Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Document Quarterly Report | true | |
Entity File Number | 001-35489 | |
Entity Registrant Name | Howard Bancorp Inc | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-3735949 | |
Entity Address, Address Line One | 3301 Boston Street | |
Entity Address, City or Town | Baltimore | |
Entity Address, Country | MD | |
Entity Address, Postal Zip Code | 21224 | |
City Area Code | 410 | |
Local Phone Number | 750-0020 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,813,210 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001390162 | |
Current Fiscal Year End Date | --12-31 | |
Trading Symbol | HBMD | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 12,592 | $ 9,415 |
Interest-bearing deposits with banks | 51,065 | 65,204 |
Total cash and cash equivalents | 63,657 | 74,619 |
Securities available for sale, at fair value | 347,448 | 375,397 |
Securities held to maturity, at amortized cost | 4,000 | 7,250 |
Nonmarketable equity securities | 9,219 | 10,637 |
Loans and leases, net of unearned income | 1,903,255 | 1,865,961 |
Allowance for loan and lease losses | (18,353) | (19,162) |
Net loans and leases | 1,884,902 | 1,846,799 |
Bank premises and equipment, net | 39,910 | 41,142 |
Goodwill | 31,449 | 31,449 |
Core deposit intangible | 4,015 | 5,795 |
Bank owned life insurance | 78,863 | 77,597 |
Other real estate owned | 334 | 743 |
Deferred tax assets, net | 29,201 | 31,254 |
Interest receivable and other assets | 34,260 | 35,309 |
Total assets | 2,527,258 | 2,537,991 |
LIABILITIES | ||
Noninterest-bearing deposits | 783,326 | 676,801 |
Interest-bearing deposits | 1,158,092 | 1,298,613 |
Total deposits | 1,941,418 | 1,975,414 |
FHLB advances | 212,000 | 200,000 |
Customer repurchase agreements and other borrowings | 13,485 | 13,634 |
Subordinated debt | 28,739 | 28,437 |
Total borrowings | 254,224 | 242,071 |
Accrued expenses and other liabilities | 23,439 | 25,874 |
Total liabilities | 2,219,081 | 2,243,359 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock - par value of $0.01 authorized 20,000,000 shares; issued and outstanding 18,811,876 shares at September 30, 2021 and 18,744,710 at December 31, 2020 | 188 | 187 |
Capital surplus | 271,512 | 270,591 |
Retained earnings | 38,185 | 18,167 |
Accumulated other comprehensive (loss) income | (1,708) | 5,687 |
Total stockholders' equity | 308,177 | 294,632 |
Total liabilities and stockholders' equity | $ 2,527,258 | $ 2,537,991 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 18,811,876 | 18,744,710 |
Common stock, shares outstanding | 18,811,876 | 18,744,710 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans and leases | $ 19,532 | $ 19,124 | $ 58,902 | $ 58,642 |
Interest and dividends on securities | 1,582 | 1,819 | 4,817 | 5,568 |
Other interest income | 27 | 8 | 39 | 441 |
Total interest income | 21,141 | 20,951 | 63,758 | 64,651 |
INTEREST EXPENSE | ||||
Deposits | 363 | 1,714 | 1,433 | 7,307 |
FHLB advances | 444 | 483 | 1,328 | 2,015 |
Customer repurchase agreements and other borrowings | 1 | 35 | 3 | 52 |
Subordinated debt | 446 | 447 | 1,337 | 1,360 |
Total interest expense | 1,254 | 2,679 | 4,101 | 10,734 |
NET INTEREST INCOME | 19,887 | 18,272 | 59,657 | 53,917 |
Provision for credit losses | 0 | 1,700 | 1,000 | 8,145 |
Net interest income after provision for credit losses | 19,887 | 16,572 | 58,657 | 45,772 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 719 | 506 | 1,912 | 1,581 |
Realized and unrealized gains on mortgage banking activity | 0 | 0 | 0 | 1,036 |
Gain on the sale of securities | 0 | 0 | 0 | 3,044 |
Income from bank owned life insurance | 421 | 441 | 1,266 | 1,327 |
Loan related fees and service charges | 225 | 365 | 793 | 1,120 |
Other operating income | 779 | 777 | 2,595 | 2,106 |
Total noninterest income | 2,144 | 2,089 | 6,566 | 10,214 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 6,748 | 7,136 | 20,813 | 21,836 |
Occupancy and equipment | 1,229 | 1,301 | 3,872 | 3,576 |
Marketing and business development | 433 | 189 | 1,071 | 1,092 |
Professional fees | 605 | 823 | 2,148 | 2,183 |
Data processing fees | 933 | 897 | 2,799 | 2,673 |
FDIC assessment | 152 | 358 | 618 | 780 |
Other real estate owned | 87 | 115 | 127 | 461 |
Loan production expense | 219 | 247 | 554 | 907 |
Amortization of core deposit intangible | 571 | 659 | 1,780 | 2,038 |
Merger-related expense | 880 | 0 | 880 | 0 |
Goodwill impairment | 0 | 0 | 0 | 34,500 |
Other operating expense | 1,458 | 984 | 3,292 | 4,850 |
Total noninterest expense | 13,315 | 12,709 | 37,954 | 74,896 |
INCOME (LOSS) BEFORE INCOME TAXES | 8,716 | 5,952 | 27,269 | (18,910) |
Income tax expense | 2,356 | 1,348 | 7,251 | 2,552 |
NET INCOME (LOSS) | $ 6,360 | $ 4,604 | $ 20,018 | $ (21,462) |
NET INCOME (LOSS) PER COMMON SHARE | ||||
Basic | $ 0.34 | $ 0.25 | $ 1.07 | $ (1.14) |
Diluted | $ 0.34 | $ 0.25 | $ 1.06 | $ (1.14) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ 6,360 | $ 4,604 | $ 20,018 | $ (21,462) |
Other comprehensive income (loss) Investments available for sale: | ||||
Reclassification adjustment for realized gain | 0 | 0 | 0 | (3,044) |
Related income tax | 0 | 0 | 0 | 838 |
Unrealized holding (losses) gains | (2,568) | 1,691 | (10,142) | 6,532 |
Related income tax benefit (expense) | 696 | (465) | 2,747 | (1,798) |
Comprehensive income (loss) | $ 4,488 | $ 5,830 | $ 12,623 | $ (18,934) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total |
Balance at Dec. 31, 2019 | $ 191,000 | $ 276,156,000 | $ 35,158,000 | $ 2,643,000 | $ 314,148,000 |
Balance (in shares) at Dec. 31, 2019 | 19,066,913 | ||||
Net income (loss) | $ 0 | 0 | (21,462,000) | 0 | (21,462,000) |
Other comprehensive income | 0 | 0 | 0 | 2,529,000 | 2,529,000 |
Director stock awards | $ 0 | 275,000 | 0 | 0 | 275,000 |
Director stock awards (in shares) | 22,616 | ||||
Employee stock purchase plan | $ 0 | 303,000 | 0 | 0 | 303,000 |
Employee stock purchase plan (in shares) | 22,749 | ||||
Repurchased shares | $ (4,000) | (6,673,000) | 0 | 0 | (6,677,000) |
Repurchased shares (in shares) | (372,801) | ||||
Stock-based compensation expense | $ 0 | 386,000 | 0 | 0 | 386,000 |
Stock-based compensation expense(in Shares) | 0 | ||||
Vested restricted stock units, net of shares withheld for taxes | $ 0 | (2,000) | 0 | 0 | (2,000) |
Vested restricted stock units, net of shares withheld for taxes ( in shares) | 2,823 | ||||
Balance at Sep. 30, 2020 | $ 187,000 | 270,445,000 | 13,696,000 | 5,172,000 | 289,500,000 |
Balance (in shares) at Sep. 30, 2020 | 18,742,300 | ||||
Balance at Jun. 30, 2020 | $ 187,000 | 270,056,000 | 9,092,000 | 3,946,000 | 283,281,000 |
Balance (in shares) at Jun. 30, 2020 | 18,715,678 | ||||
Net income (loss) | $ 0 | 0 | 4,604,000 | 0 | 4,604,000 |
Other comprehensive income | 0 | 0 | 0 | 1,226,000 | 1,226,000 |
Director stock awards | $ 0 | 138,000 | 0 | 0 | 138,000 |
Director stock awards (in shares) | 14,465 | ||||
Employee stock purchase plan | $ 0 | 108,000 | 0 | 0 | 108,000 |
Employee stock purchase plan (in shares) | 10,168 | ||||
Stock-based compensation expense | $ 0 | 145,000 | 0 | 0 | 145,000 |
Vested restricted stock units, net of shares withheld for taxes | $ 0 | (2,000) | 0 | 0 | (2,000) |
Vested restricted stock units, net of shares withheld for taxes ( in shares) | 1,989 | ||||
Balance at Sep. 30, 2020 | $ 187,000 | 270,445,000 | 13,696,000 | 5,172,000 | 289,500,000 |
Balance (in shares) at Sep. 30, 2020 | 18,742,300 | ||||
Balance at Dec. 31, 2020 | $ 187,000 | 270,591,000 | 18,167,000 | 5,687,000 | 294,632,000 |
Balance (in shares) at Dec. 31, 2020 | 18,744,710 | ||||
Net income (loss) | $ 0 | 0 | 20,018,000 | 0 | 20,018,000 |
Other comprehensive income | 0 | 0 | 0 | (7,395,000) | (7,395,000) |
Director stock awards | $ 0 | 287,000 | 0 | 0 | 287,000 |
Director stock awards (in shares) | 19,393 | ||||
Employee stock purchase plan | $ 1,000 | 212,000 | 0 | 0 | 213,000 |
Employee stock purchase plan (in shares) | 19,602 | ||||
Stock-based compensation expense | $ 0 | 507,000 | 0 | 0 | 507,000 |
Stock-based compensation expense(in Shares) | 0 | ||||
Vested restricted stock units, net of shares withheld for taxes | $ 0 | (85,000) | 0 | 0 | (85,000) |
Vested restricted stock units, net of shares withheld for taxes ( in shares) | 28,171 | ||||
Balance at Sep. 30, 2021 | $ 188,000 | 271,512,000 | 38,185,000 | (1,708,000) | 308,177,000 |
Balance (in shares) at Sep. 30, 2021 | 18,811,876 | ||||
Balance at Jun. 30, 2021 | $ 188,000 | 271,086,000 | 31,825,000 | 164,000 | 303,263,000 |
Balance (in shares) at Jun. 30, 2021 | 18,794,586 | ||||
Net income (loss) | $ 0 | 0 | 6,360,000 | 0 | 6,360,000 |
Other comprehensive income | 0 | 0 | 0 | (1,872,000) | (1,872,000) |
Director stock awards | $ 0 | 137,000 | 0 | 0 | 137,000 |
Director stock awards (in shares) | 6,985 | ||||
Employee stock purchase plan | $ 0 | 104,000 | 0 | 0 | 104,000 |
Employee stock purchase plan (in shares) | 9,015 | ||||
Stock-based compensation expense | $ 0 | 185,000 | 0 | 0 | 185,000 |
Stock-based compensation expense(in Shares) | 0 | ||||
Vested restricted stock units, net of shares withheld for taxes | $ 0 | 0 | 0 | 0 | 0 |
Vested restricted stock units, net of shares withheld for taxes ( in shares) | 1,290 | ||||
Balance at Sep. 30, 2021 | $ 188,000 | $ 271,512,000 | $ 38,185,000 | $ (1,708,000) | $ 308,177,000 |
Balance (in shares) at Sep. 30, 2021 | 18,811,876 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 20,018 | $ (21,462) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Provision for credit losses | 1,000 | 8,145 |
Deferred income tax | 4,801 | 363 |
Provision for other real estate owned | 38 | 257 |
Depreciation and amortization | 1,972 | 1,713 |
Stock-based compensation | 709 | 659 |
Net accretion of discount on purchased loans | (1,228) | (999) |
Gain on sale of securities | 0 | (3,044) |
Net amortization of intangible asset | 1,780 | 2,038 |
Goodwill impairment | 0 | 34,500 |
Loans originated for sale | 0 | (79,847) |
Proceeds from sale of loans originated for sale | 0 | 111,593 |
Realized and unrealized gains on mortgage banking activity | 0 | (1,036) |
Loss on sale of other real estate owned, net | 66 | 109 |
Increase in cash surrender value of bank owned life insurance | (1,266) | (1,327) |
Decrease in interest receivable and other assets | 2,468 | 2,619 |
Decrease in accrued expenses and other liabilities | (2,435) | (1,664) |
Other, net | 53 | 51 |
Net cash provided by operating activities | 27,976 | 52,668 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investment securities | (54,628) | (303,517) |
Proceeds from sales, maturities and calls of investment securities | 75,632 | 145,488 |
Net increase in loans and leases outstanding | (37,876) | (138,512) |
Proceeds from the sale of other real estate owned | 304 | 1,629 |
Purchase of premises and equipment | (438) | (386) |
Proceeds from the sale of premises and equipment | 0 | 743 |
Net cash used in investing activities | (17,006) | (294,555) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net (decrease) increase in deposits | (33,996) | 258,373 |
Net (decrease) increase in customer repurchase agreements and other borrowings | (149) | 35,493 |
Net increase (decrease) in FHLB advances | 12,000 | (85,000) |
Proceeds from issuance of common stock, net of cost | 213 | 303 |
Repurchase of common stock | 0 | (6,677) |
Net cash (used in) provided by financing activities | (21,932) | 202,492 |
Net decrease in cash and cash equivalents | (10,962) | (39,395) |
Cash and cash equivalents at beginning of period | 74,619 | 109,977 |
Cash and cash equivalents at end of period | 63,657 | 70,582 |
SUPPLEMENTAL INFORMATION | ||
Cash payments for interest | 3,829 | 10,459 |
Cash payments for income taxes | 4,012 | 3,935 |
Transferred from loans to other real estate owned | 0 | 51 |
Cash payments for operating leases | 546 | 665 |
Lease liabilities arising from obtaining right of use assets (see Note 7) | $ 0 | $ 2,011 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Nature of Operations Howard Bancorp, Inc. (“Bancorp” or the “Company”) was incorporated in April 2005 under the laws of the State of Maryland. On December 15, 2005, Bancorp acquired all of the stock of Howard Bank (the “Bank”) pursuant to the Plan of Reorganization approved by the stockholders of the Bank and by federal and state regulatory agencies. Each share of the Bank’s common stock was converted into two shares of Bancorp common stock effected by the filing of Articles of Exchange on that date, and the stockholders of the Bank became the stockholders of Bancorp. Bancorp is now a bank holding company registered under the Bank Holding Company Act of 1956, with a single bank subsidiary, Howard Bank, which operates as a state trust company with commercial banking powers regulated by the Maryland Office of the Commissioner of Financial Regulation (the “Commissioner”). The Bank has nine subsidiaries; six were formed to hold foreclosed real estate (three of which are currently inactive), two own and manage real estate used for corporate purposes, and one holds historic tax credit investments. The Company is a diversified financial services company providing commercial banking and consumer finance through banking branches, the internet and other distribution channels to businesses, business owners, professionals and other consumers located primarily in the Greater Baltimore – Washington Metropolitan Area. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2020 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2021. There have been no significant changes to the Company’s accounting policies as disclosed in the 2020 Annual Report on Form 10-K. The following is a description of the Company’s significant accounting policies. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. The Company has one reportable segment, “Community Banking.” Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of Bancorp, the Bank and the Bank’s subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses, the valuation of goodwill and deferred tax assets, and other-than-temporary impairment of investment securities. Allowance for Loan and Lease Losses The allowance for loan and lease losses (the “allowance”) is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the loan and lease portfolio and is based on the size and current risk characteristics of the loan and lease portfolio, an assessment of individual problem loans and leases, actual loss experience, current economic events in specific industries and geographic areas including unemployment levels and other pertinent factors including general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans and leases, estimated losses on pools of homogenous loans and leases based on historical loss experience and consideration of economic trends, all of which may be susceptible to significant change. Loan and lease losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance consists of a specific component and a nonspecific component. The components of the allowance represent an estimation performed pursuant to either the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 450 Contingencies or ASC Topic 310 Receivables . The specific component of the allowance reflects estimated incurred losses resulting from an analysis developed through credit allocations for individual loans and leases. The credit allocations are based on a regular analysis of all loans and leases over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. The nonspecific portion of the allowance is determined based on management’s assessment of general economic conditions, as well as economic factors in the individual markets in which the Company operates including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. This determination inherently involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in the Bank’s historical loss factors used to determine the nonspecific component of the allowance, and it recognizes that knowledge of the portfolio may be incomplete. The Bank’s historic loss factors are based upon actual losses incurred by portfolio segment over the preceding 24-month period. In portfolio segments where no actual losses have been incurred within the most recent 24-month period, industry loss data for that portfolio segment, as provided by the Federal Deposit Insurance Corporation (“FDIC”), are utilized. In addition to historic loss factors, the Bank’s methodology for the allowance incorporates other risk factors that may be inherent within the portfolio segments. For each portfolio segment, in addition to the historic loss experience, the qualitative factors that are measured and monitored in the overall determination of the allowance include: ● changes in lending policies, procedures, and practices; ● changes in international, national, state and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; ● changes in the nature and volume of the loan portfolio; ● changes in the experience, ability and depth of the lending staff; ● changes in the volume and severity of past due, nonaccrual, and adversely classified loans; ● changes in the quality of our loan review system; ● changes in the value of underlying collateral for collateral-dependent loans; ● the existence of any concentrations of credit, and changes in the level of such concentrations; ● the effect of other external factors such as competition and legal and regulatory requirements; and ● any other factors that management considers relevant to the quality or performance of the loan portfolio. Each of these qualitative risk factors is measured based upon data generated either internally, or in the case of economic conditions utilizing independently provided data on items such as unemployment rates, commercial real estate vacancy rates, or other market data deemed relevant to the business conditions within the markets served. The Company’s credit policies state that after all collection efforts have been exhausted, and the loan or lease is deemed to be a loss, then the remaining loan or lease balance will be charged to the Company’s established allowance. All loans and leases are evaluated for loss potential once it has been determined by the Watch Committee that the likelihood of repayment is in doubt. When a loan is past due for at least 90 days or a deterioration in debt service coverage ratio, guarantor liquidity, or loan-to-value ratio has occurred that would cause concern regarding the likelihood of the full repayment of principal and interest, and the loan or lease is deemed not to be well secured, the loan or lease would be moved to nonaccrual status and a specific reserve is established if the net realizable value is less than the principal value of the loan balance(s). Once the actual loss value has been determined, a charge-off against the allowance for the amount of the loss is taken. Each loss is evaluated on its specific facts regarding the appropriate timing to recognize the loss. Goodwill, Other Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination. The core deposit intangible is amortized over the estimated useful lives of the long-term deposits acquired, and the remaining amounts of the core deposit intangible are periodically reviewed for impairment. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. Long-lived assets are those that provide the Company with a future economic benefit beyond the current year or operating period. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is greater than the fair value of the asset. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell. Effective April 1, 2020, the Company adopted the FASB’s Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Management has determined that the Company has one reporting unit. The sudden and continuing decline in economic conditions triggered by the Coronavirus (“COVID-19”) pandemic in the first half of 2020 included a significant decline in stock market valuations and the stock price of the Company and peer banks. These events indicated that goodwill may be impaired and resulted in the Company performing a goodwill impairment assessment. Based on this assessment, the Company's estimated fair value was less than its book value, resulting in a goodwill impairment charge of $34.5 million recorded in the quarter ended June 30, 2020. Based on the annual impairment analysis, performed in the fourth quarter of 2020, the Company determined that there was not an impairment of the carrying value of either the goodwill or core deposit intangible at December 31, 2020. The Company is not aware of any events or circumstances since the completion of the annual impairment analysis that would impact the carrying value of either the goodwill or core deposit intangible at September 30, 2021. Income Taxes The Company uses the asset/liability method of accounting for income taxes. Under the asset/liability method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities (i.e., temporary differences) and are measured at the enacted rates that will be in effect when these differences reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In addition, deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes in other noninterest expenses. The Company remains subject to examination by federal and state taxing authorities for income tax returns for the years ending after December 31, 2016. Reclassifications Certain reclassifications have been made to previously reported amounts, as necessary, to conform to the current period presentation. These reclassifications did not affect previously reported net income or total stockholders’ equity. Recent Accounting Pronouncements The FASB has issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In addition, the FASB has issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The FASB has issued ASU 2016-13, Financial Instruments—Loan Losses (Topic 326) In addition, the FASB has issued ASU 2019-10 , Financial Instruments – Credit losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Investment Securities | Note 2: Investment Securities The Bank holds securities classified as available for sale and held to maturity. The amortized cost and estimated fair values of investments at the dates indicated are presented in the following table: (in thousands) September 30, 2021 December 31, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available for sale U.S. Government Agencies $ 41,245 $ 719 $ 41 $ 41,923 $ 48,297 $ 1,308 $ — $ 49,605 Mortgage-backed 299,536 2,118 5,397 296,257 310,289 6,429 46 316,672 Other investments 9,007 268 7 9,268 9,008 124 12 9,120 $ 349,788 $ 3,105 $ 5,445 $ 347,448 $ 367,594 $ 7,861 $ 58 $ 375,397 Held to maturity Corporate debentures $ 4,000 $ 59 $ — $ 4,059 $ 7,250 $ 17 $ 32 $ 7,235 Gross unrealized losses and fair value by investment category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020 are presented in the following tables: September 30, 2021 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ 7,459 $ 41 $ — $ — $ 7,459 $ 41 Mortgage-backed 255,058 5,325 2,112 72 257,170 5,397 Other investments — — 3,000 7 3,000 7 $ 262,517 $ 5,366 $ 5,112 $ 79 $ 267,629 $ 5,445 Held to maturity Corporate debentures $ — $ — $ — $ — $ — $ — December 31, 2020 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale Mortgage-backed $ 21,572 $ 46 $ — $ — $ 21,572 $ 46 Other investments 1,496 4 3,000 8 4,496 12 $ 23,068 $ 50 $ 3,000 $ 8 $ 26,068 $ 58 Held to maturity Corporate debentures $ 3,468 $ 32 $ — $ — $ 3,468 $ 32 The unrealized losses that existed were a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include: (1) the duration and magnitude of the decline in value; (2) the financial condition of the issuer or issuers; and (3) the structure of the security. The number of securities in the portfolio with unrealized losses totaled 63 and 11 at September 30, 2021 and December 31, 2020, respectively. An impairment loss is recognized in earnings if any of the following are true: (1) the Company intends to sell the debt security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Company intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as a component of other comprehensive income, net of deferred tax. The amortized cost and estimated fair values of investment securities, by contractual maturity, at the dates indicated are presented in the following table. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties. (in thousands) September 30, 2021 December 31, 2020 Amortized Estimated Fair Amortized Estimated Fair Cost Value Cost Value Amounts maturing: One year or less $ 4,014 $ 4,085 $ 4,017 $ 4,062 After one through five years 22,617 23,399 21,723 22,914 After five through ten years 25,736 26,283 37,820 38,453 After ten years 301,421 297,740 311,284 317,203 $ 353,788 $ 351,507 $ 374,844 $ 382,632 At September 30, 2021 and December 31, 2020, securities with a fair value of $230.7 million and $226.2 million, respectively, were pledged as collateral. These securities were pledged at the Federal Reserve Bank of Richmond (“FRB”) Discount Window as well as for repurchase agreements and deposits of local government entities that require pledged collateral as a condition of maintaining these deposit accounts. No single issuer of securities, except for government agency and mortgage backed securities, had outstanding balances that exceeded ten percent of stockholders’ equity at September 30, 2021. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Leases | |
Loans and Leases | Note 3: Loans and Leases The Company makes loans and leases to customers primarily in the Greater Baltimore - Washington Metropolitan Area, and surrounding communities. A substantial portion of the Company’s loan portfolio consists of loans to businesses secured by real estate and/or other business assets. The loan and lease portfolio segment balances at the dates indicated are presented in the following table: September 30, 2021 December 31, 2020 % of % of (in thousands) Total Total Total Total Real estate Construction and land $ 124,967 6.6 % $ 116,675 6.3 % Residential - first lien 434,273 22.8 380,865 20.4 Residential - junior lien 51,350 2.7 60,002 3.2 Total residential real estate 485,623 25.5 440,867 23.6 Commercial - owner occupied 254,093 13.4 251,061 13.5 Commercial - non-owner occupied 518,947 27.2 491,630 26.3 Total commercial real estate 773,040 40.6 742,691 39.8 Total real estate loans 1,383,630 72.7 1,300,233 69.7 Commercial loans and leases 1 351,618 18.5 334,086 17.9 Consumer 88,089 4.6 64,003 3.4 Paycheck Protection Program (PPP) 79,918 4.2 167,639 9.0 Total loans and leases $ 1,903,255 100.0 % $ 1,865,961 100.0 % 1 The Paycheck Protection Program (“PPP”) provided financial relief and funding opportunities for small businesses from approved Small Business Administration (“SBA”) lenders. In response to the COVID-19 pandemic, as an SBA lender, the Bank actively assisted its qualified customers with applications and lending through this program, as amended by subsequent legislation. During 2020, the Bank funded PPP loans with principal balances totaling $201.0 million of which $8.7 million in principal balances were still outstanding at September 30, 2021. From the relaunch of the program by the SBA on January 19, 2021 until the end of the program on May 31, 2021, the Bank funded additional PPP loans with principal balances totaling $100.5 million, of which $73.5 million in principal balances were still outstanding at September 30, 2021. PPP loans at September 30, 2021 totaled $79.9 million, consisting of $82.1 million in principal balances less $2.2 million of unaccreted net deferred loan fees. Loans funded through the PPP program are fully guaranteed by the U.S. government and the Company anticipates that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. Total loan and lease balances at September 30, 2021 and December 31, 2020 include net deferred loan fees or costs, including premiums on purchased loans. Net deferred loan costs, including premiums on purchased loans, were $2.8 million at September 30, 2021; this amount included the $2.2 million in net deferred loan fees attributable to PPP loans. Net deferred loan fees, including premiums on purchased loans, totaled $913 thousand at December 31, 2020; this amount included $3.2 million in net deferred fees attributable to PPP loans. |
Credit Quality Assessment
Credit Quality Assessment | 9 Months Ended |
Sep. 30, 2021 | |
Credit Quality Assessment | |
Credit Quality Assessment | Note 4: Credit Quality Assessment Allowance for Loan and Lease Losses Summary information on allowance for loan and lease losses activity for the periods indicated is presented in the following table: Nine Months Ended Three Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning balance $ 19,162 $ 10,401 $ 18,288 $ 16,356 Charge-offs (2,169) (814) (62) (200) Recoveries 360 245 127 121 Net (charge-offs) recoveries (1,809) (569) 65 (79) Provision for credit losses 1,000 7,825 — 1,380 Ending balance $ 18,353 $ 17,657 $ 18,353 $ 17,657 The September 30, 2021 allowance includes the Company’s quarterly reassessment of the impact of COVID-19 on the national and local economies and the impact on various categories of our loan portfolio. Management’s methodology, which is essentially unchanged since March 31, 2020, for the evaluation of COVID-19’s impact on the allowance, identified the following qualitative factors for further review: ● changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; ● the existence and effect of any concentrations of credit, and changes in the level of such concentrations; ● changes in the value of underlying collateral for collateral-dependent loans; and ● changes in the volume and severity of past due, nonaccrual, and adversely classified loans. The following table provides information on the activity in the allowance, by the respective loan and lease portfolio segments, for the nine and three months ended September 30, 2021 and 2020: At September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Allowance for loan and lease losses: Nine Months Ended: Beginning balance $ 1,349 $ 2,309 $ 832 $ 2,207 $ 7,156 $ 4,131 $ 1,178 $ — $ 19,162 Charge-offs — (615) (45) (1) — (1,388) (120) — (2,169) Recoveries — 130 16 8 25 169 12 — 360 Provision for credit losses 1 (136) 764 (403) (57) 472 305 55 — 1,000 Ending balance $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Three Months Ended: Beginning balance $ 1,102 $ 2,533 $ 476 $ 2,047 $ 7,614 $ 3,218 $ 1,298 $ — $ 18,288 Charge-offs — (55) — — — — (7) — (62) Recoveries — 1 6 — 10 102 8 — 127 Provision for credit losses 1 111 109 (82) 110 29 (103) (174) — — Ending balance $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Loans and leases: Ending balance $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 individually evaluated for impairment $ 242 $ 9,997 $ 1,544 $ 302 $ 3,298 $ 560 $ — $ — $ 15,943 collectively evaluated for impairment $ 124,725 $ 424,276 $ 49,806 $ 253,791 $ 515,649 $ 351,058 $ 88,089 $ 79,918 $ 1,887,312 At September 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Allowance for loan and lease losses: Nine Months Ended: Beginning balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ — $ 10,401 Charge-offs — (41) — — (37) (549) (187) — (814) Recoveries — 3 59 — — 181 2 — 245 Provision for credit losses 1 (62) 138 303 1,297 3,748 1,621 780 — 7,825 Ending balance $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Three Months Ended: Beginning balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Charge-offs — (8) — — (14) — (178) — (200) Recoveries — — 7 — — 114 — — 121 Provision for credit losses 1 (331) (350) (91) 279 1,103 186 584 — 1,380 Ending balance $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Loans and leases: Ending balance $ 104,361 $ 391,079 $ 62,728 $ 250,512 $ 471,753 $ 353,863 $ 53,734 $ 196,375 $ 1,884,405 individually evaluated for impairment $ 338 $ 12,361 $ 1,461 $ 793 $ 559 $ 1,489 $ — $ — $ 17,001 collectively evaluated for impairment $ 104,023 $ 378,718 $ 61,267 $ 249,719 $ 471,194 $ 352,374 $ 53,734 $ 196,375 $ 1,867,404 1 When potential losses are identified, a specific provision and/or charge-off may be taken, based on the likelihood of repayment, that is at least in the amount of the collateral deficiency, and any potential collection costs, as determined by an independent third party appraisal. Loans that are considered impaired are subject to the completion of an impairment analysis. This analysis highlights any potential collateral deficiencies. A specific amount of impairment is established based on the Bank’s calculation of the probable loss inherent in the individual loan. The actual occurrence and severity of losses involving impaired credits can differ substantially from estimates. Credit risk profile by portfolio segment, based upon internally assigned risk assignments, are presented below: September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Credit quality indicators: Not classified $ 124,725 $ 425,500 $ 49,806 $ 246,561 $ 506,728 $ 345,468 $ 88,089 $ 79,918 $ 1,866,795 Special mention — — — — 3,293 — — — 3,293 Substandard 242 8,773 1,544 7,532 8,926 6,150 — — 33,167 Doubtful — — — — — — — — — Total loans and leases $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 December 31, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Credit quality indicators: Not classified $ 116,094 $ 368,230 $ 58,752 $ 240,590 $ 482,324 $ 321,415 $ 64,003 $ 167,639 $ 1,819,047 Special mention — — — 4,364 8,778 9,083 — — 22,225 Substandard 581 12,635 1,250 6,107 528 3,588 — — 24,689 Doubtful — — — — — — — — — Total loans and leases $ 116,675 $ 380,865 $ 60,002 $ 251,061 $ 491,630 $ 334,086 $ 64,003 $ 167,639 $ 1,865,961 ● Special Mention - A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. ● Substandard - Substandard loans and leases are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful - Loans and leases classified Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loans and leases classified Special Mention, Substandard, and Doubtful are reviewed at least quarterly to determine their appropriate classification. All commercial credit relationships are reviewed annually. Non-classified residential mortgage loans and consumer loans are not evaluated unless a specific event occurs to raise the awareness of a possible credit deterioration. Credit risk profile by portfolio segment based upon internally assigned credit quality indicators are presented below: September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Analysis of past due loans and leases: Accruing loans and leases current $ 121,372 $ 424,831 $ 49,646 $ 252,710 $ 515,517 $ 350,940 $ 88,047 $ 79,918 $ 1,882,981 Accruing loans and leases past due: 30-59 days past due — — 145 — 132 120 36 — 433 60-89 days past due 3,353 638 15 1,081 — — 6 — 5,093 Greater than 90 days past due — 31 — — — — — — 31 Total past due 3,353 669 160 1,081 132 120 42 — 5,557 Non-accrual loans and leases 242 8,773 1,544 302 3,298 558 — — 14,717 Total loans and leases $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 December 31, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Analysis of past due loans and leases: Accruing loans and leases current $ 116,094 $ 363,486 $ 57,427 $ 250,562 $ 489,996 $ 330,987 $ 63,550 $ 167,639 $ 1,839,741 Accruing loans and leases past due: 30-59 days past due — 4,167 1,130 — 1,106 269 390 — 7,062 60-89 days past due — 543 195 — — 71 63 — 872 Greater than 90 days past due — 34 — 83 — 251 — — 368 Total past due — 4,744 1,325 83 1,106 591 453 — 8,302 Non-accrual loans and leases 581 12,635 1,250 416 528 2,508 — — 17,918 Total loans and leases $ 116,675 $ 380,865 $ 60,002 $ 251,061 $ 491,630 $ 334,086 $ 64,003 $ 167,639 $ 1,865,961 Total loans and leases either on nonaccrual status or in excess of 90 days delinquent totaled $14.7 million, or 0.8% of total loans and leases, at September 30, 2021, a $3.6 million decrease from $18.3 million, or 1.0% of total loans and leases, at December 31, 2020. The Company had no impaired leases or impaired PPP loans at September 30, 2021 and December 31, 2020. The impaired loans at September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment $ 242 $ 9,997 $ 1,544 $ 302 $ 3,298 $ 560 $ — $ 15,943 With an allowance recorded — — — — — — — — With no related allowance recorded 242 9,997 1,544 302 3,298 560 — 15,943 Related allowance — — — — — — — — Unpaid principal 415 10,470 1,724 301 3,305 748 — 16,963 Nine Months Ended: Average balance of impaired loans 650 11,285 2,056 319 3,108 902 — 18,320 Interest income recognized 6 252 58 11 7 1 — 335 Three Months Ended: Average balance of impaired loans 563 11,235 2,030 319 3,075 832 — 18,054 Interest income recognized 1 98 16 9 3 — — 127 December 31, 2020 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment $ 581 $ 13,789 $ 1,250 $ 416 $ 527 $ 2,882 $ — $ 19,445 With an allowance recorded — — — — — 1,286 — 1,286 With no related allowance recorded 581 13,789 1,250 416 527 1,596 — 18,159 Related allowance — — — — — 894 — 894 Unpaid principal 767 14,813 1,396 471 554 3,573 — 21,574 Average balance of impaired loans 911 15,799 1,562 478 591 4,147 — 23,488 Interest income recognized 9 366 59 2 14 109 — 559 Included in the total impaired loans above were nonaccrual loans of $14.7 million and $17.9 million at September 30, 2021 and December 31, 2020, respectively. Interest income that would have been recorded if nonaccrual loans had been current and performing in accordance with their original terms was $401 thousand and $466 thousand for the nine months ended September 30, 2021 and 2020, respectively. Loans may have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. Such restructured loans are considered impaired loans that may either be in accruing status or non-accruing status. Non-accruing restructured loans may return to accruing status provided there is a sufficient period of payment performance in accordance with the restructure terms. Loans may be removed from the restructured category in the year subsequent to the restructuring if they have performed based on all of the restructured loan terms. The Company had no leases or PPP loans that were troubled debt restructurings (“TDRs”) at September 30, 2021 and December 31, 2020. The TDR loans at September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 1 $ 80 4 $ 1,223 $ 1,303 Commercial loans and leases 1 224 1 2 226 2 $ 304 5 $ 1,225 $ 1,529 December 31, 2020 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 1 $ 84 3 $ 1,153 $ 1,237 Commercial loans and leases 1 414 2 359 773 2 $ 498 5 $ 1,512 $ 2,010 A summary of TDR modifications outstanding and performing under modified terms is as follows: September 30, 2021 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 80 $ 1,223 $ 1,303 Commercial loans and leases Extension or other modification — 224 2 226 Total troubled debt restructured loans $ — $ 304 $ 1,225 $ 1,529 December 31, 2020 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 84 $ 1,153 $ 1,237 Commercial loans and leases Extension or other modification — — 359 359 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 498 $ 1,512 $ 2,010 The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) provides financial institutions with relief from certain accounting and disclosure requirements under GAAP for certain loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs. In addition, before the CARES Act was enacted, federal banking regulators issued an interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. As of September 30, 2021, a total of $25.6 million of loans, representing 1.3% of total loans, were performing under some form of COVID-19 related deferral or other payment relief. Performing TDRs were in compliance with their modified terms and there are no further commitments associated with these loans. Included in nonaccrual loans at September 30, 2021 are two TDRs with a carrying balance totaling $304 thousand that were not performing in accordance with their modified terms, and the accrual of interest has ceased. In addition, there were five TDRs totaling $1.2 million that were performing in accordance with their modified terms at September 30, 2021. During the nine months ended September 30, 2021, the Company reported a new $104 thousand residential real estate TDR, downgraded to nonperforming a $237 thousand commercial loan TDR that previously had been performing in accordance with its modified terms, and fully charged-off a $413 thousand nonperforming commercial loan TDR. There were no new TDRs during the nine months ended September 30, 2020. At September 30, 2021 there were four loans secured by residential real estate first liens totaling $1.9 million and one construction loan for $243 thousand in the process of foreclosure. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives and Hedging Activities | |
Derivatives and Hedging Activities | Note 5: Derivatives and Hedging Activities Non-designated Hedges of Interest Rate Risk The Company maintains interest rate swap contracts with customers that are classified as non-designated hedges and are not speculative in nature. These agreements are designed to effectively convert certain customer’s variable rate loans with the Company to fixed rate. These interest rate swaps are executed with loan customers to facilitate their respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. These interest rate swaps are simultaneously economically hedged by executing offsetting interest rate swaps with unrelated market counterparties to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swaps pay and receive interest based on a floating rate indexed to one month LIBOR plus a credit spread with payment being calculated on the notional amount. The interest rate swaps are settled with varying maturities. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting market counterparty swaps are recognized directly in earnings. The fair value of the interest rate swap derivatives are recorded in other assets and other liabilities. All changes in fair value are recorded through earnings as noninterest income. For the nine months ended September 30, 2021 and September 30, 2020, the Company recorded a net gain of $28 thousand and a net loss of $28 thousand, respectively related to the change in fair value of these interest rate swap derivatives. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Unaudited Condensed Consolidated Balance Sheet at September 30, 2021 and December 31, 2020: September 30, 2021 Balance Sheet Notional Estimated Fair Value (in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with customers Other assets and other liabilities $ 13,761 $ 623 $ — Matched interest rate swaps with market counterparty Other assets and other liabilities $ 13,761 $ — $ 611 December 31, 2020 Balance Sheet Notional Estimated Fair Value (in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with customers Other assets and other liabilities $ 14,087 $ 450 $ — Matched interest rate swaps with market counterparty Other assets and other liabilities $ 14,087 $ — $ 466 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 6: Goodwill and Other Intangible Assets Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Bank has one reporting unit, which is community banking. The Company performs its annual impairment evaluation in the fourth quarter. The table below presents goodwill activity for the periods indicated: Nine Months Ended Year Ended (in thousands) September 30, 2021 December 31, 2020 Balance at January 1 $ 31,449 $ 65,949 Goodwill impairment — (34,500) Balance at end of period $ 31,449 $ 31,449 Due to the COVID-19 pandemic and the related economic fallout in the first half of 2020, including most specifically, declining stock prices at both the Company and peer banks, the Federal Reserve’s significant reduction in interest rates, and other business and market considerations, the Company performed an interim goodwill impairment analysis as of June 30, 2020. Based on this analysis, the estimated fair value of the Company was less than book value, resulting in a $34.5 million impairment charge, recorded in noninterest expense, in the second quarter of 2020. This was a non-cash charge to earnings and had no impact on the Company’s regulatory capital ratios, cash flows, or liquidity position. Other intangible assets consist of core deposit intangibles, which represent the estimated value of long-term deposit relationships acquired in either business combinations or other purchases of deposits and are amortized based upon the estimated economic benefits received. The gross carrying amount and accumulated amortization of core deposit intangibles at the dates indicated were as follows: Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) September 30, 2021 $ 16,135 $ 12,120 $ 4,015 2.0 December 31, 2020 $ 16,135 $ 10,340 $ 5,795 2.7 Estimated future amortization expense for core deposit intangibles is as follows: (in thousands) Remainder of 2021 $ 546 2022 1,915 2023 1,298 2024 256 Total future amortization expense $ 4,015 Based on the annual impairment analysis, the Company determined that there was not an impairment of the carrying value of either the goodwill or core deposit intangible at December 31, 2020. The Company is not aware of any events or circumstances since the completion of the annual impairment analysis that would impact the carrying value of either the goodwill or core deposit intangible at September 30, 2021. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2021 | |
Operating Leases | |
Operating Leases | Note 7: Operating Leases The Company has operating leases on land and buildings with remaining lease terms ranging from 2021 to 2030. Many of the leases include renewal options, with renewal terms generally extending up to 10 years. Operating lease right-of-use (“ROU”) assets and lease liabilities at the dates indicated were as follows: (in thousands) September 30, 2021 December 31, 2020 Operating lease ROU assets $ 12,195 $ 13,229 Operating lease liabilities $ 13,173 $ 14,267 The components of lease expense for the periods indicated were as follows: Nine Months Ended September 30, Three Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease cost $ 1,170 $ 1,196 $ 419 $ 412 Rental income (304) (232) (102) (68) Sublease income (320) (299) (89) (119) Amortization of ROU assets 16 108 (5) 31 Total lease expense $ 562 $ 773 $ 223 $ 256 The maturities of the Company’s lease liabilities at September 30, 2021 were as follows: (in thousands) Remainder of 2021 $ 390 2022 1,436 2023 1,209 2024 1,078 2025 955 Thereafter 11,841 Total future lease payments $ 16,909 Discount of cash flows (3,736) Present value on net future lease payments $ 13,173 Weighted average remaining term in years 5.05 Weighted average discount rate 2.94 % The Company from time to time subleases its vacant locations. Operating sublease income is recognized as a component of noninterest expense on a straight-line basis over the sublease term. Lease terms range from one The following table details the future minimum operating sublease payments to be received at September 30, 2021: (in thousands) Remainder of 2021 $ 77 2022 135 2023 135 2024 135 2025 135 Thereafter 191 Total future sublease payments 808 Less: amount representing interest (73) Total net future sublease payments $ 735 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Deposits | Note 8: Deposits The following table details the composition of deposits and the related percentage mix of total deposits, respectively, at the dates indicated: September 30, 2021 December 31, 2020 % of % of (in thousands) Amount Total Amount Total Noninterest-bearing demand $ 783,326 40.4 % $ 676,801 34.2 % Interest-bearing checking 206,165 10.6 214,717 11.1 Money market accounts 435,386 22.4 439,510 22.2 Savings 178,915 9.2 159,914 8.1 Certificates of deposit $250 and over 35,539 1.8 51,918 2.6 Certificates of deposit under $250 302,087 15.6 432,554 21.8 Total deposits $ 1,941,418 100.0 % $ 1,975,414 100.0 % |
Stock Options and Stock Awards
Stock Options and Stock Awards | 9 Months Ended |
Sep. 30, 2021 | |
Stock Options and Stock Awards | |
Stock Options and Stock Awards | Note 9: Stock Options and Stock Awards Bancorp’s equity incentive plan provides for awards of nonqualified and incentive stock options as well as vested and non-vested common stock awards. As of September 30, 2021, 282,615 shares are available for issuance pursuant to future grants under our stock incentive plan. Employee stock options can be granted with exercise prices at the fair market value (as defined within the plan) of the stock at the date of grant and with terms of up to ten years and typically vest over a three to five year period. Except as otherwise permitted in the plan, upon termination of employment, permanent disability or death, the option exercise period is reduced or the options are canceled. Stock awards may also be granted to non-employee members of the Company’s board of directors (the “Board of Directors” or “Board”) as compensation for attendance and participation at meetings of the Board of Directors and meetings of the various committees of the Board. During the nine months ended September 30, 2021 and 2020, the Company issued 19,393 and 22,616 shares of common stock, respectively, to directors as compensation for their service. Stock Options The fair value of Bancorp’s stock options granted as compensation is estimated on the measurement date, which, for the Company, is the date of grant. The fair value of stock options is calculated using the Black-Scholes option-pricing model under which the Company estimates expected market price volatility and expected term of the options based on historical data and other factors. There were no stock options granted in either 2021 or 2020. The following table summarizes Bancorp’s stock option activity and related information for the periods ended: September 30, 2021 December 31, 2020 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Balance at January 1, 25,000 $ 14.54 25,000 $ 14.54 Granted — — — — Exercised — — — — Forfeited — — — — Balance at period end 25,000 $ 14.54 25,000 $ 14.54 Exercisable at period end 16,671 $ 14.54 8,337 $ 14.54 Weighted average fair value of options granted during the year N/A N/A No cash was received from exercise of options for the nine months ended September 30, 2021 or 2020. The intrinsic value of a stock option is the amount that the market value of the underlying stock exceeds the exercise price of the option. Based upon a fair market value of $20.28 on September 30, 2021, the options outstanding had an aggregate intrinsic value of $144 thousand. At December 31, 2020, based upon a fair market value of $11.81, the options outstanding had no aggregate intrinsic value. The stock options outstanding as of September 30, 2021 have contractual terms that permit exercise of the options through 2029. At September 30, 2021, based on stock option awards outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested stock option awards was $16 thousand. Based upon the contractual terms, $12 thousand of this expense is expected to be recognized in the remainder of 2021 and $4 thousand in 2022. Restricted Stock Units (“RSU”) RSUs are equity awards where the recipient does not receive the stock immediately, but instead receives it according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each RSU that vests entitles the recipient to receive one share of the Company’s common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded RSUs until the recipient becomes the record holder of those shares. The valuation of the Company’s RSUs is the closing price per share of the Company’s common stock on the date of grant. The Company granted a total of 67,976 RSUs during the first nine months of 2021 consisting of 52,488 time-based RSUs which are subject to a three or five year vesting schedule, and 15,488 performance-based RSUs that cliff vest upon the attainment of pre-established corporate performance measures for the year 2023. During the first nine months of 2020, the Company granted a total of 164,383 RSUs, consisting of 137,119 time-based RSUs which are subject to a one, three or five year vesting schedule, and 27,264 performance-based RSUs that cliff vest upon the attainment of pre-established corporate performance measures over a three-year performance period. A summary of the activity for the Company’s RSUs for the periods indicated is presented in the following table: September 30, 2021 December 31, 2020 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Balance at January 1, 170,549 $ 14.61 11,032 $ 17.48 Granted 67,976 16.93 167,716 14.60 Vested (28,171) 14.24 (4,954) 18.44 Net settle for taxes (5,840) 15.88 (745) 17.50 Forfeited (4,600) 17.53 (2,500) 18.00 Balance at period end 199,914 $ 15.34 170,549 $ 14.61 At September 30, 2021, based on RSUs outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSUs was $2.2 million. Based upon the contractual terms, this expense is expected to be recognized as follows: (in thousands) Remainder of 2021 $ 174 2022 687 2023 593 2024 502 2025 157 2026 39 $ 2,152 Stock-Based Compensation Expense Stock-based compensation expense attributable to stock options and RSUs is based on their fair values on the measurement date, which, for the Company, is the date of the grant. This cost is then recognized in noninterest expense on a straight-line basis over the vesting period of the respective stock options and RSUs. No compensation expense was recognized in the three or nine month periods ended September 30, 2021 or in the year ended December 31, 2020 for performance-based RSUs, as the probability of achievement of the performance metrics was considered unlikely. Compensation expense for performance-based awards could be recognized in future periods if the probability of achieving the performance metrics becomes likely before the end of the three-year performance period. The amount that the Company recognized in stock-based compensation expense related to the issuance of stock options and RSUs as well as director compensation paid in stock is presented in the following table: Nine Months Ended Three Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Related to the issuance of restricted stock and RSUs $ 471 $ 348 $ 173 $ 131 Related to the issuance of stock options 36 36 12 12 Director compensation paid in stock 287 275 137 138 Total stock-based compensation expense $ 794 $ 659 $ 322 $ 281 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Net Income (Loss) per Common Share | |
Net Income (Loss) per Common Share | Note 10: Net Income (Loss) per Common Share The calculation of basic and diluted net income (loss) per common share for the nine and three months ended September 30, 2021 and 2020 are presented in the following table: Nine Months Ended Three Months Ended September 30 September 30 (dollars in thousands, except per share data) 2021 2020 2021 2020 Net income (loss) available to common stockholders (numerator) $ 20,018 $ (21,462) $ 6,360 $ 4,604 BASIC Basic average common shares outstanding (denominator) 18,787,571 18,773,036 18,807,395 18,736,749 Basic income (loss) per common share $ 1.07 $ (1.14) $ 0.34 $ 0.25 DILUTED Average common shares outstanding 18,787,571 18,773,036 18,807,395 18,736,749 Dilutive effect of common stock equivalents 84,383 — 88,171 — Diluted average common shares outstanding (denominator) 18,871,954 18,773,036 18,895,566 18,736,749 Diluted income (loss) per common share $ 1.06 $ (1.14) $ 0.34 $ 0.25 Common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share — 82,284 — — Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above — 25,000 — 194,883 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Matters | |
Regulatory Matters | Note 11: Regulatory Matters Actual regulatory capital amounts and ratios for Bancorp and the Bank at September 30, 2021 and December 31, 2020 are presented in the following table: To be well capitalized under FDICIA For capital prompt corrective Actual adequacy purposes (1) action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021: Total capital (to risk-weighted assets) Howard Bank $ 300,495 14.95 % $ 160,796 8.00 % $ 200,995 10.00 % Howard Bancorp $ 301,226 14.98 % $ 160,832 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 281,822 14.02 % $ 90,448 4.50 % $ 130,646 6.50 % Howard Bancorp $ 253,814 12.63 % $ 90,468 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 281,822 14.02 % $ 120,597 6.00 % $ 160,796 8.00 % Howard Bancorp $ 253,814 12.63 % $ 120,624 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 281,822 11.14 % $ 101,188 4.00 % $ 126,485 5.00 % Howard Bancorp $ 253,814 10.03 % $ 101,211 4.00 % N/A As of December 31, 2020: Total capital (to risk-weighted assets) Howard Bank $ 273,974 14.26 % $ 153,721 8.00 % $ 192,151 10.00 % Howard Bancorp $ 275,668 14.32 % $ 154,015 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 254,492 13.24 % $ 86,468 4.50 % $ 124,898 6.50 % Howard Bancorp $ 227,749 11.83 % $ 86,634 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 254,492 13.24 % $ 115,291 6.00 % $ 153,721 8.00 % Howard Bancorp $ 227,749 11.83 % $ 115,512 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 254,492 10.36 % $ 98,221 4.00 % $ 122,776 5.00 % Howard Bancorp $ 227,749 9.26 % $ 98,360 4.00 % N/A 1 Bancorp and the Bank met all capital adequacy requirements to which they are subject as of September 30, 2021 and December 31, 2020. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2021 | |
Litigation | |
Litigation | Note 12: Litigation In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal and regulatory actions and proceedings. The most significant of these is described below. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each matter may be. The Company establishes an accrued liability when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The Company thereafter continues to monitor such matters for further developments that could affect the amount of the accrued liability that has been previously established. Settled mortgage origination claim The Bank was notified of potential claims stemming from certain mortgages originated at First Mariner Bank prior to its merger into the Bank. While no lawsuit was filed with respect to such potential claims, the Bank engaged in confidential discussions related to the potential claims. Significant management judgment, which involves a variety of assumptions, estimates and known and unknown uncertainties, was required to assess whether a related loss resulting from these potential claims was probable and estimable, such that an accrued liability should be established. The Company accrued a total liability of $2.0 million ($1.0 million in both the second and fourth quarters of 2020) with respect to these potential claims in 2020. This potential litigation was formally settled for $2.0 million in January 2021, the amount of the Company’s accrued liability at December 31, 2020. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value | |
Fair Value | Note 13: Fair Value FASB ASC Topic 820 “ Fair Value Measurement The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Recurring Fair Value Measurements All classes of investment securities available for sale are recorded at fair value using an industry-wide valuation service. The service uses evaluated pricing models that vary based on asset class and include available trade, bid and other market information. Various methodologies include broker quotes, proprietary models, descriptive terms and conditions databases, and quality control programs. Therefore, these securities fall into Level 2 of the fair value hierarchy. For loans held for investment that were originally intended to be sold and previously included as loans held for sale, fair value is determined by discounting estimated cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The following table sets forth the Company’s financial assets and liabilities that were accounted or disclosed at fair value on a recurring basis at September 30, 2021 and December 31, 2020. September 30, 2021 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 41,923 $ — $ 41,923 $ — Mortgage-backed securities 296,257 — 296,257 — Other investments 9,268 — 9,268 — Loans held for investment 1,337 — 1,337 — Interest rate swap assets 623 — 623 — Liabilities Interest rate swap liabilities 611 — 611 — December 31, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 49,605 $ — $ 49,605 $ — Mortgage-backed securities 316,672 — 316,672 — Other investments 9,120 — 9,120 — Loans held for investment 2,949 — 2,949 — Interest rate swap assets 450 — 450 — Liabilities Interest rate swap liabilities 466 — 466 — The Company, while engaged in mortgage banking activities, had elected to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of these loans on the Company’s balance sheet. While the Company has exited its mortgage banking activities and no longer has loans held for sale, it is required to continue to measure at fair value those loans held for investment that were originally intended for sale, but instead were added to the Bank’s portfolio. The following table presents the carrying value and aggregate unpaid principal balances for loans held for investment, that are required to be measured at fair value on a recurring basis, at the dates presented: Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference September 30, 2021 $ 1,337 $ 1,375 $ (38) December 31, 2020 2,949 2,900 49 Non-recurring Fair Value Measurements Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or market value. Market value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of real estate collateral is determined based on appraisal by qualified licensed appraisers hired by the Company. The value of business equipment, inventory and accounts receivable collateral is based on the net book value on the business' financial statements and, if necessary, discounted based on management's review and analysis. Appraised and reported values may be discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. Other real estate owned acquired through, or in lieu of, foreclosure (“OREO”) are held for sale and are initially recorded at fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan and lease losses. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. There was a $38 thousand valuation loss recorded in the first nine months of 2021; a valuation loss of $257 thousand was recognized for the nine months ended September 30, 2020. These charges were for declines in the value of OREO subsequent to foreclosure. OREO is classified within Level 3 of the hierarchy. The following table sets forth the Company’s financial assets and liabilities that were accounted for or disclosed at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020: September 30, 2021 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 334 $ — $ — $ 334 Impaired loans: Construction and land — — — — Residential - first lien 6,087 — — 6,087 Residential - junior lien 1,069 — — 1,069 Commercial - owner occupied 302 — — 302 Commercial - non-owner occupied 338 — — 338 Commercial loans and leases 558 — — 558 Total impaired loans 8,354 8,354 December 31, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 743 $ — $ — $ 743 Impaired loans: Construction and land 581 — — 581 Residential - first lien 13,789 — — 13,789 Residential - junior lien 1,250 — — 1,250 Commercial - owner occupied 416 — — 416 Commercial - non-owner occupied 527 — — 527 Commercial loans and leases 1,988 — — 1,988 Total impaired loans 18,551 18,551 At September 30, 2021, OREO consisted of an outstanding balance of $941 thousand, less a valuation allowance of $607 thousand. At December 31, 2020, OREO consisted of an outstanding balance of $1.5 million, less a valuation allowance of $731 thousand. There was no specific allocation of the allowance for credit losses attributable to impaired loans at September 30, 2021 compared to $894 thousand at December 31, 2020. Various techniques are used to value OREO and impaired loans. For all loans where the underlying collateral is real estate, either construction, land, commercial, or residential, an independent appraisal is used to identify the value of the collateral. The approaches within the appraisal report include sales comparison, income, and replacement cost analysis. The resulting value will be adjusted by a selling cost of 9.5% and the residual value will be used to determine if there is an impairment. Commercial loans and leases and consumer loans utilize a liquidation approach to the impairment analysis. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are based on quoted market prices where available or calculated using present value techniques. Since quoted market prices are not available on many of our financial instruments, estimates may be based on the present value of estimated future cash flows and estimated discount rates. The following table presents the estimated fair value of the Company’s financial instruments at the dates indicated: September 30, 2021 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 347,448 $ 347,448 $ — $ 347,448 $ — Held to maturity securities 4,000 4,059 — — 4,059 Nonmarketable equity securities 9,219 9,219 — 9,219 — Loans held for investment 1,337 1,337 — 1,337 — Loans and leases 1 1,883,564 1,900,280 — — 1,900,280 Marketable equity securities 3,594 3,594 — 3,594 — Interest rate swap 623 623 — 623 — Financial Liabilities Deposits 1,941,418 1,941,072 — 1,941,072 — Customer repurchase agreements and other borrowings 13,485 13,485 — 13,485 — FHLB advances 212,000 214,881 — 214,881 — Subordinated debt 28,739 31,197 — 31,197 — Interest rate swap 611 611 — 611 — December 31, 2020 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 375,397 $ 375,397 $ — $ 375,397 $ — Held to maturity securities 7,250 7,235 — — 7,235 Nonmarketable equity securities 10,637 10,637 — 10,637 — Loans held for investment 2,949 2,949 — 2,949 — Loans and leases 1 1,843,850 1,854,049 — — 1,854,049 Marketable equity securities 4,006 4,006 — 4,006 — Interest rate swap 450 450 — 450 — Financial Liabilities Deposits 1,975,414 1,974,339 — 1,974,339 — Customer repurchase agreements and other borrowings 13,634 13,634 — 13,634 — FHLB advances 200,000 202,768 — 202,768 — Subordinated debt 28,437 30,692 — 30,692 — Interest rate swap 466 466 — 466 — 1 |
Exit of Mortgage Banking Activi
Exit of Mortgage Banking Activities | 9 Months Ended |
Sep. 30, 2021 | |
Exit of Mortgage Banking Activities | |
Exit of Mortgage Banking Activities | Note 14: Exit of Mortgage Banking Activities The Company completed the exit of its former mortgage banking activities in the quarter ended March 31, 2020. The following table presents a roll-forward of loans held for sale, showing loans originated for sale and loans sold into the secondary market, for the nine months ended September 30, 2020. In addition, the volume of loans originated for the Company’s loan portfolio as well as a statement of operations for the mortgage banking activities for the nine months ended September 30, 2020 is presented. Since the mortgage banking activities were conducted within a division of the Bank, formal financial statements were not prepared. The statement of operations presented below reflects only the direct costs associated with the Company’s mortgage banking activities and is thus representative of the incremental after tax impact of exiting this activity. For the Nine Months Ended September 30, (in thousands) 2021 2020 Loans held for sale, January 1 $ — $ 30,710 Loans originated for sale — 79,847 Loans sold into the secondary market — (110,557) Loans held for sale, at end of period $ — $ — Loans originated for the Bank's portfolio $ — $ 11,378 For the Nine Months Ended September 30, (in thousands) 2021 2020 Statement of Operations: Net interest income $ — $ 143 Realized and unrealized gains on mortgage banking activity — 1,036 Loan related fees and service charges — 389 Total noninterest income — 1,425 Salaries and benefits — 928 Occupancy — 20 All other operating expenses — 490 Total noninterest expense — 1,438 Pretax contribution — 130 Income tax expense (benefit) — 36 After tax contribution $ — $ 94 Since the Company exited its mortgage banking activities in the quarter ended March 31, 2020, there were no results of operations related to mortgage banking activities for the three and nine month periods ended September 30, 2021 or the three month period ended September 30, 2020. |
Pending Merger
Pending Merger | 9 Months Ended |
Sep. 30, 2021 | |
Pending Merger | |
Pending Merger | Note 15: Pending Merger On July 12, 2021, the Company and F.N.B. Corporation (“F.N.B.”), the parent company of First National Bank of Pennsylvania, entered into an Agreement and Plan of Merger, pursuant to which the Company will merge with and into F.N.B. As a result of the merger, the separate corporate existence of the Company will cease and F.N.B. will continue as the surviving corporation (the “Merger”). Immediately after the Merger is completed, the Bank will merge with and into First National Bank of Pennsylvania, a national association, with First National Bank of Pennsylvania being the surviving entity. The Merger, which remains subject to the approval of the Company’s stockholders and satisfaction of customary closing conditions, is expected to be completed in early 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Howard Bancorp, Inc. (“Bancorp” or the “Company”) was incorporated in April 2005 under the laws of the State of Maryland. On December 15, 2005, Bancorp acquired all of the stock of Howard Bank (the “Bank”) pursuant to the Plan of Reorganization approved by the stockholders of the Bank and by federal and state regulatory agencies. Each share of the Bank’s common stock was converted into two shares of Bancorp common stock effected by the filing of Articles of Exchange on that date, and the stockholders of the Bank became the stockholders of Bancorp. Bancorp is now a bank holding company registered under the Bank Holding Company Act of 1956, with a single bank subsidiary, Howard Bank, which operates as a state trust company with commercial banking powers regulated by the Maryland Office of the Commissioner of Financial Regulation (the “Commissioner”). The Bank has nine subsidiaries; six were formed to hold foreclosed real estate (three of which are currently inactive), two own and manage real estate used for corporate purposes, and one holds historic tax credit investments. The Company is a diversified financial services company providing commercial banking and consumer finance through banking branches, the internet and other distribution channels to businesses, business owners, professionals and other consumers located primarily in the Greater Baltimore – Washington Metropolitan Area. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2020 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2021. There have been no significant changes to the Company’s accounting policies as disclosed in the 2020 Annual Report on Form 10-K. The following is a description of the Company’s significant accounting policies. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. The Company has one reportable segment, “Community Banking.” |
Principles of Consolidation | Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of Bancorp, the Bank and the Bank’s subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses, the valuation of goodwill and deferred tax assets, and other-than-temporary impairment of investment securities. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses (the “allowance”) is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the loan and lease portfolio and is based on the size and current risk characteristics of the loan and lease portfolio, an assessment of individual problem loans and leases, actual loss experience, current economic events in specific industries and geographic areas including unemployment levels and other pertinent factors including general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans and leases, estimated losses on pools of homogenous loans and leases based on historical loss experience and consideration of economic trends, all of which may be susceptible to significant change. Loan and lease losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance consists of a specific component and a nonspecific component. The components of the allowance represent an estimation performed pursuant to either the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 450 Contingencies or ASC Topic 310 Receivables . The specific component of the allowance reflects estimated incurred losses resulting from an analysis developed through credit allocations for individual loans and leases. The credit allocations are based on a regular analysis of all loans and leases over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. The nonspecific portion of the allowance is determined based on management’s assessment of general economic conditions, as well as economic factors in the individual markets in which the Company operates including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. This determination inherently involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in the Bank’s historical loss factors used to determine the nonspecific component of the allowance, and it recognizes that knowledge of the portfolio may be incomplete. The Bank’s historic loss factors are based upon actual losses incurred by portfolio segment over the preceding 24-month period. In portfolio segments where no actual losses have been incurred within the most recent 24-month period, industry loss data for that portfolio segment, as provided by the Federal Deposit Insurance Corporation (“FDIC”), are utilized. In addition to historic loss factors, the Bank’s methodology for the allowance incorporates other risk factors that may be inherent within the portfolio segments. For each portfolio segment, in addition to the historic loss experience, the qualitative factors that are measured and monitored in the overall determination of the allowance include: ● changes in lending policies, procedures, and practices; ● changes in international, national, state and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; ● changes in the nature and volume of the loan portfolio; ● changes in the experience, ability and depth of the lending staff; ● changes in the volume and severity of past due, nonaccrual, and adversely classified loans; ● changes in the quality of our loan review system; ● changes in the value of underlying collateral for collateral-dependent loans; ● the existence of any concentrations of credit, and changes in the level of such concentrations; ● the effect of other external factors such as competition and legal and regulatory requirements; and ● any other factors that management considers relevant to the quality or performance of the loan portfolio. Each of these qualitative risk factors is measured based upon data generated either internally, or in the case of economic conditions utilizing independently provided data on items such as unemployment rates, commercial real estate vacancy rates, or other market data deemed relevant to the business conditions within the markets served. The Company’s credit policies state that after all collection efforts have been exhausted, and the loan or lease is deemed to be a loss, then the remaining loan or lease balance will be charged to the Company’s established allowance. All loans and leases are evaluated for loss potential once it has been determined by the Watch Committee that the likelihood of repayment is in doubt. When a loan is past due for at least 90 days or a deterioration in debt service coverage ratio, guarantor liquidity, or loan-to-value ratio has occurred that would cause concern regarding the likelihood of the full repayment of principal and interest, and the loan or lease is deemed not to be well secured, the loan or lease would be moved to nonaccrual status and a specific reserve is established if the net realizable value is less than the principal value of the loan balance(s). Once the actual loss value has been determined, a charge-off against the allowance for the amount of the loss is taken. Each loss is evaluated on its specific facts regarding the appropriate timing to recognize the loss. |
Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination. The core deposit intangible is amortized over the estimated useful lives of the long-term deposits acquired, and the remaining amounts of the core deposit intangible are periodically reviewed for impairment. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. Long-lived assets are those that provide the Company with a future economic benefit beyond the current year or operating period. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is greater than the fair value of the asset. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell. Effective April 1, 2020, the Company adopted the FASB’s Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Management has determined that the Company has one reporting unit. The sudden and continuing decline in economic conditions triggered by the Coronavirus (“COVID-19”) pandemic in the first half of 2020 included a significant decline in stock market valuations and the stock price of the Company and peer banks. These events indicated that goodwill may be impaired and resulted in the Company performing a goodwill impairment assessment. Based on this assessment, the Company's estimated fair value was less than its book value, resulting in a goodwill impairment charge of $34.5 million recorded in the quarter ended June 30, 2020. Based on the annual impairment analysis, performed in the fourth quarter of 2020, the Company determined that there was not an impairment of the carrying value of either the goodwill or core deposit intangible at December 31, 2020. The Company is not aware of any events or circumstances since the completion of the annual impairment analysis that would impact the carrying value of either the goodwill or core deposit intangible at September 30, 2021. |
Income Taxes | Income Taxes The Company uses the asset/liability method of accounting for income taxes. Under the asset/liability method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities (i.e., temporary differences) and are measured at the enacted rates that will be in effect when these differences reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In addition, deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes in other noninterest expenses. The Company remains subject to examination by federal and state taxing authorities for income tax returns for the years ending after December 31, 2016. |
Reclassifications | Reclassifications Certain reclassifications have been made to previously reported amounts, as necessary, to conform to the current period presentation. These reclassifications did not affect previously reported net income or total stockholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB has issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In addition, the FASB has issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The FASB has issued ASU 2016-13, Financial Instruments—Loan Losses (Topic 326) In addition, the FASB has issued ASU 2019-10 , Financial Instruments – Credit losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Schedule of available-for-sale securities and held-to-maturity | (in thousands) September 30, 2021 December 31, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available for sale U.S. Government Agencies $ 41,245 $ 719 $ 41 $ 41,923 $ 48,297 $ 1,308 $ — $ 49,605 Mortgage-backed 299,536 2,118 5,397 296,257 310,289 6,429 46 316,672 Other investments 9,007 268 7 9,268 9,008 124 12 9,120 $ 349,788 $ 3,105 $ 5,445 $ 347,448 $ 367,594 $ 7,861 $ 58 $ 375,397 Held to maturity Corporate debentures $ 4,000 $ 59 $ — $ 4,059 $ 7,250 $ 17 $ 32 $ 7,235 |
Schedule of unrealized loss on investments | September 30, 2021 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ 7,459 $ 41 $ — $ — $ 7,459 $ 41 Mortgage-backed 255,058 5,325 2,112 72 257,170 5,397 Other investments — — 3,000 7 3,000 7 $ 262,517 $ 5,366 $ 5,112 $ 79 $ 267,629 $ 5,445 Held to maturity Corporate debentures $ — $ — $ — $ — $ — $ — December 31, 2020 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale Mortgage-backed $ 21,572 $ 46 $ — $ — $ 21,572 $ 46 Other investments 1,496 4 3,000 8 4,496 12 $ 23,068 $ 50 $ 3,000 $ 8 $ 26,068 $ 58 Held to maturity Corporate debentures $ 3,468 $ 32 $ — $ — $ 3,468 $ 32 |
Schedule of investment securities by contractual maturity | (in thousands) September 30, 2021 December 31, 2020 Amortized Estimated Fair Amortized Estimated Fair Cost Value Cost Value Amounts maturing: One year or less $ 4,014 $ 4,085 $ 4,017 $ 4,062 After one through five years 22,617 23,399 21,723 22,914 After five through ten years 25,736 26,283 37,820 38,453 After ten years 301,421 297,740 311,284 317,203 $ 353,788 $ 351,507 $ 374,844 $ 382,632 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Leases | |
Schedule of loan and lease portfolio segment | September 30, 2021 December 31, 2020 % of % of (in thousands) Total Total Total Total Real estate Construction and land $ 124,967 6.6 % $ 116,675 6.3 % Residential - first lien 434,273 22.8 380,865 20.4 Residential - junior lien 51,350 2.7 60,002 3.2 Total residential real estate 485,623 25.5 440,867 23.6 Commercial - owner occupied 254,093 13.4 251,061 13.5 Commercial - non-owner occupied 518,947 27.2 491,630 26.3 Total commercial real estate 773,040 40.6 742,691 39.8 Total real estate loans 1,383,630 72.7 1,300,233 69.7 Commercial loans and leases 1 351,618 18.5 334,086 17.9 Consumer 88,089 4.6 64,003 3.4 Paycheck Protection Program (PPP) 79,918 4.2 167,639 9.0 Total loans and leases $ 1,903,255 100.0 % $ 1,865,961 100.0 % 1 |
Credit Quality Assessment (Tabl
Credit Quality Assessment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Quality Assessment | |
Summary on allowance for loan and lease losses | Nine Months Ended Three Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning balance $ 19,162 $ 10,401 $ 18,288 $ 16,356 Charge-offs (2,169) (814) (62) (200) Recoveries 360 245 127 121 Net (charge-offs) recoveries (1,809) (569) 65 (79) Provision for credit losses 1,000 7,825 — 1,380 Ending balance $ 18,353 $ 17,657 $ 18,353 $ 17,657 |
Schedule of Allowance for loan and lease losses | At September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Allowance for loan and lease losses: Nine Months Ended: Beginning balance $ 1,349 $ 2,309 $ 832 $ 2,207 $ 7,156 $ 4,131 $ 1,178 $ — $ 19,162 Charge-offs — (615) (45) (1) — (1,388) (120) — (2,169) Recoveries — 130 16 8 25 169 12 — 360 Provision for credit losses 1 (136) 764 (403) (57) 472 305 55 — 1,000 Ending balance $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Three Months Ended: Beginning balance $ 1,102 $ 2,533 $ 476 $ 2,047 $ 7,614 $ 3,218 $ 1,298 $ — $ 18,288 Charge-offs — (55) — — — — (7) — (62) Recoveries — 1 6 — 10 102 8 — 127 Provision for credit losses 1 111 109 (82) 110 29 (103) (174) — — Ending balance $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,213 $ 2,588 $ 400 $ 2,157 $ 7,653 $ 3,217 $ 1,125 $ — $ 18,353 Loans and leases: Ending balance $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 individually evaluated for impairment $ 242 $ 9,997 $ 1,544 $ 302 $ 3,298 $ 560 $ — $ — $ 15,943 collectively evaluated for impairment $ 124,725 $ 424,276 $ 49,806 $ 253,791 $ 515,649 $ 351,058 $ 88,089 $ 79,918 $ 1,887,312 At September 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Allowance for loan and lease losses: Nine Months Ended: Beginning balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ — $ 10,401 Charge-offs — (41) — — (37) (549) (187) — (814) Recoveries — 3 59 — — 181 2 — 245 Provision for credit losses 1 (62) 138 303 1,297 3,748 1,621 780 — 7,825 Ending balance $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Three Months Ended: Beginning balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Charge-offs — (8) — — (14) — (178) — (200) Recoveries — — 7 — — 114 — — 121 Provision for credit losses 1 (331) (350) (91) 279 1,103 186 584 — 1,380 Ending balance $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,194 $ 2,356 $ 840 $ 2,085 $ 6,679 $ 3,356 $ 1,147 $ — $ 17,657 Loans and leases: Ending balance $ 104,361 $ 391,079 $ 62,728 $ 250,512 $ 471,753 $ 353,863 $ 53,734 $ 196,375 $ 1,884,405 individually evaluated for impairment $ 338 $ 12,361 $ 1,461 $ 793 $ 559 $ 1,489 $ — $ — $ 17,001 collectively evaluated for impairment $ 104,023 $ 378,718 $ 61,267 $ 249,719 $ 471,194 $ 352,374 $ 53,734 $ 196,375 $ 1,867,404 1 |
Schedule of credit risk profile | September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Credit quality indicators: Not classified $ 124,725 $ 425,500 $ 49,806 $ 246,561 $ 506,728 $ 345,468 $ 88,089 $ 79,918 $ 1,866,795 Special mention — — — — 3,293 — — — 3,293 Substandard 242 8,773 1,544 7,532 8,926 6,150 — — 33,167 Doubtful — — — — — — — — — Total loans and leases $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 December 31, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Credit quality indicators: Not classified $ 116,094 $ 368,230 $ 58,752 $ 240,590 $ 482,324 $ 321,415 $ 64,003 $ 167,639 $ 1,819,047 Special mention — — — 4,364 8,778 9,083 — — 22,225 Substandard 581 12,635 1,250 6,107 528 3,588 — — 24,689 Doubtful — — — — — — — — — Total loans and leases $ 116,675 $ 380,865 $ 60,002 $ 251,061 $ 491,630 $ 334,086 $ 64,003 $ 167,639 $ 1,865,961 |
Schedule of aged analysis of past due loans | Credit risk profile by portfolio segment based upon internally assigned credit quality indicators are presented below: September 30, 2021 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Analysis of past due loans and leases: Accruing loans and leases current $ 121,372 $ 424,831 $ 49,646 $ 252,710 $ 515,517 $ 350,940 $ 88,047 $ 79,918 $ 1,882,981 Accruing loans and leases past due: 30-59 days past due — — 145 — 132 120 36 — 433 60-89 days past due 3,353 638 15 1,081 — — 6 — 5,093 Greater than 90 days past due — 31 — — — — — — 31 Total past due 3,353 669 160 1,081 132 120 42 — 5,557 Non-accrual loans and leases 242 8,773 1,544 302 3,298 558 — — 14,717 Total loans and leases $ 124,967 $ 434,273 $ 51,350 $ 254,093 $ 518,947 $ 351,618 $ 88,089 $ 79,918 $ 1,903,255 December 31, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program (PPP) Total Analysis of past due loans and leases: Accruing loans and leases current $ 116,094 $ 363,486 $ 57,427 $ 250,562 $ 489,996 $ 330,987 $ 63,550 $ 167,639 $ 1,839,741 Accruing loans and leases past due: 30-59 days past due — 4,167 1,130 — 1,106 269 390 — 7,062 60-89 days past due — 543 195 — — 71 63 — 872 Greater than 90 days past due — 34 — 83 — 251 — — 368 Total past due — 4,744 1,325 83 1,106 591 453 — 8,302 Non-accrual loans and leases 581 12,635 1,250 416 528 2,508 — — 17,918 Total loans and leases $ 116,675 $ 380,865 $ 60,002 $ 251,061 $ 491,630 $ 334,086 $ 64,003 $ 167,639 $ 1,865,961 |
Schedule of impaired loans | September 30, 2021 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment $ 242 $ 9,997 $ 1,544 $ 302 $ 3,298 $ 560 $ — $ 15,943 With an allowance recorded — — — — — — — — With no related allowance recorded 242 9,997 1,544 302 3,298 560 — 15,943 Related allowance — — — — — — — — Unpaid principal 415 10,470 1,724 301 3,305 748 — 16,963 Nine Months Ended: Average balance of impaired loans 650 11,285 2,056 319 3,108 902 — 18,320 Interest income recognized 6 252 58 11 7 1 — 335 Three Months Ended: Average balance of impaired loans 563 11,235 2,030 319 3,075 832 — 18,054 Interest income recognized 1 98 16 9 3 — — 127 December 31, 2020 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment $ 581 $ 13,789 $ 1,250 $ 416 $ 527 $ 2,882 $ — $ 19,445 With an allowance recorded — — — — — 1,286 — 1,286 With no related allowance recorded 581 13,789 1,250 416 527 1,596 — 18,159 Related allowance — — — — — 894 — 894 Unpaid principal 767 14,813 1,396 471 554 3,573 — 21,574 Average balance of impaired loans 911 15,799 1,562 478 591 4,147 — 23,488 Interest income recognized 9 366 59 2 14 109 — 559 |
Schedule of TDRs | The Company had no leases or PPP loans that were troubled debt restructurings (“TDRs”) at September 30, 2021 and December 31, 2020. The TDR loans at September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 1 $ 80 4 $ 1,223 $ 1,303 Commercial loans and leases 1 224 1 2 226 2 $ 304 5 $ 1,225 $ 1,529 December 31, 2020 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 1 $ 84 3 $ 1,153 $ 1,237 Commercial loans and leases 1 414 2 359 773 2 $ 498 5 $ 1,512 $ 2,010 |
Schedule of summary of TDR modifications | September 30, 2021 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 80 $ 1,223 $ 1,303 Commercial loans and leases Extension or other modification — 224 2 226 Total troubled debt restructured loans $ — $ 304 $ 1,225 $ 1,529 December 31, 2020 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 84 $ 1,153 $ 1,237 Commercial loans and leases Extension or other modification — — 359 359 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 498 $ 1,512 $ 2,010 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives and Hedging Activities | |
Schedule of derivative financial instruments | September 30, 2021 Balance Sheet Notional Estimated Fair Value (in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with customers Other assets and other liabilities $ 13,761 $ 623 $ — Matched interest rate swaps with market counterparty Other assets and other liabilities $ 13,761 $ — $ 611 December 31, 2020 Balance Sheet Notional Estimated Fair Value (in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with customers Other assets and other liabilities $ 14,087 $ 450 $ — Matched interest rate swaps with market counterparty Other assets and other liabilities $ 14,087 $ — $ 466 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Other Intangible Assets | |
Schedule of goodwill | The table below presents goodwill activity for the periods indicated: Nine Months Ended Year Ended (in thousands) September 30, 2021 December 31, 2020 Balance at January 1 $ 31,449 $ 65,949 Goodwill impairment — (34,500) Balance at end of period $ 31,449 $ 31,449 |
Schedule of gross carrying amount and accumulated amortization of other intangible assets | Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) September 30, 2021 $ 16,135 $ 12,120 $ 4,015 2.0 December 31, 2020 $ 16,135 $ 10,340 $ 5,795 2.7 |
Schedule of estimated future amortization expense | Estimated future amortization expense for core deposit intangibles is as follows: (in thousands) Remainder of 2021 $ 546 2022 1,915 2023 1,298 2024 256 Total future amortization expense $ 4,015 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Operating Leases | |
Schedule of operating lease right-of-use assets and lease liabilities | Operating lease right-of-use (“ROU”) assets and lease liabilities at the dates indicated were as follows: (in thousands) September 30, 2021 December 31, 2020 Operating lease ROU assets $ 12,195 $ 13,229 Operating lease liabilities $ 13,173 $ 14,267 |
Schedule of components of lease expense | The components of lease expense for the periods indicated were as follows: Nine Months Ended September 30, Three Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease cost $ 1,170 $ 1,196 $ 419 $ 412 Rental income (304) (232) (102) (68) Sublease income (320) (299) (89) (119) Amortization of ROU assets 16 108 (5) 31 Total lease expense $ 562 $ 773 $ 223 $ 256 |
Schedule of lease liability maturities | The maturities of the Company’s lease liabilities at September 30, 2021 were as follows: (in thousands) Remainder of 2021 $ 390 2022 1,436 2023 1,209 2024 1,078 2025 955 Thereafter 11,841 Total future lease payments $ 16,909 Discount of cash flows (3,736) Present value on net future lease payments $ 13,173 Weighted average remaining term in years 5.05 Weighted average discount rate 2.94 % |
Schedule of future minimum operating sublease payments | The following table details the future minimum operating sublease payments to be received at September 30, 2021: (in thousands) Remainder of 2021 $ 77 2022 135 2023 135 2024 135 2025 135 Thereafter 191 Total future sublease payments 808 Less: amount representing interest (73) Total net future sublease payments $ 735 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Schedule of deposits | September 30, 2021 December 31, 2020 % of % of (in thousands) Amount Total Amount Total Noninterest-bearing demand $ 783,326 40.4 % $ 676,801 34.2 % Interest-bearing checking 206,165 10.6 214,717 11.1 Money market accounts 435,386 22.4 439,510 22.2 Savings 178,915 9.2 159,914 8.1 Certificates of deposit $250 and over 35,539 1.8 51,918 2.6 Certificates of deposit under $250 302,087 15.6 432,554 21.8 Total deposits $ 1,941,418 100.0 % $ 1,975,414 100.0 % |
Stock Options and Stock Awards
Stock Options and Stock Awards (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock Options and Stock Awards | |
Schedule of stock options, activity | September 30, 2021 December 31, 2020 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Balance at January 1, 25,000 $ 14.54 25,000 $ 14.54 Granted — — — — Exercised — — — — Forfeited — — — — Balance at period end 25,000 $ 14.54 25,000 $ 14.54 Exercisable at period end 16,671 $ 14.54 8,337 $ 14.54 Weighted average fair value of options granted during the year N/A N/A |
Schedule of restricted stock and stock units activity | A summary of the activity for the Company’s RSUs for the periods indicated is presented in the following table: September 30, 2021 December 31, 2020 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Balance at January 1, 170,549 $ 14.61 11,032 $ 17.48 Granted 67,976 16.93 167,716 14.60 Vested (28,171) 14.24 (4,954) 18.44 Net settle for taxes (5,840) 15.88 (745) 17.50 Forfeited (4,600) 17.53 (2,500) 18.00 Balance at period end 199,914 $ 15.34 170,549 $ 14.61 |
Schedule of unrecognized pre-tax compensation expense | At September 30, 2021, based on RSUs outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSUs was $2.2 million. Based upon the contractual terms, this expense is expected to be recognized as follows: (in thousands) Remainder of 2021 $ 174 2022 687 2023 593 2024 502 2025 157 2026 39 $ 2,152 |
Stock-based compensation expense | Nine Months Ended Three Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Related to the issuance of restricted stock and RSUs $ 471 $ 348 $ 173 $ 131 Related to the issuance of stock options 36 36 12 12 Director compensation paid in stock 287 275 137 138 Total stock-based compensation expense $ 794 $ 659 $ 322 $ 281 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net Income (Loss) per Common Share | |
Schedule of basic and diluted net (loss) income per common share | Nine Months Ended Three Months Ended September 30 September 30 (dollars in thousands, except per share data) 2021 2020 2021 2020 Net income (loss) available to common stockholders (numerator) $ 20,018 $ (21,462) $ 6,360 $ 4,604 BASIC Basic average common shares outstanding (denominator) 18,787,571 18,773,036 18,807,395 18,736,749 Basic income (loss) per common share $ 1.07 $ (1.14) $ 0.34 $ 0.25 DILUTED Average common shares outstanding 18,787,571 18,773,036 18,807,395 18,736,749 Dilutive effect of common stock equivalents 84,383 — 88,171 — Diluted average common shares outstanding (denominator) 18,871,954 18,773,036 18,895,566 18,736,749 Diluted income (loss) per common share $ 1.06 $ (1.14) $ 0.34 $ 0.25 Common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share — 82,284 — — Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above — 25,000 — 194,883 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Matters | |
Schedule of Bancorp's and the Bank's capital | To be well capitalized under FDICIA For capital prompt corrective Actual adequacy purposes (1) action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021: Total capital (to risk-weighted assets) Howard Bank $ 300,495 14.95 % $ 160,796 8.00 % $ 200,995 10.00 % Howard Bancorp $ 301,226 14.98 % $ 160,832 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 281,822 14.02 % $ 90,448 4.50 % $ 130,646 6.50 % Howard Bancorp $ 253,814 12.63 % $ 90,468 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 281,822 14.02 % $ 120,597 6.00 % $ 160,796 8.00 % Howard Bancorp $ 253,814 12.63 % $ 120,624 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 281,822 11.14 % $ 101,188 4.00 % $ 126,485 5.00 % Howard Bancorp $ 253,814 10.03 % $ 101,211 4.00 % N/A As of December 31, 2020: Total capital (to risk-weighted assets) Howard Bank $ 273,974 14.26 % $ 153,721 8.00 % $ 192,151 10.00 % Howard Bancorp $ 275,668 14.32 % $ 154,015 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 254,492 13.24 % $ 86,468 4.50 % $ 124,898 6.50 % Howard Bancorp $ 227,749 11.83 % $ 86,634 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 254,492 13.24 % $ 115,291 6.00 % $ 153,721 8.00 % Howard Bancorp $ 227,749 11.83 % $ 115,512 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 254,492 10.36 % $ 98,221 4.00 % $ 122,776 5.00 % Howard Bancorp $ 227,749 9.26 % $ 98,360 4.00 % N/A 1 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value | |
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | September 30, 2021 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 41,923 $ — $ 41,923 $ — Mortgage-backed securities 296,257 — 296,257 — Other investments 9,268 — 9,268 — Loans held for investment 1,337 — 1,337 — Interest rate swap assets 623 — 623 — Liabilities Interest rate swap liabilities 611 — 611 — December 31, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 49,605 $ — $ 49,605 $ — Mortgage-backed securities 316,672 — 316,672 — Other investments 9,120 — 9,120 — Loans held for investment 2,949 — 2,949 — Interest rate swap assets 450 — 450 — Liabilities Interest rate swap liabilities 466 — 466 — |
Schedule of assets under fair value option | Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference September 30, 2021 $ 1,337 $ 1,375 $ (38) December 31, 2020 2,949 2,900 49 |
Schedule of impaired loans measured on a nonrecurring basis | September 30, 2021 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 334 $ — $ — $ 334 Impaired loans: Construction and land — — — — Residential - first lien 6,087 — — 6,087 Residential - junior lien 1,069 — — 1,069 Commercial - owner occupied 302 — — 302 Commercial - non-owner occupied 338 — — 338 Commercial loans and leases 558 — — 558 Total impaired loans 8,354 8,354 December 31, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 743 $ — $ — $ 743 Impaired loans: Construction and land 581 — — 581 Residential - first lien 13,789 — — 13,789 Residential - junior lien 1,250 — — 1,250 Commercial - owner occupied 416 — — 416 Commercial - non-owner occupied 527 — — 527 Commercial loans and leases 1,988 — — 1,988 Total impaired loans 18,551 18,551 |
Schedule of estimated fair value of the Company's financial instruments | September 30, 2021 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 347,448 $ 347,448 $ — $ 347,448 $ — Held to maturity securities 4,000 4,059 — — 4,059 Nonmarketable equity securities 9,219 9,219 — 9,219 — Loans held for investment 1,337 1,337 — 1,337 — Loans and leases 1 1,883,564 1,900,280 — — 1,900,280 Marketable equity securities 3,594 3,594 — 3,594 — Interest rate swap 623 623 — 623 — Financial Liabilities Deposits 1,941,418 1,941,072 — 1,941,072 — Customer repurchase agreements and other borrowings 13,485 13,485 — 13,485 — FHLB advances 212,000 214,881 — 214,881 — Subordinated debt 28,739 31,197 — 31,197 — Interest rate swap 611 611 — 611 — December 31, 2020 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 375,397 $ 375,397 $ — $ 375,397 $ — Held to maturity securities 7,250 7,235 — — 7,235 Nonmarketable equity securities 10,637 10,637 — 10,637 — Loans held for investment 2,949 2,949 — 2,949 — Loans and leases 1 1,843,850 1,854,049 — — 1,854,049 Marketable equity securities 4,006 4,006 — 4,006 — Interest rate swap 450 450 — 450 — Financial Liabilities Deposits 1,975,414 1,974,339 — 1,974,339 — Customer repurchase agreements and other borrowings 13,634 13,634 — 13,634 — FHLB advances 200,000 202,768 — 202,768 — Subordinated debt 28,437 30,692 — 30,692 — Interest rate swap 466 466 — 466 — 1 |
Exit of Mortgage Banking Acti_2
Exit of Mortgage Banking Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Exit of Mortgage Banking Activities | |
Schedule of rollforward of loans held for sale, showing loans originated for sale and loans sold into the secondary market | For the Nine Months Ended September 30, (in thousands) 2021 2020 Loans held for sale, January 1 $ — $ 30,710 Loans originated for sale — 79,847 Loans sold into the secondary market — (110,557) Loans held for sale, at end of period $ — $ — Loans originated for the Bank's portfolio $ — $ 11,378 For the Nine Months Ended September 30, (in thousands) 2021 2020 Statement of Operations: Net interest income $ — $ 143 Realized and unrealized gains on mortgage banking activity — 1,036 Loan related fees and service charges — 389 Total noninterest income — 1,425 Salaries and benefits — 928 Occupancy — 20 All other operating expenses — 490 Total noninterest expense — 1,438 Pretax contribution — 130 Income tax expense (benefit) — 36 After tax contribution $ — $ 94 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 15, 2005subsidiaryshares | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of reportable segment | segment | 1 | ||||||
Goodwill impairment | $ | $ 0 | $ 0 | $ 34,500 | $ 0 | $ 34,500 | $ 34,500 | |
Howard Bank | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares Per Share | shares | 2 | ||||||
Number of subsidiaries | 9 | ||||||
Number of subsidiaries to hold foreclosed real estate | 6 | ||||||
Number of inactive subsidiaries | 3 | ||||||
Number of subsidiaries own and manage real estate used for corporate purposes | 2 | ||||||
Number of subsidiaries holds historic tax credit investments | 1 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available for sale | ||
Amortized Cost | $ 349,788 | $ 367,594 |
Gross Unrealized Gains | 3,105 | 7,861 |
Gross Unrealized Losses | 5,445 | 58 |
Estimated Fair Value | 347,448 | 375,397 |
Held to maturity | ||
Amortized Cost | 4,000 | 7,250 |
Estimated Fair Value | 4,059 | 7,235 |
Other investments | ||
Available for sale | ||
Amortized Cost | 9,007 | 9,008 |
Gross Unrealized Gains | 268 | 124 |
Gross Unrealized Losses | 7 | 12 |
Estimated Fair Value | 9,268 | 9,120 |
US Government Agencies [Member] | ||
Available for sale | ||
Amortized Cost | 41,245 | 48,297 |
Gross Unrealized Gains | 719 | 1,308 |
Gross Unrealized Losses | 41 | 0 |
Estimated Fair Value | 41,923 | 49,605 |
Mortgage-backed securities | ||
Available for sale | ||
Amortized Cost | 299,536 | 310,289 |
Gross Unrealized Gains | 2,118 | 6,429 |
Gross Unrealized Losses | 5,397 | 46 |
Estimated Fair Value | 296,257 | 316,672 |
Held to maturity Corporate debentures | ||
Held to maturity | ||
Amortized Cost | 4,000 | 7,250 |
Gross Unrealized Gains | 59 | 17 |
Gross Unrealized Losses | 0 | 32 |
Estimated Fair Value | $ 4,059 | $ 7,235 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | $ 262,517 | $ 23,068 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 5,366 | 50 |
Individual securities, 12 months or more, Fair Value | 5,112 | 3,000 |
Individual securities, 12 months or more, Gross Unrealized Losses | 79 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 267,629 | 26,068 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 5,445 | 58 |
US Government Agencies [Member] | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 7,459 | |
Individual securities, Less than 12 months, Gross Unrealized Losses | 41 | |
Individual securities, 12 months or more, Fair Value | 0 | |
Individual securities, 12 months or more, Gross Unrealized Losses | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 7,459 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 41 | |
Mortgage-backed securities | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 255,058 | 21,572 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 5,325 | 46 |
Individual securities, 12 months or more, Fair Value | 2,112 | 0 |
Individual securities, 12 months or more, Gross Unrealized Losses | 72 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 257,170 | 21,572 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 5,397 | 46 |
Held to maturity Corporate debentures | ||
Held to maturity | ||
Individual securities, Less than 12 months, Fair Value | 0 | 3,468 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 0 | 32 |
Individual securities, 12 months or more, Fair Value | 0 | 0 |
Individual securities, 12 months or more, Gross Unrealized Losses | 0 | 0 |
Individual securities, total, Fair Value | 0 | 3,468 |
Individual securities, total, Gross Unrealized Losses | 0 | 32 |
Other investments | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 0 | 1,496 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 0 | 4 |
Individual securities, 12 months or more, Fair Value | 3,000 | 3,000 |
Individual securities, 12 months or more, Gross Unrealized Losses | 7 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 3,000 | 4,496 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | $ 7 | $ 12 |
Investment Securities - Contrac
Investment Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investment Securities | ||
One year or less, Amortized Cost | $ 4,014 | $ 4,017 |
After one through five years, Amortized Cost | 22,617 | 21,723 |
After five through ten years, Amortized Cost | 25,736 | 37,820 |
After ten years, Amortized Cost | 301,421 | 311,284 |
Amortized Cost | 353,788 | 374,844 |
One year or less, Estimated Fair Value | 4,085 | 4,062 |
After one through five years, Estimated Fair Value | 23,399 | 22,914 |
After five through ten years, Estimated Fair Value | 26,283 | 38,453 |
After ten years, Estimated Fair Value | 297,740 | 317,203 |
Estimated Fair Value | $ 351,507 | $ 382,632 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Investment Securities | ||
Number of securities with unrealized losses | security | 63 | 11 |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value | $ | $ 230.7 | $ 226.2 |
Loans and Leases - Loan and Lea
Loans and Leases - Loan and Lease Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 1,903,255 | $ 1,865,961 | $ 1,884,405 |
Loans and Leases, Net Percent | 100.00% | 100.00% | |
Construction and land | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 124,967 | $ 116,675 | 104,361 |
Loans and Leases, Net Percent | 6.60% | 6.30% | |
Residential - first lien | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 434,273 | $ 380,865 | 391,079 |
Loans and Leases, Net Percent | 22.80% | 20.40% | |
Residential - junior lien | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 51,350 | $ 60,002 | 62,728 |
Loans and Leases, Net Percent | 2.70% | 3.20% | |
Total residential real estate | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 485,623 | $ 440,867 | |
Loans and Leases, Net Percent | 25.50% | 23.60% | |
Commercial - Owner Occupied | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 254,093 | $ 251,061 | 250,512 |
Loans and Leases, Net Percent | 13.40% | 13.50% | |
Commercial-Non-Owner Occupied | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 518,947 | $ 491,630 | 471,753 |
Loans and Leases, Net Percent | 27.20% | 26.30% | |
Total commercial real estate | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 773,040 | $ 742,691 | |
Loans and Leases, Net Percent | 40.60% | 39.80% | |
Total real estate loans | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 1,383,630 | $ 1,300,233 | |
Loans and Leases, Net Percent | 72.70% | 69.70% | |
Commercial loans and leases | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 351,618 | $ 334,086 | 353,863 |
Loans and Leases, Net Percent | 18.50% | 17.90% | |
Consumer | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 88,089 | $ 64,003 | $ 53,734 |
Loans and Leases, Net Percent | 4.60% | 3.40% | |
Paycheck protection program loans | |||
Loans and Leases Receivable [Line Items] | |||
Loans, net of unamortized deferred fees | $ 79,918 | $ 167,639 | |
Loans and Leases, Net Percent | 4.20% | 9.00% |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Details) - USD ($) $ in Thousands | Jan. 19, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loans and Leases Receivable [Line Items] | ||||
Financing lease | $ 1,354 | $ 3,597 | ||
Loan Processing Fee | 2,800 | 913 | ||
Loans, net of unamortized deferred fees | 1,903,255 | 1,865,961 | $ 1,884,405 | |
Paycheck protection program loans | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans | 82,100 | |||
Loan Processing Fee | 2,200 | 3,200 | ||
Unaccreted net deferred loan fees | 2,200 | |||
Loans, net of unamortized deferred fees | 79,918 | 167,639 | ||
Loan One | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans | 8,700 | $ 201,000 | ||
Loan Two | ||||
Loans and Leases Receivable [Line Items] | ||||
Additional loan | $ 100,500 | $ 73,500 |
Credit Quality Assessment - All
Credit Quality Assessment - Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | $ 18,288 | $ 16,356 | $ 19,162 | $ 10,401 | |
Allowance for loan and lease losses, Charge-offs | (62) | (200) | (2,169) | (814) | |
Allowance for loan and lease losses, Recoveries | 127 | 121 | 360 | 245 | |
Allowance for loan and lease losses, Net (charge-offs) recoveries | 65 | (79) | (1,809) | (569) | |
Provision for credit losses | 0 | 1,380 | 1,000 | 7,825 | |
Allowance for loan and lease losses, Ending balance | 18,353 | 17,657 | 18,353 | 17,657 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 18,353 | 17,657 | 18,353 | 17,657 | |
Total loans and leases | 1,903,255 | 1,884,405 | 1,903,255 | 1,884,405 | $ 1,865,961 |
Loans individually evaluated for impairment | 15,943 | 17,001 | 15,943 | 17,001 | |
Loans collectively evaluated for impairment | 1,887,312 | 1,867,404 | 1,887,312 | 1,867,404 | |
Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 1,903,255 | 1,903,255 | 1,865,961 | ||
Paycheck protection program loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 0 | 0 | 0 | 0 | |
Allowance for loan and lease losses, Charge-offs | 0 | 0 | 0 | 0 | |
Allowance for loan and lease losses, Recoveries | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Allowance for loan and lease losses, Ending balance | 0 | 0 | 0 | 0 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Total loans and leases | 79,918 | 196,375 | 79,918 | 196,375 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 79,918 | 196,375 | 79,918 | 196,375 | |
Construction and land | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 1,102 | 1,525 | 1,349 | 1,256 | |
Allowance for loan and lease losses, Charge-offs | 0 | 0 | 0 | 0 | |
Allowance for loan and lease losses, Recoveries | 0 | 0 | 0 | 0 | |
Provision for credit losses | 111 | (331) | (136) | (62) | |
Allowance for loan and lease losses, Ending balance | 1,213 | 1,194 | 1,213 | 1,194 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 1,213 | 1,194 | 1,213 | 1,194 | |
Total loans and leases | 124,967 | 104,361 | 124,967 | 104,361 | 116,675 |
Loans individually evaluated for impairment | 242 | 338 | 242 | 338 | |
Loans collectively evaluated for impairment | 124,725 | 104,023 | 124,725 | 104,023 | |
Construction and land | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 124,967 | 124,967 | 116,675 | ||
Residential - first lien | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 2,533 | 2,714 | 2,309 | 2,256 | |
Allowance for loan and lease losses, Charge-offs | (55) | (8) | (615) | (41) | |
Allowance for loan and lease losses, Recoveries | 1 | 0 | 130 | 3 | |
Provision for credit losses | 109 | (350) | 764 | 138 | |
Allowance for loan and lease losses, Ending balance | 2,588 | 2,356 | 2,588 | 2,356 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 2,588 | 2,356 | 2,588 | 2,356 | |
Total loans and leases | 434,273 | 391,079 | 434,273 | 391,079 | 380,865 |
Loans individually evaluated for impairment | 9,997 | 12,361 | 9,997 | 12,361 | |
Loans collectively evaluated for impairment | 424,276 | 378,718 | 424,276 | 378,718 | |
Residential - first lien | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 434,273 | 434,273 | 380,865 | ||
Residential - junior lien | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 476 | 924 | 832 | 478 | |
Allowance for loan and lease losses, Charge-offs | 0 | 0 | (45) | 0 | |
Allowance for loan and lease losses, Recoveries | 6 | 7 | 16 | 59 | |
Provision for credit losses | (82) | (91) | (403) | 303 | |
Allowance for loan and lease losses, Ending balance | 400 | 840 | 400 | 840 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 400 | 840 | 400 | 840 | |
Total loans and leases | 51,350 | 62,728 | 51,350 | 62,728 | 60,002 |
Loans individually evaluated for impairment | 1,544 | 1,461 | 1,544 | 1,461 | |
Loans collectively evaluated for impairment | 49,806 | 61,267 | 49,806 | 61,267 | |
Residential - junior lien | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 51,350 | 51,350 | 60,002 | ||
Commercial - Owner Occupied | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 2,047 | 1,806 | 2,207 | 788 | |
Allowance for loan and lease losses, Charge-offs | 0 | 0 | (1) | 0 | |
Allowance for loan and lease losses, Recoveries | 0 | 0 | 8 | 0 | |
Provision for credit losses | 110 | 279 | (57) | 1,297 | |
Allowance for loan and lease losses, Ending balance | 2,157 | 2,085 | 2,157 | 2,085 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 2,157 | 2,085 | 2,157 | 2,085 | |
Total loans and leases | 254,093 | 250,512 | 254,093 | 250,512 | 251,061 |
Loans individually evaluated for impairment | 302 | 793 | 302 | 793 | |
Loans collectively evaluated for impairment | 253,791 | 249,719 | 253,791 | 249,719 | |
Commercial - Owner Occupied | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 254,093 | 254,093 | 251,061 | ||
Commercial-Non-Owner Occupied | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 7,614 | 5,590 | 7,156 | 2,968 | |
Allowance for loan and lease losses, Charge-offs | 0 | (14) | 0 | (37) | |
Allowance for loan and lease losses, Recoveries | 10 | 0 | 25 | 0 | |
Provision for credit losses | 29 | 1,103 | 472 | 3,748 | |
Allowance for loan and lease losses, Ending balance | 7,653 | 6,679 | 7,653 | 6,679 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 7,653 | 6,679 | 7,653 | 6,679 | |
Total loans and leases | 518,947 | 471,753 | 518,947 | 471,753 | 491,630 |
Loans individually evaluated for impairment | 3,298 | 559 | 3,298 | 559 | |
Loans collectively evaluated for impairment | 515,649 | 471,194 | 515,649 | 471,194 | |
Commercial-Non-Owner Occupied | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 518,947 | 518,947 | 491,630 | ||
Commercial loans and leases | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 3,218 | 3,056 | 4,131 | 2,103 | |
Allowance for loan and lease losses, Charge-offs | 0 | 0 | (1,388) | (549) | |
Allowance for loan and lease losses, Recoveries | 102 | 114 | 169 | 181 | |
Provision for credit losses | (103) | 186 | 305 | 1,621 | |
Allowance for loan and lease losses, Ending balance | 3,217 | 3,356 | 3,217 | 3,356 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 3,217 | 3,356 | 3,217 | 3,356 | |
Total loans and leases | 351,618 | 353,863 | 351,618 | 353,863 | 334,086 |
Loans individually evaluated for impairment | 560 | 1,489 | 560 | 1,489 | |
Loans collectively evaluated for impairment | 351,058 | 352,374 | 351,058 | 352,374 | |
Commercial loans and leases | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | 351,618 | 351,618 | 334,086 | ||
Consumer | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 1,298 | 741 | 1,178 | 552 | |
Allowance for loan and lease losses, Charge-offs | (7) | (178) | (120) | (187) | |
Allowance for loan and lease losses, Recoveries | 8 | 0 | 12 | 2 | |
Provision for credit losses | (174) | 584 | 55 | 780 | |
Allowance for loan and lease losses, Ending balance | 1,125 | 1,147 | 1,125 | 1,147 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Allowance allocated to Collectively Evaluated for Impairment | 1,125 | 1,147 | 1,125 | 1,147 | |
Total loans and leases | 88,089 | 53,734 | 88,089 | 53,734 | 64,003 |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 88,089 | $ 53,734 | 88,089 | $ 53,734 | |
Consumer | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total loans and leases | $ 88,089 | $ 88,089 | $ 64,003 |
Credit Quality Assessment - Int
Credit Quality Assessment - Internally Assigned Risk Assignments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Credit Quality Indicator [Line Items] | |||
Total loans and leases | $ 1,903,255 | $ 1,865,961 | $ 1,884,405 |
Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 1,903,255 | 1,865,961 | |
Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 1,866,795 | 1,819,047 | |
Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 3,293 | 22,225 | |
Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 33,167 | 24,689 | |
Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Construction and land | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 124,967 | 116,675 | 104,361 |
Construction and land | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 124,967 | 116,675 | |
Construction and land | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 124,725 | 116,094 | |
Construction and land | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Construction and land | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 242 | 581 | |
Construction and land | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Residential - first lien | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 434,273 | 380,865 | 391,079 |
Residential - first lien | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 434,273 | 380,865 | |
Residential - first lien | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 425,500 | 368,230 | |
Residential - first lien | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Residential - first lien | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 8,773 | 12,635 | |
Residential - first lien | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Residential - junior lien | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 51,350 | 60,002 | 62,728 |
Residential - junior lien | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 51,350 | 60,002 | |
Residential - junior lien | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 49,806 | 58,752 | |
Residential - junior lien | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Residential - junior lien | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 1,544 | 1,250 | |
Residential - junior lien | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Commercial - Owner Occupied | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 254,093 | 251,061 | 250,512 |
Commercial - Owner Occupied | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 254,093 | 251,061 | |
Commercial - Owner Occupied | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 246,561 | 240,590 | |
Commercial - Owner Occupied | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 4,364 | |
Commercial - Owner Occupied | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 7,532 | 6,107 | |
Commercial - Owner Occupied | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Commercial-Non-Owner Occupied | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 518,947 | 491,630 | 471,753 |
Commercial-Non-Owner Occupied | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 518,947 | 491,630 | |
Commercial-Non-Owner Occupied | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 506,728 | 482,324 | |
Commercial-Non-Owner Occupied | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 3,293 | 8,778 | |
Commercial-Non-Owner Occupied | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 8,926 | 528 | |
Commercial-Non-Owner Occupied | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Commercial loans and leases | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 351,618 | 334,086 | 353,863 |
Commercial loans and leases | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 351,618 | 334,086 | |
Commercial loans and leases | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 345,468 | 321,415 | |
Commercial loans and leases | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 9,083 | |
Commercial loans and leases | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 6,150 | 3,588 | |
Commercial loans and leases | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Consumer | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 88,089 | 64,003 | $ 53,734 |
Consumer | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 88,089 | 64,003 | |
Consumer | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 88,089 | 64,003 | |
Consumer | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Consumer | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Consumer | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Paycheck protection program loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Not Classified | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Special Mention | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Paycheck protection program loans | Substandard | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | 0 | 0 | |
Paycheck protection program loans | Doubtful | Legacy Loans | |||
Credit Quality Indicator [Line Items] | |||
Total loans and leases | $ 0 | $ 0 |
Credit Quality Assessment - Age
Credit Quality Assessment - Aged Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | $ 1,903,255 | $ 1,865,961 | $ 1,884,405 |
Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 14,717 | 17,918 | |
Total loans and leases | 1,903,255 | 1,865,961 | |
Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 1,882,981 | 1,839,741 | |
Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 5,557 | 8,302 | |
Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 433 | 7,062 | |
Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 5,093 | 872 | |
Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 31 | 368 | |
Construction and land | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 124,967 | 116,675 | 104,361 |
Construction and land | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 242 | 581 | |
Total loans and leases | 124,967 | 116,675 | |
Construction and land | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 121,372 | 116,094 | |
Construction and land | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 3,353 | 0 | |
Construction and land | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Construction and land | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 3,353 | 0 | |
Construction and land | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Residential - first lien | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 434,273 | 380,865 | 391,079 |
Residential - first lien | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 8,773 | 12,635 | |
Total loans and leases | 434,273 | 380,865 | |
Residential - first lien | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 424,831 | 363,486 | |
Residential - first lien | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 669 | 4,744 | |
Residential - first lien | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 4,167 | |
Residential - first lien | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 638 | 543 | |
Residential - first lien | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 31 | 34 | |
Residential - junior lien | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 51,350 | 60,002 | 62,728 |
Residential - junior lien | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 1,544 | 1,250 | |
Total loans and leases | 51,350 | 60,002 | |
Residential - junior lien | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 49,646 | 57,427 | |
Residential - junior lien | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 160 | 1,325 | |
Residential - junior lien | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 145 | 1,130 | |
Residential - junior lien | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 15 | 195 | |
Residential - junior lien | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Commercial - Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 254,093 | 251,061 | 250,512 |
Commercial - Owner Occupied | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 302 | 416 | |
Total loans and leases | 254,093 | 251,061 | |
Commercial - Owner Occupied | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 252,710 | 250,562 | |
Commercial - Owner Occupied | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 1,081 | 83 | |
Commercial - Owner Occupied | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Commercial - Owner Occupied | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 1,081 | 0 | |
Commercial - Owner Occupied | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 83 | |
Commercial-Non-Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 518,947 | 491,630 | 471,753 |
Commercial-Non-Owner Occupied | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 3,298 | 528 | |
Total loans and leases | 518,947 | 491,630 | |
Commercial-Non-Owner Occupied | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 515,517 | 489,996 | |
Commercial-Non-Owner Occupied | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 132 | 1,106 | |
Commercial-Non-Owner Occupied | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 132 | 1,106 | |
Commercial-Non-Owner Occupied | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Commercial-Non-Owner Occupied | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Commercial loans and leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 351,618 | 334,086 | 353,863 |
Commercial loans and leases | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 558 | 2,508 | |
Total loans and leases | 351,618 | 334,086 | |
Commercial loans and leases | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 350,940 | 330,987 | |
Commercial loans and leases | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 120 | 591 | |
Commercial loans and leases | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 120 | 269 | |
Commercial loans and leases | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 71 | |
Commercial loans and leases | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 251 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 88,089 | 64,003 | $ 53,734 |
Consumer | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 0 | 0 | |
Total loans and leases | 88,089 | 64,003 | |
Consumer | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 88,047 | 63,550 | |
Consumer | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 42 | 453 | |
Consumer | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 36 | 390 | |
Consumer | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 6 | 63 | |
Consumer | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Paycheck protection program loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Legacy Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans and leases | 0 | 0 | |
Total loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Legacy Loans | Financing Receivables, Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 79,918 | 167,639 | |
Paycheck protection program loans | Legacy Loans | Financing Receivables, Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Paycheck protection program loans | Legacy Loans | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Paycheck protection program loans | Legacy Loans | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | 0 | 0 | |
Paycheck protection program loans | Legacy Loans | Financing Receivables, Greater than 90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing loans and leases | $ 0 | $ 0 |
Credit Quality Assessment - Imp
Credit Quality Assessment - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
Related allowance | $ 0 | $ 0 | $ 894 |
Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 15,943 | 15,943 | 19,445 |
With an allowance recorded | 0 | 0 | 1,286 |
With no related allowance recorded | 15,943 | 15,943 | 18,159 |
Related allowance | 0 | 0 | 894 |
Unpaid principal | 16,963 | 16,963 | 21,574 |
Average balance of impaired loans | 18,054 | 18,320 | 23,488 |
Interest income recognized | 127 | 335 | 559 |
Construction and land | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 242 | 242 | 581 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 242 | 242 | 581 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 415 | 415 | 767 |
Average balance of impaired loans | 563 | 650 | 911 |
Interest income recognized | 1 | 6 | 9 |
Residential - first lien | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 9,997 | 9,997 | 13,789 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 9,997 | 9,997 | 13,789 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 10,470 | 10,470 | 14,813 |
Average balance of impaired loans | 11,235 | 11,285 | 15,799 |
Interest income recognized | 98 | 252 | 366 |
Residential - junior lien | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1,544 | 1,544 | 1,250 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 1,544 | 1,544 | 1,250 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 1,724 | 1,724 | 1,396 |
Average balance of impaired loans | 2,030 | 2,056 | 1,562 |
Interest income recognized | 16 | 58 | 59 |
Commercial - Owner Occupied | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 302 | 302 | 416 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 302 | 302 | 416 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 301 | 301 | 471 |
Average balance of impaired loans | 319 | 319 | 478 |
Interest income recognized | 9 | 11 | 2 |
Commercial-Non-Owner Occupied | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 3,298 | 3,298 | 527 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 3,298 | 3,298 | 527 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 3,305 | 3,305 | 554 |
Average balance of impaired loans | 3,075 | 3,108 | 591 |
Interest income recognized | 3 | 7 | 14 |
Commercial loans and leases | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 560 | 560 | 2,882 |
With an allowance recorded | 0 | 0 | 1,286 |
With no related allowance recorded | 560 | 560 | 1,596 |
Related allowance | 0 | 0 | 894 |
Unpaid principal | 748 | 748 | 3,573 |
Average balance of impaired loans | 832 | 902 | 4,147 |
Interest income recognized | 0 | 1 | 109 |
Consumer | Legacy Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
With no related allowance recorded | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 |
Unpaid principal | 0 | 0 | 0 |
Average balance of impaired loans | 0 | 0 | 0 |
Interest income recognized | $ 0 | $ 0 | $ 0 |
Credit Quality Assessment - TDR
Credit Quality Assessment - TDR Loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Non-Accrual Status | $ 304 | $ 498 |
Number of Loans | loan | 5 | 5 |
Accrual Status | $ 1,225 | $ 1,512 |
Total TDRs | $ 1,529 | $ 2,010 |
Residential Real Estate First Lien [Member] | ||
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Non-Accrual Status | $ 80 | $ 84 |
Number of Loans | loan | 4 | 3 |
Accrual Status | $ 1,223 | $ 1,153 |
Total TDRs | $ 1,303 | $ 1,237 |
Commercial loans and leases | ||
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Non-Accrual Status | $ 224 | $ 414 |
Number of Loans | loan | 1 | 2 |
Accrual Status | $ 2 | $ 359 |
Total TDRs | $ 226 | $ 773 |
Credit Quality Assessment - T_2
Credit Quality Assessment - TDR Modifications (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | $ 1,529 | $ 2,010 | |
Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 226 | 359 | |
Commercial Loans And Extension Or Other Modification [Member] | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Commercial Loans And Leases Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 414 | ||
Commercial Loans And Leases Forbearances Member | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | ||
Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 1,303 | 1,237 | |
Residential Real Estate First Lien and Extension Or Other Modification [Member] | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Nonperforming Financial Instruments [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 304 | 498 | |
Nonperforming Financial Instruments [Member] | Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 224 | 0 | |
Nonperforming Financial Instruments [Member] | Commercial Loans And Leases Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 414 | ||
Nonperforming Financial Instruments [Member] | Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 80 | 84 | |
Performing Financial Instruments [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 1,225 | 1,512 | |
Performing Financial Instruments [Member] | Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 2 | 359 | |
Performing Financial Instruments [Member] | Commercial Loans And Leases Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | $ 0 | |
Performing Financial Instruments [Member] | Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | $ 1,223 | $ 1,153 |
Credit Quality Assessment - Add
Credit Quality Assessment - Additional Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Credit Quality Indicator [Line Items] | |||
Delinquent Loans, Outstanding Nonaccrual Status | $ 14,700 | $ 18,300 | |
Non-Accrual Delinquent Loans Outstanding, Percentage | 0.80% | 1.00% | |
Loans and Leases Receivable, Net of Deferred Income | $ 1,903,255 | $ 1,884,405 | $ 1,865,961 |
Financing Receivable, Recorded Investment, Nonaccrual Loans | 14,700 | 17,900 | |
Impaired Financing Receivable Interest Income Non Accrual Method | $ 401 | 466 | |
Percentage of loan modified through payments deferrals | 1.30% | ||
Loans | $ 1,529 | $ 2,010 | |
Real Estate Owned, Transfer to Real Estate Owned | $ 0 | 51 | |
Number of loan with term extended and payment restructured | loan | 2 | 2 | |
Maximum [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | $ 3,600 | ||
Performing Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans | $ 1,225 | 1,512 | |
Number of TDR'S included in non accrual loans | 5 | ||
Nonperforming Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans | $ 304 | 498 | |
Number of TDR'S included in non accrual loans | 2 | ||
Four Residential Junior Lien Loans Member | |||
Credit Quality Indicator [Line Items] | |||
Mortgage Loans in Process of Foreclosure, Amount | $ 1,900 | ||
Construction and land | |||
Credit Quality Indicator [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 124,967 | 104,361 | 116,675 |
Mortgage Loans in Process of Foreclosure, Amount | 243 | ||
Commercial loans and leases | |||
Credit Quality Indicator [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | $ 351,618 | 353,863 | $ 334,086 |
Number of loan with term extended and payment restructured | loan | 1 | 1 | |
Commercial loans and leases | Performing Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans | $ 237 | ||
Commercial loans and leases | Nonperforming Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans charged off, amount | 413 | ||
Paycheck protection program loans | |||
Credit Quality Indicator [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 79,918 | $ 167,639 | |
Residential - first lien | |||
Credit Quality Indicator [Line Items] | |||
Loans and Leases Receivable, Net of Deferred Income | 434,273 | $ 391,079 | $ 380,865 |
Residential - first lien | Nonperforming Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 104 | ||
Loans and leases | Performing Financial Instruments [Member] | |||
Credit Quality Indicator [Line Items] | |||
Loans | $ 25,600 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Interest Rate Swap with customers | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 13,761 | $ 14,087 |
Derivative, Gain on Derivative | 623 | 450 |
Derivative, Loss on Derivative | 0 | 0 |
Interest Rate Swap with market counterparty | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 13,761 | 14,087 |
Derivative, Gain on Derivative | 0 | 0 |
Derivative, Loss on Derivative | $ 611 | $ 466 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivatives and Hedging Activities | ||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ 28 | $ (28) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Other Intangible Assets | ||||||
Goodwill, Beginning Balance | $ 31,449 | $ 65,949 | $ 65,949 | |||
Goodwill impairment | $ 0 | $ 0 | $ (34,500) | 0 | $ (34,500) | (34,500) |
Goodwill, Ending Balance | $ 31,449 | $ 31,449 | $ 31,449 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 4,015 | $ 5,795 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,135 | 16,135 |
Accumulated Amortization | 12,120 | 10,340 |
Net Carrying Amount | $ 4,015 | $ 5,795 |
Weighted Average Remaining Life (in Years) | 2 years | 2 years 8 months 12 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Estimated future amortization expense for amortizing intangibles | ||
Remainder of 2021 | $ 546 | |
2022 | 1,915 | |
2023 | 1,298 | |
2024 | 256 | |
Total future amortization expense | $ 4,015 | $ 5,795 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of reporting units | item | 1 | |||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 34,500 | $ 0 | $ 34,500 | $ 34,500 |
Non Interest Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill, Impairment Loss | $ 34,500 |
Operating Leases - Operating le
Operating Leases - Operating leases ROU assets and lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating leases ROU assets | $ 12,195 | $ 13,229 |
Operating lease liabilities | $ 13,173 | $ 14,267 |
Operating Leases - Lease expens
Operating Leases - Lease expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Leases | ||||
Operating lease cost | $ 419 | $ 412 | $ 1,170 | $ 1,196 |
Rental income | (102) | (68) | (304) | (232) |
Sublease income | (89) | (119) | (320) | (299) |
Amortization of ROU assets | (5) | 31 | 16 | 108 |
Total lease expense | $ 223 | $ 256 | $ 562 | $ 773 |
Operating Leases - Lease liabil
Operating Leases - Lease liability maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lease liability maturities | ||
Remainder of 2021 | $ 390 | |
2022 | 1,436 | |
2023 | 1,209 | |
2024 | 1,078 | |
2025 | 955 | |
Thereafter | 11,841 | |
Total future lease payments | 16,909 | |
Discount of cash flows | (3,736) | |
Present value on net future lease payments | $ 13,173 | $ 14,267 |
Weighted average remaining term (in years) | 5 years 18 days | |
Weighted average discount rate (in percentage) | 2.94% |
Operating Leases - Future minim
Operating Leases - Future minimum operating sublease payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessor, Lease, Description [Line Items] | |
Remainder of 2021 | $ 77 |
2022 | 135 |
2023 | 135 |
2024 | 135 |
2025 | 135 |
Thereafter | 191 |
Total future sublease payments | 808 |
Less: amount representing interest | 73 |
Total net future sublease payments | $ 735 |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease term | 6 years |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) | Sep. 30, 2021 |
Operating Leases | |
Lessee, Operating Lease, Renewal Term | 10 years |
Deposits - Composition of Depos
Deposits - Composition of Deposits and the Related Percentage Mix of Total Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Noninterest-bearing demand | $ 783,326 | $ 676,801 |
Interest-bearing checking | 206,165 | 214,717 |
Money market accounts | 435,386 | 439,510 |
Savings | 178,915 | 159,914 |
Certificates of deposit $250 and over | 35,539 | 51,918 |
Certificates of deposit under $250 | 302,087 | 432,554 |
Total deposits | $ 1,941,418 | $ 1,975,414 |
Percentage of Noninterest-bearing demand | 40.40% | 34.20% |
Percentage of Interest-bearing checking | 10.60% | 11.10% |
Percentage of Money market accounts | 22.40% | 22.20% |
Percentage of Savings | 9.20% | 8.10% |
Percentage of Certificates of deposit $250 and over | 1.80% | 2.60% |
Percentage of Certificates of deposit under $250 | 15.60% | 21.80% |
Percentage of Total deposits | 100.00% | 100.00% |
Stock Options and Stock Award_2
Stock Options and Stock Awards - Stock Options (Details) - Employee Stock Option - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares, Beginning Balance | 25,000 | 25,000 | 25,000 |
Shares, Granted | 0 | 0 | 0 |
Shares, Exercised | 0 | 0 | |
Shares, Forfeited | 0 | 0 | |
Shares, Ending Balance | 25,000 | 25,000 | |
Shares, Exercisable at period end | 16,671 | 8,337 | |
Weighted Average Exercise Price, Beginning Balance | $ 14.54 | $ 14.54 | $ 14.54 |
Weighted Average Exercise Price, Granted | 0 | 0 | |
Weighted Average Exercise Price, Exercised | 0 | 0 | |
Weighted Average Exercise Price, Forfeited | 0 | 0 | |
Weighted Average Exercise Price, Ending Balance | 14.54 | 14.54 | |
Weighted Average Exercise Price, Exercisable at period end | $ 14.54 | $ 14.54 |
Stock Options and Stock Award_3
Stock Options and Stock Awards - RSU (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shares, Beginning Balance | 170,549 | 11,032 |
Shares, Granted | 67,976 | 167,716 |
Shares, Vested | (28,171) | (4,954) |
Shares, Net settle for taxes | (5,840) | (745) |
Shares, Forfeited | (4,600) | (2,500) |
Shares, Ending Balance | 199,914 | 170,549 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 14.61 | $ 17.48 |
Weighted Average Grant Date Fair Value, Granted | 16.93 | 14.60 |
Weighted Average Grant Date Fair Value, Vested | 14.24 | 18.44 |
Weighted Average Grant Date Fair Value, Net settle for taxes | 15.88 | 17.50 |
Weighted Average Grant Date Fair Value, Forfeited | 17.53 | 18 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 15.34 | $ 14.61 |
Stock Options and Stock Award_4
Stock Options and Stock Awards - RSU Compensation Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Restricted Stock Units (RSUs) [Member] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,152 |
Restricted Stock Units (RSUs) [Member] | Remainder of 2021 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 174 |
Restricted Stock Units (RSUs) [Member] | 2022 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 687 |
Restricted Stock Units (RSUs) [Member] | 2023 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 593 |
Restricted Stock Units (RSUs) [Member] | 2024 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 502 |
Restricted Stock Units (RSUs) [Member] | 2025 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 157 |
Restricted Stock Units (RSUs) [Member] | 2026 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 39 |
Employee Stock Option | Remainder of 2021 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 12 |
Employee Stock Option | 2022 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 4 |
Stock Options and Stock Award_5
Stock Options and Stock Awards - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allocated Share-based Compensation Expense | $ 322 | $ 281 | $ 794 | $ 659 |
Director [Member] | ||||
Allocated Share-based Compensation Expense | 137 | 138 | 287 | 275 |
Restricted Stock Units (RSUs) [Member] | ||||
Allocated Share-based Compensation Expense | 173 | 131 | 471 | 348 |
Employee Stock Option | ||||
Allocated Share-based Compensation Expense | $ 12 | $ 12 | $ 36 | $ 36 |
Stock Options and Stock Award_6
Stock Options and Stock Awards - Additional information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Proceeds from Stock Options Exercised | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable Fair Market Value | $ 20.28 | $ 11.81 | $ 20.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 144,000 | $ 0 | $ 144,000 | ||
Share-based Payment Arrangement, Nonemployee [Member] | |||||
Stock awards to non-employee members | 19,393 | 22,616 | 19,393 | ||
Employee Stock Option | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 282,615 | 282,615 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||
Unrecognized pre-tax compensation expense related to unvested stock option awards | $ 16,000 | $ 16,000 | |||
Employee Stock Option | Remainder of 2021 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 12,000 | 12,000 | |||
Employee Stock Option | 2022 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 4,000 | 4,000 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 67,976 | 164,383 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,152,000 | 2,152,000 | |||
Restricted Stock Units (RSUs) [Member] | Remainder of 2021 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 174,000 | 174,000 | |||
Restricted Stock Units (RSUs) [Member] | 2022 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 687,000 | 687,000 | |||
Time-based RSUs | One, three or five year performance vesting schedule | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 52,488 | 137,119 | |||
Performance-based RSUs | |||||
Compensation expense | $ 0 | ||||
Performance-based RSUs | Three year performance vesting schedule | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 15,488 | 27,264 |
Net Income (Loss) per Common _3
Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income (Loss) per Common Share | ||||
Net income (loss) available to common stockholders (numerator) | $ 6,360 | $ 4,604 | $ 20,018 | $ (21,462) |
BASIC | ||||
Basic average common shares outstanding (denominator) | 18,807,395 | 18,736,749 | 18,787,571 | 18,773,036 |
Basic income (loss) per common share | $ 0.34 | $ 0.25 | $ 1.07 | $ (1.14) |
DILUTED | ||||
Average common shares outstanding | 18,807,395 | 18,736,749 | 18,787,571 | 18,773,036 |
Dilutive effect of common stock equivalents | 88,171 | 0 | 84,383 | 0 |
Diluted average common shares outstanding (denominator) | 18,895,566 | 18,736,749 | 18,871,954 | 18,773,036 |
Diluted income (loss) per common share | $ 0.34 | $ 0.25 | $ 1.06 | $ (1.14) |
Common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share | 0 | 0 | 0 | 82,284 |
Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above | 0 | 194,883 | 0 | 25,000 |
Regulatory Matters - Bancorp's
Regulatory Matters - Bancorp's and the Bank's capital (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% | |
Howard Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual amount | $ 300,495 | $ 273,974 |
Total capital (to risk-weighted assets) Actual ratio | 14.95 | 14.26 |
Total capital (to risk-weighted assets) For capital adequacy purposes amount | $ 160,796 | $ 153,721 |
Total capital (to risk-weighted assets) For capital adequacy purposes ratio | 8 | 8 |
Total capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 200,995 | $ 192,151 |
Total capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 10 | 10 |
Common equity tier 1 capital (to risk-weighted assets) Actual amount | $ 281,822 | $ 254,492 |
Common equity tier 1 capital (to risk-weighted assets) Actual ratio | 14.02 | 13.24 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 90,448 | $ 86,468 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 4.50 | 4.50 |
Common equity tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 130,646 | $ 124,898 |
Common equity tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 6.50 | 6.50 |
Tier 1 capital (to risk-weighted assets) Actual amount | $ 281,822 | $ 254,492 |
Tier 1 capital (to risk-weighted assets) Actual ratio | 14.02 | 13.24 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 120,597 | $ 115,291 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 6 | 6 |
Tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 160,796 | $ 153,721 |
Tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 8 | 8 |
Tier 1 capital (to average assets) Actual amount | $ 281,822 | $ 254,492 |
Tier 1 capital (to average assets) Actual ratio | 11.14 | 10.36 |
Tier 1 capital (to average assets) For capital adequacy purposes amount | $ 101,188 | $ 98,221 |
Tier 1 capital (to average assets) For capital adequacy purposes ratio | 4 | 4 |
Tier 1 capital (to average assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 126,485 | $ 122,776 |
Tier 1 capital (to average assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 5 | 5 |
Howard Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual amount | $ 301,226 | $ 275,668 |
Total capital (to risk-weighted assets) Actual ratio | 14.98 | 14.32 |
Total capital (to risk-weighted assets) For capital adequacy purposes amount | $ 160,832 | $ 154,015 |
Total capital (to risk-weighted assets) For capital adequacy purposes ratio | 8 | 8 |
Common equity tier 1 capital (to risk-weighted assets) Actual amount | $ 253,814 | $ 227,749 |
Common equity tier 1 capital (to risk-weighted assets) Actual ratio | 12.63 | 11.83 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 90,468 | $ 86,634 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 4.50 | 4.50 |
Tier 1 capital (to risk-weighted assets) Actual amount | $ 253,814 | $ 227,749 |
Tier 1 capital (to risk-weighted assets) Actual ratio | 12.63 | 11.83 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 120,624 | $ 115,512 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 6 | 6 |
Tier 1 capital (to average assets) Actual amount | $ 253,814 | $ 227,749 |
Tier 1 capital (to average assets) Actual ratio | 10.03 | 9.26 |
Tier 1 capital (to average assets) For capital adequacy purposes amount | $ 101,211 | $ 98,360 |
Tier 1 capital (to average assets) For capital adequacy purposes ratio | 4 | 4 |
Litigations (Details)
Litigations (Details) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2021USD ($) | Sep. 30, 2021USD ($)lawsuit | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Litigation | ||||
Number of lawsuits for mortgage origination claims | lawsuit | 0 | |||
Accrued liability | $ 2 | $ 1 | $ 1 | |
Litigation settlement | $ 2 |
Fair Value - Fair Value Financi
Fair Value - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 347,448 | $ 375,397 |
Loans held for investment | 1,337 | 2,949 |
Interest rate swap assets | 623 | |
Liabilities | ||
Interest rate swap liabilities | 611 | 466 |
US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 41,923 | 49,605 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 296,257 | 316,672 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 1,337 | 2,949 |
Interest rate swap assets | 623 | 450 |
Liabilities | ||
Interest rate swap liabilities | 611 | 466 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 41,923 | 49,605 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 296,257 | 316,672 |
Fair Value, Measurements, Recurring [Member] | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,268 | 9,120 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Interest rate swap assets | 0 | |
Liabilities | ||
Interest rate swap liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Interest rate swap assets | 0 | 0 |
Liabilities | ||
Interest rate swap liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 1,337 | 2,949 |
Interest rate swap assets | 623 | |
Liabilities | ||
Interest rate swap liabilities | 611 | 466 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 1,337 | 2,949 |
Interest rate swap assets | 623 | 450 |
Liabilities | ||
Interest rate swap liabilities | 611 | 466 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 41,923 | 49,605 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 296,257 | 316,672 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,268 | 9,120 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Interest rate swap assets | 0 | |
Liabilities | ||
Interest rate swap liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Interest rate swap assets | 0 | 0 |
Liabilities | ||
Interest rate swap liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Value - Assets Under Fair
Fair Value - Assets Under Fair Value Option (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Carrying Fair Value Amount, Loans held for sale | $ 1,337 | $ 2,949 |
Loans Held For Investment [Member] | ||
Carrying Fair Value Amount, Loans held for sale | 1,337 | 2,949 |
Aggregate Unpaid Principal Loans held for Investment | 1,375 | 2,900 |
Difference, Loans held for investment | $ (38) | $ 49 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 334 | $ 743 |
Impaired loans | 1,900,280 | 1,854,049 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 8,354 | 18,551 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,900,280 | 1,854,049 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 8,354 | 18,551 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 941 | 1,500 |
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 334 | 743 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 334 | 743 |
Construction and land | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 581 |
Construction and land | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Construction and land | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Construction and land | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 581 |
Residential - first lien | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,087 | 13,789 |
Residential - first lien | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential - first lien | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential - first lien | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,087 | 13,789 |
Residential - junior lien | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,069 | 1,250 |
Residential - junior lien | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential - junior lien | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential - junior lien | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,069 | 1,250 |
Commercial - Owner Occupied | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 302 | 416 |
Commercial - Owner Occupied | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial - Owner Occupied | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial - Owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 302 | 416 |
Commercial-Non-Owner Occupied | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 338 | 527 |
Commercial-Non-Owner Occupied | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial-Non-Owner Occupied | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial-Non-Owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 338 | 527 |
Commercial loans and leases | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 558 | 1,988 |
Commercial loans and leases | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial loans and leases | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial loans and leases | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 558 | $ 1,988 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Available for sale securities, Carrying Value | $ 347,448 | $ 375,397 |
Held to maturity securities, Carrying Value | 4,000 | 7,250 |
Nonmarketable equity securities, Carrying Value | 9,219 | 10,637 |
Loans held for investment, Carrying Value | 1,337 | 2,949 |
Loans and leases, Carrying Value | 1,883,564 | 1,843,850 |
Marketable equity securities, Carrying Value | 3,594 | 4,006 |
Interest rate swap, Carrying Value | 623 | 450 |
Available for sale securities | 347,448 | 375,397 |
Held to maturity securities | 4,059 | 7,235 |
Nonmarketable equity securities | 9,219 | 10,637 |
Loans held for investment | 1,337 | 2,949 |
Loans and leases, Fair value | 1,900,280 | 1,854,049 |
Marketable equity securities, Fair value | 3,594 | |
Interest rate swap | 623 | |
Financial Liabilities | ||
Deposits, Carrying Value | 1,941,418 | 1,975,414 |
Customer repurchase agreements and other borrowings | 13,485 | 13,634 |
FHLB advances, Carrying Value | 212,000 | 200,000 |
Subordinated debt, Carrying Value | 28,739 | 28,437 |
Interest rate swap, Carrying Value | 611 | 466 |
Deposits, Fair value | 1,941,072 | 1,974,339 |
Customer repurchase agreements and other borrowings, fair value | 13,485 | 13,634 |
FHLB advances | 214,881 | 202,768 |
Subordinated debt | 31,197 | 30,692 |
Interest rate swap, Fair Value | 611 | 466 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets | ||
Marketable equity securities, Carrying Value | 0 | |
Interest rate swap, Carrying Value | 0 | |
Available for sale securities | 0 | 0 |
Held to maturity securities | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Loans held for investment | 0 | 0 |
Loans and leases, Fair value | 0 | 0 |
Marketable equity securities, Fair value | 0 | |
Interest rate swap | 0 | |
Financial Liabilities | ||
Deposits, Fair value | 0 | 0 |
Customer repurchase agreements and other borrowings, fair value | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest rate swap, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets | ||
Marketable equity securities, Carrying Value | 4,006 | |
Interest rate swap, Carrying Value | 450 | |
Available for sale securities | 347,448 | 375,397 |
Held to maturity securities | 0 | 0 |
Nonmarketable equity securities | 9,219 | 10,637 |
Loans held for investment | 1,337 | 2,949 |
Loans and leases, Fair value | 0 | 0 |
Marketable equity securities, Fair value | 3,594 | |
Interest rate swap | 623 | |
Financial Liabilities | ||
Deposits, Fair value | 1,941,072 | 1,974,339 |
Customer repurchase agreements and other borrowings, fair value | 13,485 | 13,634 |
FHLB advances | 214,881 | 202,768 |
Subordinated debt | 31,197 | 30,692 |
Interest rate swap, Fair Value | 611 | 466 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets | ||
Marketable equity securities, Carrying Value | 0 | |
Interest rate swap, Carrying Value | 0 | |
Available for sale securities | 0 | 0 |
Held to maturity securities | 4,059 | 7,235 |
Nonmarketable equity securities | 0 | 0 |
Loans held for investment | 0 | 0 |
Loans and leases, Fair value | 1,900,280 | 1,854,049 |
Marketable equity securities, Fair value | 0 | |
Interest rate swap | 0 | |
Financial Liabilities | ||
Deposits, Fair value | 0 | 0 |
Customer repurchase agreements and other borrowings, fair value | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest rate swap, Fair Value | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate, Period Increase (Decrease) | $ 38 | $ 257 | |
Other Real Estate | 334 | $ 743 | |
Allowance for credit losses | 0 | 894 | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | 941 | 1,500 | |
Other Real Estate, Valuation Adjustments | $ 607 | $ 731 | |
Selling cost (as a percent) | 9.5 |
Exit of Mortgage Banking Acti_3
Exit of Mortgage Banking Activities (Details) - Discontinued operations held for sale - Mortgage Banking Activities - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale, January 1 | $ 0 | $ 30,710 |
Loans originated for sale | 0 | 79,847 |
Loans sold into the secondary market | 0 | (110,557) |
Loans held for sale, at end of period | 0 | 0 |
Loans originated for the Bank's portfolio | 0 | 11,378 |
Statement of Operations: | ||
Net interest income | 0 | 143 |
Realized and unrealized gains on mortgage banking activity | 0 | 1,036 |
Loan related fees and service charges | 0 | 389 |
Total noninterest income | 0 | 1,425 |
Salaries and benefits | 0 | 928 |
Occupancy | 0 | 20 |
All other operating expenses | 0 | 490 |
Total noninterest expense | 0 | 1,438 |
Pretax contribution | 0 | 130 |
Income tax expense (benefit) | 0 | 36 |
After tax contribution | $ 0 | $ 94 |