,432 | 818,569 |
CRE Non-owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 843,778 | 774,474 |
CRE Non-owner Occupied | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 27,557 | 39,907 |
CRE Non-owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 15,097 | 4,188 |
Consumer and other | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 6,939 | 6,442 |
Consumer and other | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 6,939 | $ 6,442 |
Loans - Recorded investment in
Loans - Recorded investment in past due loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual | $ 688 | $ 722 |
Totals | 3,225,885 | 2,819,472 |
Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 3,224,942 | 2,818,701 |
30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 255 | 49 |
Commercial | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 403,569 | 360,169 |
Commercial | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 403,569 | 360,169 |
Paycheck Protection Program (PPP), CARES Act | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 4,860 | 26,162 |
Paycheck Protection Program (PPP), CARES Act | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 4,856 | 26,162 |
Paycheck Protection Program (PPP), CARES Act | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 4 | |
Construction and Land Development | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual | 116 | 130 |
Totals | 359,191 | 281,474 |
Construction and Land Development | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 359,075 | 281,344 |
HELOC and 1-4 Family Junior Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 33,263 | 31,260 |
HELOC and 1-4 Family Junior Mortgage | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 33,012 | 31,211 |
HELOC and 1-4 Family Junior Mortgage | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 251 | 49 |
1st REM - 1-4 Family | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 52,038 | 48,713 |
1st REM - 1-4 Family | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 52,038 | 48,713 |
LOCs and 2nd REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 25,545 | 21,641 |
LOCs and 2nd REM - Rentals | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 25,545 | 21,641 |
1st REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 223,969 | 203,703 |
1st REM - Rentals | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 223,969 | 203,703 |
Multifamily | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 1,087,865 | 910,243 |
Multifamily | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 1,087,865 | 910,243 |
CRE Owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual | 572 | 592 |
Totals | 142,214 | 111,096 |
CRE Owner Occupied | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 141,642 | 110,504 |
CRE Non-owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 886,432 | 818,569 |
CRE Non-owner Occupied | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | 886,432 | 818,569 |
Consumer and other | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 6,939 | 6,442 |
Consumer and other | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Loans | $ 6,939 | $ 6,442 |
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, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Loans | ||
Troubled Debt Restructurings, Number of Loans | 2 | 4 |
New Troubled Debt Restructurings, Post-Modification Outstanding Balance | $ | $ 201 | $ 1,400 |
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, 2022 USD ($) loan | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 29,785 |
Number of Loans | loan | 7 |
Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 5,009 |
Number of Loans | loan | 3 |
CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 24,776 |
Number of Loans | loan | 4 |
Interest Only | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 25,091 |
Number of Loans | loan | 6 |
Interest Only | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 315 |
Number of Loans | loan | 2 |
Interest Only | CRE Non-owner Occupied | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 24,776 |
Number of Loans | loan | 4 |
Extended Amortization | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,694 |
Number of Loans | loan | 1 |
Extended Amortization | Commercial | |
COVID-19 related loan modifications | |
Amount of loan modifications | $ | $ 4,694 |
Number of Loans | loan | 1 |
Deposits - Composition of depos
Deposits - Composition of deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deposits, by Type [Abstract] | ||
Transaction Deposits | $ 1,484,149 | $ 1,419,873 |
Savings and Money Market Deposits | 952,138 | 863,567 |
Time Deposits | 272,424 | 293,474 |
Brokered Deposits | 493,242 | 369,323 |
Total Deposits | 3,201,953 | 2,946,237 |
Brokered money market accounts | $ 221,400 | $ 131,200 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Scheduled Maturities of Time Deposits | ||
Less than 1 Year | $ 172,726 | |
1 to 2 Years | 94,935 | |
2 to 3 Years | 124,252 | |
3 to 4 Years | 105,491 | |
4 to 5 Years | 22,442 | |
Greater than 5 years | 24,423 | |
Totals | 544,269 | |
Aggregate time deposits greater | $ 53,400 | $ 59,600 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Non-hedge Derivatives (Details) - Interest Rate Swap - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Estimated Fair Value, Asset | $ 12,586 | $ 2,358 |
Estimated Fair Value, Liability | (5,099) | (1,567) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 65,916 | 49,101 |
Notional Amount, Liability | 65,916 | 49,101 |
Notional Amount | 131,832 | 98,202 |
Estimated Fair Value, Asset | 5,099 | 641 |
Estimated Fair Value, Liability | $ (5,099) | $ (641) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Derivatives (Details) - Cash flow hedge - Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash Flow Hedging Derivatives | |||
Amount expected to be reclassified from AOCI into earnings | $ (1,100) | ||
Interest Rate Swap | |||
Cash Flow Hedging Derivatives | |||
Notional Amount | $ 125,000 | $ 125,000 | |
Weighted Average Pay Rate | 1.23% | 1.27% | |
Weighted Average Receive Rate | 1.01% | 0.14% | |
Weighted average maturity | 3 years 3 months 7 days | 3 years 9 months 3 days | |
Net Unrealized Gain (Loss) | $ 7,487 | $ 791 | |
Interest Rate Cap | |||
Cash Flow Hedging Derivatives | |||
Notional Amount | $ 125,000 | $ 110,000 | |
Weighted average maturity | 8 years 29 days | 8 years 8 months 19 days | |
Initial Premium Paid | $ 6,269 | $ 5,859 | |
Weighted Average Strike Rate | 0.96% | 0.90% | |
Amortization of interest rate cap premiums | $ 370 | $ 95 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Cash Flow Hedging Reclassification (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral posted | $ 0 | $ 370 |
Collateral received | 30,000 | 8,600 |
Cash flow hedge | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 125,000 | 90,000 |
Notional Amount, Liability | 35,000 | |
Estimated Fair Value, Asset | 7,487 | 1,717 |
Estimated Fair Value, Liability | (926) | |
Cash flow hedge | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 125,000 | 110,000 |
Estimated Fair Value, Asset | $ 15,144 | $ 7,356 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ (207) | $ 357 | $ (630) | $ 29 |
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 | (65) | (275) | (312) | (537) |
Interest Rate Cap | Interest expense | Cash flow hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into earnings | $ (194) | $ (70) | $ (370) | $ (136) |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - Subordinated Note Purchase Agreement - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Subordinated Debentures | ||
Subordinated Debentures | $ 93,750 | $ 93,750 |
Debt Issuance Costs | (1,291) | (1,511) |
Subordinated Debentures, Net of Issuance Costs | 92,459 | 92,239 |
5.88% Fixed-to-Floating Rate Subordinated Notes due 2027 | ||
Subordinated Debentures | ||
Subordinated Debentures | $ 13,750 | $ 13,750 |
Interest rate (as a percent) | 5.88% | 5.88% |
5.88% Fixed-to-Floating Rate Subordinated Notes due 2027 | LIBOR | ||
Subordinated Debentures | ||
Variable spread on debt (as a percent) | 3.88% | |
5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | ||
Subordinated Debentures | ||
Subordinated Debentures | $ 50,000 | $ 50,000 |
Interest rate (as a percent) | 5.25% | 5.25% |
5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | SOFR | ||
Subordinated Debentures | ||
Variable spread on debt (as a percent) | 5.13% | |
3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 | ||
Subordinated Debentures | ||
Subordinated Debentures | $ 30,000 | $ 30,000 |
Interest rate (as a percent) | 3.25% | 3.25% |
3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 | SOFR | ||
Subordinated Debentures | ||
Variable spread on debt (as a percent) | 2.52% |
Commitments, Contingencies an_3
Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments Outstanding | ||
Unfunded Commitments Under Lines of Credit | $ 892,523 | $ 799,148 |
Letters of Credit | 116,017 | 119,647 |
Totals | 1,008,540 | 918,795 |
Federal Home Loan Bank Advances | ||
Commitments Outstanding | ||
Outstanding letters of credit | $ 53,700 | $ 36,500 |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) item shares | Dec. 31, 2021 shares | |
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 | |
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 | 44,700 | 294,700 |
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 | 350,991 | 352,575 |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Black-Scholes Assumptions (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Black-Scholes Assumptions | |
Expected Life | 7 years |
Expected Volatility | 24.71% |
Risk-Free Interest Rate | 1.70% |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock Option Plans | ||||
Outstanding at Beginning of Year | 1,768,745 | |||
Granted | 290,000 | |||
Exercised | (24,750) | |||
Forfeitures | (12,000) | |||
Outstanding at Period End | 2,021,995 | 2,021,995 | ||
Options Exercisable at Period End | 1,332,720 | 1,332,720 | ||
Weighted Average Exercise Price | ||||
Outstanding at Beginning of Year | $ 7.67 | |||
Granted | 17.50 | |||
Exercised | 2.65 | |||
Forfeitures | 14.77 | |||
Outstanding at Period End | $ 9.10 | 9.10 | ||
Options Exercisable at Period End | $ 7 | $ 7 | ||
Stock Options | ||||
Weighted Average Exercise Price | ||||
Compensation expense for stock options | $ 312 | $ 229 | $ 600 | $ 452 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Exercise Price (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Exercise Price | |
Options Outstanding, Number Outstanding | shares | 2,021,995 |
Options Outstanding, Weighted Average Exercise Price | $ 9.10 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 6 days |
Options Exercisable, Number Outstanding | shares | 1,332,720 |
Options Exercisable, Weighted Average Exercise Price | $ 7 |
Total unrecognized compensation cost | $ | $ 2.1 |
Weighted-average period over which total unrecognized compensation cost is expected to be recognized (in years) | 2 years 9 months 18 days |
2.13 - 3.99 | |
Exercise Price | |
Exercise Price, lower range | $ 2.13 |
Exercise Price, upper range | $ 3.99 |
Options Outstanding, Number Outstanding | shares | 384,000 |
Options Outstanding, Weighted Average Exercise Price | $ 3.04 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 7 months 6 days |
Options Exercisable, Number Outstanding | shares | 384,000 |
Options Exercisable, Weighted Average Exercise Price | $ 3.04 |
7.00 - 7.99 | |
Exercise Price | |
Exercise Price, lower range | 7 |
Exercise Price, upper range | $ 7.99 |
Options Outstanding, Number Outstanding | shares | 926,717 |
Options Outstanding, Weighted Average Exercise Price | $ 7.47 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 3 months 18 days |
Options Exercisable, Number Outstanding | shares | 733,317 |
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 | 7 years 9 months 18 days |
Options Exercisable, Number Outstanding | shares | 7,500 |
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 | 7 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 5,000 |
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 | 6 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 41,000 |
Options Exercisable, Weighted Average Exercise Price | $ 11.30 |
12.00 - 12.99 | |
Exercise Price | |
Exercise Price, lower range | 12 |
Exercise Price, upper range | $ 12.99 |
Options Outstanding, Number Outstanding | shares | 270,778 |
Options Outstanding, Weighted Average Exercise Price | $ 12.89 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 6 days |
Options Exercisable, Number Outstanding | shares | 139,278 |
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 | 5 years 10 months 24 days |
Options Exercisable, Number Outstanding | shares | 20,000 |
Options Exercisable, Weighted Average Exercise Price | $ 13.22 |
17.00 - 17.99 | |
Exercise Price | |
Exercise Price, lower range | 17 |
Exercise Price, upper range | $ 17.99 |
Options Outstanding, Number Outstanding | shares | 300,500 |
Options Outstanding, Weighted Average Exercise Price | $ 17.50 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 7 months 6 days |
Options Exercisable, Number Outstanding | shares | 2,625 |
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, 2022 $ / shares shares | |
Number of Shares | |
Nonvested Options at beginning of period | shares | 435,900 |
Granted | shares | 290,000 |
Vested | shares | (24,625) |
Forfeited | shares | (12,000) |
Nonvested Options at end of period | shares | 689,275 |
Weighted Average Grant Date Fair Value | |
Nonvested Options at beginning of period | $ / shares | $ 3.43 |
Granted | $ / shares | 5.28 |
Vested | $ / shares | 4.39 |
Forfeited | $ / shares | 5.12 |
Nonvested Options at end of period | $ / shares | $ 4.15 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Compensation expense | ||||
Weighted-average period for non vested restricted stock awards | 2 years 9 months 18 days | |||
Restricted Stock Awards | ||||
Number of Shares | ||||
Vesting period | 4 years | |||
Nonvested Awards at beginning of period | 75,113 | |||
Vested | (2,786) | |||
Forfeited | (1,000) | |||
Nonvested Awards at end of period | 71,327 | 71,327 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested Awards at beginning of period | $ 12.59 | |||
Vested | 10.32 | |||
Forfeited | 12.92 | |||
Nonvested Awards at end of period | $ 12.68 | $ 12.68 | ||
Compensation expense | ||||
Compensation expense recognized | $ 111 | $ 113 | $ 222 | $ 225 |
Unrecognized compensation cost | $ 659 | $ 659 | ||
Weighted-average period for non vested restricted stock awards | 1 year 6 months | |||
Shares issued for services on board of directors | 9,656 | |||
Value of shares issued for services on board of directors | $ 158 |
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 | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Compensation expense | ||||
Weighted-average period for non vested restricted stock awards | 2 years 9 months 18 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 | 1 | ||
Vesting period | 4 years | |||
Nonvested Awards at beginning of period | 344,908 | |||
Granted | 2,500 | |||
Vested | (2,100) | |||
Forfeited | (9,572) | |||
Nonvested Awards at end of period | 335,736 | 335,736 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested Awards at beginning of period | $ 15.02 | |||
Granted | 17.50 | |||
Vested | 14.94 | |||
Forfeited | 15.12 | |||
Nonvested Awards at end of period | $ 15.03 | $ 15.03 | ||
Compensation expense | ||||
Compensation expense recognized | $ 345 | $ 162 | $ 699 | $ 320 |
Unrecognized compensation cost | $ 4,200 | $ 4,200 | ||
Weighted-average period for non vested restricted stock awards | 3 years 1 month 6 days |
Regulatory Capital - Capital Am
Regulatory Capital - Capital Amounts and Ratios (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 520,465 | $ 499,554 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 297,826 | 256,966 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | $ 390,897 | $ 337,268 |
Total Risk-Based Capital, Actual ratio | 0.1398 | 0.1555 |
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 | $ 382,935 | $ 367,161 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 223,370 | 192,725 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 316,441 | $ 273,027 |
Tier 1 Risk-Based Capital, Actual ratio | 0.1029 | 0.1143 |
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 | $ 316,421 | $ 300,647 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 167,527 | 144,543 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 260,598 | $ 224,845 |
Common Equity Tier 1 Capital, Actual ratio | 0.0850 | 0.0936 |
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% | 7% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 382,935 | $ 367,161 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 148,348 | 135,723 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 148,348 | $ 135,723 |
Tier 1 Leverage Ratio, Actual ratio | 0.1033 | 0.1082 |
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 | $ 474,151 | $ 415,848 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 297,672 | 257,005 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | 390,695 | 337,319 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 372,090 | $ 321,256 |
Total Risk-Based Capital, Actual ratio | 0.1274 | 0.1294 |
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 | $ 429,080 | $ 375,688 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 223,254 | 192,754 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 316,277 | 273,068 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 297,672 | $ 257,005 |
Tier 1 Risk-Based Capital, Actual ratio | 0.1153 | 0.1169 |
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 | $ 429,080 | $ 375,688 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 167,441 | 144,565 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 260,463 | 224,879 |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 241,859 | $ 208,816 |
Common Equity Tier 1 Capital, Actual ratio | 0.1153 | 0.1169 |
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% | 7% |
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 | $ 429,080 | $ 375,688 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 150,118 | 135,508 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 150,118 | 135,508 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 187,647 | $ 169,386 |
Tier 1 Leverage Ratio, Actual ratio | 0.1143 | 0.1109 |
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, 2022 | Dec. 31, 2021 |
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | $ 482,583 | $ 439,362 |
Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 510,313 | 449,076 |
Total Fair Value of Financial Liabilities | 5,099 | 1,567 |
U.S. Treasury Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 2,606 | 754 |
U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 2,606 | 754 |
Municipal Bonds | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 167,521 | 158,369 |
Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 167,521 | 158,369 |
Mortgage-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 144,969 | 124,537 |
Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 144,969 | 124,537 |
Corporate Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 103,097 | 84,480 |
Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 103,097 | 84,480 |
SBA Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 24,642 | 30,370 |
SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 24,642 | 30,370 |
Asset-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,748 | 40,852 |
Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,748 | 40,852 |
Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Interest Rate Swaps | 5,099 | 1,567 |
Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Interest Rate Swaps | 5,099 | 1,567 |
Level 1 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 2,606 | 754 |
Level 1 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 2,606 | 754 |
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 | 2,606 | 754 |
Level 2 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 479,977 | 438,608 |
Level 2 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 507,707 | 448,322 |
Total Fair Value of Financial Liabilities | 5,099 | 1,567 |
Level 2 | Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 167,521 | 158,369 |
Level 2 | Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 144,969 | 124,537 |
Level 2 | Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 103,097 | 84,480 |
Level 2 | SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 24,642 | 30,370 |
Level 2 | Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale | 39,748 | 40,852 |
Level 2 | Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Level 2 | Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Level 2 | Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Interest Rate Swaps | 5,099 | 1,567 |
Level 2 | Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Interest Rate Swaps | $ 5,099 | $ 1,567 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | $ 3,025 | $ 1,600 | $ 4,700 | $ 2,700 | |
Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 235 | $ 625 | |||
Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 235 | 625 | |||
Level 2 | Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | 11,985 | 11,985 | 9,360 | ||
Level 2 | Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | $ 11,985 | $ 11,985 | $ 9,360 |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Cash and Due From Banks | $ 73,517 | $ 143,473 |
Bank-Owned Certificates of Deposit | 1,138 | 1,876 |
Securities Available for Sale | 482,583 | 439,362 |
FHLB Stock, at Cost | 9,921 | 5,242 |
Loans, Net | 3,171,638 | 2,769,917 |
Accrued Interest Receivable | 10,010 | 9,186 |
Financial Liabilities: | ||
Deposits | 3,201,953 | 2,946,237 |
Federal Funds Purchased | 86,000 | |
FHLB Advances | 56,500 | 42,500 |
Subordinated Debentures | 92,459 | 92,239 |
Accrued Interest Payable | 1,393 | 1,409 |
Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Financial Liabilities: | ||
Interest Rate Swaps | 5,099 | 1,567 |
Level 1 | ||
Financial Assets: | ||
Cash and Due From Banks | 73,517 | 143,473 |
Securities Available for Sale | 2,606 | 754 |
Level 2 | ||
Financial Assets: | ||
Bank-Owned Certificates of Deposit | 1,127 | 1,884 |
Securities Available for Sale | 479,977 | 438,608 |
FHLB Stock, at Cost | 9,921 | 5,242 |
Loans, Net | 3,113,609 | 2,726,417 |
Accrued Interest Receivable | 10,010 | 9,186 |
Financial Liabilities: | ||
Deposits | 3,171,333 | 2,931,215 |
Federal Funds Purchased | 86,000 | |
FHLB Advances | 55,687 | 42,515 |
Subordinated Debentures | 90,857 | 97,700 |
Accrued Interest Payable | 1,393 | 1,409 |
Level 2 | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Level 2 | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Financial Liabilities: | ||
Interest Rate Swaps | 5,099 | 1,567 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and Due From Banks | 73,517 | 143,473 |
Bank-Owned Certificates of Deposit | 1,127 | 1,884 |
Securities Available for Sale | 482,583 | 439,362 |
FHLB Stock, at Cost | 9,921 | 5,242 |
Loans, Net | 3,113,609 | 2,726,417 |
Accrued Interest Receivable | 10,010 | 9,186 |
Financial Liabilities: | ||
Deposits | 3,171,333 | 2,931,215 |
Federal Funds Purchased | 86,000 | |
FHLB Advances | 55,687 | 42,515 |
Subordinated Debentures | 90,857 | 97,700 |
Accrued Interest Payable | 1,393 | 1,409 |
Estimated Fair Value | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 15,144 | 7,356 |
Estimated Fair Value | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 12,586 | 2,358 |
Financial Liabilities: | ||
Interest Rate Swaps | $ 5,099 | $ 1,567 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jul. 26, 2022 $ / shares |
Series A Preferred Stock | |
Subsequent Events | |
Dividend per share | $ 36.72 |
Preferred Stock, dividend rate (as a percent) | 5.875% |
Depositary Shares | |
Subsequent Events | |
Dividend per share | $ 0.3672 |